Editing Apple Inc. (section)

=== 1990–1997: Decline and restructuring ===
[[File:Apple macintosh lcII.jpg|thumb|Macintosh [[LC II]]]]
The company pivoted strategy and, in October 1990, introduced three lower-cost models: the [[Macintosh Classic]], the [[Macintosh LC]], and the [[Macintosh IIsi]], all of which generated significant sales due to pent-up demand.{{Sfn|Linzmayer|2004|page=128}} In 1991, Apple introduced the hugely successful [[PowerBook 100 series|PowerBook]] with a design that set the current shape for almost all modern laptops. The same year, Apple introduced [[System 7]], a major upgrade to the Macintosh operating system, adding color to the interface and introducing new networking capabilities.

The success of the lower-cost Macs and the PowerBook brought increasing revenue.<ref name="lemsculley">{{Cite web |last=Hormby |first=Thomas |date=February 22, 2006 |title=Growing Apple with the Macintosh: The Sculley years |url=http://lowendmac.com/orchard/06/john-sculley-years-apple.html |access-date=March 2, 2007 |website=[[Low End Mac]] |archive-date=March 25, 2014 |archive-url=https://web.archive.org/web/20140325231124/http://lowendmac.com/orchard/06/john-sculley-years-apple.html |url-status=live}}</ref> For some time, Apple was doing very well, introducing fresh new products at increasing profits. The magazine ''[[MacAddict]]'' named the period between 1989 and 1991 as the "first golden age" of the Macintosh.<ref>{{Cite magazine |date=January 2004 |title=MacAddict |url=https://archive.org/stream/MacAddict-089-200401/MacAddict-089-200401-BobKiwi-v1_djvu.txt |magazine=[[MacAddict]] |issue=89 |access-date=April 1, 2017}}</ref>[[File:Apple PenLite prototype, 1992.jpg|thumb|The [[PenLite]] is Apple's first tablet computer prototype, created in 1992 to bring the Mac OS to a tablet. It was canceled in favor of the [[Newton (platform)|Newton]].<ref>{{Cite web |title=Exclusive: New pics of Apple's unreleased tablet prototype from 1992 – and the Mac that flew on the Space Shuttle |url=http://www.stuff.tv/news/exclusive-new-pics-apples-unreleased-tablet-prototype-1992-and-mac-flew-space-shuttle |access-date=April 14, 2016 |publisher=stuff.tv |archive-date=March 31, 2019 |archive-url=https://web.archive.org/web/20190331081051/https://www.stuff.tv/news/exclusive-new-pics-apples-unreleased-tablet-prototype-1992-and-mac-flew-space-shuttle |url-status=live}}</ref>]]
The success of lower-cost consumer Macs, especially the LC, cannibalized higher-priced machines. To address this, management introduced several new brands, selling largely identical machines at different price points, for different markets: the high-end [[Macintosh Quadra|Quadra]] series, the mid-range [[Macintosh Centris|Centris]] series, and the consumer-marketed [[Performa]] series. This led to significant consumer confusion between so many models.<ref name="vawperforma">{{Cite web |title=Macintosh Performa |url=http://www.vectronicsappleworld.com/profiles/performa.html |archive-url=https://web.archive.org/web/20130419164519/http://www.vectronicsappleworld.com/profiles/performa.html |archive-date=April 19, 2013 |access-date=November 29, 2010 |publisher=Vectronics Apple World}}</ref>

In 1993, the [[Apple II]] series was discontinued. It was expensive to produce, and the company decided it was still absorbing sales from lower-cost Macintosh models. After the launch of the LC, Apple encouraged developers to create applications for Macintosh rather than Apple II, and authorized salespersons to redirect consumers from Apple II and toward Macintosh.<ref>{{Cite web |date=July 10, 2002 |title=The Apple IIGS, Cont |url=http://apple2history.org/history/ah11.html |archive-url=https://web.archive.org/web/20080912044443/http://apple2history.org/history/ah11.html |archive-date=September 12, 2008 |access-date=July 8, 2017 |website=Apple II History}}</ref> The [[Apple IIe]] was discontinued in 1993.<ref>{{Cite web |last=Edwards |first=Benj |date=January 18, 2013 |title=30 years of the Apple Lisa and the Apple IIe |url=https://www.macworld.com/article/2025408/30-years-of-the-apple-lisa-and-the-apple-iie.html |access-date=July 8, 2017 |website=[[Macworld]] |publisher=[[International Data Group]] |archive-date=August 19, 2020 |archive-url=https://web.archive.org/web/20200819175606/https://www.macworld.com/article/2025408/30-years-of-the-apple-lisa-and-the-apple-iie.html |url-status=live}}</ref>

