Apple Inc.
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, in Silicon Valley, best known for its consumer electronics, software and online services. Founded in 1976 as Apple Computer Company by Steve Jobs, Steve Wozniak and Ronald Wayne, the company was incorporated by Jobs and Wozniak as Apple Computer, Inc. the following year. It was renamed to its current name in 2007 as the company had expanded its focus from computers to consumer electronics. Apple is one of the Big Tech companies.
The company was founded in 1976 to market Wozniak's Apple I personal computer. Its successor, the Apple II, became one of the first successful mass-produced microcomputers. Apple introduced the Lisa in 1983 and the Macintosh in 1984 as some of the first computers to use a graphical user interface and a mouse. By 1985, internal conflicts led to Jobs leaving the company to form NeXT and Wozniak withdrawing to other ventures; John Sculley served as CEO for over a decade. In the 1990s, Apple lost considerable market share in the personal computer industry to the lower-priced Wintel duopoly of Intel-powered PC clones running Microsoft Windows, and neared bankruptcy by 1997. To overhaul its market strategy, it acquired NeXT, bringing Jobs back to the company. Under his leadership, Apple returned to profitability by introducing the iMac, iPod, iPhone, and iPad devices; creating the iTunes Store; launching the "Think different" advertising campaign; and opening the Apple Store retail chain. Jobs resigned in 2011 for health reasons, and died two months later; he was succeeded as CEO by Tim Cook.
Apple's product lineup includes portable and home hardware like the iPhone, iPad, Apple Watch, Mac, and Apple TV; several in-house operating systems such as iOS, iPadOS, and macOS; and various software and services including Apple Pay and iCloud, as well as multimedia streaming services like Apple Music and Apple TV. Since 2011, Apple has for the most part been the world's largest company by market capitalization, and, as of 2024, is the largest manufacturing company by revenue, the fourth-largest personal computer vendor, the largest vendor of tablet computers, and the largest vendor of mobile phones. Apple became the first publicly traded US company to be valued at over $1 trillion in 2018, and, as of 2025, is valued at just over $4 trillion.
Apple has received criticism regarding its contractors' labor conditions, its relationship with trade unions, its environmental practices, and its corporate ethics, including anti-competitive tactics, materials sourcing, and its acquisitions of smaller businesses. Nevertheless, the company has a large following and enjoys a high level of customer loyalty. Apple has consistently been ranked as one of the world's most valuable brands since the late 2000s.
History
1976–1980: Founding and incorporation
Apple Computer Company was founded on April 1, 1976, by Steve Jobs, Steve Wozniak, and Ronald Wayne as a partnership. The company's first product was the Apple I, a computer designed and hand-built entirely by Wozniak. To finance its creation, Jobs sold his Volkswagen Bus, and Wozniak sold his HP-65 calculator. Neither received the full selling price but in total earned. Wozniak debuted the first prototype at the Homebrew Computer Club in July 1976. The Apple I was sold as a motherboard with CPU, RAM, and basic textual-video chips—a base kit concept which was not yet marketed as a complete personal computer. It was priced soon after debut for. Wozniak later said he was unaware of the coincidental mark of the beast in the number 666, and that he came up with the price because he liked "repeating digits".Apple Computer, Inc. was incorporated in Cupertino, California, on January 3, 1977, without Wayne, who had left and sold his share of the company back to Jobs and Wozniak for $800 only twelve days after having co-founded it. Multimillionaire Mike Markkula provided essential business expertise and funding of to Jobs and Wozniak during the incorporation of Apple. During the first five years of operations, revenue grew exponentially, doubling about every four months. Between September 1977 and September 1980, yearly sales grew from $775,000 to million, an average annual growth rate of 533%.
The Apple II, also designed by Wozniak, was introduced on April 16, 1977, at the first West Coast Computer Faire. It differs from its major rivals, the TRS-80 and Commodore PET, because of its character cell-based color graphics and open architecture. The Apple I and early Apple II models use ordinary audio cassette tapes as storage devices, which were superseded by the -inch floppy disk drive and interface called the Disk II in 1978.
The Apple II was chosen to be the desktop platform for the first killer application of the business world: VisiCalc, a spreadsheet program released in 1979. VisiCalc created a business market for the Apple II and gave home users an additional reason to buy an Apple II: compatibility with the office, but Apple II market share remained behind home computers made by competitors such as Atari, Commodore, and Tandy.
