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Apple Computer Inc
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(NASDAQ (GS):AAPL)
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Balance Sheet Cash Flow Statement 1 Infinite Loop Cupertino, CA 95014 CA Tel. 408-996-1010 Fax 408-974-2113 |
Type: Public
On the web:
http://www.apple.com
Employees:
35,100
Employee growth: 62.5%
Apple aims for nothing short of a revolution, whether in personal computing or digital media distribution. The company's desktop and laptop computers -- all of which feature its OS X operating system -- include its Mac mini, iMac, and MacBook for the consumer and education markets, and more powerful Mac Pro and MacBook Pro for high-end consumers and professionals involved in design and publishing. Apple scored a runaway hit with its digital music players (iPod) and online music store (iTunes). Other products include mobile phones (iPhone), servers (Xserve), wireless networking equipment (Airport), and publishing and multimedia software. Its FileMaker subsidiary provides database software.
Key numbers for fiscal year ending September, 2009:
Sales: $36,537.0M
One year growth: 12.5%
Net income: $5,704.0M
Income growth: 18.0%
Officers:
Chairman: William V. (Bill) Campbell
CEO and Director: Steven P. (Steve) Jobs
COO: Timothy D. (Tim) Cook
Competitors:
Dell
Hewlett-Packard
Microsoft
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(Apple Inc., Cupertino, CA, www.apple.com) A manufacturer of computers and consumer electronics, Apple is the industry's most fabled story. Founded in a garage by Steve Wozniak and Steve Jobs and guided by Mike Markkula, Apple blazed the trails for the personal computer industry. Apple was formed on April Fool's Day in 1976. After introducing the Apple I at the Palo Alto Homebrew Computer Club, 10 retail stores were selling them by the end of the year.
In 1977, the Apple II was introduced, a fully-assembled computer with 4K RAM for $1,298. Its open architecture encouraged third-party vendors to build plug-in hardware enhancements. This, plus sound and color graphics, caused Apple IIs to become the most widely used computer in the home and classroom. They were also used in business primarily for the innovative VisiCalc software that was launched on it.
In 1983, Apple introduced the Lisa, the forerunner of the Macintosh. Lisa was aimed at the corporate market, but was soon dropped in favor of the Mac. As a graphics-based machine, the Mac was successful as a low-cost desktop publishing system. Although praised for its ease of use, its slow speed, small monochrome screen and closed architecture didn't excite corporate buyers. But, things were to change.
In 1987, the Mac II offered higher speed, larger screens in color and traditional cabinetry that accepted third-party add-in cards. Numerous models were offered and widely accepted. In 1991, Apple surprised the industry by announcing an alliance with IBM to form several companies that would develop hardware and software together. All these eventually folded back into Apple and IBM, but the major product of the alliance was the PowerPC chip (see Apple-IBM alliance). In 1994, Apple came out with its first PowerPC-based Power Macs, which proved very popular. Its PowerBook laptops were an instant success, and all subsequent models departed from the original Motorola 68K architecture to the PowerPC.
Apple has stood alone in a sea of IBM and IBM-compatible PCs for more than a decade and a half. It has watched its graphical interface copied more with each incarnation of Windows and watched its market share drop simultaneously. In late 1994, Apple began to license its OS to system vendors in order to create a Macintosh clone industry, which pundits had been suggesting for years. However, a couple of years later, that was discontinued.
In 1997, Apple acquired NeXT Computer, which brought Steve Jobs back to the company he founded and gave it a raft of object-oriented development tools, parts of which filtered down into the Mac OS X operating system.
In 1998, Apple introduced the iMac, a low-priced Internet-ready Mac that was the first personal computer without a floppy disk. Self-contained in one unit like the original Mac, Apple sold 800,000 iMacs in a year, making it the fastest-selling computer in its history. Apple's subsequent models, including the G4 Cube and Titanium portable, were in a class by themselves. Apple continues to offer attractive alternatives to the Windows-based PC.
In 2001, Apple launched the iPod, one of the most successful consumer electonics products in history. Setting the bar for portable music players, every competing product is measured against the iPod's ease of use and capabilities. In 2007, Apple introduced the iPhone, a combination phone, iPod, Internet appliance and mobile computer. The iPhone transformed the mobile phone industry with its unique user interface (see iPhone).
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| Company History: Apple Computer, Inc. |
Incorporated: 1977
NAIC: 334111 Electronic Computer Manufacturing; 334119 Other Computer Peripheral Equipment Manufacturing; 511210 Software Publishers
SIC: 3571 Electronic Computers; 3577 Computer Peripheral Equipment Nec; 7372 Prepackaged Software
Apple Computer, Inc. designs, manufactures, and markets personal computers, software, networking solutions, and peripherals, including a line of portable digital music players. Apple's product family includes the Macintosh line of desktop and notebook computers, the iPod digital music player, the Mac OS X operating system, the iTunes Music Store, the Xserve G5 server, and Xserve RAID storage products. The company's products are sold online, through third-party wholesalers, and through its own chain of stores. Apple owns approximately 125 retail stores in the United States, as well as stores in Canada, Japan, and the United Kingdom.
Origins
Apple was founded in April 1976 by Steve Wozniak, then 26 years old, and Steve Jobs, 21, both college dropouts. Their partnership began several years earlier when Wozniak, a talented, self-taught electronics engineer, began building boxes that allowed him to make long-distance phone calls for free. The pair sold several hundred such boxes.
In 1976 Wozniak was working on another box, the Apple I computer, without keyboard or power supply, for a computer hobbyist club. Jobs and Wozniak sold their most valuable possessions, a van and two calculators, raising $1,300 with which to start a company. A local retailer ordered 50 of the computers, which were built in Jobs's garage. They eventually sold 200 to computer hobbyists in the San Francisco Bay area for $666 each. Later that summer, Wozniak began work on the Apple II, designed to appeal to a greater market than computer hobbyists. Jobs hired local computer enthusiasts, many of them still in high school, to assemble circuit boards and design software. Early microcomputers had usually been housed in metal boxes. With the general consumer in mind, Jobs planned to house the Apple II in a more attractive modular beige plastic container.
Jobs wanted to create a large company and consulted with Mike Markkula, a retired electronics engineer who had managed marketing for Intel Corporation and Fairchild Semiconductor. Chairman Markkula bought one-third of the company for $250,000, helped Jobs with the business plan, and in 1977 hired Mike Scott as president. Wozniak worked for Apple full time in his engineering capacity.
Jobs recruited Regis McKenna, owner of one of the most successful advertising and public relations firms in Silicon Valley, to devise an advertising strategy for the company. McKenna designed the Apple logo and began advertising personal computers in consumer magazines. Apple's professional marketing team placed the Apple II in retail stores, and by June 1977, annual sales reached $1 million. It was the first microcomputer to use color graphics, with a television set as the screen. In addition, the Apple II expansion slot made it more versatile than competing computers.
The earliest Apple IIs read and stored information on cassette tapes, which were unreliable and slow. By 1978 Wozniak had invented the Apple Disk II, at the time the fastest and cheapest disk drive offered by any computer manufacturer. The Disk II made possible the development of software for the Apple II. The introduction of Apple II, with a user manual, at a consumer electronics show signaled that Apple was expanding beyond the hobbyist market to make its computers consumer items. By the end of 1978, Apple was one of the fastest-growing companies in the United States, with its products carried by over 100 dealers.
In 1979 Apple introduced the Apple II+ with far more memory than the Apple II and an easier startup system, and the Silentype, the company's first printer. VisiCalc, the first spreadsheet for microcomputers, was also released that year. Its popularity helped to sell many Apple IIs. By the end of the year sales were up 400 percent from 1978, at over 35,000 computers. Apple Fortran, introduced in March 1980, led to the further development of software, particularly technical and educational applications.
