NeXT
NeXT, Inc. was an American computer and software company founded in 1985 by Steve Jobs and a team of former Apple engineers, including veterans from the Macintosh and Lisa projects, shortly after Jobs' resignation from Apple following a boardroom dispute.[1] The company initially focused on developing high-end workstations for the higher education market, launching its flagship product, the NeXT Computer (often called the "Cube"), in 1988 as an integrated hardware-software system featuring advanced capabilities like optical storage, a built-in digital signal processor for voice recognition, and support for object-oriented programming languages.[2] Priced at $6,500, the NeXT Computer's innovative design and performance were praised, but its high cost limited commercial success, leading to fewer than 50,000 units sold across NeXT's hardware lineup, which later included the lower-priced NeXTstation.[2] In 1993, facing hardware market challenges, NeXT pivoted to a software-only business, renaming itself NeXT Software, Inc., and emphasizing its Unix-based NeXTSTEP operating system, which utilized the Mach kernel and Objective-C programming language to enable rapid application development through tools like Interface Builder and the AppKit GUI library.[1][3] NeXTSTEP's object-oriented framework revolutionized software creation by reducing user interface development time dramatically and supporting reusable components, with notable early applications including Tim Berners-Lee's WorldWideWeb browser in 1990.[3] The company expanded with OPENSTEP in 1994, a cross-platform version ported to architectures like Intel, Sun SPARC, HP PA-RISC, and Windows NT, and released WebObjects in 1996, an object-oriented platform for building dynamic web applications that powered sites like Dell's online store.[1][3] Financially, NeXT achieved its first positive net income of $1.03 million in 1994 after years of losses, and planned a 1996 initial public offering that was ultimately abandoned.[1] In December 1996, Apple acquired NeXT for $429 million in cash and 1.5 million shares, bringing Jobs back to Apple as an advisor and interim CEO; NeXT's technologies, particularly NeXTSTEP, became the foundation for Mac OS X (later macOS) in 2001 and iOS, influencing modern app development frameworks like Cocoa and powering billions of app downloads via the App Store since 2008.[1][3]Overview
Founding and Mission
In September 1985, following his ousting from Apple amid a power struggle with CEO John Sculley, Steve Jobs founded NeXT, Inc., with the aim of developing computers tailored for higher education.[4][5] Jobs had been removed from his role leading the Macintosh division earlier that year, prompting him to pursue a new venture focused on creating powerful workstations to empower university students and researchers.[6] The company was initially funded by Jobs himself, who invested approximately $12 million from his personal wealth derived from Apple stock sales.[7] Subsequent key investments included $20 million from billionaire Ross Perot in 1987, securing a 16% stake and a board seat, and $100 million from Canon in 1989.[8][9] NeXT's core mission centered on delivering advanced workstations for academic environments, prioritizing object-oriented programming environments, high-fidelity displays for precise graphics, and seamless integration of hardware and software to foster innovative computing experiences.[10][11] To build the company, Jobs assembled an elite initial team recruited from Apple's Macintosh division, including software engineer Bud Tribble, hardware designer George Crow, operations executive Rich Page, marketer Dan'l Lewin, and finance director Susan Barnes.[7] This recruitment led to a brief legal dispute with Apple, settled in early 1986 with restrictions on further hiring. Equity was distributed among the founding team to align incentives, with Jobs retaining a majority stake reflective of his primary investment and leadership role, while key members received significant shares to support long-term commitment.[12][9]Key Innovations
NeXT's pioneering approach to computing emphasized object-oriented design principles across both its software and hardware architectures, promoting modularity and extensibility to ensure long-term adaptability in a rapidly evolving technological landscape. In software, this was embodied through the development of Objective-C, a language that extended C with object-oriented features, enabling developers to create reusable components and interfaces that streamlined application development and maintenance.[3] The hardware complemented this by incorporating a modular system design, with standardized interfaces and upgradeable components like processor boards and memory slots, allowing users to future-proof their systems without full replacements.