Apple experimented with several other unsuccessful consumer targeted products during the 1990s, including [[QuickTake]] [[digital camera]]s, [[PowerCD]] portable CD audio players, [[AppleDesign Powered Speakers|speakers]], the [[Apple Pippin|Pippin]] video game console, the [[eWorld]] online service, and [[Apple Interactive Television Box]]. Enormous resources were invested in the problematic [[Newton (platform)|Newton]] tablet division, based on John Sculley's unrealistic market forecasts.<ref>{{Cite web |last=Huddleston |first=Tom Jr. |date=January 12, 2021 |title=From Atari's 'Pong' console to the first CD player and Xbox: 10 of the biggest tech products to debut at Las Vegas' famous Consumer Electronics Show |url=https://www.cnbc.com/2021/01/12/biggest-tech-products-to-debut-at-ces-over-the-years.html |url-status=live |archive-url=https://web.archive.org/web/20210218151001/https://www.cnbc.com/2021/01/12/biggest-tech-products-to-debut-at-ces-over-the-years.html |archive-date=February 18, 2021 |access-date=May 10, 2021 |website=[[CNBC]] |language=en-US}}</ref>

Throughout this period, Microsoft continued to gain market share with [[Windows]] by focusing on delivering software to inexpensive personal computers, while Apple was delivering a richly engineered but expensive experience.<ref>{{Cite web |title=1990–1995: Why the World Went Windows |url=http://www.roughlydrafted.com/RD/Q4.06/3EC02E78-FD4D-4CDF-92A0-9C4CBDFAB3D2.html |url-status=dead |archive-url=https://web.archive.org/web/20120104160236/http://www.roughlydrafted.com/RD/Q4.06/3EC02E78-FD4D-4CDF-92A0-9C4CBDFAB3D2.html |archive-date=January 4, 2012 |access-date=August 12, 2008 |website=Roughly Drafted}}</ref> Apple relied on high profit margins and never developed a clear response; it sued Microsoft for making a GUI similar to the [[Apple Lisa|Lisa]] in ''[[Apple Computer, Inc. v. Microsoft Corp.]]''<ref name="lemms">Hormby, Thomas. [http://lowendmac.com/orchard/06/apple-vs-microsoft.html The Apple vs. Microsoft GUI lawsuit] {{Webarchive|url=https://web.archive.org/web/20080304145809/http://lowendmac.com/orchard/06/apple-vs-microsoft.html |date=March 4, 2008 }}, ''[[Low End Mac]]'', August 25, 2006. Retrieved March 2, 2007.</ref> The lawsuit dragged on for years and was finally dismissed. The major product flops and the rapid loss of market share to Windows sullied Apple's reputation, and in 1993 Sculley was replaced as CEO by [[Michael Spindler]].<ref>{{Cite web |title=Michael Spindler: The Peter Principle at Apple |url=http://lowendmac.com/orchard/06/michael-spindler-apple.html |url-status=live |archive-url=https://web.archive.org/web/20080908030156/http://lowendmac.com/orchard//06/michael-spindler-apple.html |archive-date=September 8, 2008 |access-date=August 12, 2008}}</ref>
[[File:PowerMac 6100-66b.JPG|left|thumb|The [[Power Macintosh 6100]], introduced in 1994, was Apple's first new home computer model after the switch to [[PowerPC]] processors.]]
Under Spindler, Apple, [[IBM]], and [[Motorola]] formed the [[AIM alliance]] in 1994 to create a new computing platform (the [[PowerPC Reference Platform]] or PReP), with IBM and Motorola hardware coupled with Apple software. The AIM alliance hoped that PReP's performance and Apple's software would leave the PC far behind and thus counter the dominance of Windows. That year, Apple introduced the [[Power Macintosh]], the first of many computers with Motorola's [[PowerPC]] processor.<ref>{{Cite web |title=Power Macintosh 6100 |url=http://www.apple-history.com/body.php?page=gallery&model=6100&performa=off&sort=date&order=ASC&range= |access-date=August 12, 2008 |archive-date=September 11, 2007 |archive-url=https://web.archive.org/web/20070911010221/http://www.apple-history.com/body.php?page=gallery |url-status=live}}</ref>

