Apple has become the first U.S. company to hit $1 trillion in market value. Not bad for a company that used to be run out of a garage.
But while it may be enjoying the fruits of extreme success in 2018, things weren’t always looking so bright for Apple. Back in 1997 it was only months about from bankruptcy, until Microsoft helped out.
A recent report by news.com.au has reminded us of just how much trouble Apple was in just a few years before the iPod was announced, and a decade before we saw the first generation of iPhones.
Huge cuts had been made to the Apple workforce, stock hit an all-time low and the company only had about three months left before going completely broke. Consequently, CEO Gil Amelio was fired by the Apple board of directors in July 1997 and Steve Jobs was brought back after a twelve-year absence.
Only a month after this overhaul, Jobs took to the stage at the Macworld Boston 1997 to deliver the news that the company’s biggest rival was to become its saviour. Microsoft agreed to invest $150 million into Apple. In exchange, Macs would support Office products for the next five years and their default browser would be Internet Explorer.
On a slightly more sour note, Apple also agreed to drop a lawsuit that it had filed against Microsoft at the time that stated that the Windows had copied the aesthetics of the Mac’s operating system.
While Microsoft got a pretty good deal out of its investment, it’s safe to say that thanks to the bailout Apple was able to eventually dominate the revolutionise the mobile market, which has significantly contributed to its trillion dollar success. Cheers, Bill.
You can watch the detailed Macworld announcement right here:
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