From Warehouse to Global Giant: The Story of 'Apple' [Hidden Industry Story]

Competing with Various Products like iPod, MacBook, iPhone, iPad
Founder Steve Jobs, Innovation in Performance, Features, and Design
Apple Surpasses $2 Trillion Market Cap... First US Public Company to Do So

On August 19th (local time), Apple’s market capitalization surpassed $2 trillion (2,356 trillion KRW) for the first time among U.S.-listed companies.
[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suwan] iPhone, MacBook, iPad...

There are products that everyone knows just by name. This brand, which excites the whole world every time it unveils a new product, is loved by both enthusiasts and general consumers alike. It is the brand famous for electronic products such as mobile phones and laptops: Apple. Founded in a small warehouse in 1976, this company has grown into a global enterprise, becoming the first U.S. publicly traded company to surpass a market capitalization of 2 trillion dollars (2,356 trillion won). How did Apple, an icon of innovation in about 40 years, come to be?

◆ 'Apple' started as a computer manufacturing company

Steve Wozniak (left) and Steve Jobs (right), who co-founded Apple together.
[Image source=AP Yonhap News]

The history of Apple began in 1976 in California, USA, when Steve Jobs and Steve Wozniak assembled the Apple I (personal computer) in a small, shabby warehouse. Later, Jobs' friend Ron Wayne joined, and they began full-scale computer production.

In April of the same year, the company was named 'Apple.' There are various theories about the origin of the company name.

One story is that Jobs worked in Oregon, where there were many apple orchards. Another is that the name was derived from 'Apple Records,' the record label that sold albums by the music group 'The Beatles,' which Jobs liked. There is also speculation that the apple fruit symbolizes 'wisdom.'

It is said that even the founders of Apple, including Jobs and Wozniak, gave different explanations about the origin of the company name in interviews. Therefore, the most plausible theory is that the name was chosen due to a combination of several reasons.

◆ From Steve Jobs to John Sculley... Repeated growth and management failures

Steve Jobs, the former CEO of Apple, who has been praised as an "icon of innovation" and the greatest CEO of this era, passed away at the age of 56 on October 5, 2011 (local time). Photo by Yonhap News

The Apple I was first sold at Byte Shop in June 1976, priced at $666.66 per unit. However, initial sales were not smooth. As a result, one of the co-investors, Wayne, was so disappointed that he gave up 10% of Apple's shares and left the company after 11 days, receiving $800.

Afterward, Apple succeeded in securing investment through various efforts. In 1977, Jobs and Wozniak approached Mike Markkula, a marketing expert with experience at semiconductor company Intel, introduced their product, and received an investment of $91,000. Ultimately, with $250,000, they succeeded in developing Apple I and II.

The Apple I and II, born this way, sold 600 units in the first year, and sales rapidly increased year by year. Thanks to the explosive response from consumers, Apple went public in 1980. This made Jobs, Wozniak, and Markkula billionaires.

Later, they developed a computer called 'Lisa,' named after Jobs' daughter, but despite huge development costs, it did not receive a good market response and was discontinued in 1986.

Eventually, due to repeated management failures and poor sales, Jobs resigned from the company. Amid rising conflicts between Apple's internal management and engineers, John Sculley, formerly of Pepsi-Cola, was appointed CEO.

However, under Sculley's leadership, Apple's management situation continued to worsen. As poor performance persisted, John Sculley was dismissed in 1993, and Michael Spindler was appointed CEO.

Spindler made efforts to overcome the crisis, such as releasing Apple's OS, which had not been made public before, but Apple's performance deteriorated further, recording a loss of $69 million in 1996.

Spindler resigned, and as a result, many employees were laid off through restructuring. Even after appointing new CEOs, it was difficult to recover from poor performance.

Also, around this time, rumors began circulating that Apple would be sold. Companies known to have negotiated or been in talks with Apple included Sun Microsystems, AT&T, IBM, Canon, and Philips. However, no company was willing to actively acquire Apple, which was struggling with losses, and all negotiations eventually failed.

◆ Successful resurgence... Growth into a global company

Image of the iPhone 12 Mini model. Photo by Apple Official Website Capture

Facing a crisis, Apple entered a new phase with the return of founder Steve Jobs. After Jobs returned as CEO in 1997, having been involved in new ventures, Apple developed and achieved great success with products such as the MP3 player iPod, MacBook, and iMac series. In particular, they made significant advances in performance, functionality, and design.

In 2007, Apple unveiled the revolutionary iPhone, entering the mobile phone market and becoming a brand that truly represents the global electronics industry.

Even after Steve Jobs passed away in October 2011, Apple continued to release new iPhones, carrying on Jobs' legacy. Currently, Tim Cook leads Apple. Recently, Apple released the iPhone 12 series, its first 5G smartphones, which have even caused shortages.

During his tenure as CEO, Cook has led Apple to successive hits with iPhone successors, selling 1.4 billion iPhones to date. In 2014, Apple launched the Apple Watch, ushering in the era of wearables.

Moreover, Apple's market capitalization surpassed 2 trillion dollars (2,356 trillion won) as of last August. Apple reached the 2 trillion dollar milestone just over two years after surpassing 1 trillion dollars on August 2, 2018.

Regarding Apple's growth, The New York Times (NYT) commented, "It took Apple 42 years to reach a market cap of 1 trillion dollars, but only 2 more years to reach 2 trillion dollars."