[13] A hallmark of NeXT's hardware innovation was the integration of a magneto-optical (MO) drive as a standard feature, providing 256 MB of high-capacity, removable storage in a 5.25-inch form factor—a significant advancement over contemporary floppy disks and early hard drives for data-intensive tasks like software development and multimedia.[14] This drive, showcased by Steve Jobs in 1988, combined the rewritability of magnetic media with the durability of optical technology, offering reliable backup and transfer capabilities that were ahead of mainstream adoption.[14] NeXT systems featured a built-in Motorola 56001 digital signal processor (DSP) chip, optimized for real-time audio processing and graphics acceleration, which delivered 16-bit, 44.1 kHz sound capabilities directly within the workstation.[15] This dedicated DSP enabled high-fidelity audio input/output and supported advanced signal processing tasks, such as filtering and synthesis, without burdening the main CPU, thereby enhancing performance in creative and scientific applications.[16] Aesthetically, NeXT redefined workstation design with its minimalist black cube enclosure, a 12-inch die-cast magnesium case that prioritized simplicity, durability, and heat dissipation while evoking a sense of premium craftsmanship.[17] Crafted by the design firm Frogdesign under Hartmut Esslinger, the all-black, seamless magnesium chassis not only protected internal components but also set a new standard for industrial design in computing, influencing the sleek, monochromatic aesthetics seen in modern high-end devices.[17]History
Background and Formation (1985–1986)
Following his ouster from Apple in September 1985 amid a power struggle with CEO John Sculley, Steve Jobs founded NeXT, Inc. on September 13, 1985, as a new venture focused on advanced computing for higher education.[18] Apple's board had stripped Jobs of operational control earlier that year, leading to his resignation as chairman.[12] The departure was complicated by a lawsuit filed by Apple on September 23, 1985, in Santa Clara County Superior Court, accusing Jobs of breaching fiduciary duties, misappropriating trade secrets, and planning a competing business while still affiliated with Apple.[12] The suit sought at least $5 million in damages and an injunction to bar Jobs from using Apple technology or recruiting its employees; it also highlighted Jobs' sale of a large block of Apple stock without disclosing his competing plans, which Apple viewed as an improper asset transfer.[12] The case was settled out of court in early 1986, with NeXT agreeing not to compete directly with any Apple products released before 1985 and to provide Apple advance previews of new NeXT products, effectively establishing a non-compete framework that allowed NeXT's independent operation.[18] To build NeXT's leadership, Jobs recruited a core team of former Apple Macintosh division talent, leveraging personal relationships forged during the Mac's development. Key hires included Joanna Hoffman as vice president of marketing, known for her strategic acumen and ability to challenge Jobs effectively, and Bud Tribble as vice president of software engineering, a physician-turned-programmer who had been instrumental in the Macintosh's software architecture.[19] Other early executives comprised George Crow (hardware engineering), Rich Page (manufacturing), Susan Barnes (finance), and Dan'l Lewin (market development), forming a tight-knit group of about seven initial staff members drawn from Apple's ranks despite the ongoing legal tensions over poaching.[18] Jobs himself served as chairman and de facto CEO, guiding the company's vision without an external CEO hire at launch.[20] NeXT's financial foundation began with Jobs' personal investment of $12 million, derived largely from his Apple stock holdings, providing the seed capital to cover initial operations and recruitment.[20] This was supplemented by early venture funding, culminating in a significant boost from billionaire Ross Perot's $20 million investment in August 1987 for a 16% stake, which valued NeXT at approximately $125 million and brought total external funding to over $130 million by year's end through additional investors.[18] These resources enabled rapid scaling, though NeXT operated at a high burn rate amid ambitious goals. Organizationally, NeXT established its initial headquarters in a modest office within Stanford University's Industrial Park at 3475 Deer Creek Road in Palo Alto, California, selected for its proximity to Silicon Valley talent and academic institutions.[21] Plans quickly advanced for a larger, custom-designed facility nearby to accommodate growth, reflecting Jobs' emphasis on an inspiring work environment from the outset.[18]Early Development and Launch (1987–1989)
