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Apple business strategies

Read Cult of Mac’s latest posts on Apple business strategies:

Today in Apple history: Cupertino salivates over the restaurant biz

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An artist conception of the exterior of an Apple Cafe, a restaurant chain that never happened.
Apple Cafes were set to sweep the world. They didn't.
Image: Apple/Mega Bytes International

November 12: Today in Apple history: Apple wants to get into the restaurant business with Apple Cafes November 12, 1996: Apple lays out a wild plan to get into the restaurant business, saying it will open a chain of Apple Cafes with a touchscreen point-of-sale system. A bit like the company’s future retail stores — but without the computers and iPhones for sale — the Apple restaurants would open in cities around the world.

The first, Apple says, will be a 15,000-square-foot restaurant in Los Angeles, opening in late 1997.

Spoiler alert: None of this happens.

The Mac is Apple’s weak spot — but that’s about to change

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Apple needs a budget MacBook
Young students would be a major market for a budget MacBook.
AI image: Google Gemini

The Mac isn’t carrying its weight. In fact, it’s Apple’s lowest-selling product line, sitting behind even the Apple Watch. And despite macOS being a standout platform, it lags far behind Windows where it matters: worldwide adoption.

Apple needs a fresh angle, and the rumored budget MacBook might be the first real chance to rewrite the Mac’s trajectory.

Today in Apple history: iTunes sales hit astonishing new heights

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iPod silhouette ad, part of the marketing campaign that boosted iTunes Music Store sales
iTunes coming to Windows proved a smart move for Apple.
Photo: Apple

November 6: Today in Apple history: After porting iTunes to Windows, iTunes sales hit 1.5 million downloads in one week November 6, 2003: After porting iTunes to Windows, Apple sets a new record for digital music sales: a massive 1.5 million downloads in one week.

Bringing the iTunes Music Store to PC users opens up a new, lucrative market for Apple. The record-breaking sales clock in at five times more than the 300,000 downloads that peer-to-peer file-sharing service Napster achieved in its debut week (remember it?). And 1.5 million is more than double the 600,000 iTunes downloads per week Apple reported selling to Mac users prior to the Windows release.

Today in Apple history: Apple sets up shop inside CompUSA stores

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Desiring more control over how Macs got sold, Apple turned to CompUSA.
Desiring more control over how Macs got sold, Apple turned to CompUSA.
Photo: Coolcaesar/Wikipedia CC

November 4: Today in Apple history: Apple CompUSA November 4, 1997: Apple unveils its plan to open small “store within a store” areas inside CompUSA outlets around the United States. Apple-trained employees will staff these mini-stores and sing the praises of the Mac and other Apple products.

The move gives Cupertino more control over the way its products are displayed and demoed to consumers. While ultimately disappointing, Apple’s CompUSA experiment paves the way for the flagship Apple Stores that will launch four years later and become the world’s most profitable retail outlets.

Today in Apple history: iPad mini arrives

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The iPad mini made a big splash for such a tiny device.
The iPad mini made a big splash for such a tiny device.
Photo: Apple

November 2: Today in Apple history: iPad mini launch brings smaller size and price tag November 2, 2012: The first iPad mini goes on sale, shrinking both the size and the price tag of Apple’s groundbreaking tablet computer.

With a reduced screen size of 7.9 inches – instead of the then-standard 9.7 inches – the original iPad mini is the fifth iPad to be released by Apple. Critics hail Apple’s most affordable iPad ever, although some people complain about the tablet’s lack of a Retina display.

Today in Apple history: iPhone goes on sale in China for first time

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iPhone 3GS
The iPhone 3GS arrives in China, without Wi-Fi.
Photo: Apple

October 30: Today in Apple history: iPhone goes on sale in China for first time October 30, 2009: Two years after launching in the United States, the iPhone finally goes on sale in China, giving Apple a chance to reach the world’s largest market.

Regulatory hurdles previously blocked Apple’s access to China, including restrictions on Wi-Fi functionality. With those problems solved, Apple offers the iPhone 3GS to the country’s 1.3 billion people, most of whom do not yet own smartphones.

