apple 02 - early years

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Apple Inc. CIEE Study Center in Palma de Mallorca Entrepreneurship and Innovation Course Pere Joan Ribas Barceló [email protected]

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In early 80s Apple made incredibly user friendly computers that did in one click what other machines required several lines of typed code. A veritable revolution in the computer industry, extended to consumer electronics when Jobs launched the Ipod, Iphone and Ipad.

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Page 1: Apple 02 - Early Years

Apple Inc.

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CIEE Study Center in Palma de Mallorca Entrepreneurship and Innovation Course

Pere Joan Ribas Barceló [email protected]

Page 2: Apple 02 - Early Years
Page 3: Apple 02 - Early Years

Xerox  Palo  Alto  Research  Center  (PARC)  

Stanford  Research  Ins8tute  

Stanford  University  San  Jose,  California  

Environment  

Page 4: Apple 02 - Early Years

Co-­‐founder:  Steve  Wozniak  

Wozniak  learnt  the  basis  of  Mathema8cs  and  IT  with  his  father  who  was  an  engineer.  At  the  age  of  13  he  had  already  built  his  first  micro-­‐computer.  Steve  Jobs  had  the  idea  of  commercializing  the  first  computer  as  a  pre-­‐assembled  circuit  on  a  mother  board.  However,  it  was  Wozniak  who  built  it.  Wozniak,  leP  HP  in  1976,  to  co-­‐found  with  Jobs  Apple.  Wozniak  built  the  Apple  I,  a  computer  capable  of  showing  graphics  on  the  screen.  Then  he  focused  on  improving  the  Apple  I.  The  improved  computer,  Apple  II,  was  commercialised  in  1977.  

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First  steps:  The  Blue  Box  

Wozniak   learnt   the   basis   of   Mathema8cs   and   informa8cs   with   his   father   (engineer).   At   the   age   of   13   he   had   built   his   first   micro-­‐computer.  Steve  Jobs  had  the  idea  of  commercializing  the  first  computer  as  a  pre-­‐assembled  circuit  on  a  mother  board.  However,  it  was  Wozniak  who  built  it.  Wozniak,  quit  HP  in  1976,  to  co-­‐found  with  Jobs  Apple.  Wozniak  built  the  Apple  I  a  computer  capable  of  showing  graphics  on  the  screen.  Then  he  focus  on  improving  the  Apple  I.  The  improved  computer,  Apple  II,  was  commercialised  in  1977.  

Jobs  and  Wozniak  in  1975  with  a  blue  box  

APer  reading  an  ar8cle  in  a  magazine  about  the  possibility  of  making  phone  calls  for  free,  Jobs  and  Wozniak  inves8gated  how  to  do  it.  They  found  a  AT&T  manual  and  built  a  device  to  replicate  phone  tones.  Exploi8ng  a  design  mistake,  as  human  to  human  and  machine  to  machine  communica8on  where  in  the  same  band,  if  you  were  able  to  reply  the  machine  to  machine  tones,  you  were  able  to  call  for  free  

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First  Prototype  

•  As   a   hobby,   Jobs   and   Wozniak  assembled   a   computer   using   spare  components.  

•  They   presented   it   at   the   Computer  Club  in  Palo  Alto.  

•  Some  friends  also  wanted  a  computer,  but   they   did   not   know   how   to  assemble  the  components.  

•  At   that   8me,   nobody   was   selling  assembled  computers.  

•  Therefore,   Steve   Jobs   and   Steve  Wozniak,   spend   days   and   weeks  helping   their   colleagues.   They   started  offering  a  service.  

•  By  that  8me  it  took  between  40  to  80  hours   to   put   a   computer   up   and  running  from  different  pieces.  

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The  Product:  Apple  I  

•  Business  opportunity:  Pu]ng  a  computer  together  was  8me  consuming.  Therefore,  Jobs   thought   about   assembling   all   the  components   in  a  plas8c   surface,   a   circuit  board,  and  sell  it.  

