Since the release of iPod by Apple Inc. (NASDAQ:AAPL) twelve years ago, Apple’s shares price has gone up to $500 from $11 – an increase by 45 times.
Back in 2011 Walkman hardware by Sony Corporation (ADR) (NYSE:SNE) was a huge success and had amazing distribution using chains of consumer electronics, like Best Buy and other broad-line retailers, such as Wal-Mart. After acquiring Columbia Records, Sony also had its very own CD label that produced music, which was sold through top rankers, such as BlockBuster. It was a time when Sony dominated the industry. Despite all this competition, Apple introduced its iPod.
All the leading players in the industry believed that because of low quality of CDs and compression algorithm of MP3s, people didn’t really want MP3 products. Sony still went for MP3; however the customers weren’t really excited about it. To enjoy MP3s people started using Napster to download music; Napster was illegal and violated copyright therefore the government closed it down. Sony believed that people would stop buying MP3 at low price and go for CDs that cost $20.
Apple’s iPod changed all these dynamics and made MP3 download legal through using Apple store, which once again allowed users to buy cheap music and listen to only what they wanted. All those who thought iPod wouldn’t be successful were proved wrong. iPod not only did well, but also changed the way all tech companies thought.
Intel Corporation (NASDAQ:INTC) used to make important components for all Macintosh and Microsoft PCs. Apple asked Intel to create a processor for its iPhone, an idea that didn’t appeal to Intel because Apple was thought to be manufacturers of Mac only. However Apple was quick to take into account the trend of users shifting towards mobility. The first product in the era of modern gadgets was iPod that with its new engineering, branding technology and distribution became extremely famous.
Apple once again changed the market trend by introducing its iPhone; the market was previously led by RIMM/ BlackBerry Ltd (NASDAQ:BBRY) and Motorola. Once again Apple was doubted by all the industry leaders and analysts who thought iPhone wouldn’t appeal to customers because it was too expensive and didn’t have any keyboard interface. To follow Apple’s trend of innovation, Microsoft Corporation (NASDAQ:MSFT) made an attempt to introduce a tablet a few years later; however the company gave up on the idea after which Apple went to introduce iPad. Analysts once again had doubts about its success and once again they were proved wrong.
Market leaders believed that iPad did not have much usability because of insufficient enterprise integration and software for office productivity. Apple with all its innovation proved that all that is needed for success is vision with which any company can change the way their customers think.
In the premarket, shares of Apple Inc. (NASDAQ:AAPL) went up by 0.15%.