Apple: 50 years of ascent, from garage to technology titan

At the beginning of 1976, in California, Steve Wozniak had just finalized the design of a computer motherboard that he intended to share with other enthusiasts in a local club. His friend Steve Jobs also saw a commercial opportunity: to manufacture and sell these boards. That’s how Apple was born.

The company is celebrating its 50th anniversary this Wednesday. Its rise has shaped both the technology industry and popular culture by first democratizing desktop computers, then smartphones, while popularizing mobile applications and demonstrating the effectiveness of a vertically integrated approach between hardware and software.

However, the maker of the iPhone is now under pressure to prove that it can remain a top technological power in the age of artificial intelligence, as rivals Alphabet and Microsoft invest tens of billions of dollars to take the lead.

Its stock is showing the second worst performance among the “Big Seven” since the launch of ChatGPT by OpenAI in November 2022.

Despite integrating machine learning functions into its chips since 2017, analysts and investors believe that delays in deploying new features, including a redesigned version of Siri, suggest that Apple did not anticipate how consumers would use AI.

Competitors like OpenAI also plan to launch AI-specific devices, aiming to disrupt the historical dominance of smartphones.

Nevertheless, Apple devices remain highly popular.

The strong demand for the latest iPhone 17 range boosted results for the quarter ending in December, while the $599 MacBook Neo—its cheapest laptop to date—had a successful launch.

“The company has lasted fifty years without anyone truly challenging its integrated economic model; the fate of the next fifty years could depend on the real attractiveness of AI—and on OpenAI’s ability to surpass Apple on its own ground,” said independent technology analyst Ben Thompson on Stratechery.com on Tuesday.

Here are five graphs illustrating Apple’s ascent:

THE RAPID GROWTH OF APPLE’S STOCK
The company went public in 1980, but its shares saw a spectacular increase after the turn of the century, with the iPhone becoming a global bestseller as its product range expanded. Its internally developed “M-series” chips also boosted Mac sales, supporting the stock.

ANNUAL REVENUE NEARING HALF A TRILLION DOLLARS
Apple, one of the world’s most valuable companies, is also among the most significant in terms of revenue. Thanks to strong demand for its latest iPhones, it is expected to achieve a revenue of $465 billion for the current fiscal year ending in September.

SERVICES, THE ENGINE OF APPLE’S GROWTH
Apple’s services business, which includes the App Store, Apple Music, and its streaming service, has become a major growth driver. Its ever-expanding installed base of devices generates recurring revenue through subscriptions and app sales commissions. This has also led to high-profile conflicts with players like Epic Games, which tried to challenge its control over in-app payments.

CHINA AND EMERGING MARKETS INCREASE THEIR SHARE OF REVENUE
As the smartphone market saturates in the United States, China and emerging markets like India play an increasingly important role in revenue dynamics.

THE PRODUCTS THAT HAVE DEFINED APPLE
The motherboard that Wozniak shared with Jobs in 1976 became the Apple I, the first in a line of products that have marked the company’s journey from a garage startup to a consumer electronics giant. Over the years, Apple has had numerous successes like the iPod, and its range now includes smartwatches, wireless earbuds, and the Vision Pro mixed reality headset.