All language subtitles for ENGSteve.Jobs.The.Lost.Interview

af Afrikaans
sq Albanian
am Amharic
ar Arabic
hy Armenian
az Azerbaijani
eu Basque
be Belarusian
bn Bengali
bs Bosnian Download
bg Bulgarian
ca Catalan
ceb Cebuano
ny Chichewa
zh-CN Chinese (Simplified)
zh-TW Chinese (Traditional)
co Corsican
hr Croatian
cs Czech
da Danish
nl Dutch
en English
eo Esperanto
et Estonian
tl Filipino
fi Finnish
fr French
fy Frisian
gl Galician
ka Georgian
de German
el Greek
gu Gujarati
ht Haitian Creole
ha Hausa
haw Hawaiian
iw Hebrew
hi Hindi
hmn Hmong
hu Hungarian
is Icelandic
ig Igbo
id Indonesian
ga Irish
it Italian
ja Japanese
jw Javanese
kn Kannada
kk Kazakh
km Khmer
ko Korean
ku Kurdish (Kurmanji)
ky Kyrgyz
lo Lao
la Latin
lv Latvian
lt Lithuanian
lb Luxembourgish
mk Macedonian
mg Malagasy
ms Malay
ml Malayalam
mt Maltese
mi Maori
mr Marathi
mn Mongolian
my Myanmar (Burmese)
ne Nepali
no Norwegian
ps Pashto
fa Persian
pl Polish
pt Portuguese
pa Punjabi
ro Romanian
ru Russian
sm Samoan
gd Scots Gaelic
sr Serbian
st Sesotho
sn Shona
sd Sindhi
si Sinhala
sk Slovak
sl Slovenian
so Somali
es Spanish
su Sundanese
sw Swahili
sv Swedish
tg Tajik
ta Tamil
te Telugu
th Thai
tr Turkish
uk Ukrainian
ur Urdu
uz Uzbek
vi Vietnamese
cy Welsh
xh Xhosa
yi Yiddish
yo Yoruba
zu Zulu
or Odia (Oriya)
rw Kinyarwanda
tk Turkmen
tt Tatar
ug Uyghur
Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:27,800 --> 00:00:29,385 I'm Bob Cringely. 2 00:00:29,511 --> 00:00:31,054 Sixteen years ago, 3 00:00:31,179 --> 00:00:33,556 when I was making my television series, Triumph of the Nerds, 4 00:00:33,681 --> 00:00:35,975 I interviewed Steve Jobs. 5 00:00:36,100 --> 00:00:37,894 That was in 1995. 6 00:00:38,019 --> 00:00:40,146 Ten years earlier, Steve had left Apple, 7 00:00:40,271 --> 00:00:43,024 following a bruising struggle with John Sculley, 8 00:00:43,149 --> 00:00:46,027 the CEO he brought into the company. 9 00:00:46,152 --> 00:00:48,488 At the time of our interview, Steve was running NeXT, 10 00:00:48,655 --> 00:00:50,698 the niche computer company he founded 11 00:00:50,823 --> 00:00:52,367 after leaving Apple. 12 00:00:52,492 --> 00:00:54,118 Little did we know that within 18 months, 13 00:00:54,244 --> 00:00:55,787 he would sell NeXT to Apple, 14 00:00:55,912 --> 00:00:58,915 and six months later, he'd be running the place. 15 00:00:59,040 --> 00:01:00,625 The way things work in television, 16 00:01:00,750 --> 00:01:03,294 we used only a part of that interview in the series. 17 00:01:03,419 --> 00:01:06,089 And for years, we thought the interview was lost forever 18 00:01:06,214 --> 00:01:08,341 because the master tape went missing 19 00:01:08,466 --> 00:01:12,470 while being shipped from London to the US in the 1990s. 20 00:01:12,595 --> 00:01:15,932 Then, just a few days ago, series director Paul Sen 21 00:01:16,057 --> 00:01:19,561 found a VHS copy of that interview in his garage. 22 00:01:19,686 --> 00:01:22,522 There are very few TV interviews with Steve Jobs, 23 00:01:22,647 --> 00:01:24,524 and almost no good ones. 24 00:01:24,649 --> 00:01:29,696 They rarely show the charisma, candor, and vision that this interview does. 25 00:01:29,821 --> 00:01:31,990 And so, to honor an amazing man, 26 00:01:32,115 --> 00:01:34,868 here's that interview in its entirety. 27 00:01:34,993 --> 00:01:38,329 Most of this has never been seen before. 28 00:01:40,415 --> 00:01:44,961 CRINGELY: So how did you get involved with personal computers? 29 00:01:45,086 --> 00:01:47,964 Hmm. Well, um... 30 00:01:49,966 --> 00:01:53,970 I ran into my first computer when I was about 10 or 11. 31 00:01:55,013 --> 00:01:57,265 And it's hard to remember back then. 32 00:01:57,390 --> 00:01:59,684 But I'm an old fossil now. I'm an old fossil. 33 00:01:59,809 --> 00:02:02,937 So when I was 10 or 11 was about 30 years ago. 34 00:02:03,062 --> 00:02:05,231 And no one had ever seen a computer. 35 00:02:05,356 --> 00:02:07,650 To the extent that they'd seen them in movies, 36 00:02:07,775 --> 00:02:09,777 and they were these big boxes with whirring... 37 00:02:09,903 --> 00:02:12,030 For some reason, they fixated on the tape drives 38 00:02:12,197 --> 00:02:14,407 as being the icon of what the computer was, 39 00:02:14,532 --> 00:02:16,659 or flashing lights somehow. 40 00:02:16,784 --> 00:02:18,244 And so nobody had ever seen one. 41 00:02:18,369 --> 00:02:20,205 They were very mysterious, very powerful things, 42 00:02:20,371 --> 00:02:23,041 that did something in the background. 43 00:02:23,166 --> 00:02:26,044 And so, to see one and actually get to use one 44 00:02:26,169 --> 00:02:27,378 was a real privilege back then. 45 00:02:27,504 --> 00:02:30,465 And I got into NASA, the Ames Research Center down here. 46 00:02:30,590 --> 00:02:32,884 I got to use a time-sharing terminal. 47 00:02:33,009 --> 00:02:34,427 So I didn't actually see the computer, 48 00:02:34,594 --> 00:02:36,679 but I saw a time-sharing terminal. 49 00:02:36,804 --> 00:02:39,849 And in those days... Again, it's hard to remember how primitive it was. 50 00:02:39,974 --> 00:02:45,021 There was no such thing as a computer with a graphics video display. 51 00:02:45,146 --> 00:02:47,023 It was literally a printer. 52 00:02:47,148 --> 00:02:49,609 It was a teletype printer with a keyboard on it. 53 00:02:49,734 --> 00:02:52,111 And so you would keyboard these commands in, 54 00:02:52,237 --> 00:02:54,030 and then you would wait for a while, and the thing would go... 55 00:02:54,155 --> 00:02:55,615 (MIMICS CLACKING) 56 00:02:55,740 --> 00:02:57,951 And it would tell you something out. 57 00:02:58,076 --> 00:03:01,788 But even with that, it was still remarkable, 58 00:03:01,913 --> 00:03:03,414 especially for a 10-year-old, 59 00:03:03,540 --> 00:03:07,544 that you could write a program in BASIC, let's say, or FORTRAN. 60 00:03:07,669 --> 00:03:14,342 And actually, this machine would take your idea, 61 00:03:17,470 --> 00:03:19,722 and it would execute your idea 62 00:03:19,848 --> 00:03:21,850 and give you back some results. 63 00:03:21,975 --> 00:03:23,852 And if they were the results that you predicted, 64 00:03:23,977 --> 00:03:28,231 your program really worked. It was an incredibly thrilling experience. 65 00:03:28,356 --> 00:03:30,191 So, I became 66 00:03:33,236 --> 00:03:35,864 very captivated by a computer. 67 00:03:35,989 --> 00:03:38,408 And a computer, to me, was still a little mysterious, 68 00:03:38,533 --> 00:03:39,742 'cause it was at the other end of this wire, 69 00:03:39,868 --> 00:03:42,704 and I'd never really seen the actual computer itself. 