January 9, 2007, San Francisco, Macworld Conference.
A man in a black turtleneck, blue jeans, and gray sneakers walked onto the stage.
He stood before a giant screen, facing thousands of audience members.
“Today,” he said, “Apple is going to reinvent the phone.”
He took out a device with only one button, the entire front being a screen.
“This is an iPod, a phone, and an internet communicator—three devices in one.”
He slid his finger, and the screen moved.
The audience went wild.
This man was Steve Jobs. This device was the iPhone.
On this day, the phone was redefined.
Jobs’s Return #
Let’s go back to 1997.
Apple was in crisis. The company was losing money, its product line was chaotic, and its stock price was at historic lows. The board decided: bring Jobs back.
After returning, Jobs did several key things:
First, he slashed the product line. Apple had dozens of products at the time; Jobs cut them down to just four: desktop and laptop, professional and consumer versions.
Second, he changed the image. He launched the “Think Different” advertising campaign, positioning Apple as an innovative, rebellious, world-changing brand.
Third, he introduced the iMac. In 1998, Apple released the iMac—an all-in-one computer with the display and computer in one unit, with a semi-transparent blue plastic case. It looked like a product from the future.
The iMac was a huge success. Apple became profitable again, and the stock price started rising.
iPod: The Music Revolution #
In 2001, Jobs noticed a problem: people listened to music in terrible ways.
CD players were too big and could only hold one album. MP3 players had small capacity, complicated operation, and terrible user experience.
Jobs thought: Could we make a player that could hold all your music?
In October 2001, Apple released the iPod.
It was only the size of a deck of cards, with a 5GB hard drive that could hold 1,000 songs. Operated with a scroll wheel, it could be controlled with one hand.
More importantly, the iPod paired with iTunes software, making music management simple. Import CDs into iTunes, sync to iPod—the entire process was smooth and natural.
The iPod became the most successful music player in history. By 2007, iPod sales exceeded 100 million units.
The iPod changed the music industry. Singles replaced albums, digital downloads replaced CDs. Apple became the world’s largest music retailer.
iPhone: Reinventing the Phone #
The iPod’s success got Jobs thinking about the next product.
He noticed: almost everyone carried a phone. But the phone experience was terrible—keyboards too small, screens too small, interfaces complicated.
Jobs thought: Could we make a better phone?
Apple had two internal projects: one developing a tablet computer, one developing a phone. Jobs paused the tablet project and applied the technology to the phone.
This technology was multi-touch—screens that could recognize multiple touch points, supporting pinch-to-zoom, swipe-to-scroll gestures.
In January 2007, the iPhone was released. It had no physical keyboard; the entire front was a 3.5-inch touch screen.
Media questioned: How do you type without a keyboard? Will the battery last? Who would spend $499 on a phone?
But users voted with their wallets. The iPhone sold 1 million units in 74 days.
The iPhone redefined the phone: touch screens became standard, app stores became standard, phones became the most important computing device.
App Store: The Power of Platforms #
When the iPhone launched, Jobs opposed third-party apps. He worried apps would ruin the iPhone experience.
But developers strongly demanded it. In 2008, Apple launched the App Store—an app distribution platform.
Developers could upload apps; users could download and purchase them. Apple took a 30% cut.
The App Store created an entirely new business model:
- Developers could reach hundreds of millions of users without handling payments and distribution themselves
- Users could easily discover and install apps
- Apple profited from every transaction
The App Store became the most successful software platform in history. By 2024, the App Store had over 2 million apps and over 100 billion cumulative downloads.
iPad: The Tablet Computer #
In 2010, Jobs released the iPad.
Tablet computers weren’t a new concept. Microsoft had promoted tablet computers as early as 2001, but they failed. Microsoft’s tablets were “laptops without keyboards”—heavy, expensive, short battery life, terrible experience.
Jobs redefined the tablet computer: The iPad was a “giant iPod touch.”
It was light (680 grams), thin (13mm), had long battery life (10 hours), and simple operation (touch interface).
Media questioned again: This is just a big iPhone, it can’t make calls, what’s the use?
But users voted with their wallets again. The iPad sold 3 million units in 80 days.
The iPad created the tablet computer market, changing how people read, play games, learn, and work.
Jobs’s Method #
Why was Jobs successful again and again?
First, focus on user experience. Jobs didn’t care about technical specs; he cared about user experience. The iPod wasn’t the highest-capacity player, but it was the easiest to operate. The iPhone wasn’t the highest-spec phone, but it had the best experience.
Second, integrate hardware and software. Apple made both hardware and software, optimizing the entire experience. Competitors who made hardware couldn’t do software; those who made software couldn’t do hardware.
Third, less is more. Jobs cut product lines, cut features, keeping only the most important. The iPhone had only one button; the iPad had no USB port.
Fourth, the reality distortion field. Jobs had an ability to make the impossible possible. Engineers said “this can’t be done,” Jobs said “you must do it”—and they actually did it.
Jobs’s Departure #
On October 5, 2011, Jobs died of pancreatic cancer at age 56.
The world lost someone who changed everything.
Jobs’s life changed multiple industries:
- Personal computers (Apple II, Mac)
- Animated films (Pixar)
- Music (iPod, iTunes)
- Phones (iPhone)
- Tablet computers (iPad)
- App distribution (App Store)
At Stanford University’s graduation ceremony, he said: “Stay hungry, stay foolish.”
After Apple #
After Jobs died, Tim Cook took over as CEO.
Cook didn’t have Jobs’s vision and charisma, but he was an excellent operator. Under his leadership, Apple became the world’s most valuable company.
Apple introduced Apple Watch, AirPods, Apple Silicon, and other new products. iPhone sales continued to grow, and services (iCloud, Apple Music, Apple TV+) became new growth drivers.
But many feel Apple lost the innovative spirit of the Jobs era.
Next Step: The Microsoft Empire #
While Jobs was creating miracles at Apple, another man was building a software empire in Seattle.
He was Bill Gates. He founded Microsoft and became the world’s richest man.
Tomorrow, we’ll discuss Bill Gates and Microsoft.
Today’s Key Concepts #
Multi-touch Touchscreen technology that can recognize multiple touch points simultaneously. Supports pinch-to-zoom, swipe-to-scroll, and multi-finger gestures. The iPhone was the first mass-market multi-touch phone, changing human-computer interaction.
App Store An app distribution platform launched by Apple in 2008. Developers upload apps; users download and purchase them; Apple takes a commission. The App Store created an entirely new business model and became the standard distribution channel for mobile apps.
Platform An infrastructure that lets others build products and services on top of it. iOS is a platform where developers can build apps. A platform’s value comes from network effects: more users attract more developers; more developers attract more users.
Discussion Questions #
- Jobs said: “Consumers don’t know what they want until you show it to them.” Do you agree?
- The iPhone redefined the phone, the iPad redefined the tablet. What do you think the next product to be redefined will be?
Tomorrow’s Preview: Bill Gates and Microsoft—the rise of the software empire, and Windows that changed the world.