In 1997, Apple was 90 days away from bankruptcy. But with one...

1

In 1997, Apple was 90 days away from bankruptcy.

But with one decision, Steve Jobs surprised their rivals Microsoft and IBM and grew Apple's stock by 9,000% over the next 14 years.

Here's the story:🧵

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Apple's decline started in 1985.

After a power struggle with CEO John Sculley, co-founder Steve Jobs was forced out of Apple.

Everyone in Silicon Valley applauded this decision.

Jobs tried to warn them, but no one listened.

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Without its visionary leader, Apple was a lost ship.

Product flops and infighting followed. One of the biggest misfires was the $700 Newton MessagePad.

Launched in 1993, the "personal digital assistant" was supposed to be Apple's next big hit.

Instead, it was a total embarrassment.

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By 1997, Apple was in deep trouble:

• 3,800 layoffs
• Losses of $1.04 billion

Desperate for a lifeline, Apple needed more than a cash infusion—they needed innovation, FAST.

That's when Steve Jobs returned as interim CEO.

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Jobs first order of business? 

Simplify Apple's bloated product lines.

"The product lineup was a shambles," one exec recalled. "We were selling a lot of crap."

Here, Jobs speaks about choosing the right focus:

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Jobs was ruthless:

• Axed the Newton
• Overhauled the board
• Slashed 70% of inventory
• Killed the Macintosh clone program

This decision transformed Apple.

But to solve the cashflow issue, Apple turned to an unlikely savior: arch-rival Microsoft.

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In a stunning $150M deal, Microsoft invested in Apple & pledged key software support.

Microsoft was under antitrust scrutiny, so this investment helped stabilize a key competitor.

Here's why Bill Gates did it:

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With competition like IBM and Microsoft dominating the PC space, Jobs needed something revolutionary:

Meet the iMac.

Priced at $1,299, this was vintage Jobs: bold, iconic, and irresistible.

• Simple UX and UI
• All-in-one design
• Built-in internet
• Eye-catching colors

With a 40% profit margin, the iMac gave Apple breathing room.

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The iMac launch in May 1998 was a cultural event.

Splashed on magazine covers and coveted by consumers, it was a runaway hit.

Apple sold 800,000 iMacs in 1998, making it the fastest-selling PC in history.

After 2 years in the red, Apple swung to a $309M profit in 1998.

But Jobs wasn't done yet:

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Jobs' next masterstroke was the iPod in 2001.

With its click wheel & sleek design, the portable music player was an instant icon.

But Jobs' genius was pairing it with iTunes & the iTunes Store:

You could buy songs for 99 cents and sync them seamlessly to your iPod.

This revolutionized the music industry forever.

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The iPod's impact was seismic:

• 50%+ global market share
• 350M units sold from 2001 to 2012

By making Apple an indispensable part of consumers' lives, the iPod cemented Apple's comeback.

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How can we talk about Steve Jobs without mentioning the iPhone moment?

• Intuitive OS
• Pioneered touchscreen smartphone
• Popularized mobile apps and App Store

The iPhone generated $166.5 billion and drove global smartphone adoption from 122 million units in 2007 to over 1 billion in 2012.

Yasir Khan recaps Steve Jobs' announcement here:

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Since he returned in 1997, Jobs grew Apple into the world's most valuable company.

For Jobs, Apple was like his child.

In his words: "The only way to do great work is to love what you do."

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I study legendary companies as I build my digital business.

But most people don't know I made my first $10,000 on the internet as a ghostwriter.

This ultimately helped me escape the Wall Street rat race.

Become a Premium Ghostwriter in 5 steps here: x.premiumghostwritingblueprint.com/?el=dickie_aut…

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Thanks for reading!

If you enjoyed this, then follow me @dickiebush for more posts on digital writing and digital businesses.

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