Final answer:
IBM-compatible computers dominated Apple in the early PC market primarily because of their lower price points, strategic targeting of the business and government sectors, and the development of a widespread compatible ecosystem. This created a standard that propelled IBM into market leadership despite Apple's early innovations.
Step-by-step explanation:
IBM-compatible computers came to dominate Apple computers in the early PC market mainly due to the lower price points of the IBM PCs. The affordability of IBM-compatible PCs made them more accessible to a broader range of consumers and businesses. As the microprocessor technology evolved, these computers became smaller and more affordable, shifting from minicomputers used in companies and universities to personal computers within the reach of ordinary consumers. Apple initiated the personal computer revolution with the Apple II, but it was IBM's entry into the market with the IBM PC in 1981 that cemented their dominance. IBM targeted the business and government sectors effectively and worked closely with Microsoft, which developed the operating system. This strategy leveraged economies of scale and a growing ecosystem of hardware and software compatible with IBM's architecture, creating a standard that most other companies followed, thereby overshadowing Apple's early lead in the personal computer market.