Following its formation, NeXT, Inc. focused on developing a revolutionary workstation tailored for higher education and research environments. Engineering efforts centered on the NeXT Computer, a compact black cube measuring 12 inches on each side, constructed from die-cast magnesium for durability and aesthetics. The system incorporated a 25 MHz Motorola 68030 microprocessor, 8 MB of standard RAM (expandable to 64 MB via SIMM slots), and a 256 MB magneto-optical drive for storage. It also featured a 17-inch monochrome MegaPixel display supporting a resolution of 1120 × 832 pixels at 92 dpi, enabling high-quality grayscale rendering suitable for technical applications. A notable hardware innovation was the integrated Motorola 56001 digital signal processor (DSP), which facilitated advanced audio processing and voice recognition capabilities.[22][2] Development faced significant engineering challenges, including delays in integrating custom components and optimizing the Unix-based NeXTSTEP operating system for the hardware. Originally slated for a mid-1987 release at around $3,000, production issues—such as refining the optical storage and DSP integration—pushed the timeline to late 1988 and escalated costs. Despite these hurdles, NeXT invested heavily in a state-of-the-art automated factory in Fremont, California, capable of producing up to 150 units per day to meet anticipated academic demand.[22][23] The NeXT Computer made its public debut on October 12, 1988, at an extravagant invitation-only event held at Davies Symphony Hall in San Francisco, attended by over 3,000 guests including educators and developers. Steve Jobs, returning to the spotlight after his Apple departure, positioned the $6,500 machine as a "digital workstation for the rest of us," emphasizing its built-in Ethernet networking, object-oriented programming support, and bundled software like the Interface Builder for rapid application development. Priced for institutional buyers with education discounts available, it targeted universities and research labs to empower students and faculty in fields like computer science and engineering.[22][2] To refine the product ahead of full release, NeXT established early partnerships with select universities for beta testing, shipping initial units in 1989 pre-loaded with NeXTSTEP 0.9 beta software for real-world feedback on performance and usability. However, initial sales proved challenging, with only a few thousand units sold in the first year due to the steep price—far exceeding comparable systems like Sun workstations—and a sparse ecosystem of third-party applications, limiting its appeal beyond niche academic users.[22][2]Expansion and Challenges (1990–1992)
In 1990, NeXT expanded its hardware lineup with the release of the NeXTstation and an updated NeXTcube, both featuring the 25 MHz Motorola 68040 processor to address earlier performance limitations of the original NeXT Computer. The NeXTstation, priced at $4,995, was designed as a more affordable pizza-box workstation with a 17-inch monochrome display, 8 MB of RAM, and a 105 MB hard drive, targeting professional users in fields like finance and law. The revised NeXTcube, at $7,995, retained the cube form factor but incorporated the faster processor and similar storage options, aiming to appeal to higher-end workstation needs. These systems introduced optional color display support through add-ons like the NeXTdimension board, marking NeXT's push into visual computing applications such as color publishing.[24] NeXT sought to penetrate the enterprise market by positioning its workstations and NeXTSTEP operating system as superior alternatives for networked, object-oriented computing in business environments. The company targeted sectors like telecommunications, finance, and government, securing early adopters including the U.S. Postal Service and Fannie Mae. However, NeXT faced stiff competition from established players like Sun Microsystems and Hewlett-Packard, whose Unix-based workstations offered broader compatibility, lower costs, and extensive software ecosystems at a time when the workstation market was maturing rapidly. Sun's SPARC architecture and HP's PA-RISC systems dominated enterprise deployments, limiting NeXT's market share despite its innovative Display PostScript graphics and integrated development tools.[1] By late 1990, hardware sales remained disappointingly low, with fewer than 10,000 units of the original NeXT Computer sold since its 1988 debut, and initial uptake of the new models failing to accelerate. NeXT's automated factory, capable of $1 billion in annual production, stood largely idle, underscoring the disconnect between ambitious manufacturing investments and actual demand. Analysts projected that NeXT needed to sell at least 25,000 units in 1991 to achieve viability, but persistent issues like high pricing, limited third-party software, and the absence of a floppy drive hindered adoption. Cumulative hardware sales across all models stayed below 50,000 units by the end of 1992, reflecting the niche appeal in a market favoring more versatile competitors.