History of Apple Inc.

For more general information about the company, see Apple Inc.
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Current Apple logo introduced August 27, 1999 and remains in use today.
Apple Inc., formerly Apple Computer, Inc., is a multinational corporation that creates
consumer electronics, personal computers, servers, and computer software, and is a
digital distributor of media content. The company also has a chain of retail stores known
as Apple Stores. Apple's core product lines are the iPhone smart phone, iPad tablet
computer, iPod portable media players, and Macintosh computer line. Founders Steve
Jobs and Steve Wozniak created Apple Computer on April 1, 1976,[1] and incorporated
the company on January 3, 1977,[2] in Cupertino, California.
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 1990s. Jobs, who had been ousted
from the company in 1985, returned to Apple in 1996 after his company NeXT was
bought by Apple.[3] The following year he became the company's interim CEO,[4]
which later became permanent.[5] Jobs subsequently instilled a new corporate

philosophy of recognizable products and simple design, starting with the original iMac
in 1998.
With the introduction of the successful iPod music player in 2001 and iTunes Music
Store in 2003, 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 2007. 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. As of 30 June 2015, Apple was the largest publicly traded corporation in the world
by market capitalization,[6] with an estimated value of US$530 billion as of February
2016. Apple's worldwide annual revenue in 2010 totaled US$65 billion, growing to
US$127.8 billion in 2011[7] and $156 billion in 2012.[8]
Contents
[hide]

1 19691984: Jobs and Wozniak

1.1 Pre-foundation

1.2 Apple II

1.3 Apple III

1.4 Apple IPO

1.5 The IBM PC

1.6 Xerox PARC and the Lisa

1.7 Macintosh and the "1984" commercial

1.7.1 1985: Jobs leaves Apple

2 19851997: Sculley, Spindler, Amelio

2.1 Corporate performance

2.2 The Mac family

2.3 Early-mid-1990s

3 19972001: Apple's comeback

3.1 Return of Steve Jobs

3.2 Microsoft deal

3.3 iMac, iBook, and Power Mac G4

3.4 Mac OS X

3.5 Retail stores

4 20012007: iPods, iTunes Store, Intel transition

4.1 iPod

4.2 Moving on from colored plastics and the PowerPC G3

4.3 Retail store expansion

4.4 Apple and "i" Web services

4.5 iTunes Store

4.6 Intel transition

5 20072011: Apple Inc., iPhone, iOS, iPad

5.1 iOS evolution: iPhone and iPad

5.2 Resurgence compared to Microsoft

6 2011present: Restructuring and Apple Watch

7 Financial history

7.1 Stock

8 Timeline of Apple Inc. products

9 References

10 Further reading

11 External links

19691984: Jobs and Wozniak[edit]

Pre-foundation[edit]
Garage of Steve Jobs' parents' home in Los Altos, California
Steve Jobs and Steve Wozniak had withdrawn from Reed College and UC Berkeley,
respectively by 1975. 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 1986), 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, and databases. Roszak
offers a bit of background on the development of the two Stevess prototype models.
In 1976, Wozniak started attending meetings of the Homebrew Computer Club. New
microcomputers such as the Altair 8800 and the IMSAI inspired him to build a
microprocessor into his video terminal and have a complete computer.
At the time the only microcomputer CPUs generally available were the $179 Intel 8080
($789.00 in present-day terms[9]), and the $170 Motorola 6800 ($749.00 in present-day
terms[9]). Wozniak preferred the 6800, 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.
When MOS Technology released its $20 ($83.00 in present-day terms[9]) 6502 chip in
1976, Wozniak wrote a version of BASIC for it, then began to design a computer for it
to run on. The 6502 was designed by the same people who designed the 6800, as many
in Silicon Valley left employers to form their own companies. Wozniak's earlier 6800
paper-computer needed only minor changes to run on the new chip.
Wozniak completed the machine and took it to Homebrew Computer Club meetings to
show it off. At the meeting, Wozniak met his old friend Jobs, who was interested in the
commercial potential of the small hobby machines.
The Apple I was sold as an assembled circuit board and lacked basic features such as a
keyboard, monitor, and case. The owner of this unit added a keyboard and a wooden
case.
The very first Apple Computer logo, drawn by Ronald Wayne, depicts Isaac Newton
under an apple tree.
Created by Rob Janoff in 1977, the Apple logo with the rainbow scheme was used from
April of that year[10] until August 26, 1999. Steve Jobs has asserted the apple logo was
inspired by the story of his childhood.
Steve Jobs and Steve Wozniak had been friends for some time, having met in 1971,
when their mutual friend, Bill Fernandez, introduced 21-year-old Wozniak to 16-yearold Jobs. They began their partnership when Wozniak, a talented, self-educated
electronics engineer, began constructing boxes which enabled one to make longdistance phone calls at no cost, and sold several hundred models.[11] Later, Jobs
managed to interest Wozniak in assembling a computer machine and selling it.
Jobs approached a local computer store, The Byte Shop, who said they would be
interested in the machine, but only if it came fully assembled. The owner, Paul Terrell,
went further, saying he would order 50 of the machines and pay US $500 ($2.08
thousand in present-day terms[9]) each on delivery.[12] Jobs then took the purchase
order that he had been given from the Byte Shop to Cramer Electronics, a national
electronic parts distributor, and ordered the components he needed to assemble the
Apple I Computer. 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 a net 30-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."[13][14]
The credit manager called Paul Terrell who was attending an IEEE computer conference
at Asilomar in Pacific Grove and verified the validity of the purchase order. 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 and have a
tidy profit left over for their celebration and next order. Steve Jobs had found a way to
finance his soon-to-be multimillion-dollar company without giving away one share of
stock or ownership.
The machine had only 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; text was displayed at 60 characters per second. However, this
was still faster than the teleprinters used on contemporary machines of that era. The
Apple I also included bootstrap code on ROM, which made it easier to start up. Finally,
at the insistence of Paul Terrell, Wozniak also designed a cassette interface for loading
and saving programs, at the then-rapid pace of 1200 bit/s. 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.
Joined by another friend, Ronald Wayne, the three started to build the machines. Using a
variety of methods, including borrowing space from friends and family, selling various
prized items (like calculators and a VW bus) and scrounging, Jobs managed to secure
the parts needed while Wozniak and Wayne assembled them. But the owner of the Byte
Shop was expecting complete computers, not just printed circuit boards. The boards still
being a product for the customers Terrell still paid them.[15] Eventually 200 of the
Apple I's were built.
Apple II[edit]
Main article: Apple II series
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, but with
the income from the sales he was able to start construction of a greatly improved

