Apple's 50-year journey from garage to tech titan

By Aditya Soni and Akash Sriram

April 1 (Reuters) - In ‌early 1976 in California, ​Steve Wozniak ​had just completed the design of a computer circuit board he intended to share with fellow hobbyists at a prominent local club. His friend Steve Jobs also saw a business opportunity to manufacture and sell the boards, and ‌thus Apple was born.

The company turns 50 on Wednesday. Its rise has shaped both the technology industry ⁠and popular culture by making first desktop computers and then smartphones mainstream, popularizing mobile apps and showing how tightly integrated devices and software can work.

But the iPhone maker ‌is now under pressure to show it ‌can remain a technology powerhouse in the age of artificial intelligence as software rivals Alphabet and Microsoft spend tens of billions of dollars to seize a lead.

Its stock is the second-worst performer among the "Magnificent Seven" since OpenAI launched ChatGPT in November 2022.

Despite ​embedding machine learning features in its chips since 2017, analysts and investors say delays in roll-out of features, including a revamped Siri, suggest Apple was underprepared for how consumers would use AI.

Rivals such as OpenAI are also planning to launch AI devices that ⁠aim to shake the long-held dominance of smartphones.

Still, Apple's devices remain widely popular.

Strong demand for the latest iPhone 17 series drove its December-quarter earnings, while the $599 MacBook Neo - its cheapest ​laptop ever - had a strong launch.

"The company made it fifty years with no one truly competing with its integrated business model; the fate of its next fifty years may rest on the question of ​just how compelling AI ends up being — and if OpenAI can out-Apple the ‌original," independent tech analyst Ben Thompson said on Stratechery.com on Tuesday.

Here are five graphics that capture Apple's rise:

APPLE'S BLISTERING STOCK PRICE GROWTH

The company went public in 1980, but its shares picked up dramatically after ⁠the turn of the century as the iPhone became a bestseller and its device lineup expanded. Its in-house M-series chips also drove a surge in Mac sales, aiding the stock.

ANNUAL REVENUE APPROACHES HALF A TRILLION

Apple, one of the world's most valuable companies, also ranks among the biggest by revenue. Thanks to ⁠strong demand for its latest iPhone series, it is expected to post sales of $465 billion in its ongoing fiscal year ending in September.

SERVICES BECOME KEY DRIVER ​OF APPLE'S GROWTH

Apple's services business, which houses its App Store, Apple Music and its streaming service, has become a major driver of growth as its expanding base of devices brings in steady income from subscriptions and commissions on app sales. That has also led to high-profiles tussles with the likes of ‌Epic Games, which has tried to challenge its control over in-app payments.

CHINA, EMERGING MARKETS GROW THEIR SHARE OF APPLE REVENUE

As the smartphone market in the U.S. saturates, China and emerging markets such as ‌India are playing a greater role in driving its revenue.

THE PRODUCTS THAT MAKE APPLE

The circuit board Wozniak shared with Jobs in 1976 became Apple I, the ⁠first in a line of products in the company's ‌journey from a garage startup to a ​consumer electronics giant. Over the years, Apple has made hits such as the iPod, and its line-up now includes smartwatches, wireless earbuds and mixed-reality headset Vision Pro.

(Reporting by Aditya Soni and Akash Sriram in Bengaluru; Editing ‌by Devika Syamnath)

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