70 00:03:42,871 --> 00:03:45,999 And then I got tours of computers after that, and saw the insides. 71 00:03:46,124 --> 00:03:49,085 And then I was part of this group at Hewlett-Packard. 72 00:03:49,210 --> 00:03:54,674 When I was 12, I called up Bill Hewlett, who lived in Hewlett-Packard at the time. 73 00:03:54,799 --> 00:03:56,384 And again, this dates me, 74 00:03:56,509 --> 00:03:58,845 but there was no such thing as an unlisted telephone number then. 75 00:03:58,970 --> 00:04:01,556 So I could just look in the book, and looked his name up. 76 00:04:01,681 --> 00:04:03,516 And he answered the phone, 77 00:04:03,641 --> 00:04:05,602 and I said, "Hi. My name's Steve Jobs. 78 00:04:05,727 --> 00:04:07,270 "You don't know me, but I'm 12 years old, 79 00:04:07,395 --> 00:04:10,106 "and I'm building a frequency counter, 80 00:04:10,273 --> 00:04:11,858 "and I'd like some spare parts." 81 00:04:11,983 --> 00:04:14,652 And so, he talked to me for about 20 minutes. 82 00:04:14,777 --> 00:04:16,571 I'll never forget it as long as I live. 83 00:04:16,696 --> 00:04:18,406 And he gave me the parts, 84 00:04:18,531 --> 00:04:21,075 but he also gave me a job working at Hewlett-Packard that summer. 85 00:04:21,201 --> 00:04:23,494 And I was 12 years old then. 86 00:04:23,620 --> 00:04:27,499 And that really made a remarkable influence on me. 87 00:04:27,665 --> 00:04:31,211 Hewlett-Packard was really the only company 88 00:04:31,336 --> 00:04:33,588 I'd ever seen in my life at that age, 89 00:04:33,755 --> 00:04:37,300 and it formed my view of what a company was, 90 00:04:37,425 --> 00:04:40,553 and how well they treated their employees. 91 00:04:40,678 --> 00:04:45,016 They didn't know about cholesterol back then. But at that time, 92 00:04:45,141 --> 00:04:48,811 they used to bring a big cartful of donuts and coffee out at 10:00 every morning. 93 00:04:48,978 --> 00:04:50,563 Everybody would take a coffee and donut break. 94 00:04:50,688 --> 00:04:54,442 And just little things like that, it was clear that 95 00:04:56,402 --> 00:05:00,073 the company recognized that its true value was its employees. 96 00:05:00,240 --> 00:05:04,118 So anyway, things led to things with Hewlett-Packard, 97 00:05:04,285 --> 00:05:06,579 and I started going up to their Palo Alto research labs 98 00:05:06,704 --> 00:05:09,582 every Tuesday night with a small group of people 99 00:05:09,707 --> 00:05:11,626 to meet some of their researchers and stuff, 100 00:05:11,751 --> 00:05:14,754 and I saw the first desktop computer ever made, 101 00:05:14,879 --> 00:05:17,507 which was the Hewlett-Packard 9100. 102 00:05:17,632 --> 00:05:20,802 It was about as big as a suitcase, 103 00:05:20,927 --> 00:05:24,264 but it actually had a small cathode-ray tube display in it, 104 00:05:24,389 --> 00:05:26,599 and it was completely self-contained. 105 00:05:26,724 --> 00:05:29,686 There was no wire going off behind the curtain somewhere. 106 00:05:29,811 --> 00:05:31,896 And I fell in love with it. 107 00:05:32,021 --> 00:05:35,066 And you could program it in BASIC and APL. 108 00:05:36,818 --> 00:05:40,822 And I would just, for hours, get a ride up to Hewlett-Packard 109 00:05:40,989 --> 00:05:45,368 and just hang around that machine and write programs for it. 110 00:05:45,743 --> 00:05:47,787 And so that was the early days. 111 00:05:47,912 --> 00:05:52,083 And I met Steve Wozniak around that time, too. 112 00:05:52,208 --> 00:05:56,796 Well, maybe a little earlier when I was about 14, 15 years old. 113 00:05:57,463 --> 00:06:00,258 And we immediately hit it off. 114 00:06:00,383 --> 00:06:02,886 He was the first person I'd met that knew more about electronics than I did, 115 00:06:03,011 --> 00:06:04,846 and so I was... 116 00:06:04,971 --> 00:06:08,725 I liked him a lot, and he was maybe five years older than I. 117 00:06:08,850 --> 00:06:12,520 He'd gone off to college and gotten kicked out for pulling pranks, 118 00:06:12,645 --> 00:06:13,897 and was living with his parents, 119 00:06:14,022 --> 00:06:17,066 and going to De Anza, the local junior college. 120 00:06:17,192 --> 00:06:21,362 So we became fast friends, and started doing projects together. 121 00:06:21,487 --> 00:06:23,281 We read about... 122 00:06:24,532 --> 00:06:28,077 We read about the story in Esquire magazine 123 00:06:28,203 --> 00:06:30,788 about this guy named Captain Crunch 124 00:06:30,914 --> 00:06:32,832 who could supposedly make free telephone calls. 125 00:06:32,957 --> 00:06:34,667 You've heard about this, I'm sure. 126 00:06:34,792 --> 00:06:39,589 And again, we were captivated. 127 00:06:39,714 --> 00:06:41,549 How could anybody do this? 128 00:06:41,674 --> 00:06:44,219 And we thought it must be a hoax. 129 00:06:44,344 --> 00:06:46,721 And we started looking through the libraries, 130 00:06:46,846 --> 00:06:52,310 looking for the secret tones that would allow you to do this. 131 00:06:52,435 --> 00:06:54,604 And it turned out, we were at 132 00:06:54,729 --> 00:06:57,774 Stanford Linear Accelerator Center one night, 133 00:06:57,899 --> 00:07:01,528 and way in the bowels of their technical library, 134 00:07:01,653 --> 00:07:07,158 way down at the last bookshelf, in the corner bottom rack, 135 00:07:07,283 --> 00:07:12,831 we found an AT&T technical journal that laid out the whole thing. 136 00:07:12,956 --> 00:07:15,083 And that's another moment I'll never forget. 137 00:07:15,208 --> 00:07:20,046 When we saw this journal, we thought, "My God! It's all real." 138 00:07:20,171 --> 00:07:23,299 And so, we set out to build a device to make these tones. 139 00:07:23,424 --> 00:07:25,301 And the way it worked was, 140 00:07:25,426 --> 00:07:27,387 you know when you make a long-distance call, you used to hear... 141 00:07:27,512 --> 00:07:28,513 (MIMICS DIAL TONE) 142 00:07:28,638 --> 00:07:29,597 Right? In the background? 143 00:07:29,722 --> 00:07:31,057 They were tones that sounded like 144 00:07:31,182 --> 00:07:32,684 the touch tone you could make on your phone, 145 00:07:32,809 --> 00:07:34,602 but they were a different frequency, so you couldn't make them. 146 00:07:34,727 --> 00:07:39,649 It turned out that, that was the signal from one telephone computer to another 147 00:07:39,774 --> 00:07:41,568 controlling the computers in the network. 148 00:07:41,693 --> 00:07:44,195 And AT&T made a fatal flaw when they designed 149 00:07:44,320 --> 00:07:47,115 the original telephone network, digital telephone network, 150 00:07:47,240 --> 00:07:49,909 was they put the signaling from computer to computer 151 00:07:50,034 --> 00:07:52,287 in the same band as your voice, 152 00:07:52,412 --> 00:07:54,289 which meant that if you could make those same signals, 153 00:07:54,414 --> 00:07:56,166 you could put it right in through the handset. 