machine, the Apple II; it was presented to the public at the first West Coast Computer
Faire on April 16 and 17, 1977. On the first day of exhibition, Jobs introduced Apple II
to a Japanese chemist named Toshio Mizushima who became the first authorized Apple
dealer in Japan.
The main difference internally was a completely redesigned TV interface, which held
the display in memory. Now not only useful for simple text display, the Apple II
included graphics, and, eventually, color. Jobs meanwhile pressed for a much improved
case and keyboard, with the idea that the machine should be complete and ready to run
out of the box. This was almost the case for the Apple I machines sold to The Byte
Shop, but one still needed to plug various parts together and type in the code to run
BASIC.
Building such a machine was going to be financially burdensome. Jobs started looking
for cash, but Wayne was somewhat gun-shy due to a failed venture four years earlier,
and eventually dropped out of the company. Banks were reluctant to lend Jobs money;
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$250,000, and the three formed
Apple Computer on April 1, 1976.[1] The name Apple was chosen because the company
to beat in the technology industry at the time was Atari, and Apple Computer came
before Atari alphabetically and thus also in the phone book. Another reason was that
Jobs had happy memories of working on an Oregon apple farm one summer.[16]
With both cash and a new case design in hand thanks to designer Jerry Manock, the
Apple II was released in 1977 and was one of the three "1977 Trinity" computers
generally credited with creating the home computer market (the other two being the
Commodore PET and the Tandy Corporation TRS-80).[17] Millions were sold well into
the 1980s. A number of different models of the Apple II series were built, including the
Apple IIe and Apple IIGS, which continued in public use for nearly two decades
thereafter.
Apple III[edit]
Main article: Apple III
Apple III
While the Apple II was already established as a successful business-ready platform
because of Visicalc, Apple was not content. The Apple III was designed to take on the
business environment. The Apple III was released on May 19, 1980.

The Apple III was a relatively conservative design for computers of the era. However,
Steve 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.
Unfortunately, the physical design of the case was not sufficient to cool the components
inside it. By removing the fan from the design, 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 and, although a new model was
introduced in 1983 to rectify the problems, the damage was already done.
Apple IPO[edit]
In the July 1980 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."[18] In August, the Financial Times reported that
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. [It]
is the largest private manufacturer in the U.S. of small computers. 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.[19]
On December 12, 1980, Apple launched the Initial Public Offering of its stock to the
investing public. When Apple went public, it generated more capital than any IPO since
Ford Motor Company in 1956 and instantly created more millionaires (about 300) than
any company in history.[20] Several venture capitalists cashed out, reaping billions in
long-term capital gains.
In January 1981, 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.[citation needed]

The IBM PC[edit]

By August 1981 Apple was among the three largest microcomputer companies, perhaps
having replaced Radio Shack as the leader.[21] IBM entered the personal computer
market that month with the IBM PC,[22] but Apple had many advantages. 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
250,000 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.[23]
The Apple III was an example, however, of the company's reputation among dealers that
one described as "Apple arrogance".[24][25] After examining a PC and finding it
unimpressive, Apple confidently purchased a full-page advertisement in The Wall Street
Journal with the headline "Welcome, IBM. Seriously". Microsoft head Bill Gates was at
Apple headquarters the day of IBM's announcement and later said "They didn't seem to
care. It took them a full year to realize what had happened".[22] By 1983 the PC
surpassed the Apple II as the best-selling personal computer.[26] By 1984 IBM had $4
billion in annual PC revenue, more than twice that of Apple and as much as the sales of
it and the next three companies combined.[27] Most Apple II sales had been to
companies,[28] but a Fortune survey found that 56% of American companies with
personal computers used IBM PCs, compared to 16% for Apple.[29] Small businesses,
schools, and some homes became the II's primary market.[28]
Xerox PARC and the Lisa[edit]
Main article: Apple Lisa
Lisa
Apple Computers 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. In return for the right to buy
US$1,000,000 of pre-IPO stock, Xerox granted Apple Computer three days access to
the PARC facilities. After visiting PARC, they came away with new ideas that would
complete the foundation for Apple Computer's first GUI computer, the Apple Lisa.[30]
[31][32][33]

