Apple‘s Struggle to Survive the IBM PC

Asianometry・2 minutes read

Apple's journey in the computer industry from the Apple One to Lisa and Macintosh, facing challenges with competition, pricing, and product development, ultimately leading to internal conflicts and financial struggles that required reorganization to stay afloat.

Insights

  • The Apple II's success was driven by its affordability, design, and the use of the 6502 microprocessor, setting it apart from competitors, showcasing the importance of innovation and cost-effectiveness in product development.
  • Apple's response to IBM's dominance included the Apple 3, which faced design and marketing challenges, leading to the successful Apple 2E release in 1983, highlighting the significance of adapting to market changes through strategic product development and marketing strategies.

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  • What was the impact of IBM's entry into the microcomputer market?

    IBM's entry led to a surge in sales, surpassing forecasts.

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Summary

00:00

Apple's Rise, Fall, and Resurgence in Microcomputers

  • In 1981, Apple Computer led the PC industry with over 300,000 Apple One installations, holding a 20% market share.
  • The introduction of the IBM PC in the same year led to Apple's decline, prompting the need for a follow-up to the Apple One.
  • The microcomputer industry began with the Intel 8080 in 1974, enabling devices like the Altair 8800, which kickstarted the industry.
  • Apple's Apple II, introduced in 1977, was a polished successor to the Apple One, featuring a professional design and expandable slots.
  • The Apple II's success was driven by its affordability, design, and the use of the 6502 microprocessor, setting it apart from competitors.
  • The introduction of the Apple II's floppy disk drive in 1978, developed by Wozniak, revolutionized data storage for microcomputers.
  • VisiCalc, a spreadsheet software exclusive to the Apple II, became a major success, driving Apple's sales and market share growth.
  • IBM's entry into the microcomputer market with the IBM PC in 1981 led to a surge in sales, surpassing initial forecasts significantly.
  • IBM's success with the IBM PC prompted other microcomputer makers to cut prices drastically to compete, leading to industry shifts.
  • Apple's response to IBM's dominance included the Apple 3, which faced design and marketing challenges, leading to the successful Apple 2E release in 1983, sustaining Apple's market presence.

16:13

Apple's Lisa and Macintosh: A Costly Venture

  • Apple lost around 60 million dollars on a failed venture to create a new computer to compete directly with existing models.
  • The Lisa project began in 1978 as a two thousand dollar computer for business users but ended up costing around ten to twelve thousand dollars upon release in January 1983.
  • The Lisa was inspired by the Xerox Alto and featured a unique user interface with menu bars, pull-down menus, overlapping windows, and scroll bars.
  • Despite sharing the same microprocessor as the Sun 1 workstation, the Lisa failed to gain popularity due to limited applications and sluggish performance.
  • The Macintosh project aimed to create an easy-to-use home computer for around five hundred dollars, targeting the general public and home users.
  • The Macintosh featured a groundbreaking graphical interface and was marketed as an electronics appliance with beautiful graphics.
  • Initial Macintosh sales were disappointing due to high pricing, lack of memory, and disk drive, as well as the absence of IBM PC compatibility.
  • Apple invested heavily in marketing the Macintosh, selling over 70,000 units in the first 100 days but facing declining sales after the initial hype.
  • Internal conflicts and financial issues plagued Apple, leading to layoffs, factory shutdowns, and a quarterly loss in the company's history.
  • Scully and Yocum reorganized Apple, merging product divisions, laying off employees, and experiencing a loss due to organizational costs.
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