Jen Clinehens on LinkedIn: 🧠 In 1997, Steve Jobs and Apple were 90 days from bankruptcy. Here’s how… (2024)

Do you know Microsoft saved Apple from the brink of bankruptcy❓Let's analyse this case:-✅ BackgroundThis story dates back 26 years. The year was 1997. Apple back then was "Apple Computers"💻Yes, this was the pre IPod, IPhone & IPad apple. They were primarily a computer company 🖥️But their computers were too expensive to be popular. Their margins were good 📈 but their market share was abysmal (Less than 10%) 📉On top of that, the Mac Operating System was exclusive to Apple (It still is), and they refused to license their Operating System 😤Now, back in the 1990's, computers were mainly used for commercial purposes. So, the main value of a computer lied in its Operating System. Naturally, all companies turned to the only other player in town. Microsoft 😎Now, Apple was in a state of panic 😨⭕ Market share was less than 10%. ⭕ Sales Revenue was plummeting. From $11.1 Bn in 1995 to $9.5 Bn in 1996 to $7 Bn in 1997. ⭕ Apple had lost over $1 Bn dollars in the past year and was worth less than $3 Bn.⭕ In July, 1997, they were 90 days away from Bankruptcy.This led to them bringing back Steve Jobs into the company ✔️You see, Steve Jobs was ousted by the board back in 1985. And after a chain of unsuccessful CEOs, it was time for him to come back. Apple acquired NeXt and in came their founder back into the company ❤️✅ The PartnershipOn 6th Aug, 1997. Steve Jobs announced Apple's Partnership with Microsoft in front of its entire staff. There was a lot of booing to say the least 😬Microsoft we're investing $150 Mn into Apple by buying their shares at Market Price. They were preferential non-voting shares. (This meant that Microsoft had no plans to acquire Apple) 💯They also made Internet Explorer the default browser on the Machintosh ✔️On top of that, Microsoft made a commitment to release Microsoft Office on the Machintosh for the next 5 years. Effectively solving the market problem that Apple was facing 📈✅ The ReasonYou see back in 1997, Bill Gates had a bad reputation in the market. He was not into philanthropy yet and he was seen as a cutthroat businessman 😱Microsoft being immensely successful with a staggering 90% market share only accelerated the same, with them attracting the attention of the anti-trust regulators. In fact the department of Justice had been preparing a Monopoly Case against them since 1993 🤯They even called in Bill Gates for a 3-day gruelling deposition in 1998🚨But they had already saved the day 😏How❓By propping up their own competition i.e. Apple😎This is the reason why Microsoft wanted to save Apple. Increasing their own competition only to save Microsoft from being broken up 💯Let me know if you liked this Case in the comments below👇P.S. Did you notice how the phrase "Keep your friends close, but your enemies closer" comes into play❓#marketing #casestudy #management #apple #microsoft #strategy

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Did you know Apple almost went bankrupt in the 90’s? Small business owners and professionals certainly can learn from big business stories. Let’s take a quick look at Apple’s story. 🚨SPOILER ALERT🚨 - Lessons we can take from Apple’s comeback:1. Focus on Core Strengths2. Innovate and Adapt3. Form Strategic Partnerships4. Invest in Positive Customer Experience5. Leadership and Vision is InvaluableApple's near-bankruptcy in 1997 and its subsequent recovery is one of the most notable turnarounds in corporate history, largely attributed to strategic management decisions, product innovation, and a focus on design and user experience.By the mid-1990s, Apple was struggling with declining sales, high operating costs, and a loss of market share to PCs running Microsoft Windows. The company also faced issues due to a complex product line that confused consumers. In 1996, Apple reported a net loss of $816 million, and by 1997, its reserves had decreased to a dangerously low level, bringing the company close to bankruptcy.Apple's turnaround began with the return of Steve Jobs in 1997 after he was ousted from the company in 1985. Upon his return, Jobs streamlined the product line, cutting down on the number of products from dozens to just a few, focusing on quality over quantity.Jobs negotiated a pivotal $150 million investment from Microsoft, securing Apple's short-term financial health. This deal not only provided Apple with much-needed cash but also eased concerns about Apple's viability, as it included a commitment from Microsoft to continue developing Office for Mac.The launch of the iMac in 1998 marked the beginning of Apple's return to profitability. The iMac, known for its unique design and ease of use, was a success and restored Apple's reputation for innovation. Following the iMac, Apple continued to innovate with the introduction of the iPod in 2001, the iPhone in 2007, and the iPad in 2010, each opening new markets and revenue streams.Under Jobs, Apple ventured into retail, opening its first Apple Store in 2001. The stores offered a controlled environment to showcase Apple products and provided a direct revenue channel. The success of Apple Stores contributed significantly to Apple's revenue and brand strength.The launch of iTunes in 2001 and the iTunes Store in 2003 created a new digital ecosystem, making it easier for users to buy and manage digital music. This ecosystem approach was expanded with the App Store in 2008, further locking customers into Apple's products.Apple’s strategic decisions transformed itself from a company on the brink of bankruptcy to one of the most valuable and profitable companies in the world. Apple's focus on innovation, brand, and customer experience, combined with strategic management decisions by Steve Jobs and his team, laid the foundation for growth and success.

