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Did you know that Apple went almost bankrupt in the 1990s before the first iPhone was launched? Let’s learn about how the company made a remarkable comeback!
After Steve Jobs was ousted in 1985, Apple saw many CEOs who didn’t have a clear vision for the company. Inconsistent leadership became a major problem for the tech giant.
Apple was launching many products with overlapping features and no clear target audience. This reduced customer loyalty and brand value. It also had many product failures.
Microsoft's Windows operating system became the most widely used OS, offering lower-cost alternatives. Apple’s expensive products led to a fall in its market share.
All of these issues resulted in significant financial losses, nearly $1 billion annually by 1997. Apple’s stock had fallen by as much as 80% since the early 1990s.
In late 1996, Apple acquired NeXT, bringing Steve Jobs back to the company. With strong leadership and a $150 million investment from Microsoft, Apple made a comeback.
Apple simplified its product line, cutting 70% of its existing products and focusing on just one desktop and one laptop for consumers, and the same for professionals.
The successful launch of the colorful iMac in 1998 and the iPod in 2001 marked Apple’s return to profitability. The iPod, combined with iTunes, transformed the music industry.
Apple’s powerful marketing campaign, ‘Think Different,’ and the launch of the first iPhone in 2007 transformed the company, making it one of the most valuable brands worldwide.
Thanks for reading!
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