Apple Inc.

1976–1984: Founding and incorporation

Apple Computer Company was founded as a partnership on April 1, 1976, by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company's first product was the Apple I, designed by Wozniak and hand-built. To finance production, Jobs sold his Volkswagen Bus and Wozniak sold his HP-65 calculator. Although neither received the full selling price, together they raised $1,300 (equivalent to $7,400 in 2025).

Wozniak demonstrated the first Apple I prototype at the Homebrew Computer Club in July 1976, where local computer retailer Byte Shop placed an order for 50 fully assembled computers. Unlike most contemporary hobbyist computers, which were sold as kits requiring assembly, the Apple I came as a pre-assembled motherboard with a CPU, RAM, and built-in video circuitry, allowing it to connect directly to a household television instead of requiring a costly computer terminal. Users still had to provide a case, power supply, and keyboard. It was introduced at a price of $666.66 (equivalent to $3,770 in 2025).

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 (equivalent to $4,530 in 2025) twelve days after its founding. Multimillionaire Mike Markkula provided business expertise and invested $250,000 (equivalent to $1,328,000 in 2025) during the company's incorporation. During its first five years, revenue grew rapidly, doubling approximately every four months. Between September 1977 and September 1980, annual sales increased from $775,000 to 118 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. Alongside the Commodore PET 2001 and the TRS-80, it formed the " 1977 Trinity " of influential personal computers that established the home computer market. Unlike the Apple I, the Apple II was mass-produced as a complete personal computer housed in a plastic case with a built-in keyboard, color graphics, and an open architecture. Apple introduced the Disk II 5 + 1 ⁄ 4 -inch floppy disk drive in 1978, replacing cassette tape storage with faster and more reliable removable disks.

The Apple II became Apple's first major commercial success following the 1979 release of VisiCalc, the first widely adopted spreadsheet program and one of the earliest personal computer " killer applications ". Initially available exclusively for the Apple II, VisiCalc transformed the computer into a popular business tool and helped establish Apple in the growing personal computer industry.

On December 12, 1980, Apple became a public company through an initial public offering (IPO) on the Nasdaq. The company sold 4.6 million shares at $22 each, raising more than $100 million, the largest IPO since Ford Motor Company 's 1956 offering. By the end of the first day of trading, Apple's market capitalization reached $1.778 billion and more than 300 employees and investors became millionaires.

In November and December 1979, Apple employees, including Jobs and Jef Raskin, visited Xerox PARC twice as part of a technology exchange negotiated by Jobs, in which Xerox was granted the right to purchase $1 million of Apple's pre-IPO stock. There they observed the experimental Xerox Alto, which featured a graphical user interface (GUI) navigated with a mouse, that inspired Jobs to incorporate a GUI into Apple's future products. Apple's first GUI-based computer, the Apple Lisa, was introduced in 1983. Although the Lisa was pioneering as a mass-marketed GUI computer, its high price and limited software library resulted in poor sales.

Jobs was removed from the Lisa project during its early development and joined the Macintosh division in 1981. The Macintosh had originally been conceived by Raskin as a low-cost, portable computer, with early contributions from Wozniak. After Wozniak stepped back following a plane crash, Jobs took over the project, transforming the Macintosh into a mouse-driven computer with a GUI similar to the Lisa. Wozniak later speculated that Jobs' rivalry with the Lisa project was the driving force behind this shift in direction. Jobs was also hostile toward the Apple II division, which at the time generated most of the company's revenue.

1984–1991: Success with Macintosh

In 1984, Apple launched the original Macintosh on January 24, 1984, introducing it to the public with " 1984 ", a US$1.5 -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 commercials of all time" by TV Guide. Although initial Macintosh sales were strong, they declined rapidly after the first few months as reviewers criticized its limited 128 KB of RAM, small software library, and relatively high price of $2,495 (equivalent to $7,700 in 2025).

