September 26, 1997: In one of his first jobs after returning to Apple as interim CEO, Steve Jobs recorded a loss of $ 161 million for the company's quarter.
Giving bad news to investors is disastrous, but the situation will change dramatically for Apple.
Apple's loss seems not to be so bad
First, Jobs never caused Apple's biggest loss. The income crisis is attributed to Mr. Gill Amelio's predecessor to Jobs. During Apple 's Amelio' s 500 – day rule, the company suffered a massive $ 1.6 billion loss. This substantially wiped out all the profits that Cupertino gained since 1991.
Mr. Amelio finally resigned as he ran Apple on 7th July. I took over my job and decided to look for a company instead.
But more importantly, the loss was actually reflecting some good things that started with Apple. Due to Apple's acquisition of Mac OS license from Power Computing, losses of $ 161 million included amortization of $ 75 million. This marked the end of the miserable "clone Macs" era.
Mac OS 8 boosts Apple's revenue
Apple was also backed by the recent launch of Mac OS 8. Mac OS 8 gave huge sales of 1.2 million copies in the first two weeks. That was the most successful sales performance of Apple software products at the time.
Mac OS 8 was not enough to bring Cupertino back to profitability, but it greatly exceeded many expectations. In addition, Apple has also shown that it still benefits from a large and supportive fan base.
Apple's CFO, Fred Anderson said when the company's real-world quarterly settlement was announced, "Apple focuses on our primary goal of returning to sustainable profitability" . "The goal of 1998 is to continue to reduce Apple's breakeven point by combining further cost reductions and improved gross profit."
Like Apple's current "inadequate and transient" strategy, the forecast proved to be overly cautious. The company performed quite well in the following year.
Apple's turnaround begins
I heard it sounded a bit foolish in a year when I saw the worst loss of Apple, but in 1998 it was the beginning of a turnaround. The company released the iMac G3, the year just returned to profitability in the next quarter. And Apple has not slowed since then.
But before that, Apple had to overcome this disappointing call for revenue. However, shareholders holding a little longer got a big reward. Today, Apple owns 1 trillion dollars stock first published in the United States.