Only co-founder, CEO, and Apple crusader Steve Jobs may have expected the level of success the company's music-related products have enjoyed. Since debuting the iPod in 2001, Apple has provided regular feature updates to the line, including touch-screen displays and wireless capabilities. In 2003 Apple announced the launch of an online music service called the iTunes Music Store that lets computer users purchase and download songs for 99 cents each. Apple has since expanded the offerings to include music videos, audiobooks, television shows, and other content. The store's catalog, which has helped spur sales of Apple's popular iPod digital music and video players, includes songs from the five largest record labels, as well as television and movie content from a number of networks. The company has also launched international versions of its iTunes Music Store. In 2008 Apple became the top music retailer by volume in the US market, surpassing Wal-Mart.

In 2006 the company launched an online movie service, and previewed a device called iTV for watching downloaded content on televisions. Apple announced availability of its television device, redubbed Apple TV, early the following year. The company kicked off 2008 with the release of an updated Apple TV device in conjunction with a new iTunes movie rental service. The rental service, which charges $3.99 per movie (or $4.99 for high-definition versions), includes movies from such studios as Twentieth Century Fox, Disney, MGM, and Universal.

Early in 2007 the company finally unveiled a long-rumored Apple mobile phone -- the iPhone -- that combines features of a high-end handset with those of an iPod. AT&T was named the exclusive carrier for the phone in the US market; international carrier partners include O2 and T-Mobile.

Once the world's top PC maker, Apple has been relegated to niche status in a market dominated by "Wintel" machines (computers using Microsoft Windows software and Intel processors). Macintosh computers run Apple's own UNIX-based operating system. The uniqueness of Apple's computers is a double-edged sword for the company. The graphical interface and form factor of Macintosh computers reflect the aesthetic of Jobs, who has long championed the importance of visually attractive, user-friendly design. The features that distinguish Macs have allowed the company to maintain a loyal following willing to pay premium prices and overlook any interoperability issues with Windows (a factor that Apple largely addressed with its OS X operating system). However, Apple trails far behind top Window-based PC vendors such as Hewlett-Packard and Dell in terms of market share.

In addition to its proprietary operating system, a traditional differentiator for Apple had been its use of IBM's PowerPC processors (manufactured by IBM and Freescale). However, in 2005 Apple announced it would begin incorporating Intel chips into its PC lines. Apple debuted its first Intel-based computers early in 2006, and it completed the transition across its entire line later that year. The company also released software that allows its Intel-based computers to run Microsoft's XP operating system. Likely looking toward the development of its iPhone, Apple agreed to purchase P.A. Semi, a fabless developer of low-power processors, in 2008.

Apple shares a long and thorny history with Microsoft. Although it provides an alternative to Microsoft's omnipresent operating system, Apple's relative size and market share restrict its threat to the software giant's stranglehold. The companies have long maintained a working relationship; the Mac-compatible version of Microsoft's popular office suite is a key software title for Apple, and Apple has scored crossover hits with Windows-friendly editions of iPod and iTunes. Soon after Apple released its Safari Web browser, however, Microsoft announced it would cease development of the Apple version of its ubiquitous Internet Explorer.

In an effort to boost its appeal among consumers, the company has opened more than 100 Apple retail stores across the US; it also has stores in Canada, Japan, and the UK. Apple generated 17% of its sales through its retail channel in fiscal 2007.

The company remains focused on product innovations that solidify its popularity in classrooms, Web design shops, and graphic arts studios. While Apple continues to roll out unique hardware offerings, the company has also looked to software development to drive sales. Many of the company's multimedia applications are available for free, but the company charges for bundled versions of its software.

Canon Inc

Description

Canon is still banging away at the document reproduction market. The company makes printers and other computer peripherals for home and office use. Its other well-known lines include copiers, fax machines, and scanners. Canon's optical segment features products used in such diverse applications as semiconductor manufacturing equipment, television broadcast lenses, and devices used for eye examinations. Canon still operates its original camera business, which makes digital cameras, camcorders, liquid-crystal display projectors, lenses, and binoculars.