HOW APPLE RAISED ITS FIRST FUNDING AND THEIR MANY FAILURES

In today’s world, most people identify with success without wanting to know the story behind the success.

Earlier this week, we wrote about Ronald Gerald Wayne, the co-founder of Apple Computers (https://connectskillsng.wordpress.com/2017/09/26/dont-be-like-wayne/).

Prior to this write-up, we ran a 4 days series on funding opportunities available to entrepreneurs, however we will be telling you about the options adopted by Steve Jobs and his co-founders as well as letting you know some of the Apple products that failed in the market.

Yes, you read right, many Apple products failed in the market but due to diligence and doggedness which Steve Jobs was known for Apple Incorporated is where it is today.

By the time Bill Fernandez introduced Steve Jobs to Steve Wozniak in 1971, Jobs was working at Atari while Wozniak was working at HP but they SHARED PASSION for technology and pranks. Jobs was working on Atari arcade game and needed help with reduction of the required number of logic chips, so he contacted Wozniak to help him with that. Jobs completed the task, got a bonus for the work on Breakout and gave part of it to Wozniak. This singular act marked the ingredient of TRUST required in any relationship.

It is worthy to note that as a show off of his talent and management of little resources Wozniak produced a computer with a typewriter-like keyboard with ability to connect to a regular TV screen which is the first of its kind. However Steve Jobs noted this and was thinking way ahead.

When it was time for them to take this their passion and prank to the next level, Jobs approached the owner of The Byte Shop, Paul Terrell in 1976 to market this show off by Wozniak and Paul gave him a PURCHASE ORDER to buy 50 of this computer which was later christened Apple1 only if only they could fully assemble them.

Hence it was easy for them to enter into PARTNERSHIP having built trust and approached Ronald Gerald Wayne to contribute his expertise which marked the 3rd partner.

While Wayne was served as the “adult supervisor” and drew Apple first logo, wrote the original partnership agreement between the three of them and wrote the Apple I manual.

Jobs and Wozniak needed to raise funds; hence Jobs sold his VW bus for $750 while Wozniak sold his HP 65 Calculator for $500. This served as OWNER INVESTMENT or what we termed BOOTSTRAPPING.

The funds weren’t still enough, so after being turned down by banks Jobs took the PURCHASE ORDER to Cramer Electronics, a national electronic parts distributor, and ordered the components he needed to assemble the Apple I Computer. After due confirmations from the issuer of the PURCHASE ORDER, Cramer Electronics offered them 30 DAYS CREDIT. The rest is history as they delivered and got paid.

After Wayne left them in April 12th 1976, Arthur Rock a venture capitalist seeing the success they recorded and the future in the firm invested in the firm, paid off Wayne brought in Mike Markkula who developed their BUSINESS PLAN, incorporated the new firm and in 1980 they went PUBLIC for over $1.79 billion

So in summary Apple opted for the following funding options (Further reading: https://connectskillsng.wordpress.com/2017/09/13/funding-opportunities-available-to-entrepreneurs/)

  • #BOOTSTRAPPING

  • #PARTNERSHIP

  • #CREDIT

  • #VENTURE CAPITALIST

  • #PUBLIC OFFER

Now this is getting more interesting, let us also let you know about lots of Apple Products that failed notwithstanding the huge successes recorded by the company.

Remember that the purpose of highlighting these failed products is to motivate you further in understanding that without doggedness and commitment to your VISION, you won’t be successful as an entrepreneur.

  1. THE APPLE III

After it was first released on May 19, 1980 the Apple III codenamed “Sara” being the name of Steve Job’s daughter failed after about two years of work by Dr. Wendell Sander, suffering major setbacks due to the overheating motherboard, buggy software and lots of hardware issues.

APPLE111

  1. THE APPLE LISA

This name was also gotten from Steve Jobs daughter’s name and is an acronym of Local Integrated System Architecture. It took over 4 years of work and gulped more than $50Million. Notwithstanding that it was the first computer with a GUI (Graphic User Interphase) but due to poor pre-launch market survey and evaluation it was overpriced and coupled with the slow performance it failed after the launch in 1983.

APPLE LISA

  1. APPLE NEWTON

This was released in 1992 as an office assistance handheld computer and has the following features: Notes with handwriting recognition, Names, Dates, Calculator, Currency Converter, Time-Zones Maps etc. It failed and was discontinued in 1998 due to high cost, weight and challenges associated with the handwriting recognition feature.

apple-newton-messagepad-2000-h2f-800

THE MAC PORTABLE

Many people are conversant with Mac Powerbook 100 but not many knew that it was released in 1993 to succeed Mac Portable which was discontinued in October 1991 due to its overweight after being released in 1989 as the first portable computer by Apple.

The Mac Portable

  1. MACINTOSH TV

In the same year, 1993 Apple released the Macintosh TV which combined the functions of a TV and computer but it didn’t last beyond 10 months post release.

Apple Macintosh_TV.png

  1. APPLE PIPPIN

In response to the growing demand for video games in which industry Nintendo, Sony etc are dominating, Apple entered into partnership with Bandai Co.Ltd and in 1996 they released Apple Pippin but due to non-user friendly operating system as compared to Sony PlayStation, they could not sell more than 42,000 units.

6. TWENTIETH ANNIVERSAY MAC (TAM)

To mark her 20th anniversary, Apple released the TAM in 1997 with built-in TV, FM tuner, and a massive Bose subwoofer as the pioneer of the iMac at MacWorld Expo in San Francisco at initial price of $7,499 but this also failed as the market was not put into consideration in the pricing especially being a totally new product. Even after the price was reduced to $1,995 it still wasn’t accepted by the market and was eventually withdrawn in 1998.

APPLE TAM

7. THE BLACK U2 IPOD

After the success of white iPod, Apple attempted to introduce the black U2 iPod based on her partnership with the U2 band but the color scheme and price did not go down well with the consumers and it failed.

THE BLACK U2 IPOD

Aside from their failed Computer systems, APPLEWORKS being an Office Suites program for Apple II platform failed mainly due to competition by Windows Office and later metamorphosed into iWork.

Apple was not successful in many other products such as the 1998 HOCKEY PUCK MOUSE which came with the original iMac; The QUICKTAKE first consumer-focused digital camera launched in 1994;

1998 HOCKEY PUCK MOUSE QUICKTAKE

Apple and Motorola entered into partnership and launched MOTOROLA ROKR E1 as iPod on a Motorola handset but due to challenge in syncing itunes to Motorola firmware, users get frustrated.

MOTOROLA ROKR E1

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