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Apple Inc. The company also has a chain of retail stores known as Apple Stores. Apple's core product lines are the iPhone smartphone , iPad tablet computer , and Macintosh computer line. For more than three decades, Apple Computer was predominantly a manufacturer of personal computers, including the Apple II , Macintosh , and Power Mac lines, but it faced rocky sales and low market share during the s. Jobs, who had been ousted from the company in , returned to Apple in after his company NeXT was bought by Apple.
With the introduction of the successful iPod music player in and iTunes Music Store in , Apple established itself as a leader in the consumer electronics and media sales industries, leading it to drop "Computer" from the company's name in The company is now also known for its iOS range of smart phone, media player, and tablet computer products that began with the iPhone, followed by the iPod Touch and then iPad.
Steve Jobs and Steve Wozniak , also referred to collectively as "the two Steves", first met in mid, when their mutual friend Bill Fernandez introduced then year-old Wozniak to year-old Jobs. Wozniak designed a video terminal that he could use to log on to the minicomputers at Call Computer.
Alex Kamradt commissioned the design and sold a small number of them through his firm. Aside from their interest in up-to-date technology, the impetus for the two Steves seems to have had another source.
In his essay From Satori to Silicon Valley published , cultural historian Theodore Roszak made the point that Apple Computer emerged from within the West Coast counterculture and the need to produce print-outs, letter labels, and databases.
Roszak offers a bit of background on the development of the two Steves' prototype models. In , the two Steves started attending meetings of the Homebrew Computer Club. Wozniak preferred the , but both were out of his price range. So he watched, and learned, and designed computers on paper, waiting for the day he could afford a CPU. The was designed by the same people who designed the , as many in Silicon Valley left employers to form their own companies.
Wozniak's earlier paper-computer needed only minor changes to run on the new chip. By March 1, , Wozniak completed the machine and took it to a Homebrew Computer Club meeting to show it off. The local credit manager asked Jobs how he was going to pay for the parts and he replied, "I have this purchase order from the Byte Shop chain of computer stores for 50 of my computers and the payment terms are COD.
If you give me the parts on net day terms I can build and deliver the computers in that time frame, collect my money from Terrell at the Byte Shop and pay you. Amazed at the tenacity of Jobs, Terrell assured the credit 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.
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. Terrell was surprised when Jobs delivered him a batch of assembled circuit boards, as he had expected complete computers with a case, monitor and keyboard.
The Apple I computer had a few notable features. One was the use of a TV as the display system, whereas many machines had no display at all. This was not like the displays of later machines, however; the text was displayed at 60 characters per second. However, this was still faster than the teleprinters used on contemporary machines of that era. Although the machine was fairly simple, it was nevertheless a masterpiece of design, using far fewer parts than anything in its class, and quickly earning Wozniak a reputation as a master designer.
Encouraged by the success of the Apple I, Jobs started looking for investments to further expand the business, [36] but banks were reluctant to lend him money; the idea of a computer for ordinary people seemed absurd at the time. In February , Markkula recruited Michael Scott from National Semiconductor to serve as the first president and CEO of Apple Computer, as the two Steves were both insufficiently experienced and he was not interested in taking that position himself.
Almost as soon as Apple had started selling its first computers, Wozniak moved on from the Apple I and began designing a greatly improved computer: the Apple II. In the May issue of Byte , Wozniak said of the Apple II design, "To me, a personal computer should be small, reliable, convenient to use, and inexpensive. Now not only useful for simple text display, the Apple II included graphics and, eventually, color.
During the development of the Apple II, Jobs pressed for a well-designed plastic case and built-in keyboard, with the idea that the machine should be fully packaged and ready to run out of the box. Jobs wanted the Apple II case to be "simple and elegant", and hired an industrial designer named Jerry Manock to produce such a case design. In , the Apple II was chosen to be the desktop platform for the first " killer application " of the business world: VisiCalc , a spreadsheet.
The Apple II series went on to sell about six million units in total before it was discontinued in While the Apple II was already established as a successful business-ready platform because of VisiCalc, Apple management was not content.
The Apple III was designed to take on the business environment in an attempt to compete with IBM in the business and corporate computing market. The Apple III was a relatively conservative design for computers of the era. However, Jobs did not want the computer to have a fan; rather, he wanted the heat generated by the electronics to be dissipated through the chassis of the machine, forgoing the cooling fan.
However, the physical design of the case was not sufficient to cool the components inside it. With no fan, the Apple III was prone to overheating. This caused the integrated circuit chips to disconnect from the motherboard.
Customers who contacted Apple customer service were told to "raise the computers six inches in the air, and then let go", which would cause the ICs to fall back into place. Thousands of Apple III computers were recalled. A new model was introduced in to try to rectify the problems, but the damage was already done. In the July issue of Kilobaud Microcomputing , publisher Wayne Green stated that "the best consumer ads I've seen have been those by Apple. They are attention-getting, and they must be prompting sale.