In the wake of the alliance, Apple opened up to the idea of allowing Motorola and other companies to build [[Macintosh clone]]s. Over the next two years, 75 distinct Macintosh clone models were introduced. However, by 1996, Apple executives were worried that the clones were cannibalizing sales of its own high-end computers, where profit margins were highest.{{sfn|Linzmayer|2004|pp=[https://books.google.com/books?id=mXnw5tM8QRwC&pg=PA254 254–256]}}

In 1996, Spindler was replaced as CEO by [[Gil Amelio]], who was hired for his reputation as a corporate rehabilitator. Amelio made deep changes, including extensive layoffs and cost-cutting.<ref>Chaffin, Bryan. [http://www.macobserver.com/article/2001/02/06.13.shtml "Former Apple CEO Gil Amelio Lands A New CEO Job | The Mac Observer"] {{Webarchive|url=https://web.archive.org/web/20171128173134/https://www.macobserver.com/article/2001/02/06.13.shtml |date=November 28, 2017 }}, The Mac Observer, February 6, 2001. Retrieved August 15, 2008.</ref>

This period was also marked by numerous failed attempts to modernize the Macintosh operating system (MacOS). The original Macintosh operating system ([[System 1]]) was not built for multitasking (running several applications at once). The company attempted to correct this by introducing [[cooperative multitasking]] in System 5, but still decided it needed a more modern approach.<ref>{{Cite web |title=1990–1995: Hitting the Wall |url=http://www.roughlydrafted.com/RD/Home/B8DA34A3-333B-4204-BDF3-E74608998702.html |url-status=live |archive-url=https://web.archive.org/web/20080924063130/http://www.roughlydrafted.com/RD/Home/B8DA34A3-333B-4204-BDF3-E74608998702.html |archive-date=September 24, 2008 |access-date=August 14, 2008 |website=Roughly Drafted}}</ref> This led to the [[Taligent|Pink]] project in 1988, [[A/UX]] that same year, [[Copland (operating system)|Copland]] in 1994, and evaluated the purchase of [[BeOS]] in 1996. Talks with Be stalled when the CEO, former Apple executive [[Jean-Louis Gassée]], demanded $300&nbsp;million in contrast to Apple's $125&nbsp;million offer.<ref>{{Cite web |last=Tom |first=Hormby |date=August 10, 2013 |title=The Rise and Fall of Apple's Gil Amelio |url=http://lowendmac.com/2013/the-rise-and-fall-of-apples-gil-amelio |access-date=March 28, 2015 |website=Low End Mac |publisher=Cobweb Publishing, Inc. |archive-date=March 29, 2015 |archive-url=https://web.archive.org/web/20150329041618/http://lowendmac.com/2013/the-rise-and-fall-of-apples-gil-amelio/ |url-status=live}}</ref> Only weeks away from [[bankruptcy]],<ref>{{Cite web |last=Thompson |first=Ben |author-link=Ben Thompson (writer) |date=February 5, 2018 |title=Apple's Middle Age |url=https://stratechery.com/2018/apples-middle-age |access-date=March 31, 2019 |website=[[Stratechery]] |archive-date=March 31, 2019 |archive-url=https://web.archive.org/web/20190331171319/https://stratechery.com/2018/apples-middle-age/ |url-status=live}}</ref> Apple's board preferred [[NeXTSTEP]] and purchased [[NeXT]] in late 1996 for $400&nbsp;million, retaining [[Steve Jobs]].<ref>{{Cite web |last=Kawamoto |first=Dawn |date=December 20, 1996 |title=Apple acquires Next, Jobs |url=https://www.cnet.com/tech/tech-industry/apple-acquires-next-jobs/ |access-date=October 26, 2022 |website=CNET |language=en |archive-date=June 6, 2022 |archive-url=https://web.archive.org/web/20220606093742/https://www.cnet.com/tech/tech-industry/apple-acquires-next-jobs/ |url-status=live}}</ref>