Apple Computer, Inc.

Riding high on the success of the Apple II, Apple launched the Apple III in 1980, aiming to capture the business market with a more powerful, professional machine. Soon after, they developed the Apple Lisa, the first computer to feature a Graphical User Interface (GUI)—a revolutionary step toward operating systems as we understand them today. Before this, computers relied solely on text-based commands. This period marked a turning point for Apple as it struggled to evolve from a groundbreaking startup into a dominant force in the tech industry.

The Apple III marked Apple’s first step toward a closed ecosystem. While the Apple II was known for its customizability and upgradeability, the Apple III limited expansion options by integrating features like a built-in floppy disk drive, Apple’s proprietary SOS (Sophisticated Operating System), and a fanless design—a decision that led to overheating and hardware failures. This approach to a controlled ecosystem would eventually become a cornerstone of Apple’s dominance, but in the 1980s, consumers were still accustomed to the flexibility and adaptability of early PCs.

The Apple III underperformed, leaving Apple’s financial stability reliant on continued sales of Apple II variations. During this time, Apple was developing revolutionary technology through two new product lines: the Apple Lisa and the Macintosh. Both were designed to introduce the world to GUIs, with the Macintosh envisioned as a more affordable alternative to the high-end Lisa.

Jobs originally launched the Lisa team, setting the vision for a high-end professional computer that would revolutionize business computing. Like the Apple III, the Lisa featured a semi-closed ecosystem, but its ambitious and resource-intensive software made it highly inefficient despite its groundbreaking GUI and features.

Before Apple Lisa was completed, Jobs was removed from the project due to internal power struggles and reassigned to the Macintosh, which was considered a smaller, less essential initiative. Driven by frustration and a desire to prove himself, Jobs took his vision for the Lisa and refined it into the Macintosh—delivering a computer that offered similar innovation but at a fraction of the cost ($2500 vs $10,000).

As the Macintosh development was reaching a pinnacle, the board decided they needed to bring in a new CEO, someone with business experience who can help balance job’s innovation and boost Apple’s lackluster marketing efforts. John Sculley, the then CEO of PepsiCo, was chosen by Jobs himself off a shortlist provided to him by the rest of the board. Jobs was impressed with Scully’s Pepsi Challenge campaign and took the time to recruit Sculley personally, delivering his famous line asking Sculley if he wanted to sell sugar water or help Jobs change the world. Jobs thought he found an ally, someone who believed in his vision. He was wrong.