Apple started in 1976 when Steve Jobs, Steve Wozniak, and Ronald Wayne built the first Apple computer in Jobs's parents' garage in Los Altos, California
The three founders designed the Apple I as a fully assembled circuit board — unusual at the time, when most computers were sold as kits that buyers had to assemble themselves. Wozniak, an engineer, designed the machine. Jobs handled business and marketing. Wayne wrote the partnership agreement and handled documentation, though he left the company within two weeks. The Apple I sold for $666.66, and the company made about $774,000 in revenue during its first year.
By 1977, Jobs and Wozniak had incorporated Apple Computer Company and released the Apple II, which became the first mass-produced personal computer. The Apple II had a keyboard, color graphics, and sound — features that made it stand out from competitors. This machine established Apple as a serious computer maker, not just a hobbyist project.
Key Takeaways
- Steve Jobs and Steve Wozniak founded Apple in 1976 in a garage, with Ronald Wayne as the third co-founder who left after two weeks.
- The Apple I was the first product: a fully assembled circuit board priced at $666.66, which was revolutionary because most computers at the time were sold as kits.
- The Apple II, released in 1977, became the first mass-produced personal computer and included features like a keyboard, color graphics, and sound.
- Apple's early success came from making computers accessible to regular people, not just engineers and hobbyists.
How Wozniak's engineering and Jobs's business sense shaped the company
Steve Wozniak was a self-taught electronics engineer who had worked at Hewlett-Packard. He designed computers that were simpler and cheaper to build than existing machines, which meant Apple could sell them at lower prices while still making a profit. His technical decisions — like choosing the MOS Technology 6502 processor for the Apple II — made the computer powerful enough for real work but affordable enough for individuals to buy.
Steve Jobs brought a different skill: he understood that computers needed to be designed for people, not just engineers. He pushed for features like a power supply built into the machine (instead of a separate box), a keyboard included in the box, and a case that looked professional rather than industrial. He also saw that computers needed software and peripherals to be useful, so he worked to build relationships with software makers and accessory manufacturers.
Why Apple's early computers stood out from competitors
In the mid-1970s, most personal computers were sold as kits or bare circuit boards. The Altair 8800, released in 1975, required buyers to solder components and write their own code just to make it do anything. The Apple I and Apple II were different: they came ready to use, with a keyboard and monitor connection built in. A person could unbox an Apple II and start using it the same day.
Apple also invested in software early. The company worked with VisiCalc, the first spreadsheet program, to make sure it ran well on the Apple II. VisiCalc became a "killer app" — a program so useful that people bought computers just to run it. This combination of accessible hardware and useful software gave Apple a real advantage over hobbyist machines.
How Apple grew from a startup to a major computer maker
Apple went public in December 1980, raising $101 million and making Jobs and Wozniak wealthy. The company used this money to build factories, hire engineers, and expand its product line. By 1983, Apple had released the Lisa, an early computer with a graphical user interface — a screen where you could click on icons instead of typing commands. The Lisa was expensive and didn't sell well, but it proved Apple could innovate beyond the Apple II.
In 1984, Apple released the Macintosh, which combined the graphical interface idea with a lower price and better marketing. The Macintosh became the computer that brought user-friendly design to the mainstream. By the mid-1980s, Apple was one of the largest computer makers in the world, competing directly with IBM and other established companies.
The role of design and user experience in Apple's success
From the beginning, Apple treated computer design as something that mattered to regular people, not just engineers. The Apple II had a beige plastic case that looked clean and professional. The Macintosh came in a small, all-in-one box with a built-in screen. These choices reflected Jobs's belief that how a computer looked and felt was as important as what it could do.
This focus on design and user experience became Apple's trademark. While other computer makers competed on speed and price, Apple competed on how straightforward and pleasant their computers were to use. This strategy kept Apple profitable even when competitors made faster or cheaper machines, because customers were willing to pay more for a better experience.
What happened to the other co-founders
Ronald Wayne, the third co-founder, sold his 10% stake in Apple back to Jobs and Wozniak for $800 in 1976. He later said this was one of the biggest financial mistakes of his life — that stake would have been worth billions. Wayne went on to work in other fields and became a writer and historian of early computing.
Steve Wozniak left Apple in 1985 to pursue other interests, though he remained an employee and advisor. He had health problems and felt that the company was becoming too focused on business and not enough on engineering. Wozniak later returned to Apple in advisory roles and has remained involved with the company in various capacities.
Steve Jobs remained Apple's leader until 1985, when a conflict with the board led to his resignation. He founded NeXT Computer and later bought Pixar Animation Studios. Jobs returned to Apple in 1997 when the company was struggling, and he led the company's transformation into a consumer electronics giant with products like the iMac, iPod, iPhone, and iPad.
Frequently Asked Questions
Why did Ronald Wayne leave Apple so quickly?
Wayne was the oldest of the three founders and had more experience with business risk. He was concerned about personal liability and felt uncomfortable with the venture. He sold his stake for $800, which seemed reasonable at the time but turned out to be a historic undervaluation.
What made the Apple II different from other computers in 1977?
The Apple II came fully assembled with a keyboard, power supply, and case included. Most other computers were sold as kits or bare boards. It also had color graphics and sound, and it could run VisiCalc, the first spreadsheet program, which made it useful for business and personal finance.
Did Steve Jobs invent the technology in Apple computers?
No. Steve Wozniak designed the Apple I and Apple II computers. Jobs was the co-founder who handled business, marketing, and product vision. Jobs was skilled at understanding what people wanted and pushing engineers to build it, but he was not the primary engineer or inventor.
How much was Apple worth when it went public?
Apple's initial public offering in December 1980 valued the company at about $1.2 billion. The company raised $101 million by selling shares. This made Apple one of the fastest-growing companies of the era and made Jobs and Wozniak wealthy.