In December 1980, Apple went public. Its offering of 4.6 million shares at $22 each sold out within minutes. A second offering of 2.6 million shares quickly sold out in May 1981.
Meanwhile Apple was working on the Apple II's successor, which was intended to feature expanded memory and graphics capabilities and run the software already designed for the Apple II. The company, fearful that the Apple II would soon be outdated, put time pressures on the designers of the Apple III, despite the fact that sales of the Apple II more than doubled to 78,000 in 1980. The Apple III was well received when it was released in September 1980 at $3,495, and many predicted it would achieve its goal of breaking into the office market dominated by IBM. However, the Apple III was released without adequate testing, and many units proved to be defective. Production was halted and the problems were fixed, but the Apple III never sold as well as the Apple II. It was discontinued in April 1984.
The problems with the Apple III prompted Mike Scott to lay off employees in February 1981, a move with which Jobs disagreed. As a result, Mike Markkula became president and Jobs chairman. Scott was named vice-chairman shortly before leaving the firm.
Despite the problems with Apple III, the company forged ahead, tripling its 1981 research and development budget to $21 million, releasing 40 new software programs, opening European offices, and putting out its first hard disk. By January 1982, 650,000 Apple computers had been sold worldwide. In December 1982, Apple became the first personal computer company to reach $1 billion in annual sales.
The next year, Apple lost its position as chief supplier of personal computers in Europe to IBM, and tried to challenge IBM in the business market with the Lisa computer. Lisa introduced the mouse, a hand-controlled pointer, and displayed pictures on the computer screen that substituted for keyboard commands. These innovations came out of Jobs's determination to design an unintimidating computer that anyone could use.
Unfortunately, the Lisa did not sell as well as Apple had hoped. Apple was having difficulty designing the elaborate software to link together a number of Lisas and was finding it hard to break IBM's hold on the business market. Apple's earnings went down and its stock plummeted to $35, half of its sale price in 1982. Mike Markkula had viewed his presidency as a temporary position, and in April 1983, Jobs brought in John Sculley, formerly president of Pepsi-Cola, as the new president of Apple. Jobs felt the company needed Sculley's marketing expertise.
1984 Debut of the Macintosh
The production division for Lisa had been vying with Jobs's Macintosh division. The Macintosh personal computer offered Lisa's innovations at a fraction of the price. Jobs saw the Macintosh as the "people's computer," designed for people with little technical knowledge. With the failure of the Lisa, the Macintosh was seen as the future of the company. Launched with a television commercial in January 1984, the Macintosh was unveiled soon after, with a price tag of $2,495 and a new 3-inch disk drive that was faster than the 5 1/4-inch drives used in other machines, including the Apple II.
Apple sold 70,000 Macintosh computers in the first 100 days. In September 1984 a new Macintosh was released with more memory and two disk drives. Jobs was convinced that anyone who tried the Macintosh would buy it. A national advertisement offered people the chance to take a Macintosh home for 24 hours, and over 200,000 people did so. At the same time, Apple sold its two millionth Apple II. Over the next six months Apple released numerous products for the Macintosh, including a laser printer and a hard drive.
Despite these successes, Macintosh sales temporarily fell off after a promising start, and the company was troubled by internal problems. Infighting between divisions continued, and poor inventory tracking led to overproduction. Although originally a strong supporter of Sculley, Jobs eventually decided to oust the executive; Jobs, however, lost the ensuing showdown. Sculley reorganized Apple in June 1985 to end the infighting caused by the product-line divisions, and Jobs, along with several other Apple executives, left the company in September. They founded a new computer company, NeXT Incorporated, which would later emerge as a rival to Apple in the business computer market.
The Macintosh personal computer finally moved Apple into the business office market. Corporations saw its ease of use as a distinct advantage. It was far cheaper than the Lisa and had the necessary software to link office computers. In 1986 and 1987 Apple produced three new Macintosh personal computers with improved memory and power. By 1988, over one million Macintosh computers had been sold, with 70 percent of sales to corporations. Software was created that allowed the Macintosh to be connected to IBM-based systems. Apple grew rapidly; income for 1988 topped $400 million on sales of $4.07 billion, up from income of $217 million on sales of $1.9 billion in 1986. Apple had 5,500 employees in 1986 and over 14,600 by the early 1990s.
In 1988, Apple management had expected a worldwide shortage of memory chips to worsen. They bought millions when prices were high, only to have the shortage end and prices fall soon after. Apple ordered sharp price increases for the Macintosh line just before the Christmas buying season, and consumers bought the less expensive Apple line or other brands. In early 1989, Apple released significantly enhanced versions of the two upper-end Macintosh computers, the SE and the Macintosh II, primarily to compete for the office market. At the same time IBM marketed a new operating system that mimicked the Macintosh's ease of use. In May 1989 Apple announced plans for its new operating system, System 7, which would be available to users the next year and allow Macintoshes to run tasks on more than one program simultaneously.
Apple was reorganized in August 1988 into four operating divisions: Apple USA, Apple Europe, Apple Pacific, and Apple Products. Dissatisfied with the changes, many longtime Apple executives left. In July 1990, Robert Puette, former head of Hewlett-Packard's personal computer business, became head of the Apple USA division. Sculley saw the reorganization as an attempt to create fewer layers of management within Apple, thus encouraging innovation among staff. Analysts credit Sculley with expanding Apple from a consumer and education computer company to a business computer company, one of the biggest and fastest-growing corporations in the United States.
Competition in the industry of information technology involved Apple in a number of lawsuits. In December 1989 for instance, the Xerox Corporation, in a $150 million lawsuit, charged Apple with unlawfully using Xerox technology for the Macintosh software. Apple did not deny borrowing from Xerox technology but explained that the company had spent millions to refine that technology and had used other sources as well. In 1990 the court found in favor of Apple in the Xerox case. Earlier, in March 1988, Apple had brought suits against Microsoft and Hewlett-Packard, charging copyright infringement. Four years later, in the spring of 1992, Apple's case was dealt a severe blow in a surprise ruling: copyright protection cannot be based on "look and feel" (appearance) alone; rather, "specific" features of an original program must be detailed by developers for protection.
Mismanagement, Crippling an Industry Giant: 1990s
Apple entered the 1990s well aware that the conditions that made the company an industry giant in the previous decade had changed dramatically. Management recognized that for Apple to succeed in the future, corporate strategies would have to be reexamined. Apple had soared through the 1980s on the backs of its large, expensive computers, which earned the company a committed, yet relatively small following. Sculley and his team saw that competitors were relying increasingly on the user-friendly graphics that had become the Macintosh signature and recognized that Apple needed to introduce smaller, cheaper models, such as the Classic and LC, which were instant hits. At a time when the industry was seeing slow unit sales, the numbers at Apple were skyrocketing. In 1990, desktop Macs accounted for 11 percent of the PCs sold through U.S. computer dealers. In mid-1992, the figure was 19 percent.
But these modestly priced models had a considerably smaller profit margin than their larger cousins. So even if sales took off, as they did, profits were threatened. In a severe austerity move, Apple laid off nearly 10 percent of its workforce, consolidated facilities, moved production plants to areas where it was cheaper to operate, and drastically altered its corporate organizational chart. The bill for such forward-looking surgery was great, however, and in 1991 profits were off 35 percent. But analysts said that such pitfalls were expected, indeed necessary, if the company intended to position itself as a leaner, better-conditioned fighter in the years ahead.
