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79) At the peak of its success in the mid-1980s to the early 1990s, Apple Com¬pu

ID: 1228983 • Letter: 7

Question

79) At the peak of its success in the mid-1980s to the early 1990s, Apple Com¬puter had a 15 percent share of the personal computer market. In 2007 Apple's share of the growing personal computer market was estimated at 6 percent. Which of the following best accounts for this decline in market share?
a. The entry of rivals eliminated Apple's product differentiation.
b. Apple was not able to keep up with technological advancements in the per¬sonal computer market.
c. The entry of rivals revealed that Apple was producing sub-standard comput¬ers.
d. Rivals engaged in predatory pricing but Apple was not willing to engage in a price war.

Explanation / Answer

b. Apple was not able to keep up with technological advancements in the per¬sonal computer market.

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