154 00:07:56,332 --> 00:08:01,004 And literally, the entire AT&T international phone network 155 00:08:01,129 --> 00:08:04,132 would think you were an AT&T computer. 156 00:08:04,257 --> 00:08:09,804 So, after three weeks, we finally built a box like this that worked. 157 00:08:09,929 --> 00:08:14,184 And I remember, the first call we made was down to LA, 158 00:08:14,309 --> 00:08:16,144 one of Woz's relatives down in Pasadena. 159 00:08:16,269 --> 00:08:17,687 We dialed the wrong number, 160 00:08:17,812 --> 00:08:19,981 but we woke some guy up in the middle of the night, 161 00:08:20,106 --> 00:08:21,983 and we were yelling at him like, 162 00:08:22,108 --> 00:08:24,235 "Don't you understand we made this call for free?" 163 00:08:24,360 --> 00:08:25,904 And this person didn't appreciate that. 164 00:08:26,029 --> 00:08:28,281 But it was miraculous, 165 00:08:28,406 --> 00:08:31,784 and we built these little boxes to do blue boxing, as it was called, 166 00:08:31,951 --> 00:08:33,828 and we put a little note in the bottom of them. 167 00:08:33,995 --> 00:08:36,498 Our logo was, "He's got the whole world in his hands." 168 00:08:36,623 --> 00:08:39,709 (CHUCKLES) And they worked. 169 00:08:39,834 --> 00:08:41,002 We built the best blue box in the world. 170 00:08:41,169 --> 00:08:43,004 It was all digital. No adjustments. 171 00:08:43,171 --> 00:08:45,465 And so you could go up to a pay phone 172 00:08:45,590 --> 00:08:49,719 and you could take a trunk over to White Plains, 173 00:08:49,844 --> 00:08:52,514 and then take a satellite over to Europe, and then go to Turkey, 174 00:08:52,639 --> 00:08:54,891 take a cable back to Atlanta. 175 00:08:55,016 --> 00:08:56,893 And you could go around the world. 176 00:08:57,018 --> 00:08:59,103 You could go around the world five or six times 177 00:08:59,229 --> 00:09:02,273 'cause we learned all the codes for how to get on the satellites and stuff. 178 00:09:02,398 --> 00:09:04,108 And then, you could call the pay phone next door, 179 00:09:04,234 --> 00:09:05,860 and so you could shout in the phone, 180 00:09:05,985 --> 00:09:07,820 and after about a minute, it would come out the other phone. 181 00:09:07,946 --> 00:09:10,740 It was... It was miraculous. 182 00:09:10,865 --> 00:09:13,493 And you might ask, "Well, what's so interesting about that?" 183 00:09:13,618 --> 00:09:16,913 What's so interesting is that we were young. 184 00:09:17,038 --> 00:09:19,290 And what we learned was 185 00:09:19,415 --> 00:09:24,671 that we could build something ourselves 186 00:09:24,796 --> 00:09:30,760 that could control billions of dollars' worth of infrastructure in the world. 187 00:09:32,470 --> 00:09:36,391 That was what we learned, was that us two... 188 00:09:37,141 --> 00:09:38,810 We didn't know much. 189 00:09:38,935 --> 00:09:43,565 We could build a little thing that could control a giant thing. 190 00:09:43,857 --> 00:09:46,109 And that was an incredible lesson. 191 00:09:46,234 --> 00:09:48,611 I don't think there would have ever been an Apple computer 192 00:09:48,736 --> 00:09:50,572 had there not been blue boxing. 193 00:09:50,697 --> 00:09:53,241 -Woz said you called the Pope? -Yeah, we did call the Pope. 194 00:09:53,408 --> 00:09:56,619 He pretended to be Henry Kissinger. 195 00:09:56,744 --> 00:09:58,705 And we got the number of the Vatican, and we called the Pope. 196 00:09:58,830 --> 00:10:01,791 And they started waking people up in the hierarchy. 197 00:10:01,916 --> 00:10:03,710 I don't know, cardinals and this and that. 198 00:10:03,835 --> 00:10:06,963 And they actually sent someone to wake up the Pope 199 00:10:07,088 --> 00:10:09,424 when, finally, we just burst out laughing, 200 00:10:09,549 --> 00:10:12,343 and they realized that we weren't Henry Kissinger. 201 00:10:12,468 --> 00:10:15,638 Yeah, and so, we never got to talk to the Pope, but it was very funny. 202 00:10:15,805 --> 00:10:17,557 So... 203 00:10:17,682 --> 00:10:22,854 So the jump from blue boxes to personal computers, what sparked that? 204 00:10:23,521 --> 00:10:26,191 Well... 205 00:10:26,316 --> 00:10:31,905 Necessity, in the sense that there was time-sharing computers available, 206 00:10:32,030 --> 00:10:33,656 and there was a time-sharing company in Mountain View 207 00:10:33,781 --> 00:10:35,867 that we could get free time on. 208 00:10:35,992 --> 00:10:39,370 So, uh... But we needed a terminal, 209 00:10:39,495 --> 00:10:42,707 and we couldn't afford one, so we designed and built one. 210 00:10:42,832 --> 00:10:46,294 And that was the first thing we ever did. We built this terminal. 211 00:10:46,461 --> 00:10:49,672 And so, what an Apple I was, 212 00:10:49,797 --> 00:10:52,342 was really an extension of this terminal 213 00:10:52,509 --> 00:10:54,969 putting a microprocessor on the back end. 214 00:10:55,094 --> 00:10:58,389 That's what it was. It was really two separate projects put together. 215 00:10:58,556 --> 00:10:59,891 So first we built the terminal, 216 00:11:00,016 --> 00:11:02,268 and then we built the Apple I. 217 00:11:03,937 --> 00:11:08,107 And we really built it for ourselves 218 00:11:08,233 --> 00:11:12,904 because we couldn't afford to buy anything. 219 00:11:13,029 --> 00:11:15,281 And we'd scavenge parts here and there and stuff, 220 00:11:15,406 --> 00:11:17,325 and we'd build these all by hand. 221 00:11:17,450 --> 00:11:20,662 They'd take 40 to 80 hours to build one, and then they'd always be breaking 222 00:11:20,787 --> 00:11:23,414 'cause there's all these tiny little wires. 223 00:11:23,540 --> 00:11:27,293 And so, it turned out, a lot of our friends wanted to build them, too. 224 00:11:27,418 --> 00:11:31,172 And although they could scavenge most of the parts as well, 225 00:11:31,297 --> 00:11:33,550 they didn't have the skills to build them 226 00:11:33,675 --> 00:11:36,761 that we had acquired by training ourselves through building them. 227 00:11:36,886 --> 00:11:39,597 And so we ended up helping them build most of their computers, 228 00:11:39,722 --> 00:11:41,933 and it was really taking up all of our time. 229 00:11:42,058 --> 00:11:45,979 And we thought if we could make what's called a printed circuit board, 230 00:11:46,104 --> 00:11:48,773 which is a piece of fiberglass with copper on both sides 231 00:11:48,898 --> 00:11:52,026 that's etched to form the wires so that you could build a computer... 232 00:11:52,151 --> 00:11:55,613 You could build an Apple I in a few hours instead of 40 hours. 