Looking ahead is what analysts say saved Apple from foundering. In 1992, after the core of the suit that Apple had brought against Microsoft and Hewlett-Packard was dismissed, industry observers pointed out that although the loss was a disappointment for Apple, the company wisely had not banked on a victory. They credited Apple's ambitious plans for the future with quickly turning the lawsuit into yesterday's news.
In addition to remaining faithful to its central business of computer making (the notebook PowerBook series, released in 1991, garnered a 21 percent market share in less than six months), Apple intended to ride a digital wave into the next century. The company geared itself to participate in a revolution in the consumer electronics industry, in which products that were limited by a slow, restrictive analog system would be replaced by faster, digital gadgets on the cutting edge of telecommunications technology. Apple also experimented with the interweaving of sound and visuals in the operations of its computers.
For Apple, the most pressing issue of the 1990s was not related to technology, but concerned capable and consistent management. The company endured tortuous failures throughout much of the decade, as one chief executive officer after another faltered miserably. Scully was forced out of his leadership position by Apple's board of directors in 1993. His replacement, Michael Spindler, broke tradition by licensing Apple technology to outside firms, paving the way for ill-fated Apple clones that ultimately eroded Apple's profits. Spindler also oversaw the introduction of the Power Macintosh line in 1994, an episode in Apple's history that typified the perception that the company had the right products but not the right people to deliver the products to the market. Power Macintosh computers were highly sought after, but after overestimating demand for the earlier release of its PowerBook laptops, the company grossly underestimated demand for the Power Macintosh line. By 1995, Apple had $1 billion worth of unfilled orders, and investors took note of the embarrassing miscue. In a two-day period, Apple's stock value plunged 15 percent.
After Spindler's much publicized mistake of 1995, Apple's directors were ready to hand the leadership reins to someone new. Gil Amelio, credited with spearheading the recovery of National Semiconductor, was named chief executive officer in February 1996, beginning another notorious era of leadership for the beleaguered Cupertino company. Amelio cut Apple's payroll by a third and slashed operating costs, but drew a hail of criticism for his compensation package and his inability to relate to Apple's unique corporate culture. Apple's financial losses, meanwhile, mounted, reaching $816 million in 1996 and a staggering $1 billion in 1997. The company's stock, which had traded at more than $70 per share in 1991, fell to $14 per share. Its market share, 16 percent in the late 1980s, stood at less than 4 percent. Fortune magazine offered its analysis, referring to Apple in its March 3, 1997 issue as "Silicon Valley's paragon of dysfunctional management."
Amelio was ousted from the company in July 1997, but before his departure a significant deal was concluded that brought Apple's savior to Cupertino. In December 1996, Apple paid $377 million for NeXT, a small, $50-million-in-sales company founded and led by Steve Jobs. Concurrent with the acquisition, Amelio hired Jobs as his special advisor, marking the return of Apple's visionary 12 years after he had left. In September 1997, two months after Amelio's exit, Apple's board of directors named Jobs interim chief executive officer. Apple's recovery occurred during the ensuing months.
Jobs assumed his responsibilities with the same passion and understanding that had made Apple one of the greatest success stories in business history. He immediately discontinued the licensing agreement that spawned Apple clones. He eliminated 15 of the company's 19 products, withdrawing Apple's involvement in making printers, scanners, portable digital assistants, and other peripherals. From 1997 forward, Apple would focus exclusively on desktop and portable Macintoshes for professional and consumer customers. Jobs closed plants, laid off thousands of workers, and sold stock to rival Microsoft Corporation, receiving a cash infusion of $150 million in exchange. Apple's organizational hierarchy underwent sweeping reorganization as well, but the most visible indication of Jobs's return was unveiled in August 1998. Distressed by his company's lack of popular computers that retailed for less than $2,000, Jobs tapped Apple's resources and, ten months after the project began, unveiled the massively successful iMAC, a sleek and colorful computer that embodied Apple's skill in design and functionality.
Because of Jobs's restorative efforts, Apple exited the 1990s as a pared-down version of its former self, but, importantly, a profitable company once again. Annual sales, which totaled $11.5 billion in 1995, stood at $5.9 billion in 1998, from which the company recorded a profit of $309 million. In 1999, sales grew a modest 3.2 percent, but the newfound health of the company was evident in a 94 percent gain in net income, as Apple's profits swelled to $601 million. Further, Apple's stock mustered a remarkable rebound, climbing 140 percent to $99 per share in 1999. By the decade's end, "interim" was dropped from Jobs's corporate title, signaling Jobs's return on a permanent basis and fueling optimism that Apple could look forward to a decade of vibrant and consistent growth.
2001: iPod, Catalyst to Growth
Apple's turnaround was confirmed in the first years of the 21st century, as the company strode toward its 30th anniversary exuding an unprecedented degree of strength. At the heart of the company's surging growth was a digital music player branded as iPod. Introduced in late 2001, the device featured five gigabytes (GB) of storage, enabling the user to store approximately 1,000 songs on a player that was smaller than a deck of playing cards. Retailing for $399, the iPod represented another example of Apple's skill in designing an elegant and functional product, a product that became one of the most sought after consumer electronics items during the first half of the decade. Succeeding generations of iPods hit the market and scored resounding success, driving the company's financial growth. A 10 GB model was introduced in mid-2002, followed by the iPod Mini, iPod Shuffle, and iPod Nano, together representing a massive new source of revenue for the company. The fifth generation of the iPod debuted in 2005, a device available in a 30 GB or 60 GB model that was capable of storing and playing video files. By the time the video iPod arrived in stores, Apple derived roughly 35 percent of its revenue from iPods. Between 2001 and 2005, thanks primarily to the popularity of iPods, the company's sales nearly tripled, increasing from $5.3 billion to $13.9 billion. Apple controlled more than 75 percent of the $2.5 billion digital audio player market in the United States.
As the company enjoyed escalating sales midway through the decade, it also celebrated the success of a new dimension to its business. In 2001, the company opened its first retail outlet, a 6,000-square-foot store located in Tysons Corner, Virginia, that became the first unit of a chain of Apple-owned stores. By 2005, the company operated nearly 125 stores in the United States and a handful of stores in Canada, Japan, and the United Kingdom. With an expanding retail arm devoted to highlighting an impressively popular selection of products, Apple approached its 30th anniversary in a stronger position than ever before in its history. In the years ahead, the company's well-established ability to develop singular products for the digital marketplace promised to deliver impressive growth and excite the interests of consumers worldwide.
Principal Subsidiaries
Apple Computer, Inc. Limited (Ireland); Apple Computer Limited (Ireland); Apple Computer International (Ireland).
Principal Competitors
Compaq Computer Corporation; Dell Computer Corporation; International Business Machines Corporation; Microsoft Corporation; Hewlett-Packard Company.
Further Reading
Ahrens, Frank, "Apple Set to Open in Japan First Retail Store Outside United States," America's Intelligence Wire, November 27, 2003.
"Apple Crumble," Economist (US), July 12, 1997, p. 54.
Bartholomew, Doug, "What's Really Driving Apple's Recovery," Industry Week, March 15, 1999, p. 34.
Breen, Christopher, "Video iPod Arrives," Macworld, December 2005, p. 18.
Burrows, Peter, "Apple May Be Holding Back the Music Biz," Business Week, December 19, 2005, p. 40.
"Dell CEO Says iPod Helped Turn Around Apple," PC Magazine Online, November 15, 2005.
"An Even Better iPod," PC Magazine Online, May 17, 2002.
"Everybody Wants a Piece of the iPod," America's Intelligence Wire, October 27, 2003.
Fawcett, Neil, "Can Microsoft Put Apple Together Again?," Computer Weekly, August 14, 1997, p. 17.