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This man saved Apple from bankruptcy in the 1990s. Here are a few good things you can learn from him:His name is Fred Anderson.He was the CFO of Apple from 1996 to 2004.For context, the beginning of that period was one of the most challenging times for the company.Apple was losing money, customers, and market share. Their products started to become less cool, to the point customers were not attracted to the brand.And their leadership team up to that point kept changing over and over. Steve Jobs was no longer in the company. He was fired in 1985.So, what did this CFO do to save the company? And what can you learn from him?1/ Make compromises (even with your competition)The most notorious move was to secure an investment of $150 million dollars from ... MICROSOFT. Whaaaaat?Yes. Microsoft invested in Apple as a vote of confidence in its future. They agreed to license each others' patents, develop Microsoft office for Macs, and have Internet Explorer as the default browser.What Apple got right on this deal was to have the preferred shares issued as non-voting. This means Microsoft could not exert any type of control here. A move that OpenAI could learn from? Anyway ...2/ Be laser-focused on selling great productsDuring his tenure, there was a massive rationalization of Apple's product lines. To be fair, at this point, Steve Jobs was back.This is the time when the slogan "Think Different" came about.The two of them were ruthless on making sure only great products were sold to consumers. Some of them you know very well.iPod.iMac.Say no more.3/ Focus on cost efficiencyAs part of that product line rationalization, Fred Anderson dropped the hammer hard on cutting unnecessary costs across the company.He knew that he needed to free up capital from every place possible to invest in making better products, marketing them to consumers, and selling them at scale.We tend to only glorify Steve Jobs when it comes to turning around Apple. However, this is a good example where the finance people can kill it too.__________________If you liked this, leave a comment, reshare it with your network, and give me a follow Antonio Reza for more.

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Steve Jobs saved Apple from bankruptcy 26 years ago.He cut 70% of Apple's products. In one year, Apple went from losing $1B to a profit of $300M.Adding is an easier, "safer" choice than removing. It takes courage to remove something.Everyone talks about the power of focus, but most brands take too long to decide to STOP doing something.Most agree to start something after a quick call or after watching a video. Stopping or removing something takes multiple discussions and lots of deliberation.Next time you add something, find something to remove too.For DTC brands,Removing the bottom 20% of products can improve conversion rates and retention rates.Removing features that no one is using (like referral programs) can improve your customer experience and increase the usage of important features.Removing email communications that are not relevant can lead to higher deliverability and improved open rates.Removing creatives that have stopped working a long time ago and replacing them with new ones to lower your CPM rates.Reducing the count of promotions or offers running at a given point. Testing and consolidating your best-performing offers instead of multiple offers.The older the business, the bigger the issue.Real power is doing the core things right. Add, test, and keep (if working); otherwise, remove.Don't fall victim to the sunk cost fallacy.Adding is not wrong, but not subtracting fast enough is the issue. #dtc #ecommerceI am Rahi JainI use my PCC (Product, Customer, Communication) value maximization framework to increase the customer life value of e-commerce brands by 10-30% in 30 days.

