Steve Job’s return to Apple brought a complete change to the company. He saw the potential of hardware of a different sort and started to focus on the high margin segments such as, PDA’s, servers, etc. due to which Apple was facing indirect competition from other firms. On the flipside, the strategy did not go too well and the company did not get what it expected to achieve. In 2001, Apple launched a new operating system – Mac OS X, which was based on UNIX and had several remarkable features in it directed to differentiate that of other operating systems such as, Windows 95, Windows 98, and Windows 2000. The feedback received from the side of the customers was quite positive, since they started liking it.
Apple asked ADOBE to build designing software for it that could be used in MAC, but Adobe refused to do so. This led Apple to conduct more research and development for the purpose of creating its own software by itself; and through hard work, the strategy worked out and several applications and software were developed by Apple on its own. The key distinctive features of Mac were the softwares and applications that Apple built itself, which provided the customers with better graphics, better interface, and most importantly the ease.
This was not it for Apple, it kept the dice rolling on and decided to penetrate in other technological and electronic gadgets. It launched a music and video player named, iPod, which was really adored by the customers and became the highest selling product from Apple. Apple was keeping a close eye on the technological developments, market trends, customer needs and the doors for opportunities. This classic form of diversification brought them to develop their own software for music, iTunes from where the users could download their music. Therefore, it did not stop there and instead launched iPhone that possessed all the qualities of a smart phone along with other useful applications. The diversification into consumer items, from a company that had started off with producing products for graphic designers, instantly became a hit due to the brand name. Thus producing different products like computers, notebooks, software, applications, operating systems, music players and mobile phones, Apple has created for itself a strong presence in the market and with record breaking sales of products like iPod and iPhone, the company is bound to do even better.