Frieberger, Paul, and Michael Swaine, Fire in the Valley: The Making of the Personal Computer, Berkeley, Calif.: Osborne-McGraw-Hill, 1984.
Hogan, Thom, "Apple: The First Ten Years," A+: The #1 Apple II Magazine, September 1987.
Kirkpatrick, David, "The Second Coming of Apple," Fortune, November 9, 1998, p. 86.
Kupfer, Andrew, "Apple's Plan to Survive and Grow," Fortune, May 4, 1992.
Merrion, Paul, "Inventor of Music Player Takes a Bite Out of Apple," Crain's Chicago Business, November 28, 2005, p. 2.
Pollack, Andrew, "Apple Shows Products for Its Macintosh Line," Time, March 4, 1992.
Quittner, Joshua, "Apple Turnover?," Time, October 2, 1995, p. 56.
Rebello, Kathy, "Apple's Daring Leap into the All-Digital Future," Business Week, May 25, 1992.
Rebello, Kathy, Michele Galen, and Evan I. Schwartz, "It Looks and Feels As If Apple Lost," Business Week, April 27, 1992.
Rose, Frank, West of Eden, New York: Penguin Books, 1989.
Schlender, Brent, "Something's Rotten in Cupertino," Fortune, March 3, 1997, p. 100.
Seitz, Patrick, "Apple Sees Healthy "iPod Economy,'" Investor's Business Daily, December 5, 2005, p. A5.
"Will Apple Push 'Intel Inside'?," Business Week Online, December 16, 2005.
Wong, May, "Apple Sets Pace in Consumer Electronics," America's Intelligence Wire, December 15, 2005.
Zachary, G. Pascal, and Stephen Kreider Yoder, "Apple Moves Its Microsoft Battle to the Marketplace," Wall Street Journal, April 16, 1992.
— Scott Lewis; Updated by Jeffrey L. Covell
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Company Bio
On April 1, 1976,In 1977
In 1981
In June 1993,
After a period of product shortages and declining sales,
In 1997,
By August 1997 Jobs was being referred to as
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| Wikipedia: Apple Inc. |
For other companies also named Apple, see Apple (disambiguation).
Not to be confused with Apple Corps.
Apple Inc. is an American multinational corporation that designs and manufactures consumer electronics and computer software products. The company's best-known hardware products include Macintosh computers, the iPod and the iPhone. Apple software includes the Mac OS X operating system, the iTunes media browser, the iLife suite of multimedia and creativity software, the iWork suite of productivity software, Final Cut Studio, a suite of professional audio and film-industry software products, and Logic Studio, a suite of audio tools. The company operates more than 250 retail stores in nine countries and an online store where hardware and software products are sold.[2]
Established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977,[5] the company was called Apple Computer, Inc. for its first 30 years, but dropped the word "Computer" on January 9, 2007[6] to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers.[7] Apple has about 35,000 employees worldwide[3] and had worldwide annual sales of US$32.48 billion in its fiscal year ending September 29, 2008.[4] For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States.[8] Fortune magazine named Apple the most admired company in the United States in 2008 and in the world in 2009.[9][10]
Contents |
History
Main article: History of Apple
See also: Apple Inc. litigation
1976–1980: The early years
Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne,[1] to sell the Apple I personal computer kit. They were hand-built by Wozniak[11][12] and first shown to the public at the Homebrew Computer Club.[13] The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips)—less than what is today considered a complete personal computer.[14] The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2.5 thousand in 2009 dollars, adjusted for inflation.)[15][16][17][18][19][20]
Apple was incorporated January 3, 1977[5] without Wayne, who sold his share of the company back to Jobs and Wozniak for $800. Multi-millionaire Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple.[21][22]
The Apple II was introduced on April 16, 1977 at the first West Coast Computer Faire. It differed from its major rivals, the TRS-80 and Commodore PET, because it came with color graphics and an open architecture. While early models used ordinary cassette tapes as storage devices, they were superseded by the introduction of a 5 1/4 inch floppy disk drive and interface, the Disk II.[23]
The Apple II was chosen to be the desktop platform for the first "killer app" of the business world—the VisiCalc spreadsheet program.[24] VisiCalc created a business market for the Apple II, and gave home users an additional reason to buy an Apple II—compatibility with the office.[24] According to Brian Bagnall, Apple exaggerated its sales figures and was a distant third place to Commodore and Tandy until VisiCalc came along.[25][26]
By the end of the 1970s, Apple had a staff of computer designers and a production line. The Apple II was succeeded by the Apple III in May 1980 as the company competed with IBM and Microsoft in the business and corporate computing market.[27]
Jobs and several Apple employees including Jef Raskin visited Xerox PARC in December 1979 to see the Xerox Alto. Xerox granted Apple engineers three days of access to the PARC facilities in return for $1 million in pre-IPO Apple stock.[28] Jobs was immediately convinced that all future computers would use a GUI, and development of a GUI began for the Apple Lisa.[29]
In December 1980, Apple launched the Initial Public Offering of its stock to the investing public.[citation needed] When Apple went public, it generated more capital than any IPO since Ford Motor Company in 1956 and instantly created more millionaires (about 300) than any company in history. Several venture capitalists cashed out, reaping billions in long-term capital gains.[citation needed]
1981–1985: Lisa and Macintosh
Steve Jobs began working on the Apple Lisa in 1978 but in 1982 he was pushed from the Lisa team due to infighting, and took over Jef Raskin's low-cost-computer project, the Macintosh. A turf war broke out between Lisa's "corporate shirts" and Jobs' "pirates" over which product would ship first and save Apple. Lisa won the race in 1983 and became the first personal computer sold to the public with a GUI, but was a commercial failure due to its high price tag and limited software titles.[30]
In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $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,[31] and is now considered a watershed event for Apple's success[32] and a "masterpiece".[33][34]
The Macintosh initially sold well, but follow-up sales were not strong.[35] This was because of the again high price tag, as well as limited software titles. The machine's fortunes changed with the introduction of the LaserWriter, the first PostScript laser printer to be offered at a reasonable price point, and PageMaker, an early desktop publishing package. The Mac was particularly powerful in this market due to its advanced graphics capabilities, which were already necessarily built-in to create the intuitive Macintosh GUI. It has been suggested that the combination of these three products was responsible for the creation of the desktop publishing market.[36]
In 1985, a power struggle developed between Jobs and CEO John Sculley, who had been hired two years prior.[37] Apple's board of directors sided with Sculley and Jobs was removed from his managerial duties.[35] Jobs resigned from Apple and founded NeXT Inc. the same year.[38]
Apple's sustained growth during the early 1980s was in great part due to its leadership in the education sector, attributed to an implementation of the LOGO Programming Language by Logo Computer Systems Inc., (LCSI), for the Apple II platform. The success of Apple and LOGO in the education environment provided Apple with a broad base of loyal users around the world. The drive into education was accentuated in California by a momentous agreement concluded between Steve Jobs and Jim Baroux of LCSI, agreeing with the donation of one Apple II and one Apple LOGO software package to each public school in the state. The arrangement, (eventually replicated in Texas), established a strong and pervasive presence for Apple in all schools throughout California, that ignited the acquisition of Apple IIs in schools across the country. The conquest of education became critical to Apple's acceptance in the home, as parents supported children’s continued learning experience after school.
