Decaflon

Welcome to Decaflon! Where the geeks hang out: Signup or Login Here
Decaflon is proudly hosted by (mt) Media Temple.  We recommend them for your web hosting needs.
Clips: Popular Clips Upcoming Clips Notes: All Notes

In 1997 Steve Jobs was named the interim CEO of Apple after haven been "ousted" in 1985 by the same company. It was a year of uncertainty and doom for Apple. You couldn't go a month without reading an article by a major publication proclaiming the death of Apple. Back then you had to wonder why Steve Jobs would take on such a task, but now the answer is clear: because he knew he could make it work.

In June 1997, Wired published 101 Ways to Save Apple. Looking over the list there are some solid suggestions and no one could blame Apple for listening to most, if not all of them. You do have to chuckle at the very first item though:

1. Admit it. You're out of the hardware game. Outsource your hardware production, or scrap it entirely, to compete more directly with Microsoft without the liability of manufacturing boxes.

Some other gems on the list

2. License the Apple name/technology to appliance manufacturers and build GUIs for every possible device - from washing machines to telephones to WebTV. Have them all use the same communications protocol. Result: you monopolize the market for smart devices/homes.

21. Sell yourself to IBM or Motorola, the PowerPC makers. You can become the computer division that Motorola wants or the alternative within IBM. This would give the company volume for its PowerPC devices and leverage for other PowerPC offerings.

27. Relocate the company to Bangalore and make it cheap, cheap, cheap.

42. Organize a telethon. Hire Jerry Lewis to get dewy-eyed over the new line of Mac products.

81. Merge with Sega and become a game company.

101. Don't worry. You'll survive. It's Netscape we should really worry about. (Too true)

In July Dave Winer wrote The Sure Road to Bankruptcy and if you read it back then there is good reason to believe all of his points. My favorite though has to be his thoughts on Steve Jobs.

Jobs was the wrong person to choose to turn around Apple because that isn't what he wants. He wants to turn around Next. And he's willing to lose Apple to do it. Jobs calls the shots at Apple, Amelio has no power. Eventually I expect a bankruptcy and a shoulder shrug from Jobs as he leaves. "I tried," he'll say.

Finally we have BusinessWeek asking Is Apple Mincemeat?

Macworld Boston 1997


The first parts are depressing showcasing the type of media coverage Apple was receiving around the time. Then five minutes in Steve Jobs gets introduced and even watching the video you can feel the electricity that he brings to the crowd. Same Steve walk and basically the same Steve outfit. What is interesting about this talk is that unlike most leaders who would try to hide what is wrong, Steve talks about them head on and offers solutions.

It is funny to watch the crowds reaction to the change in the Board of Directors. Just listen to the reactions that Larry Ellison receives. At the 27 minute mark he talks about the Microsoft partnership and the crowd gives an unsure reaction. Their reaction to Internet Explorer? Boooooooooooooooo.

To put 1997 into perspective it could have easily gone one of two ways. Apple could have folded and become known as a great company that doomed itself or they could have found a way to turn things around and lucky for us it seems they have done so.

Here are some major events that have occurred between 1997-2006:

1998 iMac/233 Released

1999 iBook tops notebooks sales

2000 PowerMac Cube Released and Steve Jobs becomes permanent CEO

2001 The Second Year of the Turnaround

I call 2001 the 2nd year because if 1997 was the first step by hiring Steve Jobs, then 2001 was the 2nd step of the comeback and 1st to actually get into the minds of the public. Sure most people knew about Apple, but the public at large really had nothing to care about with regards to Apple. They had their PCs and life was good. In 2001 Apple released both the iPod and OS X and laid the foundation for dominance in the music business and the return to relevance for the desktop.

To see how some people in the industry reacted to the release of the iPod look no further than Slashdot.

No wireless. Less space than a nomad. Lame.

Another noteworthy event was the first Apple store opening in MacLean, Va. People were unsure of how good of an idea the Apple Store was, but they have been nothing short of a resounding success for the company.

2002 iMac G4 Released (Who didn't want one of these badboys?) and less notable, but even more important they buy music software company Emagic.

2003 iTunes music store opens and the digital music empire is complete.

