History of Apple


History of Apple

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1975-1984: Jobs and Woz

Pre-foundation

Before Steve Wozniak co-founded Apple, he was an electronics hacker. Steve Jobs and Steve Wozniak were known as outcasts while they were in high school. As a kid Stephen Wozniak would become so engrossed in mathematical ponderings his mother would have to shake him to bring him back to reality. By 1975, he was working at Hewlett-Packard and helping his friend Steve Jobs design video games for Atari. Wozniak had been buying computer time on a variety of minicomputers hosted by Call Computer, a time-sharing firm run by Alex Kamradt. The computer terminals available at that time were primarily paper-based; thermal printers like the Texas Instruments Silent 700 were state of the art. Wozniak had seen a 1975 issue of "Popular Electronics" magazine on how to build your own computer terminal. Using off-the-shelf parts, Wozniak designed the Computer Conversor, a 24-line by 40-column, uppercase-only 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.

On June 12, 2005 at Stanford University's 2005 Commencement Address Jobs said, "When I was young, there was an amazing publication called "The Whole Earth Catalog", which was one of the bibles of my generation. It was created by a fellow named Stewart Brand not far from here in Menlo Park, and he brought it to life with his poetic touch. This was in the late 1960s, before personal computers and desktop publishing, so it was all made with typewriters, scissors, and polaroid cameras. It was sort of like Google in paperback form, 35 years before Google came along: it was idealistic, and overflowing with neat tools and great notions." [cite web|last= Jobs|first= Steve|authorlink= Steve Jobs|coauthors= |date=June 14, 2005 |url= http://news-service.stanford.edu/news/2005/june15/jobs-061505.html |title= 'You've got to find what you love,' Jobs says|format= |work= |pages= |publisher= Stanford Report |accessdate= 2006-05-04|accessyear= ]

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 $179 Intel 8080, and the $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 $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.

The Apple I

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 $500 each on delivery.cite book | title=iCon Steve Jobs: The Greatest Second Act in the History of Business| last=Young| first=Jeffrey| coauthors=William L. Simon| year=2005| pages=35| publisher=John Wiley & Sons| location=Hoboken, New Jersey| id=978-0471720836] 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."Fact|date=March 2007

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. Eventually 200 of the Apple I's were built.

The Apple II

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 textile technician named Mizushima Satoshi 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 cost a lot more money. 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 $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. [cite book |title=Apple Confidential | last=Linzmayer | first=Owen]

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.

The Apple IPO

In December 1980, Apple launched the Initial Public Offering of its stock to the investing public. When Apple went public, it generated more money than any IPO since Ford Motor Company in 1956 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: it was a small, exclusive club.) 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.Fact|date=February 2007

The Apple III

By the early 1980s, Apple Computer faced increasing competition from other companies. The main competitor of Apple Computer was Commodore, an established PC maker whose computers were outselling the Apple's of the time. However, this was soon to change as the long established maker of business level mainframes, IBM, was to enter the market.

While the Apple II was already established as a successful business-ready platform because of Visicalc, Apple was not contented. 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 Circuits 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.

Xerox PARC and the 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 December, 1979, Steve Jobs and a group of Apple Computer engineers toured the Xerox PARC laboratories and witnessed Xerox's research into the GUI as demonstrated on the Alto computer. It was this moment that Steve Jobs decided the future of computers was in the GUI, rather than the standard text-based interface.

In return for $1,000,000 USD of pre-IPO stock, Xerox granted Apple Computer three days access to the PARC facilities. During this time, Apple Computer engineers studied the intricacies of the GUI or "WIMP" interface, and came away with the basis for Apple Computer's first GUI computer, the Apple LISA. (Popular folklore states that "Lisa" was Steve Jobs' first daughter; Apple maintains it means Locally Integrated Software Architecture.)

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 $9,995. Because of the high price, it failed to penetrate the market, however it was a useful proof of concept.

