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INTRODUCTION

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Apple Inc., formerly Apple Computer, Inc., is a multinational corporation that creates consumer electronics, computer software, and commercial servers. Apple's core product lines are the iPhone, iPod music player, and Macintosh computers. Founders Steve Jobs and Steve Wozniak effectively created Apple Computer on April 1, 1976, with the release of the Apple I, and incorporated the company on January 3, 1977, in Cupertino, California. For over two decades, Apple Computer has been predominantly a manufacturer of personal computers, including the Apple II, Macintosh, and Power Mac lines, but faced rocky sales and low market share during the 1990s. Jobs, who had been ousted from the company in 1985, returned to become Apple's CEO in 1996, and brought with him a new corporate philosophy of recognizable products and simple design. With the introduction of the successful iPod music player in 2001, Apple established itself as a leader in the consumer electronics industry, dropping "Computer" from its name. The latest era of phenomenal success for the company is in the iOS (Apple) range of products that began with the iPhone, iPod Touch and now iPad. Today, Apple is the largest technology firm in the world, with annual revenue of over $60 billion.[1] In mid 2010, Apple overtook Microsoft to become the largest technology by market capitalization. While breaking the $300 billion market value in January 2011, Apple currently is the world's second largest company behind Exxon Mobil.

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Company History

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Company History: 1976-1981 Steven Wozniak and Steven Jobs had been friends in high school. They had both been interested in electronics, and both had been perceived as outsiders. They kept in touch after graduation, and both ended up dropping out of school and getting jobs working for companies in Silicon Valley. (Woz for Hewlett-Packard, Jobs for Atari) Wozniak had been dabbling in computer-design for some time when, in 1976, he designed what would become the Apple I. Jobs, who had an eye for the future, insisted that he and Wozniak try to sell the machine, and on April 1, 1976, Apple Computer was born. Hobbyists did not take the Apple I very seriously, and Apple did not begin to take off until 1977, when theApple II debuted at a local computer trade show. The first personal computer to come in a plastic case and include color graphics, the Apple II was an impressive machine. Orders for Apple machines were multiplied by several times after its introduction. And with the introduction in early '78 of the Apple Disk II, the most inexpensive, easy to use floppy drive ever (at the time), Apple sales further increased. With the increase in sales, however, came an increase in company size, and by 1980, when the Apple III was released, Apple had several thousand employees, and was beginning to sell computers abroad. Apple had taken on a number of more experienced mid-level managers and, more importantly, several new investors, who opted to take seats on the board of directors. Older, more conservative men, the new directors made sure that Apple became a "real company," much to the dismay of many of its original employees. In 1981, things got a bit more difficult. A saturated market made it more difficult to sell computers, and in February. Apple was forced to lay off 40 employees. Wozniak was injured in a plane crash. He took a leave of absence and returned only briefly. Jobs became chairman of Apple computer in March.

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Company History: 1981-1983 Following the historic visit to Xerox PARC in 1979, Jobs and several other engineers began to develop the Lisa, which would redefine personal computing. Jobs, however, proved to be a poor project manager, and was taken off the Lisa by Mike Markkula, then president of Apple, and one of the major stockholders. Jobs, who owned only 11% of Apple, decided to take over someone else's project, and began working with the Macintosh--which had started as a $500 personal computer. Jobs made sure it was much more. In 1981, IBM released its first PC. With the power of Big Blue behind it, the PC quickly began to dominate the playing field. Jobs' team would have to work very quickly if they hoped to compete with IBM in the personal computer market. Jobs began to realize that Apple would have to become a "grown-up" company, and realized he was not the man for the job. In early 1983, Jobs began to court John Sculley, then president of Pepsi-Cola. In April, he was successful, and Sculley became president and CEO of Apple. Jobs believed Sculley would help Apple "grow up," but had no idea how right he would turn out to be. Eventually, it cost him his job. Company History: 1983-1985 Although a successful businessman, it soon became clear that Sculley did not know much about the computer industry. He and Jobs were at odds almost immediately. As the announcement of the Macintosh drew closer, Jobs went into hyperdrive. He worked hard to get developers to write programs for the upcoming machine--Jobs had realized that the Mac would ultimately be made or broken by the software industry.

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In May of 1985 Jobs decided to make a play for control of the company. and he decided to confront Jobs. Sculley became locked in a battle with Microsoft's Bill Gates over the introduction of Windows 1. and lack of hard drive connectivity.0--it said nothing of future versions of Windows. Jobs believed that Sculley knew nothing about the computer industry. The company also posted its first quarterly loss. At the same time. Directed by Ridley Scott.4 MB) introducing the Macintosh. involving the Windows interface. Apple aired its infamous 60 second commercial (13. and the resignation of Jobs. and sided unanimously with Sculley. He enticed Sculley to schedule a meeting in China. which had many similarities to the Mac GUI. and Gates' lawyers made sure it was airtight. All this. and PageMaker. This would prove to be an important document in future lawsuits between Apple and Microsoft. At the last minute someone leaked the information to Sculley. served to erode confidence in Sculley's abilities as CEO of Apple. Gates finally agreed to sign a statement to the effect that Microsoft would not use Mac technology in Windows 1. the first affordable PostScript laser printer for the Mac. It was around the beginning of 1985 that Jobs and Sculley began to argue. the Mac sold very well. leaving Sculley as the head of Apple. and planned to stage a boardroom coup while Sculley was gone. and was making a poor effort to learn. but by Christmas of 1984. the Orwellian scene depicted the IBM world being shattered by a new machine. Sculley believed Jobs was dangerous and out of control. Over the next few months. Apple was forced to lay off a fifth of its work force.200 employees. people were becoming fed up with its small amount of RAM. during the third quarter of the Super Bowl. one of the first Desktop 5 . Apple had effectively lost exclusive rights to its interface design. Initially. 1984. After a heated argument between the two.On January 22nd. Company History: 1985-1993 Sculley became the de facto head of Apple in May 1985.0. Jobs resigned that day. What brought Mac out of the hole were the twin introductions of the LaserWriter. the board took a vote. some 1.

it was becoming clear that Apple could not provide both the hardware and the software to drive an industry. putting Spindler in the big chair. the Mac II made the Macintosh line a viable. By 1990 the market was saturated with PC-clones of every conceivable configuration. These two in tandem made the Mac an ideal solution for inexpensive publishing. powerful family of computers. which Apple called the Newton.1 MB). There was also talk of porting the OS to run on Intel-based machines. Sculley began to lose interest in the day to day operations of Apple. the Personal Digital Assistant (PDA). saying that it was "too late to license. It was Michael Spindler. Work was being done on a new type of computer." In late 1991. Apple introduced the Mac II. who nixed the idea. Apple was in trouble. Eventually the Apple Board of Directors decided they'd had enough. and did not sell particularly well. Apple was a "Wall Street darling" again. While many believed it would erode the quality of the Mac. They relieved Sculley of his position as CEO. and the Mac would be riding high for the next decade. and the Mac became an overnight success. again. It didn't. Apple released its first generation of PowerBooks. In 1987. 6 . Sculley took an immediate interest in the Newton. which could run on virtually all of the PC-clones in the world. In June of 1993. (Rolling Stone) shipping 50.0.000 Macs a month.Publishing programs ever. Microsoft rolled out Windows 3. In late May. which were an instant success. The first generation of Newtons had extremely poor hand-writing recognition (2. Apple's new COO. Sculley remained with the company as chairman for several months and then resigned. Apple's top idea for a solution was to license the Mac OS. Built with expandablity in mind. or that it would create even more competition. and drove the Newton to completion in August 1993. It seemed in 1989 that Windows would be a flop. and Apple was the only company selling Macs.