2004 iMac G5 released

2005 iPod Nano and the video iPod are released along with the announced partnership with Intel

2007 Another deciding year

This year Apple has given us the iPhone, one of the most celebrated pieces of technology in recent memory. However, this could also be the product that causes people to lose their faith in Apple. People have claimed that this product shows the arrogance that Apple has now gained from their newfound dominance in certain markets. People loved the Apple comeback story, but now that they are the top dogs people want to love them for doing the right thing for them, not the greedy thing for stockholders.

October is another big month for Apple with the release of Leopard, which was delayed because Apple had to put more developers on the iPhone to get things perfect. Will they release a SDK for the iPhone with it? Will there be some remarkable unannounced features to go along with it? We can only wait to see.

10 years from now will we look at 2007 as the year Apple made the mistake of partnering with the wrong companies and upsetting part of its loyal fanbase? Or will it be the year they almost fell, but gathered themselves for another strong 10 year run? One thing is for certain, Apple has produced one of the most remarkable comebacks of any company in U.S. history.

Excellent article, entertaining while being very informative. I do hope that Apple doesn't screw this up but honestly no matter how much Apple screws up I can never see myself going back to Windows. I think thats how many people feel.

Now that Apple is becoming less of the underdog and more the industry leader esp. when it comes to user experience and design, it seems the way to maintain fantastic growth for the next 10 years is not piss off your customers by locking them out of their own devices.

Nice rundown, Scrivs. I still remember the raw pain I felt seeing "The Fall of an American Icon" alongside the Apple logo on the cover of Business Week back in the Spindler era.

And I remember that 1997 Macworld well, too, with Bill Gates appearing among the Mac faithful like Darth Vader in the Cloud City. Classic stuff.

As a long time Apple devotee (I had a Mac 128), I think you're right to say they ain't out of the woods yet. As iPod ages, the question becomes what their next big thing will be. Clearly, iPhone is Apple's short-term answer, but what's beyond that? Is there another iPod+iTunes-like game changer in Apple's future?

It's easy to doubt, but I also remember when folks were amazed by the turnaround shepherded in by the iMac era. Apple was finally off death row and had a jump on the competition with the "internet computer for the rest of us." Then the iPod hit and made the iMac stock jump look like an anthill. Let's hope Apple is still on that trajectory.

I remember when Bill Gates helped out Apple in their dark days and my PC friends showed up at school like Gates had just purchased Apple.

I spent that WHOLE week fending off "HAHA WE BOUGHT YOU!" crap from my friends. Silly kids!

This note just made TUAW.

As I sit here happily typing on my Macbook with my iPod laying on the desk, I couldn't be happier. Thanks Bill to keeping Steve around so he could unhatch his master plan of musical world domination.

Excellent note! :)

Great note, Scrivs.

I remember being very impressed by Steve's points after Bill's presentation - that people have to let go of the mentality that for Apple to win, Microsoft has to lose, and that if Apple wants to win, Apple has to do a really good job.

Kudos.

P.S. Here's a question to ponder: what do you guys think will happen to Apple after Steve Jobs leaves? He's pretty much the figurehead savior of Apple - what will happen to trust in Apple when there are no more groundbreaking keynotes to look forward to?

Glad you guys enjoyed it, it definitely took some time to do.

When Jobs leave there will be mass panic for 3 months then things will settle back down again. I can only hope that whoever runs it doesn't lose Jobs pursuit of perfection and making things simple.

I missed this the first time around but thoroughly enjoyed the note. Thanks, Scrivs.

Interesting what Alvin pointed out. I was never a loyal Apple user and only became one within the past year--but my Dad was and is. And that was just by default because he's a professor and has been since before the age of even Windows, and the Macintosh his medical school provided him was what he used for word processing. Meanwhile at home, I used to boot DOS on a floppy on our first home IBM machine.

Since then, he's never changed jobs and his school never changed platforms. Interesting to have a now-70+-year-old Dad rant and rave about why Apple is better your entire life ... and then I finally bought a Macbook, my first Apple, last November.

Steve Jobs is Apple.

Please Login To Leave A Comment

Decaflon Sponsors Get in touch if you want in.

Hot Notes (View all »)

 

Decaflon is part of the Chawlk Network of sites.

9 Great Places To Visit, Hang Out, & Meet New People

What's new and interesting at other Chawlk Network sites: