The Apple Comeback Part 1: An Unexpected Return

This is a 3 part series. I wanted to address this in detail, but don’t worry. I’ve broken it into 3 days unlike other posts of mine 😅.

In the mid-1990s, Apple was on the brink of collapse. Despite being the company that pioneered personal computing with the Apple II and later the Macintosh, a series of bad decisions, leadership instability, and stiff competition from Microsoft had left Apple bleeding money and losing relevance. In 1997, Apple had less than 90 days of cash on hand. Its market share had plummeted, and its product lineup was confusing and bloated.

Amid this chaos, Apple made a bold and controversial move: it acquired NeXT, a computer company founded by none other than Steve Jobs, the very man who had been ousted from Apple twelve years earlier. The acquisition brought Jobs back into the fold, first as an advisor and then, eventually, as interim CEO. At the time, critics were skeptical. Jobs had been known more for his charisma than for actual business turnarounds. But this was the beginning of Apple’s second act.

Jobs quickly set to work cutting costs and simplifying the product line. One of his most decisive moves was to cancel dozens of ongoing projects and focus the company around just four products: a consumer desktop, a professional desktop, a consumer laptop, and a professional laptop. This level of focus was unheard of in tech at the time. With that clear structure in place, Apple could start to innovate again.

But it wasn’t just about cutting. Jobs brought back a vision. He emphasized design and usability. He reinvigorated the Apple brand and began hiring top talent. One early move that stunned the industry: securing a $150 million investment from Microsoft. Bill Gates appeared on a giant screen at Macworld in 1997, announcing a partnership to continue Microsoft Office for Mac. Apple fans booed, but Jobs knew that the cash and software support were necessary to survive.

This was Apple at its lowest, but the groundwork for one of the greatest turnarounds in corporate history was being laid. The next few years would show the world what Jobs and Apple were capable of.