Apple Computer Case Analysis

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Apple Computer Case Analysis


Steve Jobs and Steve Wozniak founded Apple on April 1, 1976 in Santa Clara Valley, California. The two built the Apple I out of a garage and sold it. The first Apple I computer did not include a monitor, keyboard, or casing. Due to the high demand for the Apple I, Jobs realized that there was a market for small computers. He also realized that he could market the company's name and the computer's user-friendly look.

In 1977 Wozniak added a keyboard, color monitor, and eight peripheral device slots. Apple sales increased from $7.8 million in 1978 to $117 million by 1980, which was the year that Apple went public. Wozniak left the Apple in 1983 and Jobs hired PepsiCo's John Sculley as president. In 1984 Apple introduced the Macintosh and bounced back from failed product introductions. Jobs left Apple in 1985 and founded NeXT Software, which is a designer of applications for software development. Microsoft founder Bill Gates' appealed for Apple to license its products and make the Microsoft platform an industry standard, but Sculley ignored his offer.

In 1986 Apple introduced its Mac Plus and LaserWriter printers. Shortly after, Apple formed the software company that later became Claris. By the 1980s Microsoft brought new competition with the Windows operating system (OS) which was similar to Apple’s graphical interface. Apple sued Microsoft but lost its claim due to the 1992 copyright protection.

In 1993 Apple introduced the Newton handheld computer, but sale did not show much promise. Since earnings were decreasing, Apple had to downsize its workforce. Sculley was among the employees who left the company. By 1994 Apple started licensing clones of its OS, hoping to attract software developers. In 1996 Apple realized Mac clones were stealing sales and hired Gilbert Amelio as CEO, formerly from National Semiconductor.

In 1997 Apple purchased NeXT, but sales continued to decline. The company was forced again to downsize, cutting about 30% of its workforce. Many projects were canceled and research costs were cut, due to the downsizing of the company. Jobs and Amelio returned to Apple to work on a temporary basis. An alliance with Microsoft was formed, which was a Mac version of the Microsoft office software. Apple discontinued the cloning license from Power Computing to protect the company’s market share.

In 1998 Apple introduced the Mac OS X, which is the company’s first server software. The company also enhanced the iMacs with a colorful product line.

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