Positioning, Repositioning, Reverse Positioning Strategies Case Study

iMAC G5's Success: iPod's Halo Effect

OR

Abstract:
In the first quarter of 2004, the sales of iPod, Apple Computer Inc.'s most popular digital music player, exceeded that of its unique Macintosh desktops. The increase in total revenues of Apple and the steady sales of iMAC, introduced in the late 1990s during company's restructuring, was attributed to iPod, which had been an important spoke in Apple's strategy to create a digital hub. In the fourth quarter of 2004, Apple released its third generation iMAC - the iMAC G5 that resembled the iPod in aesthetics and endorsed it with a tagline 'From the makers of iPod.'

Pedagogical Objectives:

• To discuss the pros and cons of Apple's strategy of leveraging iMAC G5 on the halo effect of the iPod.

Keywords : Apple Computer Inc; Microsoft Windows; iPod flat panel iMAC's; iTools; PowerMac; Halo effect; PC clones; Cross-licensing; Digital hub and digital lifestyles; Retail store productivity; Core Competency & Competitive Advantage Case Study; Portable music device market; Bundled software package; Steve Jobs

Contents:

• iMAC: AlI-In-One Ease
• iMAC G5: From the Makers of iPod