The release of the Macintosh and the 1984 commercial

The Macintosh 128k was announced to the press in October 1983, followed by an 18-page brochure included with various magazines in December. [cite web|url=http://www.digibarn.com/collections/ads/apple-mac/index.htm|title=Apple Macintosh 18 Page Brochure|publisher=DigiBarn Computer Museum|accessdate=2006-04-24] 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 22 January, 1984, [ [http://www.duke.edu/~tlove/mac.htm Apple's 1984: The Introduction of the Macintosh in the Cultural History of Personal Computers] ] and is now considered a "watershed event" [ [http://www.usatoday.com/tech/columnist/kevinmaney/2004-01-28-maney_x.htm Apple's '1984' Super Bowl commercial still stands as watershed event] ] and a "masterpiece."cite web
url=http://edition.cnn.com/2006/SHOWBIZ/02/02/eye.ent.commercials/
title= Why 2006 isn't like '1984'
accessdate= 2008-05-10
author=
last=Leopold
first=Todd
authorlink=
coauthors=
date= 3 February 2006
work=
publisher=CNN
] "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).cite web
url=http://findarticles.com/p/articles/mi_hb197/is_200401/ai_n5556112
title= The Story Behind Apple's '1984' TV commercial: Big Brother at 20
accessdate= 2008-05-09
author=
last=Cellini
first=Adelia
authorlink=
coauthors=
month=January | year=2004
work= MacWorld 21.1, page 18
publisher=
] 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. [cite web|url=http://www.guidebookgallery.org/ads/magazines/macos/macos10-newsweek|title=1984 "Newsweek" Macintosh ads|publisher=GUIdebook, Newsweek|accessdate=2006-04-24] 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 $5,000 in 2007).cite web|url=http://www.osnews.com/story/16036/Apples-Worst-Business-Decisions/|title=Apple's Worst Business Decisions|author=Hormby, Thomas|publisher=OS News|accessdate=2007-12-24|date=2006-10-02] [cite web|url=http://data.bls.gov/cgi-bin/cpicalc.pl|title=Inflation Calculator|publisher=Bureau of Labor Statistics|accessdate=2007-12-18]

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.cite web|url=http://www.islandnet.com/~kpolsson/applehis/appl1984.htm|title=Chronology of Apple Computer Personal Computers|author=Polsson, Ken|accessdate=2007-11-18|] 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. [cite web|url=http://www.dvorak.org/blog/?page_id=8241|title=Whatever Happened to Lotus Jazz?|author=Dvorak, John|accessdate=2007-01-21|date=2006-11-26|publisher=Dvorak Uncensored] Apple introduced Macintosh Office the same year with the lemmings ad, infamous for insulting potential customers. It was not successful.

Macintosh also spawned the concept of Mac evangelism which was pioneered by Apple employee, and later Apple Fellow, Guy Kawasaki.

Despite initial marketing difficulties, such as lack of software, the monochrome-only display and the closed architecture, 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, 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.

1985: Jobs leaves Apple

After an internal power struggle between Steve Jobs and the new CEO John Sculley in 1985, Apple's board of directors sided with Sculley and Jobs was asked to resign. Jobs bought 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).

1985-1997: Sculley, Spindler, Amelio

The Apple II family of the 1980s

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. [cite web|last=Gruber |first=John |authorlink= John Gruber|coauthors= |date= August 7, 2004|url= http://daringfireball.net/2004/08/parlay/ |title= The Art of the Parlay, Or: How I Learned to Stop Worrying About Platform Licensing and Market Share|format= |work= |pages= |publisher= Daring Fireball|accessdate= |accessyear= ] 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.

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.

The Mac family

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. [ [http://thelongestlistofthelongeststuffatthelongestdomainnameatlonglast.com/first71.html First dot com .com ever in the world. symbolics.com cmu.edu purdue.edu rice.edu ucla.edu think.com css.gov mitre.org ] ]

The early-mid 1990s

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.

In 1994, Apple surprised its loyalists by allying with its long-time competitor IBM in the AIM alliance. This was a high-profile bid to create a revolutionary new computing platform, known as PReP, which would use IBM and Motorola hardware and Apple software. PReP's (projected) outstanding performance and software would leave the PC far behind, and would upset Microsoft, which Apple had identified as its real enemy.

As the first step toward the PReP platform, Apple started the Power Macintosh line in 1994, using IBM's PowerPC processor. These processors utilized 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.

In addition to computers, Apple has also produced consumer devices. In the 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.

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 20, 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. [Harreld, Heather. [http://www.fcw.com/print/3_1/news/64412-1.html?type=pf "Apple gains tech, agency customers in Next deal"] , Federal Computer Week, January 5, 1997. Retrieved August 15, 2008.] [ [http://www.accessmylibrary.com/coms2/summary_0286-5564882_ITM "Apple unveils new marketing strategy. | Knight Ridder/Tribune News Service (November, 1997)"] . Retrieved August 15, 2008]

CEO

On July 9, 1997, Gil Amelio was ousted as CEO of Apple by the board of directors after overseeing a 12 year record low stock price and crippling financial losses. Jobs stepped in as the interim CEO to begin a critical restructuring of the company's product line. He would eventually become CEO and is serving in that position to the present day.

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:cquote|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. [cite web | title=Macworld 1997: The Microsoft Deal | url=http://video.google.com/videoplay?docid=-3896484412928227820 | publisher=Google Video|date=February 7 1997|accessdate=2007-01-04 ]

1998- 2001: Apple's Renaissance

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.