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This is Mike Markkula: Apple's first investor who would have been worth $986 billion today if he still had his apple shares.Markkula had a widely successful career as a marketing manager at Fairchild Semiconductor and Intel Corporation, where he successfully made millions of dollars from the stock options, achieving the needed financial independence by the age of 33.Markkulla decided to bounce back from his retirement once after he met 2 young men dreaming to change the way people used personal computers. Those two men were none other than Steve Jobs and Steve Wozniak from Apple With Job's plan to break through the market, Markkula decided to become a part of this revolutionising journey by investing $250,000 and becoming the 3rd Co-Founder of the company in 1977.he didn't just acted as an invested but worked intensively with the other co-founders to build the base for the company. Markkula started writing company's original business and marketing plan that helped apple become a part of the Fortune 500 company within the span of just 5 years.With his technical expertise he wrote multiple programs for Apple 2 and beta tested the hardware and the software.Markkula was the one who gave the go-ahead for the development of the Macintosh Computer.He became the much needed adult supervision for Steve Jobs and Steve Wozniak in the crucial period of the company.He became the CEO of the comapany from 1981 to 1983 and later chairman of the board of directors from 1985 to 1997, Markkula proved to be the steady hand steering Apple through turbulent waters.Markkula’s unwavering support for Macintosh and his alignment with John Sculley, Apple's CEO from 1983 to 1993, during a critical dispute with Jobs ultimately led to Jobs’ departure from the company.So what went wrong exactly???He decided to sell off his 500,000 shares, amounting to 14% of his stake in the company. Amid the major conflict between the Apple's management and Steve Jobs.Despite retiring from Apple in 1997, shortly after Jobs’ triumphant return as interim CEO, Markkula’s impact continued to resonate. He supported Jobs’ comeback and, more importantly, left behind a legacy of keen decision-making. Markkula’s intuition, especially when it came to the personal computer market, proved spot-on.He could have been possibly the greatest VC of all time only if he would have decided to hold back his shares and continue with the company.#apple #stevejobs #marketing #businessstories #billionairemindset

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UNITY DAY HOLIDAY SPECIALSTEVE JOBS- APPLE VS BILL GATES- MICROSOFTBILL GATES ONCE OWNED 220 BILLION DOLLARS WORTH OF APPLE SHARES. = to K5.3 TRILLION-Steve Jobs and Bill Gates for decades disliked each other. -Apple staff and Microsoft staff hated each other. -In the early 1980s, Microsoft and Apple worked together on projects, until Microsoft they fell apart.-In 1985, Steve Jobs was fired from Apple and went to form Next computers and Pixar.-By 1997, Apple was on the verge of bankruptcy.-Apple by then was a computer company, smartphones were not invented by then. Apple computers expensive.-By 1997, Microsoft controlled over 90% of the computer operating system market. -By 1997, Apple only had cash in the bank to last 90 days. -By 1997, Steve Jobs returned to APPLE. APPLE had no money that it bought NEXT using shares. -From 1993 to 1997, Microsoft was under investigation for monopoly and anti trust laws. -So the Department of Justice had taken Microsoft to court. -By 1997, APPLE existing shareholders were pulling out and potential investors could not invest or buy shares in APPLE. -APPLE needed an investor whom the market respected to invest and save it from bankruptcy and collapse. APPLE NEEDED CASH AND MICROSOFT NEEDED COMPETITION- This was the chance for Bill Gates to crush Steve Jobs and APPLE. - It was at this point that Microsoft and Bill Gates chose unity and togetherness. HOW? - Microsoft invested 150 million dollars in APPLE stock. The shares were non voting shares. Microsoft couldn't sell the shares for three years.-APPLE Macintosh was going to use the Microsoft Internet explorer as the default browser. which APPLE had thought was useless.Microsoft Office products were going to run on the Macintosh for 5 years. THE AFTERMATH-By saving APPLE, Microsoft proved in court that it was not a monopoly. If APPLE had collapsed, Microsoft was going to be ruled in court as a monopoly. It was going to be broken up as a company. -Bill gates won the court case.- Microsoft was not broken up and Apple went on to become the World's most valuable company at some point.WHAT HAPPENED TO THE STOCK MICROSOFT BOUGHT. - The 150 million dollars was equal to 18.2 million shares. These were NON VOTING SHARES. - Bill gates turned the preferential shares into regular stock and sold them in 2003. -Apple stock price in 2003, was very very low. It was about 0.32 cents dollars.WHAT IF BILL GATES DIDNT SELL THE SHARES-APPLE made a stock split in 2005 at a ratio of 2:1. -APPLE made another stock split in 2014 at a ratio of 7:1. -APPLE made another stock split in 2020 at a ratio of 4:1-Meaning, if Bill gates had held on to the 18.2 million shares he sold in 2003, and after the stock splits those same shares would be.........-Bill Gates would have 1,019,200,000 shares, the current APPLE stock price is 216 per dollar. Meaning he would have being 220 billion dollars richer just be owning APPLE STOCK. HAPPY UNITY DAY ZAMBIA.

