Sculley in January 2014
|3rd CEO of Apple Inc.|
April 8, 1983 –October 15, 1993
|Preceded by||Mike Markkula|
|Succeeded by||Michael Spindler|
April 6, 1939
New York City, New York, U.S.
|Residence||Palm Beach, Florida, U.S.|
|Alma mater|| Brown University (BA) |
Wharton School (MBA)
John Sculley III (born April 6, 1939) is an American businessman, entrepreneur and investor in high-tech startups. Sculley was vice-president (1970–1977) and president of Pepsi-Cola (1977–1983), until he became chief executive officer (CEO) of Apple Inc. on April 8, 1983, a position he held until leaving in 1993. In May 1987, Sculley was named Silicon Valley's top-paid executive, with an annual salary of US$10.2 million. 412:
Sales at Apple increased from $800 million to $8 billion under Sculley's management, although many attribute his success to the fact that Sculley joined the company just when Steve Jobs' visions and Steve Wozniak's creations had become highly lucrative.However, his stint at Apple remains controversial due to his departure from co-founder Steve Jobs's sales structure, particularly regarding Sculley's decision to compete with IBM in selling computers to the same types of customers. Others say that the "two clashed over management styles and priorities, Jobs focusing on future innovation and Sculley more on current product lines and profitability". But Sculley ultimately was forced to step down as Apple CEO because he was opposed to licensing Macintosh software and was talking to Goldman-Sachs about splitting Apple into two companies. When Sculley left in May 1993, Apple had $2 billion in cash and $200 million in debt.
Sculley is recognized as an expert in marketing, in part because of his early successes at PepsiCo, notably his introduction of the Pepsi Challenge, which allowed the company to gain market share from primary rival Coca-Cola.He used similar marketing strategies throughout the 1980s and 1990s at Apple to mass-market Macintosh personal computers, and today he continues to speak and write about disruptive marketing strategies.
Sculley is currently invested in and involved with a number of high-tech start-up companies, including 3CInteractive, XL Marketing (now rebranded as Zeta Interactive),Inflexion Point, Mobeam, OpenPeak, x10 Credit, Pivot Acquisition Corp., nextSource and WorldMate. He is currently Chairman of the PeopleTicker and SkillsVillage.
Jeff Daniels portrayed Sculley in the film Steve Jobs , Matthew Modine portrayed him in the 2013 film Jobs , and Allan Royal portrayed him in the 1999 TNT film Pirates of Silicon Valley.
Sculley was born in New York City, the son of Margaret Blackburn (Smith), a horticulturist, and John Sculley, Jr., a Wall Street lawyer.Sculley and his brothers spent much of their childhood in Bermuda before moving back to New York. He attended high school at St. Mark's School in Southborough, Massachusetts.
Sculley ultimately received a bachelor's degree in Architectural Design from Brown University and an MBA from the Wharton School of the University of Pennsylvania.
Sculley began work at Marschalk Co. in New York City in 1963.
