Steve Jobs and Steve Wozniak started Apple in 1976
Steve Wozniak designed the Apple I computer in 1976. Steve Jobs recognized it could be sold as a finished product and co-founded Apple Computer Company with him that April. Wozniak built the circuit board; Jobs handled business, design decisions, and finding the first investors. The two met in high school through a mutual friend and bonded over electronics.
The Apple I was a bare circuit board that hobbyists had to assemble themselves and connect to their own monitor and keyboard. It sold for $666.66. The pair built the first computers in Jobs's parents' garage in Los Altos, California, and sold them to a local computer shop. This machine is what launched the company, though it was not the computer that made Apple a household name.
Key Takeaways
- Steve Wozniak designed the Apple I circuit board in 1976, and Steve Jobs co-founded the company to manufacture and sell it.
- The Apple II, released in 1977 and designed primarily by Wozniak, was the first mass-market personal computer and became Apple's breakthrough product.
- Ronald Wayne was a third co-founder who left the company within two weeks and sold his stake for $800, missing out on billions in value.
- Jobs and Wozniak brought in professional management and investors in the late 1970s, including venture capitalist Arthur Levenson, to scale the company beyond the garage.
- Jobs focused on design, marketing, and vision while Wozniak handled engineering; their different strengths made the partnership work despite their different personalities.
Ronald Wayne was the third co-founder, though he left almost when ready
Ronald Wayne was a third partner in the original Apple Computer Company. He contributed to early business planning and wrote the company's first manual, but he left after just twelve days. Wayne was older than Jobs and Wozniak and worried about personal liability if the company failed. He sold his 10 percent stake back to Jobs and Wozniak for $800.
Wayne's early departure meant he had no ownership stake when Apple went public in 1980. His share would have been worth billions by the 2000s. He has spoken publicly about the decision over the decades, describing it as a choice made under different circumstances rather than a regret he dwells on.
The Apple II was the computer that actually changed the market
The Apple II, released in April 1977, was the machine that made Apple successful. Wozniak designed it to be a complete, ready-to-use computer—not a kit. It came with a power supply, keyboard, and case. It could display color graphics and connect to a television, which was revolutionary at the time. The price started at $1,298.
The Apple II became the first personal computer to achieve mass adoption in homes and schools. It outsold competitors like the Commodore and the IBM PC in the early 1980s, partly because of its design and partly because of software like VisiCalc, a spreadsheet program that made it useful for business. Wozniak's engineering made the machine affordable and reliable; Jobs's decisions about how it looked and what it could do shaped how people thought about computers.
Jobs handled business and design; Wozniak handled engineering
The partnership worked because the two men had different skills and responsibilities. Wozniak was a self-taught engineer who could write efficient code and design elegant circuits. He worked alone, often late at night, solving technical problems. Jobs had no formal training in engineering but understood what customers wanted and how to present products to them. He made decisions about the computer's appearance, its price, and how it would be marketed.
Jobs also handled the business side—finding investors, negotiating with manufacturers, and building relationships with retailers. In the late 1970s, he brought in Arthur Levenson, a venture capitalist, and Mike Markkula, an early investor and business manager, to help run the growing company. Wozniak continued designing computers while Jobs moved into a leadership role focused on strategy and vision.
Wozniak left Apple in 1985; Jobs was forced out in 1985 as well
Wozniak stepped back from Apple in 1985 after a plane crash left him with memory loss. He had already reduced his involvement as the company grew and hired professional engineers. He remained an employee and ambassador for Apple but was no longer designing computers. Wozniak later worked on other projects and became known for his work in education and technology access.
Jobs was pushed out of Apple's leadership in 1985 after a power struggle with the board and CEO John Sculley, whom Jobs had hired in 1983. Jobs left to start NeXT Computer, a company that built high-end workstations for education and research. He also bought what became Pixar from Lucasfilm. He did not return to Apple until 1997, when the company was struggling and the board asked him to come back as an advisor.
Other key people shaped Apple's early success
John Sculley joined Apple as CEO in 1983 and oversaw the company's growth into a major corporation. Jobs recruited him from PepsiCo with the famous line, "Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?" Sculley managed Apple through the mid-1980s and early 1990s, though his relationship with Jobs became tense.
Mike Markkula was Apple's first major investor and served as the company's second CEO. He provided crucial funding in 1981 and helped structure Apple as a real business rather than a garage operation. Arthur Levenson brought venture capital funding and business informed. These men, along with Jobs and Wozniak, built Apple from a two-person operation into a publicly traded company.
Frequently Asked Questions
Did Steve Jobs actually invent the computer?
No. Wozniak designed the Apple I and Apple II computers. Jobs co-founded the company, made decisions about design and marketing, and led the business strategy. Jobs was not an engineer and did not design the circuits or write the code, but his vision for what computers should be shaped the products.
Why did Ronald Wayne leave Apple so quickly?
Wayne was concerned about personal liability and worried the company would fail. He was older than Jobs and Wozniak and had different risk tolerance. He sold his stake for $800 and moved on to other work. He has said the decision made sense at the time, even though the company succeeded.
What happened to Steve Wozniak after he left Apple?
Wozniak stepped back in 1985 after a plane crash but remained an Apple employee and ambassador. He later worked on education initiatives and technology access projects. He became known for his work teaching computer science and his involvement in various tech ventures outside of Apple.
When did Steve Jobs return to Apple?
Jobs returned to Apple in 1997 after the company struggled without him. He had been away for twelve years, running NeXT Computer and Pixar. The board brought him back as an advisor, and he eventually became CEO again in 2000, leading Apple's transformation into a consumer electronics company.