the former president of National Semiconductor. In January 1996. the first Macs to be based on the PowerPC chip.Company History: 1993-1996 Spindler. one of the more successful Mac-clone makers. Misjudging the market. 7 . But many believe the Apple was too restrictive in its licensing agreements. and failed to make a profit at all. and only a handful of companies ever licensed the Mac OS. by all accounts. Spindler was asked to resign as CEO and was replaced by Gil Amelio. was the wrong man for the job. The PowerPC processor allowed Macs to compete with. In 1994 Apple announced the PowerMac family. By June 1995 Apple had $1 billion dollars in backorders--and did not have the parts to build them. However. Spindler also decided to license the Mac OS to several companies. Apple posted a $68 million loss for that quarter. Spindler oversaw several accomplishments. and in many cases surpass. the speed of Intel's newer processors. Spindler's office was nearly impossible to get into. which mimicked the Mac GUI better than ever. in his two and a half years as CEO. Apple's problems were added to by the late-summer release of Windows '95. Apple's worst problem wasn't selling computers--it was building them. Apple pushed low-costPerformas over mid-range PowerMacs. Apple took its worst plunge ever in the winter of 1995-96. including Power Computing. A fairly impersonal man. an extremely fast processor co-developed with IBM and Motorola.

Company History: 1996-1997 Amelio made a strong effort to bring Apple back to profitability. they brought that loss down to $33 million for Q2. Apple announced the resignation of Gil Amelio. which was to become the basis for Apple's next-generation OS. He has also made an effort to keep developers and customers better informed about the day-to-day affairs of the company. but his efforts would prove to be largely unsuccessful. and Steve Jobs was given an "expanded role" at Apple for the interim. In Q3 Apple profited nearly $30 million.) In late december 1996. and at this time a new CEO has yet to be announced. each responsible for its own profit or loss. Apple's CFO. has been put in charge of day-to-day operation. who had predicted a loss of as much. Although the company announced a staggering $740 million loss for Q1 1996. The merger was brought about in order to acquire NeXTstep. beating all estimates by the best financial experts. (Apple lost considerably more in Q4. In early July 1997. he could do no more. and that Steven Jobs would be returning to the fold. which was slated for a 1998 release. again astounding financial experts. Amelio announced broad changes in the corporate structure of the company. Inc. The Newton department was spun off into a wholly-owned subsidiary. Rhapsody. In the meantime Fred Anderson. The company was to be split into 7 separate divisions. Following his first 100 days as CEO. and that while he had been responsible for a number of improvements at Apple. Newton. The Executive Board reportedly felt that Amelio had done all he could for Apple. 8 . This came as a surprise to nearly everyone. following another multi-million dollar quarterly loss. Apple made an industry-shattering announcement that it would be acquiring NeXT.

Microsoft also announced that Office '98. In early Fall 1997. Microsoft agreed to pay an unreleased sum of additional funds to quiet the allegations that it had stolen Apple's intellectual property in designing its Windows OS. Jobs. and not much time to make them. where they traditionally made the most profit. In a ground breaking decision. and much of 9 . CEO of Oracle. Clones had failed to effectively expand the MacOS market. These announcements gave Apple new life." made the keynote speech. Microsoft and Apple would have a 5-year patent cross-license and. Jobs began to make striking changes in the structure of Apple. instead taking customers away from Apple. including the canceling of the Newton spin-off. and spoke of the company's upcoming aggressive advertising campaign. a final settlement in the ongoing GUI argument. Apple announced its intention to buy out Power Computing's MacOS license. would be available for the Mac by years end. The degree of Jobs' "expanded role" soon became quite clear. and Rhapsody. (The Newton was discontinued several months later. There was one more big obstacle to tackle: Clones. more importantly. who by now was being referred to as "interim CEO. In exchange for $150 million in Apple Stock. there were many decisions to be made. however. including Larry Ellison.) The time and place for the most ground breaking announcements. He also announced an almost entirely new Board of Directors. but Jobs was not finished. upcoming new Macs. Jobs announced an alliance with Microsoft. its popular office package. Jobs remedied this apparent failure of the Clone experiment by all but pulling its plug. Jobs felt that Clone Vendors such as Power Computing were cutting into Apple's high-end market. would be MacWorld Boston in August 1997. But he saved the best for last. With no CEO and Apple Stock lower than it had been in 5 years.Company History: 1997-2000 Jobs' presence was known almost as quickly as NeXT was acquired.

This far eclipsed analysts' projections. Jobs also announced two new Apple machines: the PowerMac G3. In April 1998. Jobs announced that Apple had. Jobs kept momentum moving. Jobs announced a dramatic shift in Apple's OS direction. In January 1999. This helped to push Apple's stock to several 52-week highs in just a few days. which came as a big surprise to nearly everyone. Mac OS X would merge OS 8 and Rhapsody--Apple's upcoming version of NeXTStep--into one robust OS. Jobs announced another profitable quarter. had a profitable First Quarter--to the tune of $44 Million. Jobs announced that Apple had profited for the 3rd consecutive quarter--to the tune of $101 million. On November 10. 1997. Jobs announced a 5th consecutive profitable quarter. and it drove Apple sales well beyond most predictions. The Apple Store was a runaway success. Umax was allowed to stay in the game. Apple also bought out its MacOS licences from Motorola and IBM. At MacWorld San Francisco in January. Jobs announced another profitable quarter ($57 Million). Apple would now sell computers direct. and the PowerBook G3. in which Jobs announced further changes to Apple's corporate strategy. making a full year of profitability. both over the web and the phone. but with the tacit understanding that it would fill the low-end market. at an affordable price. In July 1998. 10 . Later that month. an Educational Apple Store. and an entirely new Mac design--the iMac. and in early May announced a newPowerBook G3. and within a week was the third-largest eCommerce site on the web. The iMac was the best-selling computer in the nation for most of the fall. In the fall. and sent Apple's stock back into the 20s. in his keynote at the WWDC. and a sleek new PowerMac G3. for the first time in more than a year. The iMac would be Apple's answer to the low-end consumer question. Power went out of business several months later. with more than enough computing power for most people. Umax sold its remaining inventory of Macs. as Power Computing had done so well in the past. with all the features of a modern OS and backward compatibility with most OS 8 applications. with year-over-year growth. with Apple taking over its product support.its engineering staff. and is now selling "Wintel" boxes. with machines selling for under $1000. Apple held another press conference.

which sold poorly due primarily to its high price compared to Apple's other products. Another factor was Apple's decision to include DVD-ROM drives in their consumer and professional machines instead of CD-RW drives. and by mid-September was trading at an all-time high. combined with a misunderstanding of the consumer market resulted in the first unprofitable quarter in three years. which had climbed to 130 by early March. The Cube was the biggest gamble Jobs had made since the release of the iMac. In July 2000. becoming the permanent CEO of Apple. In a dramatic Keynote at MacWorld Expo SF in January 2000. Slower sales (both for Apple and the industry as a whole). in the high 70s. as well as challenge to the computing industry to continue to minimize the size of computers while increasing their visual appeal.In July 1999. Apple's stock had risen all summer. Jobs unveiled Apple's new Internet strategy: a suite of mac-only internet-based applications called "iTools" and an exclusive partnership with Earthlink as Apple's recommended ISP. Steve Jobs filled the final quadrant in the "Apple Product Matrix"--The consumer portable--when he introduced the iBook. which added a fifth category to Apple's four-corner product strategy. as did the stock price. As a result. Jobs announced the PowerMac G4. One factor in this decline was the G4 Cube. a significant new professional desktop machine. Several months later. Apple missed sales opportunities to customers 11 . Apple announced a slew of new machines. Jobs also announced that he would be dropping the "interim" from his title. Company History: 2000-2004 The second half of 2000 was rocky for Apple. The Cube was Apple's answer to those who wanted an iMac without a monitor. Apple's sales continued to rise. It would turn out to be a resounding failure. the iBook brought style to the low-end portable market. Based on the same principles that had made iMac such a hot sell a year earlier. including the PowerMac G4 Cube.

