Apple co-founder Steve Jobs died Wednesday after a long illness. He was 56. Jobs, who reigned as Apple CEO for 14 years, resigned his post in August 2011 and was replaced by Tim Cook, who previously was the companyโs Chief Operating Officer. Jobs, in turn, was elected as chairman of Appleโs board of directors.
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Both as the founder of the first successful personal-computer company and as the man who transformed a nearly-bankrupt Apple into one of the most successful companies on the planet, Jobs established himself as an American icon of business and technology.
Apple: The Early Years
If Steve Jobs had never returned to Apple after 1985, heโd still be remembered for the Macintosh.
Jobs didnโt create the Mac projectโit was started by Jef Raskin in 1979โbut he took it over in 1981 and brought it to fruition. Jobs didnโt write the code or design the circuit boards, but he was the one who provided the vision that made it all happen. As original Mac team member Andy Hertzfeld wrote, โSteve already gets a lot of credit for being the driving force behind the Macintosh, but in my opinion, itโs very well deserved โฆ the Macintosh never would have happened without him.โ
Our take on a post-Steve Jobs world
A timeline of the Apple chairman
Appleโs introduction of the Macintosh in 1984 introduced the graphical user interface to mainstream desktop computing. The Mac ran on a 32-bit processor (compared to 16-bit processors for other PCs at the time) and had 128K of memory. It was an immediate success: more than 400,000 Macintosh computers were sold in the first year.
The Macโs impact wasnโt just felt on people who bought it in the โ80s, though: in hindsight, it quite literally redefined what a computer was. Microsoft introduced its Windows program as a reaction to it; by 1995 Windows had duplicated Appleโs graphical interface. Essentially every personal computer in existence now follows most of the paradigms introduced by the original Mac more than a quarter-century ago.
The Mac capped off a series of accomplishments for Jobs in the early days of Apple, which he co-founded in 1976 with Steve Wozniak and Ronald Wayne. The company famously started in Jobsโs garage, where the company assembled its first computer, the Apple I. Its first mass-produced product was the Apple II, which was released in 1977. Designed by Wozniak, the Apple II featured a rugged plastic case, an integrated keyboard and power supply, support for color displays, and a 5.25-inch floppy drive. The Apple II was a wild success, ushering in the personal computer era, and carried Apple through the mid-1980s.
In the early โ80s Apple tried to build on its success with an Apple III targeted at business users, but it was a resounding failure. The story goes that Steve Jobs wanted the computer to run silentlyโa good example of Jobsโs attention to product detailโso he ordered that it be built without an internal fan. Unfortunately, customers found that the Apple III overheated frequently.
At the end of 1980, Apple went public; its IPO created hundreds of millionaires at the company. In exchange for $1 million of pre-IPO stock, Xerox gave Apple access to its PARC facilities, where Jobs and others saw the progress Xerox was making with the graphical user interface (GUI). That visit led to the Apple Lisaโa Mac-like computer that sold for nearly $10,000, and was never a successโand then the Mac.
Jobs was also a driving force behind the famous โ1984โ television commercial, directed by Ridley Scott, that debuted during the Super Bowl in January 1984. Jobs and his personally-recruited CEO John Sculley thought the iconic ad was excellent, and purchased 90 seconds of Super Bowl commercial time for the spot. Appleโs board of directors was less convinced of the advertisementโs greatness, and Appleโs advertising agency Chiat/Day resold 30 of those seconds to another advertiser. The ad ran, and the Macintosh went on sale two days later.
Eventually, the Macintoshโs increasingly sluggish sales performance strained the relationship between Jobs and Sculley. Sculley favored introducing more IBM compatibility; Jobs was opposed. Jobs and Sculley each went before Appleโs board and lobbied for the otherโs removal. Eventually, on May 31, 1985, Apple announced thatโfollowing its first-ever quarterly loss and a round of layoffsโSteve Jobs was leaving the company heโd co-founded. He left with a net worth of $150 million and started his next venture, Next.
Jobs Returns
In a commencement speech at Stanford University in 2005, Jobs said that his firing from Apple in the mid-1980s โwas the best thing that could have ever happened to me.โ That may have been true for Jobs, who used his time away from Cupertino to not only found Next but also buy a fledgling animation studio that would become Pixar, but Apple racked up more than its share of stumbles. Under several post-Jobs CEOs, Apple tried repeatedlyโand failed repeatedlyโto release an updated successor to the aging Macintosh operating system. Taligent was the future. Then CoplandโโMac OS 8โโwas hyped as the new direction for the OS, only to be abandoned and replaced with an incremental update to the original Mac OS.
