Introduction Apple Computers Inc. was incorporated in early 1977. Its primary business was the manufacture of personal computers. Apple’s primary target was to make privet individuals to own a computer. This strategy has changed over the years. It has incorporated other devices into its production line (Chapman & Hoskisson, 2012). Over the years, Apple’s innovations have revolutionized the smart devices market. The company was reluctant to venture into the mobile phone market at first. Steve Jobs once said that Apple would not manufacture a phone. His reason was the company’s incapacity to control what went into the device (Meyer, 2010). A few years later, Apple produced the iPhone. The iPhone is just one of Apple’s leading products. ITunes allows subscribers to download music and movies at a fee. This innovation fundamentally changed music distribution worldwide. The company does not earn substantial amounts from this service. Apple capitalizes on its influence on other products instead. It significantly increases iPod’s sales as many customers use it to store their music and movies (Chapman & Hoskisson, 2012). The iPod is Apples cash cow, generating up to 40% of its revenues (Meyer, 2010). Apple’s iPhone combines mobile phone and iPod features. The company operates in a highly competitive industry, competing directly with cell phones, computers, digital content and consumer electronics. Apple combines innovation and smart marketing strategies to maintain its competitive advantage (Meyer, 2010). Strategic challenges facing Apple Computer Apple Computer keeps a tight control over the quality of its products (Chapman & Hoskisson, 2012). This has assured its customers of high quality products and services from the company. Keeping this control and maintaining quality is a challenge facing the company. Various companies supply its product components. These include; Texas Instruments, Phillips and Samsung. Some of these suppliers have expressed concern over Jobs’ controlling nature (Chapman & Hoskisson, 2012). Maintaining a balance between quality controls and good relationships with suppliers is a major challenge for the company. Apple’s innovative ability has always been the hallmark of its success. It produces attractive pieces which competitors keep reproducing (Chapman & Hoskisson, 2012). The challenge to Apple is maintaining these abilities. Remaining innovative helps to keep its products unique and different from its competitors. As it expands globally, keeping its innovations secret will be another challenge. Information on designs and other important details may leak from its factories worldwide. Apple’s traditional clients were technology savvy fanatics. Its customer base has widened with an increase in its products. Some of its products aim at specific consumer groups such as students (Chapman & Hoskisson, 2012). Marketing to these diverse markets and meeting their expectations is going to be a huge challenge. Eye-catching marketing ads have always been associated with Apple. With a wider and varied customer base, the company needs to remain relevant. Satisfying a varied customer base is not going to be easy for Apple. There are customers who prefer products that are compatible with different devices. Apple has always preferred se