233 00:11:55,738 --> 00:11:58,867 If we only had one of those, we could sell them to all our friends 234 00:11:58,992 --> 00:12:03,663 for as much as it cost us to make them, and make our money back. 235 00:12:04,956 --> 00:12:07,333 And everybody would be happy, and we'd get a life again. 236 00:12:07,458 --> 00:12:08,918 So we did that. 237 00:12:09,043 --> 00:12:13,006 I sold my Volkswagen Bus, and Steve sold his calculator, 238 00:12:13,131 --> 00:12:14,632 and we got enough money to pay a friend of ours 239 00:12:14,757 --> 00:12:18,469 to make the artwork to make a printed circuit board. 240 00:12:18,595 --> 00:12:19,971 And we made some printed circuit boards, 241 00:12:20,138 --> 00:12:22,432 and we sold some to our friends. 242 00:12:23,808 --> 00:12:25,768 And I was trying to sell the rest of them, 243 00:12:25,894 --> 00:12:29,689 so that we could get our Microbus and calculator back. 244 00:12:29,814 --> 00:12:32,025 And I walked into the first computer store in the world 245 00:12:32,150 --> 00:12:36,154 which was the Byte Shop of Mountain View, I think, on El Camino. 246 00:12:36,321 --> 00:12:37,989 (STAMMERING) 247 00:12:39,532 --> 00:12:42,869 It metamorphosized into an adult bookstore a few years later. 248 00:12:42,994 --> 00:12:45,914 But at this point, it was the Byte Shop. 249 00:12:47,874 --> 00:12:51,252 And the person that ran it, I think his name was Paul Terrell, 250 00:12:51,377 --> 00:12:54,506 he said, "I'll take 50 of those." 251 00:12:56,174 --> 00:12:57,300 I said, "This is great." 252 00:12:57,425 --> 00:13:00,970 He said, "But I want them fully assembled." 253 00:13:01,095 --> 00:13:03,264 We'd never thought of this before. 254 00:13:03,389 --> 00:13:06,768 So we then kicked this around, 255 00:13:06,935 --> 00:13:09,312 we thought, "Why not? Why not try this?" 256 00:13:09,437 --> 00:13:11,356 And so, I spent the next several days 257 00:13:11,481 --> 00:13:13,733 on the phone talking with electronics parts distributors. 258 00:13:13,858 --> 00:13:15,360 We didn't know what we were doing. 259 00:13:15,485 --> 00:13:17,403 And we said, "Look, here's the parts we need." 260 00:13:17,529 --> 00:13:23,243 We figured we'd buy 100 sets of parts, build 50, 261 00:13:23,368 --> 00:13:27,080 sell them to the Byte Shop for twice what it cost us to build them, 262 00:13:27,205 --> 00:13:28,998 therefore paying for the whole 100, 263 00:13:29,123 --> 00:13:34,671 and then we'd have 50 left, and we could make our profits by selling those. 264 00:13:34,838 --> 00:13:37,006 So we convinced these distributors to give us the parts 265 00:13:37,131 --> 00:13:38,716 on net 30 days credit. 266 00:13:38,842 --> 00:13:41,094 We had no idea what that meant. "Net 30? Sure." "Sign here." 267 00:13:41,219 --> 00:13:44,097 And then, so we had 30 days to pay them. 268 00:13:44,222 --> 00:13:47,851 And so we bought the parts, we built the products, 269 00:13:47,976 --> 00:13:51,563 and we sold 50 of them to the Byte Shop in Palo Alto, 270 00:13:51,729 --> 00:13:53,731 and got paid in 29 days. 271 00:13:53,857 --> 00:13:55,775 And then went and paid off the parts people in 30 days, 272 00:13:55,900 --> 00:13:57,569 and so we were in business. 273 00:13:57,694 --> 00:14:00,530 But we had the classic Marxian profit realization crisis, 274 00:14:00,655 --> 00:14:02,490 in that our profit wasn't in a liquid currency, 275 00:14:02,615 --> 00:14:04,701 our profit was in 50 computers sitting in the corner. 276 00:14:04,826 --> 00:14:06,703 So then, all of a sudden, we had to think, 277 00:14:06,828 --> 00:14:08,997 "Wow! How are we going to realize our profit?" 278 00:14:09,122 --> 00:14:11,249 And so we started thinking about distribution, 279 00:14:11,374 --> 00:14:12,792 "Are there any other computer stores?" 280 00:14:12,917 --> 00:14:15,545 And we started calling the other computer stores 281 00:14:15,670 --> 00:14:20,675 that we'd heard of across the country, and we just eased into business that way. 282 00:14:20,800 --> 00:14:22,844 CRINGELY: The third key figure in the creation of Apple 283 00:14:22,969 --> 00:14:25,555 was former Intel executive Mike Markkula. 284 00:14:25,680 --> 00:14:28,224 I asked Steve how he came aboard. 285 00:14:28,391 --> 00:14:31,060 We were designing the Apple II, 286 00:14:31,186 --> 00:14:36,065 and we really had much higher ambitions for the Apple II. 287 00:14:36,191 --> 00:14:39,694 Woz's ambitions were, he wanted to add color graphics. 288 00:14:39,819 --> 00:14:44,699 My ambition was that... 289 00:14:44,824 --> 00:14:49,996 It was very clear to me that while there were a bunch of hardware hobbyists 290 00:14:50,121 --> 00:14:53,208 that could assemble their own computers or at least take our board 291 00:14:53,333 --> 00:14:55,335 and add the transformers for the power supply, 292 00:14:55,460 --> 00:14:57,712 and the case and the keyboard, et cetera, 293 00:14:57,879 --> 00:14:59,672 and go get the rest of the stuff... 294 00:14:59,797 --> 00:15:03,801 For every one of those, there were a thousand people that couldn't do that, 295 00:15:03,968 --> 00:15:06,262 but wanted to mess around with programing. 296 00:15:06,387 --> 00:15:08,181 Software hobbyists. 297 00:15:08,306 --> 00:15:12,685 Just like I had been when I was 10, discovering that computer. 298 00:15:12,810 --> 00:15:14,646 And so my dream for the Apple II 299 00:15:14,771 --> 00:15:18,483 was to sell the first real packaged computer. 300 00:15:18,608 --> 00:15:20,068 Packaged personal computer 301 00:15:20,193 --> 00:15:22,403 where you didn't have to be a hardware hobbyist at all. 302 00:15:22,529 --> 00:15:24,781 And so, combining both of those dreams, 303 00:15:24,906 --> 00:15:27,283 we actually designed the product. 304 00:15:27,450 --> 00:15:31,246 And I found a designer, and we designed the packaging and everything, 305 00:15:31,371 --> 00:15:34,916 and we wanted to make it out of plastic, and we had the whole thing ready to go. 306 00:15:35,041 --> 00:15:38,002 But we needed some money for tooling the case and things like that. 307 00:15:38,127 --> 00:15:40,338 We needed a few hundred thousand dollars. 308 00:15:40,463 --> 00:15:41,756 And this was way beyond our means, 309 00:15:41,881 --> 00:15:44,759 so I went looking for some venture capital. 310 00:15:44,884 --> 00:15:49,305 And I ran across one venture capitalist named Don Valentine 311 00:15:49,430 --> 00:15:51,224 who came over to the garage. 312 00:15:51,349 --> 00:15:54,185 And he later said I looked like a renegade from the human race. 313 00:15:54,310 --> 00:15:56,271 That was his famous quote. (CHUCKLES) 314 00:15:56,396 --> 00:15:58,064 And he said he wasn't willing to invest in us, 315 00:15:58,189 --> 00:16:00,275 but he recommended a few people that might, 316 00:16:00,400 --> 00:16:02,151 and one of them was Mike Markkula. 