Sculley joined the Pepsi-Cola division of PepsiCo in 1967 as a trainee, where he participated in a six-month training program at a bottling plant in Pittsburgh. 30 In 1970, at the age of 30, Sculley became the company's youngest marketing vice-president.:
Sculley initiated one of the company's first consumer-research studies, an extended in-home product test in which 350 families participated. As a result of the research, Pepsi decided to launch new, larger, and more varied packages of their soft drinks, 43–44 including the two-liter bottle Sculley worked with DuPont to develop. In 1970, Pepsi set out to dethrone Coca-Cola as the market leader of the industry, in what eventually became known as the Cola Wars. Pepsi began spending more on marketing and advertising, typically paying between US$200,000 and $300,000 for each television spot, while most companies spent between $15,000 and $75,000. With the Pepsi Generation campaign, Pepsi aimed to overturn Coca-Cola's classic marketing. :54:
In 1974, Sculley became president of PepsiCo's International Food Operations division 63–66 Within three years, the food division was making US$300 million in revenues and $40 million in profit. :68, shortly after he visited a failing potato-chip factory in Paris. PepsiCo's food division was their only money-losing division, with revenues of US$83 million and losses of $156.5 million. To make the food division profitable, Sculley improved product quality, enhanced accounts, and established financial controls. :
Sculley was best known at Pepsi for the Pepsi Challenge, an advertising campaign he started in 1975 to compete against Coca-Cola to gain market share, using heavily advertised taste tests. It claimed based on Sculley's own research that Pepsi-Cola tasted better than Coca-Cola. The Pepsi Challenge included a series of television advertisements that first aired in the early 1970s, featuring lifelong Coca-Cola drinkers participating in blind taste tests. Pepsi's soft drink was always chosen as the preferred product by the participant; however, these tests have been criticized as being biased.[ citation needed ] The Pepsi Challenge was mostly targeted at the Texas market, where Pepsi had a significantly lower market share at the time. The campaign was successful, significantly increasing Pepsi's market share in that state. At the time the Pepsi Challenge was started, Sculley was senior vice-president of United States sales and marketing operations at Pepsi. :71–75 Sculley himself took the taste test and picked Coke instead of Pepsi. :287
In 1977, Sculley was named Pepsi's youngest-ever president. Although commonly called the CEO of Pepsi, this was never the case. At the time of his departure, Don Kendall was CEO of Pepsi.
I think of you just like Woz and Markkula. You're like one of the founders of the company. They founded the company, but you and I are founding the future.
Apple lured Sculley away from Pepsi in order to apply his marketing skills to the personal computer market. Steve Jobs successfully sealed the deal after he made his legendary pitch to Sculley: "Do you want to sell sugared water for the rest of your life? Or do you want to come with me and change the world?"Apple's president, Mike Markkula, wanted to retire and believed that Jobs, who wished to be the company's president, lacked the discipline and temperament needed to run Apple on a daily basis. Sculley, with his solid business background and considerable recent success, would give Apple an image of greater reliability and stability. When Sculley started at Apple, he got a $1-million signing bonus, $1 million in annual pay and options on 350,000 shares of Apple. From the time they first met in 1982 until 1985, Jobs and Sculley had what both acknowledged as an amazing partnership. Sculley used his marketing experience to help keep the aging Apple II generating much-needed cash and helped Jobs launch the Mac with the most admired consumer marketing campaign of its time. Once Jobs took over the Macintosh project from Apple co-founder Steve Wozniak and early Apple employee Jef Raskin, he became the executive product manager and made all the product decisions.
The Lisa computer, an innovative model designed by a team initially led by Jobs, became available in January 1983, and had disastrous sales. When Jobs's Macintosh, the first of a new series of models with a pioneering black-and-white graphical user interface, was shipped to stores in January 1984, Sculley raised the initial price to $2,495 from the originally planned $1,995, allocating the additional money to hypothetically higher profit margins and to expensive advertising campaigns. [ citation needed ]Macintosh sold well, and received excellent reviews, but it did not eliminate the IBM PC. Some of the privileges of Jobs's elite development groups were trimmed, and projects were subject to stricter review for usefulness, marketability, feasibility, and reasonable cost.
At the peak of the Macintosh success, Apple made an attempt to move unsold inventory of Lisa computers by renaming it to "Macintosh XL" and positioning it as a top-of-the-line pro Macintosh model. At this point, a power struggle between Jobs and Sculley was becoming obvious. Jobs became "non-linear": he kept meetings running past midnight, sent out lengthy faxes, then called new meetings at 7:00 am.Sculley had little control over the Macintosh division where Jobs was the general manager. The Apple board of directors instructed Sculley to "contain" Jobs and limit his ability to launch expensive forays into untested products. Rather than submit to Sculley's direction, Jobs attempted to oust him from his leadership role at Apple. Sculley found out about Jobs's plans and called a board meeting at which Apple's board of directors sided with Sculley and removed Jobs from his managerial duties. Jobs resigned from Apple and founded NeXT Inc. the same year. Sculley said in 2015 that Jobs never forgave him and their friendship was never repaired.