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.
The Lisa was introduced in 1983 at a cost of US $9,995 ($23.8 thousand in present-day
terms[9]). Because of the high price, Lisa failed to penetrate the business market.
Macintosh and the "1984" commercial[edit]
Main article: Macintosh
The Macintosh 128k was announced to the press in October 1983, followed by an 18page brochure included with various magazines in December.[34] Its debut, however,
was announced by a single national broadcast of the now famous US$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,[35] and is now considered a
"watershed event"[36] and a "masterpiece."[37] 1984 used an unnamed heroine to
represent the coming of the Macintosh (indicated by her white tank top with a Picassostyle picture of Apples Macintosh computer on it) as a means of saving humanity from
"conformity" (Big Brother).[38] These images were an allusion to George Orwell's
noted novel, Nineteen Eighty-Four, which described a dystopian future ruled by a
televised "Big Brother."
For a special post-election edition of Newsweek in November 1984, Apple spent more
than US$2.5 million to buy all 39 of the advertising pages in the issue.[39] Apple also
ran a Test Drive a Macintosh promotion, in which potential buyers with a credit card
could take home a Macintosh for 24 hours and return it to a dealer afterwards. While
200,000 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. This marketing campaign caused CEO John Sculley to raise the
price from US$1,995 to US$2,495 ($5.69 thousand in present-day terms[9]).[40][41]
Two days after the 1984 ad aired, the Macintosh went on sale. It came bundled with two
applications designed to show off its interface: MacWrite and MacPaint. Although the
Mac garnered an immediate, enthusiastic following, it 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. In April 1984 Microsoft's MultiPlan migrated over from MS-DOS, followed by

Microsoft Word in January 1985.[42] In 1985, Lotus Software introduced Lotus Jazz
after the success of Lotus 1-2-3 for the IBM PC, although it was largely a flop.[43]
Apple introduced Macintosh Office the same year with the lemmings ad, infamous for
insulting potential customers. It was not successful.[40]
Macintosh also spawned the concept of Mac evangelism which was pioneered by Apple
employee, and later Apple Fellow, Guy Kawasaki.[citation needed]
Despite initial marketing difficulties, the Macintosh brand was eventually a success for
Apple. 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.
1985: Jobs leaves Apple[edit]
Sculley and Jobs' visions for the company greatly differed. The former favored open
architecture computers like the Apple II, sold to education, small business, and home
markets less vulnerable to IBM. Jobs wanted the company to focus on the closed
architecture Macintosh as a business alternative to the IBM PC. President and CEO
Sculley had little control over Chairman of the Board Jobs' Macintosh division; it and
the Apple II division operated like separate companies, duplicating services.[44]
Although its products provided 85% of Apple's sales in early 1985, the company's
January 1985 annual meeting did not mention the Apple II division or employees. Many
left, including Wozniak, who stated that the company had "been going in the wrong
direction for the last five years" and sold most of his stock.[45]
The Macintosh's failure to defeat the PC strengthened Sculley's position in the company.
In June 1985, the board of directors sided with Sculley and Jobs was stripped of all
duties. Jobs, while taking the position of Chairman of the firm, had no influence over
Apple's direction and subsequently resigned. Sculley reorganized the company, unifying
sales and marketing in one division and product operations and development in another.
[46][44] In a show of defiance at being set aside by Apple Computer, Jobs sold all but
one of his 6.5 million shares in the company for $70 million. Jobs then acquired the
visual effects house, Pixar for $5M ($10.8 million in present-day terms[9]). He also
went on to found NeXT Inc., a computer company that built machines with futuristic
designs and ran the UNIX-derived NeXTstep operating system. NeXTSTEP would
eventually be developed into Mac OS X. 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).[47]
19851997: Sculley, Spindler, Amelio[edit]
Macintosh SE
Corporate performance[edit]
See also: List of mergers and acquisitions by Apple
Under leadership of John Sculley, Apple issued its first corporate stock dividend on May
11, 1987. A month later on June 16, Apple stock split for the first time in a 2:1 split.
Apple kept a quarterly dividend with about 0.3% yield until November 21, 1995.
[citation needed] Between March 1988 and January 1989, Apple undertook five
acquisitions, including software companies Network Innovations,[48] Styleware,[49]
Nashoba Systems,[50] and Coral Software,[51] as well as satellite communications
company Orion Network Systems.[52]
Apple continued to sell both lines of its computers, the Apple II and the Macintosh. A
few months after introducing the Mac, Apple released a compact version of the Apple II
called the Apple IIc. And in 1986 Apple introduced the Apple IIgs, an Apple II
positioned as something of a hybrid product with a mouse-driven, Mac-like operating
environment. Even with the release of the first Macintosh, Apple II computers remained
the main source of income for Apple for years.[53]
The Mac family[edit]
See also: Timeline of Macintosh models
At the same time, the Mac was becoming a product family of its own. 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. Meanwhile, Apple attempted its first
portable Macs: the failed Macintosh Portable in 1989 and then the more popular
PowerBook in 1991, 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. MacAddict magazine has called 1989 to 1991 the "first golden
age" of the Macintosh.
On February 19, 1987, Apple registered the "Apple.com" domain name, making it one
of the first hundred companies to register a .com address on the nascent Internet.[54]
Early-mid-1990s[edit]

