At the beginning of the year 1976, in California, Steve Wozniak had just finished designing a computer circuit board that he intended to share with other enthusiasts in a prestigious local club. His friend Steve Jobs also saw a business opportunity in manufacturing and selling these boards, thus giving birth to Apple.
The company is celebrating its 50th anniversary on Wednesday. Its growth has shaped both the technology industry and popular culture by popularizing desktop computers, then smartphones, popularizing mobile apps, and demonstrating how closely devices and software can be integrated.
However, the iPhone manufacturer is now under pressure to show that it can remain a technological powerhouse in the era of artificial intelligence, as its rivals Alphabet and Microsoft invest billions of dollars to stay ahead.
Its stock has the second worst performance among the “Big Seven” since OpenAI launched ChatGPT in November 2022.
Despite integrating machine learning features into its chips since 2017, analysts and investors believe delays in deploying features, including a revamped Siri, suggest that Apple was not adequately prepared for how consumers would use AI.
Rivals like OpenAI are also planning to launch AI devices that aim to challenge the long-standing dominance of smartphones.
Nevertheless, Apple devices remain very popular.
The strong demand for the latest iPhone 17 series drove profits in the December quarter, while the $599 MacBook Neo – its cheapest laptop – was successfully launched.
“The company has gone fifty years without anyone really challenging its integrated business model; the fate of its next fifty years may depend on how compelling AI eventually becomes – and whether OpenAI can surpass the original,” said independent tech analyst Ben Thompson on Stratechery.com, on Tuesday.
Here are five graphs illustrating Apple’s rise:
1. RAPID GROWTH OF APPLE’S STOCK PRICE
The company went public in 1980, but its stocks saw a spectacular rise at the turn of the century when the iPhone became a bestseller and its range of devices expanded. Its internal M-series chips also contributed to the increase in Mac sales, boosting the stock price.
2. ANNUAL REVENUE APPROACHES $500 BILLION
Apple, one of the world’s most valuable companies, also ranks among the highest in terms of revenue. Thanks to strong demand for its latest iPhone series, it is expected to achieve $465 billion in revenue for the current fiscal year ending in September.
3. SERVICES BECOME APPLE’S MAIN GROWTH DRIVER
Apple’s services business, which includes the App Store, Apple Music, and its streaming service, has become a key growth driver as the expansion of its device base generates regular income from subscriptions and app sales commissions. This has also led to highly publicized conflicts with companies like Epic Games, which tried to challenge its control over in-app payments.
4. CHINA AND EMERGING MARKETS INCREASE APPLE’S REVENUE SHARE
While the smartphone market is saturated in the United States, China and emerging markets like India are playing an increasingly important role in Apple’s revenue.
5. PRODUCTS THAT DEFINE APPLE
The printed circuit board that Wozniak shared with Jobs in 1976 became the Apple I, the first in a series of products that enabled the company to transition from a garage startup to a consumer electronics giant. Over the years, Apple has had successes such as the iPod, and its range now includes smartwatches, wireless earbuds, and the Vision Pro mixed reality headset.