the iPod. and iTunes would add value to CD and MP3 players. Apple also announced a major update to the iBook line. which allowed users to encode and listen to MP3 songs. the latter of which had sold extremely well during the summer. selling not only Apple computers. Steve Jobs announced that Apple would be opening a number of retail stores across America. In July. Apple was taking another gamble by charging a premium for the iPod's superior design and small size. etc. ending months of speculation as to how Apple would deal with the Cube's resounding failure in the marketplace. when it announced a new line of PowerMacs. and "suspended production" of the G4 Cube. iDVD would add value to Digital Cameras and to DVD-players. and represented Apple's first hardware addition to its "digital hub" strategy. and iTunes. DVD-players. Apple took the next step in January of 2001. The Fall of 2001 brought new revisions to the PowerBook G4 and iBook lines. MP3 players. and then burn them to CDs. with either CD-RW drives or a new "SuperDrive" which could read and write both CDs and DVDs. Apple announced its first non-computer product in several years. Apple refreshed iMacs and G4. and PDAs. digital cameras. 12 . the iPod faced a similar challenge to the woeful G4 Cube: it favored style and form-factor over price. Just as iMovie had added tremendous value to Digital Cameras.who wanted to burn their own CDs. a smaller and lighter design that borrowed heavily from the PowerBook G4. when it cut prices on the entire PowerMac line. Apple began to rectify these problems in late 2000. At $399. The iPod was a small hard-drive-based digital music player. Apple also announced two new application: iDVD. In late October. It was Apple's hope that making the Mac the "Digital Hub" of the new "Digital Lifestyle" would revitalize Apple's sales and guarantee the long-term security of the company.--by building Mac-only applications that added value to those devices. In May 2001. but various third-party "digital lifestyle" products. developed in the face of a massive slow down in the Technology industry: Apple would take advantage of the explosion of personal electronic devices--CD-players. such as mp3 players. All this was part of Apple's new corporate strategy. a DVD-authoring program. digital still and video cameras.

when it released its flat panel iMac. largely due to macroeconomic conditions. a bundled software package that included iTunes. Apple also announced that it would be shipping its own Web Browser. in an apparent attempt to depend less on Microsoft for what was widely believed to be an inferior product. which would grow to be one of the most popular and successfull of Apple's history. It appeared that the G4 processor had hit a dead end. The G5 chip. The new PowerBooks sold well. the Switchers campain made the strongest case yet for Macs in a PC world. in a play to further push the digital-hub concept into the consumer space. wide-screen 17" model. and in June 2003 came to fruition with the release of the PowerMac G5. In 2003. Steve Jobs announced that the free iTools service would be rolled into a new subscription-based "dotMac" service. Apple announced two new PowerBook G4 models. Apple stumbled in the second half of 2002. aimed squarely at the graphic design market. dotMac was aimed at futher centralizing the Mac in the high-tech lifestyle. based on IBM's Power4 chip. showing profits through the first two quarters. Apple reinvented the consumer desktop. In October. was a 64-bit processor. Apple rolled through the first half of 2002. meaning it could address 13 . however. however. for $50. it announced a quarterly loss of $45 million. Motorola's development and production of the G4-family of processors continued to lag well behind Apple's expectations. Apple released iLife. It also announced iPhoto. Based on non-scripted monologues of real people. In January 2003. and sales of flat panel iMacs remained steady.In January 2002. In June. a new software package aimed at improving the digital camera user experience. Apple worked to remedy the situation by developing a new processor with IBM. Safari. a 12" model similar to existing 12" iBooks. (all but iDVD could be freely downloaded from Apple's site). but Apple was still in trouble in the professional desktop market. Combined with the newly announced iCal and iSync. iPhoto. Apple began to recover. again. Apple's financial troubles continued throughout 2002. and a giant. Apple introduced its "Switchers" ad campain. In January. In July 2002. Apple scrambled to keep itself fresh in a shrinking marketplace. With fewer PC purchases being made. and to build for the future. iMovie and iDVD. due to weak PowerBook and PowerMac sales.

Meanwhile. it could make significant inroads to the digital music market. which would sell individual songs through the iTunes application. who redesigned the motherboard and case from scratch. Apple was poised to take the digital music industry by storm. Though supplies were constrained. Apple did their homework: when announced. Unlike the PowerMac G4.000 songs. the iTunes Music Store already had the backing of the five major record labels. was smaller than many cellphones. and fast. Apple released iTunes for Windows. the G5 was all new. While the iPod had been available for Windows for some time. The iTunes Music Store had a 70% market share among all legal online music download services. and Apple found itself in the position of having a monopoly for the first time in several decades. the G5 sold well and did much to improve Apple's bottom line. user-friendly Windows version of iTunes. Apple cemented its position with the January 2004 release of the iPod mini. for 99 cents each. which was based strongly on existing G3 hardware. 14 . the iPod was beginning to take off. but Apple felt that by offering an easy to use. The PowerMac G5 represented a hugh shift for Apple. In the first year alone.more memory and process larger numbers than its 32-bit G4 cousin. These songs could be played only on Macs or iPods. which while smaller in capacity than the original iPod. and by July this number had increased to more than 100 million. no-nonsense music service. the iTunes Music Store sold more than 70 million songs. which included both iPod and Music Store integration. With the release of a stable. and a catalog of more than 200. it had used third-party software which failed to provide the unique user experience that iTunes/iPod integration allowed. In October 2003. iPods had moved from expensive toys to musthave Christmas presents. Apple unveiled the iTunes Music Store. In April of 2003.

1969-1984: Jobs and Wozniak 15 .

cultural historian Theodore Roszak made the point that the Apple Computer emerged from within the West Coast counterculture and the need to produce print-outs. letter labels. the impetus for "the two Steves" seems to have had another source. and databases. 16 . but both were out of his price range. New microcomputers such as the Altair 8800 and the IMSAI inspired him to build a microprocessor into his video teletype and have a complete computer. and the US$170 Motorola 6800. In 1975. California Steve Jobs and Steve Wozniak were outcasts while they were in high school. In his essay From Satori to Silicon Valley (published 1986). Wozniak started attending meetings of the Homebrew Computer Club. Alex Kamradt commissioned the design and sold a small number of them through his firm. Wozniak preferred the 6800. respectively. by 1975. Roszak offers a bit of background on the development of the two Steves’ prototype models. they had withdrawn from Reed College and UC Berkeley. Aside from their interest in up-to-date technology. Wozniak designed a video teletype that he could use to log on to the minicomputers at Call Computer.1969-1984: Jobs and Wozniak Pre-foundation: Garage of Steve Jobs' parents on Crist Drive in Los Altos. At the time the only microcomputer CPUs generally available were the US$179 Intel 8080.

and learned. waiting for the day he could afford a CPU. Wozniak completed the machine and took it to Homebrew Computer Club meetings to show it off. 17 .So he watched. drawn by Ronald Wayne. When MOS Technology released its US$20 6502 chip in 1976. depicts Isaac Newton under an apple tree. Wozniak's earlier 6800 paper-computer needed only minor changes to run on the new chip. then began to design a computer for it to run on. The Apple I Main article: Apple I The very first Apple Computer logo. as many in Silicon Valley left employers to form their own companies. and designed computers on paper. who was interested in the commercial potential of the small hobby machines. At the meeting. Wozniak wrote a version of BASIC for it. The 6502 was designed by the same people who designed the 6800. Wozniak met his old friend Jobs.

