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The Apple I, Apple's first product. Sold as an assembled circuit board, it lacke
d basic features such as a keyboard, monitor, and case. The owner of this unit a
dded a keyboard and a wooden case.
Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald
Wayne,[1] to sell the Apple I personal computer kit. They were hand-built by Woz
niak[16][17] and first shown to the public at the Homebrew Computer Club.[18] Th
e Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chip
s) less than what is today considered a complete personal computer.[19] The Apple
I went on sale in July 1976 and was market-priced at $666.66 ($2.55 thousand in
2010 dollars, adjusted for inflation.)[20][21][22][23][24][25]
Apple was incorporated January 3, 1977[7] without Wayne, who sold his share of t
he company back to Jobs and Wozniak for $800. Multi-millionaire Mike Markkula pr
ovided essential business expertise and funding of $250,000 during the incorpora
tion of Apple.[26][27]
The Apple II was introduced on April 16, 1977 at the first West Coast Computer F
aire. It differed from its major rivals, the TRS-80 and Commodore PET, because i
t came with color graphics and an open architecture. While early models used ord
inary cassette tapes as storage devices, they were superseded by the introductio
n of a 5 1/4 inch floppy disk drive and interface, the Disk II.[28]
The Apple II was chosen to be the desktop platform for the first "killer app" of
the business world the VisiCalc spreadsheet program.[29] VisiCalc created a busin
ess market for the Apple II, and gave home users an additional reason to buy an
Apple II compatibility with the office.[29] According to Brian Bagnall, Apple exag
gerated its sales figures and was a distant third place to Commodore and Tandy u
ntil VisiCalc came along.[30][31]
By the end of the 1970s, Apple had a staff of computer designers and a productio
n line. The company introduced the ill-fated Apple III in May 1980 in an attempt
to compete with IBM and Microsoft in the business and corporate computing marke
t.[32]
Jobs and several Apple employees including Jef Raskin visited Xerox PARC in Dece
mber 1979 to see the Xerox Alto. Xerox granted Apple engineers three days of acc
ess to the PARC facilities in return for the option to buy 100,000 shares of App
le at the pre-IPO price of $10 a share.[33] Jobs was immediately convinced that
all future computers would use a graphical user interface (GUI), and development
of a GUI began for the Apple Lisa.[34]
In December 1980, Apple launched the initial public offering of its stock to the
investing public.[citation needed] When Apple went public, it generated more ca
pital than any IPO since Ford Motor Company in 1956 and instantly created more m
illionaires (about 300) than any company in history. Several venture capitalists
cashed out, reaping billions in long-term capital gains.[citation needed]
1981 1985: Lisa and Macintosh
The heroine from Apple's "1984" ad, set in a dystopian future modeled after the
George Orwell novel Nineteen Eighty-Four, set the tone for the introduction of t
he Macintosh.
Steve Jobs began working on the Apple Lisa in 1978 but in 1982 he was pushed fro
m the Lisa team due to infighting, and took over Jef Raskin's low-cost-computer
project, the Macintosh. A turf war broke out between Lisa's "corporate shirts" a
nd Jobs' "pirates" over which product would ship first and save Apple. Lisa won
the race in 1983 and became the first personal computer sold to the public with
a GUI, but was a commercial failure due to its high price tag and limited softwa
re titles.[35]
The first Macintosh, released in 1984.
In 1984, Apple next launched the Macintosh. Its debut was announced by the now f
amous $1.5 million television commercial "1984". It was directed by Ridley Scott
, aired during the third quarter of Super Bowl XVIII on January 22, 1984,[36] an
d is now considered a watershed event for Apple's success[37] and a "masterpiece
".[38][39]
The Macintosh initially sold well, but follow-up sales were not strong[40] due t
o its high price and limited range of software titles. The machine's fortunes ch
anged with the introduction of the LaserWriter, the first PostScript laser print
er to be offered at a reasonable price point, and PageMaker, an early desktop pu
blishing package. The Mac was particularly powerful in this market due to its ad
vanced graphics capabilities, which were already necessarily built-in to create
the intuitive Macintosh GUI. It has been suggested that the combination of these
three products was responsible for the creation of the desktop publishing marke
t.[41]
In 1985, a power struggle developed between Jobs and CEO John Sculley, who had b
een hired two years prior.[42] The Apple board of directors felt that products s
uch as the Macintosh had been a failure because of dismal sales. They instructed
Sculley to "contain" Jobs and limit his ability to launch expensive forays into
untested products. Rather than submit to Sculley's direction, Jobs attempted to
oust him from his leadership role at Apple. Sculley found out that Jobs had bee
n attempting to organize a putsch and called a board meeting at which Apple's bo
ard of directors sided with Sculley and removed Jobs from his managerial duties.
[40] Jobs resigned from Apple and founded NeXT Inc. the same year.[43]
Apple's sustained growth during the early 1980s was in great part due to its lea
dership in the education sector, attributed to an implementation of the LOGO Pro
gramming Language by Logo Computer Systems Inc., (LCSI), for the Apple II platfo
rm. The success of Apple and LOGO in the education environment provided Apple
with a broad base of loyal users around the world. The drive into education was
accentuated in California by a momentous agreement concluded between Steve Jobs
and Jim Baroux of LCSI, agreeing with the donation of one Apple II and one Apple
LOGO
software package to each public school in the state. The arrangement, eventually
replicated in Texas, established a strong and pervasive presence for Apple in a
ll
schools throughout California, which ignited the acquisition of Apple IIs in sch
ools across the country. The conquest of education became critical to Apple's
acceptance in the home, as parents supported continued learning experience for c
hildren after school.
