APPLE I and APPLE IINick Rakoczy

APPLE IApril 11th, 1976

Why?

Began as an idea from Steve Wozniak to replace mainframe computing.

Developing a Project Charter

To provide an all-in-one desktop computer: keyboard, screen, and computer; all in one small stand-alone computer on a desktop.– Steve Wozniak (March 5th, 1975)

Identifying Stakeholders

Initially just Wozniak: who built the design intending to distribute it for free.Jobs joined and brought the idea of selling the computer as a product.Wozniak put up $500, and Jobs put up $1500 to get Apple Computers started.

Collecting Requirements

A Processor (Motorola 8600)MemoryNo case, power supply, monitor, or keyboard

Those are to be supplied by the builder as the Apple I was a build kit.

Defining the ScopeNo keyboard, no monitor, no case.Processor, memory, and solder points for expansion. Designed to sold to enthusiasts, not for end-users.Originally designed to be free by Wozniak, Jobs suggested charging for it.

“I designed the Apple I because I wanted to give it away for free to other people”– Steve Wozniak

Work Breakdown Structure

Steve Wozniak: Designer and ProgrammerDesigned the Apple I boardsWrote the BASIC interpreter

Steve Jobs: Sales and MarketingConvinced Woz to sell the Apple IFound buyersFound discounts on parts needed for assembly.

Ron Wayne: Legal advise and potential fundingBacked out at the last minute

Estimated CostsPart Cost Sale Profit

Logic Board $20/unit $40/unit $20/unit

Memory $120/unit

Processor $20/unit

Total $166/unit $500/unit $334/unit

Project Execution

Jobs acted as salesmanWozniak assembled the Apple I board in his garage (or as some suggest, his bedroom).

Verify / Control ScopeApple I was designed as an enthusiast kit.Most stores were unwilling to sell the product due to it’s high price and small target audience, many suggested expanding scope to include a keyboard and monitor; making the Apple I an an all-in-one box.They stayed true to their original goal, but this idea came back with the Apple II

ClosingPrice dropped 5 months before Apple II was released.Discontinued 3 months after Apple II was released.

It is estimated around 50 Apple I computers are still in working condition.

Leadership Issues

Wozniak was always wanting to include things for free.Jobs always wanted to monetize everything.

RevivalIn 2003, Vince Briel redesigned the Apple I using modern computer components on a more compact board.

Apple Computer Inc. had no issue with the release as Vince had been given permission from Wozniak and the Apple I design was not technically owned by Apple Computer Inc, but by Wozniak himself.

Apple IIJune 5th, 1977

Changes

Addition of an integrated keyboardHacked together color over NTSC supportSwitched mode power supplyInclusion of a case

Target Audience Changes

No longer aiming for hobbyistsNow targeting average consumers

New RequirementsMust have a caseMust include a power-supplyAdd support for soundMultiple expansion slots for lots of third-party devices

BONUS: Wozniak found a way to make color graphics

Process

Reduce costs by outsourcing the printing of the logic boards to Ireland and SingaporeAssemble in Silicon Valley

Adjusted Price Estimate

Addition of a case requires a starting capital of $200,000 for the tooling shop

Filled by getting a loan in exchange for a 1/3rd share of the company from Mike Markkula

Growing Up

Wozniak and Jobs couldn’t keep up with the demand for the Apple II and ended up hiring 10-15 employeesThey moved out of the garage and into an office building in Cupertino

ClosingApple II went through at least 4, some could argue as many as 8 more revisions of the Apple IIThe executing phase of the Apple II project dragged on and was renewed over and over until 1993 when the Apple IIe was finally discontinued in favor of the Macintosh project.

CommentaryApple I and II

Successes

Convincing Wozniak to sell the Apple IAcknowledging the changing market towards consumer products

Failures

Early decision to use Motorola 8600 over the Intel 8080

Intel became the market leader and it took Apple 28 years to move to Intel processors