Mac OS X

In 2001, Apple introduced Mac OS X, an operating system based on NeXT's NeXTstep and the FreeBSD kernel [cite web|author=Amit Singh |url=http://www.kernelthread.com/mac/osx/arch_xnu.html |title= What is Mac OS X? |work=kernelthread.com |accessdate=2007-11-23 ] . 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.

Apple retail stores

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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.

The 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 Nano, and the iPhone. As of 2008, the largest storage capacity for an iPod is 160 gigabytes.

2002 to present

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, launched the Power Mac G5, based on IBM's G5 processor. Apple claims this 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 DEC 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 $5.2 million (USD) 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. [cite web|last= |first= |authorlink= |coauthors= |year= |url=http://www.top500.org/lists/plists.php?Y=2004&M=11 |title= TOP500 List for November 2004|format= |work= |pages= |publisher= top500.org|accessdate= 2006-05-04|accessyear= ]

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).

Apple computers such as the PowerBook, the iBook, and the iMac are frequently featured as props in films and television series. Occasionally the heroes use Apple computers while the villains are relegated to PC compatibles. In 1996, Apple ran an advertising campaign for the PowerBook tying in with the film "" and in the film "Independence Day" a Macintosh laptop is used to infect the alien mothership and save the human race.

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 $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.Fact|date=February 2007

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), in January 2006 Apple also opened the Brent Cross Apple Store.

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's cores run individually at 2.0 GHz or 2.3 GHz. The Power Mac G5 Quad's cores run individually at 2.5 GHz and all variations have a graphics processor the has 256-bit power or can be expanded to 512-bit for ultimate performance. [cite web|last= Gibson|first= Brad|authorlink= |coauthors= |date= September 1, 2004|url= http://www.macobserver.com/article/2004/09/01.4.shtml|title= Apple Expo - Apple Exec: No G5 Laptop "Anytime Soon"|format= |work= |pages= |publisher= macobserver.com|accessdate= 2006-05-04|accessyear= ]

The Intel transition

In a keynote address on June 6, 2005, Steve Jobs officially announced that Apple will begin producing Intel-based Macintosh computers beginning in 2006. [cite press release|date= June 6, 2005|url= http://www.apple.com/pr/library/2005/jun/06intel.html|title= Apple to Use Intel Microprocessors Beginning in 2006|publisher= Apple Computer|accessdate= 2006-05-04] 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 "x"86 architecture. [cite web|last= |first= |authorlink= |coauthors= |date= June 6, 2005 |url=http://news.com.com/Apple+shakes+hands+with+Intel/2009-1006_3-5733319.html |title= Apple shakes hands with Intel|format= |work= |pages= |publisher= News.com|accessdate=2006-05-04 |accessyear= ] [cite web|last= |first= |authorlink= |coauthors= |date= June 6, 2005|url=http://www.appleinsider.com/article.php?id=1112 |title= Apple confirms switch to Intel|format= |work= |pages= |publisher= AppleInsider |accessdate=2006-05-04 |accessyear= ] [cite web|last=Markoff |first= John|authorlink= John Markoff|coauthors= Steve Lohr |date=June 6, 2005 |url= http://nytimes.com/2005/06/06/technology/06apple.html |title= Apple Plans to Switch From I.B.M. to Intel Chips|format= |work= |pages= |publisher= The New York Times|accessdate=2006-05-04 |accessyear= ]

On January 10, 2006, the first Intel-based machines, the iMac and MacBook Pro, were introduced. [cite press release |title = Apple Unveils New iMac with Intel Core Duo Processor |publisher = Apple Computer |date = 2006-01-10 |url = http://www.apple.com/pr/library/2006/jan/10imac.html |accessdate = 2006-09-06 ] [cite press release |title = Apple Introduces MacBook Pro |publisher = Apple Computer |date = 2006-01-10 |url = http://www.apple.com/pr/library/2006/jan/10macbookpro.html |accessdate = 2006-09-06] 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.

Financial history

As cash reserves increased significantly in 2006, Apple created Braeburn Capital on April 6, 2006 to manage its assets. [cite news |last = Hesseldahl |first = Arik |title = Apple Takes Its Bankroll to Reno |publisher = Business Week |date = 2006-04-05 |url = http://www.businessweek.com/technology/content/apr2006/tc20060405_452855.htm |accessdate = 2006-09-06 ]

tock

'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 $22.00 per share. Apple does not currently pay dividends on its common stock. Apple paid dividends from June 15, 1987 to December 15, 1995. In 1997, while Gil Amelio was still Apple CEO, AAPL stock hit a 12-year low and the company reported a $708 million loss in the first quarter.