1986 1993: Rise and fall
See also: Timeline of Apple II family and Timeline of Macintosh models
The Macintosh Portable was Apple's first "portable" Macintosh computer, released
in 1989.
Having learned several painful lessons after introducing the bulky Macintosh Por
table in 1989, Apple introduced the PowerBook in 1991, which established the
modern form and ergonomic layout of the laptop computer.[44] The Macintosh Porta
ble was designed to be just as powerful as a
desktop Macintosh and turned out 17 pounds
with a 12 hour battery life. Apple sold fewer than 100,000 units.[] The Powerboo
k was 7 pounds and had a 3 hour battery life, and sold a billion
dollars worth within the first year.[citation needed] The same year, Apple
introduced System 7, a major upgrade to the operating system, which added color
to the interface and introduced new networking capabilities. It remained the arc
hitectural basis for Mac OS until 2001.
The success of the PowerBook and other products led to increasing revenue.[42] F
or some time, it appeared that Apple could do no wrong,
introducing fresh new products and generating increasing profits in the process
. The magazine MacAddict has named the period between 1989 and 1991 as the "firs
t golden age" of the Macintosh.
Following the success of the Macintosh LC, Apple introduced the Centris line, a
low end Quadra offering, and the ill-fated Performa line that was sold in severa
l
confusing configurations and software bundles to avoid competing with the variou
s consumer outlets such as Sears, Price Club, and Wal-Mart, the primary dealers
for these models. The result was disastrous for Apple as consumers did not under
stand the difference between models.
During this time Apple experimented with a number of other failed consumer targe
ted products including digital cameras, portable CD audio players, speakers, vid
eo consoles, and TV appliances. Enormous resources were also invested in the pro
blem-plagued Newton division based on John Sculley's unrealistic market forecast
s. Ultimately, all of this proved too-little-too-late for Apple as their market
share and stock prices continued to slide.
Apple saw the Apple II series as too expensive to produce, while taking away sal
es from the low end Macintosh.[45] In 1990, Apple released the Macintosh LC with
a single expansion slot for the Apple IIe Card to migrate Apple II users to the
Macintosh platform.[46] Apple stopped selling the Apple IIe in 1993.
Microsoft continued to gain market share with Windows, focusing on delivering so
ftware to cheap commodity personal computers while Apple was delivering a richly
engineered, but expensive, experience.[47] Apple relied on high profit margins
and never developed a clear response. Instead they sued Microsoft for using a gr
aphical
user interface similar to the Apple Lisa in Apple Computer, Inc. v. Microsoft Co
rporation.[48] The lawsuit dragged on for years before it was thrown out of cour
t. At the same time, a series of major product flops and missed deadlines
sullied Apple's reputation, and Sculley was replaced by Michael Spindler.[49]
1994 1997: Attempts at reinvention
The Newton was Apple's first foray into the PDA markets, as well as one of the f
irst in the industry. A financial flop, it helped pave the way for the Palm Pilo
t and Apple's own iPhone and iPad in the future.
By the early 1990s, Apple was developing alternative platforms to the Macintosh,
such as the A/UX. The Macintosh platform was becoming outdated since it was not
built for multitasking, and several important software routines were programmed
directly into the hardware. In addition, Apple was facing competition from OS/2
and UNIX vendors like Sun Microsystems. The Macintosh would need to be replaced
by a new platform, or reworked to run on more powerful hardware.[50]
In 1994, Apple allied with IBM and Motorola in the AIM alliance. The goal was to
create a new computing platform (the PowerPC Reference Platform), which would u
se IBM and Motorola hardware coupled with Apple's software. The AIM alliance hop
ed that PReP's performance and Apple's software would leave the PC far behind, t
hus countering Microsoft. The same year, Apple introduced the Power Macintosh, t
he first of many Apple computers to use IBM's PowerPC processor.[51]
In 1996, Michael Spindler was replaced by Gil Amelio as CEO. Gil Amelio made man
y changes at Apple, including massive layoffs.[52] After multiple failed attempt
s to improve Mac OS, first with the Taligent project, then later with Copland an
d Gershwin, Amelio chose to purchase NeXT and its NeXTSTEP operating system, bri
nging Steve Jobs back to Apple as an advisor.[53] On July 9, 1997, Gil Amelio wa
s ousted
by the board of directors after overseeing a three-year record-low stock price a
nd crippling financial losses. Jobs became the interim CEO and began restructuri
ng the company's product line.
At the 1997 Macworld Expo, Steve Jobs announced that Apple would join Microsoft
to release new versions of Microsoft Office for the Macintosh, and that Microsof
t made a $150 million investment in non-voting Apple stock.[54]
On November 10, 1997, Apple introduced the Apple Store, tied to a new build-to-o
rder manufacturing strategy.[55][56]
1998 2005: Return to profitability
On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of th
e Macintosh 128K: the iMac. The iMac design team was led by Jonathan Ive, who wo
uld later design the iPod and the iPhone.[57][58] The iMac featured modern techn
ology and a unique design. It sold close to 800,000 units in its first five mont
hs.[59]