The
departure of Steve Jobs as Apple's CEO is another chapter, perhaps
the most significant one, in the company's tumultuous history. Some
of the major events that characterized the company's trajectory prior
to its resurgence at the turn of the century include the following:
- April 1976: Apple is founded by Jobs, 21, and Steve Wozniak, 26, both college dropouts.
- December 1982: Apple becomes the first personal computer company to reach $1 billion in annual sales.
- January 1984: Apple's Macintosh division, headed by Jobs, launches the Macintosh line of computers that represent a leap in terms of technical capabilities.
- May 1985: Jobs is fired from Apple by the company's CEO. (Jobs goes on to form NeXT, Inc. which develops NeXTSTEP, an object-oriented, multitasking operating system.)
- December 1989: Microsoft decisively overtakes Apple in market capitalization.
- 1996: For fiscal year ending September 1996, Apple posts a revenue of $9.8 billion but suffers a loss of $816 million.
- February 1997: Apple purchases NeXT for $400 million and with it Jobs returns to Apple. (Jobs shutters the clone licensing program and aligns the company closely with Microsoft.)
- August 1997: Microsoft doles out $150 million to to help Apple keep afloat.
- October 1997: Michael Dell suggests at an IT event the only course left for Apple is to shut down.
Apple's
meteoric rise began in October 2001 with the release the first iPod
music player. The company's stock, which was trading at around $10 a
share at the time, witnessed a stunning rise in subsequent years. The
company's market valuation, in turn, swelled, and on May 26, 2010
Apple’s capitalization overtook that of Microsoft.
Despite
concerns that Apple's business model may not be sustainable, Apple's
stock has continued to skyrocket, and on July 26, 2011, it closed
above $400 for the first time, marking a 60% gain in just over a
year. This rise in stock price brought Apple's $374 billion market
capitalization even closer to Exxon's valuation of $418 billion.
Apple's phenomenal growth is a testament to Job's considerable genius. The company has churned out product after product of unsurpassed excellence, and its dominance of the computer, tablet, and smartphone markets is unquestionable. Despite frequent bouts of sickness in recent years, Jobs has demonstrated an uncanny resilience, and his appearance at the company's product launches contributed in no small measure to the market's confidence in the Apple brand.
Apple's phenomenal growth is a testament to Job's considerable genius. The company has churned out product after product of unsurpassed excellence, and its dominance of the computer, tablet, and smartphone markets is unquestionable. Despite frequent bouts of sickness in recent years, Jobs has demonstrated an uncanny resilience, and his appearance at the company's product launches contributed in no small measure to the market's confidence in the Apple brand.
The
impact of Jobs' departure from Apple's helm can be profound. His
decision to step down from the CEO's position means that his health problems have (sadly) compounded, although his decision to stay on as the company's chairman is somewhat reassuring. However, it appears that his
involvement in Apple's day-to-day affairs will diminish, and his ability to
function effectively in steering the company's course will be impaired.
Apple
certainly has a treasure trove of highly capable and skilled
professionals, both in terms of creative abilities and management
savvy. Timothy Cook has been Jobs' highly trusted lieutenant, deftly
managing the company's sprawling operations. However, one thing is
clear: Jobs departure will leave a void which will be hard to fill.
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