In July 2006, Apple Computer Inc. (Apple) is enjoying increased sales due to its popular iPod portable digital music player. The iPod and iTunes, Apple’s online music store, each have about 70 per cent of the market share. In the 1980’s, Apple had a great deal of success in the personal computer (PC) business. However, Apple saw its market share fall from over 30 per cent to less than five per cent. Most experts agree that this occurred because Apple had control over the production and distribution of its hardware, software and operating system. The Windows and Intel computers eventually took Apple’s lead in the market. Analysts are starting to wonder if Apple will face the same problems as it uses the same business model for its iPod and iTunes products.
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