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Environment Apple has numerous competitors in the digital world. Yahoo music unlimited and the legal incarnation are gunning for iTunes customers. Sony and Samsung are trying to create ipod slayers.

Issue  apple’s challengers all face the same problem:jobs company will no doubt dominate the digital music market for years to come.  That’s because apple has learned its hard lesson about closed systems.  In the microcomputer desktop market,apple shrank from an industry leader to a niche player.  As apple designed closed systems with proprietory hardware and software that were often Incompatible with thousands of application softwares.

 Microsoft set out to replicate the basic features of the macintosh operating system in each succeeding version of its windows os.  Encouraged software developers to write apps for it and then licensed windows to mass market pc manufacturers.  Jobs cut a deal with the major 5 companies that locked up his device.  The music companies wanted to sell songs on iTunes, but they were afraid of internet piracy.

 Yahoo music and napster reached similar deals with the big record labels, Apple refused to license fairplay to them.  Nearly every music service and mp3 player maker supports windows media and its copy-protection software other than apple.

benefits  Apple introduced the first iPod in October  Apple released versions of iPod and iTunes for windows.  Fulcrum global partners estimates that iPod now account for 73 percent of the 30 million mp3 players currently being used in the united states.  So jobs promised to wrap their songs in apple fairplay, the only copy-protection software that is iPod compatible.  The songs sold by those services cannot be played on the wildly popular iPod.

 Apple iTunes holds a commanding lead over its rivals, selling more than 75 percent of all digital songs.  E music cant sell any major –label hits because it refuses to copy-protect them. Instead it relies on independent labels for content.  E music has a 9 percent share of the market, because you can play its unprotected mp3s on an iPods.  The services provided by its competitors may be cheaper but the service of Microsoft is so buggy.  As lot of customers have given up and just listen to songs on their computer.

 Apples share of the desktop and portable computer market in the u.s doubled,reaching just under 6 percent by early  IPod international sales continue to grow,driving more sales of IMac and other flavors of Macintosh desktop and portable computers.  Apples worldwide share of the market was estimated 2.5 percent in 2005,3.5 percent in 2006 and 5.0 percent by the end of  The reason behind such a growth was the introduction of apples boot camp software in early  Bcs can run application software for both its own mac osx and the wos.

Conclusion Apple provides its best services in the U.S and its competitors are facing big challenges from it. As apple is providing the most convenient service as their customers can now use their products anywhere they want in the world. Apple is also providing exclusive copy protected software and several other additional softwares that Microsoft is not providing, So Apple is giving value to their customers by satisfying them according to their needs and wants.