The Ouster of Steve Jobs

In the early 1980s, Apple was a rising star in the technology industry. The company had achieved success with the Apple II, and its co-founder, Steve Jobs, was eager to take Apple to the next level. However, Jobs was a visionary rather than a traditional businessman, and Apple needed strong leadership to expand further.

At the time, John Sculley was the president of PepsiCo. He had successfully led the company’s marketing efforts, including the famous “Pepsi Challenge” campaign, which increased Pepsi’s market share against Coca-Cola. Jobs saw Sculley as the perfect candidate to bring strong business management to Apple.

Jobs famously asked Sculley, “Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?” Inspired by this challenge, Sculley joined Apple as CEO in 1983.

At first, Jobs and Sculley worked well together. However, as Apple grew, tensions emerged. Jobs was passionate about innovation and pushed for the development of the Macintosh computer, while Sculley focused on financial stability and business strategy. The Macintosh, released in 1984, was a groundbreaking product, but sales were slower than expected. Apple’s board of directors began to question Jobs’ leadership.

By 1985, disagreements between Jobs and Sculley escalated. Jobs wanted to lower prices and invest more in new products, but Sculley and the board were concerned about profitability. In a dramatic boardroom conflict, Sculley convinced the board to remove Jobs from his leadership role. Jobs, feeling betrayed, resigned from Apple later that year.

Jobs' Return

Sculley remained Apple’s CEO until 1993. While Apple saw financial growth under his leadership, it struggled to maintain its innovative edge. By the early 1990s, competition was growing, and Apple's market position weakened. The board forced Sculley out in 1993, replacing him with a series of CEOs who also failed to revive the company.

Meanwhile, Jobs had started a new company, NeXT, which focused on advanced computer technology. He also purchased Pixar, which became a leader in animated films.

By 1996, Apple was in financial trouble, and the board began searching for solutions. They decided to acquire NeXT, bringing Jobs back to the company in 1997. At first, Jobs was only an advisor, but it quickly became clear that Apple needed his leadership. He was asked to return as interim CEO, and within a few years, he completely transformed the company.

While Jobs never spoke publicly about any bitterness toward Sculley, there was clear tension between them. Sculley later admitted in interviews that he regretted his role in Jobs' departure, acknowledging that Jobs had a unique ability to drive innovation. Jobs, however, rarely mentioned Sculley and focused on leading Apple into a new era.

Under Jobs, Apple introduced revolutionary products such as the iMac, iPod, iPhone, and iPad, turning it into one of the most valuable companies in the world. The story of Jobs and Sculley highlights the challenges of balancing vision with profitability. It remains a lesson in business strategy, leadership styles, corporate politics, and the power of vision in business.