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"highrightpolicy"namedforthepositiononachartofpricevs.profits.Jobshadarguedthecompanyshouldproduce
productsaimedattheconsumermarketandaimedfora$1000pricefortheMacintosh,whichtheywereunabletomeet.
Newermodelssellingathigherpricepointsofferedhigherprofitmargin,andappearedtohavenoeffectontotalsalesas
poweruserssnappedupeveryincreaseinpower.Althoughsomeworriedaboutpricingthemselvesoutofthemarket,the
highrightpolicywasinfullforcebythemid1980s,notablyduetoJeanLouisGasse'smantraof"fiftyfiveordie",
referringtothe55%profitmarginsoftheMacintoshII.[56]
ThispolicybegantobackfireinthelastyearsofthedecadeasnewdesktoppublishingprogramsappearedonPCclones
thatofferedsomeormuchofthesamefunctionalityoftheMacintoshbutatfarlowerpricepoints.Thecompanylostits
monopolyinthismarket,andhadalreadyestrangedmanyofitsoriginalconsumercustomerbasewhocouldnolonger
TheMacintoshPortable,releasedin
affordtheirhighpricedproducts.TheChristmasseasonof1989wasthefirstinthecompany'shistorythatsawdeclining
1989,wasApple'sfirstbattery
poweredportableMacintoshpersonal sales,andledtoa20%dropinApple'sstockprice.[57]Gasse'sobjectionswereoverruled,andhewasforcedfromthe
computer. companyin1990.Laterthatyear,Appleintroducedthreelowercostmodels,theMacintoshClassic,MacintoshLCand
MacintoshIIsi,allofwhichsawsignificantsalesduetopentupdemand.
In1991,AppleintroducedthePowerBook,replacingthe"luggable"MacintoshPortablewithadesignthatsetthecurrentshapeforalmostallmodernlaptops.The
sameyear,AppleintroducedSystem7,amajorupgradetotheoperatingsystemwhichaddedcolortotheinterfaceandintroducednewnetworkingcapabilities.It
remainedthearchitecturalbasisfortheClassicMacOS.ThesuccessofthePowerBookandotherproductsbroughtincreasingrevenue.[54]Forsometime,Apple
wasdoingincrediblywell,introducingfreshnewproductsandgeneratingincreasingprofitsintheprocess.ThemagazineMacAddictnamedtheperiodbetween
1989and1991asthe"firstgoldenage"oftheMacintosh.[58]
ApplebelievedtheAppleIIserieswastooexpensivetoproduceandtookawaysalesfromthelowendMacintosh.[59]In1990,ApplereleasedtheMacintoshLC,
whichfeaturedasingleexpansionslotfortheAppleIIeCardtohelpmigrateAppleIIuserstotheMacintoshplatform[59]theAppleIIewasdiscontinuedin1993.
199197:Declineandrestructuring
ThesuccessofApple'slowercostconsumermodels,especiallytheLC,alsoledtocannibalizationoftheirhigherpricedmachines.Toaddressthis,management
introducedseveralnewbrands,sellinglargelyidenticalmachinesatdifferentpricepointsaimedatdifferentmarkets.ThesewerethehighendQuadra,themid
rangeCentrisline,andtheillfatedPerformaseries.Thisledtosignificantmarketconfusion,ascustomersdidnotunderstandthedifferencebetweenmodels.[61]
Applealsoexperimentedwithanumberofotherunsuccessfulconsumertargetedproductsduringthe1990s,includingdigitalcameras,portableCDaudioplayers,
speakers,videoconsoles,theeWorldonlineservice,andTVappliances.EnormousresourceswerealsoinvestedintheproblemplaguedNewtondivisionbasedon
JohnSculley'sunrealisticmarketforecasts.Ultimately,noneoftheseproductshelpedandApple'smarketshareandstockpricescontinuedtoslide.