Steve Jobs was not always involved with Apple throughout his life. However, after his return, he averted an impending bankruptcy. Jobs’ saving idea was a new sales channel that quickly brought the company several million dollars in revenue.
Apple was not always the successful company as we know it today. Nearly 30 years ago, the US company faced bankruptcy. Steve Jobs had just returned and needed to act quickly to save Apple from insolvency.
For this reason, Jobs launched the Apple Online Store in 1997. With 12 million dollars in the first month, the shop was a great success and saved Apple. You can find out the exact reasons that led to the Apple Online Store and how Steve Jobs found his way back to Apple here at MeinMMO.
The online business saved Apple from bankruptcy
How did Steve Jobs avert bankruptcy? After his return to Apple in 1996, Jobs was quickly confronted with the company’s dire financial situation. He looked for ways to cut costs in order to reduce overall expenses. Out of necessity, Steve Jobs launched the Apple Online Store in 1997.
This online store was a resounding success for Apple. In the first four weeks after launch, the Apple Online Store generated revenue of 12 million dollars. This direct source of income saved Apple from impending bankruptcy. Strengthened by this, Jobs began his renewed victory march. A year later, Apple returned to profitability thanks to the first iMac. With this confidence, Steve Jobs also wanted to enter the console market successfully, which ended up angering Sony.
How did Steve Jobs return to Apple? Jobs had to leave Apple in 1985 due to internal power struggles. Five key employees left with him, although he was known to be a difficult boss. Just a year later, he founded the computer and software company NeXT. After 7 years in business, Jobs sold the hardware division in 1993 to focus completely on software development.
In 1996, Apple was on a shopping spree and acquired NeXT for 402 million dollars at the time. This way, Steve Jobs returned to Apple in an advisory role. Already the following year, he was appointed interim CEO. It wasn’t until early 2001 that the “interim” was removed from his title as CEO.
For these reasons, the Apple Online Store exists
Why was the choice made for an online shop? At that time, regular computers dominated the market. The own Apple Mac sold poorly and the profit margins were very low for retailers in stores. This led to fewer and fewer Apple systems being displayed at local retailers. He identified stores and intermediaries who only thought about their sales commissions as a significant financial problem.
In Jobs’ biography, written by Walter Isaacson, the following statement from the former Apple CEO can be found:
If we didn’t find a way to get our message to customers through these stores, we were screwed.
But instead of strengthening local sales through intermediaries, Jobs saw much more potential in a digital sales channel.
How did the former Apple CEO come up with this idea? As one of Apple’s main competitors, Dell launched an online shop in 1995. By selling directly to customers, retailers and other intermediaries were eliminated.
What was most remarkable at the time was the flawless logistics behind the entire system. Inventory was meticulously calculated and new products were quickly available. Inspired by this, Steve Jobs decided to launch his own online store.
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