Transcript No Slide Title

Apple Computer Financials
$400
Net Income (millions)
$200
$0
-$200
-$400
-$600
-$800
1997
$70
1998
1999
2000
1998
1999
2000
Stock Price
$60
$50
$40
$30
$20
$10
$0
1997
Apple Computer Financials
$400
Net Income (millions)
$200
$0
-$200
-$400
-$600
-$800
1997
$70
1998
1999
2000
1998
1999
2000
Stock Price
$60
$50
$40
$30
$20
$10
$0
1997
Apple Computer Financials
$100
Net Income (millions)
$50
$0
($50)
Jan
'01
April
'01
July
'01
Oct
'01
Jan
'02
April
'02
July
'02
Oct
'02
Jan
'03
Jan April July
'02 '02 '02
Oct
'02
Jan
'03
($100)
($150)
($200)
($250)
Stock Price
$30
$25
$20
$15
$10
$5
$0
Jan April July
'01 '01 '01
Oct
'01
Can Steve Jobs Keep Apple Afloat?

A Silicon Valley CEO in 1997:
Amelio told us: “Apple is a boat. There’s a
hole in the boat, and it’s taking on water. But
there’s also a treasure on board. And the
problem is, everyone on board is rowing in
different directions, so the boat is just standing
still. My job is to get everyone rowing in the
same direction so we can save the treasure.”
After he turned a way, I looked at the person
next to me and asked, “But what about the
hole?”
Apple Computer: General Lessons

Big difference between product advantage and
competitive advantage

Companies must look broadly at the
economics and driving forces of their
industries

Multiple standards can co-exist only when
they are significantly differentiated

Companies need to pay careful attention to
timing and windows of opportunity