Apple 02 - Early Years

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In early 80s Apple made incredibly user friendly computers that did in one click what other machines required several lines of typed code. A veritable revolution in the computer industry, extended to consumer electronics when Jobs launched the Ipod, Iphone and Ipad.

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Apple 02 - Early Years

  1. 1. Apple Inc. ! ! CIEE Study Center in Palma de Mallorca Entrepreneurship and Innovation Course Pere Joan Ribas Barceló perejoanribas@gmail.com
  2. 2. Xerox Palo Alto Research Center (PARC) Stanford Research Ins8tute San Jose, California Stanford University Environment
  3. 3. Co-­‐founder: Steve Wozniak Wozniak learnt the basis of Mathema8cs and IT with his father who was an engineer. At the age of 13 he had already built his first micro-­‐ computer. Steve Jobs had the idea of commercializing the first computer as a pre-­‐assembled circuit on a mother board. However, it was Wozniak who built it. Wozniak, leP HP in 1976, to co-­‐found with Jobs Apple. Wozniak built the Apple I, a computer capable of showing graphics on the screen. Then he focused on improving the Apple I. The improved computer, Apple II, was commercialised in 1977.
  4. 4. First steps: The Blue Box Jobs and Wozniak in 1975 with a blue box APer reading an ar8cle in a magazine about the possibility of making phone calls for free, Jobs and Wozniak inves8gated how to do it. They found a AT&T manual and built a device to replicate phone tones. Exploi8ng a design mistake, as human to human and machine to machine communica8on where in the same band, if you were able to reply the machine to machine tones, you were able to call for free Wozniak learnt the basis of Mathema8cs and informa8cs with his father (engineer). At the age of 13 he had built his first micro-­‐ computer. Steve Jobs had the idea of commercializing the first computer as a pre-­‐assembled circuit on a mother board. However, it was Wozniak who built it. Wozniak, quit HP in 1976, to co-­‐found with Jobs Apple. Wozniak built the Apple I a computer capable of showing graphics on the screen. Then he focus on improving the Apple I. The improved computer, Apple II, was commercialised in 1977.
  5. 5. First Prototype • As a hobby, Jobs and Wozniak assembled a computer using spare components. • They presented it at the Computer Club in Palo Alto. • Some friends also wanted a computer, but they did not know how to assemble the components. • At that 8me, nobody was selling assembled computers. • Therefore, Steve Jobs and Steve Wozniak, spend days and weeks helping their colleagues. They started offering a service. • By that 8me it took between 40 to 80 hours to put a computer up and running from different pieces.
  6. 6. The Product: Apple I • Business opportunity: Pu]ng a computer together was 8me consuming. Therefore, Jobs thought about assembling all the components in a plas8c surface, a circuit board, and sell it. • They went to a computer shop in Palo Alto where they got their first order: 50 assembled circuit boards. • They bought enough components to produce 100 mother boards, and they sold the 50 to the shop twice the price of all the components. • So they kept 50 fully assembled devices for them. However, they did not have cash, only goods. Therefore, they started contac8ng computer shops all over USA to sell the remaining 50 computers.
  7. 7. Financing The company was iniEally financed with $1,300 raised by selling Job's Volkswagen and Wozniak’s calculator. They needed addiEonal capital to expand the company and started to look for funding.
  8. 8. Venture Capital • Jobs wanted to improve the product. He wanted to offer colour graphics and other improvements. • Jobs met a re8red Project Manager from Intel willing to invest (Mike Markkula). Jobs brought him on board. Steve-­‐Jobs and Mike Markkula, 1977
  9. 9. InnovaEon: Apple II • Together with the $250.000 invested by Markkula, they improved the Apple I and hired a designer to design the plas8c envelope to protect the internal circuits of the Apple II. • When they went to the West Coast Computer Fair, their product was by far the best one in the show. • And this computer possibly had the best Personal Computers graphics on the market.
  10. 10. Target user: Hobbyists • What made the difference was that for the first 8me a person could use a computer without knowing anything about hardware. • It was a REVOLUTION FOR THE END USER. • This device was opening the market for soPware hobbyists (people willing to use the soPware).
  11. 11. Apple Goes Public The company had a tremendous success. By late 1980, Apple Computer had been a private company for three years. Apple’s partners decided to take their company to Wall Street and put Apple on the stock market, making it a publicly-­‐held company. It went public in 1980 and Jobs & Wozniak became millionaires. Steve was 21 years old.
  12. 12. End of chapter one End of the 1st chapter
  13. 13. Bibliography Inside Apple, Adam Lashinsky (2012) Steve Jobs, Karen Blumenthal (2012) The Apple Experience, Carmine Gallo (2012) Steve Jobs: Ten Lessons in Leadership (2012) Steve Jobs, Walter Isaacson, (2011) Steve Jobs: Revolu8onary, Chris Anderson (2011) The innova8on Secrets of Steve Jobs (2010) Apple Confiden8al 2.0, Owen Linzmayer (2004) Jony Ive: The Genius Behind Apple's Greatest Products (2014)
  14. 14. Videos • Steve Jobs: How to live before you die • Entrepreneurs (1986), TV Documentary • Steve Jobs The Lost Interview (2012), Documentary • Steve Jobs: One Last Thing (2011), Documentary • Steve Jobs: Billion Dollar Hippy, BBC Documentary • Steve Jobs and Bill Gates Together in 2007 at D5 • Interview: Steve Jobs in 2010 at D8
  15. 15. Internet companies series!

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