On August 2, 2018, Apple achieved a significant milestone by being the first publicly traded business in the US to reach a $1 trillion market capitalisation valuation.
The business set yet another record in August 2020 when it became the first American corporation to have a $2 trillion market capitalisation.
Apple has been among the most valuable firms in the world since 2010. On the surface, it seems obvious why Apple is so highly valued: the corporation produces well-liked goods with significant profit margins. But if a curious reader looks a little closer, they’ll discover errors, ousted CEOs, and much more.
So here we delve deeper into Apple’s success story.
From Apple I to Steve Jobs 2.0
Examining Apple’s past is necessary to understand why the company became so successful. This is a brief overview of Apple’s groundbreaking products, starting with the Apple I, which was merely a motherboard without a keyboard or display, and ending with the iWatch.
When Steve Jobs and Steve Wozniak formed Apple, they were first involved in the kit computer market with the Apple I.
These days, this first production run is in high demand as a collectible. But the primary reason it will be remembered is that it enabled the company to secure the funding to develop the Apple II in 1977—the year Apple was formally founded.
Both of these computers were built by Wozniak, with Jobs handling the marketing.
Despite the hardware being mostly unchanged, the Apple II was the company’s principal source of income until the mid-1980s. Apple made an effort to modernise its products, such as the Apple III and the Apple Lisa, but these were not financially successful. By the start of the 1980s, Apple as a company was having problems, even if the Apple II was still selling well.
For Apple, the Macintosh’s 1984 release represented a significant advancement. But in the years that separated the Apple II from the Macintosh, IBM had made up ground. Apple’s board fired Steve Jobs in favour of John Sculley due to disappointing Macintosh profits and internal power disputes (other sources indicate Jobs opted to go).
Either way, after leaving Apple, Jobs worked at NeXT Inc. Under Sculley’s leadership, Apple expanded its product ranges and began to grow.
Sculley led Apple as its CEO until 1993
Apple saw rapid expansion in those years. It produced a plethora of innovative goods, like the Newton, PowerBooks, Macintosh Portables, and laser printers. Because Apple’s goods were still selling for a premium, the company was able to generate strong financial results from its large margins. Nonetheless, a far wider middle class was being served by less expensive Windows PCs around this time, and Windows also profited from strong Intel CPUs. Apple, on the contrary, appeared to be stagnating.
Michael Spindler and Gil Amelio, the two CEOs, were unable to stop the systems running Microsoft operating systems from spreading like wildfire.
The Apple Macintosh was getting old, and Microsoft’s new operating system, Windows, was starting to become the industry standard. Eventually, Amelio resolved a few of these problems by acquiring NeXT Inc.—a company founded by none other than Steve Jobs.
The second-chance CEO
In 1997, when Steve Jobs returned to lead Apple once again, he found that technology had finally caught up to his visionary ideas. With the launch of the iMac in 1998 and its iconic “Think Different” campaign, Jobs revolutionised the computer industry. Unlike traditional PCs, the iMac’s sleek, colourful design captured attention and redefined user expectations.
It was a beautifully crafted machine that instantly appealed to users, showcasing Apple’s commitment to both innovation and aesthetics. This marked a turning point where Apple’s focus on exceptional design and user-friendly interfaces set them apart in the market.
The ‘iEcosystem’
Apple’s success extended beyond the iMac to a series of groundbreaking products like the iPod, iPhone, MacBook Air, and iPad, each renowned for their quality and design excellence. Under Steve Jobs’ leadership, Apple prioritised user experience and design, making devices like the iPod and iPad intuitive and appealing. This approach created a devoted following eagerly anticipating each product release.
Beyond hardware, Apple transformed its business model by integrating hardware, software, and content into a seamless ecosystem. iTunes revolutionised music consumption by selling individual songs instead of full albums, while the App Store simplified access to software. This ecosystem strategy not only generated revenue but also fostered customer loyalty. Once users embraced Apple’s design and simplicity, the integration with content kept them invested in the ecosystem, ensuring long-term customer retention and continued success for Apple.
The era after Jobs
After Steve Jobs’ passing in 2011, Tim Cook took over as CEO, leading Apple through a successful post-Jobs era marked by continued market dominance. While Apple introduced products like the Apple Watch and expanded into services like Apple TV+, critics argue that the company’s innovation has become more iterative without Jobs’ visionary influence. Apple’s heavy reliance on the iPhone for financial success has raised concerns about its ability to maintain its innovative edge against competitors like Samsung and Google.
Apple in the 20s
In 2020, Apple achieved new milestones with record-high market capitalisation driven by successes in wearable technology like the Apple Watch and increased revenue from services such as Apple Pay amid the global crisis. Additionally, Apple announced significant changes for the Mac, transitioning away from Intel processors to custom-designed chips based on iPhone and iPad technology.
This shift promises enhanced energy efficiency, longer battery life, and expanded app compatibility, positioning Apple’s Mac lineup for greater competitiveness against PCs.
(Tashia Bernardus)