When Scully joined Apple, he was surprised at the disorder, and bickering between Jobs and the Lisa team over a) why Lisa was a failure, and b) why Macintosh had not been launched in 1983. Scully felt that Apple was ‘like a household where everyone were running to the beach when there was an earthquake only to discover a tsunami was approaching that forced them back into the house.’ (Isaacson Biography). Things weren’t great on the numbers side for Scully’s first year as CEO either. He had to announce at the 1984 shareholders meeting that 1983 was a bad year for Apple. It was. The competitors were entering the market with cheaper products that were not as user-friendly as Apple but still semi-useful machines. The Apple balance sheet still showed major growth but IBM had launched the PC, and there were many lower-priced clones on the market in 1981 onward which were harming Apple’s competitive advantage.
But Macintosh was marketed as “the computer for the rest of us” and would refocus Apples efforts away from their core Apple II & LISA product offerings. Apples future was bright because there were 25 million information based users in offices across America, and their work had not changed much since the industrial revolution. The only desktop product people used was the phone until the personal computer. Apple hoped that their market share would expand with the unveiling of Macintosh….1984 would prove pivotal for Apples future (to be continued). Below is the balance sheet for the January 24th, 1984 Apple Shareholders meeting. Apple was a chaotic start-up turned revolutionary full fledged company. It was a messy operation from the standpoint of senior management but generally Apple worked.
The Apple Computer, Inc Balance Sheet In 1983
Current Assets
Fiscal Year 1983
Cash and Investments
$143,000,000
Receivables – Net
$136,000,000
Inventory
$143,000,000
Other
$47,000,000
Total Current Assets
$469,000,000
Net Fixed Assets
$67,000,000
Other Assets
$21,000,000
Total Assets
$557,000,000
Current Liabilities
$129,000,000
Long-Term Liabilities
$50,000,000
Shareholders’ Equity
$378,000,000
Total Liabilities & Equity
$557,000,000
This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.
The 1984 Ridley Scott advertisement entitled “1984” was a way of affirming a desired renegade style, and attached Apple Computers with the rebels, and hackers. Ironically, Apple was a controlled system. Jobs believed in total control. Initially, the 1984 Ad was not popular on the board at Apple. Markkula and Scully thought it was the worst commercial ever, and that they should not put it on during the Superbowl. They were proven wrong by the timelessness of that 1984 Ad. The next advertisement in 1985 was an ad focused on insulting business people by showing them that they were walking off a cliff as if to suggest that they were blindly following the IBM brand. When the commercial was featured at the 1985 Superbowl in January, there was little reaction, and in truth it was a blunder since it insulted the market it was trying to reach. Apple performed poorly in 1985, the ad is not the cause of the outcome but was a symptom of Apple’s situation in 1985; IBM was expanding immensely.
Frame Your Business Around War – Big Blue Versus Apple:
During the 1984 Apple shareholder meeting, Jobs set the stage for the epic conflict between IBM and Apple. The question Jobs asked at the 1984 conference was “Will Big Blue dominate the entire computer market? Will they control the entire information age? Was Geroge Orwell right?” These rhetorical questions helped inspire his company. Afterall, IBM did not have the vision to buy Xerox in the 1950s. Computer dealers fear IBM dominance on pricing. For Jobs, it was about Apple versus evil. Apple is the only hope against Big Blue. With that frame of mind, Apple could do anything. The MacIntosh was finally launched on “time” in January, 1984.
This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.
For Steve Jobs, you were either a genius or a shit-head/bozo. He sought absolute perfection, and he loved to define people according to this rubric. Steve Jobs tended to be high voltage and might actually say that an idea you proposed is ‘piece of shit idea’. But then he would turn around to propose your idea as his own a week later. Sometimes, he would then take your position in an argument, and agree with you just to mess you up. Jobs could not avoid impulsive opinions, his team at Macintosh were used to moderating his opinions, and not reacting to the extremes of either being a ‘piece of shit’ or ‘genius.’ At Macintosh in the 1981 – 1985 period, Atkinson taught his team to interpret “this is shit” to mean “how is this the best way?” when speaking with Jobs. Steve had a charismatic personality, and knew how to crush people psychologically. In addition, he had huge expectations with his Macintosh team, and it created a fear factor. If you demonstrated that you knew what you were talking about, Jobs would respect you. From 1981 onwards, employees were annually awarded for standing up to Steve Jobs. One marketing specialist stood up to Jobs twice because the marketing projections were unrealistic in 1981. She won the award having at one point threatened to stab Jobs in the heart.
This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.
Eras Are Defined By Partnerships & Rivalry – Gates Versus Jobs Round 1:
Two high energy college drops ended up shaping the commercial PC market. Bill Gates created a program for scheduling classes, and a car counting program while in high school. Gates was skilled at being logical, practical, and analytical while Jobs was design friendly, and less disciplined. Gates was methodical in his business style. Bill Gates was humane but could not make eye contact. Gates was fascinated by Jobs’ mesmerizing persona but saw Jobs as rude and cruel. Jobs has always maintained that Gates should have dropped acid to open up his mind to creativity. The only thing Gates was open to was licensing Microsoft to Apple but not on an exclusive basis. Jobs long believed that Gates was not a creative person, and that Gates ripped off other people’s ideas or at least did not have original ideas. Meanwhile, Gates derisively called Macintosh “S.A.N.D.” ie. Steve’s Amazing New Device. Gates mentions that he did no like Jobs’ management style, as Steve had a tendency to call his own co-workers idiots on a regular basis.
The rivalry was also beyond the personal. In 1982, Apple’s sales were $1 billion, while Microsoft made $23 million. Jobs had an attitude with Gates that suggested Gates should be honoured to work Jobs, it was insulting. From Jobs’ perspective, Gates did not understand the elegance of the Macintosh. There were 14 people working on the Macintosh while Microsoft programmers created applications that had 20 people working on programs to Mac. Their rivalry was deep and probably spurred innovation forward for that reason.
This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.
A Messy Company Can Still Work: 
This is an analysis based on Steve Jobs by Walter Isaacson and other sources of research. Enjoy.
