History of apple inc

1. History of Apple Inc.
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Apple Inc., formerly Apple Computer, Inc., is a multinational corporation that creates consumer
electronics, computer software, and commercial servers. Apple's core product lines are
the iPad, iPhone, iPod music player, and Macintosh computer line-up. Founders Steve
Jobs and Steve Wozniak effectively created Apple Computer on April 1, 1976, with the release of
the Apple I, and incorporated the company on January 3, 1977, in Cupertino, California. For more
than two decades, Apple Computer was predominantly a manufacturer of personal computers,
including the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and low market
share during the 1990s. Jobs, who had been ousted from the company in 1985, returned to become
Apple's CEO in 1996 after his company NeXT was bought by Apple Inc., and he brought with him a
new corporate philosophy of recognizable products and simple design. With the introduction of the
successful iPod music player in 2001, Apple established itself as a leader in the consumer
electronics industry, dropping "Computer" from its name. The latest era of phenomenal success for
the company has been in the iOS range of products that began with the iPhone, iPod Touch and
now iPad. As of 2011, Apple is the largest technology firm in the world, with annual revenues of
more than $60 billion.
[1]

Contents
[hide]

2. 1 1969-1984: Jobs and Wozniak
o 1.1 Pre-foundation
o 1.2 Apple II
o 1.3 Apple III
o 1.4 Apple IPO
o 1.5 Xerox PARC and the Lisa
o 1.6 Macintosh and the "1984" commercial
 1.6.1 1985: Jobs leaves Apple
2 1985-1997: Sculley, Spindler, Amelio
o 2.1 Corporate performance
o 2.2 Apple II family of the 1980s
o 2.3 Mac family
o 2.4 Early-mid 1990s
o 2.5 1996: Return of Steve Jobs
 2.5.1 CEO
 2.5.2 Microsoft deal
3 1998-2001: Apple's renaissance
o 3.1 iMac, iBook, and Power Mac G4
o 3.2 Mac OS X
o 3.3 Retail stores
o 3.4 iPod
4 2002-Present: iTunes, iOS
o 4.1 Intel transition
o 4.2 Apple and "i" Web services
o 4.3 iPod and iTunes store
o 4.4 iOS evolution: iPhone and iPad
o 4.5 Resurgence compared to Microsoft
5 Financial history
o 5.1 Stock
6 Timeline of Apple products
7 See also
8 References

3. 9 Further reading
10 External links
[edit]1969-1984: Jobs and Wozniak
[edit]Pre-foundation

This article needs additional citations for verification. Please help improve this
article by adding citations to reliable sources. Unsourced material may
be challenged and removed. (November 2011)


Garage of Steve Jobs' parents on Crist Drive in Los Altos, California
Steve Jobs and Steve Wozniak had withdrawn from Reed College and UC Berkeley, respectively by
1975. Wozniak designed a video terminal that he could use to log on to the minicomputers at Call
Computer. Alex Kamradt commissioned the design and sold a small number of them through his
firm. Aside from their interest in up-to-date technology, the impetus for "the two Steves" seems to
have had another source. In his essay From Satori to Silicon Valley (published 1986), cultural
historian Theodore Roszak made the point that the Apple Computer emerged from within the West
Coast counterculture and the need to produce print-outs, letter labels, and databases. Roszak offers
a bit of background on the development of the two Steves’ prototype models.
In 1975, Wozniak started attending meetings of the Homebrew Computer Club. New
microcomputers such as the Altair 8800 and the IMSAIinspired him to build a microprocessor into his
video terminal and have a complete computer.
At the time the only microcomputer CPUs generally available were the $179 Intel 8080, and the
$170 Motorola 6800. Wozniak preferred the 6800, but both were out of his price range. So he
watched, and learned, and designed computers on paper, waiting for the day he could afford a CPU.
When MOS Technology released its $20 6502 chip in 1976, Wozniak wrote a version of BASIC for it,
then began to design a computer for it to run on. The 6502 was designed by the same people who
designed the 6800, as many in Silicon Valley left employers to form their own companies. Wozniak's
earlier 6800 paper-computer needed only minor changes to run on the new chip.

4. Wozniak completed the machine and took it to Homebrew Computer Club meetings to show it off. At
the meeting, Wozniak met his old friend Jobs, who was interested in the commercial potential of the
small hobby machines.


The Apple I was sold as an assembled circuit board and lacked basic features such as a keyboard, monitor, and case. The
owner of this unit added a keyboard and a wooden case.


The very first Apple Computer logo, drawn byRonald Wayne, depicts Isaac Newton under an apple tree.


The Apple logo in 1977 created by Rob Janoff with the rainbow color theme used until 1998.

5. Steve Jobs and Steve Wozniak had been friends for some time, having met in 1971, when their
mutual friend, Bill Fernandez, introduced 21-year-old Wozniak to 16-year-old Jobs. Jobs managed to
interest Wozniak in assembling a machine and selling it.
Jobs approached a local computer store, The Byte Shop, who said they would be interested in the
machine, but only if it came fully assembled. The owner, Paul Terrell, went further, saying he would
order 50 of the machines and pay US $500 each on delivery.
[2]
Jobs then took the purchase order
that he had been given from the Byte Shop to Cramer Electronics, a national electronic parts
distributor, and ordered the components he needed to assemble the Apple I Computer. The local
credit manager asked Jobs how he was going to pay for the parts and he replied, "I have this
purchase order from the Byte Shop chain of computer stores for 50 of my computers and the
payment terms are COD. If you give me the parts on a net 30 day terms I can build and deliver the
computers in that time frame, collect my money from Terrell at the Byte Shop and pay you."
[3]