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Steve Jobs took Apple from bankruptcy to the tech giant it is today. Here's how:In the mid-1990s, Apple was on the brink of collapse. The company had a fragmented product line, declining market share, and was struggling to compete with Microsoft. But the return of Steve Jobs in 1997 marked a turning point that would not only save Apple but transform it into one of the most valuable brands in the world.After the release of Microsoft’s Windows 95, Apple fell into a death spiral. By September 1997, the company was just two months away from bankruptcy.Fired in 1985, Jobs agreed to return in 1997 as interim CEO. His vision and bold decisions would be crucial in saving Apple.Jobs cut out all printers and peripherals, streamlined from 15 desktops to one, and reduced the portable line to one laptop. This focus allowed Apple to concentrate on quality and innovation.He cut retailers and sold products exclusively online, moved all manufacturing to Taiwan, and cut inventory by 80%. These changes made operations more efficient and cost-effective.Jobs convinced Bill Gates to invest $150 million in Apple. This investment not only provided much-needed funds but also resolved legal disputes and helped prevent antitrust issues for Microsoft.As part of the agreement, Microsoft committed to developing Office for Mac for at least five years and made Internet Explorer the default browser on Macs. This partnership was crucial for user confidence.By focusing on profitability and cutting unnecessary projects, Jobs turned Apple’s finances around. The company posted its first profitable quarter in years in late 1998.Jobs knew the personal computer market was saturated. When asked about his strategy in 1998, he said: "𝗜 𝗮𝗺 𝗴𝗼𝗶𝗻𝗴 𝘁𝗼 𝘄𝗮𝗶𝘁 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗻𝗲𝘅𝘁 𝗯𝗶𝗴 𝘁𝗵𝗶𝗻𝗴."And the big things came:• iTunes in January 2001• iPod in October 2001• iPhone in 2007Under Jobs' leadership, Apple transformed from a struggling company into a tech giant. His impact continues to be felt in every product Apple releases today.Lessons Learned:• 𝗩𝗶𝘀𝗶𝗼𝗻: Have a clear and compelling vision for the future.• 𝗙𝗼𝗰𝘂𝘀: Concentrate on a few key products and excel at them.• 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻: Prioritize design and user experience.• 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽𝘀: Leverage partnerships to bolster your strengths.• 𝗔𝗱𝗮𝗽𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆: Be ready to pivot and embrace new opportunities.If you found this story insightful, share it with your network and follow me for more advice on leadership, business, and career growth.