In the late 1980s, Apple's fiercest technological rivals were the Amiga and Atari ST
platforms. But computers based on the IBM PC were far more popular than all three,
and by the 1990s, they finally had a comparable GUI thanks to Windows 3.0, and were
out-competing Apple.
Apple's response to the PC threat was a profusion of new Macintosh lines including
Quadra, Centris, and Performa. Unfortunately, these new lines were marketed poorly by
what was now "arguably one of the worst-managed companies in the industry".[55] For
one, there were too many models, differentiated by very minor graduations in their tech
specs. The excess of arbitrary model numbers confused many consumers and hurt
Apple's reputation for simplicity. Apple's retail resellers like Sears and CompUSA often
failed to sell or even competently display these Macs. Compounding matters was the
fact that, although the machines were cheaper than a comparable PC (when taken into
account all the components built-in which had to be added to the 'bare bones PC'), the
poor marketing gave the impression that the machines were more expensive.[citation
needed] Inventory grew as Apple consistently underestimated demand for popular
models and overestimated demand for others.[55]
In 1991, Apple partnered with long-time competitor IBM and Motorola to form the AIM
alliance. The ultimate goal was to create a revolutionary new computing platform,
known as PReP, which would use IBM and Motorola hardware and Apple software. As
the first step toward the PReP platform, Apple started the Power Macintosh line in 1994,
using PowerPC processors from Motorola and IBM. These processors used a RISC
architecture, which differed substantially from the Motorola 680X0 series that were
used by all previous Macs. 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.[citation needed] Apple also refused IBM's offer to purchase the company, but
later unsuccessfully sought another offer from IBM,[56] and at one point was "hours
away" from an acquisition by Sun Microsystems.[55][57]
In addition to computers, Apple has also produced consumer devices. In 1993, Apple
released the Newton, an early personal digital assistant (PDA). It defined and launched
the PDA category and was a forerunner and inspiration of devices such as Palm Pilot
and Pocket PC.[citation needed]
In 1994 Apple launched eWorld, an online service providing email, news and a bulletin
board system to replace AppleLink. It was shut down in 1996.

During 1995, a decision was made to (officially) start licensing the Mac OS and
Macintosh ROMs to 3rd party manufacturers who started producing Macintosh
clones. This was done in order to achieve deeper market penetration and extra
revenue for the company. This decision lead to Apple having over a 10% market share
until 1997 when Steve Jobs was re-hired as interim CEO to replace Gil Amelio. Jobs
promptly found a loophole in the licensing contracts Apple had with the clone
manufacturers and terminated the Macintosh OS licensing program ending the
Macintosh clone era. The result of this action was that Macintosh computer market
share quickly fell from 10% to around 3%.
In 1996, the struggling NeXT company beat out Be Inc.'s BeOS in its bid to sell its
operating system to Apple. Apple purchased Steve Jobs' company, NeXT on December
10, 1996, and its NeXTstep operating system. This would not only bring Steve Jobs
back to Apple's management, but NeXT technology would become the foundation of the
Mac OS X operating system.
19972001: Apple's comeback[edit]
Return of Steve Jobs[edit]
On July 9, 1997, Gil Amelio was ousted as CEO of Apple by the board of directors.
Jobs stepped in as the interim CEO to begin a critical restructuring of the company's
product line. He would eventually become CEO and served in that position until August
2011. On August 24, 2011 Steve Jobs resigned his position as chief executive officer of
Apple before his long battle with pancreatic cancer took his life on October 5, 2011.[58]
On November 10, 1997, Apple introduced the Apple Store, an online retail store based
upon the WebObjects application server the company had acquired in its purchase of
NeXT. The new direct sales outlet was also tied to a new build-to-order manufacturing
strategy.[59][60]
Microsoft deal[edit]
At the 1997 Macworld Expo, Steve Jobs announced that Apple would be entering into a
partnership with Microsoft. Included in this was a five-year commitment from
Microsoft to release Microsoft Office for Macintosh as well as a US$150 million
investment in Apple. As part of the deal Apple and Microsoft agreed to settle a longstanding dispute over whether Microsoft's Windows operating system infringed on any
of Apple's patents.[61] It was also announced that Internet Explorer would be shipped as
the default browser on the Macintosh, with the user being able to have a preference.
Microsoft chairman Bill Gates appeared at the expo on-screen, further explaining