With that, the credit manager called Paul Terrell who was attending an IEEE computer conference at
Asilomar in Pacific Grove and verified the validity of the purchase order. Amazed at the tenacity of
Jobs, Terrell assured the credit manager if the computers showed up in his stores Jobs would be
paid and would have more than enough money to pay for the parts order. The two Steves and their
small crew spent day and night building and testing the computers and delivered to Terrell on time to
pay his suppliers and have a tidy profit left over for their celebration and next order. Steve Jobs had
found a way to finance his soon-to-be multimillion-dollar company without giving away one share of
stock or ownership.
The machine had only a few notable features. One was the use of a TV as the display system,
whereas many machines had no display at all. This was not like the displays of later machines,
however; text was displayed at a terribly slow 60 characters per second. However, this was still
faster than the teleprinters used on contemporary machines of that era. The Apple I also
included bootstrap code on ROM, which made it easier to start up. Finally, at the insistence of Paul
Terrell, Wozniak also designed a cassette interface for loading and saving programs, at the then-
rapid pace of 1200 bit/s. Although the machine was fairly simple, it was nevertheless a masterpiece
of design, using far fewer parts than anything in its class, and quickly earning Wozniak a reputation
as a master designer.
Joined by another friend, Ronald Wayne, the three started to build the machines. Using a variety of
methods, including borrowing space from friends and family, selling various prized items
(like calculators and a VW bus) and scrounging, Jobs managed to secure the parts needed while
Wozniak and Wayne assembled them. But the owner of the Byte Shop was expecting complete

6. computers, not just printed circuit boards. The boards still being a product for the customers Terrell
still paid them.
[4]
Eventually 200 of the Apple I's were built.
[edit]Apple II
Main article: Apple II series
Wozniak had already moved on from the Apple I. Many of the design features of the I were due to
the limited amount of money they had to construct the prototype, but with the income from the sales
he was able to start construction of a greatly improved machine, the Apple II; it was presented to the
public at the first West Coast Computer Faire on April 16 and April 17, 1977. On the first day of
exhibition, Jobs introduced Apple II to a Japanese chemist named Toshio Mizushima who became
the first authorized Apple dealer in Japan.
The main difference internally was a completely redesigned TV interface, which held the display in
memory. Now not only useful for simple text display, the Apple II included graphics, and, eventually,
color. Jobs meanwhile pressed for a much improved case and keyboard, with the idea that the
machine should be complete and ready to run out of the box. This was almost the case for the Apple
I machines sold to The Byte Shop, but one still needed to plug various parts together and type in the
code to run BASIC.
Building such a machine was going to be fiscally burdensome. Jobs started looking for cash, but
Wayne was somewhat gun shy due to a failed venture four years earlier, and eventually dropped out
of the company. Banks were reluctant to lend Jobs money; the idea of a computer for ordinary
people seemed absurd at the time. Jobs eventually met "Mike" Markkula who co-signed a bank loan
for US$250,000, and the three formed Apple Computer on April 1, 1976. The name Apple was
chosen because the company to beat in the technology industry at the time was Atari, and Apple
Computer came before Atari alphabetically and thus also in the phone book. Another reason was
that Jobs had happy memories of working on an Oregon apple farm one summer.
[5]

With both cash,and a new case design in hand thanks to designer Jerry Manock, the Apple II was
released in 1977 and became the computer generally credited with creating thehome
computer market
[citation needed]
. Millions were sold well into the 1980s. A number of different models of
the Apple II series were built, including the Apple IIe and Apple IIGS, which could still be found in
many schools as late as 2005.
[citation needed]

[edit]Apple III
Main article: Apple III

7. Apple III
By the early 1980s, Apple Computer faced increasing competition. While the Apple II was already
established as a successful business-ready platform because of Visicalc, Apple was not content.
The Apple III (Apple 3) was designed to take on the IBM PC in the business environment.
The Apple III was a relatively conservative design for computers of the era. However, Steve Jobs did
not want the computer to have a fan; rather, he wanted the heat generated by the electronics to be
dissipated through the chassis of the machine, forgoing the cooling fan.
Unfortunately, the physical design of the case was not sufficient to cool the components inside it. By
removing the fan from the design, the Apple III was prone to overheating. This caused the integrated
circuit chips to disconnect from the motherboard. Customers who contacted Apple customer service
were told to "drop the computer on the desk", which would cause the ICs to fall back in to place.
Thousands of Apple III computers were recalled and, although a new model was introduced in 1983
to rectify the problems, the damage was already done.
[edit]Apple IPO
On December 12, 1980, Apple launched the Initial Public Offering of its stock to the investing public.
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.
[6]
Several venture
capitalists cashed out, reaping billions in long-term capital gains.
In January 1981, Apple held its first shareholders meeting as a public company in the Flint Center, a
large auditorium at nearby De Anza College, which is often used for symphony concerts. (Previous
meetings were held quietly in smaller rooms, because there had only been a few shareholders.) The
business of the meeting had been planned (or choreographed) so that the voting could be staged in
15 minutes or less. In most cases, voting proxies are collected by mail and counted days or months
before a meeting. In this case, after the IPO, many shares were in new hands.

8. Steve Jobs started his prepared speech, but after being interrupted by voting several times, he
dropped his prepared speech and delivered a long, emotionally charged talk about betrayal, lack of
respect, and related topics.
[citation needed]

[edit]Xerox PARC and the Lisa
Main article: Apple Lisa


Lisa
While Apple Computer’s business division was focused on the Apple III, a separate group was
focused on a computer that would change the world.
[citation needed]
While the Apple III was another
iteration of the text-based computer, this new machine would feature a completely different interface
and introduce the words mouse, icon, and desktop into the lexicon of the computing public.
In return for the right to buy US$1,000,000 of pre-IPO stock, Xerox granted Apple Computer three
days access to the PARC facilities. After visiting PARC, they came away with new ideas that would
complete the foundation for Apple Computer's first GUI computer, the Apple Lisa.
[7][8][9][10]

The first iteration of Apple's WIMP interface was a floppy disk where files could be spatially moved
around. After months of usability testing, Apple designed the LISA interface of windows and icons.
The Lisa was introduced in 1983 at a cost of US$9,995. Because of the high price, Lisa failed to
penetrate the business market.
[edit]Macintosh and the "1984" commercial
Main article: Macintosh
The Macintosh 128k was announced to the press in October 1983, followed by an 18-page brochure
included with various magazines in December.
[11]
Its debut, however, was announced by a single
national broadcast of the now famous US$1.5 million television commercial, "1984". It was directed

