1. Apple struggled in the 1990s as it lost its innovative culture and customer base while diversifying into multiple businesses. 2. In the late 1990s and early 2000s, Apple refocused on its core competencies of innovation and design by entering the consumer electronics industry with products like the iPod and expanding into music and movies. 3. Apple has successfully transformed itself from a computer company into a leading consumer electronics company by leveraging its brand loyalty, focusing on ease of use, and integrating hardware, software, and digital content.