WEBVTT	#Elemental Media Engine(TM) 2.17.1.0

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Every once in a while, a
revolutionary product

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comes along. That changes
everything.

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Today, Apple is going to
reinvent the phone.

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And here it is.

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First introduced to the
world in 2007, Apple's

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iPhone has become one of
the world's most

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successful products of
all time.

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The early results are in,
Apple's declaring the

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iPhone launch a success.

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Some estimates suggest
that Apple will sell as

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many as 400,000 units
this weekend alone.

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This is it. This is the
device that everyone's

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been waiting for.

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Nearly two decades.

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And 42 models later, the
iPhone has made it into

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the hands of billions of
people, redefining the

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meaning of a phone.

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The iPhone from 2007 to a
comparable period in 2022

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has sold about 2.2
billion.

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There was immediately a
sense that this was a very

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big deal.

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All of the other main
competitors were either

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killed or kind of
self-destructed.

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This is the story of the
iPhone and how it changed

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the world.

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Apple was founded in 1976
by Steve Jobs and Steve

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Wozniak. Today, it's a
household name and one of

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the world's most valuable
companies.

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But it started with
humble beginnings.

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Before the iPhone, Apple
had had a near-death

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experience where bills
were piling up.

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Jobs was ousted by Apple
in 1985 after a power

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struggle between himself
and another executive.

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In July of 1997, he
rejoined the company,

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looking to save it from
financial ruin.

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Steve Jobs had to return,
and one of the first

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things he did when he got
back to Apple in 1997 was

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cut lots of stuff.

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One of the first products
to go was Apple's Newton,

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the company's failed
attempt at a handheld

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device.

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Apple had also been burned
with the Newton, and

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until the iPod, they
didn't want to touch

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anything to do with
mobile.

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It was basically a Mac
business and when Steve

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Jobs returned in 1997,
his first efforts were

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related to revamping the
Mac line.

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He did manage to turn
Apple around.

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It was basically had been
written off as being a

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dying company, and he
brought it back with iMacs

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and AirPort, an early
version of Wi-Fi.

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Various things, but no
attempt to do mobile at

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that point.

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In 1998, introducing the
iMac.

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Apple's business at that
time did about $6 billion

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in revenue per year, and
in the year after that

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iMac came out, the
business jumped.

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It grew at 33%.

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By 2001, though, the
business had declined to

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about a $5 billion
revenue business.

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In the same year that
business was declining,

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Apple attempted to
reinvent itself,

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introducing the iPod, a
portable digital music

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The iPod was the first
venture into mobile and

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player.

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consumer electronics, and
the iPod was wildly

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successful, but very much
a niche product.

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The majority of growth
from Apple from 2001 to

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2007 was almost entirely
was from the iPod.

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This was really the
golden age and the period

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where Apple had
reinvented themselves in

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the eyes of investors as
being more than just a

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computer company.

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Before Apple entered
mobile devices, much of

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the cell phone
development took place

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outside of Silicon
Valley.

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There was i-mode in Japan,
which was like the mobile

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web. In 1999, there was
Symbian in Europe,

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BlackBerry in Canada,
Motorola in Texas, and

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Palm here in Silicon
Valley.

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So basically mobile by
the 2000 was seen as

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something that was
probably not going to be a

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Silicon Valley story.

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During the early 2000, one
of the world's best

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selling phones was the
Nokia 3310, and by 2005,

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the Finnish company had
sold its one billionth

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mobile phone. But then in
January 2007, Apple and

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Steve Jobs shocked the
world with the

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groundbreaking
announcement.

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These are not three
separate devices.

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This is one device.

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And we are calling it
iPhone.

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Steve Jobs, when he
revealed it, he said this

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is an internet
communicator, like he

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threw it out. These are
three products.

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It's not just an iPod
phone.

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In a 2007 interview with
CNBC, Jobs said Apple's

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goal was to take 1% of
the market share.

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It exclusively partnered
with phone carrier AT & T in

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order to achieve this
goal, selling its first

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iPhone for $499.

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However, industry
veterans and competitors

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remain skeptical.