After Jobs left, Sculley was named president [ citation needed ] Under the direction of Sculley, who had learned several painful lessons after introducing the bulky Macintosh Portable in 1989, Apple introduced the PowerBook in 1991. The same year, Apple introduced System 7, a major upgrade to the operating system, which added color to the interface and introduced new networking capabilities. It remained the architectural basis for Mac OS until 2001, when the classic Mac OS was replaced by Mac OS X. The success of the PowerBook and other products brought increasing revenue. For some time, it appeared that Apple could do no wrong, introducing fresh new products and generating increasing profits in the process. The magazine MacAddict named the period between 1989 and 1991 as the "first golden age" of the Macintosh. Under the leadership of Sculley, Apple's sales multiplied from $982 million in 1983 to $7.9 billion in 1993.and the company experienced a turnaround in 1986; one journalist wrote "since Sculley joined the company … many things have changed", and that his "strategy has worked". Wozniak credited the Macintosh's initial success to Sculley, saying that he "worked to build a Macintosh market when the Apple II went away". Apple introduced a faster microprocessor and renamed "The Macintosh Office" to "Desktop Publishing."
Microsoft threatened to discontinue Microsoft Office for the Macintosh if Apple did not license parts of the Macintosh graphical user interface to use in the Windows operating system. Under pressure, Sculley agreed, a decision which later affected the Apple v. Microsoft lawsuit. About that time, Sculley coined the term personal digital assistant (PDA) referring to the Apple Newton, one of the world's first PDAs.
In 1987, Sculley made several predictions in a Playboy interview. [ citation needed ]He predicted that the Soviet Union would land a man on Mars within the next 20 years and claimed that optical storage media such as the CD-ROM would revolutionize the use of personal computers. Some of his ideas for the Knowledge Navigator were eventually fulfilled by the Internet and the World Wide Web during the 1990s and others by Apple itself with the introduction of Siri.
On December 5, 1992, Sculley, as Chairman, CEO, and CTO of Apple Computer, Inc., gave a seminal speech regarding the future of the Internet, titled "The Dawn of a $3.5 Trillion Communications Mega-Industry: Information Access, Processing and Distribution in a Digital World." This was the keynote address to a packed house at the Harvard Business School's Burden Auditorium, as part of the inaugural student-run Harvard/MIT Communications 2000 Symposium (now known as the Harvard Business School Tech Club's annual Cyberposium).
In the early 1990s, Sculley led Apple to port its operating system to run on a new microprocessor, the PowerPC. Sculley later acknowledged such an act was his greatest mistake, indicating that he should instead have targeted the dominant Intel architecture.After a bad first quarter in 1993, amid a personal-computer price war and internal tension over the company's direction, Apple's board forced Sculley out. He resigned on October 15, 1993 and was replaced by German-born Michael Spindler, who had been Chief Operating Officer. Spindler was ousted three years later.
After leaving Apple on October 23, 1993, Sculley became chairman and chief executive officer at Spectrum Information Technologies, a New York-based company that held key computer patents for wireless data transmission. Only four months later he resigned from the company and filed a lawsuit against Spectrum president Peter Caserta, seeking more than $10 million in damages. Sculley alleged that he was misled when he was hired at Spectrum by not being told of SEC inquiries and "aggressive revenue recognition accounting" for license fees.
Sculley has been a founding investor in MetroPCS (formerly General Wireless) and helped guide the company's brand marketing; MetroPCS became a multibillion-dollar public company on the New York Stock Exchange [ citation needed ]until its acquisition by T-Mobile in 2013. He built NFO Research from $25 million to $550 million in revenue, and sold it to IPG for $850 million. He helped launch and advised Hotwire.com, Intralinks (which was co-founded by his brother Arthur), and InPhonic, Buy.com, and PeoplePC—each of which became billion dollar market cap public companies in the 1990s.