In 1996, Apple decided to buy one of two companies that owned modern operating systems that could be the basis for a next-generation Mac operating system. Both were run by former Apple executives. One was Be, run by Jean-Louis Gasseโยฉ, which had an intriguing Unix-based OS that could already run on existing Mac hardware. The other was Next, still run by Steve Jobs.
In late 1996, Apple CEO Gil Amelio announced that the company would acquire Next for $400 million. That deal brought Steve Jobs back to Apple, initially as an advisor to Amelio. At the time, Apple declared โthe advanced technical underpinnings and rapid development environment of [what became Mac OS X] will allow developers to create new applications that leapfrog those of other โmodernโ operating systems, such as Windows NT.โ
Apple was rightโNextโs operating system became the basis for Mac OS Xโbut itโs unlikely that Amelio predicted precisely how the acquisition would play out. In July of 1997, Appleโs board of directors voted to remove Amelio from his post, naming Jobs the companyโs interim CEO.
That move kicked off an era of increasingโand, to date, unceasingโsuccess for Apple and Jobs. In Jobsโs August 1997 Macworld Expo keynote, Apple announced that it was ending the licensing program that allowed other companies to sell Mac-compatible computers and that Microsoft had invested $150 million in the company. Both controversial moves paid off.
A year later, Steve Jobs unveiled the product that perhaps singularly kicked off Appleโs rebound: the original iMac. Jobs had asked designer Jonathan Iveโwhom heโd eventually promote to the role of senior vice president of industrial designโto create a colorful, easy-to-set-up, all-in-one computer. The result was a new Mac with a unique look that startled the industry. Its bold color, lack of a floppy drive, and embrace of the new USB connectivity standard were all considered shockers at the time; consumers, however, were delighted. Apple sold 800,000 iMacs in fewer than five months. The floppy faded into history and USB became a roaring success. The iMac, and the Jobs/Ive partnership, cemented Appleโs stance that its insanely great products needed to look the part.
In March 2001, Apple released the first iteration of Mac OS X after a public beta that began in late 2000. The operating system was based on NextStep, the Unix-based OS devised by Jobsโs team at Next. Though it was named as a simple sequel to OS 9, OS X had an entirely new codebase and marked a dramatic new beginning. Jobs had overseen a massive effort at Apple to create native, Unix-based ports of the original Macintosh APIsโprogramming hooks upon which Mac developers relied, in a system called Carbon. That meant that developers could, with some exceptions, make their software compatible with OS X merely by recompiling it, without needing to rewrite the software from scratch. And applications that werenโt updated for OS X could take advantage of the integrated Classic environment to run OS 9 apps within OS Xโmaking the transition from OS 9 to OS X significantly less painful than many people expected it to be. OS X was a towering achievement for Jobs and Apple, and a welcome respite from the years of promised but unrealized OS upgrades from Cupertino.
Jobs oversaw other massive software undertakings around this time, too. In 1998, the companyโs QuickTime authoring standard was being threatened in the digital video editing space by Microsoftโs Advanced Authoring Format; Avid and Adobe had both moved away from the format, and only Macromediaโs KeyGrip softwareโwhich had recently been rebranded โFinal Cutโโstill incorporated it. But Final Cut had been ignored and delayed by the Macromedia higher-ups in favor of development on its Flash software, and its future was thus largely uncertain.
Something had to be done to combat these issues. That solution, as overseen by Jobs, was to buy Final Cut. The company used it to accelerate development on the QuickTime standard, releasing the first Apple-branded version, Final Cut Pro, at 1999โs National Association of Broacasters show. Final Cut Pro 1.0 was designed to provide editors interested in the non-linear space a simpler, low-cost way to get into the businessโand to ensure that QuickTime would not go the way of some of Appleโs lost software technologies.
Jobs was refining Appleโs message: The company made the computer you used to create, to explore, to โthink different.โ And as a direct result of the companyโs investment into high-end non-linear editing software, Apple could explore a new areaโconsumer-level editing.