Today in Apple history: Dell PCs overtake Macs in education market

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eMac
At the turn of the century, some observers accused Steve Jobs of failing one of Apple's most popular markets.
Photo: Ste Smith/Cult of Mac

October 27: Today in Apple history: Dell PCs overtake Macs in education market October 27, 1999: Dell Computer overtakes Apple in the educational market, stealing Cupertino’s crown as the top company selling computers to U.S. schools. Dell’s cheap Windows PCs make sense for schools looking to buy computers without breaking the bank.

Apple CEO Steve Jobs, still in the process of rebuilding Apple after its near-collapse in the 1990s, faces heavy criticism for ignoring one of the company’s strongest markets.

Today in Apple history: CEO Michael Spindler denies Apple is a ‘lame duck’

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Apple CEO Michael Spindler headed the company during trying times in the 1990s.
Apple faced big challenges during the Michael Spindler era.
Photo: Ste Smith/Cult of Mac

October 3: Today in Apple history: CEO Michael Spindler denies Apple is a 'lame-duck company' October 3, 1994: Apple CEO Michael Spindler reassures the world that Apple “is not a lame-duck company.”

Why would anyone suspect that it is? The answer lies in collapsing Mac sales, massive layoffs and Apple’s $188 million quarterly loss. At 15 months into his stint as CEO, Spindler wants to reassure everyone that the worst is over.

Sadly, things will decline further before they start to turn around.

Today in Apple history: IBM and Apple shake and make up

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Photo of Apple co-founder Steve Jobs flipping off the IBM logo.
At one time, an Apple and IBM deal sounded impossible.
Photo: Andy Hertzfield

October 2: Today in Apple history: IBM and Apple shake and make up October 2, 1991: As the Cold War comes to an end, hell freezes over a second time as Apple and IBM sign a deal and agree to put aside their differences. Having been bitter rivals for the past decade, the two tech giants host a press conference at the Fairmont hotel in San Francisco to unveil their new partnership.

“We want to be a major player in the computer industry,” Apple CEO John Sculley says. “The only way to do that is to work with another major player.”

Today in Apple history: Macs get that iSyncing feeling

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Today in Apple history: Macs get that syncing feeling as Apple launches iSync. It was a killer app for its time.
iSync let Macs sync with a variety of other devices.
Photo: Juska Wendland/Flickr CC

September 30: Today in Apple history: Apple introduces iSync, letting Macs sync to cellphones and iPods September 30, 2002: Apple introduces iSync, a tool that lets Mac users synchronize their address books and calendars with their cellphones, iPods and Palm OS-compatible handheld organizers via Bluetooth.

“iSync is the beginning of something really big,” Apple CEO Steve Jobs says in a press release announcing the iSync public beta. “With the push of a button, iSync synchronizes the address book and calendar on your Mac with those on your mobile phone.”

It represents a big leap forward in the ability of computers and mobile devices to talk with one another. And it hints at some of Apple’s later advances.

Today in Apple history: Logic Pro 7 shows Apple is still serious about creatives

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Logic Pro 7 was a great music creation tool for Apple fans.
Logic Pro 7 was a great music creation tool for Apple fans.
Photo: Ste Smith/Cult of Mac

September 29: Today in Apple history: Logic Pro 7 launch shows Apple is still serious about creatives September 29, 2004: Apple launches Logic Pro 7, its professional music creation and audio production software. The update brings new tools and a streamlined interface in line with other Apple software.

“From beginners to pros, Apple is broadening the market with a complete line of music creation and production tools,” says Rob Schoeben, Apple’s VP of applications marketing, in a press release. “With Logic Pro 7, we’re taking professional music creation to the next level with the industry’s most advanced feature set for pro audio.”

Today in Apple history: Steve Jobs and Jef Raskin clash over the Mac

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Apple Mac
The war over the Macintosh's soul started on this day in 1979.
Photo: Apple

September 27: Today in Apple history: Steve Jobs and Jef Raskin clash over the Mac September 27, 1979: Years before the Macintosh will ship, Steve Jobs and Jef Raskin clash for the first time over the direction of the R&D project to produce Apple’s revolutionary computer. Raskin, the founder of the Macintosh project, wants to produce a machine that’s affordable for everyone. Apple co-founder Jobs wants a computer that’s going to be the best, regardless of price.

Guess who won?

