In April 1976, a young Steve Jobs and Steve Wozniak founded Apple Computer Co. in Silicon Valley. They were ambitious enough to believe they could change the world. On April Fools’ Day, these two unlikely partners took the first step in their journey to revolutionize technology by signing a simple two-page agreement.
Jobs, only 21 years old and a college dropout, built this company alongside Wozniak, a 25-year-old employee of Hewlett-Packard. Each held 45% ownership, while 41-year-old advisor Ron Wayne held the remaining 10%. Initially, the startup faced challenges and even saw Wayne selling his stake for $2,300. This decision cost him significantly, as Apple’s current market value stands at $3.7 trillion, turning his missed opportunity into a $370 billion error.
Apple’s journey wasn’t smooth. It struggled considerably, nearly collapsing before evolving into a powerhouse. After a tumultuous split with Jobs in 1985, a game-changing deal brought him back in 1997. Reluctantly, he returned to the helm as CEO, where he developed innovations like the iPod, iPhone, and iPad during a decade of relentless progress.
The Astounding Ascent
Apple’s first major triumph came in June 1977 with the Apple II, priced at $1,298, equivalent to about $7,000 today. As sales flourished, Apple went public in 1980 at $22 per share. Accounting for stock splits, investing $2,200 for 100 shares then would now be worth over $5.5 million.
Apple’s momentum continued with the release of the Macintosh in 1984. Introduced during the Super Bowl, the Macintosh featured the first widely used computer mouse and a graphical interface. While its retail price of $2,500 (nearly $7,900 today) reduced sales, the innovative ad captivatingly transformed Super Bowl commercials into a fundamental element of popular culture.
A power struggle ensued between Jobs and Apple CEO John Sculley, whom Jobs recruited from PepsiCo in 1983. Their relationship deteriorated, and by 1985, the board supported Sculley, causing Jobs to leave and sell almost all his Apple stock.
The Jobless Descent
Without Jobs, Apple still achieved success with new Mac versions under Sculley’s leadership. However, lower-priced PCs running Microsoft software posed significant competition. A seven-year legal battle ended in 1994 with a Supreme Court ruling against Apple’s copyright claims. Apple replaced a fired Sculley with Michael Spindler in 1993, and later with Gil Amelio in 1996, both of whom managed unsuccessfully to stabilize the company.
An unexpected decision to acquire the NeXT operating system for $428 million helped the situation. This NeXT system came from Jobs’ startup after leaving Apple, highlighting its importance to the company’s recovery.
The Remarkable Resurrection
Initially uninterested in returning, Jobs intended to serve only as a temporary advisor. His plans halted when Apple replaced Amelio in July 1997, allowing Jobs to lead an unprecedented turnaround. By August, Jobs reconciled with Microsoft’s Bill Gates, securing a $150 million investment to boost Apple. The development of the iMac followed, characterized by a unique design and embodying the “internet, individual, instruct, inform, and inspire” ethos.
October 2001 introduced the iPod, a device capable of storing 1,000 songs. The iconic product led to the sale of 450 million units and reshaped music consumption, transitioning away from CDs and nurturing the streaming industry.
In January 2007, Jobs surprised audiences with the debut of the iPhone. Combining an iPod, phone, and internet communicator, the iPhone has since sold over 3 billion units and represents over half of Apple’s annual revenue of $416 billion. Despite Jobs’ passing in 2011, Apple’s worth increased; under CEO Tim Cook’s leadership, it reached over $3.5 trillion—a testament to his role in preserving Jobs’ legacy.
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