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Tuesday, September 6, 2011

Ten catastrophes: All-time worst tech industry executive decisions

by Jason Perlow [Source]

06-jobs_sculley.jpg

John Sculley, Apple Computer: Throwing out Steve Jobs

 

In 1985, Apple Computer was in the midst of a technology transition. In the previous year, the company had just launched its first Macintosh computer, which had replaced the Apple ][ and Apple III line it had been selling successfully for the last several years.

Founder Steve Jobs had recruited former Pepsi-Cola executive John Sculley to act as Apple's CEO, in order to help grow the company. While Jobs was considered to be a charismatic and dynamic employee at Apple and at the Macintosh division which was under his direct leadership, he was also erratic, difficult to work with and temperamental, and it was beginning to put a strain on his relationship with his team members as well as on the Board of Directors of the company.

Facing a sales slump due to overwhelming competition from companies like IBM and Compaq that were selling PCs and clones, Jobs' relationship with Sculley deteriorated which resulted in his ouster from the company he and Steve Wozniak founded.

The 11-year period that Apple continued on without Steve Jobs is universally considered to be a major low point for the company. Without Jobs' vision and guidance, innovation slowed and Apple underwent several leadership changes. Revenue and stock valuation plummeted, the company was on the verge of financial oblivion, and by the mid 1990's the company was in desperate need for a replacement to the aging Macintosh OS. 

In 1996, Apple purchased Steve Jobs' NeXT, which would serve as the foundation for what would become OS X and later on the iOS which powers the iPhone and iPad. Gil Amelio, the current CEO, was ousted in 1997 in a boardroom coup and Steve Jobs returned as Chairman and CEO.

Jobs would guide the company into the release of the iMac, the iPod, OSX and and x86-based Macs, and then later the iPhone, iPad and Apple TV, ushering in a new golden age for Apple.

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