Editing John Sculley (section)

=== 1983–93: Apple Computer, Inc. ===
{{blockquote | I think of you just like Woz and Markkula. You're like one of the founders of the company. They founded the company, but you and I are founding the future.|source=Steve Jobs, to John Sculley, at the Macintosh introduction rehearsal in 1984<ref name="Infinite Loop">{{cite book|author-link=Michael S. Malone|first=Michael S.|last=Malone|year=1999 |title=Infinite Loop|publisher=Currency/Doubleday |isbn=978-0-385-48684-2|oclc=971131326|url=https://archive.org/details/infiniteloophoww00malo |url-access=registration}}</ref>{{rp|283}}}}
Apple lured Sculley away from Pepsi in order to apply his marketing skills to the personal computer market.<ref name=":1">{{Cite web |last=Dormehl |first=Luke |date=June 18, 2022 |title=Today in Apple history: John Sculley steps down as Apple CEO |url=https://www.cultofmac.com/555597/today-in-apple-history-john-sculley-steps-down-as-apple-ceo/ |access-date=June 22, 2022 |website=www.cultofmac.com}}</ref> [[Steve Jobs]] successfully sealed the deal after he made his pitch to Sculley: "Do you want to sell sugared water for the rest of your life? Or do you want to come with me and change the world?"<ref>{{cite web|url=https://www.pbs.org/nerds/part3.html |title=Triumph of the Nerds: The Transcripts, Part III |publisher=Pbs.org |access-date=April 14, 2014}}</ref> Apple's president, [[Mike Markkula]], wanted to retire and believed that Jobs, who wished to be the company's president, lacked the discipline and temperament needed to run Apple on a daily basis. Sculley, with his solid business background and recent success, would give Apple an image of greater reliability and stability. In an interview with Authority Magazine, Sculley said that Jobs came to him and said "How did you do that? You had no money to speak of at Pepsi. “How did you pass Coca Cola?” And I responded, “Well, we call it experience marketing.” The focus was on selling the experience, not the product.{{citation needed|date=April 2024}}

When Sculley started at Apple, he got a $1 million signing bonus, $1 million in annual pay and options on 350,000  Apple shares.<ref name=":0" /> From the time Jobs and Sculley first met in 1982 until 1985, they had what they both acknowledged as an amazing partnership.<ref>{{cite book |last=Mansfield |first=Edwin |author-link=Edwin Mansfield |date=1993 |title=Study Guide and Casebook for Managerial Economics |url=https://books.google.com/books?id=D2ZINsfVSBgC&pg=PA62 |publisher=[[W. W. Norton & Company]] |page=62 |isbn=9780393962864}}</ref> Sculley used his marketing experience to help keep the aging [[Apple II]], generating much-needed cash, and helped Jobs launch the Mac with the [[1984 (advertisement)#Reception and legacy|most admired consumer marketing campaign]] of its time. Once Jobs took over the [[Macintosh 128K|Macintosh]] project from Apple co-founder [[Steve Wozniak]] and early Apple employee [[Jef Raskin]], he became the executive product manager and made all the product decisions.<ref name=TheVerge>{{cite web|title=Steve Wozniak on Newton, Tesla, and why the original Macintosh was a 'lousy' product|date=June 27, 2013|url=https://www.theverge.com/2013/6/27/4468314/steve-wozniak-on-how-the-newton-changed-his-life|access-date=June 25, 2018|archive-url=https://web.archive.org/web/20160312014832/http://www.theverge.com/2013/6/27/4468314/steve-wozniak-on-how-the-newton-changed-his-life|archive-date=March 12, 2016}}</ref>

The [[Apple Lisa|Lisa]] computer, an innovative model designed by a team initially led by Jobs, became available in January 1983, and had disastrous sales. When Jobs's Macintosh, the first of a new series of models with a pioneering black-and-white [[graphical user interface]], was shipped to stores in January 1984, Sculley raised the initial price to $2,495 from the originally planned $1,995, allocating the additional money to hypothetically higher [[profit margin]]s and to expensive advertising campaigns.<ref>{{cite web |url=http://folklore.org/StoryView.py?project=Macintosh&story=Price_Fight.txt&sortOrder=Sort%20by%20Date&detail=medium&search=John%20Sculley |title=Andy Hertzfeld, Article: ''Price Fight'' (October 1983) |publisher=Folklore.org |access-date=April 14, 2014 |url-status=dead |archive-url=https://web.archive.org/web/20140415124834/http://www.folklore.org/StoryView.py?project=Macintosh&story=Price_Fight.txt&sortOrder=Sort%20by%20Date&detail=medium&search=John%20Sculley |archive-date=April 15, 2014 }}</ref> Macintosh sold well, and received excellent reviews, but it did not eliminate the [[IBM Personal Computer|IBM PC]].

