Steven Jobs - Jobs Returned To Apple, 1996-2001

JOBS RETURNED TO APPLE (1996-2001)

As Windows became the dominant operating system in the 1990s, Apple was struggling with dwindling sales and market share. In December 1996 Jobs sold NeXT to Apple for $400 million and returned to the company as a consultant. After then-CEO Gilbert Amelio was forced out by Apple's board of directors, Jobs assumed an expanded role as a key advisor to the company. Morale at the company returned to a higher level because of Jobs' new role, and the company's loyal customers looked forward to new developments.

In September 1997 Jobs was named interim CEO of Apple. At the time Apple had only about 10 percent of the personal computer market, compared to 85 percent for Windows. As interim CEO Jobs took steps to refocus the company and cut costs. He eliminated Apple's licensing program so that other manufacturers could not make computers based on the Macintosh operating system. He refocused the company's product lines to better serve the education, home, and desktop publishing segments. He cut costs by outsourcing manufacturing, cutting the number of distributors, and reducing the amount of inventory on hand.

Jobs and Microsoft head Bill Gates were able to reach an agreement whereby Microsoft agreed to settle Apple's long-standing patent-infringement lawsuit and invest $150 million in Apple. Microsoft announced that it would develop software to run on the Macintosh platform, thus giving Mac users more choices in software.

In August 1998 Apple introduced a new line of computers, the iMac, that came in different colors and featured a new, rounded shape. A bold advertising campaign featuring the slogan, "Think Different" launched the iMac and helped it become an immediate sensation. Following the introduction of the iMac, Apple's financial performance improved. As the company posted solid gains in earnings its stock rose on Wall Street, reaching an all-time high of $118 in December 1999.

In January 2000 Jobs dropped "interim" from his title and became CEO of Apple, but 2000 would prove to be a difficult year for the company. Its stock fell to a low of $13, and its new Power Mac G4 Cube was not well received and was subsequently discontinued.