The Byte Shop. collect my money from Terrell at the Byte Shop and pay you. Paul Terrell. The owner. when their mutual friend. Amazed at the tenacity of Jobs. The local cr manager asked Jobs how he was going to pay for the parts and he replied. Jobs approached a local computer store. Terrell assured the cr manager if the computers showed up in his stores Jobs would be paid and would have more than enough money to pay for the parts order. having met in 1971. With that. If you give me the parts on a net 30 day terms I can build and deliver the computers in that time frame. Jobs managed to interest Wozniak in assembling a machine and selling it. introduced 21-year-old Wozniak to 16-year-old Jobs. who said they would be interested in the machine. Jobs then took the purchase order that he had been given from the Byte Shop to Cramer Electronics. the cr manager called Paul Terrell who was attending an IEEE computer conference at Asilomar in Pacific Grove and verified the validity of the purchase order. 18 . went further. saying he would order 50 of the machines and pay US $500 each on delivery. Steve Jobs had found a way to finance his soon-to-be multimillion-dollar company without giving away one share of stock or ownership. Bill Fernandez. Steve Jobs and Steve Wozniak had been friends for some time. "I have this purchase order from the Byte Shop chain of computer stores for 50 of my computers and the payment terms are COD. but only if it came fully assembled. The two Steves and their small crew spent day and night building and testing the computers and delivered to Terrell on time to pay his suppliers and have a tidy profit left over for their celebration and next order. a national electronic parts distributor. and ordered the components he needed to assemble the Apple I Computer.The Apple logo in 1977 created by Rob Janoff with the rainbow color theme used until 1998.

eventually. it was presented to the public at the first West Coast Computer Faire on April 16 and April 17. But the owner of the Byte Shop was expecting complete computers. but with the income from the sales he was able to start construction of a greatly improved machine. using far fewer parts than anything in its class. however. The Apple I also included bootstrap code on ROM. Using a variety of methods. Jobs meanwhile pressed for a much improved case and keyboard. The Apple II Main article: Apple II series But Wozniak had already moved on from the Apple I. Many of the design features of the I were due to the limited amount of money they had to construct the prototype. Finally. the Apple II. Wozniak also designed a cassette interface for loading and saving programs. including borrowing space from friends and family. This was not like the displays of later machines. the Apple II included graphics. at the insistence of Paul Terrell. On the first day of exhibition. Now not only useful for simple text display. Although the machine was fairly simple. Jobs introduced Apple II to a Japanese chemist named Toshio Mizushima who became the first authorized Apple dealer in Japan. and. text was displayed at a terribly slow 60 characters per second. The boards still being a product for the customers Terrell still paid them. selling various prized items (like calculators and a VW bus) and scrounging. which held the display in memory. at the thenrapid pace of 1200 bit/s. and quickly earning Wozniak a reputation as a master designer. which made it easier to start up.The machine had only a few notable features. However. Ronald Wayne. One was the use of a TV as the display system. This was almost the case 19 . this was still faster than the teletypes used on contemporary machines of that era. Joined by another friend. not just printed circuit boards. The main difference internally was a completely redesigned TV interface. 1977. whereas many machines had no display at all. color. it was nevertheless a masterpiece of design.[6] Eventually 200 of the Apple I's were built. the three started to build the machines. with the idea that the machine should be complete and ready to run out of the box. Jobs managed to secure the parts needed while Wozniak and Wayne assembled them.

but one still needed to plug various parts together and type in the code to run BASIC. Banks were reluctant to lend Jobs money.000. and Apple Computer came before Atari alphabetically and thus also in the phone book. including the Apple IIe and Apple IIGS. Another reason was that Jobs had happy memories of working on an Oregon apple farm one summer.[citation needed] The Apple III Main article: Apple III Apple III 20 . the idea of a computer for ordinary people seemed absurd at the time. Jobs eventually met "Mike" Markkula who co-signed a bank loan for US$250. but Wayne was somewhat gun shy due to a failed venture four years earlier. Building such a machine was going to be fiscally burdensome. A number of different models of the Apple II series were built. Why Apple? At the time. the Apple II was released in 1977 and became the computer generally cred with creating the home computer market[citation needed]. and eventually dropped out of the company. 1976.for the Apple I machines sold to The Byte Shop. Millions were sold well into the 1980s. which could still be found in many schools as late as 2005.[7] With both cash and a new case design in hand thanks to designer Jerry Manock. Jobs started looking for cash. and the three formed Apple Computer on April 1. the company to beat was Atari.

Apple Computer faced increasing competition. Apple held its first shareholders meeting as a public company in the Flint Center. Customers who contacted Apple customer service were told to "drop the computer on the desk". While the Apple II was already established as a successful business-ready platform because of Visicalc.) The business of the meeting had been planned (or choreographed) so that the voting could be staged in 15 minutes or less. a large auditorium at nearby De Anza College. This caused the integrated circuit chips to disconnect from the motherboard. the damage was already done. forgoing the cooling fan. the physical design of the case was not sufficient to cool the components inside it. The Apple IPO On December 12. The Apple III was a relatively conservative design for computers of the era. Several venture capitalists cashed out. reaping billions in long-term capital gains. In most cases. In January 1981. By removing the fan from the design. it generated more capital than any IPO since Ford Motor Company in 1956[citation needed] and instantly created more millionaires (about 300) than any company in history. Thousands of Apple III computers were recalled and. Unfortunately. Apple launched the Initial Public Offering of its stock to the investing public. rather. (Previous meetings were held quietly in smaller rooms.By the early 1980s. The Apple III (Apple 3) was designed to take on the IBM PC in the business environment. However. Apple was not content. many shares were in new hands. which is often used for symphony concerts. the Apple III was prone to overheating. he wanted the heat generated by the electronics to be dissipated through the chassis of the machine. although a new model was introduced in 1983 to rectify the problems. 1980. In this case. 21 . which would cause the ICs to fall back in to place. because there had only been a few shareholders. voting proxies are collected by mail and counted days or months before a meeting. after the IPO. Steve Jobs did not want the computer to have a fan. When Apple went public.

a separate group was focused on a computer that would change the world.000.Steve Jobs started his prepared speech. After visiting PARC.000 of pre-IPO stock. icon. this new machine would feature a completely different interface and introduce the words mouse. he dropped his prepared speech and delivered a long. Xerox granted Apple Computer three days access to the PARC facilities. they came away with new ideas that would complete the foundation for Apple Computer's first GUI computer.[citation needed] Xerox PARC and the Lisa Main article: Apple Lisa Lisa While Apple Computer’s business division was focused on the Apple III. but after being interrupted by voting several times. and related topics. emotionally charged talk about betrayal. In return for the right to buy US$1. lack of respect. the Apple 22 . and desktop into the lexicon of the computing public. While the Apple III was another iteration of the text-based computer.

