Apple Computer Inc.
Description
Only co-founder, CEO, and Apple crusader Steve Jobs may have expected the level of success the company's music-related products have enjoyed. 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 content from ABC, NBC, and a number of cable networks. The company has launched international versions of its iTunes Music Store that serve Canada and European Union countries. Early in 2006 it began offering select television content on a subscription basis with a service called Multi-Pass. Later that year the company launched an online movie service, and previewed a device called iTV for watching downloaded content on televisions.
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. At the time of the announcement Adobe Systems and Microsoft both pledged continued development of their Macintosh applications. 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.
The company remains focused on product innovations that solidify its popularity in classrooms, Web design shops, and graphic arts studios. Although more than a quarter of its sales are to schools, Apple has felt increasing pressure in that market, particularly from Dell. 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 -- including iTunes, iMovie, and iPhoto -- are available for free, but the company charges for bundled versions of its software.
Cisco Systems
Description
The ruler of routers, the sultan of switches, Cisco Systems continues to dominate the market for equipment used to link networks and power the Internet. The company's bread and butter products are routers and switches; Cisco's switch line includes equipment based on Ethernet, Gigabit Ethernet, and ATM technologies. Other products include remote access servers, IP telephony equipment used to transmit data and voice communications over the same network, optical networking components, and network service and security systems. It sells its products primarily to large enterprises and telecommunications service providers, but it also has products designed for small businesses and consumers.
The company continues to branch into new markets across the enterprise, consumer, and telecom sectors. It quickly became a major player in the market for Fibre Channel switches used in enterprise storage networks. The company made a move to increase its presence in the home networking sector, acquiring Linksys for $500 million in stock in 2003. It acquired conferencing systems specialist Latitude Communications for approximately $80 million in cash the following year, and wireless networking equipment maker Airespace for approximately $450 million in stock early in 2005.