April 21, 1995: Rumors swirl that Japanese camera company Canon might take over Apple in either a partial or complete acquisition.
Speculation grows about a possible deal after Apple reveals its latest earnings, which show big improvement but still fall far short of Wall Street’s expectations.
March 28, 1996: In a dire message to Wall Street, Apple warns that it will report a $700 million after-tax loss for its most recent quarter.
Apple’s biggest quarterly loss in history, the shocking news reveals a company in far more financial trouble than previously thought. More than half the loss comes from $1 billion of unsold products.
February 2, 1996: Apple reveals that turnaround artist Gil Amelio will take over from Michael “The Diesel” Spindler as CEO of the struggling company.
With disappointing Mac sales, the disastrous “clone Mac” strategy and a failed Sun Microsystems merger to his name, Spindler is asked to resign by the Apple board. Then Cupertino enlists supposed corporate miracle worker Amelio for the job.
Unfortunately, he turns out to be no better than Spindler.
January 7, 1997: Apple co-founder Steve Wozniak returns to the company to participate in an advisory role, reuniting with Steve Jobs onstage at the Macworld Expo in San Francisco.
Woz’s homecoming is revealed at the end of the Macworld conference. With Jobs’ recent return to Apple (thanks to the NeXT acquisition), it marks the first time the two co-founders have been at Apple together since 1983. It’s a great way to celebrate Apple’s 20th anniversary. Unfortunately, the reunion won’t last.
December 20, 1996: Apple Computer buys NeXT, the company Steve Jobs founded after leaving Cupertino a decade earlier.
The deal costs Apple $429 million. It’s a massive price to pay for the failing NeXT, a computer company that already saw its hardware division crash and burn. But the price is worth it when you consider what Apple gets as part of the deal: the return of Steve Jobs.
November 25, 1996: A midlevel manager at NeXT contacts Apple about the possibility of Cupertino licensing NeXT’s OpenStep operating system. The phone call sows the seeds of Mac OS X and Apple’s rejuvenation.
The talk in question takes place between NeXT’s Garrett L. Rice and Ellen Hancock, Apple’s chief technology officer. While just the first formal step in a long process, it ultimately leads to Apple buying NeXT, the creation of Mac OS X, and Steve Jobs returning to the company he co-founded.
November 9, 1994: Gil Amelio, a businessman with a reputation as a talented turnaround artist, joins Apple’s board.
Coming off his impressive revitalization of two other tech companies, National Semiconductor and Rockwell International, Amelio’s appointment at Apple sparks widespread celebration. Many Apple watchers think his arrival means the company’s dark days are over. Sadly, Amelio’s turnaround tricks won’t work in Cupertino.
September 4, 1997: The writing is on the wall for Apple’s Newton product line as Steve Jobs tells executives at the recently spun-off company not to bother moving into their new offices. The Apple CEO’s flip-flop on the Newton spinoff takes employees by surprise.
It’s quite the turnaround for the Newton division. Only months earlier, Apple portrayed it as large (and successful) enough to become its own company.
July 8, 1997: Steve Jobs begins his path to becoming chief executive officer of Apple, after former CEO Gil Amelio departs the company following a massive quarterly loss. Also leaving Apple is Ellen Hancock, executive vice president of technology.
To run Apple’s day-to-day operations, CFO Fred Anderson takes over until a new CEO can be found. Jobs, meanwhile, moves from strategic adviser to take “a more expanded role with Apple’s board and executive management team,” according to CNN Money.
Cupertino’s turnaround has started!
July 6, 1997: Following a massive quarterly loss for Apple, board member Edgar S. Woolard Jr. calls CEO Gil Amelio and informs him that he needs to step down. “You’ve done a lot to help the company, but the sales haven’t rebounded,” Woolard says.
Steve Jobs, who recently returned to the company he co-founded, denies being responsible for Amelio’s ouster. However, the move results in Jobs becoming Apple CEO for the first time. Now it’s time for a real turnaround!
June 27, 1997: The last day of another disappointing quarter brings an end to CEO Gil Amelio’s 500 days running Apple.
The $56 million quarterly loss contributes to an overall deficit of $1.6 billion during Amelio’s reign. The slump effectively wipes out every cent of profit Cupertino earned since fiscal 1991. After losing money for six out of the last seven quarters, Apple seems past the point of no return.
June 4, 1997: Mac clone-maker Power Computing hits its high point — but it’s also the beginning of the end.
The company’s top exec reaches an agreement with Apple CEO Gil Amelio concerning the forthcoming Mac OS 8. The deal allows the company to start making moves toward an IPO as the fastest-growing PC company of the decade. Things don’t turn out very well, though.
April 29, 1997: Steve Jobs’ friend Larry Ellison, CEO of Oracle, calls off his bid to take over Apple.
Ellison’s plan is to reinstall Jobs, who is then just an adviser to Apple CEO Gil Amelio, as the company’s chief executive. He also wants to take Apple private again.
27 June 1997 marked the last day in the worst financial quarter in Apple history, in which Apple lost $56 million — effectively bringing an end to then-CEO Gil Amelio’s 500 days running the company.
The $56 million loss contributed to an overall Apple loss of $1.6 billion during Amelio’s reign: effectively wiping out every cent of profit Cupertino had earned since fiscal 1991. In other words — ouch!