How Apple Does It

Conventional wisdom says its strategy is wrong, yet it keeps turning out great products. TIME looks inside the world's most innovative company

This is partly a story about a company called Apple Computer. It's also partly a story about a fancy new iPod that plays videos as well as music and that could dramatically change the way people entertain themselves. But it's mostly a story about new things and where they come from, about which there are a few popular misconceptions.

Stop and look at Apple for a second, since it's an odd company. It has been around long enough and has a high enough profile that it's easy to forget that. While most high-tech firms focus on one or two sectors, Apple...