1986–1993: Rise and fall
See also: Timeline of Apple II family and Timeline of Macintosh models
Having learned several painful lessons after introducing the bulky Macintosh Portable in 1989, Apple introduced the PowerBook in 1991, which established the modern form and ergonomic layout of the laptop computer.[39] The Macintosh Portable was designed to be just as powerful as a desktop Macintosh and turned out 17 pounds with a 12 hour battery life. Apple sold fewer than 100,000 units.[citation needed] The Powerbook was 7 pounds and had a 3 hour battery life, and sold a billion dollars worth within the first year.[citation needed] The same year, Apple introduced System 7, a major upgrade to the operating system, which added color to the interface and introduced new networking capabilities. It remained the architectural basis for Mac OS until 2001.
The success of the PowerBook and other products led to increasing revenue.[37] For some time, it appeared that Apple could do no wrong, introducing fresh new products and generating increasing profits in the process. The magazine MacAddict has named the period between 1989 and 1991 as the "first golden age" of the Macintosh.
Following the success of the LC, Apple introduced the Centris line, a low end Quadra offering, and the ill-fated Performa line that was sold in several confusing configurations and software bundles to avoid competing with the various consumer outlets such as Sears, Price Club, and Wal-Mart, the primary dealers for these models. The result was disastrous for Apple as consumers did not understand the difference between models.
During this time Apple experimented with a number of other failed consumer targeted products including digital cameras, portable CD audio players, speakers, video consoles, and TV appliances. Enormous resources were also invested in the problem-plagued Newton division based on John Sculley's unrealistic market forecasts. Ultimately, all of this proved too-little-too-late for Apple as their market share and stock prices continued to slide.
Apple saw the Apple II series as too expensive to produce, while taking away sales from the low end Macintosh.[40] In 1990 Apple released the Macintosh LC with a single expansion slot for the Apple IIe Card to migrate Apple II users to the Macintosh platform.[41] Apple stopped selling the Apple IIe in 1993.
Microsoft continued to gain market share with Windows, focusing on delivering software to cheap commodity personal computers while Apple was delivering a richly engineered, but expensive, experience.[42] Apple relied on high profit margins and never developed a clear response. Instead they sued Microsoft for using a graphical user interface similar to the Apple Lisa in Apple Computer, Inc. v. Microsoft Corporation.[43] The lawsuit dragged on for years before being thrown out of court. At the same time, a series of major product flops and missed deadlines destroyed Apple's reputation and Sculley was replaced by Michael Spindler.[44]
1994–1997: Attempts at reinvention
By the early 1990s, Apple was developing alternative platforms to the Macintosh, such as the A/UX. The Macintosh platform was becoming outdated since it was not built for multitasking, and several important software routines were programmed directly into the hardware. In addition, Apple was facing competition from OS/2 and UNIX vendors like Sun Microsystems. The Macintosh would need to be replaced by a new platform, or reworked to run on more powerful hardware.[45]
In 1994, Apple allied with IBM and Motorola in the AIM alliance. The goal was to create a new computing platform (the PowerPC Reference Platform), which would use IBM and Motorola hardware coupled with Apple's software. The AIM alliance hoped that PReP's performance and Apple's software would leave the PC far behind, thus countering Microsoft. The same year, Apple introduced the Power Macintosh, the first of many Apple computers to use IBM's PowerPC processor.[46]
In 1996, Michael Spindler was replaced by Gil Amelio as CEO. Gil Amelio made many changes at Apple, including massive layoffs.[47] After multiple failed attempts to improve Mac OS, first with the Taligent project, then later with Copland and Gershwin, Amelio chose to purchase NeXT and its NeXTSTEP operating system, bringing Steve Jobs back to Apple as an advisor.[48] On July 9, 1997, Gil Amelio was ousted by the board of directors after overseeing a three-year record-low stock price and crippling financial losses. Jobs became the interim CEO and began restructuring the company's product line.
At the 1997 Macworld Expo, Steve Jobs announced that Apple would join Microsoft to release new versions of Microsoft Office for the Macintosh, and that Microsoft made a $150 million investment in non-voting Apple stock.[49]
On November 10, 1997, Apple introduced the Apple Store, tied to a new build-to-order manufacturing strategy.[50][51]
1998–2005: Return to profitability
On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of the Macintosh 128K: the iMac. The iMac design team was led by Jonathan Ive, who would later design the iPod and the iPhone.[52][53] The iMac featured modern technology and a unique design. It sold close to 800,000 units in its first five months and returned Apple to profitability for the first time since 1993.[54]
Through this period, Apple purchased several companies to create a portfolio of professional and consumer-oriented digital production software. In 1998, Apple announced the purchase of Macromedia's Final Cut software, signaling its expansion into the digital video editing market.[55] The following year, Apple released two video editing products: iMovie for consumers, and Final Cut Pro for professionals, the latter of which has gone on to be a significant video-editing program, with 800,000 registered users in early 2007.[56] In 2002 Apple purchased Nothing Real for their advanced digital compositing application Shake,[57] as well as Emagic for their music productivity application Logic, which led to the development of their consumer-level GarageBand application.[58][59] iPhoto's release the same year completed the iLife suite.[60]
Mac OS X, based on NeXT's OPENSTEP and BSD Unix was released on March 24, 2001, after several years of development. Aimed at consumers and professionals alike, Mac OS X aimed to combine the stability, reliability and security of Unix with the ease of use afforded by an overhauled user interface. To aid users in migrating from Mac OS 9, the new operating system allowed the use of OS 9 applications through Mac OS X's Classic environment.[61]
On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California.[62] The same year, Apple introduced the iPod portable digital audio player. The product was phenomenally successful — over 100 million units were sold within six years.[63][64] In 2003, Apple's iTunes Store was introduced, offering online music downloads for $0.99 a song and integration with the iPod. The service quickly became the market leader in online music services, with over 5 billion downloads by June 19, 2008.[65]
Since 2001 Apple's design team has progressively abandoned the use of translucent colored plastics first used in the iMac G3. This began with the titanium PowerBook and was followed by the white polycarbonate iBook and the flat-panel iMac.[66][67]
2005–present: The Intel partnership
Main article: Apple Intel transition
At the Worldwide Developers Conference keynote address on June 6, 2005, Steve Jobs announced that Apple would begin producing Intel-based Mac computers in 2006.[68] On January 10, 2006, the new MacBook Pro and iMac became the first Apple computers to use Intel's Core Duo CPU. By August 7, 2006 Apple had transitioned the entire Mac product line to Intel chips, over 1 year sooner than announced.[68] The Power Mac, iBook, and PowerBook brands were retired during the transition; the Mac Pro, MacBook, and MacBook Pro became their respective successors.[69][70]. On April 29, 2009, The Wall Street Journal reported that Apple was building its own team of engineers to design microchips.[71]
Apple also introduced Boot Camp to help users install Windows XP or Windows Vista on their Intel Macs alongside Mac OS X.[72]
Apple's success during this period was evident in its stock price. Between early 2003 and 2006, the price of Apple's stock increased more than tenfold, from around $6 per share (split-adjusted) to over $80. In January 2006, Apple's market cap surpassed that of Dell.[73] Nine years prior, Dell's CEO Michael Dell said that if he ran Apple he would "shut it down and give the money back to the shareholders."[74]
Although Apple's market share in computers has grown, it remains far behind competitor Microsoft, with only about 8 percent of desktops and laptops in the U.S.[75]
Delivering his keynote at the Macworld Expo on January 9, 2007, Steve Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc. The event also saw the announcement of the iPhone and the Apple TV.[76] The following day, Apple shares hit $97.80, an all-time high at that point. In May, Apple's share price passed the $100 mark.[77]
On February 6, 2007, Apple indicated that it would sell music on the iTunes Store without DRM (which would allow tracks to be played on third-party players) if record labels would agree to drop the technology.[78] On April 2, 2007, Apple and EMI jointly announced the removal of DRM technology from EMI's catalog in the iTunes Store, effective in May.[79]
On July 11, 2008, Apple launched the App Store to sell third-party applications for the iPhone and iPod Touch.[80] Within a month, the store sold 60 million applications and brought in $1 million daily on average, with Steve Jobs speculating that the App Store could become a billion-dollar business for Apple.[81] Three months later, it was announced that Apple had become the third-largest mobile handset supplier in the world due to the popularity of the iPhone.[82]
On December 16, 2008, Apple announced 2009 would be the last year Apple would be attending the Macworld Expo, and that Phil Schiller would deliver the 2009 keynote in lieu of the expected Steve Jobs.[83]
On January 14, 2009, an internal Apple memo from Steve Jobs announced that he would be taking a six-month leave of absence, until the end of June 2009, to allow him to better focus on his health and to allow the company to better focus on its products.[84] Despite Steve Jobs' absence, Apple recorded its best non-holiday quarter (Q1 FY 2009) during the recession with a revenue of $8.16 billion and a profit of $1.21 billion.[85]
Current products
Mac and accessories
See also: Timeline of Macintosh models, List of Macintosh models grouped by CPU type, and List of Macintosh models by case type
- Mac mini, consumer sub-desktop computer and server introduced in January 2005.
