had received no major upgrades since the introduc-
tion of System 7. This failure of innovation, com-
bined with an increasingly complex and confusing
product line, drove customers away from the
Macintosh toward Windows-based computers, par-
ticularly as Microsoft made Windows increasingly
Mac-like. Even the replacement of Spindler as CEO
with Gil Amelio could not stay Apple’s slide into
oblivion.
In 1997, the board of directors took drastic mea-
sures. In a complex deal, they purchased NeXT to
gain access to the NEXTSTEP OS and brought back
Apple cofounder Steve Jobs to become interim
CEO. Jobs immediately simplified Apple’s confusing
product line to desktop and laptop machines for
professional and consumer use.
In 1998, Jobs introduced the iMac, a return to the
all-in-one form factor of the original Macintosh, but
with curved lines and transparent plastic that some
critics derided as girlish. However, it contained nu-
merous technological innovations, including the
new universal serial bus (USB). Its market success
led to the introduction of a companion consumer
laptop, the iBook, which also featured curvilinear
design and brilliant colored plastics. By the close of
the 1990’s, the iMac and iBook had resecured Ap-
ple’s fortunes, positioning the company for the in-
troduction of such innovative products as the UNIX-
based OS X operating system and the iPod digital
music player.
Impact Although Apple entered the 1990’s as an
innovator, with several sophisticated desktop and
laptop machines, by the middle of the decade the
company seemed to have lost its way. Its product line
had become confusing, with so many different niche
market items that many prospective buyers had no
idea which model was best for them. By 1997, Apple
was in serious danger of failing altogether. However,
Jobs’s return enabled Apple to recover its competi-
tive position by simplifying its product line and by
taking risks with such products as the iMac and
iBook. As a result, Apple closed the decade posi-
tioned for the introduction of the iPod and the con-
sequent expansion into consumer electronics.
Further Reading
Carlton, Jim.Apple: The Inside Stor y of Intrigue, Egoma-
nia, and Business Blunders.New York: Random
House, 1997. Corporate history of Apple, from its
foundation by Jobs and Stephen Wozniak to
Jobs’s return.
Levy, Steven.Insanely Great: The Life and Times of
Macintosh, the Computer That Changed Ever ything.
New York: Viking Press, 1994. Published on the
tenth anniversary of the Macintosh, the book
came out just as the AIM alliance was bearing
fruit, and thus shows the enthusiasm of those
heady days.
Malone, Michael S. Infinite Loop: How Apple, the
World’s Most Insanely Great Computer Company, Went
Insane. New York: Doubleday, 1999. A company
history, including a great deal of information on
the corporate politics that surrounded Jobs dur-
ing the time shortly before he was pushed out of
the company, as well as his return.
Leigh Husband KimmelSee also Business and the economy in the United
States; Computers; Jobs, Steve; Microsoft; Science
and technology.44 Apple Computer The Nineties in America
Steve Jobs, chief executive officer of Apple Computer, holds an
iMac computer. Jobs and his new line of computers helped revital-
ize the company in the late 1990’s.(AP/Wide World Photos)