Microsoft's plans for the software they were developing for Mac, and stating that he was
very excited to be helping Apple return to success. After this, Steve Jobs said this to the
audience at the expo:
If we want to move forward and see Apple healthy and prospering again, we have to let
go of a few things here. We have to let go of this notion that for Apple to win, Microsoft
has to lose. We have to embrace a notion that for Apple to win, Apple has to do a really
good job. And if others are going to help us that's great, because we need all the help we
can get, and if we screw up and we don't do a good job, it's not somebody else's fault,
it's our fault. So I think that is a very important perspective. If we want Microsoft Office
on the Mac, we better treat the company that puts it out with a little bit of gratitude; we
like their software.
So, the era of setting this up as a competition between Apple and Microsoft is over as
far as I'm concerned. 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.[62]
The day before the announcement Apple had a market cap of $2.46 billion,[63] and had
ended its previous quarter with quarterly revenues of US$1.7 billion and cash reserves
of US$1.2 billion,[64] making the US$150 million amount of the investment largely
symbolic. Apple CFO Fred Anderson stated that Apple would use the additional funds
to invest in its core markets of education and creative content.[61]
iMac, iBook, and Power Mac G4[edit]
The original iMac
While discontinuing Apple's licensing of its operating system to third-party computer
manufacturers, one of Jobs's first moves as new acting CEO was to develop the iMac,
which bought Apple time to restructure. The original iMac integrated a CRT display and
CPU into a streamlined, translucent plastic body. The line became a sales smash,
moving about one million units each year. It also helped re-introduce Apple to the media
and public, and announced the company's new emphasis on the design and aesthetics of
its products.
In 1999, Apple introduced the Power Mac G4, which utilized the Motorola-made
PowerPC 7400 containing a 128-bit instruction unit known as AltiVec, its flagship
processor line. Also that year, Apple unveiled the iBook, 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 802.11b standard; it helped popularize the
use of Wireless LAN technology to connect computers to networks.
Mac OS X[edit]
Main article: Mac OS X
Company headquarters on Infinite Loop in Cupertino
In 2001, Apple introduced Mac OS X, an operating system based on NeXT's NeXTstep
and incorporating parts of the FreeBSD kernel.[65] Aimed at consumers and
professionals alike, Mac OS X married the stability, reliability and security of Unix with
the ease of a completely overhauled user interface. To aid users in transitioning their
applications from Mac OS 9, the new operating system allowed the use of Mac OS 9
applications through the Classic environment. Apple's Carbon API also allowed
developers to adapt their Mac OS 9 software to use Mac OS X's features.
Retail stores[edit]
Main article: Apple Store
In May 2001, after much speculation, Apple announced the opening of a line of Apple
retail stores, to be located throughout the major U.S. computer buying markets. The
stores were designed for two primary purposes: to stem the tide of Apple's declining
share of the computer market and to respond to poor marketing of Apple products at
third-party retail outlets.
20012007: iPods, iTunes Store, Intel transition[edit]
iPod[edit]
Main article: iPod
A 2nd generation iPod
iPod mini with the user interface set to German
In October 2001, Apple introduced its first iPod portable digital audio player. The iPod
started as a 5 gigabyte player capable of storing around 1000 songs. Since then it has
evolved into an array of products including the Mini (now discontinued), the iPod
Touch, the Shuffle, the iPod Classic, the Nano, the iPhone and the iPad. Since March
2011, the largest storage capacity for an iPod has been 160 gigabytes.[66] Speaking to
software developers on June 6, 2005, Steve Jobs said the company's share of the entire
portable music device market stood at 76%.[citation needed]

The iPod gave an enormous lift to Apple's financial results.[67] In the quarter ending
March 26, 2005, Apple earned US$290 million, or 34 a share, on sales of US$3.24
billion. The year before in the same quarter, Apple earned just US$46 million, or 6 a
share, on revenue of US$1.91 billion.
Moving on from colored plastics and the PowerPC G3[edit]
In early 2002, Apple unveiled a completely redesigned iMac, using the G4 processor
and LCD display. The new iMac G4 design had a white hemispherical base and a flat
panel all-digital display supported by a swiveling chrome neck. After several iterations
increasing the processing speed and screen sizes from 15" to 17" to 20" the iMac G4
was discontinued and replaced by the iMac G5 in the summer of 2004.
In 2002, Apple also released the Xserve 1U rack mounted server. Originally featuring
two G4 chips, the Xserve was unusual for Apple in two ways. It represented an earnest
effort to enter the enterprise computer market and it was also relatively cheaper than
similar machines released by its competitors. This was due, in no small part, to Apple's
use of Fast ATA drives as opposed to the SCSI hard drives used in traditional rackmounted servers. Apple later released the Xserve RAID, a 14 drive RAID which was,
again, cheaper than competing systems.
In mid-2003, Steve Jobs launched the Power Mac G5, based on IBM's G5 processor. Its
all-metal anodized aluminum chassis finished Apple's transition away from colored
plastics in their computers. Apple claims this was the first 64-bit computer sold to the
general public. The Power Mac G5 was also used by Virginia Tech to build its prototype
System X supercomputing cluster, which at the time garnered the prestigious
recognition of the third fastest supercomputer in the world. It cost only US$5.2 million
to build, far less than the previous No. 3 and other ranking supercomputers. Apple's
Xserves were soon updated to use the G5 as well. They replaced the Power Mac G5
machines as the main building block of Virginia Tech's System X, which was ranked in
November 2004 as the world's seventh fastest supercomputer.[68]
A new iMac based on the G5 processor was unveiled August 31, 2004 and was made
available in mid-September. This model dispensed with the base altogether, placing the
CPU and the rest of the computing hardware behind the flat-panel screen, which is
suspended from a streamlined aluminum foot. This new iMac, dubbed the iMac G5, was
the world's thinnest desktop computer, measuring in at around two inches (around 5
centimeters).[citation needed]