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Why in the world would
Apple Computer want to

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jump into the handset
market?

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With so much competition
and already so many

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We use all the handsets
out there and uh boy, is

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players.

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it frustrating. It's
really frustrating.

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It's a category that that
needs to be reinvented.

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And we think what we've
done is to, is to reinvent

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the phone and completely
change what your

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expectations are going to
be for what you can carry

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in your pocket.

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Steve Ballmer, who at the
time was the CEO of

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Microsoft, was one of the
people that expressed

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skepticism that it would
ever sell well.

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Steve Ballmer pooh poohed
it as not being a, you

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know, it's not going to
go anywhere.

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It doesn't have a
keyboard Business people

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want a keyboard.

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Other companies, though,
like BlackBerry, you know,

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made a very combative
statement that this won't

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make any difference.

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Investors were optimistic
about what the iPhone

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could, the impact that it
could have with Apple.

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And when it was released
in the summer of 2007, the

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initial data that came
out from AT & T was a

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disappointment from that
first few days of sales,

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and I remember talking to
investors after that first

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weekend, and the general
sense was that this

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product, in one
investor's words, was

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"dead on arrival."

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Apple sold 1.4 million
iPhones in 2007, with 80%

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of those sales coming in
Q4.

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For perspective, in the
same year, Nokia sold 7.4

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million mobile phones in
Q4 alone.

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Nokia was seen as
unstoppable, unbeatable in

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the late 90s early 2000.

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They shipped a lot of
devices.

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The investing community
largely took this as

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something that is going
to be a much more

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difficult market for
Apple to really crack.

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Although the iPhone
debuted to lackluster

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sales, one feature was
about to change the

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trajectory forever.

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For the first year, you
couldn't download apps.

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There were no apps, there
was no App Store.

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There were staffers at
Apple that pushed very

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hard for the App Store.

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And then that became the
defining feature of the

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iPhone. And that was just
absolutely crazy.

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That started the rocket
rise.

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The 2008 launch of the App
Store ultimately led to

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the demise of dominant
companies like BlackBerry,

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whose products didn't
offer similar

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integrations. It also
spurred a new wave of

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modern tech companies and
put Apple ahead of its

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competitors.

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Uber didn't exist before.

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Facebook predates the
iPhone, but Facebook

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pivoted really hard. Mark
Zuckerberg, he was like,

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no, that's a future.

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We have to have the best
iPhone app that exists.

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The App Store allowed your
phone to become a lot

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more. What the
traditional phone

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manufacturers missed is
they missed the App Store.

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That was the piece that
that incite that other

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phone manufacturers
didn't see that coming.

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In the years following the
App Store, Apple took off.

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In 2011, the iPhone 4S
helped Apple reach a

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milestone. Over 50
million iPhones were sold

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for the first time in a
year, and by 2015, Apple

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was selling over 200
million iPhone units

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yearly.

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The App Store was a huge
thing, and Android

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basically followed that
model with the Play Store.

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I don't think there's any
question the iPhone set,

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the standard that really
almost all phones have

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followed since then.

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A decade after the App
Store launched, Apple hit

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a historic $1 trillion
market cap, becoming the

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first publicly traded U.S
.

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company to do so.

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Today, there are nearly
1.5 billion active iPhone

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users, and the iPhone
dominates in the U.S.

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with 53% of the market
share.

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In 2019, Apple stopped
breaking out iPhone unit

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sales, but it's estimated
that more than 2.3 billion

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iPhone units have been
sold to date.

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After 15 generations of
the iPhone and becoming a

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$3 trillion company, what
else is left for Apple?

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The whole smartphone
industry is is facing a

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real question. I mean, we
don't need a new iPhone

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every year. The consumer
doesn't, but Apple does

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because it's the way the
company works.

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But there is no clear n
ext feature

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For the first time, Apple
has surpassed Samsung as a

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.

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smartphone leader,
holding 20% of the global

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market share, but Samsung
is not far behind and

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previously held the spot
since 2010.

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There is a period from
2008 to 2015

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where Apple needed to
worry about what Samsung

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was going to do with
Android. Their market

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share was actually
declining globally from