Apple maintains it means Locally Integrated Software Architecture.[13] and is now considered a "watershed event"[14] and a "masterpiece. aired during the third quarter of Super Bowl XVIII on January 22. 1984.5 million television commercial. The Lisa was introduced in 1983 at a cost of US$9. followed by an 18-page brochure included with various magazines in December.[8][9][10][11] (Popular folklore states that "Lisa" was Steve Jobs' first daughter. was announced by a single national broadcast of the now famous US$1. "1984".)[citation needed] Apple Computer's engineers did not come up with the LISA interface overnight. and many were returned in such a bad shape that they could no longer be sold.000 people participated. It was only after months of usability testing and work that Apple settled on the LISA interface of windows and icons.995. The release of the Macintosh and the 1984 commercial Main article: Macintosh The Macintosh 128k was announced to the press in October 1983. Apple spent more than US$2.[17] Apple also ran a “Test Drive a Macintosh” promotion. however it was a useful proof of concept.Lisa.5 million to buy all 39 of the advertising pages in the issue. the first iteration of the soon-ubiquitous WIMP interface was a poorly-drawn picture of a floppy disk. dealers disliked the promotion. Because of the high price. This marketing campaign caused CEO John 23 ."[15] 1984 used an unnamed heroine to represent the coming of the Macintosh (indicated by her white tank top with a Picasso-style picture of Apple’s Macintosh computer on it) as a means of saving humanity from "conformity" (Big Brother). Nineteen Eighty-Four. in which potential buyers with a cr card could take home a Macintosh for 24 hours and return it to a dealer afterwards. however. In fact.[16] These images were an allusion to George Orwell's noted novel. it failed to penetrate the market. It was directed by Ridley Scott." For a special post-election ion of Newsweek in November 1984. the supply of computers was insufficient for demand. which described a dystopian future ruled by a televised "Big Brother.[12] Its debut. While 200.

995 to US$2. infamous for insulting potential customers.[citation needed] Despite initial marketing difficulties. Guy Kawasaki. the Macintosh would become known as the de-facto platform for many industries including cinema. the Macintosh brand was eventually a success for Apple. It came bundled with two applications designed to show off its interface: MacWrite and MacPaint. Although the Mac garnered an immediate. Lotus Software introduced Lotus Jazz after the success of Lotus 1-2-3 for the IBM PC. existing text-mode and command-driven applications had to be redesigned and the programming code rewritten. advertising. It was not successful. Because the machine was entirely designed around the GUI. and resulted in an initial lack of software for the new system. enthusiastic following. and later Apple Fellow. music. While it did briefly license some of its own designs. it was too late for Apple to reclaim its lost market share and the Macintosh clones achieved limited success before being axed after Steve Jobs returned to Apple Computer in 1997.[citation needed] 24 . followed by Microsoft Word in January 1985.[18][19] Two days after the 1984 ad aired. this was a challenging undertaking that many software developers shied away from. Apple did not allow other computer makers to "clone" the Mac until the 1990s. who labeled it a mere "toy".[20] In 1985. This was due to its introduction of desktop publishing (and later computer animation) through Apple's partnership with Adobe Systems which introduced the laser printer and Adobe PageMaker. although it was largely a flop.[18] Macintosh also spawned the concept of Mac evangelism which was pioneered by Apple employee. the Macintosh went on sale.[21] Apple introduced Macintosh Office the same year with the lemmings ad. By then.000 in 2007). it was too radical for some.495 (adjusting for inflation.Sculley to raise the price from US$1. publishing and the arts. Indeed. long after Microsoft dominated the marketplace with its broad licensing program. about US$5. In April 1984 Microsoft's MultiPlan migrated over from MS-DOS.

[22] 25 . While not a commercial success due in part to its high price. Jobs then co-founded the visual effects house. a computer company that built machines with futuristic designs and ran the UNIX-derived NeXTstep operating system. He also went on to found NeXT Inc.1985: Jobs leaves Apple After an internal power struggle the board of directors sided with Sculley and Jobs was asked to resign. Pixar. NeXTSTEP would eventually be developed into Mac OS X.. the NeXT computer would introduce important concepts to the history of the personal computer (including serving as the initial platform for Tim Berners-Lee as he was developing the (World Wide Web).

1985-1997: Sculley. Amelio 26 . Spindler.

Apple issued its first corporate stock dividend on May 11.3% yield until November 21. 1987. Styleware. and Coral Software. including software companies Network Innovations. August 2010 Between March 1988 and January 1989.1985-1997: Sculley. Apple stock split for the first time in a 2:1 split. Apple kept a quarterly dividend with about 0. Spindler. Nashoba Systems. as well as satellite communications company Orion Network Systems. Amelio Macintosh SE Corporate Performance See also: List of mergers and acquisitions by Apple Under leadership of John Sculley.. 1995. Apple undertook five acquisitions. The Apple II family of the 1980s See also: Timeline of Apple II Family 27 . A month later on June 16.

and the Apple II to home users and public schools. And in 1986 Apple introduced the Apple IIgs.Apple now had two separate.[citation needed] Thus. among others.1980s. The original model evolved into the Mac Plus in 1986 and spawned the Mac SE and the Mac II in 1987 and the Mac Classic and Mac LC in 1990. expandable home computer. A few months after introducing the Mac. an affordable. and the Apple Macintosh. incompatible platforms: the Apple II.[citation needed] The Mac family See also: Timeline of Macintosh models At the same time. John Gruber.com address on the nascent Internet. Meanwhile.[24] The early-mid 1990s 28 . Mac-like operating environment. by the mid . Popular products and increasing revenues made this a good time for Apple. Apple released a compact version of the Apple II called the Apple IIc. Apple II computers remained an important part of Apple's business until they were discontinued in the early 1990s. the Mac was becoming a product family of its own. and knowledge workers. a landmark product that established the modern form and ergonomic layout of the laptop. has speculated that this platform incompatibility was the main reason the Macintosh did not share the initial commercial success which was experienced by the Apple II in the late 1970s. the Apple II was now competing with the IBM PC and its clones. Apple attempted its first portable Macs: the failed Macintosh Portable in 1989 and then the more popular PowerBook in 1991. On February 19. and a new energy was focused upon marketing the Macintosh. an Apple II positioned as something of a hybrid product with a mouse-driven. 1987. MacAddict magazine has called 1989 to 1991 the "first golden age" of the Macintosh.com" domain name. Apple registered the "Apple. making it one of the first hundred companies to register a . Apple continued to sell both lines promoting them to different market segments: the Macintosh to colleges. college students.[23] However. the closed platform for professionals.

