Adobe 2001 Annual Report Download - page 10

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COMPETITION
The markets for Adobe products are characterized by intense competition, evolving industry
standards, rapid technology developments, and frequent new product introductions. Our future success will
depend on our ability to enhance our existing products, introduce new products on a timely and
cost-effective basis, meet changing customer needs, extend our core technology into new applications, and
anticipate or respond to emerging standards and other technological changes.
Graphics
The graphics software market is a constantly evolving market, characterized by rapid technology
developments and frequent new product introductions. The needs of the graphics professionals are rapidly
changing to encompass on-line publishing as well as print-based publishing. Adobe’s tools in this market,
including Adobe Photoshop, Adobe Photoshop Elements, Adobe PhotoDeluxe, Adobe Illustrator, Adobe
After Effects, and Adobe Premiere, face significant competition from companies offering similar products
and will continue to face competition from emerging products and technologies.
The mid-range consumer digital imaging software market is characterized by intense competition,
price sensitivity, brand awareness, and strength in retail distribution. We face direct and indirect
competition in this market from a number of companies, including Jasc Software, Roxio (formerly MGI
Software), Microsoft, and Ulead Systems. We believe that we lead in market share and compete favorably
with our Adobe Photoshop Elements product due to consumer awareness of our brand in digital imaging,
our strong relationships with critical original equipment manufacturers (‘‘OEM’’) and market influencers,
and a strong feature set.
The professional digital imaging software market is characterized by feature-rich competition, brand
awareness, and price sensitivity. We face direct and indirect competition in this market from a number of
companies, including Jasc Software and Macromedia. We believe that we lead in market share and
compete favorably with our Adobe Photoshop product due to high awareness of the Adobe Photoshop
brand in digital imaging, our strong relationships with market influencers, the features and technical
capabilities of the product, and our ability to leverage core features from our other established products.
The dynamic media software market is an increasingly competitive market as professional, enthusiast,
and home users migrate away from analog video tools towards the use of digital camcorders and digital
video production. Adobe After Effects and Adobe Premiere face increased competition from companies
such as Apple Computer, Autodesk, Eyeon, Pinnacle, in-sync Corporation, Media 100, Roxio (formerly
MGI Software), Avid, Sonic Foundry, and Ulead Systems. In the professional compositing and special
effects editing market, we believe that we lead in market share with Adobe After Effects and compete
favorably in this market due to our strong feature set and the integration with our other products to create
a broad platform for our customers. In the professional digital video editing market we believe that we lead
in market share with Adobe Premiere on the Microsoft Windows platform, and compete favorably in this
market due to our strong feature set, our OEM relationships, and the integration with our other products
to create a broad platform for our customers. In the professional digital video editing market on the
Macintosh platform, we believe we trail in market share to Apple Computer’s digital video editing product.
We believe that our competition on the Macintosh platform with Adobe Premiere is more difficult, based
on Apple’s marketing advantage relative to their ownership and control of the Macintosh operating system
and hardware platform upon which we compete.
The drawing and illustration market is characterized by feature-rich competition, brand awareness,
and price sensitivity. Adobe Illustrator faces competition from companies such as Corel and Macromedia.
We believe that we lead in market share and compete favorably with our product in this market due to high
awareness of the features in our Illustrator product, especially the drawing and illustration functionalities,
our strong relationships with market influencers, the features and technical capabilities of the product, and
our ability to leverage core technologies from our other established products.
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