2593 [Acquisition of Apple]
Apple computers were once the best-selling computers in the world, accounting for 20% of the global market share.
However, in recent years, Apple computers have been on a declining slope, and now their share in the global market has shrunk to only about 2%.
First, because Apple computers were popular at that time, because the public lacked computer knowledge, so they tended to buy famous brands when buying computers.
Apple Computer was one of the best brand computers at that time, and it first launched a graphical interface operating system, which made the use of computers very convenient, so it was naturally popular among consumers.
However, with the popularity of computers, people are becoming more and more aware of computers, and buying computers is increasingly pursuing cost-effectiveness, not just to buy a brand.
Therefore, assembled computer companies like Dell have gradually developed. Apple is becoming increasingly unpopular with consumers because of its high price and low cost performance.
Second, because Apple adopts a closed strategy, its operating system can only run on Apple computers, so it restricts the promotion and application of the system. In comparison, Microsoft's Windows and Tianxia Technology's Genius systems have a very high penetration rate because of their open authorization.
Because the two major systems have a high market share, software vendors are willing to design software for them, so that both operating systems have a large number of applications available.
So far, the total number of software running on the two major operating systems has exceeded 100 million! In comparison, the number of software on Apple computers is much worse.
When users use Apple system but cannot find the application software they need, they will naturally give up on Apple computers and choose Windows or Genius, which has richer software. This is also one of the reasons why Apple's market share is gradually declining.
Third, Apple has changed its number of players over the years and has continuously introduced wrong strategies, which have made Apple's development increasingly sluggish.
In 1985, Apple's founder Jobs was expelled from the company by the board of directors. The CEO, John Scully, made the most wrong decision in history, which was to allow Microsoft to use some of Apple's graphical interface technology while continuing to develop office software for Apple.
Given that Apple is the first company in the world to launch a graphical interface operating system, it has a large number of patented technologies in related aspects.
The graphical interface technology used by Microsoft's Windows may infringe on Apple's patented technology. Once a lawsuit is filed, Apple dares not say it is almost certain, and at least it can make Microsoft have a good drink.
But as soon as John Scully signed this contract, Microsoft officially obtained Apple's authorization. Therefore, it was not so easy for Apple to sue again in the future.
In fact, in 1988, Apple sued Microsoft for infringing its patents. As a result, after six years of lawsuits, Apple lost the case. The reason is that it is because of this authorization contract.
After Jobs left the company, in order to pursue profits and expand the market, Apple decided to launch more high-priced products and cooperate with other companies to jointly produce Apple computers.
High-priced Apple computers have less advantage in cost-effectiveness, so it is more difficult to attract consumers. Cooperating with other companies to produce Apple computers has imbalanced quality control, leading to many defective products being launched on the market, which further hurts Apple's brand influence and leads to a rapid decline in Apple's market share.
Afterwards, when Apple's board of directors saw something was wrong, they immediately changed their business strategy, abandoned the "high price" strategy, and instead promoted low-priced products.
Although Apple's product sales rose in a short period of time, setting a record of one million computers sold annually. However, in order to save funds, Apple not only laid off a large number of employees and deleted development funds, but also significantly shrank in production lines, making the supply far less than market demand.
By October 1995, there were billion-dollar orders that could not be delivered on time. This caused Apple's stock price to plummet by 15% within two days.
In addition, the reduction of development funds has forced its cooperation with its many years of partner ibm to terminate, causing it to lose a lot of assistance. It has also made Apple lag behind Microsoft and World Technology in technology research and development.
By 1996, Apple had already suffered a serious loss and was approaching the brink of bankruptcy. It even planned to sell the company to Sun Company, but because the price was not negotiated, it was rejected by Apple's board of directors.
...
However, Xia Tian was very interested in Apple computers and wanted to acquire it.
First, with the gradual promotion and popularization of computers, people are increasingly not paying attention to the cost-effectiveness of computers. In comparison, a unique and unique computer is more popular among some people.
The consumption psychology of many consumers is that if there is no one, the one who has it is better.
Apple computers are of high appearance and have unique systems. Although their functions are not as good as Windows computers and Genius computers, they are also unique in some fields, so they are very suitable for consumers to install x.
For example, Xia Tian knew that many people bought Apple computers just to install X. Because after they bought their computers, they first installed Windows system, so it can be seen that they did not like Mac Os, but they bought them entirely for Apple's logo.
Therefore, Apple computers can be made like luxury goods, specifically attracting a certain group of consumers who pursue fashion, personality, and ignore cost-effectiveness.
Second, although Apple computers have declined, their foundation is still there. Apple's R&D technology is still very strong. It designs and produces CPUs and operating systems by itself. This ability is something that few companies around the world can do.
After acquiring Apple, it can accept its R&D team, which will help improve the R&D level of Tianxia Technology. What's more, Apple has been established for twenty years and has accumulated a large number of patented technologies. These are also very valuable to Tianxia Technology.
...
"Mr. Xia, are you going to buy Apple?" Michelle asked in surprise.
"Yes, I think Apple is still very valuable now." Xia Tian nodded, "I'm going to buy it. You go to the board of directors of Apple. As long as the price is not higher than $5 billion, you can make a promise to them."
Now Apple's market value is only about 2 billion US dollars, which has fallen by more than 80% compared to its peak market value. It can be said that it is not as good as before. Moreover, because its future prospects are not optimistic, its market value may fall again.
In theory, the acquisition price is 3 billion US dollars, which is already very worthy of it.
However, in order to be on the safe side, Xiatian would rather spend more money than be taken away by the fatty meat.
Chapter completed!