In 1997, Sculley became the chairman of Live Picture, a California-based company, to oversee its push into high-quality, low-bandwidth imaging over the Internet. US$22M in venture capital was provided for the company. Sculley later left the company, but remained an investor. In 1999, Live Picture filed for federal bankruptcy protection as part of a plan to be acquired by MGI Software.
In 1997, Sculley co-founded PopTech with Bob Metcalfe and several other dignitaries from the technology industry.In 1998, he joined the board of directors of BuyComp LLC (now Buy.com), an Internet-only computer store. Two years later, he partnered with Dennis M. Lynch to launch Signature21, providing marketing services to small to medium-sized businesses. In 2001, Sculley and Lynch transitioned the company into a learning program for rising entrepreneurs. Months later, Lynch left the company, while Sculley continued to consult and work with small businesses, including InPhonic, whose board of directors he later joined. InPhonic was an online retailer of cell phones and wireless plans. Sculley's early leadership helped steer InPhonic towards its successful IPO in 2004. Sculley served as the vice chairman of the InPhonic board of directors. InPhonic filed for bankcruptcy in 2007.
In 2002, Sculley endorsed and invested in the Wine Clip, [ when? ] serves on the board of directors. In 2004, Sculley joined the board of directors at OpenPeak, a maker of software for wireless consumer electronics, digital media, computers, and home systems. In the same year, Sculley became a venture partner at Rho Ventures. In March 2006, Sculley was named Chairman of IdenTrust (formerly Digital Signature Trust Company) a San Francisco-based firm focusing on verifying identity and boosting financial security.a wine accessory product, which claims to accelerate the aeration of wine by exposure to magnets. A year later he helped in the founding of Verified Person Inc., an online pre-employment screening company. He currently
Before speaking at the Silicon Valley 4.0 conference, Sculley was interviewed by CNET in October 2003, where he explained the mistakes he made at Apple concerning the Apple Newton and HyperCard. [ dead link ]Sculley had cancelled Apple's first hand-held mobile tablet PenMac led by Paul Mercer with applications by Samir Arora and instead signed an agreement to work with Sharp Electronics on the Newton technology. Also in 2003, Sculley was interviewed by the BBC for the television documentary The World's Most Powerful episode Steve Jobs vs. Bill Gates , discussing his time at Apple during the 1980s as CEO. In 2010, he was interviewed for Cult of Mac on the topics of Steve Jobs and design. Sculley has spoken at PopTech since its opening in 1997 every year except for 2005.
In 2007, Sculley co-founded the data company Zeta Global with business partner David A. Steinberg, and in January 2014 the data analytics firm XL Marketing, rebranded and incorporated its resources into Zeta Interactive, re-launching it as a Big Data-Driven Marketing firm.On January 30, 2014, Sculley was a panelist at a forum organized by Zeta, which featured ad executives, marketers and NFL executive to discuss the changes in the way companies market and reach consumers since Sculley's time at Apple in 1984 when the computer company featured what became one of the first iconic Super Bowl ads—the 1984 commercial. In October 2016, Zeta Interactive was again rebranded as Zeta Global.
In 2014, Sculley co-founded Obi Mobiles, a smartphone brand aimed at the emerging markets. The company was renamed Obi Worldphone.He has also been working in the health care industry, focusing on RxAdvance, a cloud-based platform that helps pharmaceutical companies, hospitals and insurers manage chronically ill patients living at home.
Sculley went political in the early 1990s on behalf of Republican Tom Campbell, who in 1992 was running in the California Republican primary to be the party candidate for a United States Senate seat. Sculley hosted a fundraiser for Campbell at his ranch in Woodside. Sculley had become acquainted with Hillary Clinton, serving with her on a national education council. When Bill Clinton ran for president, Sculley supported him. Sculley sat next to Hillary Clinton during the President's first State of the Union address in January 1993.