2004, however, was a turning point for Apple. After creating a sizable financial base to
work with, the company began experimenting with new parts from new suppliers. As a
result, Apple was able to produce new designs quickly over a short amount of time, with
the release of the iPod Video, then the iPod Classic, and eventually the iPod touch and
iPhone.
On April 29, 2005, Apple released Mac OS X v10.4 "Tiger" to the general public.
Apple's wildly successful PowerBook and iBook products relied on Apple's previous
generation G4 architecture which were produced by Freescale Semiconductor, a spin-off
from Motorola. 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. As of the week of October 24, 2005 Apple released the Power Mac
G5 Dual that features a Dual-Core processor. This processor contains two cores in one
rather than have two separate processors. Apple has also developed the Power Mac G5
Quad that uses two of the Dual-Core processors for enhanced workstation power and
performance. The new Power Mac G5 Dual cores run individually at 2.0 GHz or 2.3
GHz. The Power Mac G5 Quad cores run individually at 2.5 GHz and all variations
have a graphics processor that has 256-bit memory bandwidth.[69]
Retail store expansion[edit]
Initially, the Apple Stores were only opened in the United States, but in late 2003, Apple
opened its first Apple Store abroad, in Tokyo's Ginza district. Ginza was followed by a
store in Osaka, Japan in August 2004. In 2005, Apple opened stores in Nagoya, the
Shibuya district of Tokyo, Fukuoka, and Sendai. Another store was opened in Sapporo
in 2006. Apple's first European store opened in London, on Regent Street, in November
2004. A store in the Bullring shopping centre in Birmingham opened in April 2005, and
the Bluewater shopping centre in Dartford, Kent opened in July 2005. Apple opened its
first store in Canada in the middle of 2005 at the Yorkdale Shopping Centre in North
York, Toronto. Later on in 2005 Apple opened the Meadowhall Store in Sheffield and
the Trafford Centre Store in Manchester (UK). Recent additions in the London area
include the Brent Cross Apple Store (January 2006), the Apple Store in Westfield in
Shepherd's Bush (September 2008) and the Apple Store in Covent Garden (August
2010), which is currently the largest store[70] in the world.
Also, in an effort to court a broader market, Apple opened several "mini" stores in
October 2004 in an attempt to capture markets where demand does not necessarily
dictate a full scale store. The first of these stores was opened at Stanford Shopping

