Apple began in Steve Jobs's parents' garage in Los Altos, California, in 1976, when Jobs and Steve Wozniak built and sold their first computer

The Apple Computer Company started as a two-person operation. Steve Wozniak designed the circuit board for what became the Apple I — a fully assembled computer you could actually use, not a kit you had to build yourself. Steve Jobs handled the business side and convinced a local electronics store to order 50 units. They sold them for $666.66 each, which was expensive for 1976 but revolutionary because the machine worked out of the box.

The pair incorporated the company on April 1, 1976. They chose the name "Apple" partly because Jobs had worked at an apple orchard and partly because it came before "Atari" in the phone book — a practical advantage when directories mattered. Within a year, they had moved out of the garage and brought in their first major investor, A.C. "Mike" Markkula, who provided $250,000 in funding and business informed.

Key Takeaways

  • Steve Wozniak designed the first Apple computer and Steve Jobs handled sales and business decisions, starting in a garage in 1976.
  • The Apple I sold for $666.66 and was one of the first computers sold fully assembled and ready to use.
  • Early success came from the Apple II in 1977, which had color graphics and a keyboard, making it appealing to home users and small businesses.
  • The company went public in 1980 at $22 per share, making Jobs and early investors wealthy and giving Apple the money to expand.

Why the Apple II changed what a personal computer could do

The Apple II, released in 1977, was the machine that actually built the company. While the Apple I was impressive to hobbyists, the Apple II came with a keyboard, color graphics, and slots where you could add memory or other components. It looked like a finished product, not a science experiment.

The Apple II also had software that mattered. VisiCalc, the first spreadsheet program, ran on the Apple II in 1979. Suddenly accountants and small business owners had a reason to buy one. Schools started using them too. By 1980, Apple was selling thousands of computers a month, and the company had grown from two people in a garage to a real business with employees, offices, and manufacturing partners.

The 1980 public offering and what it meant

Apple Computer went public on December 12, 1980, offering shares at $22 each. The stock sold out in minutes. By the end of the first day, the price had climbed to $29. Jobs, Wozniak, and Markkula all became millionaires overnight, and the company had roughly $100 million in cash to spend on growth.

Going public meant Apple could hire more engineers, build bigger factories, and invest in research. It also meant the company had to answer to shareholders and follow securities rules. The money from the public offering is what allowed Apple to develop the Lisa computer in the early 1980s and later the Macintosh, machines that pushed the company toward the design and user experience it became known for.

How the Macintosh shaped Apple's direction

In 1984, Apple released the Macintosh, a computer with a graphical user interface — a screen where you clicked on icons instead of typing commands. The Macintosh was expensive ($2,495 at launch) and had less computing power than competitors, but it was easier to use. The design philosophy came from Jobs's visit to Xerox's research lab, where he saw early versions of graphical computing and recognized its potential.

The Macintosh didn't sell as well as the Apple II, and it created tension inside the company. Jobs wanted to focus on design and user experience; other executives wanted to compete on price and power. This conflict eventually led to Jobs leaving Apple in 1985. But the Macintosh established something that stuck: the idea that how a computer looked and felt mattered as much as what it could do.

What happened after Jobs left in 1985

When Jobs departed, he took some engineers with him and started NeXT Computer. Apple continued without him, led by John Sculley, who Jobs had recruited from PepsiCo. The company remained profitable and released new Macintosh models, but it lost direction. By the 1990s, Apple's market share had shrunk, and the company was struggling against cheaper computers running Windows.

Apple tried different strategies — making cheaper computers, licensing its operating system to other manufacturers, even developing a handheld device called the Newton. None of these moves reversed the decline. By 1997, the company was losing money and its future looked uncertain. That year, Jobs returned to Apple as an advisor, and by 2000 he was CEO again. His return set the stage for the products that would make Apple the world's most valuable company.

Why understanding Apple's start matters for tech literacy

Apple's story shows how technology companies actually begin — not with a grand vision handed down from above, but with two people solving a specific problem (making a computer that worked without a kit) and then figuring out how to sell it. It also shows that early success doesn't may provide long-term survival. Apple nearly disappeared in the 1990s because the company lost sight of what made it different.

When you hear tech terms like "graphical user interface" or "going public," understanding where they came from and why they mattered helps you see through marketing language. Apple didn't invent the graphical interface, but Jobs recognized its value and bet the company on it. That choice — to prioritize how something feels over raw specifications — became Apple's identity and is why the company still exists while many of its early competitors vanished.

Frequently Asked Questions

Did Steve Wozniak and Steve Jobs invent the computer?

No. They designed and built the Apple I, but computers existed before that. What they did was create one of the first computers small and affordable enough for individuals to own. Earlier computers filled entire rooms and cost hundreds of thousands of dollars.

Why did Steve Jobs leave Apple in 1985?

Jobs and the board disagreed about the company's direction. Jobs wanted to focus on design and innovation; others wanted to compete on price. The conflict became personal, and Jobs was pushed out. He later said leaving Apple was one of the best things that happened to him because it freed him to start NeXT.

What made the Apple II successful when the Apple I wasn't?

The Apple II came with a keyboard and color graphics built in, so it looked like a finished product. More importantly, software like VisiCalc gave people a reason to buy one. The Apple I was impressive to engineers; the Apple II solved problems for regular people.

How much was $666.66 in 1976 money compared to today?

The price varied depending on which inflation calculator you use, but roughly $3,500 to $4,000 in current dollars. That was expensive, but it was far cheaper than any other working computer available at the time.

Did Apple invent the graphical user interface?

No. Xerox developed it first at their research lab. Jobs saw it there and recognized its potential. Apple made it practical and affordable enough for regular people to use, which is different from inventing it.