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==History== [[Image:Apple iie.jpg|thumb|right|250px|Apple IIe with [[Disk II#DuoDisk|DuoDisk]] and [[Apple Monitor II|Monitor II]]]] [[Apple Inc.|Apple Computer]] planned to discontinue the [[Apple II]] series after the introduction of the [[Apple III]] in 1980; the company intended to clearly establish [[market segmentation]] by designing the Apple III to appeal to the business market, leaving the Apple II for home and education users. Management believed that "once the Apple III was out, the Apple II would stop selling in six months", cofounder [[Steve Wozniak]] later said.<ref name="byte198501">{{cite journal |title=The Apple Story / Part 2: More History and the Apple III |journal=BYTE |publisher=UBM Technology Group|location=United States|volume=10|number=1|issn=0360-5280|oclc=637876171|date=January 1985 |author-last1=Williams |author-first1=Gregg |author-last2=Moore |author-first2=Rob |page=167 |type=interview |url=https://archive.org/stream/byte-magazine-1985-01/1985_01_BYTE_10-01_Through_the_Hourglass#page/n167}}</ref> By the time IBM released the rival [[IBM Personal Computer|IBM PC]] in 1981, the Apple II's technology was already four years old.<ref name="rosen19811130">{{cite news|url=https://books.google.com/books?id=SD0EAAAAMBAJ&pg=PA86|title=From the Rosen Electronics Letter / IBM's impact on microcomputer manufacturers|work=InfoWorld|date=1981-11-30|volume=3|number=28|location=United States|publisher=IDG|issn=0199-6649|oclc=923931674|access-date=25 January 2015|author=Rosen Research|pages=86–87|archive-date=March 10, 2023|archive-url=https://web.archive.org/web/20230310064439/https://books.google.com/books?id=SD0EAAAAMBAJ&pg=PA86|url-status=live}}</ref> In September 1981 ''[[InfoWorld]]'' reported—below the PC's announcement—that Apple was secretly developing three new computers "to be ready for release within a year": [[Apple Lisa|Lisa]], [[Macintosh 128K|Macintosh]], and "Diana". Describing the last as a software-compatible Apple II replacement—"A 6502 machine using custom [[Large Scale Integration|LSI]]" and a simpler motherboard—it said that Diana "was ready for release months ago" but decided to improve the design to better compete with the [[Xerox 820]]. "Now it appears that when Diana is ready for release, it will offer features and a price that will make the Apple II uncompetitive", the magazine wrote.<ref name="freiberger19810914">{{Cite news |url=https://books.google.com/books?id=Mj0EAAAAMBAJ&pg=PA1 |title=Apple Develops New Computers |last=Freiberger |first=Paul |date=1981-09-14 |work=InfoWorld |volume=3 |number=18 |location=United States |publisher=IDG |issn=0199-6649 |oclc=923931674 |access-date=2019-04-08 |pages=1, 14 |archive-date=March 10, 2023 |archive-url=https://web.archive.org/web/20230310064440/https://books.google.com/books?id=Mj0EAAAAMBAJ&pg=PA1 |url-status=live }}</ref> "Apple's plans to phase out the Apple II have also been delayed by complications in the design of the Apple III", the article also said.{{r|freiberger19810914}} ''[[BYTE]]'' reported in October 1982 a rumor that the next Apple II would be called the IIe.<ref name="libes198210">{{Cite magazine |last=Libes |first=Sol |date=October 1982 |title=Bytelines |url=https://archive.org/details/byte-magazine-1982-10/page/n452/mode/1up?view=theater |access-date=2024-12-30 |magazine=BYTE |pages=455–458}}</ref> After the Apple III sold poorly, management decided in 1981 that the further continuation of the Apple II was in the company's best interest. After {{frac|3|1|2}} years of the Apple II Plus, essentially at a standstill, came the introduction of a new Apple II model — the Apple IIe (codenamed "Diana" and "Super II"). The Apple IIe was released in January 1983, the successor to the [[Apple II Plus]]. The Apple IIe was the first Apple computer with a custom [[Application-specific integrated circuit|ASIC]] chip, which reduced much of the old discrete IC-based circuitry to a single chip. This change resulted in reducing the cost and size of the motherboard. Some of the hardware features of the Apple III (e.g. bank-switched memory) were borrowed in the design of the Apple IIe, and some from incorporating the Apple II Plus Language card. The culmination of these changes led to increased sales and greater market share of home, education, and small business use.
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