1.1 Why Is Apple Successful?

In 1976, Steve Jobs and Steve Wozniak created their first computer, the Apple I. They invested a mere $1,300 and set up their business in Jobs’s garage. Four decades later, their business—Apple Inc.—has become one of the world’s most influential and successful companies. Did you ever wonder why Apple flourished while so many other young companies failed? How did it grow from a garage start-up to a company generating $366 billion in annual sales? How was it able to transform itself from a nearly bankrupt firm to a multinational corporation with locations all around the world? You might conclude that it was the company’s products, such as Mac computers and laptops, the iPod, iTunes, the iPad and the iPad mini, Apple TV, Apple Watch, AirPods, Powerbeats Pro, and the wildly popular iPhone. Or you might decide that it was Apple’s dedicated employees and loyal customers. Perhaps it was luck—Apple simply was in the right place at the right time. Or maybe you will attribute the company’s success to management’s willingness to take calculated risks. Perhaps you will attribute Apple’s initial accomplishments and reemergence to its cofounder, the late Steve Jobs. After all, Jobs was instrumental in the original design of the Apple I and, after being ousted from his position with the company, returned to save the firm from destruction and lead it onto its current path.

Before we decide what made Apple what it is today and what will propel it into a successful future, let’s see if you have all the facts about the possible choices: its products, its customers, luck, willingness to take risks, or Steve Jobs. We’re confident that you’re aware of Apple’s products and understand that “Apple customers are a loyal bunch. Though they’re only a small percentage of all computer users, they make up for it with their passion and outspokenness.” We believe you can understand the role that luck or risk-taking could play in Apple’s success. But you might like to learn more about Steve Jobs, the company’s cofounder and former CEO, before arriving at your final decision.

Growing up, Jobs had an interest in computers. He attended lectures at Hewlett-Packard after school and worked for the company during the summer months. He took a job at Atari after graduating from high school and saved his money to make a pilgrimage to India to search for spiritual enlightenment. Following his India trip, he attended Steve Wozniak’s “Homebrew Computer Club” meetings, where the idea for building a personal computer surfaced. “Many colleagues described Jobs as a “brilliant man who could be a great motivator and positively charming. At the same time, his drive for perfection was so strong that employees who did not meet his demands were faced with blistering verbal attacks.” Not everyone at Apple appreciated Jobs’s brilliance and ability to motivate. Nor did they all go along with his willingness to do whatever it took to produce an innovative, attractive, high-quality product. So at age thirty, Jobs found himself ousted from Apple by John Sculley, whom Jobs himself had hired as president of the company several years earlier. It seems that Sculley wanted to cut costs and thought it would be easier to do so without Jobs around. Jobs sold $20 million of his stock and went on a two-month vacation to figure out what he would do for the rest of his life. His solution was to start a new personal computer company called NeXT Computer. In 1993, he was invited back to Apple (a good thing, because neither his new company nor Apple was doing well).

Jobs was definitely not humble, but he was a visionary and had a right to be proud of his accomplishments. Some have commented that “Apple’s most successful days have occurred with Steve Jobs at the helm.” Jobs did what many successful CEOs and managers do: he learned, adjusted, and improvised. Perhaps the most important statement that can be made about him is this: he never gave up on the company that once turned its back on him. Sadly, Steve Jobs died in 2011 at the age of fifty-six. Apple’s corporate home page carried the following obituary: “Apple has lost a visionary and creative genius, and the world has lost an amazing human being. Those of us who have been fortunate enough to know and work with Steve have lost a dear friend and an inspiring mentor. Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple.”

 So now you have the facts. Here’s a multiple-choice question that you’ll likely get right: Apple’s success is due to (a) its products, (b) its customers, (c) luck, (d) willingness to take risks, (e) Steve Jobs, or (f) some combination of these options.