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 iPhone, iPod music player, and Macintosh computers. 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 over two
decades, Apple Computer has been predominantly a manufacturer of personal computers,
including the Apple II, Macintosh, and Power Mac lines, but 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, and 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 is in the iOS (Apple) range
of products that began with the iPhone, iPod Touch and now iPad. Today, Apple is the largest
technology firm in the world, with annual revenue of over $60 billion.[1] In mid 2010, Apple
overtook Microsoft to become the largest technology by market capitalisation.[2] While breaking
the $300 billion market value in January 2011, Apple currently is the world's second largest
company behind Exxon Mobil.[3]

Contents
[hide]
• 1 1969-1984: Jobs and Wozniak
○ 1.1 Pre-foundation
○ 1.2 The Apple I
○ 1.3 The Apple II
○ 1.4 The Apple III
 ○ 1.5 The Apple IPO
○ 1.6 Xerox PARC and the Lisa
○ 1.7 The release of the Macintosh and the 1984 commercial
 1.7.1 1985: Jobs leaves Apple
• 2 1985-1997: Sculley, Spindler, Amelio
○ 2.1 Corporate Performance
○ 2.2 The Apple II family of the 1980s
○ 2.3 The Mac family
○ 2.4 The early-mid 1990s
○ 2.5 1997: The Return of Jobs
 2.5.1 CEO
 2.5.2 The Microsoft deal
• 3 1998- 2001: Apple's Renaissance
○ 3.1 The iMac, iBook, and Power Mac G4
○ 3.2 Mac OS X
○ 3.3 Apple retail stores
○ 3.4 The iPod
• 4 2002 - Present: the iTunes-iOS Juggernaut
○ 4.1 The Intel transition
○ 4.2 Apple and "i" Web services
○ 4.3 iPod and iTunes Store
○ 4.4 iOS Evolution - iPhone & iPad
• 5 Financial history
○ 5.1 Stock
• 6 See also
• 7 References
• 8 External links

[edit] 1969-1984: Jobs and Wozniak

[edit] Pre-foundation
Garage of Steve Jobs' parents on Crist Drive in Los Altos, California
Steve Jobs and Steve Wozniak were outcasts while they were in high school; by 1975, they had
withdrawn from Reed College and UC Berkeley, respectively. Wozniak designed a video
teletype 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 IMSAI inspired him to build a microprocessor
into his video teletype and have a complete computer.
At the time the only microcomputer CPUs generally available were the US$179 Intel 8080, and
the US$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 US$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.
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.
[edit] The Apple I
Main article: Apple I
The very first Apple Computer logo, drawn by Ronald 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.
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.[4] 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."[5]
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 teletypes 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
computers, not just printed circuit boards. The boards still being a product for the customers
Terrell still paid them.[6] Eventually 200 of the Apple I's were built.
[edit] The Apple II
Main article: Apple II series
But 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. Why
Apple? At the time, the company to beat 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.[7]
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 the home 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] The Apple III
Main article: Apple III

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] The 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[citation needed] and instantly created more millionaires (about 300) than any
company in history. 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.
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. 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.[8]
[9][10][11]
(Popular folklore states that "Lisa" was Steve Jobs' first daughter; Apple maintains it
means Locally Integrated Software Architecture.)[citation needed]
Apple Computer's engineers did not come up with the LISA interface overnight. In fact, the first
iteration of the soon-ubiquitous WIMP interface was a poorly-drawn picture of a floppy disk. It
was only after months of usability testing and work that Apple settled on 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, it failed to
penetrate the market, however it was a useful proof of concept.
[edit] The release of the 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.[12] Its debut, however, was announced
by a single national broadcast of the now famous US$1.5 million television commercial, "1984".
It was directed by Ridley Scott, aired during the third quarter of Super Bowl XVIII on January
22, 1984,[13] and is now considered a "watershed event"[14] and a "masterpiece."[15] 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).[16] 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.[17] 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).[18][19]
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, enthusiastic 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.[20] 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.[21] Apple introduced Macintosh Office the same year with the lemmings ad, infamous for
insulting potential customers. It was not successful.[18]
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.
While it did briefly license some of its own designs, Apple did not allow other computer makers
to "clone" the Mac until the 1990s, long after Microsoft dominated the marketplace with its
broad licensing program. By then, it was too late for Apple to reclaim its lost market share and
the Macintosh clones achieved limited success before being axed after Steve Jobs returned to
Apple Computer in 1997.[citation needed]
[edit] 1985: Jobs leaves Apple
After an internal power struggle the board of directors sided with Sculley and Jobs was asked to
resign. Jobs then co-founded the visual effects house, Pixar. 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).[22]
[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., August 2010 Between
March 1988 and January 1989, Apple undertook five acquisitions, including software companies
Network Innovations , Styleware , Nashoba Systems , and Coral Software , as well as satellite
communications company Orion Network Systems.
[edit] The 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 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.[23] 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, and knowledge 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] The 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 the Mac
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. MacAddict magazine 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.[24]
[edit] The early-mid 1990s
This section does not cite any references or sources.
Please help improve this article by adding citations to reliable sources. Unsourced material may be
challenged and removed. (August 2010)