Slow Macintosh sales led to a power struggle between Jobs and chief executive officer John Sculley, whom Jobs had recruited from PepsiCo in 1983. The board of directors instructed Sculley to limit Jobs' ability to launch further expensive forays into untested products. Rather than accept Sculley's direction, Jobs attempted to remove him as chief executive. Jean-Louis Gassée informed Sculley of Jobs' efforts to organize a boardroom coup, prompting an emergency meeting in which Apple's executive staff sided with Sculley. In May 1985, the board stripped Jobs of all operational duties. Jobs resigned from Apple in September 1985 and founded competitor NeXT, taking several Apple employees with him.

Wozniak had already stepped away from day-to-day operations following a 1981 plane crash. He left active employment at Apple in 1985, citing frustration that the company was prioritizing the Macintosh over the Apple II division, which continued to generate a significant portion of Apple's revenue during the mid-1980s. He remained an Apple shareholder and continued to represent the company in a ceremonial capacity.

After the departures of Jobs and Wozniak in 1985, Sculley shifted Apple's focus toward expanding the Macintosh platform and appointed Gassée to lead Macintosh development, placing him in the role previously held by Jobs. That year, Apple introduced the LaserWriter in March, one of the first affordable PostScript -based laser printers, while Aldus Corporation introduced PageMaker in July. The combination of the Macintosh, LaserWriter, and PageMaker helped establish the desktop publishing market.

In March 1987, Apple introduced the Macintosh II, a modular computer with a separate monitor. It was the first Macintosh to support color graphics and feature internal expansion slots, broadening the platform's capabilities beyond the original all-in-one design.

Apple's success in desktop publishing allowed the company to pursue a premium pricing strategy, sometimes referred to as the "high-right policy" because of its position on a price–profitability chart. Under this strategy, Apple focused on higher- margin products rather than competing on price, with executives believing that power users would continue to pay for increased performance and capabilities. The policy was championed by Gassée, who promoted a target Macintosh profit margin of 55 percent. Gassée also opposed proposals to license the Mac OS to other manufacturers.

By 1988, Gassée was viewed by some as a potential successor to Sculley, however, the "high-right policy" he championed began to lose ground as desktop publishing software became available on IBM PC compatible computers that sold at lower prices. For the first time in the company's history, sales declined in the 1989 holiday season, followed by a 20 percent drop in Apple's stock price. In January 1990, Sculley appointed Michael Spindler as chief operating officer, reducing Gassée's influence. Gassée left Apple at the end of 1990 and founded competitor Be Inc. in 1991, taking several Apple employees with him.

The company shifted its product strategy and, in October 1990, introduced three lower-cost models: the Macintosh Classic, LC, and IIsi, all of which sold well. In 1991, Apple introduced the PowerBook line of laptop computers, whose design influenced nearly all future laptops by placing the keyboard behind a built-in pointing device, creating palm rests. The PowerBook was commercially successful, capturing about 40 percent of the notebook computer market during its first year. The same year, Apple introduced System 7, a major upgrade to the Macintosh operating system that introduced a color user interface and improved networking capabilities. The success of the lower-priced Macintosh models and the PowerBook contributed to increased revenue. MacAddict later described the period from 1989 to 1991 as the Macintosh's "first golden age".

1991–1997: Decline and increased competition

However, the success of the lower-cost Macintosh models also cannibalized sales of Apple's high-end systems. In response, the company introduced several new brands, selling largely identical machines at different price points, for different markets: the high-end Quadra series, the mid-range Centris, and the consumer-oriented Performa. This led to widespread consumer confusion. Apple discontinued the Apple II in 1993 after encouraging developers and customers to transition to the Macintosh, bringing the company's longest-running product line to an end.

During the 1990s, Apple also branched out beyond computers, developing several consumer products, among them the QuickTake digital cameras, PowerCD, Pippin game console, eWorld online service, Apple Interactive Television Box, and the Apple Newton PDA line. Although technologically ambitious, none achieved commercial success. [ citation needed ]

Meanwhile, Microsoft expanded the reach of Windows by focusing on inexpensive personal computers, while Apple continued to emphasize premium hardware with high profit margins. Apple unsuccessfully sued Microsoft over similarities between Windows and the Lisa operating system. The consumer product flops and the rapid loss of market share to Windows sullied Apple's reputation, and in 1993 Sculley was replaced as CEO by Michael Spindler.