9. by Ridley Scott, aired during the third quarter of Super Bowl XVIII on January 22, 1984,
[12]
and is
now considered a "watershed event"
[13]
and a "masterpiece."
[14]
1984 used an unnamed heroine to
represent the coming of the Macintosh (indicated by her white tank top with a Picasso-style picture
of Apple’s Macintosh computer on it) as a means of saving humanity from "conformity" (Big
Brother).
[15]
These images were an allusion to George Orwell's noted novel, Nineteen Eighty-Four,
which described a dystopian future ruled by a televised "Big Brother."
For a special post-election edition of Newsweek in November 1984, Apple spent more than US$2.5
million to buy all 39 of the advertising pages in the issue.
[16]
Apple also ran a “Test Drive a
Macintosh” promotion, in which potential buyers with a credit card could take home a Macintosh for
24 hours and return it to a dealer afterwards. While 200,000 people participated, dealers disliked the
promotion, the supply of computers was insufficient for demand, and many were returned in such a
bad shape that they could no longer be sold. This marketing campaign caused CEO John Sculley to
raise the price from US$1,995 to US$2,495 (adjusting for inflation, about US$5,000 in 2007).
[17][18]

Two days after the 1984 ad aired, the Macintosh went on sale. It came bundled with two applications
designed to show off its interface: MacWrite and MacPaint. Although the Mac garnered an
immediate, enthousiastic following, it was too radical for some, who labeled it a mere "toy". Because
the machine was entirely designed around the GUI, existing text-mode and command-driven
applications had to be redesigned and the programming code rewritten; this was a challenging
undertaking that many software developers shied away from, and resulted in an initial lack of
software for the new system. In April 1984 Microsoft's MultiPlan migrated over from MS-DOS,
followed by Microsoft Word in January 1985.
[19]
In 1985, Lotus Software introduced Lotus Jazz after
the success of Lotus 1-2-3 for the IBM PC, although it was largely a flop.
[20]
Apple
introduced Macintosh Office the same year with the lemmings ad, infamous for insulting potential
customers. It was not successful.
[17]

Macintosh also spawned the concept of Mac evangelism which was pioneered by Apple employee,
and later Apple Fellow, Guy Kawasaki.
[citation needed]

Despite initial marketing difficulties, the Macintosh brand was eventually a success for Apple. This
was due to its introduction of desktop publishing (and later computer animation) through Apple's
partnership with Adobe Systems which introduced the laser printer and Adobe PageMaker. Indeed,
the Macintosh would become known as the de-facto platform for many industries including cinema,
music, advertising, publishing and the arts.
[edit]1985: Jobs leaves Apple
After an internal power struggle, the board of directors sided with Sculley and Jobs was asked to
resign.
[citation needed]
In a show of defiance at being booted from Apple Computer, Jobs sold his 6.5

10. million shares in the company for $70 million. Jobs then acquired the visual effects house, Pixar for
$5M. He also went on to found NeXT Inc., a computer company that built machines with futuristic
designs and ran the UNIX-derived NeXTstep operating system. NeXTSTEP would eventually be
developed into Mac OS X. While not a commercial success, due in part to its high price, the NeXT
computer would introduce important concepts to the history of the personal computer (including
serving as the initial platform for Tim Berners-Lee as he was developing the World Wide Web).
[21]

[edit]1985-1997: Sculley, Spindler, Amelio


Macintosh SE
[edit]Corporate performance
See also: List of mergers and acquisitions by Apple
Under leadership of John Sculley, Apple issued its first corporate stock dividend on May 11, 1987. A
month later on June 16, Apple stock split for the first time in a 2:1 split. Apple kept a quarterly
dividend with about 0.3% yield until November 21, 1995.
[citation needed]
Between March 1988 and
January 1989, Apple undertook five acquisitions, including software companies Network
Innovations,
[22]
Styleware,
[23]
Nashoba Systems,
[24]
and Coral Software,
[25]
as well as satellite
communications company Orion Network Systems.
[26]

[edit]Apple II family of the 1980s
See also: Timeline of Apple II Family
Apple now had two separate, incompatible platforms: the Apple II, an affordable, expandable home
computer, and the Apple Macintosh, the closed platform for professionals. John Gruber, among

11. others, has speculated that this platform incompatibility was the main reason the Macintosh did not
share the initial commercial success which was experienced by the Apple II in the late
1970s.
[27]
However, by the mid - 1980s, the Apple II was now competing with the IBM PC and its
clones, and a new energy was focused upon marketing the Macintosh.
[citation needed]

Thus, Apple continued to sell both lines promoting them to different market segments: the Macintosh
to colleges, college students, andknowledge workers, and the Apple II to home users and public
schools. A few months after introducing the Mac, Apple released a compact version of the Apple II
called the Apple IIc. And in 1986 Apple introduced the Apple IIgs, an Apple II positioned as
something of a hybrid product with a mouse-driven, Mac-like operating environment. Apple II
computers remained an important part of Apple's business until they were discontinued in the early
1990s.
[citation needed]

[edit]Mac family
See also: Timeline of Macintosh models
At the same time, the Mac was becoming a product family of its own. The original model evolved into
the Mac Plus in 1986 and spawned the Mac SE and the Mac II in 1987 and theMac Classic and Mac
LC in 1990. Meanwhile, Apple attempted its first portable Macs: the failed Macintosh Portable in
1989 and then the more popular PowerBook in 1991, a landmark product that established the
modern form and ergonomic layout of the laptop. Popular products and increasing revenues made
this a good time for Apple. MacAddictmagazine has called 1989 to 1991 the "first golden age" of the
Macintosh.
On February 19, 1987, Apple registered the "Apple.com" domain name, making it one of the first
hundred companies to register a .com address on the nascent Internet.
[28]