Sculley married Ruth, stepdaughter of PepsiCo president Donald Kendall in 1960, with whom he had two children. The couple divorced in 1965.In 1978, he married Carol Lee Adams, ex-wife of a former PepsiCo vice president, ultimately divorcing in 2011. In 2015, Adams filed a lawsuit alleging that Sculley did not disclose over $25 million in assets during their divorce proceedings. A spokesman for Sculley denied the allegations.
In 2013, Sculley married Diane Gibbs Poli, vice president and design coordinator for Wittman Building Corporation, and they live in Palm Beach, Florida.
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. It is considered one of the Big Five technology companies, along with Amazon, Alphabet, Facebook, and Microsoft.
NeXT, Inc. was an American computer and software company founded in 1985 by Apple Computer co-founder Steve Jobs. Its name was usually pronounced as "Next". Based in Redwood City, California, the company developed and manufactured a series of computer workstations intended for the higher education and business markets. NeXT was founded by Jobs after he was fired from Apple, along with several co-workers. NeXT introduced the first NeXT Computer in 1988, and the smaller NeXTstation in 1990. The NeXT computers experienced relatively limited sales, with estimates of about 50,000 units shipped in total. Nevertheless, their innovative object-oriented NeXTSTEP operating system and development environment were highly influential.
Stephen Gary Wozniak, known as simply Woz, is an American electronics engineer, programmer, philanthropist, and technology entrepreneur. In 1976 he co-founded Apple Inc., which later became the world's largest information technology company by revenue and largest company in the world by market capitalization. Through their work at Apple in the 1970s and 1980s, he and Apple co-founder Steve Jobs are widely recognized as two prominent pioneers of the personal computer revolution.
Lisa is a desktop computer developed by Apple, released on January 19, 1983. It is one of the first personal computers to offer a graphical user interface (GUI) in a machine aimed at individual business users. Development of the Lisa began in 1978, and it underwent many changes during the development period before shipping at US$9,995 with a five-megabyte hard drive. The Lisa was challenged by a relatively high price, insufficient software library, unreliable Apple FileWare ("Twiggy") floppy disks, and the immediate release of the cheaper and faster Macintosh — yielding lifelong sales of only 10,000 units in two years.
The AIM alliance was formed on October 2, 1991 between Apple, IBM, and Motorola to create a new, grandly unified, computing standard based on the POWER instruction set architecture. It was further intended to cope with Microsoft's monopoly and Microsoft's and Intel's duopoly. The alliance yielded the launch of Taligent, Kaleida Labs, the highly successful PowerPC CPU family, the Common Hardware Reference Platform (CHRP) hardware platform standard, and Apple's highly successful Power Macintosh computer line.
"1984" is an American television commercial that introduced the Apple Macintosh personal computer. It was conceived by Steve Hayden, Brent Thomas and Lee Clow at Chiat\Day, produced by New York production company Fairbanks Films, and directed by Ridley Scott. English athlete Anya Major performed as the unnamed heroine and David Graham as Big Brother. It first aired in 10 local outlets, including Twin Falls, Idaho, where Chiat\Day ran the ad on December 31, 1983, at the last possible break before midnight on KMVT, so that the advertisement qualified for the 1984 Clio Awards. Its second televised airing, and only national airing, was on January 22, 1984, during a break in the third quarter of the telecast of Super Bowl XVIII by CBS.
The Macintosh LC is a family of personal computers designed, manufactured and sold by Apple Computer, Inc. from 1990 to 1997.
Produced by Boston-based IDG World Expo, Macworld/iWorld is a trade show with conference tracks dedicated to the Apple Macintosh platform. It was held annually in the United States during January. Originally Macworld Expo and then Macworld Conference & Exposition, the gathering dates back to 1985.
Power Computing Corporation was the first company selected by Apple Inc to create Macintosh-compatible computers. Stephen “Steve” Kahng, a computer engineer best known for his design of the Leading Edge Model D, founded the company in November 1993. Power Computing started out with financial backing from Olivetti and $4 million of Mr. Kahng's money.