317 00:16:02,277 --> 00:16:04,821 So I called Mike on the phone, and Mike came over, 318 00:16:04,946 --> 00:16:08,283 and Mike had retired at about 30 or 31 from Intel. 319 00:16:08,408 --> 00:16:11,327 He was a product manager there and had gotten a little bit of stock, 320 00:16:11,452 --> 00:16:13,746 and made, like, a million bucks on stock options, 321 00:16:13,872 --> 00:16:16,082 which at that time, was quite a lot of money. 322 00:16:16,207 --> 00:16:20,128 And he'd been investing in oil and gas deals, 323 00:16:20,253 --> 00:16:22,589 and staying home and doing that sort of thing. 324 00:16:22,714 --> 00:16:26,009 And he, I think, was kind of antsy to get back into something, 325 00:16:26,134 --> 00:16:29,053 and Mike and I hit it off very well. 326 00:16:29,179 --> 00:16:34,100 And so Mike said, "Okay, I'll invest after a few weeks." 327 00:16:34,225 --> 00:16:37,270 And I said, "No. No. We don't want your money. We want you." 328 00:16:37,395 --> 00:16:39,189 (LAUGHS) 329 00:16:39,314 --> 00:16:45,320 So we convinced Mike to actually throw in with us as an equal partner. 330 00:16:45,445 --> 00:16:49,073 And so Mike put in some money, and Mike put in himself, 331 00:16:49,199 --> 00:16:50,658 and the three of us went off, 332 00:16:50,783 --> 00:16:53,912 and we took this design that was virtually done with the Apple II, 333 00:16:54,078 --> 00:16:58,333 and tooled it up and announced it 334 00:16:58,458 --> 00:17:00,960 a few months later at the West Coast Computer Faire. 335 00:17:01,127 --> 00:17:03,630 -What was that like? -It was great. 336 00:17:04,506 --> 00:17:06,382 We got the best. 337 00:17:06,508 --> 00:17:09,802 The West Coast Computer Faire was small at that time, 338 00:17:09,928 --> 00:17:12,096 but to us, it was very large. 339 00:17:13,348 --> 00:17:16,476 And so, we had this fantastic booth there. 340 00:17:16,601 --> 00:17:20,188 We had a projection television showing the Apple II, 341 00:17:20,313 --> 00:17:22,232 and showing its graphics, which today, look very crude, 342 00:17:22,357 --> 00:17:24,025 but at that time, were, by far, 343 00:17:24,150 --> 00:17:26,402 the most advanced graphics on a personal computer. 344 00:17:26,569 --> 00:17:29,030 And I think... 345 00:17:29,155 --> 00:17:31,741 My recollection is, we stole the show. 346 00:17:31,866 --> 00:17:35,537 And a lot of dealers and distributors started lining up, 347 00:17:35,703 --> 00:17:37,789 and we were off and running. 348 00:17:39,207 --> 00:17:40,667 How old were you? 349 00:17:41,167 --> 00:17:42,377 Twenty-one. 350 00:17:42,502 --> 00:17:43,586 -Twenty-one? -Yeah. 351 00:17:43,711 --> 00:17:45,421 You're 21, you're a big success. 352 00:17:45,547 --> 00:17:50,093 You've just done it by the seat of your pants. 353 00:17:50,218 --> 00:17:52,345 You don't have any particular training in this. 354 00:17:52,470 --> 00:17:55,181 How do you learn to run a company? 355 00:18:02,397 --> 00:18:05,817 Throughout the years in business, 356 00:18:05,942 --> 00:18:10,989 I found something, which was, I'd always ask why you do things. 357 00:18:11,114 --> 00:18:13,741 And the answers you invariably get are, 358 00:18:13,867 --> 00:18:15,994 "Oh, that's just the way it's done." 359 00:18:16,119 --> 00:18:18,538 Nobody knows why they do what they do. 360 00:18:18,663 --> 00:18:21,583 Nobody thinks about things very deeply in business. 361 00:18:21,708 --> 00:18:25,044 That's what I found. I'll give you an example. 362 00:18:27,213 --> 00:18:29,424 When we were building our Apple Is in the garage, 363 00:18:29,549 --> 00:18:32,760 we knew exactly what they cost. 364 00:18:32,886 --> 00:18:36,973 When we got into a factory in the Apple II days, 365 00:18:39,058 --> 00:18:42,478 the accounting had this notion of a standard cost, 366 00:18:42,604 --> 00:18:45,440 where you'd set a standard cost, 367 00:18:45,565 --> 00:18:48,651 and at the end of a quarter, you'd adjust it with a variance. 368 00:18:48,776 --> 00:18:51,529 And I kept asking, "Well, why do we do this?" 369 00:18:51,654 --> 00:18:53,489 And the answer was, "Well, that's just the way it's done." 370 00:18:53,615 --> 00:18:55,700 And after about six months of digging into this, 371 00:18:55,825 --> 00:18:59,412 what I realized was, the reason you do it is because 372 00:18:59,537 --> 00:19:02,832 you don't really have good enough controls to know how much it costs, 373 00:19:02,957 --> 00:19:06,419 so you guess, and then you fix your guess at the end of the quarter, 374 00:19:06,544 --> 00:19:08,046 and the reason you don't know how much it costs 375 00:19:08,171 --> 00:19:12,217 is because your information systems aren't good enough. 376 00:19:12,717 --> 00:19:15,512 But nobody said it that way. 377 00:19:15,637 --> 00:19:18,598 And so, later on, when we designed this automated factory for Macintosh, 378 00:19:18,723 --> 00:19:22,185 we were able to get rid of a lot of these antiquated concepts 379 00:19:22,310 --> 00:19:26,064 and know exactly what something cost to the second. 380 00:19:27,440 --> 00:19:33,404 So in business, a lot of things are... I call it folklore. 381 00:19:33,530 --> 00:19:37,283 They're done because they were done yesterday and the day before. 382 00:19:37,408 --> 00:19:41,371 And so what that means is, if you're willing to ask a lot of questions 383 00:19:41,496 --> 00:19:43,039 and think about things and work really hard, 384 00:19:43,164 --> 00:19:44,916 you can learn business pretty fast. 385 00:19:45,083 --> 00:19:47,293 It's not the hardest thing in the world. 386 00:19:47,418 --> 00:19:50,463 -It's not rocket science. -It's not rocket science, no. 387 00:19:50,588 --> 00:19:54,092 Now, when you were first coming in contact 388 00:19:54,259 --> 00:19:55,760 with these computers and inventing them, 389 00:19:55,885 --> 00:19:58,346 and before that, working on the HP 9100, 390 00:19:58,471 --> 00:20:00,223 you talked about writing programs. 391 00:20:00,390 --> 00:20:01,599 What sort of programs? 392 00:20:01,724 --> 00:20:04,435 What did people actually do with these things? 393 00:20:04,561 --> 00:20:05,728 Hmm... 394 00:20:09,649 --> 00:20:11,776 See, what we did with them... 395 00:20:14,153 --> 00:20:16,030 Well, I'll give you a simple example. 