[edit]Early-mid 1990s
In the late 1980s, Apple's fiercest technological rivals were the Amiga and Atari ST platforms. But by
the 1990 s, computers based on the IBM PC had become more popular than all three; they finally
had a comparable GUI thanks to Windows 3.0, and were out-competing Apple.
Apple's response to the PC threat was a profusion of new Macintosh lines including Quadra, Centris,
and Performa. Unfortunately, these new lines were marketed poorly by what was now "arguably one
of the worst-managed companies in the industry".
[29]
For one, there were too many models,
differentiated by very minor graduations in their tech specs. The excess of arbitrary model numbers
confused many consumers and hurt Apple's reputation for simplicity. Apple's retail resellers
like Sears and CompUSA often failed to sell or even competently display these Macs. Compounding
matters was the fact that, although the machines were cheaper than a comparable PC (when taken

12. into account all the components built-in which had to be added to the 'bare bones PC'), the poor
marketing gave the impression that the machines were more expensive.
[citation needed]
Inventory grew
as Apple consistently underestimated demand for popular models and overestimated demand for
others.
[29]

In 1991, Apple partnered with long-time competitor IBM to form the AIM alliance. The ultimate goal
was to create a revolutionary new computing platform, known as PReP, which would use IBM and
Motorola hardware and Apple software. As the first step toward the PReP platform, Apple started
the Power Macintosh line in 1994, using IBM's PowerPCprocessor. These processors used
a RISC architecture, which differed substantially from the Motorola 680X0 series that were used by
all previous Macs. Parts of Apple's operating system software were rewritten so that most software
written for older Macs could run in emulation on the PowerPC series.
[citation needed]
Apple also refused
IBM's offer to purchase the company, but later unsuccessfully sought another offer from IBM,
[30]
and
at one point was "hours away" from an acquisition by Sun Microsystems.
[29][31]

In addition to computers, Apple has also produced consumer devices. In 1993, Apple released
the Newton, an early personal digital assistant (PDA). It defined and launched the PDA category and
was a forerunner and inspiration of devices such as Palm Pilot and Pocket PC.
[citation needed]

During 1995, a decision was made to (officially) start licensing the Mac OS and Macintosh ROMs to
3rd party manufacturers who started producing Macintosh “clones”. This was done in order to
achieve deeper market penetration and extra revenue for the company. This decision lead to Apple
having over a 10% market share until 1997 when Steve Jobs was re-hired as interim CEO to replace
Gil Amelio. Jobs promptly found a loophole in the licensing contracts Apple had with the clone
manufacturers and terminated the Macintosh OS licensing program ending the Macintosh clone era.
The result of this action was that Macintosh computer market share quickly fell from 10% to around
3%
[edit]1996: Return of Steve Jobs
In 1996, the struggling NeXT company beat out Be Inc.'s BeOS in its bid to sell its operating system
to Apple. Apple purchased Steve Jobs' company, NeXT on December 10, 1996, and its NeXTstep
operating system. This would not only bring Steve Jobs back to Apple's management, but NeXT
technology would become the foundation of the Mac OS Xoperating system.
On November 10, 1997, Apple introduced the Apple Store, an online retail store based upon
the WebObjects application server the company had acquired in its purchase of NeXT. The new
direct sales outlet was also tied to a new build-to-order manufacturing strategy.
[32][33]

[edit]CEO

13. On July 9, 1997, Gil Amelio was ousted as CEO of Apple by the board of directors after turning the
company around from a multibillion loss to a $25 million dollar profit.
[citation needed]
Jobs stepped in as
the interim CEO to begin a critical restructuring of the company's product line. He would eventually
become CEO and served in that position until August 2011. On August 24, 2011 Steve Jobs
resigned his position as Chief Executive Officer of Apple before his long battle with pancreatic
cancer took his life on October 5th 2011.
[34]

[edit]Microsoft deal
At the 1997 Macworld Expo, Steve Jobs announced that Apple would be entering into partnership
with Microsoft. Included in this was a five-year commitment from Microsoft to releaseMicrosoft
Office for Macintosh as well a US$150 million investment in Apple. It was also announced
that Internet Explorer would be shipped as the default browser on the Macintosh. Microsoft
chairman Bill Gates appeared at the expo on-screen, further explaining Microsoft's plans for the
software they were developing for Mac, and stating that he was very excited to be helping Apple
return to success. After this, Steve Jobs said this to the audience at the expo:
If we want to move forward and see Apple healthy and prospering again, we have to let go of a few
things here. We have to let go of this notion that for Apple to win, Microsoft has to lose. We have to
embrace a notion that for Apple to win, Apple has to do a really good job. And if others are going to
help us that's great, because we need all the help we can get, and if we screw up and we don't do a
good job, it's not somebody else's fault, it's our fault. So I think that is a very important perspective. If
we want Microsoft Office on the Mac, we better treat the company that puts it out with a little bit of
gratitude; we like their software. called microsoft office today. So, the era of setting this up as a
competition between Apple and Microsoft is over as far as I'm concerned. This is about getting Apple
healthy, this is about Apple being able to make incredibly great contributions to the industry and to
get healthy and prosper again.
[35]

[edit]1998-2001: Apple's renaissance

14. The original iMac
[edit]iMac, iBook, and Power Mac G4
While discontinuing Apple's licensing of its operating system to third-party computer manufacturers,
one of Jobs's first moves as new acting CEO was to develop the iMac, which bought Apple time to
restructure. The original iMac integrated a CRT display and CPU into a streamlined, translucent
plastic body. The line became a sales smash, moving about one million units each year. It also
helped re-introduce Apple to the media and public, and announced the company's new emphasis on
the design and aesthetics of its products.
More recent products include the iBook, the Power Mac G4, and the AirPort product series, which
helped popularize the use of Wireless LAN technology to connect computers to networks.
In 1999, Apple introduced the Power Mac G4, which utilized the Motorola-made PowerPC 7400
containing a 128-bit instruction unit known as AltiVec, its flagship processor line. Also that year,
Apple unveiled the iBook, its first consumer-oriented laptop that was also the first Macintosh to
support the use of Wireless LAN via the optional AirPort card that was based on the 802.11b
standard.
[edit]Mac OS X
Main article: Mac OS X