At the peak of the Macintosh success, Apple made an attempt to move unsold inventory of Lisa computers by renaming it to "Macintosh XL" and positioning it as a top-of-the-line pro Macintosh model. At this point, a power struggle between Jobs and Sculley was becoming obvious. Jobs became "non-linear": he kept meetings running past midnight, sent out lengthy faxes, then called new meetings at 7:00 am.<ref name="lemsculley"/> Sculley had little control over the Macintosh division where Jobs was the general manager.<ref name="robbeloth198510_11">{{cite news | url=https://archive.org/stream/II_Computing_Vol_1_No_1_Oct_Nov_85_Premiere#page/n7/mode/2up | title=Whither Apple? | work=II Computing | date=Oct–Nov 1985 | access-date=January 28, 2015 | author=Robbeloth, DeWitt | pages=8}}</ref>

The Apple board of directors instructed Sculley to "contain" Jobs and limit his ability to launch expensive forays into untested products. Rather than submit to Sculley's direction, Jobs attempted to oust him from his leadership role at Apple. Sculley found out about Jobs's plans and called a board meeting at which Apple's board of directors sided with Sculley and removed Jobs from his managerial duties. Jobs resigned from Apple and founded [[NeXT|NeXT Inc.]] the same year.<ref name="lemsculley"/><ref>{{cite news| last = Spector| first = G| title = Apple's Jobs Starts New Firm, Targets Education Market| work = [[PC Week]]| page = 109| date = September 24, 1985}}</ref> Sculley said in 2015 that Jobs never forgave him and their friendship was never repaired.<ref>{{cite web|url=https://www.businessinsider.com/john-sculley-admits-steve-jobs-never-forgave-him-before-jobs-died-2015-5|url-status=live|title=Former Apple CEO John Sculley admits Steve Jobs never forgave him, and he never repaired their friendship, before Jobs died|work=Business Insider|date=May 27, 2015|access-date=March 12, 2017|first=Jim|last=Edwards|archive-url=https://web.archive.org/web/20171001075153/https://www.businessinsider.com.au/john-sculley-admits-steve-jobs-never-forgave-him-before-jobs-died-2015-5|archive-date=October 1, 2017}}</ref>

After Jobs left, Sculley was named president<ref name=":0" /> and the company experienced a turnaround in 1986; one journalist wrote "since Sculley joined the company … many things have changed", and that his "strategy has worked".<ref name="goyens19860419">{{cite news | url=https://news.google.com/newspapers?id=S4s0AAAAIBAJ&pg=919%2C5720872 | title=Sculley's strategy seems to be doing the job for Apple | work=Montreal Gazette | date=April 19, 1986 | access-date=January 3, 2015 | author=Goyens, Chris | pages=J-9}}</ref> Wozniak credited the Macintosh's initial success to Sculley, saying that he "worked to build a Macintosh market when the Apple II went away".<ref name=TheVerge/> Under the direction of Sculley, who had learned several painful lessons after introducing the bulky [[Macintosh Portable]] in 1989, Apple introduced the [[PowerBook]] in 1991.<ref name="lemsculley"/>

In 1991, Apple introduced [[System 7]], a major upgrade to the operating system, which added color to the interface and introduced new networking capabilities. It remained the architectural basis for Mac OS until 2001, when the [[classic Mac OS]] was replaced by [[Mac OS X]]. The success of the PowerBook and other products brought increasing revenue. For some time, it appeared that Apple could do no wrong, introducing fresh new products and generating increasing profits in the process. The magazine ''[[MacLife|MacAddict]]'' named the period between 1989 and 1991 as the "first golden age" of the Macintosh.<ref name="lemsculley"/> Under the leadership of Sculley, Apple's sales multiplied from $982 million in 1983 to $7.9 billion in 1993.<ref name=":0" />

