Fifty years ago, two unlikely friends came together with a shared vision to impact the world. Steve Jobs, a 21-year-old college dropout, and Steve Wozniak, a 25-year-old engineer from Hewlett-Packard, founded Apple Computer Co. on April 1, 1976. With a two-page partnership agreement, they each secured a 45% stake in the company, leaving the remaining 10% to advisor Ron Wayne.
Apple’s beginnings were humble and fraught with challenges. They built their first personal computer in the Los Altos home of Jobs’ parents. Faced with early struggles, Ron Wayne sold his stake for $2,300, a decision that ultimately cost him billions as Apple’s valuation skyrocketed to $3.7 trillion.
Although early progress was slow, Apple hit a major milestone with the Apple II in June 1977, priced at $1,298. The success led to a public offering in 1980 at $22 per share. Adjusted for stock splits, a $2,200 investment then would equate to over $5.5 million now.
The Rise and Challenges
On January 24, 1984, Jobs introduced the Macintosh, featuring a computer mouse and graphical interface, following a captivating Super Bowl ad. Despite its innovations, the Macintosh’s steep price of $2,500 and disappointing sales resulted in layoffs and friction at the top.
Tensions mounted between Jobs and CEO John Sculley, leading to Jobs’ resignation in 1985. Despite introducing popular Mac versions, Apple saw a decline as lower-priced PCs gained market traction.
Turning Points
Amid financial difficulties, Apple turned to its board for new leadership, appointing Gil Amelio as CEO in 1996. His tenure saw limited success except for acquiring NeXT, Steve Jobs’ startup, for $428 million.
Jobs returned to Apple in 1997 initially as an advisor. But after CEO Amelio’s firing, Jobs orchestrated a remarkable turnaround. He struck a deal with Microsoft for a $150 million investment, leading to the release of the iMac.
Innovations and Legacy
Under Jobs’ leadership, Apple debuted the iPod in October 2001, revolutionizing music storage and paving the way for music streaming. Jobs’ crowning moment came in 2007 when he introduced the iPhone, merging an iPod, phone, and internet communicator into one device. More than 3 billion iPhones have been sold, contributing significantly to Apple’s revenue.
Steve Jobs passed away in 2011, but his influence persists under Tim Cook’s direction. Though Apple’s subsequent innovations haven’t matched the iPhone’s impact, Cook has successfully overseen Apple’s growth to a valuation ten times that of when Jobs passed.