NeXT on December 10. these new lines were marketed poorly. Apple's retail resellers like Sears and CompUSA often failed to sell or even competently display these Macs. the struggling NeXT company beat out Be Inc.[citation needed] Apple also refused IBM's offer to purchase the company. But by the 1990s. and its NeXTstep operating system. but NeXT technology would become the foundation of the Mac OS X operating system. Centris. 1996. The excess of arbitrary model numbers confused many consumers and hurt Apple's reputation for simplicity. there were too many models.0. As the first step toward the PReP platform. it defined and launched the category and was a forerunner and inspiration of devices such as Palm Pilot and Pocket PC. Compounding matters was the fact while the machines were cheaper than a comparable PC (counting all the things built in which had to be added to the 'bare bones PC') the poor marketing gave the impression that the machines were more expensive. differentiated by very minor graduations in their tech specs. Apple's response to the PC threat was a profusion of new Macintosh lines including Quadra. which would use IBM and Motorola hardware and Apple software. they finally had a comparable GUI thanks to Windows 3. In 1993.In the late 1980s. Though it failed commercially. computers based on the IBM PC had become more popular than all three. Apple's fiercest technological rivals were the Amiga and Atari ST platforms.[citation needed] In 1991.[citation needed] 1997: The Return of Jobs In 1996. and were out-competing Apple. Apple purchased Steve Jobs' company. 29 . and Performa. The ultimate goal was to create a revolutionary new computing platform. but later unsuccessfully sought another offer from IBM. Apple has also produced consumer devices. For one. Apple started the Power Macintosh line in 1994. These processors used a RISC architecture. using IBM's PowerPC processor. Unfortunately.[25] In addition to computers. This would not only bring Steve Jobs back to Apple's management.'s BeOS in its bid to sell its operating system to Apple. an early PDA. Apple released the Newton. Apple partnered with long-time competitor IBM to form the AIM alliance. Parts of Apple's operating system software were rewritten so that most software written for older Macs could run in emulation on the PowerPC series. which differed substantially from the Motorola 680X0 series that were used by all previous Macs. known as PReP.

Gil Amelio was ousted as CEO of Apple by the board of directors after turning the company around from a multibillion loss to a $25 million dollar profit. we like their software. Apple introduced the Apple Store. it's not somebody else's fault. we have to let go of a few things here. 1997.On November 10. We have to let go of this notion that for Apple to win. Included in this was a five-year commitment from Microsoft to release Microsoft Office for Macintosh as well a US$150 million investment in Apple. and stating that he was very excited to be helping Apple return to success. It was also announced that Internet Explorer would be shipped as the default browser on the Macintosh. The Microsoft deal At the 1997 Macworld Expo. the era of setting this up as a competition between Apple and Microsoft is over as far as I'm concerned. So.[citation needed] Jobs stepped in as the interim CEO to begin a critical restructuring of the company's product line.[28] 30 . So I think that is a very important perspective. further explaining Microsoft's plans for the software they were developing for Mac. Apple has to do a really good job. This is about getting Apple healthy. this is about Apple being able to make incredibly great contributions to the industry and to get healthy and prosper again. Microsoft has to lose. it's our fault. We have to embrace a notion that for Apple to win. He would eventually become CEO and has served in that position to the present day. If we want Microsoft Office on the Mac.[26][27] CEO On July 9. because we need all the help we can get. and if we screw up and we don't do a good job. Steve Jobs announced that Apple would be entering into partnership with Microsoft. Steve Jobs said this to the audience at the expo: If we want to move forward and see Apple healthy and prospering again. an online retail store based upon the WebObjects application server the company had acquired in its purchase of NeXT. After this. And if others are going to help us that's great. we better treat the company that puts it out with a little bit of gratitude. The new direct sales outlet was also tied to a new build-to-order manufacturing strategy. 1997. Microsoft chairman Bill Gates appeared at the expo on-screen.

2001: Apple's Renaissance 31 .1998.

the Power Mac G4. which utilized the Motorola-made PowerPC 7400 containing a 128-bit instruction unit known as AltiVec.1998. Apple introduced the Power Mac G4. More recent products include the iBook. and Power Mac G4 While discontinuing Apple's licensing of its operating system to third-party computer manufacturers. In 1999. its flagship processor line. and announced the company's new emphasis on the design and aesthetics of its products. and the AirPort product series. which bought Apple time to restructure.11b standard. The line became a sales smash. one of Jobs's first moves as new acting CEO was to develop the iMac. moving about one million units a year. The original iMac integrated a CRT display and CPU into a streamlined. translucent plastic body. It also helped re-introduce Apple to the media and public. Also that year. 32 . which helped popularize the use of Wireless LAN technology to connect computers to networks. its first consumer-oriented laptop that was also the first Macintosh to support the use of Wireless LAN via the optional AirPort card that was based on the 802. iBook. Apple unveiled the iBook.2001: Apple's Renaissance The original iMac The iMac.

to be located throughout the major U. an operating system based on NeXT's NeXTstep and the FreeBSD kernel. 33 . Mac OS X married the stability. Apple's Carbon API also allowed developers to adapt their Mac OS 9 software to use Mac OS X's features. as well as a response to poor marketing of Apple products at third-party retail outlets. Apple introduced Mac OS X. the new operating system allowed the use of Mac OS 9 applications through the Classic environment. after much speculation. Apple announced the opening of a line of Apple retail stores.S. reliability and security of Unix with the ease of a completely overhauled user interface.Mac OS X Main article: Mac OS X Company headquarters on Infinite Loop in Cupertino In 2001. The stores were designed for two primary purposes: to stem the tide of Apple's declining share of the computer market.[29] Aimed at consumers and professionals alike. computer buying markets. To aid users in transitioning their applications from Mac OS 9. Apple retail stores Main article: Apple Store In May 2001.

2002 .Present: the iTunes-iOS Juggernaut 34 .

Apple's Xserves were soon updated to use the G5 as well. This model dispensed with the base altogether. This new iMac. Apple unveiled a redesigned iMac. Steve Jobs launched the Power Mac G5. based on IBM's G5 processor. In mid-2003. placing the CPU and the rest of the computing hardware behind the flat-panel screen.2002 . the Xserve was unusual for Apple in two ways. although the Alpha was aimed more at servers and workstations and not at the "general public. measuring in at around two inches (around 5 centimeters). far less than the previous #3 and other ranking supercomputers. is the world's thinnest desktop computer. It represented an earnest effort to enter the enterprise computer market and it was also relatively cheaper than similar machines released by its competitors. cheaper than competing systems. They replaced the Power Mac G5 machines as the main building block of Virginia Tech's System X. again. In 2002. This model was discontinued in the summer of 2004. dubbed the iMac G5. 35 . using the G4 processor. Apple also released the Xserve 1U rack mounted server. which at the time garnered the prestigious recognition of the third fastest supercomputer in the world. which is suspended from a streamlined aluminium foot. It cost only US$5.2 million to build. Both 64-bit CPUs were pre-dated by the 64-bit Alpha architecture.Present: the iTunes-iOS Juggernaut In early 2002. Originally featuring two G4 chips. but in fact that title actually goes to the AMD Opteron line (Opteron processors were however marketed more directly to the enterprise for use in rackmount servers and in workstations). in no small part. to Apple's use of Fast ATA drives as opposed to the SCSI hard drives used in traditional rack-mounted servers." The Power Mac G5 was also used by Virginia Tech to build its prototype System X supercomputing cluster.[30] A new iMac based on the G5 processor was unveiled August 31. Apple claims this was the first 64-bit computer sold to the general public. which was ranked in November 2004 as the world's seventh fastest supercomputer. 2004 and was made available in mid-September. Apple later released the Xserve RAID. This was due. a 14 drive RAID which was. The new design had a hemispherical base and a flat panel all-digital display supported by a swiveling neck.