[25][1] These challenges culminated in significant financial strain, with NeXT reporting annual losses ranging from $40 million to $66 million between 1991 and 1993, driven by sluggish hardware revenue and high operational costs. To stem the bleeding, the company implemented substantial staff reductions in 1991, cutting approximately 50% of its workforce from around 400 employees to focus resources on core strengths. Amid these difficulties, internal discussions intensified around a strategic pivot toward software licensing, recognizing NeXTSTEP's potential as a cross-platform operating system that could run on competitors' hardware like Sun and HP systems, rather than relying on proprietary workstations. This shift, formalized by late 1992, allowed NeXT to license its software to enterprise clients and avoid direct hardware competition.[1]Shift to Software Focus (1993–1996)
In February 1993, facing ongoing financial difficulties and low hardware sales, NeXT announced it would cease manufacturing computers and shift exclusively to software development.[26] This strategic pivot allowed the company to eliminate the costs associated with hardware production and focus on its advanced operating system and development tools. Later that year, NeXT rebranded as NeXT Software, Inc., reflecting its new emphasis on software licensing and portability.[27] A key part of this transition involved expanding the compatibility of NeXTSTEP, the company's flagship operating system. NeXTSTEP 3.0 was released in September 1992, initially supporting Motorola 68000-series processors on existing NeXT hardware, with enhancements including improved networking and developer tools.[28] Building on this, NeXTSTEP 3.1 arrived in May 1993, marking the first version to support both Motorola 68000 hardware and Intel x86 processors, enabling installation on standard PC-compatible systems and broadening its market reach beyond proprietary workstations.[28][29] To further promote cross-platform development, NeXT developed the OpenStep API in 1994, an object-oriented standard designed for building applications that could run on multiple operating systems without major rewrites. The specification was formally published on October 19, 1994, defining a portable framework for user interfaces, distributed objects, and tools compatible with platforms like NeXTSTEP, Sun Solaris, and others.[30] This initiative stemmed from partnerships, including a collaboration with Sun Microsystems announced in 1993, where Sun invested $10 million to integrate OpenStep into its systems, aiming to establish it as an industry standard for object-oriented computing.[27][31] Licensing agreements played a crucial role in sustaining NeXT during this period. Earlier, in 1988, NeXT secured a deal with IBM to port NeXTSTEP to its AIX workstations, followed by a 1992 option agreement worth a reported $60 million for broader integration, though IBM later canceled the full rollout.[32][33] These pacts, along with the Sun partnership, generated revenue through upfront fees and investments, providing vital cash flow as NeXT sold fewer than 50,000 hardware units overall and shifted to software sales that reached around $50 million annually by the mid-1990s—yet the company remained unprofitable amid high development costs.[26]Acquisition by Apple (1997)
By late 1996, Apple Computer was in dire financial straits, with declining market share, mounting losses, and a stock price hovering near $14 per share, prompting CEO Gil Amelio to seek a new operating system after the failure of the internal Copland project. Negotiations with NeXT began in November 1996, as Apple evaluated several options including BeOS in a competitive "bakeoff," ultimately selecting NeXT for its advanced object-oriented OS technology. The acquisition was announced on December 20, 1996, as a friendly stock transaction valued at approximately $400 million, though the final deal totaled $429 million including cash, shares, and assumption of debt, and was completed on February 7, 1997.[1] As part of the agreement, Steve Jobs, NeXT's chairman and largest shareholder, returned to Apple as an advisor to Amelio, while relinquishing his role at NeXT. Key NeXT executives transitioned to Apple, including Avie Tevanian as senior vice president of software engineering and Jonathan Rubinstein as senior vice president of hardware engineering. Jobs' influence grew rapidly; following Amelio's ouster, he was named interim CEO on September 16, 1997, setting the stage for Apple's revival.[1][34] The deal integrated NeXT's staff into Apple, with the independent NeXT operations shutting down by the end of 1997 as focus shifted to incorporating its assets. This infusion provided Apple an immediate strategic and financial lift through access to NeXT's innovative software platform and talented team, ending the NeXT brand but preserving its technological contributions. In a single sentence tie to broader impact, NeXT's software foundation would underpin Apple's subsequent operating systems like Mac OS X.[1][34]Products