396 00:20:16,155 --> 00:20:18,157 When we were designing our blue box, 397 00:20:18,283 --> 00:20:22,328 we wrote a lot of custom programs to help us design it, 398 00:20:22,996 --> 00:20:26,249 and to do a lot of the dog work for us 399 00:20:26,374 --> 00:20:29,335 in terms of calculating master frequencies 400 00:20:29,460 --> 00:20:31,337 with sub divisors to get other frequencies 401 00:20:31,462 --> 00:20:32,505 and things like that. 402 00:20:32,630 --> 00:20:34,132 We used the computer quite a bit. 403 00:20:34,257 --> 00:20:37,260 And to calculate how much error we would get in the frequencies, 404 00:20:37,385 --> 00:20:38,845 and how much could be tolerated. 405 00:20:39,012 --> 00:20:40,346 So, we used them in our work. 406 00:20:40,471 --> 00:20:42,765 But much more importantly, 407 00:20:42,891 --> 00:20:45,435 it had nothing to do with using them for anything practical. 408 00:20:45,560 --> 00:20:48,563 It had to do with using them 409 00:20:50,773 --> 00:20:54,736 to be a mirror of your thought process, 410 00:20:54,861 --> 00:20:57,530 to actually learn how to think. 411 00:20:57,655 --> 00:20:59,616 It was, I think, the greatest value of learning how to... 412 00:20:59,741 --> 00:21:01,034 I think everybody in this country 413 00:21:01,159 --> 00:21:03,286 should learn how to program a computer, 414 00:21:03,453 --> 00:21:05,038 should learn a computer language, 415 00:21:05,163 --> 00:21:06,998 because it teaches you how to think. 416 00:21:07,123 --> 00:21:08,750 It's like going to law school. 417 00:21:08,875 --> 00:21:10,793 I don't think anybody should be a lawyer, 418 00:21:10,919 --> 00:21:12,795 but I think going to law school would actually be useful 419 00:21:12,921 --> 00:21:15,048 'cause it teaches you how to think in a certain way. 420 00:21:15,173 --> 00:21:17,008 In the same way that computer programing 421 00:21:17,133 --> 00:21:19,844 teaches you, in a slightly different way, how to think. 422 00:21:19,969 --> 00:21:23,806 And so, I view computer science as a liberal art. 423 00:21:25,308 --> 00:21:26,768 It should be something that everybody learns. 424 00:21:26,935 --> 00:21:29,395 Takes a year in their life, 425 00:21:29,521 --> 00:21:33,691 one of the courses they take is learning how to program. 426 00:21:33,816 --> 00:21:35,193 Yeah, but I learned APL, 427 00:21:35,318 --> 00:21:37,612 which, obviously, is part of the reason 428 00:21:37,737 --> 00:21:40,365 why I'm going through life sideways. 429 00:21:41,241 --> 00:21:44,410 You look back and consider it 430 00:21:44,536 --> 00:21:47,705 an enriching experience that taught you to think in a different way, or not? 431 00:21:47,831 --> 00:21:49,666 -Uh, no. Not that particularly. -Okay. 432 00:21:49,791 --> 00:21:51,459 Other languages perhaps more so, 433 00:21:51,584 --> 00:21:53,962 -but I started with APL. -Uh-huh. 434 00:21:54,838 --> 00:22:00,009 So, obviously, the Apple II was a terrific success. 435 00:22:00,134 --> 00:22:02,095 -Yeah. -Just incredibly so. 436 00:22:02,220 --> 00:22:05,431 And the company grew like Topsy, and eventually went public, 437 00:22:05,598 --> 00:22:07,475 and you guys got really rich. 438 00:22:07,642 --> 00:22:09,853 What's it like to get rich? 439 00:22:09,978 --> 00:22:12,438 It's very interesting. I was worth 440 00:22:14,774 --> 00:22:18,570 about over $1 million when I was 23, 441 00:22:18,695 --> 00:22:21,406 and over $10 million when I was 24, 442 00:22:21,531 --> 00:22:24,159 and over $100 million when I was 25. 443 00:22:28,037 --> 00:22:30,540 And it wasn't that important 444 00:22:31,833 --> 00:22:34,544 because I never did it for the money. 445 00:22:39,174 --> 00:22:40,758 I think money is a wonderful thing 446 00:22:40,884 --> 00:22:42,927 because it enables you to do things. 447 00:22:43,052 --> 00:22:45,054 It enables you to invest in ideas 448 00:22:45,180 --> 00:22:49,267 that don't have a short-term payback and things like that. 449 00:22:49,434 --> 00:22:51,311 But especially at that point in my life, 450 00:22:51,477 --> 00:22:53,354 it was not the most important thing. 451 00:22:53,521 --> 00:22:57,358 The most important thing was the company, the people, the products we were making, 452 00:22:57,525 --> 00:23:00,361 what we were gonna enable people to do with these products, 453 00:23:00,528 --> 00:23:02,739 so I didn't think about it a great deal. 454 00:23:02,864 --> 00:23:06,367 I never sold any stock. 455 00:23:06,493 --> 00:23:11,206 Just really believed that the company would do very well over the long term. 456 00:23:11,331 --> 00:23:13,583 CRINGELY: Central to the development of the personal computer 457 00:23:13,708 --> 00:23:17,879 was the pioneering work being done at Xerox's Palo Alto Research Center 458 00:23:18,004 --> 00:23:22,175 which Steve first visited in 1979. 459 00:23:22,300 --> 00:23:25,512 I had three or four people who kept bugging me 460 00:23:25,637 --> 00:23:28,723 that I ought to get my rear over to Xerox PARC and see what they were doing, 461 00:23:28,848 --> 00:23:31,684 and so I finally did. I went over there. 462 00:23:33,770 --> 00:23:37,023 And they were very kind, and they showed me what they were working on, 463 00:23:37,148 --> 00:23:41,486 and they showed me, really, three things. 464 00:23:41,611 --> 00:23:47,659 But I was so blinded by the first one that I didn't even really see the other two. 465 00:23:48,785 --> 00:23:52,080 One of the things they showed me was object-oriented programing. 466 00:23:52,205 --> 00:23:54,999 They showed me that, but I didn't even see that. 467 00:23:55,124 --> 00:23:58,002 The other one they showed me was, really, a network computer system. 468 00:23:58,127 --> 00:24:01,464 They had over 100 Alto computers, all networked, using email, 469 00:24:01,589 --> 00:24:02,590 et cetera, et cetera. 470 00:24:02,757 --> 00:24:05,009 I didn't even see that. 471 00:24:05,134 --> 00:24:08,263 I was so blinded by the first thing they showed me, 472 00:24:08,388 --> 00:24:10,557 which was the graphical user interface. 473 00:24:10,682 --> 00:24:13,309 I thought it was the best thing I'd ever seen in my life. 474 00:24:13,434 --> 00:24:18,147 Now, remember, it was very flawed. What we saw was incomplete. 475 00:24:18,273 --> 00:24:19,774 They'd done a bunch of things wrong, 476 00:24:19,899 --> 00:24:20,942 but we didn't know that at the time. 477 00:24:21,109 --> 00:24:22,443 But still, though, they had... 478 00:24:22,569 --> 00:24:26,948 The germ of the idea was there and they'd done it very well. 479 00:24:27,574 --> 00:24:32,203 And within 10 minutes, 480 00:24:32,328 --> 00:24:35,456 it was obvious to me that all computers would work like this someday. 481 00:24:35,582 --> 00:24:36,916 It was obvious. 482 00:24:37,041 --> 00:24:38,793 You could argue about how many years it would take, 483 00:24:38,918 --> 00:24:40,628 you could argue about who the winners and losers might be, 484 00:24:40,753 --> 00:24:42,797 but you couldn't argue about the inevitability. 