Jean-Louis Gassée is a business executive. He is best known as a former executive at Apple Computer, where he worked from 1981 to 1990. He also founded Be Inc., creators of the BeOS computer operating system. After leaving Be, he became Chairman of PalmSource, Inc. in November 2004.
Armas Clifford "Mike" Markkula Jr. is an American electrical engineer, businessman and investor. He was an angel investor and second CEO of Apple Computer, Inc., providing early critical funding and managerial support.
InPhonic Inc was an American company which sold wireless services and devices online, both through its own electronic commerce sites and through private labeled websites it created and managed for online retailers. The company was headquartered in Washington, DC and maintained technology and operations centers in Largo, Maryland.
Apple Inc., formerly Apple Computer, Inc., is a multinational corporation that creates consumer electronics, personal computers, servers, and computer software, and is a digital distributor of media content. The company also has a chain of retail stores known as Apple Stores. Apple's core product lines are the iPhone smartphone, iPad tablet computer, iPod portable media players, and Macintosh computer line. Founders Steve Jobs and Steve Wozniak created Apple Computer on April 1, 1976, and incorporated the company on January 3, 1977, in Cupertino, California.
The PowerBook 100 is a portable subnotebook personal computer that was designed and manufactured by Sony for Apple Computer and introduced on October 21, 1991, at the COMDEX computer expo in Las Vegas, Nevada. Priced at US$2,300, the PowerBook 100 was the low-end model of the first three simultaneously released PowerBooks. Its CPU and overall speed closely resembled those of its predecessor, the Macintosh Portable. It had a Motorola 68000 16-megahertz (MHz) processor, 2-8 megabytes (MB) of memory, a 9-inch (23 cm) monochrome backlit liquid crystal display (LCD) with 640 × 400 pixel resolution, and the System 7.0.1 operating system. It did not have a built-in floppy disk drive and was noted for its unique compact design that placed a trackball pointing device in front of the keyboard for ease of use.
Steven Paul Jobs was an American business magnate, industrial designer, investor, and media proprietor. He was the chairman, chief executive officer (CEO), and co-founder of Apple Inc., the chairman and majority shareholder of Pixar, a member of The Walt Disney Company's board of directors following its acquisition of Pixar, and the founder, chairman, and CEO of NeXT. Jobs is widely recognized as a pioneer of the personal computer revolution of the 1970s and 1980s, along with Apple co-founder Steve Wozniak.
The Macintosh is a family of personal computers designed, manufactured and sold by Apple Inc. since January 1984.
The Newton is a series of personal digital assistants (PDA) developed and marketed by Apple Computer, Inc. An early device in the PDA category – the Newton originated the term "personal digital assistant" – it was the first to feature handwriting recognition. Apple started developing the platform in 1987 and shipped the first devices in 1993. Production officially ended on February 27, 1998. Newton devices run on a proprietary operating system, Newton OS; examples include Apple's MessagePad series and the eMate 300, and other companies also released devices running on Newton OS. Most Newton devices were based on the ARM 610 RISC processor and all featured handwriting-based input.
David A. Steinberg is the founder and chief executive officer of Zeta Global, formerly Zeta Interactive and XL Marketing Corporation before that, one of several companies that he started. Zeta Global is a data-driven marketing and CRM company that integrates data, technology and marketing services, aiming to help brands acquire, grow and retain customers.
Al Eisenstat was an American lawyer and business executive. He served as general counsel, Senior Vice President and board member at Apple Computer.
Zeta Global is customer lifecycle management marketing company which was founded in 2007. Zeta helps Fortune 1,000 brands and large middle-market companies create, maintain and monetize customers, using 'people-based, precision marketing' to provide customers with enhanced multichannel marketing solutions to help them manage the full customer life-cycle.
|url=missing title (help).
|Wikimedia Commons has media related to John Sculley .|
| Apple CEO |
| Apple Chairman |