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When Steve Jobs returned in 1997, Apple was 90 days from bankruptcy. No one believed in them.But 14 years later, #Apple became the world's most valuable company. It's the comeback story of the century and every entrepreneur should know how he did it:🗓 1997:Apple greeted Jobs in 1997 barely alive, bleeding cash to Microsoft. Jobs was back as CEO, Apple worth just $3B (to Microsoft’s $148B).Michael Dell famously said he'd "shut it down." - Jobs had other plans. He negotiated a $150M investment from Microsoft. "We need all the help we can get," he told the 1997 Macworld audience.With cash flow concerns addressed, Jobs simplified Apple's product line to 4 core products: Desktop and portable computers for consumers and professionals.🗓 1998The iMac was unveiled, a sleek, colorful computer. It sold 800,000 units in 5 months. Jobs launched the "Think Different" campaign in 1997, rejuvenating Apple’s brand.🗓2001 - 2003The iPod was released, which promised "1,000 songs in your pocket." They then created one of the most revolutionary cocepts.. The iTunes Store which created a seamless digital music ecosystem..🗓2007Jobs unveiled the iPhone, merging iPod, phone, and internet. It sold 1 million in 74 days.🗓2010Jobs introduced the iPad, creating a new category of devices. It became the fastest-adopted new product in tech history. Apple Stores, with hands-on device exploration, drove sales and loyalty, making them the highest-grossing US retailers per square foot by 2009.Ending OS licensing to 3rd parties, Jobs believed in controlling hardware and software for the best experience.🗓2011Under Jobs, Apple’s value skyrocketed from $3B in 1997 to over $350B by 2011. Jobs passed away in 2011, handing the reins to Tim Cook. 🗓2018+Apple became the first U.S. company to reach a $1 trillion market cap. By 2024, it had tripled to around $3 trillion. Jobs revolutionized personal computing, digital music, retail, tablets, and mobile phones. His vision shaped the 21st century.

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Let's delve into the fascinating story of Ronald Wayne, the often overlooked third co-founder of Apple.Back in 1976, Steve Jobs, Steve Wozniak, and Ronald Wayne came together to establish the Apple Computer Company. At that time, Jobs and Wozniak were 21 and 25 years old, respectively, while Wayne played a crucial role by providing "adult supervision" and overseeing mechanical engineering and documentation. In return, he received a 10 percent stake in the fledgling business.However, Wayne's tenure with Apple was remarkably short-lived. Just 12 days after joining, he decided to part ways with the company. His primary concern was the potential financial risks associated with Apple's debts. While Jobs and Wozniak were young and financially strapped, Wayne had assets, including a house. He feared that if the business encountered financial difficulties, he would be personally liable for the debts. Consequently, Wayne withdrew from the partnership, selling his 10 percent stake back to his co-founders for a mere $800.In hindsight, Wayne's decision had monumental consequences. Today, a 10 percent stake in Apple would be worth over $95 billion, making him one of the wealthiest individuals globally. Despite missing out on this immense fortune, Wayne maintains that he doesn't regret his choice. He believes he wouldn't have thrived within Apple, envisioning himself stuck in the documentation department for the next two decades.It's a remarkable tale of missed opportunity and the unpredictable twists of history. Wayne's name may not be as synonymous with Apple's success as Jobs and Wozniak, but his brief involvement left an indelible mark on the company's early days.#apple #founder #billion

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Steve, I'll never forget when I met you at DI-NO computers on Colorado Blvd, in Pasadena California, when I was just a kid, and at that time, I just thought you were a guy with the funny haircut. The world misses you, man. If you could only see where we are today and how close we are to a new revolution, you’d be proud, yet unsurprised. Your vision set the stage for a world where technology isn't just a tool, but a partner in every aspect of our lives. You taught us that innovation isn’t just about creating something new, but about thinking differently, challenging the status quo, and making the complex simple.In the 80s and 90s, you were the maestro, orchestrating a symphony of ideas that transformed pixels and bytes into windows of endless possibilities. Apple, under your guidance, wasn’t just a company; it was a beacon of inspiration, a testament to what human creativity can achieve. You didn't just invent products; you crafted experiences, each one a thread in the fabric of our daily lives.Today, as we stand on the brink of new technological frontiers, from AI to quantum computing, we can’t help but wonder what you would have thought of all this. Would you have seen these advances as just the next logical steps, or would you have pushed us to leap even further, to dream even bigger?Steve, you once said that the people who are crazy enough to think they can change the world are the ones who do. You were one of those people, and because of you, so many of us now believe that we can be too. Your drive, and your dreams live on in every entrepreneur, every designer, and every innovator who dares to think different.#SteveJobs #InnovationLeader #TechnologyVisionary #AppleLegacy #ThinkDifferent #TechRevolution #EntrepreneurSpirit #DigitalInnovation #CreativeGenius #JobsInspiration #FutureTech #SiliconValleyLegend #InspiringEntrepreneur #WorldChanger #LegacyOfInnovation

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