2001 - The iPod, iTunes and the Apple Store are born

Macworld photo by Rick LePage

On May 15, 2001, Jobs unveiled the first Apple Store. They were such a hit that he later remarked, "We had 26 million visitors during the holiday quarter in retail stores. I mean think about it, this is more people than live in any state in our union besides California."

A few months later, Jobs announced their next big hit, the iPod. The portable music player went from concept to market in about 8 months. The iPod undoubtedly changed the music industry, but iTunes, which was also introduced this year, was Apple's true genius.

iTunes broke music industry standards and helped the major labels including Universal and Warner, fight piracy. "We said: These [music subscriptions] services that are out there now are going to fail...People don't want to buy their music that way," Jobs tells Rolling Stone.

"They're going to want to buy downloads. People want to own their music. You don't want to rent your music -- and then, one day, if you stop paying, all your music goes away...It's cheaper to buy and that's what they're gonna want to do.

"80% of the people stealing music online don't really want to be thieves. But [it's so] compelling -- it's instant gratification. We don't see how you convince people to stop being thieves, unless you can offer them a carrot, not just a stick."

The Lesson: With multiple product hits, Apple's comeback was in full swing. Each product launch became highly-anticipated events by media and the public alike. The company proved with the iPod that they could execute ideas quickly, and successfully dominate other hardware besides computers.

The Apple Store was a brilliant solution to a problem Apple was having - other retailers weren't giving Apple products proper shelf-life and space. Apple was able to create a real consumer experience in their stores, and give their products the displays they deserved. Gigaom writes, "When you enter the Apple Retail Store, you find a well-lit place that is inviting and aesthetically appealing...More importantly, the company lets you play with its devices as much as you want. Nothing makes the sale as effectively as the iPhone or the iPod touch itself. You like what you see, then you buy."

Take a tour of the first Apple Store in Tyson's Corner Mall in Virginia, below.