Today in Apple history: Apple lays out its core company values

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Photo of an iPad with
Cupertino sums up "Apple Values" in an exuberant document.
Photo: Ste Smith/Cult of Mac

Sep 23 Today in Apple history: Cupertino lays out its core Apple Values September 23, 1981: Years before Steve Jobs would tell us to “think different” and Tim Cook would say Apple should act as a “force for good,” Cupertino lays out what it calls its “Apple Values.” This mission statement will guide the company for years.

In the memo, management defines Apple Values as “the qualities, customs, standards and principles that the company as a whole regards as desirable. They are the basis for what we do and how we do it. Taken together, they identify Apple as a unique company.”

Today in Apple history: iPhone 6 is bigger and better than ever

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iPhone
The iPhone 6 and 6 Plus were massive upgrades for Apple.
Photo: Jim Merithew

September 19: Today in Apple history: iPhone 6 is bigger and better than ever September 19, 2014: The iPhone undergoes its biggest upgrade — both figuratively and literally — since the original, with the release date of the iPhone 6 and iPhone 6 Plus handsets. The iPhone 6 design brings a new 4.7-inch form factor, while the iPhone 6 Plus expands to a massive 5.5 inches.

The previous-generation iPhone 5 measured only slightly taller than its 3.5-inch predecessors. But with the iPhone 6, Apple abandons the small smartphone form factor to take on big-screen Android “phablets.”

Today in Apple history: Macintosh 512K, aka the ‘Fat Mac,’ quadruples the memory

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Apple Mac
The "Fat Mac" solved one of the original Mac's biggest problems.
Photo: Apple

September 10: Today in Apple history: Macintosh 512K, aka the 'Fat Mac,' quadruples the memory September 10, 1984: Apple ships the Macintosh 512K, the first upgrade to the first-gen Macintosh 128K.

Coming less than eight months after the original Macintosh, the 512K Mac makes no sweeping changes to the computer’s form factor. Instead, the big upgrade is quadrupling the RAM. This leads Apple fans to refer to the computer as the “Fat Mac.”

Today in Apple history: Steve Jobs flip-flops on the Newton

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The Newton MessagePad 2000 brought many upgrades to Apple's doomed PDA line.
The Newton MessagePad went from hero to zero overnight.
Photo: iFixit

September 4: Today in Apple history: Steve Jobs flip-flops on the Apple Newton PDA September 4, 1997: The writing is on the wall for Apple’s Newton product line as the recently returned Steve Jobs effectively kills the Newton Inc. spinoff.

He tells executives at the recently spun-off company not to bother moving into their new offices. The flip-flop on the Newton spinoff by Apple’s new interim CEO takes employees by surprise.

It’s quite the turnaround for the Newton division. Only months earlier, Apple portrayed it as large (and successful) enough to become its own company.

Today in Apple history: App Store hits quarter-million apps for sale

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Apple pays $467k for doing business with blacklisted app developer
Two years after launching, the App Store was officially a success.
Photo: Apple

August 30: Today in Apple history: App Store hits quarter-million apps for sale August 30, 2010: Just two years after opening its virtual doors, the iOS App Store passes a key milestone: one-quarter of a million apps for sale.

It’s a massive demonstration of success for a service Apple CEO Steve Jobs didn’t even initially want to offer.

Today in Apple history: Beginning of the end for clone Macs

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Power Computing clone Macs sounded like a good idea at first.
Clone Macs sounded like a good idea at first.
Photo: Antnik

August 5: Today in Apple history: Beginning of the end for Power Computing Mac clones August 5, 1997: Apple gets into a standoff with Power Computing, a maker of Macintosh clones. A very public clash at the Macworld Expo in Boston marks the beginning of the end for Apple’s mid-1990s strategy of licensing the Mac operating system.

“If the [Mac] platform goes closed, it is over,” predicts Power Computing CEO Joel J. Kocher of Apple’s strategy. “[It’s] total destruction. The kiss of death.” Of course, things don’t turn out exactly like that for Apple…

Today in Apple history: Steve Jobs acknowledges MobileMe failure

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MobileMepic
MobileMe was the failed precursor to iCloud.
Photo: Apple

August 4: Today in Apple history: Steve Jobs acknowledges MobileMe failure August 4, 2008: In an internal memo, Apple CEO Steve Jobs owns up to mistakes in launching MobileMe, spinning the company’s bungled cloud service rollout as a learning opportunity.