Apple fell from controlling 20% of the total personal computer market to 5% by the end of the decade. California.[citation needed] Initially. Apple opened its first store in Canada in the middle of 2005 at the Yorkdale Shopping Centre in North York. A store in the Bullring shopping centre in Birmingham opened in April 2005. with the release of the iPod Video. the Apple Stores were only opened in the United States. the Shibuya district of Tokyo. Recent additions in the London area include the Brent Cross Apple Store (January 2006) and the Apple Store in Westfield in Shepherd's Bush (September 2008). Apple opened several "mini" stores in October 2004 in attempt to capture markets where demand does not necessarily dictate a full scale store. After creating a sizable financial base to work with. Fukuoka. and the Bluewater shopping centre in Kent opened in July 2005. In 2005. in an effort to court a broader market. Microsoft Office. in Tokyo's Ginza district. and soon created a Macintosh Business Unit. This reversed the earlier trend within Microsoft that resulted in poor Mac versions of their software and has resulted in several award-winning releases. Apple's market share continued to decline. These 36 . reaching 3% by 2004. Another store was opened in Sapporo in 2006. and eventually the iPod touch and iPhone. Toronto. As a result Apple was able to produce new designs so quickly over a short amount of time. Apple opened its first Apple Store abroad.2004. The company was struggling financially under then-CEO Gil Amelio when on August 6. Also. Japan in August 2004. As a result. Each Apple product thus far has been under equally high demand. the company began experimenting with new parts from new suppliers. however. The first of these stores was opened at Stanford Shopping Center in Palo Alto. and Sendai. was a turning point for Apple. Later on in 2005 Apple opened the Meadowhall Store in Sheffield and the Trafford Centre Store in Manchester (UK). Apple's first European store opened in London in November 2004. However. and is currently the largest store. Perhaps more significantly. Microsoft simultaneously announced its continued support for Mac versions of its office suite. personal computers based on Microsoft's Windows operating system began to gain a much larger percentage of new computer users than Apple. Through the 1990s. then the iPod Classic. but in late 2003. Apple opened stores in Nagoya. 1997 Microsoft bought a US$150 million non-voting share of the company as a result of a court settlement with Apple. Ginza was followed by a store in Osaka.

Apple has also developed the Power Mac G5 Quad that uses two of the Dual-Core processors for enhanced workstation power and performance. Apple's wildly successful PowerBook and iBook products relied on Apple's previous generation G4 architecture which were produced by Freescale Semiconductor.[36][37] They were based on the Intel Core Duo platform. In fact. These stores are only one half the square footage of the smallest "normal" store and thus can be placed in several smaller markets. Steve Jobs officially announced that Apple will begin producing Intel-based Macintosh computers beginning in 2006.4 "Tiger" to the general public. a spin off from Motorola.[33][34][35] On January 10. 2006. On April 29. were introduced. This introduction came with 37 . 2005. The Power Mac G5 Quad cores run individually at 2. the first Intel-based machines.[31] The Intel transition Main article: Apple–Intel transition In a keynote address on June 6. 2005.[32] Jobs confirmed rumors that the company had secretly been producing versions of its current operating system Mac OS X for both PowerPC and Intel processors over the past 5 years. As of the week of October 24. Apple's own Darwin.3 GHz. the open source underpinnings of Mac OS X. and that the transition to Intel processor systems would last until the end of 2007.0 GHz or 2. the iMac and MacBook Pro. Apple released Mac OS X v10.5 GHz and all variations have a graphics processor that has 256-bit memory bandwidth. was also available for Intel's x86 architecture. The new Power Mac G5 Dual cores run individually at 2. Engineers at IBM had minimal success in making their PowerPC G5 processor consume less power and run cooler but not enough to run in iBook or PowerBook formats. Rumors of cross-platform compatibility had been spurred by the fact that Mac OS X is based on OPENSTEP. Apple released the Power Mac G5 Dual that features a Dual-Core processor.stores follow in the footsteps of the successful Apple products: iPod mini and Mac mini. an operating system that was available for many platforms. This processor contains two cores in one rather than have two separate processors. 2005.

00 annual subscription price as its . and an internet communicator capable of running a fully functional version of Apple's web browser Safari on the iPhone OS. At the same address. Inc. In January 2007. The iPhone combined Apple's first widescreen iPod with the world's first mobile device boasting visual voicemail. Apple really wasn't just a computer company anymore. As a result of this. a service called iReview that gave internet users a place to read and write reviews of Web sites. The latter two services were eventually canceled because of lack of success. MobileMe. which carries the same US$99. Apple Computer.Mac predecessor. a collection of free web-based tools that included an email account. features the addition of "push" services to instantly and automatically send emails. Some controversy surrounded the release of MobileMe services to users resulting in expected downtime and a significantly longer release window. contacts and calendar updates directly to user's iPhone devices. Apple introduced its iTools service. and a tool called KidSafe which promised to prevent children from browsing inappropriate portions of the web. Jobs explained that with their current product mix consisting of the iPod and Apple TV as well as their Macintosh brand. Apple and "i" Web services In 2000. while iCards and email became integrated into Apple's . coinciding with the iPhone 3G release. a year ahead of the originally quoted schedule. Apple extended the subscriptions existing MobileMe subscribers by an additional 30 days free-of-charge.[38] 38 . shortened its name to simply Apple Inc. internet greeting cards called iCards. Jobs revealed a product that would revolutionize an industry in which Apple had never previously competed: the Apple iPhone. In his Keynote address.Mac subscription based service introduced in 2002 and discontinued in mid-2008 to make way for the release of the new MobileMe service.the news that Apple will complete the transition to Intel processors on all hardware by the end of 2006.

000 songs.iPod and iTunes Store Main articles: iPod and iTunes Store A 2nd generation iPod iPod mini with the user interface set to German. On October 23. It was quite large when compared to the 20-30 songs of Flash-based players of the time. easy to use interface. Apple introduced the iPod. 2001. Its signature features included an LCD. 39 . and a large capacity drive (initially 5 GB) which was enough to hold approximately 1. Apple has since revised its iPod line several times. a portable digital music player.

they can burn CDs including the purchased songs (although a particular playlist containing purchased music may only be burned seven times). which contrasts with other commercial subscription music services where users are required to pay a regular fee to be able to access musical content (but are able to access a larger volume of music during the subscription). 40 . Initially. In early 2005. its smaller size and multiple colours made it popular with consumers on debut with many stores having "sold out" their initial inventories of the devices. more compact design. of course. On October 26. which is about the size of a pack of gum. the 4 GB iPod Mini. In January 2004 Apple released a more compact version of their iPod player. and easier connectivity with car or home stereo systems.introducing a slimmer. allowing Windows users the ability to access the store as well. The iTunes Music Store was launched in 2003 with 2 million downloads in only 16 days. AAC compatibility. For example. Windows compatibility (previous iPods only interacted with Macintosh computers). Users have more flexibility than on previous on-line music services. download songs onto an iPod. storage sizes of up to 160 GB. 2005. Steve Jobs said the company's share of the entire portable music device market stood at 76%. and.99 per album). Unlike other fee-based music services. all of which were purchased only on Macintosh computers. 2004. Apple has since released a version of iTunes for Windows. Apple unveiled a smaller iPod : the iPod Shuffle. now known as iTunes Store.99 per song (or US$9. the successful iTunes Music Store. Speaking to software developers on June 6. share and play the songs on up to five computers. the music store was only available in the United States due to licensing restrictions. the iTunes Store charges a flat US$0. but there were plans to release the store to many other countries in the future.[citation needed] Apple has revolutionized the computer and music industry by signing the five major record companies to join its new music download service. The iTunes Music Store commercial model is one-time purchase. Although the Mini held fewer songs than the other iPod models at that time. Apple released a color version of their award winning iPod which can not only play music but also show photos.