485 00:24:42,922 --> 00:24:44,132 It was so obvious. 486 00:24:44,257 --> 00:24:46,342 You would have felt the same way had you been there. 487 00:24:46,509 --> 00:24:49,679 Those are the exact words that Paul Allen used. 488 00:24:49,804 --> 00:24:51,556 -Yeah. -It's really interesting. 489 00:24:51,681 --> 00:24:53,600 Yeah, it was obvious. 490 00:24:55,685 --> 00:24:57,312 But there were two visits. 491 00:24:57,437 --> 00:24:59,272 You saw it, then you brought some people back with you. 492 00:24:59,397 --> 00:25:01,316 Yeah. 493 00:25:01,441 --> 00:25:04,444 And what happened the next time? They made you cool your heels for a while. 494 00:25:04,569 --> 00:25:06,362 No. 495 00:25:06,487 --> 00:25:09,115 -No? Well, Adele Goldberg says otherwise. -What do you mean? 496 00:25:09,240 --> 00:25:10,909 Well, she did the demo... 497 00:25:11,034 --> 00:25:12,410 -Right. -...when the group came back. 498 00:25:12,535 --> 00:25:18,750 And she said that she argued against doing it for three hours, 499 00:25:18,875 --> 00:25:21,544 and they took you other places and showed you other things while she was arguing. 500 00:25:21,669 --> 00:25:24,672 Oh! Oh! You mean they were reluctant to show us the demo? 501 00:25:24,797 --> 00:25:26,049 She was. 502 00:25:26,216 --> 00:25:27,800 -Oh, okay. Well, I have no idea. -Oh, okay. 503 00:25:27,926 --> 00:25:29,761 Yeah, I don't remember that. I thought you meant something else. 504 00:25:29,886 --> 00:25:32,388 -So they were very skillful. -(CHUCKLES) Yeah. 505 00:25:32,514 --> 00:25:34,057 -But they did show us. -Yeah. 506 00:25:34,182 --> 00:25:35,683 So... 507 00:25:35,808 --> 00:25:37,018 And it's good that they showed us, 508 00:25:37,143 --> 00:25:40,897 because the technology crashed and burned at Xerox. 509 00:25:41,940 --> 00:25:42,899 -They used to call... -(MUTTERS) 510 00:25:43,024 --> 00:25:44,067 -What's that? -No, I was just... 511 00:25:44,192 --> 00:25:45,318 -Why? -Yeah, why? 512 00:25:45,443 --> 00:25:47,445 Oh, I actually thought a lot about that. 513 00:25:47,612 --> 00:25:50,448 And I learned more about that with John Sculley later on, 514 00:25:50,615 --> 00:25:52,700 and I think I understand it now pretty well. 515 00:25:52,826 --> 00:25:56,454 What happens is, like with John Sculley... 516 00:25:57,622 --> 00:25:59,249 John came from PepsiCo, 517 00:25:59,374 --> 00:26:03,294 and they, at most, would change their product once every 10 years. 518 00:26:03,419 --> 00:26:06,548 To them, a new product was, like, a new-size bottle, right? 519 00:26:06,673 --> 00:26:09,384 So if you were a product person, 520 00:26:09,509 --> 00:26:12,095 you couldn't change the course of that company very much. 521 00:26:12,220 --> 00:26:14,097 So who influenced the success of PepsiCo? 522 00:26:14,222 --> 00:26:16,182 The sales and marketing people. 523 00:26:16,307 --> 00:26:17,976 Therefore, they were the ones that got promoted, 524 00:26:18,142 --> 00:26:21,020 and therefore, they were the ones that ran the company. 525 00:26:21,187 --> 00:26:24,774 Well, for PepsiCo, that might have been okay. 526 00:26:24,899 --> 00:26:28,111 But it turns out, the same thing can happen 527 00:26:28,236 --> 00:26:31,656 in technology companies that get monopolies. 528 00:26:31,781 --> 00:26:34,284 Like, oh, IBM and Xerox. 529 00:26:34,450 --> 00:26:38,705 If you were a product person at IBM or Xerox... 530 00:26:38,830 --> 00:26:42,208 So you make a better copier or a better computer. So what? 531 00:26:42,333 --> 00:26:44,794 When you have a monopoly market share, 532 00:26:44,919 --> 00:26:47,380 the company is not any more successful. 533 00:26:47,505 --> 00:26:49,924 So the people that can make the company more successful 534 00:26:50,049 --> 00:26:52,260 are sales and marketing people, 535 00:26:52,385 --> 00:26:54,512 and they end up running the companies. 536 00:26:54,637 --> 00:26:59,767 And the product people get driven out of the decision-making forums. 537 00:26:59,934 --> 00:27:05,231 And the companies forget what it means to make great products. 538 00:27:05,356 --> 00:27:10,195 The product sensibility and the product genius 539 00:27:10,320 --> 00:27:13,281 that brought them to that monopolistic position 540 00:27:13,406 --> 00:27:17,076 gets rotted out by people running these companies 541 00:27:17,243 --> 00:27:21,539 who have no conception of a good product versus a bad product. 542 00:27:21,664 --> 00:27:23,875 They have no conception of the craftsmanship 543 00:27:24,000 --> 00:27:27,629 that's required to take a good idea and turn it into a good product. 544 00:27:27,754 --> 00:27:30,298 And they really have no feeling in their hearts usually 545 00:27:30,465 --> 00:27:33,259 about wanting to really help the customers. 546 00:27:33,384 --> 00:27:35,345 So that's what happened at Xerox. 547 00:27:35,512 --> 00:27:38,723 The people at Xerox PARC used to call the people that ran Xerox "toner heads." 548 00:27:38,848 --> 00:27:39,891 And they just had... 549 00:27:40,016 --> 00:27:41,684 These toner heads would come out to Xerox PARC, 550 00:27:41,809 --> 00:27:43,895 and they just had no clue about what they were seeing. 551 00:27:44,020 --> 00:27:46,147 And for our audience, toner is what? 552 00:27:46,272 --> 00:27:49,192 Oh, toner is what you put into a copier. 553 00:27:49,317 --> 00:27:52,529 The toner that you add to an industrial copier. 554 00:27:52,654 --> 00:27:54,572 -The black stuff. -The black stuff, yeah. 555 00:27:54,697 --> 00:27:56,282 So basically, they were copier heads 556 00:27:56,407 --> 00:28:00,286 that just had no clue about a computer or what it could do. 557 00:28:00,411 --> 00:28:03,373 And so they just grabbed defeat 558 00:28:03,498 --> 00:28:06,918 from the greatest victory in the computer industry. 559 00:28:07,085 --> 00:28:11,172 Xerox could have owned the entire computer industry today. 560 00:28:11,297 --> 00:28:13,550 Could have been a company 10 times its size. 561 00:28:13,675 --> 00:28:15,260 Could have been IBM. 562 00:28:15,385 --> 00:28:16,469 Could have been the IBM of the '90s. 563 00:28:16,594 --> 00:28:18,596 Could have been the Microsoft of the '90s. 564 00:28:18,721 --> 00:28:19,681 So... 565 00:28:19,806 --> 00:28:21,474 But anyway, that's all ancient history. 566 00:28:21,599 --> 00:28:22,684 It doesn't really matter anymore. 567 00:28:22,809 --> 00:28:25,812 Sure. You mentioned IBM. 568 00:28:25,937 --> 00:28:30,942 When IBM entered the market, was that a daunting thing for you at Apple? 