- iMac, consumer all-in-one desktop computer that was first introduced by Apple in 1998. Its popularity helped revive the company's fortunes.[54]
- Mac Pro, workstation-class desktop computer introduced in August 2006. It replaced the Power Macintosh.
- MacBook, consumer notebook introduced in 2006. It replaced the iBook.
- MacBook Air, ultra-thin, ultra-portable notebook, introduced in January 2008.
- MacBook Pro, professional portable computer alternative to the MacBook, available in 13, 15, and 17 inch variants, introduced in January 2006. It replaced the PowerBook.
- Xserve, rack mounted, dual or quad core, dual processor 1U server.
Apple sells a variety of computer accessories for Mac computers including the AirPort wireless networking products, Time Capsule, Cinema Display, Magic Mouse, the Apple Wireless Keyboard computer keyboard, and the Apple USB Modem.
iPod
Main article: iPod
On October 23, 2001, Apple introduced the iPod digital music player. It has evolved to include various models targeting the wants of different users. The iPod is the market leader in portable music players by a significant margin, with more than 220 million units shipped as of September 9, 2009.[86] Apple has partnered with Nike to offer the Nike+iPod Sports Kit enabling runners to synchronize and monitor their runs with iTunes and the Nike+ website. Apple currently sells four variants of the iPod.
- iPod Classic (previously named iPod from 2001 to 2007), portable media player first introduced in 2001, currently available in a 160 GB model.
- iPod Nano, portable media player first introduced in 2005, currently available in 8 and 16 GB models. The newest generation has a 640x480 video camera (H.264, 30FPS) and a FM tuner with live pause and iTunes Tagging.
- iPod Shuffle, digital audio player first introduced in 2005, currently available in 2 and 4 GB models.
- iPod Touch, portable media player first introduced in September 2007. Currently available in 8, 32, and 64GB models. The 32 and 64GB Gen 3 models feature a faster processor and include voice control and an external microphone.
iPhone
Main article: iPhone
At the Macworld Conference & Expo in January 2007, Steve Jobs revealed the long anticipated[87] iPhone, a convergence of an Internet-enabled smartphone and iPod.[88] The original iPhone combined a 2.5G quad band GSM and EDGE cellular phone with features found in hand held devices, running a scaled-down versions of Apple's Mac OS X (dubbed iPhone OS), with various Mac OS X applications such as Safari and Mail. It also includes web-based and Dashboard apps such as Google Maps and Weather. The iPhone features a 3.5-inch (89 mm) touch screen display, 4, 8, or 16 GB of memory, Bluetooth, and Wi-Fi (both "b" and "g").[88] The iPhone first became available on June 29, 2007 for $499 (4 GB) and $599 (8 GB) with an AT&T contract.[89] On February 5, 2008, Apple updated the original iPhone to have 16 GB of memory, in addition to the 8 GB and 4 GB models[90]. On June 9, 2008, at WWDC 2008, Steve Jobs announced that the iPhone 3G would be available on July 11, 2008.[91] This version added support for 3G networking, assisted-GPS navigation, and a price cut to $199 for the 8 GB version, and $299 for the 16 GB version, which was available in both black and white. The new version was visually different from its predecessor in that it eliminated the flat silver back, and large antenna square for a curved glossy black or white back. Following complaints from many people, the headphone jack was changed from a recessed jack to a flush jack to be compatible with more styles of headphones. The software capabilities changed as well, with the release of the new iPhone came the release of Apple's App Store; the store provided applications for download that were compatible with the iPhone. On April 24, 2009, the App Store surpassed one billion downloads.[92] On June 8, 2009, at Apple's annual worldwide developers conference, the iPhone 3GS was announced, providing an incremental update to the device including faster internal components, support for faster 3G speeds, video recording capability, and voice control.
- iPhone 3G, currently available in an 8 GB model.
- iPhone 3GS, currently available in 16 and 32 GB models.
Apple TV
Main article: Apple TV
At the 2007 Macworld conference, Jobs demonstrated the Apple TV, (previously known as the iTV),[93] a set-top video device intended to bridge the sale of content from iTunes with high-definition televisions. The device links up to a user's TV and syncs, either via Wi-Fi or a wired network, with one computer's iTunes library and streams from an additional four. The Apple TV originally incorporated a 40 GB hard drive for storage, includes outputs for HDMI and component video, and plays video at a maximum resolution of 720p.[94] On May 31, 2007 a 160 GB drive was released alongside the existing 40 GB model[95] and on January 15, 2008 a software update was released, which allowed media to be purchased directly from the Apple TV.[96] In September 2009, Apple discontinued the original 40GB Apple TV and now continues to produce and sell the 160GB Apple TV.
Software
See also: List of Macintosh software
Apple develops its own operating system to run on Macs, Mac OS X, the latest version being Mac OS X v10.6 Snow Leopard. Apple also independently develops computer software titles for its Mac OS X operating system. Much of the software Apple develops is bundled with its computers. An example of this is the consumer-oriented iLife software package that bundles iDVD, iMovie, iPhoto, iTunes, GarageBand, and iWeb. For presentation, page layout and word processing, iWork is available, which includes Keynote, Pages, and Numbers. iTunes, QuickTime media player, Safari web browser, and Software Update are available as free downloads for both Mac OS X and Windows.
Apple also offers a range of professional software titles. Their range of server software includes the operating system Mac OS X Server; Apple Remote Desktop, a remote systems management application; WebObjects, Java EE Web application server; and Xsan, a Storage Area Network file system. For the professional creative market, there is Aperture for professional RAW-format photo processing; Final Cut Studio, a video production suite; Logic, a comprehensive music toolkit and Shake, an advanced effects composition program.
Apple also offers online services with MobileMe (formerly .Mac) that bundles personal web pages, email, Groups, iDisk, backup, iSync, and Learning Center online tutorials. MobileMe is a subscription-based internet suite that capitalizes on the ability to store personal data on an online server and thereby keep all web-connected devices in sync.[97] Announced at MacWorld Expo 2009, iWork.com allows iWork users to upload documents for sharing and collaboration.
Timeline of Apple products
- Products on this timeline indicate introduction dates only and not necessarily discontinued dates, as new products begin on a contiguous product line.