Similarly, one of the most significant consumer-level Apple products to emerge at this time wasnโt hardware, but software: iLife. The company was ahead of the rest of the industry in realizing that digital mediaโmusic, videos, and photosโwould soon become central to peopleโs lives. In 1999, Apple released iMovie (and shipped it with a new iMac DV, for Digital Video), a program designed to let even the most-novice of computer users download video from their video camera and easily turn it into high-quality movies, complete with transitions, titles, and effects.
That was followed, in 2001, by iTunes (which debuted early in the year but became much more significant with the fall debut of the iPod) and iDVD, the latter of which let home-video takers create standard DVDs of their movies, including menus, themes, chapters, and slideshows. And 2002 brought the debut of iPhoto, which similarly made it easy to download and organize photos from digital cameras. By 2003, Apple had improved these programsโ integration with each other and rolled them into a single package, iLife, that shipped with every Mac.
The impact of iLife is often overlooked: It meant that at a time when digital media was ascendant, and Apple was trying to differentiate its hardware from the competition, every Mac included a suite of great, easy-to-use software that let people create and manage that mediaโsomething that wasnโt true of any other computer on the market at the time.
โWe donโt think the PC is dying at all,โ Jobs said during his 2001 Macworld Expo keynote where he discussed Appleโs digital hub strategy. โItโs evolving.โ
Appleโs retail strategy evolved as well. In 2001, the company opened up its first retail stores, at a time when other PC makersโmost notably Gatewayโwere stumbling with brick-and-mortar outlets. A decade later, Apple now operates more than 300 stores around the globe. The stores first turned a profit in 2004; last year, they recorded $9 billion in retail sales with $2.4 billion in retail profit. More significant, as Apple likes to point out in its quarterly earnings report, 50 percent of the people buying computers at the Apple Store are first-time Mac customers.
โPeople just donโt want to buy personal computers any more,โ Jobs said in a 2001 video introducing the stores and their philosophy. โThey want to know what they can do with them. And weโre going to show to them exactly that.โ
Four years after the introduction of OS X, Jobs and Apple instituted another transitionโthis one away from the PowerPC architecture to chips built by Intel. It was a big gamble for a company that had relied on PowerPC processors since 1994, but Jobs argued that it was a move Apple had to make to keep its computers ahead of the competition. โAs we look aheadโฆ we may have great products right now, and weโve got some great PowerPC product[s] still yet to come,โ Jobs told the audience at the 2005 Worldwide Developers Conference. โ[But] we can envision some amazing products we want to build for you and we donโt know how to build them with the future PowerPC road map.โ
The transition went much fasterโand much smootherโthan anyone, including Apple, had anticipated, thanks in large part to Rosetta. The dynamic translator let applications designed for PowerPC systems run on Intel-based Macs, giving developers time to revamp their products for Appleโs Intel-based future. In fact, PowerPC apps only became obsolete this summer when Apple retired Rosetta with the introduction of Mac OS X Lion.
Beyond the Mac
Of course, the assorted transitions during Jobsโs reign as CEO werenโt confined to the Mac. Perhaps the greatest transition Jobs initiated was moving Apple away from being just a software and computer maker and into the lucrative world of consumer electronics. The shift became official in 2007 when Apple dropped the word โComputerโ from its name, simply calling itself Apple Inc.
The shift began with the iPod. When Apple unveiled its music player in the fall of 2001, the market for MP3 players was in its early stages. Devices at the time relied on small amounts of flash memory that could hold only a handful of songs. In short, it was a field that was ripe for innovationโand innovate Apple did with the iPod. The deviceโs 5GB capacity gave it the storage space to, in Appleโs words, โput 1000 songs in your pocket.โ And while not the first hard-drive-based digital music player on the marketโCreativeโs Nomad series beat it to the punchโthe iPod had something going for it that no other company could match: software integration. Though iTunes debuted earlier in 2001, it was with the iPodโs fall introduction that the pieces clicked into place and Appleโs ecosystem started to take shape.