In 1994, Apple, IBM, and Motorola formed the AIM alliance to promote the PowerPC platform. That year, Apple introduced the first Power Macintosh models using PowerPC processors. In the wake of the alliance, Apple opened up to the idea of allowing Motorola and other companies to build Macintosh clones. Over the next two years, 75 distinct Macintosh clone models were introduced. However, by 1996, Apple executives were worried that the clones were cannibalizing sales of its own high-end computers, where profit margins were highest.

Spindler's tenure was also marked by repeated attempts to modernize the Macintosh operating system. The original System 1 was not built for multitasking (running several applications at once), and although Apple introduced cooperative multitasking in System 5, the company concluded that a more modern approach was needed. Internal efforts, including Pink, A/UX, and Copland, failed to produce a suitable successor, with Copland falling well behind schedule before being abandoned.

In 1996, Spindler was replaced as CEO by Gil Amelio, who was hired for his reputation as a corporate rehabilitator. Amelio made big changes, including extensive layoffs and cost-cutting. Amelio began evaluating external operating systems, including Windows NT and Solaris, before entering negotiations to acquire Be Inc. and its BeOS operating system. The talks ultimately collapsed amid disagreements over the company's valuation, with Be seeking substantially more than Apple was willing to pay. Gassée later disputed that the negotiations failed solely over price, stating that disagreements over his prospective role at Apple also contributed to the breakdown.

Apple instead acquired NeXT, the company founded by Steve Jobs, for its NeXTSTEP operating system. Apple purchased NeXT for $427 million in cash, stock, stock options, and assumed debt. At the insistence of Amelio, Jobs accepted 1.5 million Apple shares to lend credibility to the deal and agreed to return to Apple as an advisor.

1997–2007: Restructuring and return to profitability

The NeXT acquisition was completed on February 7, 1997. Jobs quickly became frustrated with the leadership of Amelio and Apple's board. In June 1997, he anonymously sold his 1.5 million shares, sending the company's stock price lower and contributing to pressure on Amelio, whom the board ousted the following month. Jobs became Apple's de facto leader and was formally appointed interim CEO on September 16.

In August 1997, Jobs secured a $150 million investment from Microsoft and a commitment to continue developing software for the Mac platform, an agreement widely viewed as beneficial to both companies following Microsoft's antitrust settlement with the U.S. Department of Justice. Jobs ended the Macintosh clone licensing program, and in September 1997, acquired the largest clone manufacturer, Power Computing. In November 1997, the online Apple Store launched and adopted a build-to-order manufacturing model similar to that used by Dell. By the end of 1997, Jobs had returned Apple to profitability, reporting a profit of $309 million.

Jobs streamlined Apple's product lineup, eliminating roughly 70 percent of existing models and introducing a simplified 'four-quadrant' product strategy consisting of one desktop and one laptop computer each for consumer and professional markets. The restructuring eliminated approximately 3,000 jobs.

The first all-new product introduced under this strategy was the iMac, unveiled on May 6, 1998. Designed by Jony Ive, the all-in-one computer featured a distinctive translucent design enclosure, emphasized Internet connectivity (the "i" in iMac), adopted modern technologies such as USB, and omitted legacy technologies like the floppy disk drive. It sold approximately 800,000 units within its first five months on the market.

Apple completed the transition to the four-quadrant lineup on July 21, 1999, with the introduction of the consumer-oriented iBook laptop. It joined the iMac and updated G3 -powered versions of the professional Power Macintosh desktop and PowerBook laptop, completing the simplified product matrix. Jobs said the smaller product lineup allowed Apple to focus more on quality and innovation.

During this period, Apple also focused on building an ecosystem around digital media, similar to its earlier efforts in desktop publishing, through a series of acquisitions and product launches. Apple acquired Macromedia 's Key Grip digital video editing project, which became Final Cut Pro in April 1999. The technology also contributed to the development of iMovie, Apple's consumer video-editing application, released in October 1999. In April 2000, Apple acquired German company Astarte, whose DVDirector DVD authoring software was repackaged as DVD Studio Pro for professionals and adapted into iDVD for consumers. Later that year, Apple acquired SoundJam MP from Casady & Greene and relaunched it as iTunes, adding a simplified interface and CD-burning capabilities.

In 2001, Apple made three announcements that would shape its future direction. On March 24, Apple released Mac OS X, its next-generation operating system after years of failed attempts to modernize the classic Mac OS. Based on NeXTSTEP, Mac OS X combined a stable, reliable, and secure Unix foundation with a redesigned GUI. In May, Apple opened its first two Apple Store retail locations in McLean, Virginia, and Glendale, California, providing controlled spaces to showcase its products and services. Despite skepticism that it would be able to compete as a retailer, the stores succeeded, and Apple expanded to more than 500 locations worldwide. On November 10, Apple released the iPod, its first major consumer product outside the computer market in years. The portable digital audio player became a major success, selling more than 100 million units within six years.

In 2002, Apple acquired Nothing Real for its digital compositing application Shake, and Emagic, developer of the music production software Logic. The acquisition made Apple the first computer manufacturer to own a music software company and was followed by the development of the consumer-oriented GarageBand application. In 2002, Apple also introduced iPhoto, completing the iLife software suite.

In 2003, Apple launched the iTunes Store, allowing customers to purchase and download music for 99¢ per song. The service quickly became the leading online music retailer, reaching more than 5 billion downloads by June 2008 and becoming the world's largest music retailer two years later. The iTunes Store helped transform the music industry by shifting consumers from unauthorized file-sharing services such as Napster toward paid digital distribution.

In January 2005, Apple introduced the Mac Mini, a low-cost computer intended to attract Windows users. It was priced starting at US$499 (equivalent to $800 in 2025) with users expected to re-use their existing display, keyboard, and mouse.

At the Worldwide Developers Conference on June 6, 2005, Jobs announced that Apple would transition the Mac from PowerPC to Intel processors over the following two years. The first Intel-based Macs, the MacBook Pro and iMac, were introduced on January 10, 2006, using Intel's Core Duo processors. Apple completed the transition on August 7, 2006, approximately one year ahead of its announced schedule. During the transition, the Power Mac, iBook, and PowerBook brands were retired and replaced by the Mac Pro, MacBook, and MacBook Pro. Apple also introduced Boot Camp in 2006, allowing users to install Windows on Intel-based Macs alongside Mac OS X.

Between 2003 and 2006, the price of Apple's stock increased more than tenfold, from around $6 per share ( split-adjusted ) to over $80. When Apple surpassed Dell's market cap in January 2006, Jobs sent an email to Apple employees saying Michael Dell should eat his words, referencing his 1997 remark that, if he ran Apple, he would "shut it down and give the money back to the shareholders".

2007–2011: Success with mobile devices

During his keynote at the Macworld Expo on January 9, 2007, Jobs announced that Apple Computer, Inc. would be renamed Apple Inc. to reflect the company's expanded focus on consumer electronics. He also introduced the Apple TV and the iPhone. The iPhone had been developed in secret since 2005 and was the subject of widespread speculation before its introduction. Jobs presented it as a device that combined the functions of an iPod, a mobile phone, and an Internet communications device. Unlike most contemporary mobile phones, it used a finger-operated multi-touch interface and eliminated most physical buttons. Released in the United States on June 29, 2007, the iPhone sold 270,000 units within 30 hours of release.

In an open letter published on February 6, 2007, Jobs said Apple favored selling music on the iTunes Store without FairPlay, its digital rights management (DRM) technology, if record labels agreed to remove DRM from their music catalogs. On April 2, 2007, EMI announced that DRM would be removed from its catalog beginning in May 2007. Other record labels later followed suit, and Apple announced in January 2009 that all songs were available without DRM.

In July 2008, Apple launched the App Store for third-party iPhone applications. Within a month, the store had sold 60 million applications and generated average daily revenue of $1 million. Jobs said the App Store could become a billion-dollar business for Apple.

