In the 1980s, expanding technology ushered unprecedented numbers of Americans into the computer and information age. Thanks to the microchip, computers that used to be the size of a room could now be placed on a desktop.

It was actually in 1971 that the world's first microprocessor, containing all the main components of a computer, was developed. The chips became smaller and smaller with time, so computers became more and more affordable and convenient for business and home use. Cheap mass production brought forth handheld electronic gadgets that transformed everyday life. Calculators, once the size of a box on a desk, shrank to the size of a credit card. Much of this occurred south of San Francisco in what has become known as Silicon Valley, a mecca of high-technology start-up operations.

Apple Computer

At the forefront of this revolution were two young entrepreneurial spirits — Steve Jobs and Steve Wozniak — both Californians with no special programming or electronics knowledge. Working together in a garage, in 1977 they developed the first user-friendly computer, designed for mass marketing rather than big business, called the Apple II. It was followed by the Macintosh in 1984. Jobs and Wozniak named their operation the Apple Computer Company. At the core of their success was the graphic user interface (GUI), which allowed a computer user to point and click on particular icons rather than type complicated computer codes into a machine.

Microsoft

Another computer whiz dropped out of Harvard with the vision that software was where the real excitement and money lay. Bill Gates, with his company Microsoft, was hired by IBM (International Business Machines) to develop an operating system for the corporation's computers, which was called MS-DOS. IBM, which had built personal computers, or “PCs,” in 1981 around the latest Intel microprocessor, failed to claim exclusive rights for MS-DOS, and Microsoft grew steadily in the industry. Soon, Microsoft developed its own GUI system with Windows 3.0 software. It took the computing world by storm. Gates helped other companies use reverse engineering to circumvent patent law, creating almost identical computers (or clones) of the IBM hardware. Today IBM compatibles are widely seen in stores, homes, and business, and as of this writing, Bill Gates is one of the richest men in the world. As for Apple Computer, it developed a loyal following with fans of the Macintosh but never captured the market share held by the compatibles market.