15. Company headquarters on Infinite Loop in Cupertino
In 2001, Apple introduced Mac OS X, an operating system based on NeXT's NeXTstep and
incorporating parts of the FreeBSD kernel.
[36]
Aimed at consumers and professionals alike, Mac OS X
married the stability, reliability and security of Unix with the ease of a completely overhauled user
interface. To aid users in transitioning their applications from Mac OS 9, the new operating system
allowed the use of Mac OS 9 applications through the Classic environment. Apple's Carbon API also
allowed developers to adapt their Mac OS 9 software to use Mac OS X's features.
[edit]Retail stores
Main article: Apple Store
In May 2001, after much speculation, Apple announced the opening of a line of Apple retail stores, to
be located throughout the major U.S. computer buying markets. The stores were designed for two
primary purposes: to stem the tide of Apple's declining share of the computer market, as well as a
response to poor marketing of Apple products at third-party retail outlets.
[edit]iPod
Main article: iPod
In October 2001, Apple introduced its first iPod portable digital audio player. The iPod started as a 5
gigabyte player capable of storing around 1000 songs. Since then it has evolved into an array of
products including the Mini (now discontinued), the iPod Touch, the Shuffle, the iPod Classic,
the Nano, the iPhone and the iPad. As of March 2011, the largest storage capacity for an iPod was
160 gigabytes.
[37]

[edit]2002-Present: iTunes, iOS
In early 2002, Apple unveiled a redesigned iMac, using the G4 processor. The new design had a
hemispherical base and a flat panel all-digital display supported by a swiveling neck. This model was
discontinued in the summer of 2004.

16. In 2002, Apple also released the Xserve 1U rack mounted server. Originally featuring two G4 chips,
the Xserve was unusual for Apple in two ways. It represented an earnest effort to enter the
enterprise computer market and it was also relatively cheaper than similar machines released by its
competitors. This was due, in no small part, to Apple's use of Fast ATA drives as opposed to the
SCSI hard drives used in traditional rack-mounted servers. Apple later released the Xserve RAID, a
14 drive RAID which was, again, cheaper than competing systems.
In mid-2003, Steve Jobs launched the Power Mac G5, based on IBM's G5 processor. Apple claims
this was the first 64-bit computer sold to the general public, but in fact that title actually goes to
the AMD Opteron line (Opteron processors were however marketed more directly to the enterprise
for use in rackmount servers and in workstations). Both 64-bit CPUs were pre-dated by the 64-
bit Alpha architecture, although the Alpha was aimed more at servers and workstations and not at
the "general public." The Power Mac G5 was also used by Virginia Tech to build its
prototype System X supercomputing cluster, which at the time garnered the prestigious recognition
of the third fastest supercomputer in the world. It cost only US$5.2 million to build, far less than the
previous #3 and other ranking supercomputers. Apple's Xserves were soon updated to use the G5
as well. They replaced the Power Mac G5 machines as the main building block of Virginia
Tech's System X, which was ranked in November 2004 as the world's seventh
fastest supercomputer.
[38]

A new iMac based on the G5 processor was unveiled August 31, 2004 and was made available in
mid-September. This model dispensed with the base altogether, placing the CPU and the rest of the
computing hardware behind the flat-panel screen, which is suspended from a streamlined aluminium
foot. This new iMac, dubbed the iMac G5, was the world's thinnest desktop computer, measuring in
at around two inches (around 5 centimeters).
[citation needed]

2004, however, was a turning point for Apple. After creating a sizable financial base to work with, the
company began experimenting with new parts from new suppliers. As a result Apple was able to
produce new designs so quickly over a short amount of time, with the release of the iPod Video, then
the iPod Classic, and eventually the iPod touch and iPhone. Each Apple product thus far has been
under equally high demand.
Through the 1990s, personal computers based on Microsoft's Windows operating system began to
gain a much larger percentage of new computer users than Apple. As a result, Apple fell from
controlling 20% of the total personal computer market to 5% by the end of the decade. The company
was struggling financially under then-CEO Gil Amelio when on August 6, 1997 Microsoft bought a
US$150 million non-voting share of the company as a result of a court settlement with Apple.
Perhaps more significantly, Microsoft simultaneously announced its continued support for Mac

17. versions of its office suite, Microsoft Office, and soon created a Macintosh Business Unit. This
reversed the earlier trend within Microsoft that resulted in poor Mac versions of their software and
has resulted in several award-winning releases. However, Apple's market share continued to
decline, reaching 3% by 2004.
[citation needed]

Initially, the Apple Stores were only opened in the United States, but in late 2003, Apple opened its
first Apple Store abroad, in Tokyo's Ginza district. Ginza was followed by a store inOsaka, Japan in
August 2004. In 2005, Apple opened stores in Nagoya, the Shibuya district of Tokyo, Fukuoka,
and Sendai. Another store was opened in Sapporo in 2006. Apple's first European store opened
in London in November 2004, and is currently the largest store. A store in the Bullring shopping
centre in Birmingham opened in April 2005, and theBluewater shopping centre
in Dartford, Kent opened in July 2005. Apple opened its first store in Canada in the middle of 2005 at
the Yorkdale Shopping Centre in North York,Toronto. Later on in 2005 Apple opened
the Meadowhall Store in Sheffield and the Trafford Centre Store in Manchester (UK). Recent
additions in the London area include the Brent Cross Apple Store (January 2006) and the Apple
Store in Westfield in Shepherd's Bush (September 2008).
Also, in an effort to court a broader market, Apple opened several "mini" stores in October 2004 in
attempt to capture markets where demand does not necessarily dictate a full scale store. The first of
these stores was opened at Stanford Shopping Center in Palo Alto, California. These stores follow in
the footsteps of the successful Apple products: iPod mini and Mac mini. These stores are only one
half the square footage of the smallest "normal" store and thus can be placed in several smaller
markets.
On April 29, 2005, Apple released Mac OS X v10.4 "Tiger" to the general public.
Apple's wildly successful PowerBook and iBook products relied on Apple's previous generation G4
architecture which were produced by Freescale Semiconductor, a spin off from Motorola. Engineers
at IBM had minimal success in making their PowerPC G5 processor consume less power and run
cooler but not enough to run in iBook or PowerBook formats. As of the week of October 24, 2005.
Apple released the Power Mac G5 Dual that features a Dual-Core processor. This processor
contains two cores in one rather than have two separate processors. Apple has also developed the
Power Mac G5 Quad that uses two of the Dual-Core processors for enhanced workstation power
and performance. The new Power Mac G5 Dual cores run individually at 2.0 GHz or 2.3 GHz. The
Power Mac G5 Quad cores run individually at 2.5 GHz and all variations have a graphics processor
that has 256-bit memory bandwidth.
[39]

