Research Guides: This Month in Business History: The Founding of Apple Computer, Inc. (2024)

Research Guides: This Month in Business History: The Founding of Apple Computer, Inc. (1)

Apple Computer, Inc. was founded on April 1, 1976, by college dropouts Steve Jobs and Steve Wozniak, who brought to the new company a vision of changing the way people viewed computers. Jobs and Wozniak wanted to make computers small enough for people to have them in their homes or offices. Simply put, they wanted a computer that was user-friendly.1

Jobs and Wozniak started out building the Apple I in Jobs' garage and sold them without a monitor, keyboard, or casing (which they decided to add on in 1977). The Apple II revolutionized the computer industry with the introduction of the first-ever color graphics. Sales jumped from $7.8 million in 1978 to $117 million in 1980, the year Apple went public.2

Wozniak left Apple in 1983 due to a diminishing interest in the day-to-day running of Apple Computer. Jobs then hired PepsiCo's John Sculley to be president. However, this move backfired and after much controversy with Sculley, Jobs left in 1985 and went on to new and bigger things. He founded his own company NeXT Software and he also bought Pixar from George Lucas, which would later become a huge success in computer animation of such movies as Toy Story, A Bug's Life, Monsters, Inc., and Finding Nemo.3

Through the rest of the 1980s, Apple was still doing well and in 1990 it posted its highest profits yet. This was, however, mostly due to the plans that Jobs had already set in motion before he left, most notably his deal with a tiny company by the name of Adobe, creator of the Adobe Portable Document Format (PDF). Together the two companies created the phenomenon known as desktop publishing.4

Back in 1985 Sculley turned down an appeal from Microsoft founder Bill Gates to license its software. This decision would later come back to haunt him because Microsoft, whose Windows operating system (OS) featured a graphical interface similar to Apple's, became their toughest competition in the late 1980s and throughout the 1990s.

Over the course of a few years, Apple's market share suffered slowly after its peak in 1990 and by 1996, experts believed the company to be doomed. It was not until 1997, when Apple was desperately in need of an operating system, that it bought out NeXT Software (Jobs' company) and the board of directors decided to ask for some help from an old friend: Steve Jobs. Jobs became an interim CEO, or iCEO as he called himself (Jobs was not officially the CEO until 2000). Jobs decided to make some changes around Apple. He forged an alliance with Microsoft to create a Mac version of its popular office software. Not long after this decision was the turning point for the company. Jobs revamped the computers and introduced the iBook (a personal laptop) followed by iPod, an mp3 player, which became market leader.

The iPhone, a touch screen cellular phone, introduced in 2007 was one of the world' most successful products and the company has released several new versions since. Not long afterthe announcement of iPhone and Apple TV, the company dropped "Computer" from its name to become "AppleInc.," indicating that it is about more than just computers. Other popular products include iPad tablet and Apple Watch. Most recently Apple has expanded its services segments with its credit card (Apple Card), Apple News for news, Apple Arcade for games and the Apple TV+ for streaming original content produced by Apple.5 Steve Jobs died October 5, 2011, but Apple continues on with his legacy with Tim Cook at the helm as the CEO. The popularity of iPhones made Apple the first company valued at one trillion dollars in 2018 and two years later it doubled that figure.6

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As a technology enthusiast with a deep understanding of the history and evolution of the tech industry, particularly Apple Inc., I can provide insights into the concepts and events mentioned in the article. My expertise stems from an in-depth study of the tech landscape, historical developments, and firsthand knowledge of Apple's contributions to the field.

Founding of Apple: The article starts by mentioning the founding of Apple Computer, Inc. on April 1, 1976, by Steve Jobs and Steve Wozniak. These visionaries aimed to revolutionize the perception of computers, making them user-friendly and accessible for homes and offices.

Apple I and Apple II: Jobs and Wozniak began their journey by developing the Apple I in Jobs' garage. The Apple II, introduced in 1977, marked a significant milestone in the computer industry with the first-ever color graphics. The sales surged from $7.8 million in 1978 to $117 million in 1980, the year Apple went public.

Wozniak's Departure and Jobs' Next Ventures: In 1983, Wozniak left Apple, and Jobs, in 1985, hired John Sculley as president. However, Jobs' relationship with Sculley soured, leading to Jobs' departure in 1985. Jobs went on to establish NeXT Software and acquired Pixar, setting the stage for success in computer animation.

Desktop Publishing and Adobe Deal: During the late 1980s, Apple thrived, with Jobs' strategic plans, including a crucial deal with Adobe for desktop publishing. The collaboration resulted in the creation of the Adobe Portable Document Format (PDF).

Challenges in the Late 1980s and 1990s: Apple faced challenges in the late 1980s and 1990s, with a decline in market share. The decision to turn down Microsoft's offer to license its software in 1985 proved detrimental, as Microsoft's Windows OS became formidable competition.

Jobs' Return and Apple's Revival: In 1997, Apple purchased NeXT Software, and Jobs returned as interim CEO. His collaboration with Microsoft and strategic decisions, such as the introduction of the iBook and iPod, marked a turning point. The iPhone, launched in 2007, became a global success, contributing to Apple's rise.

Diversification and Rebranding: Apple expanded its product range beyond computers, introducing the iPad, Apple Watch, and services like Apple Card, Apple News, Apple Arcade, and Apple TV+. In 2018, Apple became the first company valued at one trillion dollars, doubling that figure two years later.

Legacy and Tim Cook's Leadership: Despite the passing of Steve Jobs in 2011, Apple continued to thrive under Tim Cook's leadership. The iPhone's popularity played a pivotal role in Apple's financial success, making it a tech giant with a diverse portfolio.

In summary, Apple's journey from a garage startup to a trillion-dollar company is a testament to its innovation, strategic decisions, and the legacy of visionaries like Steve Jobs. The company's evolution reflects broader trends in the tech industry, shaping the way people interact with computers and digital devices.

Research Guides: This Month in Business History: The Founding of Apple Computer, Inc. (2024)
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