2005. 2005. A European Union version opened October 2004 (actually. not initially available in the Republic of Ireland due to the intransigence of the Irish Recorded Music Association (IRMA) but eventually opened Thursday January 6. merging the iPod and iPod Photo. on sales of US$3. Massachusetts. 2005. On May 10. The year before in the same quarter. 2004.24 billion. the iTunes Music Store sold its 500 millionth song.91 billion. songs were selling at an accelerating annualized rate of more than 500 million. Apple earned just US$46 million. this one based on flash memory instead of using a miniaturized hard drive. by U2. 41 . Norway. On January 11. [40] On July 17. the iTunes Music Store was expanded to Denmark. the iPod was given a color screen. proved so popular that it sold out almost immediately. a Eurozone version. Apple earned US$290 million. The download was The Complete U2. France. In July 2005. or 34¢ a share. On December 16.[41] In the quarter ending March 26. The iPod is giving an enormous lift to Apple's financial results. 2005. on revenue of US$1.[citation needed] At that point. The iPod Shuffle. an even smaller version of the iPod was announced.[39] Just under three months later Apple sold its 300 millionth song on March 2. or 6¢ a share. like its predecessors. Sweden.) A version for Canada opened in December 2004. 2005. and Switzerland. and Germany.In June 2004 Apple opened their iTunes Music Store in the United Kingdom.[citation needed] This is despite the fact that critics had gawked at the lack of LCD screen in the Shuffle. a norm in almost all current flash memory based mp3 players. causing delays of up to four weeks in obtaining one within a single week of its debut. Apple sold its 200 millionth song on the iTunes Music Store to Ryan Alekman from Belchertown. 2005.

69 each. and August. This 12-month iteration cycle has continued with the iPhone4 model arriving in similar fashion in 2010. that loophole was quickly closed. Apple announced the iPhone 3GS on June 8. 2009. albums at (generally) A$16. the iTunes Store went live in Australia. July. 2006. the Nano had sold 1 million units in the first 17 days. On February 23. 2006 when it began offering video content (TV shows and movies) for sale. While some consumers were put off by the high price tag (US$199 for 2 GB)..[42] The iTunes Music Store changed its name to iTunes Store on September 12. Canada and major European countries on June 19.99 and music videos and Pixar short films at A$3. starting with the U. However. Apple introduced the first version of the iPhone being publicly available on June 29 that same year in selected countries/markets. It was another 12 months before the iPhone 3G became available on July 11. Briefly.S. In early 2010. A month later.39. and easily scratchable surface. on October 12.[43] iOS Evolution .2 billion of which were sold in 2006. 2005.3 million movies have been downloaded. 2008.iPhone & iPad Main articles: iPhone. 2005 Apple introduced the new 5th generation iPod with video playback capabilities. along with plans to release it later in June. The device is also 40% thinner than a 4th generation iPod and has a larger screen. On October 25. and iOS (Apple) First announced on January 9. 2007. Since iTunes inception it has sold over 2 billion songs.On September 7. January 2011 has also seen a Verizon model being announced with expected availability in February 2011. Since downloadable TV and movie content was added 50 million TV episodes and 1. 1. the iTunes Music Store sold its 1 billionth song. 2005. Apple celebrated the 10 billionth song downloaded from the iTunes Music Store. people in New Zealand were able to buy music off the Australian store. 42 . with songs selling for A$1. iPad. Apple replaced the iPod Mini line with the new iPod Nano.

a big advance in technology. In summer 2011. 43 . Now 2 iPod types are touch screen (Jan. twice the screen size of an iPhone without the phone capabilities.The Macs that are available now (Jan. The iPad fits into Apple product line snuggly. Apple now has a wireless touch pad.6). the iPod nano and the iPod touch. Apple will have Mac OS X lion (10. a wireless mouse. mac book air. but 4 times better! And now Apple has gone wireless. The Apple iPad was announced on January 27. 2010 with retail availability commencing in April and systematically growing in markets throughout 2010. the Apple iPhone will be on Verizon Wireless and AT&T. mac book pro and the mac mini. the mac pro. While there were initial fears of product cannibalisation the FY2010 financial results released in Jan 2011 included commentary of a reverse 'halo' effect. the mac book.[44] Considering that both product ranges have only been in existence for a combined 4 years. On February 10. the fact that over 70 million iPhones[45] and earning the company billions is a remarkable success. where iPad sales were leading to increased sales of iMacs and MacBooks. a wireless keyboard. Apple now rates highly as a mobile phone manufacturer and continues to break new ground with the iPad. and even a wireless external hard drive. as an iOS device. The latest version or mac os x is Snow leopard (10.7). 2011). 2011. 2011) are the 27 iMac. Apple TV now has a 2nd generation (Jan 2011) 4 times smaller.

Financial history 44 .

977 9.983 5. Apple created Braeburn Capital on April 6.284 5.087 7.363 5.661 4.918 1. 2006 to manage its assets.247 unknown 61 77 64 61 154 218 400 454 475 310 530 87 310 424 -816 -1.833 7.071 5.Financial history As cash reserves increased significantly in 2006.045 309 601 786 -25 65 --74% 69% 54% 27% -1% 40% 53% 30% 5% 14% 12% -11% 46% 20% -11% -28% -16% 3% 30% -33% -2% --10% 8% 4% 3% 8% 8% 10% 9% 9% 4% 7% 1% 3% 4% -8% -15% 5% 10% 10% 0% 1% 45 .310 7.189 11.902 2.134 7.062 9.[46] Financial period Net sales (Mil USD) Net profits (Mil USD) Revenue growth Return on net sales FY 1981 FY 1982 FY 1983 FY 1984 FY 1985 FY 1986 FY 1987 FY 1988 FY 1989 FY 1990 FY 1991 FY 1992 FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 FY 1998 FY 1999 FY 2000 FY 2001 FY 2002 335 583 983 1.081 5.941 6.558 6.516 1.

1980.235 14. 46 . Apple does not currently pay dividends on its common stock.328 1.315 24. and have been doing so for several years.119 8.225 57 266 1. with an initial public offering at US$22.491 42.00 [48] per share.578 37. 1987 to December 15. trades on the NASDAQ stock market.013 18% 33% 68% 39% 27% 53% 14% 52% 1% 3% 10% 10% 14% 16% 19% 21% 'AAPL' is the stock symbol under which Apple Inc. 1995.989 3.931 19.207 8.279 13.FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009[47] FY 2010 Stock 6.495 6. Apple originally went public in on December 12. Gene Munster and Michael Olson of Piper Jaffray are the main analysts who track Apple stock.905 65. Piper Jaffray estimate future stock and revenue of Apple annually. Apple paid dividends from June 15.

Spindler. and Power Mac G4 3.2 The Microsoft deal  3 1998.1 CEO 2.2 The Apple I 1.2 Mac OS X 3.Contents  1 1969-1984: Jobs and Wozniak o o o o o o o 1.7 The release of the Macintosh and the 1984 commercial  1.4 The early-mid 1990s 2.5 1997: The Return of Jobs   2.1 The iMac.1 Pre-foundation 1.3 The Apple II 1.5.1 Corporate Performance 2.6 Xerox PARC and the Lisa 1.1 1985: Jobs leaves Apple  2 1985-1997: Sculley.5.5 The Apple IPO 1.2 The Apple II family of the 1980s 2. iBook.4 The Apple III 1.3 iPod and iTunes Store 47 .3 Apple retail stores 3.2001: Apple's Renaissance o o o o 3.2 Apple and "i" Web services 4.4 The iPod  4 2002 .1 The Intel transition 4.3 The Mac family 2. Amelio o o o o o 2.7.Present: the iTunes-iOS Juggernaut o o o 4.

4 iOS Evolution .iPhone & iPad 5 Financial history o 5.o  4.1 Stock 48 .