• Steve Jobs & Steve Wozniak started a company
with its product Apple I on 1st April 1976
• Limitations of Apple I-no case,keyboard,power
supply,hours of assembly by hands
• Apple II – 1978 Macintosh – 1984
• Apple II came out with a critical innovation to
insert a disk drive
• By 1980 1,00,000 Apple II were sold making them
leader in embryonic market
Apple III was launched in 1980-failure
Market Share fluctuated from 7% -9%-4%
In 1985 Steve Jobs was fired
By 2006 Apple bounced back & did record
iPod music player, music downloading from
iTunes, MacBook laptop
• IBM had a huge and very profitable mainframe computer
business, but it had so far failed to develop a PC.
• 3rd PC project of IBM – Adopted an “Open Architecture.”
• 1891- IBM PC was instant success.
• Next 2 years IBM would sell more than 500000 PCs, seizing
market leadership from Apple.
• As a sale of IBM PC mounted 2 things happened –
1. Independent software developers started to write programs
to run on the IBM PC.
2. The success of IBM gave birth to clone manufacturers .
• Clone Maker-
1983 – Compaq , 1st and successful.
Tandy, Zenith, Leading Edge, Dell.
• 1980 – Important projects underway at apple
1. Lisa – High end business machine.
2. Macintosh – Low end portable.
• Jobs was astounded by what he saw at PARC
(Palo Alto Research Center) and decided that
these innovations had to be incorporated into
• Pushed the Lisa tem to implement PARC’s
Sculley shut down the Lisa Line.
Apple’s domination of desktop publishing market.
1985-Apple licensed PostScript.
Apple allowed customers to “Plug and Play.”
1990 – Apple was the most profitable PC
manufacturer in the world.
In 1990 Microsoft introduced Windows 3.1
and Apple’s differential appeal of GUI
began to erode.
Windows OS became dominant in the
market and Mac OS turned to niche player
The Company was on a glide path to
Appointed himself Chief Technology Officer in
addition to CEO.
To bring out low cost version of the Macintosh
(Mac Classic) and cut prices by 30% of Apple II .
Cut Costs by reducing workforce
Maintain technological lead by introducing new
products in every 6-12 months.
Alliance with IBM
The game plan helped to boost top line but bottom
line reduced .In 1994 Sculley left Apple.
To license the Mac OS to other computer makers.
Committed for Next generation OS for Macintosh.
Suggested to cut 23% workforce.
Gross margin slide to 15 % down from 29% in 1994.
Apple lost $68 million.
Followed through Spindler’s plan
Apple purchased NeXT , the computer company
founded by Steve Job’s.
The Company booked a loss of $742 million in 1996
and was on track to loose another $400 million in
Amelio was fired in July 1997.
Steve Job was appointed as CEO after Amelio.
Ended licensing deal with clone makers.
Killed slow selling Products
Pushed company into online distribution
Came out with new offerings
This brought favorable reaction from stock market.
New offerings from Apple created the history.
New product design came i.e. combination of
monitor and CPU unit
And Apple company name it as “ iBook ” & a
New “ i Mac” .
Made attractive & exciting design of machine
also with different colors in iMac
Apple invested more in development of new
Came with new OS i.e. OS X ( a
Apple OS were facing problem of
compatibility with windows and Intel chips
Apple introduced its Intel compatible version
Also invent a software program “Rosetta”
and utility program called “Boot camp ”
Apple’s Intel based machines were more
faster in operations and portable to handle.
Company opened their retail store in 2001
Uses strategy of third party retailers or
Apple company design its retail stores more
stylish ,clean & also with attractive displays
to impress customers
Steve jobs was also the part of such design