Center in Palo Alto, California. These stores follow in the footsteps of the successful
Apple products: iPod mini and Mac mini. These stores are only one half the square
footage of the smallest "normal" store and thus can be placed in several smaller
markets.
Apple and "i" Web services[edit]
In 2000, Apple introduced its iTools service, a set of free web-based tools that included
an email account, internet greeting cards called iCards, a service called iReview that
gave internet users a place to read and write reviews of Web sites, and a tool called
KidSafe which promised to prevent children from browsing inappropriate portions of
the web. The latter two services were eventually canceled because of lack of success,
while iCards and email became integrated into Apple's .Mac subscription based service
introduced in 2002 and discontinued in mid-2008 to make way for the release of the
new MobileMe service, coinciding with the iPhone 3G release. MobileMe, which
carried the same US$99.00 annual subscription price as its .Mac predecessor, featured
the addition of "push" services to instantly and automatically send emails, contacts and
calendar updates directly to users' iPhone devices. Some controversy surrounded the
release of MobileMe services to users resulting in expected downtime and a
significantly longer release window. As a result of this, Apple extended the
subscriptions of existing MobileMe subscribers by an additional 30 days free-of-charge.
[71] At the WWDC event in June 2011, Apple announced its most up to date cloud
service, iCloud, replacing MobileMe. This service kept most of the core services that
MobileMe offered, however dropping iDisk, Gallery, and iWeb. Additionally, it added a
number of other features to the group, including Find my Mac, iTunes Match, Photo
Stream, Documents & Data Backup, and iCloud backup for iOS devices. The service
requires users to be running iOS 5 and OS X 10.7 Lion.
iTunes Store[edit]
Main article: iTunes Store
The iTunes Music Store was launched in April 2003, with 2 million downloads in the
first 16 days. Music was purchased through the iTunes application, which was initially
Macintosh-only; in October 2003, support for Windows was added. Initially, the music
store was only available in the United States due to licensing restrictions.
In June 2004 Apple opened their iTunes Music Store in the United Kingdom, France,
and Germany. A European Union version opened October 2004 (actually, a Eurozone
version; 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,
2005.) A version for Canada opened in December 2004. On May 10, 2005, the iTunes
Music Store was expanded to Denmark, Norway, Sweden, and Switzerland.
On December 16, 2004, Apple sold its 200 millionth song on the iTunes Music Store to
Ryan Alekman from Belchertown, Massachusetts. The download was The Complete
U2, by U2.[72] Just under three months later Apple sold its 300 millionth song on
March 2, 2005.[73] On July 17, 2005, the iTunes Music Store sold its 500 millionth
song.[citation needed] At that point, songs were selling at an accelerating annualized
rate of more than 500 million.
On October 25, 2005, the iTunes Store went live in Australia, with songs selling for
A$1.69 each, albums at (generally) A$16.99 and music videos and Pixar short films at
A$3.39. Briefly, people in New Zealand were able to buy music off the Australian store.
However, that loophole was quickly closed.
On February 23, 2006, the iTunes Music Store sold its 1 billionth song.[74]
The iTunes Music Store changed its name to iTunes Store on September 12, 2006 when
it began offering video content (TV shows and movies) for sale. Since iTunes' inception
it has sold over 2 billion songs, 1.2 billion of which were sold in 2006. Since
downloadable TV and movie content was added 50 million TV episodes and 1.3 million
movies have been downloaded.
In early 2010, Apple celebrated the 10 billionth song downloaded from the iTunes
Music Store.[75]
Intel transition[edit]
Main article: AppleIntel transition
In a keynote address on June 6, 2005, Steve Jobs officially announced that Apple would
begin producing Intel-based Macintosh computers beginning in 2006.[76] 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, and that the transition to Intel processor systems would last until the end of 2007.
Rumors of cross-platform compatibility had been spurred by the fact that Mac OS X is
based on OpenStep, an operating system that was available for many platforms. In fact,
Apple's own Darwin, the open source underpinnings of Mac OS X, was also available
for Intel's x86 architecture.[77][78][79]
On January 10, 2006, the first Intel-based machines, the iMac and MacBook Pro, were
introduced.[80][81] They were based on the Intel Core Duo platform. This introduction

came with the news that Apple would complete the transition to Intel processors on all
hardware by the end of 2006, a year ahead of the originally quoted schedule.
20072011: Apple Inc., iPhone, iOS, iPad[edit]
On January 9, 2007, Apple Computer, Inc. shortened its name to simply Apple Inc. In
his Macworld Expo keynote address, Steve Jobs explained that with their current
product mix consisting of the iPod and Apple TV as well as their Macintosh brand,
Apple really wasn't just a computer company anymore. At the same address, Jobs
revealed a product that would revolutionize an industry in which Apple had never
previously competed: the Apple iPhone. The iPhone combined Apple's first widescreen
iPod with the world's first mobile device boasting visual voicemail, and an internet
communicator able to run a fully functional version of Apple's web browser, Safari, on
the then-named iPhone OS (later renamed iOS).
iOS evolution: iPhone and iPad[edit]
Main articles: iOS, iPhone, and iPad
The first version of the iPhone became publicly available on June 29, 2007 in selected
countries/markets. It was another 12 months before the iPhone 3G became available on
July 11, 2008. Apple announced the iPhone 3GS on June 8, 2009, along with plans to
release it later in June, July, and August, starting with the U.S., Canada and major
European countries on June 19. This 12-month iteration cycle has continued with the
iPhone 4 model arriving in similar fashion in 2010, a Verizon model was released in
February 2011, and a Sprint model in October 2011, shortly after Jobs' death.
On February 10, 2011, the iPhone 4 was made available on both Verizon Wireless and
AT&T. Now two iPod types are multi-touch: the iPod nano and the iPod touch, a big
advance in technology. Apple TV currently has a 2nd generation model, which is 4
times smaller than the original Apple TV. Apple has also gone wireless, selling a
wireless trackpad, keyboard, mouse, and external hard drive. Wired accessories are,
however, still available.
The Apple iPad was announced on January 27, 2010 with retail availability
commencing in April and systematically growing in markets throughout 2010. The iPad
fits into Apple's iOS product line, being twice the screen size of an iPhone without the
phone abilities. While there were initial fears of product cannibalisation the FY2010
financial results released in Jan 2011 included commentary of a reverse 'halo' effect,
where iPad sales were leading to increased sales of iMacs and MacBooks.[82]
Resurgence compared to Microsoft[edit]

