Apple's climb to the top a 'Cinderella story'
When Apple released its first iPod in 2001 — a white, rectangular device that fit snugly in your hand — the company was taking a big step toward its new reign as the world’s biggest technology business.
That first iPod, which is the forebear of the iPod Classic, became a symbol of everything that set Apple apart: it was easy to use, well-designed, ultra-portable and integrated seamlessly with iTunes, software that would become the hub of Apple’s portable devices.
In hindsight, it’s clear the unveiling of the first iPod on Oct. 23, 2001, was a major turning point for a company that had almost failed in the 1990s — in part because of poor product design, said Debei Andrus, an assistant marketing professor at the University of Calgary’s Haskayne School of Business.
“It was a combination of iPod and iTunes,” she said. “They were really clever in terms of making sure that everything worked really well and tying it to the music.”
In fact, Apple CEO Steve Jobs perhaps grasped back in 2001 that music would be a driving force behind Apple’s stunning comeback. “Music is a part of everybody’s life,” he mused at the introduction of the iPod.
“It’s a very large target market all around the world.”
Apple even rolled out iTunes 2 software specifically for the new device.
Fast-forward nearly a decade to this past week, when Apple overtook Microsoft as the world’s most valuable technology company, in terms of market value, to become the king of tech.
Apple also made headlines this past week with the Canadian release of its newest gadget, the iPad tablet computer — adding another popular piece of tech to its already successful stable of sleek products, including its iPods, iPhones, iMacs and MacBooks.
“Apple has been very clever in terms of its entire product portfolio,” said Andrus. “They have used design to differentiate themselves. iTunes is the connector between all of them.”
As computers have evolved, creating software and applications has become more important, she said. Apple’s longtime rival, Microsoft, gained a major foothold in the market with its software, including the productivity tools packaged in Microsoft Office and its Windows operating system, which is installed on more than 90 per cent of computers today.
Apple decided to try something different by designing its software and applications to be easy to use and fun, said Andrus.
The result of Apple’s unique designs — in both look and functionality — has been the wooing of a remarkably dedicated consumer base, she said.
“That little apple is really a love mark,” she said. “When you talk to anybody who has really committed to Apple products, they love them. you cannot say that about Microsoft.”
It’s been a long, arduous road for Apple, which was founded in 1976 by Jobs, Steve Wozniak and Ronald Wayne.
After experiencing success in the 1980s and early ’90s with its Macintosh computer and portable PowerBook, Apple made a series of mistakes — including failed computer lines, portable CD players and cameras — that sent stock prices plummeting. Apple even relied on a $150-million investment from Microsoft in 1997 to stay in business.
Many business pundits expected Apple to go the way of the dodo.
“They were expecting Apple to die a slow death and it didn’t,” said Andrus.
Leander Kahney has written several books about Apple, including The Cult of Mac and Inside Steve’s Brain — the bestselling biography of the enigmatic Apple CEO.
He said Apple’s milestone this week of becoming the biggest tech business in the world is remarkable.
“It’s probably the biggest turnaround in business,” he said. “What other company has been completely on the ropes and is now reinventing a whole industry? It’s definitely a Cinderella story.”
The two longtime tech rivals swapped spots Wednesday when Apple’s shares rose as much as 2.8 per cent on the Nasdaq and Microsoft’s shares dropped by four per cent. Apple closed at a market value of about $222 billion US, compared to Microsoft’s $219 billion.
Kahney said Apple, which is riding high on a string of “blockbuster quarters” thanks to its booming iPhone business, had been expected to dethrone Microsoft this year.
“What’s surprising is how quick it happened,” he said.
“(Apple is) clearly at the forefront of what’s going to be the next wave of computing, which is mobile.”
Apple’s iPod and iPad sales are solidifying the company’s surge, he added.
Kahney credits Jobs with the company’s rise from the ashes.
“He’s built it up. It’s taken him a good dozen years to get here.”
Apple's climb to the top a 'Cinderella story'
