Apple’s Outsourcing Beginnings
BlogApple, Inc., a leading technology company, has been in the industry for more than 40 years. The company was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 in Cupertino, California.
In its early days, Apple relied heavily on outsourcing to help it develop and produce its products.
One of Apple’s earliest outsourcing relationships was with the Japanese electronics company, Sony. Sony provided Apple with the components needed to build its first computer, the Apple I, in 1976. The Apple I was a simple machine that used an Altair 8800 microprocessor and cassette tape for storage.
Another early outsourcing relationship was with the American electronics company, Hewlett-Packard. HP provided Apple with the components needed to build its second computer, the Apple II, in 1977. The Apple II was a much more advanced machine than the Apple I and featured a color display and built-in BASIC programming language.
In addition to outsourcing for hardware components, Apple also relied on outsourcing for software development. In the early days, Apple hired contractors and freelancers to write software for its products. One of Apple’s earliest software contracts was with a company called Mosaic Computer Systems. Mosaic provided Apple with the software needed to run its first version of the Macintosh operating system in 1984.
As Apple grew, it began to develop its own in-house capabilities for hardware and software development. In the mid-1980s, Apple created its own computer division and hired a team of engineers to design and build its own microprocessors. This allowed Apple to produce more advanced computers at lower prices than its competitors.
In addition, Apple also began to develop its own software in-house. The company hired a team of programmers to write the software for its Macintosh operating system, which was known for its graphical user interface and ease of use. Apple’s in-house software development capabilities allowed it to differentiate itself from its competitors and establish the Macintosh as a popular personal computer platform.
Today, while Apple still relies on outsourcing for certain components and services, the company has developed a strong in-house capability for hardware and software development. Apple’s success is a testament to the importance of both internal and external capabilities in building a successful technology company.