The Founding of Apple
In 1975, Steve Jobs was reconnected with Steve Wozniak, who had gotten a job working at HP trying to design a new computer. The two Steves shared the dream of building a computer that was affordable and for personal use. In 1976, Steve convinced Woz to start a business with him by saying, “If we lose our money, we’ll have a company. For once in our lives, we’ll have a company!”
When Woz asked what they should call their company, Steve responded, “Apple”.
When Woz asked what they should call their company, Steve responded, “Apple”.
The first issue Apple's co-founders faced was finding a way to fund their company. Woz sold his beloved scientific calculator and Jobs gave up his only item of value, his VW van.
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The next problem was the Steves' lack of business expertise. They decided to include another member in their project, Ronald Wayne. Wayne would receive 10% of the company earnings, Steve and Woz would then each have 45%. Wayne drafted the first contract, wrote the initial operating manual, and designed the first logo for Apple, which was a picture of Isaac Newton sitting under an apple tree. On April 1, 1976, the three official founders signed the contract. Steve Jobs signed his name in all lowercase letters as "steven p. jobs".
This partnership did not last long, however. Ron left after only twelve days with Apple. He had been doubtful of Apple ever overcoming their financial problems and found Jobs hard to work with. Wayne, signed the necessary papers, received his money for his time, and sold his share of Apple for $800. If he had kept his 10% share, Wayne would (in present time) be a billionaire.
Apple I
After Wayne left, Steve and Woz built a circuit board they hoped to sell to Paul Terrell, a Homebrew Computer Club member who had a store on El Camino Real, a busy road in Mountain View, CA. Steve approached Terrell at the Byte Shop (his store) barefoot with uncombed hair, carrying his circuit board. Terrell agreed to pay $500 each, cash on delivery, if Apple could give him 50 complete, fully functional computers. Woz recalls, "I was shocked, just completely shocked. It was the first and most astounding success for Apple the company."
The initial excitement settled in and soon, Steve and Woz realized their desperate need for funding so they could order the parts needed to build the computers. Steve sought out many banks and businessmen, including the founder of Atari. They all turned him down because of his unkempt appearance and unprofessional behavior, for example, putting his bare feet on the other’s desk. Finally, Cramer Electronics approved an order for the computer parts needed. Apple would have thirty days to pay the bill without interest, which meant, the two young men had to assemble fifty computers from scratch in just thirty days.
The initial excitement settled in and soon, Steve and Woz realized their desperate need for funding so they could order the parts needed to build the computers. Steve sought out many banks and businessmen, including the founder of Atari. They all turned him down because of his unkempt appearance and unprofessional behavior, for example, putting his bare feet on the other’s desk. Finally, Cramer Electronics approved an order for the computer parts needed. Apple would have thirty days to pay the bill without interest, which meant, the two young men had to assemble fifty computers from scratch in just thirty days.
![Picture](/uploads/2/4/2/2/24220797/933311.jpg?441)
Steve and Woz went to work building the first Apple computers in the garage of Steve’s parents. Woz would test out each finished board to see if they worked and fix them if they didn’t. Paul Jobs (Steve’s father) created a device to test the finished computers. When the official Apple I computers were completed, they had no cases. Terrell accepted them anyway and stayed true to his agreement. The retail price for the first Apple computer was set at $666.66.
Apple II
In the summer of 1976, Apple began to work on a new computer, the Apple II. On September 5 that year, the Steves boarded a plane to Atlantic City to attend the annual computer festival. They brought with them the Apple I and the unfinished Apple II. Some Homebrew Computer Club members who sat by them declared the Apple computers unimpressive and inferior to their own.
While examining other exhibits at the convention, Steve realized that a computer would need a built in keyboard and monitor for it to be popular at the time. That night, Woz worked on the Apple II, trying to create a full-color monitor. He managed to connect it to a color TV in the hotel room. The next step was to try connecting the computer to other projectors. At the convention, they asked a projectionist to provide a projector for their booth. After connecting the projector to the Apple II, it displayed color perfectly.
When they arrived home, Steve and Woz worked determinedly to make Apple II the best computer yet. Woz was able to program the computer to play video games when attached to a color TV. Steve hired designer Jerry Manock to make plastic cases for the new computer and electrical engineer Rod Holt to build a quieter cooling fan. This would all cost more money than Steve or Woz had. To get funding, Steve approached the founder of Atari, Nolan Bushnell, again, asking for $50,000 in exchange for a third of Apple Computer. He was rejected again. Bushnell would go on to admit he thought himself so smart to reject Steve and now laughs about it when he's not crying.
Bushnell did recommend that Steve ask Mike Markkula, a multimillionaire retired at the age of thirty-three. Markkula agreed to invest in Apple if he liked the business plan they came up with. He ended up investing $80,000, loaning $170,000, and becoming a partner in the company. Markkula's business advice for the Steves was to show empathy for the customer, focus on the job, and present the products in an attractive way.
