WHERE THEY CAME FROM
After dropping out of Reed College in the mid-1970s, Steve Jobs teamed up with buddy Steve Wozniak and started building personal computers in his parents’ Silicon Valley garage. According to tech lore, Jobs sold his Volkswagen minibus to help fund the fledgling Apple, which went public in 1980 with $117 million in revenue.

WHAT THEY DO
Apple bills itself as the iconoclast computer company, where aesthetics and ease of use trump the stodgy black boxes made by its competitors. After a rocky stretch, Apple is finally riding high on the success of its iPod digital media players, iMac computers, and its iTunes store, now one of the hottest outlets on the internet for music, TV shows, and movies. 

WHAT THEY GOT RIGHT
Apple earned its reputation as one of the earliest computer manufacturers, creating the first consumer PC with a graphical user interface.

But Apple’s real success began in 1998 when it introduced a candy-colored line of iMac computers whose all-in-one design housed the monitor and computer together in translucent plastic. In 2001, the company added its Mac OS X operating system, opened a string of retail stores around the country, and launched the iPod. Not only has the iPod left competitors—from Dell to Microsoft to SanDisk—scratching their heads and scrambling to devise an “iPod killer,” it, along with iTunes’ software and online store, has helped permanently change the music industry by moving music to the internet and crushing sales of CDs.

Apple has also honed its brand through slick marketing moves, such as its distinctive white headphones, the lowercase “i” preceding product names, and dramatic buildups to product announcements that send bloggers into a speculative tizzy.

WHAT THEY GOT WRONG
The Cupertino, California–based company had a rough past. Early on, Apple refused to license its operating system to other PC makers, a misstep that helped Microsoft’s Windows operating system become the industry standard. Through the late 1980s and early 1990s, Apple struggled with the ubiquity of Microsoft-powered PCs, sliding revenue, and a string of lackluster C.E.O.’s.

Apple’s high-priced products also hindered the company. Among its biggest busts was the $9,995 Lisa computer (reportedly named after Jobs’ daughter), which made its debut in 1983. According to some accounts, the company dumped unsold Lisas in a Utah landfill.

Critics have warned that Apple still operates in very much the same way—with high prices and a closed digital-rights management system that makes iPods incompatible with other MP3 players.

WHAT’S NEXT
In early 2007, Apple dropped “Computer” from its formal name to further underline its widening position in the consumer technology space. At the same time, Apple announced its entry into the mobile-phone market—the iPhone—and its Apple TV device, which is designed to stream movies and television from computers directly to a TV. Expect Apple to continue its push into consumer electronics, using its stranglehold on the MP3 market to outmaneuver its rivals. —Clancy Nolan