Hardware Systems
The NeXT Computer was a compact workstation defined by its innovative one-foot magnesium cube enclosure, integrating all core components including processor, memory, and storage. It employed a Motorola 68030 CPU clocked at 25 MHz, paired with a Motorola 68882 floating-point unit (FPU) and a Motorola 56001 digital signal processor (DSP), both at 25 MHz, to handle compute-intensive tasks like graphics and audio processing.[35] Standard memory was 8 MB of RAM via 100 ns SIMMs, expandable to 64 MB in 4 MB increments, while video RAM totaled 256 KB for display output.[35][13] Storage featured a standard 256 MB removable magneto-optical (MO) drive for data portability, with optional 330 MB or 660 MB hard disk drives offering 16 ms seek times and up to 16 MB/s transfer rates.[35] The system supported built-in 10 Mbps Ethernet for networking, four 32-bit NuBus expansion slots running at 25 MHz, and 12 DMA channels for efficient I/O operations.[35] The NeXTcube extended the original design into a tower configuration in 1990, preserving the cubic magnesium chassis but allowing for greater internal expandability while maintaining compatibility with prior peripherals. Its core was a Motorola 68040 CPU at 25 MHz, incorporating an integrated FPU, paged memory management unit (PMMU), and 8 KB on-chip cache for improved performance over the 68030.[36] Memory started at 16 MB and scaled to 64 MB using 72-pin DRAM SIMMs, with optional parity checking; the DSP retained 24 KB static RAM, expandable to 96 KB.[36] Storage options included a 2.88 MB floppy drive compatible with multiple formats, alongside hard disks from 400 MB (13 ms seek, 4 MB/s transfer) up to 2.8 GB (15 ms seek, 5 MB/s transfer).[36] Key features encompassed three NeXTbus slots for high-bandwidth expansion (up to 100 MB/s burst), SCSI support for up to seven peripherals at 4.8 MB/s, dual RS-423 serial ports, and the same 44.1 kHz 16-bit stereo audio via the 56001 DSP.[36] The NeXTstation, introduced alongside the NeXTcube in 1990, shifted to a low-profile "pizza-box" chassis to target broader accessibility at a $5,000 price point, emphasizing efficiency in a smaller footprint without sacrificing core capabilities.[37] It used a 25 MHz Motorola 68040 CPU with integrated FPU and PMMU, plus the 25 MHz 56001 DSP, delivering metrics like 18.6 Dhrystone MIPS and 10.9 SPEC marks.[38] Base memory was 8 MB, expandable to 32 MB (or 128 MB with denser SIMMs) in two-SIMM pairs at 70 ns, with the DSP using 24 KB static RAM expandable to 96 KB.[38] Storage comprised a built-in 2.88 MB 3.5-inch floppy drive supporting ED, HD, and DD formats, paired with hard disks starting at 105 MB (17 ms seek, 4 MB/s transfer) and options up to 400 MB.[38] The NeXTstation Color variant added 1.5 MB video RAM for 16-bit color (4096 colors) at 1120 × 832 resolution, while standard models used 2 bits/pixel monochrome; both included built-in Ethernet (thin and twisted-pair), SCSI-2 ports, dual serial interfaces, and CD-quality stereo output.[39][38] A Turbo edition later boosted the CPU to 33 MHz with 16 MB base RAM.[38] NeXT's hardware lineup was complemented by specialized accessories, including the 17-inch MegaPixel Display with 1120 × 832 resolution at 92 dpi and 68 Hz refresh for precise grayscale rendering, and the 16-inch MegaPixel Color Display supporting 16-bit color depth.[39] All systems featured native Ethernet integration for seamless networking, with the original NeXT Computer and successors providing ports for thin coax (10BASE2) and twisted-pair (10BASE-T) cabling.[35][38]| Product | CPU | RAM (Standard/Max) | Storage | Display Support | Key Features |
|---|---|---|---|---|---|
| NeXT Computer (1988) | 68030 @ 25 MHz + 68882 FPU + 56001 DSP | 8 MB / 64 MB | 256 MB MO drive; optional 330/660 MB HDD | 17" MegaPixel (1120×832, 4 grayscale) | Magnesium cube; built-in Ethernet; 4 NuBus slots |
| NeXTcube (1990) | 68040 @ 25 MHz + 56001 DSP | 16 MB / 64 MB | 2.88 MB floppy; 400 MB–2.8 GB HDD | 17" MegaPixel (1120×832, monochrome) | Tower cube; 3 NeXTbus slots; SCSI; stereo audio |
| NeXTstation (1990) | 68040 @ 25 MHz + 56001 DSP | 8 MB / 32 MB (128 MB max) | 2.88 MB floppy; 105–400 MB HDD | 17" MegaPixel (1120×832, monochrome or 4096 colors) | Pizza-box; built-in Ethernet/SCSI; optional Turbo @ 33 MHz |