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harvard case apple
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Apple Inc. in 2012

Apple and its History Steve Jobs and Steve Wozniak founded Apple in California in 1976. Their mission was to introduce an easy to use computer to market, which led to a computing revolution and quickly became the industry leader by selling more than 100,000 Apple IIs in 1980. After IBM entered PC market, IBM PCs, which used Microsoft’s DOS (OS), gained more market share and became the new standard for the PC industry. At the same time, Apple introduced the Macintosh in 1984. However, Apple’s net income fell 62% due to the Mac’s slow processor speed and lack of software limited sales. In 1985, Steve Jobs was forced out and John Sculley took charge of the Mac. Under the direction of Sculley, Apple found its new market in desktop publishing. Despite Sculley’s efforts, Apple’s gross margin dropped to 34% and Sculley was replaced by Micheal Spindler. Over 2,500 jobs were cut, almost 16% of Apple’s workforce and the company was totally reconstructed. After losing a $69 million for developing a revolutionary OS, Gilbert Amelio was appointed as another new CEO. Amelio announced that Apple should develop a new OS based on NeXT, however the company was still in chaos. Finally, Steve Jobs got the title of CEO in 1997 to save Apple. Unlike previous CEOs, Jobs focused on Apple’s strength, ‘closed door policy’. In addition, he wanted Apple to have a culture influence in a way of innovative, new thinking, and creative. In 1998, he introduced the iMac and the line became a sales smash. Steve Jobs brought iTunes, iPod, MacBook and iPhone to the public and change the way people download music and use laptop computers. Today Apple became one of the largest and most profitable companies in the world. After Job’s death, Tim Cook was assigned as a new CEO and faced challenge in a way to take Apple to the next level.

The Personal Computer Industry The history of personal computer industry fell into two main companies; Apple and

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