High - Intel offered superior hardware performance while integrated into a PC and companies providing microprocessors were very few.

Apple was forced to change its hardware design including Intel chips to avoid getting outpaced by competition.

* Today

Medium - Companies that manufacture microprocessors haven't proliferated exponentially and it is an industry still dominated by a handful of players, even though they don't have the same power as before due to the arrival of new potentially substituting technologies such as ARM.

Low- Limited amount of PC providing companies.

PCs were expensive, few houses could afford a PC.

Industry Lifecycle stage: Introduction

 Today

High- Saturated market with competitors, greater variety of product offerings regarding price, design and functionalities.

PCs prices now are more accessible to a wider audience.

PC's are tending towards commoditization.

Low market barriers to entry, no single player controlled the industry.

Nevertheless, development of technological standards required and novel risky market could compromise access to funds.

* Today

High: Economies of scale and high brand loyalty

Market concentration: Lenovo, Hp, dell control 65% of the market

Software: Microsoft offered a highly conditioning complement in its OS (Windows) that could and did influence Apple's manufacturing practices, specifically in what regards to granting interoperability with its hardware.

Regarding potential products that could substitute personal PCs at that time, you could label other luxury personal use tech products such as TVs, regarding personal PCs.

* Today

Medium:

Smartphones getting more powerfull processors and storage capacity are replacing some task.

Medium:

Cloud services also reduce the need of a PC.

Decives such as Chrome box as a sustitute with lower price.

Apple envisioned a holistic Apple product with their own chip, apps, software. Until now Apple relies on rival products.

Gaming consoles like Playstation and XboX are substitutes for gaming activities

High:

• IBM competed for product innovation

• IBM created price competition, leading Apple to premium segment

* Today

Higher:

• HP (23,6% market share)

• Lenovo (24,3% market share)

• Dell (17,5% market share)

• More players

• Slim margins for commodity PCs

• Apple shifted to services instead of relying on PC sales

• limited buyer power

• highly concentrated market => Apple or IBM

• no alternatives/ price comparison as readily available => no references/ reviews

2020:

• higher buyer power

• comparison websites available

• more saturated market

• more price elastic due to higher competition

• low switching costs

• but high brand loyalty

• high supplier power because of high concentration

• forerunners => absence of substitutes & high switching costs

• apple developed own soft- & hardware, IBM depended on Intel & Microsoft

2020:

• lower supplier power

• low concentration, more commoditized market

• lower switching costs because of more substitutes

• very low number of competitors but fierce competition btwn Apple & IBM

• reduced market, very concentrated => Oligopoly

• higher profit margins on sales (10.000$ Apple PCs)

2020:

• higher number of players in market

• reduced margins on PC sales with increased competition

• lower barriers to entry

• still in the process of developing/ research, a lot of undiscovered potential

• easier to differentiate/ distinguish from competitors

• no economies of scale built yet, like brand loyalty/ names

• less capital needed for initial investment to enter

• no network externalities built yet

2020:

• high entry barriers => saturated, mature market with known brand names

• difficult to compete for newcomer because of brand loyalty

• economies of scale for incumbent firms

• higher initial capital required for marketing campaigns, licenses etc

• buyers are hesitant to switch

• network built amongst incumbents

• very low threat of substitutes

• much harder to compare amongst competitors => lower propensity to substitute

• limited software available in general

2020:

• threat of substitutes from competitors

• own products cannibalizing PCs

• comparison websites more easily accessible => lower switching costs