[edit]Intel transition
Main article: Apple–Intel transition

18. This article's factual accuracy may be compromised due to out-of-date
information. Please help improve the article by updating it. There may be additional
information on the talk page. (January 2009)
In a keynote address on June 6, 2005, Steve Jobs officially announced that Apple will begin
producing Intel-based Macintosh computers beginning in 2006.
[40]
Jobs confirmedrumors that the
company had secretly been producing versions of its current operating system Mac OS X for both
PowerPC and Intel processors over the past 5 years, and that the transition to Intel processor
systems would last until the end of 2007. Rumors of cross-platform compatibility had been spurred
by the fact that Mac OS X is based on OpenStep, an operating system that was available for many
platforms. In fact, Apple's own Darwin, the open source underpinnings of Mac OS X, was also
available for Intel's x86 architecture.
[41][42][43]

On January 10, 2006, the first Intel-based machines, the iMac and MacBook Pro, were
introduced.
[44][45]
They were based on the Intel Core Duo platform. This introduction came with the
news that Apple would complete the transition to Intel processors on all hardware by the end of
2006, a year ahead of the originally quoted schedule.
In January 2007, Apple Computer, Inc. shortened its name to simply Apple Inc. In his keynote
address, Jobs explained that with their current product mix consisting of the iPod and Apple TV as
well as their Macintosh brand, Apple really wasn't just a computer company anymore. At the same
address, Jobs revealed a product that would revolutionize an industry in which Apple had never
previously competed: the Apple iPhone. The iPhone combined Apple's first widescreen iPod with the
world's first mobile device boasting visual voicemail, and an internet communicator able to run a fully
functional version of Apple's web browser, Safari, on the then-named iPhone OS.
[edit]Apple and "i" Web services
In 2000, Apple introduced its iTools service, a set of free web-based tools that included an email
account, internet greeting cards called iCards, a service called iReview that gave internet users a
place to read and write reviews of Web sites, and a tool called KidSafe which promised to prevent
children from browsing inappropriate portions of the web. The latter two services were eventually
canceled because of lack of success, while iCards and email became integrated into
Apple's .Mac subscription based service introduced in 2002 and discontinued in mid-2008 to make
way for the release of the new MobileMe service, coinciding with the iPhone 3G release. MobileMe,
which carried the same US$99.00 annual subscription price as its .Mac predecessor, featured the
addition of "push" services to instantly and automatically send emails, contacts and calendar
updates directly to user's iPhone devices. Some controversy surrounded the release of MobileMe
services to users resulting in expected downtime and a significantly longer release window. As a

19. result of this, Apple extended the subscriptions existing MobileMe subscribers by an additional 30
days free-of-charge.
[46]
At the WWDC event in June of 2011, Apple announced its most up to date
cloud service, iCloud, replacing MobileMe. This service kept most of the core services that MobileMe
offered, however dropping iDisk, Gallery, and iWeb. Additionally, it added a number of other features
to the group, including Find my Mac, iTunes Match, Photo Stream, Documents & Data Backup, and
iCloud backup for iOS devices. The service requires users to be running iOS 5 and OS X 10.7 Lion.
[edit]iPod and iTunes store
Main articles: iPod and iTunes Store


A 2nd generation iPod

20. iPod mini with the user interface set to German
On October 23, 2001, Apple introduced the iPod, a portable digital music player. Its signature
features included an LED, easy to use interface, and a large capacity drive (initially 5 GB) which was
enough to hold approximately 1,000 songs. It was quite large when compared to the 20-30 songs
of Flash-based players of the time. Apple has since revised its iPod line several times, introducing a
slimmer, more compact design, Windows compatibility (previous iPods only interacted with
Macintosh computers), AAC compatibility, storage sizes of up to 160 GB, and easier connectivity
with car or home stereo systems. On October 26, 2004, Apple released a color version of their
award winning iPod which can not only play music but also show photos. In early 2005, Apple
unveiled a smaller iPod : theiPod Shuffle, which is about the size of a pack of gum. Speaking to
software developers on June 6, 2005, Steve Jobs said the company's share of the entire portable
music device market stood at 76%.
[citation needed]

Apple has revolutionized the computer and music industry by signing the five major record
companies to join its new music download service, the successful iTunes Music Store, now known
as iTunes Store. Unlike other fee-based music services, the iTunes Store charges a flat US$0.99 per
song (or US$9.99 per album). Users have more flexibility than on previous on-line music services.
For example, they can burn CDs including the purchased songs (although a particular playlist

