Apple is one of the world’s largest technology companies. It produces computers, laptops, media players and various software. The company became a pioneer in many areas. It has created the first truly personal computer, the first multi-color display for the PC, the first operating system with a graphical interface, the first computer that supports a mouse, the first personal music player, the first online music store. But being innovative is not the only secret of being a leader. Greatest companies know when to leapfrog when they find themselves behind.

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In 1998 Apple unveiled its personal computer of the «new era». Simultaneously, the company faced a tremendous problem. Jobs made the invention all about managing photos and videos, but he left out music experience. It happened right when people all around the world were downloading songs and burning the CDs. That option was not available on iMac.

Steve Jobs knew that it was a big problem, but he didn’t try to catch up with PC vendors by upgrading Apple iMac. Instead, he decided that company needs entirely new system dedicated to music; an invention that will transform the industry. Thus iTunes, the iTunes Store, and iPod were created. Now Apple users were finally able to manage, share and store music. Moreover, online service’s paid content gave additional revenue to the company and its strategic partners – Music, TV, and Movie industry.

iPod became a phenomenon. Nevertheless, Steve Jobs knew that to continue to be the leader his, company had to be one step forward. He was afraid that other vendors would launch music players on their phones. Instantly, the iPhone was unveiled. Jobs knew that the handset would kill iPod sales. Despite this, he said that it’s better to be cannibalized by own company, than by someone else’s.