APPLE (COMPUTER) INC
It was August 30, 2011 Jobs had announced his resignation as CEO of Apple. Jobs had said in a brief letter: “I have
always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I
would be the first to let you know. Unfortunately, that day has come.”
Six days before that, HP CEO Leo Apotheker had announced that HP would spin off its industry-leading personal
computer (PC) business in favor of investing resources in the areas of software and information management
solutions. HP’s decision was surprising for a number of reasons since HP was the market leader in PC market and the
software business made up only 2% of the company’s sales in recent quarters.
Rollins, the product manager at Apple, wondered what all this meant for Apple’s Mac line of desktop and laptop
computers. What was the future of the PC world? Apple had been a pioneer of the personal computer. For 30 years,
it had been in the pioneer of high-quality computers for work and home. While it had long been a niche player in the
overall PC market, Apple’s desktop and laptop computers had commanded large price premiums.
With the iPhone and iPad, Apple had advanced and refined the form and function of personal computing and
essentially “transformed the PC into a fashion accessory.”The release of the iPad had already had a huge impact on
mobile computing since it was lighter and more compact than a laptop.
Yet demand for desktops and laptops seemed likely to persist for the foreseeable future. Smartphones and tablets
were generally used as complements, not substitutes, for traditional PCs. Business users, media producers ,
educators still relied heavily on their desktops and laptops.
Rollins contemplated the forces at work within the industry. What form would personal computing take in the