21. containing purchased music may only be burned seven times), share and play the songs on up to
five computers, and, of course, download songs onto an iPod.
The iTunes Music Store commercial model is one-time purchase, which contrasts with other
commercial subscription music services where users are required to pay a regular fee to be able to
access musical content (but are able to access a larger volume of music during the subscription).
The iTunes Music Store was launched in 2003 with 2 million downloads in only 16 days; all of which
were purchased only on Macintosh computers. Apple has since released a version
of iTunes for Windows, allowing Windows users the ability to access the store as well. Initially, the
music store was only available in the United States due to licensing restrictions, but there were plans
to release the store to many other countries in the future.
In January 2004 Apple released a more compact version of their iPod player, the 4 GB iPod Mini.
Although the Mini held fewer songs than the other iPod models at that time, its smaller size and
multiple colours made it popular with consumers on debut with many stores having "sold out" their
initial inventories of the devices.
In June 2004 Apple opened their iTunes Music Store in the United Kingdom, France, and Germany.
A European Union version opened October 2004 (actually, a Eurozone version; not initially available
in the Republic of Ireland due to the intransigence of the Irish Recorded Music Association (IRMA)
but eventually opened Thursday January 6, 2005.) A version for Canada opened in December 2004.
On May 10, 2005, the iTunes Music Store was expanded to Denmark, Norway, Sweden,
and Switzerland.
On December 16, 2004, Apple sold its 200 millionth song on the iTunes Music Store to Ryan
Alekman from Belchertown, Massachusetts. The download was The Complete U2, by U2.
[47]
Just
under three months later Apple sold its 300 millionth song on March 2, 2005.
[48]
On July 17, 2005,
the iTunes Music Store sold its 500 millionth song.
[citation needed]
At that point, songs were selling at an
accelerating annualized rate of more than 500 million.
On January 11, 2005, an even smaller version of the iPod was announced, this one based on flash
memory instead of using a miniaturized hard drive. The iPod Shuffle, like its predecessors, proved
so popular that it sold out almost immediately, causing delays of up to four weeks in obtaining one
within a single week of its debut.
[citation needed]
This is despite the fact that critics had gawked at the
lack of LCD screen in the Shuffle, a norm in almost all current flash memory based mp3 players.
The iPod is giving an enormous lift to Apple's financial results.
[49]
In the quarter ending March 26,
2005, Apple earned US$290 million, or 34¢ a share, on sales of US$3.24 billion. The year before in
the same quarter, Apple earned just US$46 million, or 6¢ a share, on revenue of US$1.91 billion.

22. In July 2005, the iPod was given a color screen, merging the iPod and iPod Photo.
On September 7, 2005, Apple replaced the iPod Mini line with the new iPod Nano. While some
consumers were put off by the high price tag (US$199 for 2 GB), and easily scratchable surface, the
Nano had sold 1 million units in the first 17 days.
A month later, on October 12, 2005 Apple introduced the new 5th generation iPod with video
playback abilities. The device is also 40% thinner than a 4th generation iPod and has a larger
screen.
On October 25, 2005, the iTunes Store went live in Australia, with songs selling for A$1.69 each,
albums at (generally) A$16.99 and music videos and Pixar short films at A$3.39. Briefly, people
in New Zealand were able to buy music off the Australian store. However, that loophole was quickly
closed.
On February 23, 2006, the iTunes Music Store sold its 1 billionth song.
[50]

The iTunes Music Store changed its name to iTunes Store on September 12, 2006 when it began
offering video content (TV shows and movies) for sale. Since iTunes inception it has sold over 2
billion songs, 1.2 billion of which were sold in 2006. Since downloadable TV and movie content was
added 50 million TV episodes and 1.3 million movies have been downloaded.
In early 2010, Apple celebrated the 10 billionth song downloaded from the iTunes Music Store.
[51]

[edit]iOS evolution: iPhone and iPad
Main articles: iOS, iPhone, and iPad
First announced on January 9, 2007, Apple introduced the first version of the iPhone being publicly
available on June 29 that same year in selected countries/markets. It was another 12 months before
the iPhone 3G became available on July 11, 2008. Apple announced the iPhone 3GS on June 8,
2009, along with plans to release it later in June, July, and August, starting with the U.S., Canada
and major European countries on June 19. This 12-month iteration cycle has continued with the
iPhone 4 model arriving in similar fashion in 2010, A Verizon model was released in February 2011,
and a Sprint model in October 2011, shortly after Job's death.
The Macs that are available as of February 2011 are the iMac, Mac Pro, MacBook, MacBook Pro,
MacBook Air, and Mac mini. The latest version of Mac OS X is Lion (10.7). On February 10, 2011,
the iPhone 4 was made available on both Verizon Wireless and AT&T. Now two iPod types are
multi-touch: the iPod nano and the iPod touch, a big advance in technology. Apple TV currently has
a 2nd generation model, which is 4 times smaller than the original Apple TV. Apple has also gone

23. wireless, selling a wireless trackpad, keyboard, mouse, and external hard drive. Wired accessories
are, however, still available.
The Apple iPad was announced on January 27, 2010 with retail availability commencing in April and
systematically growing in markets throughout 2010. The iPad fits into Apple iOS product line, being
twice the screen size of an iPhone without the phone abilities. While there were initial fears of
product cannibalisation the FY2010 financial results released in Jan 2011 included commentary of a
reverse 'halo' effect, where iPad sales were leading to increased sales of iMacs and
MacBooks.
[52]
On March 2, 2011, Apple unveiled the iPad's second generation model, the iPad 2.
Like the 4th generation iPod Touch and iPhone, the iPad 2 comes with a front-facing camera as well
as a rear-facing camera, along with three new apps that utilize these new features: Camera,
FaceTime, and Photobooth (only on iPad2).
[edit]Resurgence compared to Microsoft
Since 2005, Apple's revenues, profits, and stock price have grown significantly. On May 26, 2010
Apple's stock market value overtook Microsoft's,
[53]
and Apple's revenues surpassed those of
Microsoft in the third quarter of 2010.
[54]
After giving their results for the first quarter of 2011
Microsoft's net profits of $5.2 billion were lower for the quarter than those of Apple Inc., which earned
$6 billion in net profit for the quarter.
[55][56][57]
The late April announcement of profits by the two
companies marks the first time in twenty years that Microsoft's profits have been lower than
Apple's.,
[56]
and according to Arstechnica "this would have been 'unimaginable' 10 years before."
[55]

The Guardian reported that one of the reasons for the change is because PC software, where
Microsoft dominates, has become less important compared to the tablet PC and smartphone
markets, where Apple has a strong presence.
[56]
One reason for this was a surprise drop in PC sales
in the quarter.
[56]
Another issue for Microsoft is that their online search business has lost a lot of
money, with a loss of $700 million in the first quarter of 2010.
[56]
Although Microsoft's online division
losses were high, even if they had made no loss Apple's profits would have been slightly higher.
[55][58]