Still, at the time, the iPod met with heavy skepticism. Why was Apple, a computer company, making a portable music player? โWe love music,โ Jobs said during the iPodโs introduction. โAnd itโs always good to do something you love.โ
It proved to be lucrative for Apple, too. The company has sold hundreds of millions of iPods in the last decade, and though sales growth slowed and then declined in recent years, Apple continues to enjoy a 70 percent share of the MP3 player market. Part of the reason for the deviceโs success? Appleโs repeated willingness to reinvent the iPod line. Take 2005โs decision to kill off the popular iPod mini and replace it with the smaller, flash-based iPod nano. That kind of thinking, utterly foreign to most companies, was second nature to Steve Jobs: Why not kill a product at the height of its popularity if youโre going to replace it with something even better?
Steve Jobs seemed to anticipate the demand for the iPod from the get-go: โMusicโs a part of everyoneโs life,โ Jobs said at the 2001 launch event. โMusicโs been around forever. This is not a speculative market. And because itโs a part of everyoneโs life, itโs a very large target market all around the world.โ
As it did with the iPod, Apple didnโt create a new product category with 2007โs iPhone introduction. Smartphones existed before Apple came out with its effort, with existing devices aimed largely at business customers who wanted to check their email when they were out and about. Apple instead set its sights on the broader consumer market. It would appeal to the end user by informing its device with the same sensibilities it had used in the Mac: good design, ease of use, and a harmonious marriage between software and hardware.
โEvery once in a while a revolutionary product comes along that changes everything,โ Jobs said at the 2007 Macworld Expo keynote when he pulled the first iPhone out of his pants pocket. โOne is very fortunate if you get to work on just one of these in your career. Appleโs been very fortunate. Itโs been able to introduce a few of these into the world.โ
That may sound like the kind of โreality distortion fieldโ-style hype that Jobs became famous forโand to some extent, it is. But it also happens to be true. Look no further than how other smartphone makers respondedโwith devices that mirrored the iPhoneโs touch-screen controls, powerful Web browser, and array of third-party mobile apps. Where once every smartphone had to have a physical keyboard, many now rely upon just a touchscreen; thatโs a direct result of the iPhoneโs influence.
Jobs closes out his tenure as Appleโs CEO by leading the company into whatโs being billed as the โpost-PCโ eraโa period in which mobile devices no longer need sync up with computers. It was with that vision in mind that Apple rolled out the iPad, which brings PC-style computing into a handheld device. Launched less than two years ago, the iPad has already carved out a new market for tablet computing, with other companies once again trying to keep pace with Apple. It also joins the original Mac, the iPod, and the iPhone among the revolutionary products Jobs helped develop during his Apple career.
Jobsโs Legacy
It would be a mistake to characterize Jobsโs time at Apple simply by the products the company released. Those products came about because of principles held by Jobs that he made sure were shared by others at Apple, especially as he refashioned the company following his 1997 return to Cupertino.
The products mentioned throughout this story might not have come to pass were it not for Appleโs constant need to innovate. Thatโs an attitude driven by Jobs, during flush times as well as well as when the tech business was less than booming. Itโs worth noting that some of Appleโs biggest product releases during Jobsโs tenureโthe iPod and the iPad, most notablyโwere developed during recessions when consumers theoretically were less inclined to spend money on pricey electronics.
โThe way weโre going to survive is to innovate our way out of this,โ Jobs told Time Magazine in early 2002, a strategy the company returned to when the economy went south again in 2008. In both instances, Apple under Jobs upped its research-and-development spending, helping the company produce a strong product lineup that could weather tough times.
It goes without saying that under Jobs, Apple became synonymous with great design. From the early days of the Macintosh, when Jobs agitated for rectangles with rounded corners, no aspect of the design process escaped the companyโs attention.
But Jobs was about more than design just for the sake of looking goodโthe design decisions Apple makes also take usability into account. That 2002 Time Magazine article recounts the creation of the first flat-panel iMac and how Jobs scrapped an early version of the desktop because its design failed to impress. Timeโs Josh Quittner recounted the subsequent meeting between Jobs and Apple executive Jonathan Ive:
Thatโs an approach to creating products that sticks with other Apple employees, even after they leave the company. โYou almost imagine that Steve is in your office,โ Flipboard founder and ex-Apple engineer Evan Doll told the San Francisco Chronicle. โYou say to yourself, what would he say about this? When youโre kicking around an idea for a product, or for a feature, youโll even say it in discussionโโSteve Jobs would love this!โ or, more often, โSteve Jobs would say this isnโt good enough.โ Heโs like the conscience sitting on your shoulder.โ