[[Microsoft]] threatened to discontinue [[Microsoft Office]] for the Macintosh if Apple did not license parts of the Macintosh graphical user interface to use in the [[Microsoft Windows|Windows]] operating system. Under pressure, Sculley agreed, a decision which later affected the ''[[Apple v. Microsoft]]'' lawsuit. About that time, Sculley coined the term [[personal digital assistant]] (PDA) referring to the [[Apple Newton]], one of the world's first PDAs, a product that Sculley oversaw and launched in 1993.<ref>[http://www.ciber.com/ciber/30years/more.cfm?dataid=174&id=90 Ciber, Technology Milestone: Apple Newton 1993] {{webarchive |url=https://web.archive.org/web/20050206160039/http://www.ciber.com/ciber/30years/more.cfm?dataid=174&id=90 |date=February 6, 2005}}</ref><ref name=":1" />

In 1987, Sculley made several predictions in a ''[[Playboy]]'' interview: He predicted that the [[Soviet Union]] would land a man on [[Mars]] within the next 20 years and he claimed that optical storage media such as the [[CD-ROM]] would revolutionize the use of personal computers.<ref>{{citation|url= |title=Playboy Interview &#124; Goodman, Danny|date=September 1, 1987 |access-date=}}</ref> Some of his ideas for the [[Knowledge Navigator]] were eventually fulfilled by the Internet and the [[World Wide Web]] during the 1990s and others by Apple itself with the introduction of [[Siri]].<ref>{{Cite web |title=Siri Acquisition Brings Apple Much Closer to the 'Knowledge Navigator' Concept |url=https://www.macrumors.com/2010/04/28/siri-acquisition-brings-apple-much-closer-to-the-knowledge-navigator-concept/ |access-date=2022-11-04 |website=MacRumors |date=April 28, 2010 |language=en}}</ref>

On December 5, 1992, Sculley, as chairman, CEO, and CTO of Apple Computer, Inc., gave a seminal speech regarding the future of the Internet, titled "The Dawn of a $3.5 Trillion Communications Mega-Industry: Information Access, Processing and Distribution in a Digital World." This was the keynote address to a packed house at the Harvard Business School's Burden Auditorium, as part of the inaugural student-run Harvard/MIT Communications 2000 Symposium, now known as the Harvard Business School Tech Club's annual [[Cyberposium]].

In the early 1990s, Sculley led Apple to [[porting|port]] its operating system to run on a new microprocessor, the [[PowerPC]]. Sculley later acknowledged such an act was his greatest mistake, indicating that he should instead have targeted the dominant [[Intel]] architecture.<ref>{{cite web|url=http://macworld.co.uk/news/index.cfm?newsid=7045 |title=MacWorld, ''John Sculley Admits Intel Blunder'' (2003) |access-date=April 14, 2014 |url-status=dead |archive-url=https://web.archive.org/web/20101022230413/http://www.macworld.co.uk/news/index.cfm?newsid=7045 |archive-date=October 22, 2010}}</ref> After a bad first quarter in 1993, amid a personal-computer price war and internal tension over the company's direction, Apple's board forced Sculley out.<ref>{{cite news|url=https://www.bbc.co.uk/news/technology-16538745|title=Ex-Apple boss Sculley sets record straight on Jobs|work=BBC News|date=March 8, 2012|access-date=March 26, 2013}}</ref> He resigned on October 15, 1993<ref>{{Cite web|title=Apple's John Sculley Resigns Chairmanship for 'New Challenges' |url=https://www.chicagotribune.com/news/ct-xpm-1993-10-15-9310160132-story.html|access-date=2023-02-08|website=Chicago Tribune|date=October 15, 1993 }}</ref>  and was replaced by [[Germans|German]]-born [[Michael Spindler]], who had been Chief Operating Officer. Spindler was ousted three years later and replaced with [[Gil Amelio]].<ref>{{Cite web|date=1996-02-03|title=Spindler 'finally ousted' from Apple|url=https://www.independent.co.uk/news/business/spindler-finally-ousted-from-apple-1317052.html|access-date=2023-02-08|website=The Independent|language=en}}</ref> In 1997, amidst poor financial performance Apple would acquire Steve Jobs's [[NeXT|NeXT Software]]; Jobs would oust Amelio and reinstate himself as chief executive.<ref>{{Cite news |last=Markoff |first=John |date=1996-12-23 |title=Why Apple Sees Next as a Match Made in Heaven |url=https://www.nytimes.com/1996/12/23/business/why-apple-sees-next-as-a-match-made-in-heaven.html |access-date=2023-11-05 |work=The New York Times |language=en-US |issn=0362-4331}}</ref>