Steve Jobs and Apple were 90 days from bankruptcy.
25 years and $2 trillion later, Apple is the most valuable company in the world.
Here's the story of how Steve Jobs saved Apple🧵
25 years and $2 trillion later, Apple is the most valuable company in the world.
Here's the story of how Steve Jobs saved Apple🧵
In 1983, Steve Jobs convinces the CEO of Pepsi to join Apple.
His name is John Sculley.
Jobs' recruiting pitch is only one question:
“Do you want to spend the rest of your life selling sugared water?
or do you want a chance to change the world?”
His name is John Sculley.
Jobs' recruiting pitch is only one question:
“Do you want to spend the rest of your life selling sugared water?
or do you want a chance to change the world?”
Recruiting Sculley turns out to be one of Jobs' worst decisions.
2 years later, Sculley demotes him to Head of Product.
Then on September 16, 1985, Steve Jobs leaves Apple.
He starts a new company called NeXT Computers.
2 years later, Sculley demotes him to Head of Product.
Then on September 16, 1985, Steve Jobs leaves Apple.
He starts a new company called NeXT Computers.
Apple spends the next decade getting crushed by competition.
Pressure from Dell and IBM.
But internally, there is chaos.
Pressure from Dell and IBM.
But internally, there is chaos.
In 1997, CEO Gil Amelio leads Apple to its worst financial quarter ever.
They lost $56 million and Amelio lost $1.6 billion during his time as CEO.
They need a change.
They lost $56 million and Amelio lost $1.6 billion during his time as CEO.
They need a change.
Apple buys Steve Jobs' company NeXT computers for $400 million.
Jobs is renamed Apple CEO on September 16, 1997
Exactly 12 years after he first left.
Jobs is renamed Apple CEO on September 16, 1997
Exactly 12 years after he first left.
Jobs quickly realizes Apple is a mess.
They are 90 days from bankruptcy.
So he makes a crazy deal.
They are 90 days from bankruptcy.
So he makes a crazy deal.
In 1997 at the Macworld Expo, Apple and Microsoft announce a partnership.
Gates and Jobs agree to a 5-year deal involving Mac and Microsoft Office.
Microsoft gives Apple $150 million.
And it saves them from bankruptcy.
Gates and Jobs agree to a 5-year deal involving Mac and Microsoft Office.
Microsoft gives Apple $150 million.
And it saves them from bankruptcy.
Here is a quote from Jobs:
“If we want to move forward and see Apple healthy again, we have to let go of this notion that for Apple to win, Microsoft has to lose.
“If we want to move forward and see Apple healthy again, we have to let go of this notion that for Apple to win, Microsoft has to lose.
Why would Microsoft save their biggest competitor?
Gates feared that Apple failing would make the government view Microsoft as a monopoly.
A monopoly that they need to break up.
Gates feared that Apple failing would make the government view Microsoft as a monopoly.
A monopoly that they need to break up.
The Microsoft deal gives Jobs a chance to make changes.
The first one?
Kill choices.
Now that may seem odd.
The more choices you have, the better?
Right?
Wrong.
The first one?
Kill choices.
Now that may seem odd.
The more choices you have, the better?
Right?
Wrong.
Apple was giving people too many options.
When you have many choices, you pick none of them.
So he cut their computer selection down to 4 variations.
And it worked.
Lesson: Limit choices to make it easier for customers
When you have many choices, you pick none of them.
So he cut their computer selection down to 4 variations.
And it worked.
Lesson: Limit choices to make it easier for customers
Next, Jobs uses the power of No.
“People think focus means saying Yes to the thing you’ve got to focus on. But that’s not true.
It means saying No to the hundred other good ideas that there are.
I’m actually as proud of the things we haven’t done as the things I have done."
“People think focus means saying Yes to the thing you’ve got to focus on. But that’s not true.
It means saying No to the hundred other good ideas that there are.
I’m actually as proud of the things we haven’t done as the things I have done."
"Innovation is saying ‘no’ to 1,000 things.”
- Steve Jobs
Jobs didn't care that Apple wasn't the first to release the smartphone.
He cared that they had the best one.
And that comes from saying No 1,000 times.
- Steve Jobs
Jobs didn't care that Apple wasn't the first to release the smartphone.
He cared that they had the best one.
And that comes from saying No 1,000 times.
So that's how Steve Jobs saved Apple:
• Luck from Microsoft
• Limiting customer choice
• Ruthless focus on what matters
• Luck from Microsoft
• Limiting customer choice
• Ruthless focus on what matters
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