In 2005, Apple stock increased in value and then "split": each shareholder of record at the close of business on February 18, 2005 received one additional share for every outstanding share held on the record date, and trading began on a split-adjusted basis on February 28, 2005.

As of December 22, 2006 the last trade was at $82.20 per share, up by 1.54%. As of June 10th, 2008, Apple has a market capitalization of $163.66 billion. 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. On January 13, 2006 Gene Munster maintained an 'outperform' rating on Apple and raised his price target and earnings estimates for the company. Munster raised Apple's price target to US$103 from $80, and raised fiscal 2006 estimates for Apple to $20.22 billion revenue from $17.58 billion. The analyst also said that a two-for-one stock split is likely to be announced soon. [cite web|last= |first= |authorlink= |coauthors= |date= January 13, 2006|url= http://macminute.com/2006/01/13/piper-jaffray/|title= Analyst: 'Apple Likely To Outperform Competition For Years|format= |work= |pages= |publisher= MacMinute|accessdate=2006-05-04 |accessyear= ]

Future of Apple

Apple previewed the next version of Mac OS X, version 10.6, codenamed 'Snow Leopard', on June 9,2008. 'Snow Leopard' has been rumoured to run natively on Intel Macs, but not PowerPC platforms. This next release of the Mac OS X operating system is designed to focus on performance and stability and not heavily include many new features as in the previous versions of the operating system.

Apple also released details of the new iPhone 3G, which includes Assisted GPS and the eagerly anticipated 3G data standard for fast mobile speeds. The initial release of the 3G iPhone will start on July 11, with the handset getting released to 22 countries, with around 50 more to be announced and released in the near future.

The new iPhone that was previewed on June 9, 2008 at their annual WWDC (World Wide Developers Conference), also features the new iPhone OS, version 2.0, which will be released for free for current iPhone owners, but iPod touch owners will have to pay $9.95.

The new iPhone will be released at a maximum price for the 8GB version at $199 with a contract / data plan.

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 cancelled 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 $99.95 annual subscription price as its .Mac predecssor, 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. [http://www.macrumors.com/2008/07/16/apple-sends-apology-letter-30-day-extension-to-mobileme-customers/]

iPod and iTunes Store

In October 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 its smallest iPod yet: 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%.Fact|date=February 2007

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 $0.99 per song (or $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). If these services begin to gain traction in the marketplace, it is arguable if Apple will not reshape the iTunes Music Store in some way to stay competitive.

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. [cite press release|date= December 16, 2004|url= http://www.apple.com/pr/library/2004/dec/16itunes.html|title= iTunes Music Store Downloads Top 200 Million Songs|publisher= Apple Computer|accessdate= 2006-05-04] Just under three months later Apple sold its 300 millionth song on March 2, 2005. [cite press release|date= March 2, 2005|url= http://www.apple.com/pr/library/2005/mar/02itms.html|title= iTunes Music Store Downloads Surpass 300 Million|publisher= Apple Computer|accessdate= 2006-05-04] On July 17, 2005, the iTunes Music Store sold its 500 millionth song.Fact|date=February 2007 At that point, songs were selling at an annualized rate of more than 500 million -- and that rate was growing.

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. 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. [cite press release|date= April 13, 2005|url= http://www.apple.com/pr/library/2005/apr/13results.html|title= Apple Reports Second Quarter Results|publisher= Apple Computer|accessdate= 2006-05-04] In the quarter ending March 26, 2005, Apple earned $290 million, or 34¢ a share, on sales of $3.24 billion. The year before in the same quarter, Apple earned just $46 million, or 6¢ a share, on revenue of $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 pricetag ($199 for 2 gigabytes), 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 $1.69 each, albums at (generally) $16.99 and music videos and Pixar short films at $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. [cite press release|date= February 23, 2006|url= http://www.apple.com/pr/library/2006/feb/23itms.html|title= iTunes Music Store Downloads Top One Billion Songs|publisher= Apple Computer|accessdate= 2006-05-04]

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.

ee 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.
* " [http://www.welcometomacintosh.com Welcome to Macintosh] " - 2008 documentary about Apple history and innovation.

References

External links

* [http://www.applecamera.blogspot.com/ Apple Camera]
* [http://www.appleiphonefun.blogspot.com/ Apple iPhone]
* [http://www.apple-history.com/ Apple-History.com]
* [http://apple.computerhistory.org/ Apple Computer History Weblog]
* [http://finance.google.com/finance?cid=22144 Apple Computer quotes and history on "Google Finance"]
* [http://seekingalpha.com/transcripts/for/aapl Transcripts of Apple Computer's Quarterly Conference Calls]
* [http://applemuseum.bott.org/sections/history.html Apple History Timeline]

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