In the late 1980s, Apple's fiercest technological rivals were the Amiga and Atari ST platforms.
But by the 1990s, 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. 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 while the machines were cheaper than a
comparable PC (counting all the things 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]
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 PowerPC processor. 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.[25]
In addition to computers, Apple has also produced consumer devices. In 1993, Apple released
the Newton, an early PDA. Though it failed commercially, it defined and launched the category
and was a forerunner and inspiration of devices such as Palm Pilot and Pocket PC.[citation needed]
[edit] 1997: The Return of 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 X operating 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.[26][27]
[edit] CEO
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 has served in that position to the present day.
[edit] The 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
release Microsoft 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.
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.[28]
[edit] 1998- 2001: Apple's Renaissance

The original iMac

[edit] The 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 a 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

Company headquarters on Infinite Loop in Cupertino

In 2001, Apple introduced Mac OS X, an operating system based on NeXT's NeXTstep and the
FreeBSD kernel.[29] 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] Apple 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] The 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, and the iPhone. As of March 2010, the largest storage capacity for an iPod was 160
gigabytes.[citation needed]
[edit] 2002 - Present: the iTunes-iOS Juggernaut
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.
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.[30]
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, is the world's thinnest desktop computer,
measuring in at around two inches (around 5 centimeters).
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 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 in Osaka,
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 the Bluewater shopping centre in
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.[31]
[edit] The Intel transition
Main article: Apple–Intel transition
This article's factual accuracy may be compromised because of 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.[32] Jobs confirmed rumors 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.[33][34][35]
On January 10, 2006, the first Intel-based machines, the iMac and MacBook Pro, were
introduced.[36][37] They were based on the Intel Core Duo platform. This introduction came with
the news that Apple will 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 capable of running a fully functional version of Apple's web browser Safari on the
iPhone OS.
[edit] Apple and "i" Web services
In 2000, Apple introduced its iTools service, a collection 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 carries the same US$99.00 annual subscription price as its .Mac
predecessor, features 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 result of this, Apple extended the subscriptions existing MobileMe
subscribers by an additional 30 days free-of-charge.[38]
[edit] iPod and iTunes Store
Main articles: iPod and iTunes Store
A 2nd generation iPod

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 LCD, 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 : the iPod 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 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.[39] Just
under three months later Apple sold its 300 millionth song on March 2, 2005.[40] 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.[41] 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.
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 capabilities. 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.[42]
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.
[43]

[edit] iOS Evolution - iPhone & iPad

Main articles: iPhone, iPad, and iOS (Apple)
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 iPhone4 model arriving in similar fashion in 2010. January 2011 has also seen
a Verizon model being announced with expected availability in February 2011.
The Macs that are available now (Jan. 2011) are the 27 iMac, the mac pro, the mac book, mac
book air, mac book pro and the mac mini. The latest version or mac os x is Snow leopard (10.6).
In summer 2011, Apple will have Mac OS X lion (10.7). On February 10, 2011, the Apple
iPhone will be on Verizon Wireless and AT&T. Now 2 iPod types are touch screen (Jan. 2011),
the iPod nano and the iPod touch, a big advance in technology. Apple TV now has a 2nd
generation (Jan 2011) 4 times smaller, but 4 times better! And now Apple has gone wireless,
Apple now has a wireless touch pad, a wireless keyboard, a wireless mouse, and even a wireless
external hard drive.
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 product line
snuggly, as an iOS device, twice the screen size of an iPhone without the phone capabilities.
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.[44]
Considering that both product ranges have only been in existence for a combined 4 years, the
fact that over 70 million iPhones[45] and earning the company billions is a remarkable success.
Apple now rates highly as a mobile phone manufacturer and continues to break new ground with
the iPad.
[edit] Financial history
As cash reserves increased significantly in 2006, Apple created Braeburn Capital on April 6,
2006 to manage its assets.[46]
Financial Net sales (Mil Net profits (Mil Revenue Return on net
period USD) USD) growth sales
FY 1981 335 unknown --- ---
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 6,310 310 14% 4%
FY 1992 7,087 530 12% 7%
FY 1993 7,977 87 -11% 1%
FY 1994 9,189 310 46% 3%
FY 1995 11,062 424 20% 4%
FY 1996 9,833 -816 -11% -8%
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[47] 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 in on December 12, 1980, with an initial public offering at US$22.00 [48]
per share. Apple does not currently pay dividends on its common stock. Apple paid dividends
from June 15, 1987 to December 15, 1995.
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.[49]

See also: 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
[edit] See also
• Apple Industrial Design Group
• History of computing hardware (1960s-present)
• 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.
• History of personal computers - Wikipedia article about the history of Personal
Computers in general
[edit] References
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[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
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