Since 2005, Apple's revenues, profits, and stock price have grown significantly. On May
26, 2010 Apple's stock market value overtook Microsoft's,[83] and Apple's revenues
surpassed those of Microsoft in the third quarter of 2010.[84] After giving their results
for the first quarter of 2011 Microsoft's net profits of $5.2 billion were lower for the
quarter than those of Apple Inc., which earned $6 billion in net profit for the quarter.
[85][86][87] The late April announcement of profits by the Five companies marks the
first time in twenty years that Microsoft's profits have been lower than Apple's.,[86] and
according to Arstechnica "this would have been 'unimaginable' 10 years before."[85]
The Guardian reported that one of the reasons for the change is because PC software,
where Microsoft dominates, has become less important compared to the tablet PC and
smartphone markets, where Apple has a strong presence.[86] One reason for this was a
surprise drop in PC sales in the quarter.[86] Another issue for Microsoft is that their
online search business has lost a lot of money, with a loss of $700 million in the first
quarter of 2010.[86] Although Microsoft's online division losses were high, even if they
had made no loss Apple's profits would have been slightly higher.[85][88]
2011present: Restructuring and Apple Watch[edit]
On March 2, 2011, Apple unveiled the iPad's second generation model, the iPad 2. Like
the 4th generation iPod Touch and iPhone, the iPad 2 comes with a front-facing camera
as well as a rear-facing camera, along with three new apps that utilize these new
features: Camera, FaceTime, and Photobooth (only on iPad2).
On August 24, 2011, Steve Jobs resigned from his position as CEO[89] with Tim Cook
taking his place. On October 29, 2012, Apple announced structural changes to increase
collaboration between hardware, software and services.[90] This involved the departure
of Scott Forstall, responsible for the launch of iOS (iPhone OS at the time of launch),
who was replaced with Craig Federighi as head of iOS and OS X teams. Jony Ive
became head of HI (Human Interface), whilst Eddy Cue was announced as head of
online services including Siri and Maps. The most notable short term difference of this
restructuring was the launch of iOS 7, the first version of the operating system to use a
drastically different design to its predecessors, headed by Jony Ive.,[91] followed by OS
X Yosemite a year later with a similar design.
During this time, Apple released the iPhone 5, the first iPhone to have a screen larger
than 3.5",[92] the iPod Touch 5, also with a 4" screen, the iPhone 5S with fingerprint
scanning technology in the form of Touch ID, and iPhone 6 and iPhone 6 Plus, with
screens at 4.7" and 5.5". They released the iPad 3rd generation with Retina Display,

followed by the iPad (4th generation) just half a year later. The iPad Mini was
announced alongside the iPad 4th gen, and was the first to feature a smaller screen than
9.7". This was followed by the iPad Mini 2 with Retina Display in 2013, alongside the
iPad Air, a continuation of the original 9.7" range of iPads, which was subsequently
followed by the iPad Air 2 with Touch ID in 2014. Apple also released various major
Mac updates, including the MacBook Pro with Retina Display,[93] whilst also
discontinuing the original MacBook range for a short period, before reintroducing it in
2015 with various new features, a Retina Display and a new design notably absent of
ports other than USB-C.[94] They also updated the Mac Pro and iMac lines with a
drastically different smaller/thinner, but more powerful designs.
On November 25, 2013, Apple acquired a company called PrimeSense.[95] On May 28,
2014, Apple acquired Beats Electronics, producers of the popular Beats by Dre
headphone and speaker range, as well as streaming service Beats Music.
On September 9, 2014, Apple announced the Apple Watch, the first new product range
since the departure of Steve Jobs.[96] The product cannot function beyond basic
features without being within Bluetooth or WiFi range to an iPhone, and contains basic
applications (many acting as a remote for other devices, such as a music remote, or a
control for an Apple TV) and fitness tracking. The Apple Watch received mixed
reviews, with critics suggesting that whilst the device showed promise, it lacked a clear
purpose, similar to many of the devices already on the market.[97] The Apple Watch
was released on April 24, 2015.[98]
On September 9, 2015, Apple announced the iPhone 6S and iPhone 6S Plus with 3D
Touch, the iPad Pro, and the fourth-generation Apple TV, along with the fourthgeneration iPad Mini. On March 21, 2016, Apple announced the iPhone SE and the
smaller iPad Pro.
Financial history[edit]
As cash reserves increased significantly in 2006, Apple created Braeburn Capital on
April 6, 2006 to manage its assets.[99]
Stock[edit]
'AAPL' is the stock symbol under which Apple Inc. trades on the NASDAQ stock
market. Apple originally went public on December 12, 1980, with an initial public
offering at US$22.00[103] per share. The stock has split 2 for 1 three different times on
June 15, 1987, June 21, 2000 and February 28, 2005. Apple initially paid dividends
from June 15, 1987 to December 15, 1995. On March 19, 2012, Apple announced that it

would again start paying a dividend of $2.65 per quarter (beginning in the quarter that
starts in July 2012) along a $10 billion share buyback which would commence
September 30, 2012, the start of its fiscal 2013 year.
Gene Munster and Michael Olson of Piper Jaffray are the main analysts who track
Apple stock. Piper Jaffray estimate future stock and revenue of Apple annually, and
have been doing so for several years.[104]
Timeline of Apple Inc. products
See also: Timeline of Apple Inc. products, Timeline of Apple II family, and Timeline of
Macintosh models
Products on this timeline indicate introduction dates only and not necessarily
discontinued dates, as new products begin on a contiguous product line.