Culture
Corporate
Apple was one of several highly successful companies founded in the 1970s that bucked the traditional notions of what a corporate culture should look like in terms of organizational hierarchy (flat versus tall, casual versus formal attire, etc.). Other highly successful firms with similar cultural aspects from the same period include Southwest Airlines and Microsoft. Originally, the company stood in opposition to staid competitors like IBM more or less by default, thanks to the influence of its founders; Steve Jobs often walked around the office barefoot even after Apple was a Fortune 500 company. By the time of the "1984" TV ad, this trait had become a key way the company attempts differentiated itself from its competitors.[98]
As the company has grown and been led by a series of chief executives, each with his own idea of what Apple should be, some of its original character has arguably been lost, but Apple still has a reputation for fostering individuality and excellence that reliably draws talented people into its employ, especially after Jobs' return. To recognize the best of its employees, Apple created the Apple Fellows program. Apple Fellows are those who have made extraordinary technical or leadership contributions to personal computing while at the company. The Apple Fellowship has so far been awarded to a few individuals including Bill Atkinson,[99] Steve Capps,[100] Rod Holt,[99] Alan Kay,[101][102] Guy Kawasaki,[101][103] Al Alcorn,[104] Don Norman,[101] Rich Page,[99] and Steve Wozniak.[99]
Users
According to surveys by J. D. Power, Apple has the highest brand and repurchase loyalty of any computer manufacturer. While this brand loyalty is considered unusual for any product, Apple appears not to have gone out of its way to create it. At one time, Apple evangelists were actively engaged by the company, but this was after the phenomenon was already firmly established. Apple evangelist Guy Kawasaki has called the brand fanaticism "something that was stumbled upon".[105] Apple has, however, supported the continuing existence of a network of Mac User Groups in most major and many minor centers of population where Mac computers are available.
Mac users meet at the European Apple Expo and the San Francisco Macworld Conference & Expo trade shows where Apple traditionally introduced new products each year to the industry and public. Mac developers in turn gather at the annual Apple Worldwide Developers Conference.
Apple Store openings can draw crowds of thousands, with some waiting in line as much as a day before the opening or flying in from other countries for the event.[106] The New York City Fifth Avenue "Cube" store had a line as long as half a mile; a few Mac fans took the opportunity of the setting to propose marriage.[107] The Ginza opening in Tokyo was estimated in the thousands with a line exceeding eight city blocks.[108]
John Sculley told The Guardian newspaper in 1997: "People talk about technology, but Apple was a marketing company. It was the marketing company of the decade."[109]
Market research indicates that Apple draws its customer base from an unusually artistic, creative, and well-educated population, which may explain the platform’s visibility within certain youthful, avant-garde subcultures.[110]
Corporate affairs
Apple has a history of vertical integration in their products, manufacturing the hardware on which they pre-install their software.[citation needed]
During the Mac's early history Apple generally refused to adopt prevailing industry standards for hardware, instead creating their own.[111] This trend was largely reversed in the late 1990s beginning with Apple's adoption of the PCI bus in the 7500/8500/9500 Power Macs. Apple has since adopted USB, AGP, HyperTransport, Wi-Fi, and other industry standards in its computers and was in some cases a leader in the adoption of standards such as USB.[112] FireWire is an Apple-originated standard that has seen widespread industry adoption after it was standardized as IEEE 1394.[113]
Ever since the first Apple Store opened, Apple has sold third party accessories.[114] This allows, for instance, Nikon and Canon to sell their Mac-compatible digital cameras and camcorders inside the store. Adobe, one of Apple's oldest software partners,[115] also sells its Mac-compatible software, as does Microsoft, who sells Microsoft Office for the Mac. Books from John Wiley & Sons, who publishes the For Dummies series of instructional books, are a notable exception, however. The publisher's line of books were banned from Apple Stores in 2005 because Steve Jobs disagreed with their editorial policy.[116]
Headquarters
Main article: Infinite Loop (street)
Apple Inc.'s world corporate headquarters are located in the middle of Silicon Valley, at 1 Infinite Loop, Cupertino, California. This Apple campus has six buildings that total 850,000 square feet (79,000 m2) and was built in 1993 by Sobrato Development Cos.[117]
In 2006, Apple announced its intention to build a second campus on 50 acres (200,000 m2) assembled from various contiguous plots. The new campus, also in Cupertino, will be about 1 mile (1.6 km) east of the current campus.[118]
CEOs
- 1977–1981: Michael "Scotty" Scott
- 1981–1983: A. C. "Mike" Markkula
- 1983–1993: John Sculley
- 1993–1996: Michael Spindler
- 1996–1997: Gil Amelio
- 1997-present: Steve Jobs (Interim CEO 1997–2000)
- 2004 & 2009: Tim Cook (Acting CEO during Steve Jobs health issues)
Directors
See also: Category:Directors of Apple Inc.
- Bill Campbell, Chairman of Intuit Inc.
- Millard Drexler, Chairman and CEO of J.Crew
- Al Gore, Former Vice President of the United States
- Steve Jobs, CEO and Co-founder of Apple; also a director of The Walt Disney Company
- Andrea Jung, Chairman and CEO of Avon Products
- Arthur D. Levinson, Chairman and CEO of Genentech
- Jerry York, Chairman, President, and CEO of Harwinton Capital
Executives
See also: Category:Apple Inc. executives
- Steve Jobs, Chief Executive Officer
- Timothy D. Cook, Chief Operating Officer
- Peter Oppenheimer, Chief Financial Officer
- Philip W. Schiller, Senior Vice President of Worldwide Product Marketing
- Mark Papermaster, Senior Vice President of Devices Hardware Engineering
- Jonathan Ive, Senior Vice President of Industrial Design
- Bertrand Serlet, Senior Vice President of Software Engineering
- Ron Johnson, Senior Vice President of Retail
- Sina Tamaddon, Senior Vice President of Applications
- Scott Forstall, Senior Vice President of iPhone Software
- Bob Mansfield, Senior Vice President Mac Hardware
- Daniel Cooperman, General Counsel and Secretary
Employees
See also: Category:Apple Inc. employees
Since formation of the Apple Computer Company in 1977, it (as Apple Computer, Inc.) has employed over 75,000 people worldwide. The majority of Apple's employees have been located in the United States but Apple has substantial manufacturing, sales, marketing, and support organizations worldwide, with some engineering operations in Paris and Tokyo.
Apple employees include employees of companies acquired by Apple as well as subsidiaries such as FileMaker Inc. and Braeburn Capital.
Advertising
Main article: Apple Inc. advertising
Since the introduction of the Macintosh in 1984 with the 1984 Super Bowl commercial to the more modern 'Get a Mac' adverts, Apple has been recognized in the past for its efforts towards effective advertising and marketing for its products, though it has been criticized for the claims of some more recent campaigns, particularly 2005 Power Mac ads[119][120][121] and iPhone ads in Britain.
Logos
- See also: U+F8FF or , seen as the Apple logo in some fonts.
Apple’s first logo, designed by Jobs and Wayne, depicts Sir Isaac Newton sitting under an apple tree. Almost immediately, though, this was replaced by Rob Janoff’s “rainbow Apple”, the now-familiar rainbow-colored silhouette of an apple with a bite taken out of it. Janoff presented Jobs with several different monochromatic themes for the "bitten" logo, and Jobs immediately took a liking to it. While Jobs liked the logo, he insisted it be in color, as a way to humanize the company.[122][123]
The original hand drawn logo features Sir Isaac Newton, and one theory states that the symbol refers to his discoveries of gravity (the apple) and the separation of light by prisms (the colors). Another explanation exists that the bitten apple pays homage to the mathematician Alan Turing, who committed suicide by eating an apple he had laced with cyanide.[124] Turing is regarded as one of the fathers of the computer. The rainbow colors of the logo were rumored to be a reference to the rainbow flag, as a homage to Turing's homosexuality.[125]
However, Rob Janoff stated in an interview that the alternate theories are all wonderful urban legends, but, unfortunately, "B.S." The Apple logo was designed with a bite for scale, so that people would recognise that it was an apple, not a cherry, and the rainbow color was not a coded reference to homosexuality or prism light, but was conceived to make the logo more accessible and represent the fact the monitor could reproduce images in color [126].
