Steve Jobs, Steve Wozniak, and Ronald Wayne Founded Apple in 1976

Steve Jobs and Steve Wozniak started Apple Computer Company on April 1, 1976, in Jobs's parents' garage in Los Altos, California. Ronald Wayne, a friend of Jobs's, was the third co-founder but left the company after 12 days and sold his 10 percent stake for $800. Jobs handled business and marketing, Wozniak designed the computers, and Wayne wrote the company's first manual and designed its original logo.

The two Steves were in their twenties when they founded the company. Wozniak had been working at Hewlett-Packard and Jobs at Atari, a video game company. They decided to build personal computers and sell them to hobbyists and small businesses. Their first product, the Apple I, was a circuit board that Wozniak had designed. It sold for $666.66.

Key Takeaways

  • Steve Jobs and Steve Wozniak founded Apple Computer Company in April 1976 in a garage in California, with Ronald Wayne as a brief third co-founder.
  • Wozniak designed the computers while Jobs handled business decisions and marketing from the start.
  • The Apple I, released in 1976, was a circuit board sold to hobbyists for $666.66 and marked the beginning of personal computing for home users.
  • The Apple II, released in 1977, was the first mass-produced personal computer and made Apple a real business rather than a garage project.
  • Jobs and Wozniak took the company public in 1980, making both of them millionaires in their twenties.

Steve Wozniak Designed the First Apple Computers

Steve Wozniak was the engineer and designer behind Apple's early computers. He taught himself electronics as a child and had already designed computers before meeting Jobs. Wozniak built the Apple I almost entirely by himself, using a 6502 microprocessor and writing the machine code that made it work. He did this work in his spare time while still employed at Hewlett-Packard.

Wozniak's design was remarkable because it was simpler and cheaper to build than competing computers. Most computers at that time required separate components for power, cooling, and display. Wozniak integrated more of these functions onto a single circuit board, which made the Apple I affordable for individual buyers rather than just large companies. He continued to design the Apple II, which became the first mass-produced personal computer.

Steve Jobs Handled Business and Marketing

Steve Jobs had no formal training in engineering or business, but he understood what customers wanted and how to sell it to them. Jobs convinced Wozniak to start a company instead of just building computers as a hobby. He also persuaded a local computer retailer named Paul Terrell to order 50 Apple I computers, which gave the company its first real revenue.

Jobs made decisions about product design, pricing, and how Apple should present itself to the public. He believed that computers should be beautiful and straightforward to use, not just functional machines for engineers. This philosophy shaped Apple's products and brand from the beginning. Jobs also hired the company's first employees and managed relationships with investors and business partners.

The Apple II Made Apple a Real Business

The Apple II, released in April 1977, was the first personal computer sold in large numbers to regular people. Unlike the Apple I, which was just a circuit board, the Apple II came in a plastic case with a keyboard and could connect to a monitor and a cassette drive for storage. It cost $1,298, which was expensive but affordable for small businesses and serious hobbyists.

The Apple II was successful because it was reliable, straightforward to set up, and had useful software available for it. A spreadsheet program called VisiCalc, released in 1979, made the Apple II essential for accountants and business owners. By 1980, Apple was selling thousands of computers per month. The company moved out of the garage and into a real office building.

Apple Went Public in 1980

Apple Computer Company held its initial public offering on December 12, 1980. The stock price was set at $22 per share, and the company raised $101 million. This made Jobs and Wozniak millionaires almost overnight. It also gave Apple the money to hire more engineers, open new offices, and develop new products.

Going public changed Apple from a startup into a corporation. Jobs became the chairman and Wozniak stayed on as an engineer, though he took a leave of absence in 1981 after a plane crash. The company began to hire professional managers and expand beyond the two founders' direct involvement. By the mid-1980s, Apple was one of the largest computer companies in the world.

Ronald Wayne's Brief Role and Early Exit

Ronald Wayne was an electronics technician and draftsman who knew both Jobs and Wozniak. He joined the company as a co-founder and wrote the Apple Computer Company manual, designed the original Apple logo (which featured Isaac Newton under an apple tree), and helped with early business planning. However, Wayne was concerned about the legal and financial risks of starting a company and decided to leave after just 12 days.

Wayne sold his 10 percent stake back to Jobs and Wozniak for $800. If he had kept that share, it would have been worth millions after the 1980 public offering. Wayne later said he did not regret the decision because he was not confident the company would succeed. He went on to work in other fields and occasionally gave interviews about his time at Apple.

The Garage Myth and What Actually Happened

Apple's founding in a garage has become part of the company's legend, but the garage was not where most of the early work took place. Wozniak designed the Apple I mostly at his apartment and at Hewlett-Packard. The garage was used for assembly and testing, and it was where Jobs and Wozniak decided to start the company. The garage belonged to Jobs's parents, Paul and Clara Jobs, who supported their son's project.

The garage story became famous because it fit a narrative about American entrepreneurship—two young people with no money starting a company that changed the world. Jobs and Wozniak did not discourage this story, and it became central to Apple's public image. In reality, the company's success came from Wozniak's engineering skill, Jobs's business sense, and the timing of the personal computer revolution in the mid-1970s.

Frequently Asked Questions

Did Steve Jobs invent the technology in Apple computers?

No. Steve Wozniak designed and built the Apple I and Apple II computers. Jobs did not have an engineering background and did not design the hardware or write the code. Jobs's role was to recognize the business opportunity, convince Wozniak to start a company, and make decisions about how to market and sell the computers.

Why did Ronald Wayne leave Apple after 12 days?

Wayne was worried about the legal and financial risks of starting a company. He was older than Jobs and Wozniak and had different priorities. He sold his share back to them for $800 and moved on to other work. Wayne has said in interviews that he did not believe the company would succeed at the time.

How much did the first Apple computers cost?

The Apple I sold for $666.66 in 1976. The Apple II, released in 1977, cost $1,298. Both prices were high by today's standards, but they were affordable compared to other computers available at that time, which often cost thousands of dollars or more.

What made the Apple II different from other computers in 1977?

The Apple II came in a plastic case with a keyboard included, rather than as a bare circuit board. It was reliable, straightforward to set up, and could run useful software like the VisiCalc spreadsheet. Most other personal computers at that time were harder to use and had less software available for them.

How old were Jobs and Wozniak when they started Apple?

Steve Jobs was 21 years old and Steve Wozniak was 26 years old when they founded Apple Computer Company in April 1976. Both were young enough to take risks, but Wozniak had more technical experience from his work at Hewlett-Packard.