# Steve Jobs Announces Apple's Largest Quarterly Loss in 1997 Apple's $161 million loss marked a turning point in its corporate history. - **Source:** [Cult of Mac](https://brifing.si/source/7e2968d9-bc24-4286-8f9e-146807f06336) - **Published:** 2026-09-26 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/8e882154-d173-4238-a208-514742fd7854 ## Apple's Historic Loss On September 26, 1997, Steve Jobs announced Apple's largest quarterly loss of $161 million. This marked a low point for the company, which had been struggling with mismanagement and a bloated product lineup. Jobs, who had recently returned as interim CEO, faced the daunting task of turning the company around. ## Predecessor's Impact The massive loss was a result of decisions made by Jobs' predecessor, Gil Amelio. During Amelio's 500-day tenure, Apple lost $1.6 billion, erasing all profits since fiscal 1991. Amelio stepped down on July 7, 1997, paving the way for Jobs to take over and begin the company's recovery. ## Positive Signs Amid Loss Despite the $161 million loss, there were positive developments. Apple wrote off $75 million to buy back its Mac OS license from Power Computing, ending the clone Macs era. Additionally, the launch of Mac OS 8 sold 1.2 million copies in two weeks, showcasing Apple's strong fan base. ## Mac OS 8 Success Mac OS 8's launch was a significant success, selling 1.2 million copies in its first two weeks. This performance exceeded expectations and demonstrated Apple's ability to innovate. While it didn't immediately restore profitability, it was a crucial step in rebuilding the company's reputation. ## Financial Strategy Apple CFO Fred Anderson emphasized the company's focus on returning to sustained profitability. The strategy included reducing expenses and improving gross margins. This cautious approach set the stage for Apple's eventual turnaround in the following year. ## 1998 Turnaround 1998 marked the beginning of Apple's recovery with the release of the colorful iMac. The company returned to profitability the next quarter, signaling a dramatic shift from its previous struggles. This turnaround laid the foundation for Apple's future dominance in the tech industry. ## Shareholder Rewards Shareholders who held onto their Apple stock during the tough times reaped significant rewards. Apple's market cap eventually soared to nearly $5 trillion, showcasing the long-term benefits of Jobs' leadership and strategic decisions. ## Jobs' Leadership Steve Jobs' return as interim CEO was pivotal in Apple's recovery. His focus on innovation and streamlining the product lineup helped the company regain its footing. Jobs' leadership transformed Apple from a struggling company to a tech giant. ## End of Clone Era The $75 million write-off to buy back the Mac OS license from Power Computing marked the end of the clone Macs era. This move allowed Apple to regain control over its operating system, a critical step in its recovery and future success. ## Legacy of Recovery Apple's $161 million loss in 1997 is now seen as a turning point in its history. The company's subsequent recovery and growth under Steve Jobs' leadership have become a legendary example of corporate resilience and innovation in the tech industry. ## Sources covering this story - https://www.cultofmac.com/apple-history/apple-biggest-loss — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._