In 1998, with the roll-out of the new iMac, Apple discontinued the rainbow theme — supposedly at the insistence of recently returned Jobs — and began to use monochromatic themes, nearly identical in shape to its previous rainbow incarnation. However, no specific color is prescribed throughout Apple's software and hardware line. The logo's shape is one of the most recognized brand symbols in the world, identifies all Apple products and retail stores (the name "Apple" is not even present) and has been included as stickers in nearly all Macintosh and iPod packages through the years.
 The original Apple logo featuring Isaac Newton under the fabled apple tree. |
 The rainbow "bitten" logo, used from late 1976 until replaced in 1998 by monochrome themes. |
 The monochrome-themed logo maintained the same shaped as the rainbow theme it replaced. It is still used and often appears in various colors on various products, such as packaging and advertisements in 2003. An Aqua themed version of this logo was used from 2001 through 2003, and a "glass" themed version from 2003 on. |
Slogans
Main article: List of Apple Inc. slogans
Apple's first slogan, "Byte into an Apple", was coined in the late 1970s.[127] From 1997–2002, Apple used the slogan Think Different in advertising campaigns. The slogan had a lasting impact on their image and revived their popularity with the media and customers. Although the slogan has been retired, it is still closely associated with Apple.[128] Apple also has slogans for specific product lines — for example, "iThink, therefore iMac", was used in 1998 to promote the iMac,[129] and "Say hello to iPhone" has been used in iPhone advertisements.[130] "Hello" was also used to introduce the original Macintosh, Newton, iMac ("hello (again)"), and iPod.[citation needed]
Commercials
See also: 1984 (advertisement), Lemmings (advertisement), iPod advertising, and music used by Apple Inc.
Apple’s product commercials are notorious for launching musicians into stardom as a result of their eye-popping graphics and catchy tunes.[131] First, the company popularized Canadian singer Feist’s “1234” song in its ad campaign.[131] Then Apple used the song “New Soul” by French-Israeli singer-songwriter Yael Naim to promote the MacBook Air.[131] The debut single shot to the top of the charts and sold hundreds of thousands of copies in a span of weeks.[131]
Environmental record
Greenpeace, an environmentalist organization, has confronted Apple on various environmental issues, including promoting a global end-of-life take-back plan, non-recyclable hardware components, and toxins within the iPhone hardware.[132][133] Since 2003 they have campaigned against Apple regarding their chemical policies, in particular the inclusion of PVC and BFRs in their products, both of which have serious negative health effects.[132] On May 2, 2007, Steve Jobs released a report announcing plans to completely eliminate PVC and BFRs by the end of 2008.[134][135]
Greenpeace runs a "Guide to Greener Electronics", which rates companies on chemical-disposal waste-reduction practices. In the first edition, released in August 2006, Apple scored 2.7/10.[136] In subsequent editions Apple's score has improved steadily.[137][138][139][140] Apple has soon improved its score to a 4.1/10, placing it in the 45th percentile among 17 other electronic companies and 10th in the rankings.[141]
At the 2007 Macworld Expo, Greenpeace presented a critique of Apple. Rick Hind, the legislative director of Greenpeace's toxics campaign, said, "(The company) is getting greener, but not green enough." Hind commented further, "The Macbook Air has less toxic PVC plastic and less toxic BFRs, but it could have zero and that would make Apple an eco-leader."[142]
In May 2008, Climate Counts, a nonprofit organization dedicated to directing consumers toward the greenest companies, gave Apple 11 points out of a possible 100, which placed the company last among electronics companies. Climate Counts also labeled Apple with a "stuck icon," and the environmental group added that Apple was "a choice to avoid for the climate conscious consumer."[143]
The Environmental Protection Agency rates Apple highest amongst producers of notebook computers, and fairly well compared to producers of desktop computers and LCD displays.[144][145]
In June 2007 Apple upgraded the MacBook Pro, replacing cold cathode fluorescent lamp (CCFL) backlit LCD displays with mercury-free LED backlit LCD displays and arsenic-free glass,[146] and has since done this for all notebooks. Apple has also phased out BFRs and PVCs from various internal components.[134][147][148] Apple also offers detailed information about the emissions, materials, and electrical usage of each product.[149] Apple has also begun to advertise how environmentally friendly their new laptops are with television spots and magazine ads along with stating these facts on their website.[citation needed]
In October 2009 Apple upgraded the iMac, replacing the cold cathode fluorescent lamp (CCFL) backlit LCD displays with mercury-free LED backlit LCD displays and arsenic-free glass.[150]
Criticism
Main article: Criticism of Apple
Apple has been criticized from both user and developer perspectives over disabling Google Voice from their online store for iPhone,[151] pressuring journalists to reveal their sources regarding future Apple products,[152] restrictive and long wait in approving or disapproving third party iPhone software, disabling iTunes syncing with third-party devices like Palm Pre, and the iPhone's US exclusivity with AT&T, along with questions and concerns about other app rejections and the general approval process for the iPhone's App Store[153]. Philip W. Schiller, senior vice president of Apple's Worldwide Product Marketing, has tried to address many of the App Store concerns by sending letters to the respective developers[153].
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- History
- Rob Price (1987). "So Far: The First Ten Years of a Vision". Apple Computer. ISBN 1-55693-974-4.
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Further reading
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Learning resources from Wikiversity- Gil Amelio, William L. Simon (1999), On the Firing Line: My 500 Days at Apple ISBN 0-88730-919-4
- Jim Carlton, Apple: The Inside Story of Intrigue, Egomania and Business Blunders ISBN 0-88730-965-8
- Alan Deutschman (2000), The Second Coming of Steve Jobs, Broadway, ISBN 0-76790-432-X
- Andy Hertzfeld (2004), Revolution in the Valley, O'Reilly Books ISBN 0-596-00719-1
- Paul Kunkel, AppleDesign: The Work of the Apple Industrial Design Group ISBN 1-888001-25-9
- Steven Levy (1994), Insanely Great: The Life and Times of Macintosh, the Computer That Changed Everything ISBN 0-14-029177-6
- Owen Linzmayer (2004), Apple Confidential 2.0, No Starch Press ISBN 1-59327-010-0
- Michael S. Malone (1999), Infinite Loop ISBN 0-385-48684-7
- Frank Rose (1990), West of Eden: The End of Innocence at Apple Computer, Penguin Books ISBN 0-14-009372-9
- John Sculley, John A. Byrne (1987) Odyssey: Pepsi to Apple, HarperCollins, ISBN 0-06-015780-1
- Steve Wozniak, Gina Smith (2006), iWoz: From Computer Geek to Cult Icon: How I Invented the Personal Computer, Co-Founded Apple, and Had Fun Doing It, W. W. Norton & Company, ISBN 0-393-06143-4
- Jeffrey S. Young (1988). Steve Jobs, The Journey is the Reward, Lynx Books, ISBN 1-55802-378-X
- Jeffrey S. Young, William L. Simon (2005), iCon Steve Jobs: The Greatest Second Act in the History of Business, John Wiley & Sons, ISBN 0-47172-083-6
External links
- Apple Inc.
- Apple Inc. Hoover's Factsheet
- Apple Inc. company profile — Google Finance
- Apple in Depth Archive by The Daily Telegraph
- Apple Founder speech
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