On December 12, 1980, Apple went public with an initial public offering on the fully electronic Nasdaq stock market, selling 4.6 million shares at $22 per share, generating over $100 million, which was more capital than any IPO since Ford Motor Company in 1956. By the end of the day, around 300 millionaires were created, including Jobs and Wozniak, from a stock price of $29 per share and a market cap of $1.778 billion.
1980–1990: Success with Macintosh
In November and December 1979, Steve Jobs and Apple employees, including Jef Raskin, visited Xerox PARC, where they observed the Xerox Alto, featuring a graphical user interface and a mouse. Jobs had negotiated with Xerox in advance to gain access to PARC's technology, in exchange for the right to purchase $1 million worth of Apple's pre-IPO shares. This visit influenced Jobs to implement a GUI in Apple's products, starting with the Apple Lisa. Despite being pioneering as a mass-marketed GUI computer, the Lisa suffered from high costs and limited software options, leading to commercial failure.Jobs, infuriated by his removal from the Lisa team, joined the company's Macintosh division in January 1981. Raskin had envisioned the Macintosh as a low-cost, portable computer and Wozniak had helped its development until a plane crash in early 1981 forced him to step back from the project. Wozniak's absence allowed Jobs to quickly take over the project and he redefined the Macintosh as a graphical system that would be cheaper than the Lisa, undercutting his former division. Jobs was also hostile to the Apple II division, which at the time, generated most of the company's revenue.
In 1984, Apple launched the Macintosh, the first personal computer without a bundled programming language. Its debut was signified by "1984", a -million television advertisement directed by Ridley Scott that aired during the third quarter of Super Bowl XVIII on January 22, 1984. This was hailed as a watershed event for Apple's success and was called a "masterpiece" by CNN and one of the greatest TV advertisements of all time by TV Guide.
The advertisement created great interest in the Macintosh, and sales were initially good, but began to taper off dramatically after the first three months as reviews started to come in. Jobs had required of RAM, which limited its speed and software in favor of aspiring for a projected price point of. The Macintosh shipped for, a price panned by critics due to its slow performance. In early 1985, this sales slump triggered a power struggle between Steve Jobs and CEO John Sculley, who had been hired away from Pepsi two years earlier by Jobs saying, "Do you want to sell sugar water for the rest of your life or come with me and change the world?" Sculley removed Jobs as the head of the Macintosh division, with unanimous support from the Apple board of directors.
The board of directors instructed Sculley to contain Jobs and his ability to launch expensive forays into untested products. Rather than submit to Sculley's direction, Jobs attempted to oust him from leadership. Jean-Louis Gassée informed Sculley that Jobs had been attempting to organize a boardroom coup, and called an emergency meeting at which Apple's executive staff sided with Sculley, and stripped Jobs of all operational duties. Jobs resigned from Apple in September 1985 and took several Apple employees with him to found NeXT. Wozniak had also quit his active employment at Apple earlier in 1985 to pursue other ventures, expressing his frustration with Apple's treatment of the Apple II division and stating that the company had "been going in the wrong direction for the last five years". Wozniak remained employed by Apple as a representative, receiving a stipend estimated to be $120,000 per year. Jobs and Wozniak remained Apple shareholders following their departures.
After the departures of Jobs and Wozniak in 1985, Sculley launched the Macintosh 512K that year with quadruple the RAM, and introduced the LaserWriter, the first reasonably priced PostScript-based laser printer. PageMaker, an early desktop publishing application taking advantage of the PostScript language, was also released by Aldus Corporation in July 1985. It has been suggested that the combination of Macintosh, LaserWriter, and PageMaker was responsible for the creation of the desktop publishing market.
This dominant position in the desktop publishing market allowed the company to focus on higher price points, the so-called "high-right policy" named for the position on a chart of price vs. profits. Newer models selling at higher price points offered higher profit margin, and appeared to have no effect on total sales as power users snapped up every increase in speed. Although some worried about pricing themselves out of the market, the high-right policy was in full force by the mid-1980s, due to Jean-Louis Gassée's slogan of "fifty-five or die", referring to the 55% profit margins of the Macintosh II.
This policy began to backfire late in the decade as desktop publishing programs appeared on IBM PC compatibles with some of the same functionality of the Macintosh at far lower price points. The company lost its dominant position in the desktop publishing market and estranged many of its original consumer customer base who could no longer afford Apple products. The Christmas season of 1989 was the first in the company's history to have declining sales, which led to a 20% drop in Apple's stock price. During this period, the relationship between Sculley and Gassée deteriorated, leading Sculley to effectively demote Gassée in January 1990 by appointing Michael Spindler as the chief operating officer. Gassée left the company later that year to set up a rival, Be Inc.