required to submit their completed and refined strategy frameworks homework deck and create an executive summary specifically related to the Apple case. The purpose of this assignment is to assess students' ability to conduct strategic analysis of real$-$world situations and provide feasible solutions. weeks of sales. Developed at a cost of $$1$ billion, XP initially garnered for Microsoft between $$45$ and $$60$ in revenue per copy$\mathrm{.}31$ However, the next three generations$$Vista $(2007),$ Windows $7(2009),$ and Windows $8(2012)$met with mixed reviews, and each new generation of OS faced higher development, marketing, and support costs. In mid$-2015,$ Microsoft shipped its latest update, Windows $10.$ Over the next year, it was installed on over $350$ million devices. By late $2019,$ it passed $50\%$ market share, and Windows $7$s share fell to $30\%\mathrm{.}32$

Application software, content, and complementary products The value of a computer corresponded directly to the complementary software, content, and hardware that were available on that platform. Key application software ranged from word processing to Internet browsing. After the early $1990$s$,$ the number of PC applications exploded, while ASPs for PC software collapsed. Firms such as Google even offered productivity software $($Google Apps$)$ for free. PCs also benefited from a vast

array of complementary hardware, ranging from printers to cameras. However, the number of new, exciting PC applications had slowed, as software developers shifted their focus to phones.

Alternative technologies In the early $2000$s$,$ consumer electronics $($CE$)$ products, ranging from cell phones to game consoles, started to encroach on the functionality that was once the sole purview of the PC$.$ Another alternative emerged with the introduction of Chromebooks by Google in $2011,$ which ran only cloud$-$based applications and sold for $$200-$$$350.$ Demand for Chromebooks grew rapidly in U$.$S$.$ education, especially K$-12$ schools. By $2020,$ Chromebooks captured $60\%$ of the education market, far outdistancing competitors like Apple $(15\%)\mathrm{.}33$

Of course, the most widely used alternatives were smartphones and tablets. With billions of smartphones and hundreds of millions of tablets being sold, PC sales suffered$\mathrm{.}34$ While several industry insiders worried about the impact of digital devices on the PC industry, Jobs viewed all of these devices as part of an integrated strategy to deliver breakthrough user experiences.

The Macintosh and Apple$$s $$Digital Hub$$ Strategy

In $2001,$ marking Apple$$s $25$th anniversary, Jobs presented his vision for the Macintosh. He believed that the Macintosh had a real advantage for consumers who were becoming entrenched in a digital lifestyle, using digital cameras, portable music players, and digital camcorders, not to mention mobile phones. The Mac could be the preferred $$digital hub$$ to control, integrate, and add value to these devices. Jobs viewed Apple$$s control of both hardware and software as a unique strength.

Apple subsequently revamped its product line to offer machines that could deliver a cutting$-$edge, tightly integrated user experience. Thanks to creative marketing and several innovative computer products, such as the ultra$-$thin Mac Air, Apple began growing market share$\mathrm{.}35$ The company$$s greatest strength lay in the premium$-$priced PC category; $91\%$ of PCs priced above $$1,000$ in the U$.$S$.$ market were sold by Apple$\mathrm{.}36$ Globally, Apple$$s market share had risen steadily since $2004,$ placing fourth among global PC manufacturers with a market share of $6\mathrm{.}6\%$ in $2019\mathrm{.}37$

Changing the Macintosh To accomplish his vision, Jobs made three important changes in the Macintosh. First, and perhaps most important, Apple introduced a new OS in $2001,$ the first fully overhauled platform released since $1984.$ Analysts estimated that OS X cost Apple roughly $$1$ billion to develop. Second, since the early $1990$s$,$ Apple had built Macs with an IBM CPU called PowerPC. In $2006,$ Jobs made a large investment to shift Apple to Intel chips. By the next year, the entire Macintosh line ran on Intel. With $$Intel Inside,$$ Apple could produce thinner, lighter laptops as well as more powerful computers. The Mac could also natively run Windows and Windows applications. Since early $2018,$ rumors widely circulated that Apple was planning another switch from Intel CPUs to AMD or to their own custom ARM chips.

The final piece of the puzzle was a new distribution strategy. The first Apple retail store opened in McLean, Virginia, in $2001.$ Apple wanted consumers not only to look at the eye$-$catching Macintosh designs, but also to directly use and experience Apple$$s software. Most analysts believed that the popularity of media products, such as the iPod, iPhone, and iPad, were critical to bringing consumers into the stores and exposing them to the Mac. By early $2020,$ the retail division had over $500$ stores in $21$ countries, and the Apple Store$$s sales of over $$5,500$ per square foot far surpassed those of any other retailer$\mathrm{.}38$ Observers viewed