•  They   went   to   a   computer   shop   in   Palo  Alto   where   they   got   their   first   order:   50  assembled  circuit  boards.  

•  They   bought   enough   components   to  produce   100   mother   boards,   and   they  sold  the  50  to  the  shop  twice  the  price  of  all  the  components.  

•  So   they   kept   50   fully   assembled   devices  for   them.   However,   they   did   not   have  cash,  only  goods.  Therefore,   they   started  contac8ng   computer   shops   all   over   USA  to  sell  the  remaining  50  computers.  

Page 8: Apple 02 - Early Years

Financing  

The  company  was  iniEally  financed  with  $1,300  raised  by  selling  Job's  

Volkswagen  and  Wozniak’s  calculator.  They  needed  addiEonal  capital  to  

expand  the  company  and  started  to  look  for  funding.  

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Venture  Capital  

•  Jobs  wanted  to  improve  the  product.  He  wanted  to  offer  colour  graphics  and  other  improvements.  

•  Jobs  met  a  re8red  Project  Manager  from  Intel  willing  to  invest  (Mike  Markkula).  Jobs  brought  him  on  board.  

Steve-­‐Jobs  and  Mike  Markkula,  1977  

Page 10: Apple 02 - Early Years

InnovaEon:  Apple  II  •  Together  with   the   $250.000   invested   by  

Markkula,  they  improved  the  Apple  I  and  hired   a   designer   to   design   the   plas8c  envelope   to   protect   the   internal   circuits  of  the  Apple  II.  

•  When   they   went   to   the   West   Coast  Computer   Fair,   their   product  was   by   far  the  best  one  in  the  show.  

•  And  this  computer  possibly  had  the  best  Personal   Computers   graphics   on   the  market.  

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Target  user:  Hobbyists  

•  What  made  the  difference  was  that  for  the   first   8me   a   person   could   use   a  computer   without   knowing   anything  about  hardware.  

•  It   was   a   REVOLUTION   FOR   THE   END  USER.    

•  This   device   was   opening   the   market  for   soPware   hobbyists   (people   willing  to  use  the  soPware).  

Page 12: Apple 02 - Early Years

Apple  Goes  Public  

The  company  had  a  tremendous  success.  By  late  1980,  Apple  Computer  had  been  a  private  company  for  three  years.    Apple’s  partners  decided  to  take  their  company  to  Wall  Street  and  put  Apple  on  the  stock  market,  making  it  a  publicly-­‐held  company.  It  went  public  in  1980  and  Jobs  &  Wozniak  became  millionaires.  Steve  was  21  years  old.  

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End  of  the    1st  chapter  

End  of  chapter  one    

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Bibliography  Inside  Apple,  Adam  Lashinsky  (2012)  Steve  Jobs,  Karen  Blumenthal  (2012)  The  Apple  Experience,  Carmine  Gallo  (2012)  Steve  Jobs:  Ten  Lessons  in  Leadership  (2012)  Steve  Jobs,  Walter  Isaacson,  (2011)  Steve  Jobs:  Revolu8onary,  Chris  Anderson  (2011)  The  innova8on  Secrets  of  Steve  Jobs  (2010)  Apple  Confiden8al  2.0,  Owen  Linzmayer  (2004)  Jony  Ive:  The  Genius  Behind  Apple's  Greatest  Products  (2014)        

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Videos  

•  Steve  Jobs:  How  to  live  before  you  die  •  Entrepreneurs  (1986),  TV  Documentary  •  Steve  Jobs  The  Lost  Interview  (2012),  Documentary  •  Steve  Jobs:  One  Last  Thing  (2011),  Documentary  •  Steve  Jobs:  Billion  Dollar  Hippy,  BBC  Documentary  •  Steve  Jobs  and  Bill  Gates  Together  in  2007  at  D5  •  Interview:  Steve  Jobs  in  2010  at  D8  

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Internet companies series!