[edit]Financial history
As cash reserves increased significantly in 2006, Apple created Braeburn Capital on April 6, 2006 to
manage its assets.
[59]

Financial period Net sales (Mil USD) Net profits (Mil USD) Revenue growth Return on net sales
FY 1981 335 unknown --- ---

24. FY 1982 583 61 74% 10%
FY 1983 983 77 69% 8%
FY 1984 1,516 64 54% 4%
FY 1985 1,918 61 27% 3%
FY 1986 1,902 154 -1% 8%
FY 1987 2,661 218 40% 8%
FY 1988 4,071 400 53% 10%
FY 1989 5,284 454 30% 9%
FY 1990 5,558 475 5% 9%
FY 1991 6,309 310 12% 5%
FY 1992 7,087 530 12% 7%
FY 1993 7,977 87 13% 1%
FY 1994 9,189 310 46% 3%
FY 1995 11,062 424 20% 4%
FY 1996 9,833 -816 -11% -8%

25. FY 1997 7,081 -1,045 -28% -15%
FY 1998 5,941 309 -16% 5%
FY 1999 6,134 601 3% 10%
FY 2000 7,983 786 30% 10%
FY 2001 5,363 -25 -33% 0%
FY 2002 5,247 65 -2% 1%
FY 2003 6,207 57 18% 1%
FY 2004 8,279 266 33% 3%
FY 2005 13,931 1,328 68% 10%
FY 2006 19,315 1,989 39% 10%
FY 2007 24,578 3,495 27% 14%
FY 2008 37,491 6,119 53% 16%
FY 2009
[60]
42,905 8,235 14% 19%
FY 2010 65,225 14,013 52% 21%
[edit]Stock
'AAPL' is the stock symbol under which Apple Inc. trades on the NASDAQ stock market. Apple
originally went public on December 12, 1980, with an initial public offering at US$22.00
[61]
per share.

26. The stock has split 2 for 1 three different times on June 15, 1987, June 21, 2000 and February 28,
2005. Apple initially paid dividends from June 15, 1987 to December 15, 1995. On March 19, 2012,
Apple announced that it would again start paying a dividend of $2.65 per quarter (beginning in the
quarter that starts in July 2012) along a $10 billion share buyback which would commence
September 30, 2012, the start of its fiscal 2013 year.
Gene Munster and Michael Olson of Piper Jaffray are the main analysts who track Apple stock.
Piper Jaffray estimate future stock and revenue of Apple annually, and have been doing so for
several years.
[62]


Timeline of Apple products
See also: Timeline of Apple Inc. products, Timeline of Apple II family, and Timeline of Macintosh
models

Products on this timeline indicate introduction dates only and not
necessarily discontinued dates, as new products begin on a
contiguous product line.
This timeline may not be accurate.

27. [edit]See also
 Apple Industrial Design Group
 Apple media events
 History of computing hardware (1960s–present)
 History of personal computers
 Pirates of Silicon Valley - 1999 docudrama about the rise of Apple
Computer and Microsoft
 Triumph of the Nerds - 1996 documentary about the rise of the
personal computer.
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31. [edit]Further reading
 Gruman, Galen; Jim Heid (Feb 1994). "Macintosh
Innovation". MacWorld: 86–98.
[edit]External links

Wikimedia Commons has
media related to: Apple Inc.
 Apple-History.com
 Apple Computer History Weblog
 Apple Computer quotes and history on Google Finance
 Transcripts of Apple Computer's Quarterly Conference Calls
 Apple History Timeline
 Welcome to Macintosh - 2008 documentary film about Apple
history and innovation.
 25 Years of Mac: From Boxy Beige to Silver Sleek -
2008 Wired on the 25th anniversary of
the Macintosh.www.colby.com
Microsft own Apple Inc.
[hide]
 V

 T

 E
Apple Inc.


 History


Founders
 Steve Jobs

 Steve Wozniak

 Ronald Wayne



Board of directors
 Bill Campbell

32.  Millard Drexler

 Al Gore

 Tim Cook (CEO)

 Andrea Jung

 Arthur D. Levinson (Chairman)

 Ronald Sugar

 Bob Iger


Hardware products
 Apple TV

 iPad
 Original

 2

 3rd


 iPhone
 Original

 3G

 3GS

 4

 4S

33.  iPod
 Classic

 Nano

 Shuffle

 Touch


 Mac
 iMac

 MacBook

 MacBook Air

 MacBook Pro
 Mini

 Pro


 Discontinued products


Accessories
 AirPort

 Thunderbolt Display

 iPod accessories

 Mighty Mouse

 Magic Mouse

34.  Magic Trackpad

 Keyboard

 Time Capsule


Software products
 Aperture

 Bento

 FileMaker Pro

 Final Cut Studio

 GarageBand

 iLife

 iOS

 iTunes

 iWork

 Logic Studio

 Mac OS X
 Server


 QuickTime

 Safari

 Xsan


Stores and services
 Developer

35.  AppleCare

 Apple Specialist

 Apple Store
 online


 App Store

 Certifications

 Game Center

 iAd

 Genius Bar

 iBookstore

 iTunes Store
 Mac App Store

 iWork.com

 MobileMe

 iCloud

 One to One

 ProCare


Executives
 Tim Cook

36.  Eddy Cue

 Scott Forstall

 Jonathan Ive

 Bob Mansfield

 Peter Oppenheimer

 Phil Schiller

 Bruce Sewell

 Jeff Williams

 John Browett


Acquisitions
 Emagic

 FingerWorks

 Intrinsity

 Lala

 NeXT

 Nothing Real

 P.A. Semi

 Silicon Color

 Siri

37.  Spruce Technologies


Related
 Advertising
 1984

 Think Different

 Get a Mac

 iPods

 Slogans


 Companies
 Braeburn Capital

 FileMaker Inc.


 Design
 IDg

 Typography


 History
 Community
 Criticism

 Litigation


 Book

 Category

 Portal

38.  Project

 Commons

 Template

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