On January 14, 2009, Jobs announced that he would take a six-month medical leave of absence through the end of June to focus on his health. During his absence, Apple reported revenue of $8.16 billion and profit of $1.21 billion for its first fiscal quarter of 2009.

Apple introduced the iPad on January 27, 2010. It ran the same touch-based operating system as the iPhone and supported existing iPhone applications. Released in the United States on April 3, 2010, the iPad sold more than 300,000 units on its first day and more than 500,000 during its first week. In May 2010, Apple's market capitalization exceeded Microsoft's for the first time since 1989.

On January 17, 2011, Jobs announced in an internal Apple memo that he would take another indefinite medical leave to focus on his health. Chief operating officer Tim Cook assumed responsibility for Apple's day-to-day operations while Jobs remained involved in major strategic decisions. In June 2011, Jobs introduced iCloud, an online storage and synchronization service that replaced MobileMe. It was the last Apple product launch presented by Jobs before his death.

On August 24, 2011, Jobs resigned as Apple's chief executive officer because of his health. Cook succeeded him as CEO, and Jobs became chairman of Apple, a new position at the company. Arthur Levinson succeeded Jobs as chairman in November 2011 following Jobs' death.

2011–2020: Post-Jobs era, new devices

On October 5, 2011, Steve Jobs died. That same month, Apple released the iPhone 4s, which introduced Siri, an intelligent software assistant built into iOS. On August 20, 2012, Apple's rising stock price increased the company's market capitalization to a then-record $624 billion. This beat the non-inflation-adjusted record for market capitalization previously set by Microsoft in 1999.

In May 2014, Apple announced it would acquire Dr. Dre and Jimmy Iovine 's company Beats Electronics, the producer of the "Beats by Dr. Dre" headphone line and operator of the Beats Music streaming service, for US$3 billion. It was the largest acquisition in Apple's history at the time. At WWDC in June 2015, Apple launched Apple Music, a subscription streaming service built on the Beats acquisition.

During a press event on September 9, 2014, Apple introduced the Apple Watch, its first smartwatch. Apple initially marketed the device as a fashion accessory and a companion to the iPhone, before shifting its focus toward health and fitness features to compete with dedicated activity trackers.

In September 2017, Apple released the iPhone X, which replaced the physical home button with an edge-to-edge display and introduced Face ID, a facial-recognition system that replaced Touch ID as the phone's unlock method. The design set the template for subsequent iPhone models. That same year, in June 2017, Apple announced HomePod, its first smart speaker, aimed at competing with Sonos, Google Home, and Amazon Echo.

Also in 2017, Apple formed a video unit to produce original television series and films, later marketed as Apple TV, and in June 2018, Apple signed the Writers Guild of America 's minimum basic agreement.

On August 19, 2020, Apple's share price briefly topped $467.77, making it the first US company with a market capitalization of US$2 trillion.

2020–2026: Transition to Apple silicon

Apple announced its transition away from Intel processors to Apple-designed silicon at WWDC in 2020. The first Macs powered by the M1 chip were introduced later that year, with the company highlighting their improved performance and energy efficiency. The transition to Apple-designed processors also reduced the company's dependence on external suppliers during the global semiconductor shortage.

In March 2022, Apple TV+'s CODA won the Academy Award for Best Picture, making it the first film distributed by a streaming service to win the award.

In June 2023, Apple announced the Vision Pro, a mixed-reality headset. It was released in February 2024.

In January 2024, Apple responded to Digital Markets Act regulations by allowing users within the European Union to use alternative app stores, alternative payment methods within apps, and choose alternative web browsers on devices.

At WWDC 2024, Apple introduced Apple Intelligence, a suite of artificial intelligence (AI) features integrated across its operating systems.

In 2025, Apple announced plans to invest more than US$500 billion in the United States over four years, including expanded manufacturing, research, and AI infrastructure. At WWDC 2025, the company introduced the Liquid Glass design language across its operating systems.

On September 1, 2026, Tim Cook stepped down as CEO after 15 years in the role, transitioning to executive chairman of the company's board of directors. John Ternus succeeded him as CEO. At the same time, Arthur Levinson, who had served as board chairman for 15 years, became lead independent director.