Jobs had realized there was a huge gap in the computer market. At that time almost all computers were mainframes. They were so large that one could fill a room, and so costly that individuals could not afford to buy them. Advances in electronics, however, meant that computer components were getting smaller and the power of the computer was increasing.
Jobs and Wozniak redesigned their computer, with the idea of selling it to individual users. The Apple II went to market in 1977, with impressive first year sales of $2.7 million. The company's sales grew to $200 million within three years. This was one of the most phenomenal cases of corporate growth in U.S. history. Jobs and Wozniak had opened an entirely new market—personal computers. Personal computers began an entirely new way of processing information.
By 1980 the personal computer era was well underway. Apple was continually forced to improve its products to remain ahead, as more competitors entered the marketplace. Apple introduced the Apple III, but the new model suffered technical and marketing problems. It was withdrawn from the market, and was later reworked and reintroduced.
Jobs continued to be the marketing force behind Apple. Early in 1983 he unveiled the Lisa. It was designed for people possessing minimal computer experience. It did not sell well, however, because it was more expensive than personal computers sold by competitors. Apple's biggest competitor was International Business Machines (IBM). By 1983 it was estimated that Apple had lost half of its market share (part of an industry's sales that a specific company has) to IBM.