About “the Apple”. 1983 to 1993, the truth is somewhere near…

John sculley was the head of Apple of the fourth part of her story. In the era of his reign, the company made a lot of mistakes and stupid things, but there were good luck, and triumphs, these years were generally among the best in Apple history.

If at the beginning of 1983, John sculley, head of PepsiCo, is a serious and very successful man, someone to tell about his near future, he would call security and asked the Secretary to call an ambulance psychiatric care. A few months later, one day in April 1983, almost exactly 35 years ago, he first came to the headquarters of Apple Computer as a host. And was shocked…

What hurt Scully Apple Computer

In 1983 Apple Computer “earned” 983 million dollars. For the seventh year of life is very good, and somehow disturbing… even After deducting from this “almost a billion” costs and expenses net profit amounted to $ 77 million in 1983. Amid the most severe crisis in the computer industry when most of its leaders suffer catastrophic losses, was closed and bankrupt, those who were more fortunate of all, survived, painfully holding afloat, closing projects and reducing staff.

Well, it was only to blame for this tsunami, IBM and Microsoift, and… Apple. Maybe there was still some beneficiaries of the Apocalypse, but we’re talking about the players “major League,” and such companies was only three.

Between 1983 and 1993 the company earned more and more, she became a machine for making money, in 1993, the sale brought in almost $ 8 billion.

Up until 1993 it grew and net profit. This is what remains in the accounts of the company after payment of its just what she needs or feels obligated to pay. With $ 77 million in 1983 to 1992 net profit was 530 million.

At Apple Computer in the early ‘ 90s the money went, for example, for travel managers of medium level of high business class, including from Cupertino to Vegas and back (I think it’s 10-15 hours by car), wait for these managers at the apartment of the most expensive hotels and pay there empty mini-bars. “Cookies” employees. On dozens of projects, opened solely in order that someone could show their active participation in and knock out the excess funding…

In General, came in 1983 in the chaos and mess, sculley left in 1993, the same mess, but another and smaller scale. But apparently, that’s life.

In 1993, despite the continued growth of annual revenue, net profit fell to 87 million. From 530 million in 1992. the Blame for this was not only Scully, but he admitted his mistakes, took the blame and resigned. He was sure that Mike Spindler you can do better… Spindler – the only mistake Scully, I can not forgive him.

The resignation Scully was another reason: he successfully resisted the pressure by Motorola and IBM, demanding that Apple open architecture and licensed the operating system for replication (that is, allow the production of clones). In 1986-88. this step could bring success, but not in 1993, was an entirely different time.

During the ten years of the reign of sculley reorganized Apple Computer, turning it into a powerful viable company, increased annual profit from 983 million to $ 7 billion 977 million, he invented and launched the Newton project (just by the usual misstep for Apple, ahead of its time), hooked up to Apple to develop the PowerPC and CHRP (Common Hardware Reference Platform, nearly successful attempt to create shared between different computer platforms for CPU-computing architecture), participated in the creation of a consortium of Apple+IBM+Motorola. This is not all, but you already realized that Scully was not a “dummy”.

Nor was he the ideal master Apple, but perfect is only what is not.

1983: Apple Computer turns seven, she got to go to school…

Apple was the seventh year, in her head the butterflies and flowered forget-me-not, in General, played childhood. The success was well-deserved, earned with sweat and blood, but with cute I anarchy and kitchen atmosphere it was necessary, to put it mildly, something to do. Otherwise disaster was imminent. Apple Computer grew, and it was time for her to grow up.

What was needed was someone with experience in the successful management of a very large company (and the score of victories and achievements in this field, credible and inspiring respect). In addition, the company needed a professional in the field of marketing and promotion of products. For maximum effectiveness, both of these incarnation wanted to combine in one person.

Almost every year, talented and possessed the most fantastic and incredibly great ideas of the representatives of our species invent and embody in metal or in code running hundreds of incredible ideas… But only a hundredth of a percent of them manage to interest blasé and lazy humanity. And of those who did, only units turns out to hold for a fleeting focus of attention and turn fleeting success into a triumph and a lot of money (that too not the last business).

At Apple Computer in 1983 was chaos and mess, shocked Scully, though Steve jobs and Mike Markkula (Chairman of the Board of Directors of Apple Computer from 1977 to 1997), in General, have already acquainted him with the situation. The developer team of Apple II (and in fact until the late 80’s it was the Apple II brought the company’s lion’s share of the profits) considered themselves unjustly forgotten and humiliated because all the money went to a 32-bit Mac and Lis’s. It was a small flaming Ulster.

The plans were drawn up, were adopted and… immediately forgotten. To calculate what amount of earned company money is wasted burning in the chaos, it was impossible.

Scully gave the order. From now on, each Department would know what he should do and for which he is responsible. Informal and not always effective in practice, the parallel connection was destroyed (which Scully, in my opinion, went too far), but introduced in the case of clear and distinct rules and procedures for the acceptance, approval and control solutions.

Bureaucracy is the cure. As was the wine. “Tastes in it. And drink a lot.” (Abu Ibn Sina, known in Europe as Avicenna, actually, “Tajik”).

Restoring order is not bloodless. Dozens severely offended in his best feelings have left the company, and their emotional and often very cool says (in the Apple at all times it was difficult to meet untalented person), description, terrible and ungrateful Apple gladly spread media.

The order was imposed, costs under control, sales and net profit grew, and I wanted Scully something of such things… He’s tempted by the prospect of changing the world! Remember that he said jobs in new York, apparently, in January of 1983?

“You want to spend the rest of your life selling sweet drinks, or want to change the world?”

And he had a great idea!

To be continued (as fired jobs, project Newton (new Vasyuki of John sculley or something insanely great?), than Apple at the peak of success is unprofitable differs from Apple’s in trouble… please Read!)

Leave a Reply

Your email address will not be published. Required fields are marked *