Now that Apple had the funding and product, Steve focused on the advertisement. He met with Rob Janoff, an art director at the Regis McKenna advertisement agency. Janoff was to design a brochure to introduce the Apple II and a new logo since the Darwin one was too complex and irrelevant to the company. Janoff's new logo was a simple apple with a single bite taken out of it. The apple was also in rainbow colors (which were in an order that pleased Janoff) to represent the Apple II's color ability.
On January 3, 1977, Apple Computers was formally incorporated. The company now had a dozen employees and a rented space in Cupertino, CA. Mike Scott (Scotty), an acquaintance of Markkula's, was made president. Steve Jobs was not enthusiastic about this and had frequent temper tantrums.
While examining other exhibits at the convention, Steve realized that a computer would need a built in keyboard and monitor for it to be popular at the time. That night, Woz worked on the Apple II, trying to create a full-color monitor. He managed to connect it to a color TV in the hotel room. The next step was to try connecting the computer to other projectors. At the convention, they asked a projectionist to provide a projector for their booth. After connecting the projector to the Apple II, it displayed color perfectly.
When they arrived home, Steve and Woz worked determinedly to make Apple II the best computer yet. Woz was able to program the computer to play video games when attached to a color TV. Steve hired designer Jerry Manock to make plastic cases for the new computer and electrical engineer Rod Holt to build a quieter cooling fan. This would all cost more money than Steve or Woz had. To get funding, Steve approached the founder of Atari, Nolan Bushnell, again, asking for $50,000 in exchange for a third of Apple Computer. He was rejected again. Bushnell would go on to admit he thought himself so smart to reject Steve and now laughs about it when he's not crying.
Bushnell did recommend that Steve ask Mike Markkula, a multimillionaire retired at the age of thirty-three. Markkula agreed to invest in Apple if he liked the business plan they came up with. He ended up investing $80,000, loaning $170,000, and becoming a partner in the company. Markkula's business advice for the Steves was to show empathy for the customer, focus on the job, and present the products in an attractive way.
Now that Apple had the funding and product, Steve focused on the advertisement. He met with Rob Janoff, an art director at the Regis McKenna advertisement agency. Janoff was to design a brochure to introduce the Apple II and a new logo since the Darwin one was too complex and irrelevant to the company. Janoff's new logo was a simple apple with a single bite taken out of it. The apple was also in rainbow colors (which were in an order that pleased Janoff) to represent the Apple II's color ability.
On January 3, 1977, Apple Computers was formally incorporated. The company now had a dozen employees and a rented space in Cupertino, CA. Mike Scott (Scotty), an acquaintance of Markkula's, was made president. Steve Jobs was not enthusiastic about this and had frequent temper tantrums.
![Picture](/uploads/2/4/2/2/24220797/2705774.jpg?402)
Now, Apple had to prepare for the West Coast Computer Faire, at which they would debut the Apple II. When the day arrived, only three computers had been finished. The Apple crew stacked sealed Apple II boxes nearby to give off the impression that there was a large supply of computers. The boxes were, in fact, all empty.
Markkula paid $5000 extra to get one of the best spots at the convention. The Apple exhibit had a large, illuminated Plexiglas sign behind their booth to display the new logo in color. Steve and Woz even dressed up for the event; both had showered, shaved, and combed their hair. They were even wearing three-piece suits. Next to the other exhibits with hand drawn signs and card board displays, Apple stole the show.
Markkula paid $5000 extra to get one of the best spots at the convention. The Apple exhibit had a large, illuminated Plexiglas sign behind their booth to display the new logo in color. Steve and Woz even dressed up for the event; both had showered, shaved, and combed their hair. They were even wearing three-piece suits. Next to the other exhibits with hand drawn signs and card board displays, Apple stole the show.
As Apple was getting ready for April 30, 1977, the day the Apple II would go on sale, they assembled computers, printed manuals, an set terms of service. Many fights broke out between Jobs and Scotty, in which Jobs would scream and eventually burst into tears.
The Apple II sold very well. By the end of may, 300 computers had sold and the sales figures increased every month. Apple fans created groups to discuss their computers and design programs. One program called VisiCalc was released to help businesspeople. It was also specifically designed for Apple computers. After a few months, Apple's figures had gone from 1000 units per month to 10,000 a month.
The Apple II sold very well. By the end of may, 300 computers had sold and the sales figures increased every month. Apple fans created groups to discuss their computers and design programs. One program called VisiCalc was released to help businesspeople. It was also specifically designed for Apple computers. After a few months, Apple's figures had gone from 1000 units per month to 10,000 a month.