Apple Computer, the fast growing Californian manufacturer of small computers for the consumer, business and educational markets, is planning to go public later this year. Founded about five years ago as a small workshop business, it has become the second largest manufacturer of small computers, after the Radio Shack division of the Tandy company. In January , Apple held its first shareholders meeting as a public company in the Flint Center , a large auditorium at nearby De Anza College which is often used for symphony concerts to handle the larger numbers of shareholders post-IPO.
The business of the meeting had been planned so that the voting could be staged in 15 minutes or less. In most cases, voting proxies are collected by mail and counted days or months before a meeting. In this case, after the IPO, many shares were in new hands.
Steve Jobs started his prepared speech, but after being interrupted by voting several times, he dropped his prepared speech and delivered a long, emotionally charged talk about betrayal, lack of respect, and related topics. While IBM began with one microcomputer, little available hardware or software, and a couple of hundred dealers, Apple had five times as many dealers in the US and an established international distribution network. The Apple II had an installed base of more than , customers, and hundreds of independent developers offered software and peripherals; at least ten databases and ten word processors were available, while the PC had no databases and one word processor.
The company's customers gained a reputation for devotion and loyalty. BYTE in stated that [80]. There are two kinds of people in the world: people who say Apple isn't just a company, it's a cause; and people who say Apple isn't a cause, it's just a company.
Both groups are right. Nature has suspended the principle of noncontradiction where Apple is concerned. Apple is more than just a company because its founding has some of the qualities of myth Apple is two guys in a garage undertaking the mission of bringing computing power, once reserved for big corporations, to ordinary individuals with ordinary budgets.
The company's growth from two guys to a billion-dollar corporation exemplifies the American Dream. The magazine noted that the loyalty was not entirely positive for Apple; customers were willing to overlook real flaws in its products, even while comparing the company to a higher standard than for competitors. It took them a full year to realize what had happened".
The II still sold well, [78] with Apple being the leading computer manufacturer in the United States where 7 million units were sold between and Apple Computer's business division was focused on the Apple III, another iteration of the text-based computer. Simultaneously the Lisa group worked on a new machine that would feature a completely different interface and introduce the words mouse , icon , and desktop into the lexicon of the computing public.
The first iteration of Apple's WIMP interface was a floppy disk where files could be spatially moved around. After months of usability testing, Apple designed the Lisa interface of windows and icons. Because of the high price, Lisa failed to penetrate the business market.
By computer dealers saw Apple as the only clear alternative to IBM's influence; [93] some even promoted its products to reduce dependence on the PC. And you'll see why won't be like On the same day, an emotional Jobs introduced the computer to a wildly enthusiastic audience at Apple's annual shareholders meeting held in the Flint Auditorium; [] [] Macintosh engineer Andy Hertzfeld described the scene as "pandemonium".
The Macintosh was too radical for some, who labeled it a mere "toy". Because the machine was entirely designed around the GUI, existing text-mode and command-driven applications had to be redesigned and the programming code rewritten; this was a challenging undertaking that many software developers shied away from, and resulted in an initial lack of software for the new system. It was not successful. While , people participated, dealers disliked the promotion, the supply of computers was insufficient for demand, and many were returned in such a bad shape that they could no longer be sold.
The former favored open architecture computers like the Apple II, sold to education, small business, and home markets less vulnerable to IBM. This frustrated Wozniak, who left active employment at Apple early that same year to pursue other ventures, stating that the company had "been going in the wrong direction for the last five years" and sold most of his stock.
In April , Sculley decided to remove Jobs as the general manager of the Macintosh division, and gained unanimous support from the Apple board of directors. Jobs, while taking the position of Chairman of the firm, had no influence over Apple's direction and subsequently resigned from Apple in September and took a number of capable Apple employees with him to found NeXT Inc. NeXT Inc.
While not a commercial success, due in part to its high price, 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.
Sculley reorganized the company, unifying sales and marketing in one division and product operations and development in another. 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. Indeed, the Macintosh would become known as the de facto platform for many industries including cinema, music, advertising, publishing, and the arts.
Under leadership of John Sculley , Apple issued its first corporate stock dividend on May 11, A month later on June 16, Apple stock split for the first time in a split. Apple kept a quarterly dividend with about 0. Apple continued to sell both lines of its computers, the Apple II and the Macintosh.
Even with the release of the first Macintosh, Apple II computers remained the main source of income for Apple for years. At the same time, the Mac was becoming a product family of its own. Meanwhile, Apple attempted its first portable Macs: the failed Macintosh Portable in and then the more popular PowerBook in , a landmark product that established the modern form and ergonomic layout of the laptop.
Popular products and increasing revenues made this a good time for Apple.
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