“It was a mistake to launch MobileMe at the same time as iPhone 3G, iPhone 2.0 software and the App Store,” Jobs writes in an email to Apple employees. “We all had more than enough to do, and MobileMe could have been delayed without consequence.”

Today in Apple history: World’s first iPad newspaper starts to crumble

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The Daily iPad newspaper was a great, but ultimately failed, experiment.
The Daily was a great, but ultimately failed, experiment.
Photo: The Daily

July 31: Today in Apple history: The Daily, the world's first iPad newspaper, starts to crumble July 31, 2012: The Daily, the world’s first iPad-only newspaper, lays off almost a third of its staff, signaling the demise of a bold publishing experiment.

The deep cuts — The Daily fires 50 of its 170 employees — affect mainly sports and editorial page staffers, although some production and design employees get the ax, too. The ominous move comes as News Corp places the iPad app “on watch” due to disappointing readership numbers.

Today in Apple history: Apple reclaims top spot in education

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On this day in 1998, the world says
The easy-to-use iMac spurred Apple's return to dominance in schools.
Photo: Apple

July 9: Today in Apple history: Apple reclaims top spot in education July 9, 2001: Apple earns the title of No. 1 computer manufacturer in the education market, with twice as many machines in schools as runner-up Dell Computer.

It marks a big turnaround from a couple of years earlier, when Dell overtook Apple and people accused Steve Jobs of abandoning this important market.

Today in Apple history: After a horrible quarter, Gil Amelio gets the boot

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Bringing on Gil Amelio was viewed as a big coup for the Apple board.
This was the end of Amelio's 500 days running Apple.
Photo: Apple

July 6: Today in Apple history: After a horrible quarter, Apple CEO Gil Amelio is fired July 6, 1997: Following a massive quarterly loss for Apple, board member Edgar S. Woolard Jr. calls CEO Gil Amelio and informs him that he needs to step down. “You’ve done a lot to help the company, but the sales haven’t rebounded,” Woolard says.

Steve Jobs, who recently returned to the company he co-founded, denies being responsible for Amelio’s ouster. However, the move results in Jobs becoming Apple CEO for the first time. Now it’s time for a real turnaround!

Today in Apple history: Bill Gates urges Apple to license Mac OS

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Bill Gates
Bill Gates took this strategy and made himself a multibillionaire.
Photo: Fulvio Obregon

June 25: Today in Apple history: Bill Gates urges Apple to license Mac OS June 25, 1985: Microsoft co-founder Bill Gates sends a memo to Apple execs suggesting that Cupertino should license its Mac operating system and additional technology to other companies.

Apple CEO John Sculley and Macintosh boss Jean Louis Gassée ignore the advice of the 30-year-old Gates, who at the time is best known as a Mac developer. Five months later, Microsoft releases Windows 1.0.

Today in Apple history: Brilliant ad campaign turns Mac ‘switcher’ into unlikely star

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Apple's
Apple's "Switch" ad makes Ellen Feiss internet famous.
Photo: Apple

June 9: Today in Apple history: Ellen Feiss becomes an unlikely star thanks to Apple's Switch ad campaign June 9, 2002: Apple launches its “Switch” advertising campaign, featuring real people talking about their reasons for switching from PCs to Macs. Apple’s biggest marketing effort since the “Think different” ad campaign a few years earlier, one “Switch” ad in particular turns a 15-year-old high school student named Ellen Feiss into an unlikely star.

She becomes a viral sensation after viewers suggest she was stoned while filming her sleepy-eyed “Switch” spot about a homework-devouring PC.

Today in Apple history: Apple reinvents the computer store

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Steve Jobs offers a sneak peek at the first Apple store prior to its opening.
Steve Jobs offers a sneak peek at the first Apple store prior to its opening.
Photo: Apple

May 15: Today in Apple history: Apple reinvents the computer store, with plans to open 25 Apple Stores in the U.S. May 15, 2001: Apple CEO Steve Jobs flips the script on the dreadful experience of computer shopping, unveiling an ambitious plan to open 25 innovative Apple stores across the United States. The first ones, located at Tysons Corner in McLean, Virginia, and the Glendale Galleria in Glendale, California, are set to open later that week.

However, this new Apple initiative is about much more than just a couple of retail outlets. It’s a radical reinvention of tech retail that will change the way computers get sold.