569 00:28:31,067 --> 00:28:32,610 Oh, sure. 570 00:28:32,735 --> 00:28:35,947 Here was Apple, a one-billion-dollar company. 571 00:28:36,072 --> 00:28:38,825 And here was IBM, at that time, probably about 572 00:28:38,950 --> 00:28:40,660 30-some-odd-billion-dollar company 573 00:28:40,785 --> 00:28:43,538 entering the market. Sure, it was. It was very scary. 574 00:28:43,705 --> 00:28:45,999 We made a very big mistake, though. 575 00:28:46,124 --> 00:28:49,294 IBM's first product was terrible. It was really bad. 576 00:28:49,419 --> 00:28:54,340 And we made a mistake of not realizing that a lot of other people 577 00:28:54,465 --> 00:28:57,886 had a very strong vested interest in helping IBM make it better. 578 00:28:58,052 --> 00:29:01,472 So if it had just been up to IBM, they would have crashed and burned. 579 00:29:01,598 --> 00:29:05,977 But IBM did have, I think, a genius in their approach, 580 00:29:06,144 --> 00:29:09,939 which was to have a lot of other people have a vested interest in their success. 581 00:29:10,064 --> 00:29:12,275 And that's what saved them in the end. 582 00:29:12,400 --> 00:29:15,737 So you came back from visiting Xerox PARC with a vision. 583 00:29:15,862 --> 00:29:18,948 -Mmm-hmm. -And how did you implement the vision? 584 00:29:19,073 --> 00:29:22,243 Well, I got our best people together 585 00:29:22,410 --> 00:29:25,538 and started to get them working on this. 586 00:29:25,663 --> 00:29:30,877 The problem was that we'd hired a bunch of people from Hewlett-Packard. 587 00:29:33,880 --> 00:29:37,175 And they didn't get this idea. They didn't get it. 588 00:29:37,300 --> 00:29:41,012 I remember having dramatic arguments with some of these people 589 00:29:41,137 --> 00:29:43,973 who thought the coolest thing in user interface 590 00:29:44,098 --> 00:29:47,852 was soft keys at the bottom of a screen. 591 00:29:47,977 --> 00:29:50,522 They had no concept of proportionally-spaced fonts, 592 00:29:50,647 --> 00:29:51,940 no concept of a mouse. 593 00:29:52,065 --> 00:29:53,858 As a matter of fact, I remember arguing with these folks, 594 00:29:54,025 --> 00:29:57,445 people screaming at me that it would take us five years to engineer a mouse 595 00:29:57,570 --> 00:29:59,864 and it would cost $300 to build. 596 00:30:00,448 --> 00:30:01,783 And I finally got fed up. 597 00:30:01,908 --> 00:30:04,744 I just went outside and found David Kelley Design, 598 00:30:04,869 --> 00:30:06,746 and asked him to design me a mouse. 599 00:30:06,871 --> 00:30:08,540 And in 90 days, we had a mouse 600 00:30:08,665 --> 00:30:12,335 we could build for 15 bucks that was phenomenally reliable. 601 00:30:12,460 --> 00:30:16,214 So I found that, in a way, 602 00:30:18,716 --> 00:30:24,055 Apple did not have the caliber of people that was necessary to seize this idea 603 00:30:24,180 --> 00:30:25,765 in many ways. 604 00:30:25,890 --> 00:30:27,559 And there was a core team that did, 605 00:30:27,684 --> 00:30:33,064 but there was a larger team that mostly had come from Hewlett-Packard 606 00:30:33,815 --> 00:30:36,317 that didn't have a clue. 607 00:30:36,442 --> 00:30:38,653 Well, there comes this issue of professionalism. 608 00:30:38,820 --> 00:30:40,697 There is a dark side and a light side to it, isn't there? 609 00:30:40,864 --> 00:30:43,158 Well, no. You know what it is? No, it's not dark and light. 610 00:30:43,283 --> 00:30:46,327 It's that people get confused. 611 00:30:46,452 --> 00:30:48,246 Companies get confused. 612 00:30:48,371 --> 00:30:50,748 When they start getting bigger, 613 00:30:50,874 --> 00:30:54,085 they want to replicate their initial success. 614 00:30:55,879 --> 00:30:58,006 And a lot of them think, 615 00:30:58,173 --> 00:31:02,802 "Well, somehow there is some magic in the process of how that success was created." 616 00:31:02,927 --> 00:31:07,515 So they start to try to institutionalize process across the company. 617 00:31:07,640 --> 00:31:09,726 And before very long, 618 00:31:09,851 --> 00:31:13,730 people get very confused that the process is the content. 619 00:31:13,855 --> 00:31:15,815 And that's, ultimately, the downfall of IBM. 620 00:31:15,940 --> 00:31:18,651 IBM has the best process people in the world. 621 00:31:18,776 --> 00:31:21,279 They just forgot about the content. 622 00:31:21,404 --> 00:31:23,781 And that's what happened a little bit at Apple, too. 623 00:31:23,907 --> 00:31:27,368 We had a lot of people who were great at management process. 624 00:31:27,494 --> 00:31:30,038 They just didn't have a clue as to the content. 625 00:31:30,163 --> 00:31:32,332 And in my career, 626 00:31:32,457 --> 00:31:38,546 I found that the best people are the ones that really understand the content, 627 00:31:38,671 --> 00:31:41,591 and they're a pain in the butt to manage. 628 00:31:41,716 --> 00:31:45,678 But you put up with it because they're so great at the content. 629 00:31:45,803 --> 00:31:46,971 And that's what makes great products. 630 00:31:47,096 --> 00:31:49,641 It's not process. It's content. 631 00:31:49,766 --> 00:31:53,645 So we had a little bit of that problem at Apple. 632 00:31:53,770 --> 00:31:56,981 And that problem eventually resulted in the Lisa, 633 00:31:57,106 --> 00:32:00,818 which had its moments of brilliance. 634 00:32:00,944 --> 00:32:04,322 In a way, it was very far ahead of its time, 635 00:32:04,447 --> 00:32:10,328 but there wasn't enough fundamental content understanding. 636 00:32:10,495 --> 00:32:13,164 Apple drifted too far away from its roots. 637 00:32:13,289 --> 00:32:17,043 To these Hewlett-Packard guys, $10,000 was cheap. 638 00:32:17,168 --> 00:32:21,422 To our market, to our distribution channels, $10,000 was impossible. 639 00:32:21,548 --> 00:32:24,342 So we produced a product that was a complete mismatch 640 00:32:24,467 --> 00:32:25,802 for the culture of our company, 641 00:32:25,927 --> 00:32:27,637 for the image of our company, 642 00:32:27,804 --> 00:32:30,139 for the distribution channels of our company, for our current customers. 643 00:32:30,265 --> 00:32:32,392 None of them could afford a product like that. 644 00:32:32,517 --> 00:32:34,143 And it failed. 645 00:32:35,478 --> 00:32:38,106 -Now you and John Couch... -Right. 646 00:32:38,231 --> 00:32:39,816 ...fought for leadership of the Lisa. 647 00:32:39,983 --> 00:32:41,943 Absolutely, and I lost. That's correct. 648 00:32:42,110 --> 00:32:43,152 How did that come about? 649 00:32:43,278 --> 00:32:46,239 Well, I thought Lisa was in serious trouble. 650 00:32:46,364 --> 00:32:52,162 I thought Lisa was going off in this very bad direction as I've just described. 651 00:32:56,374 --> 00:32:59,961 And I could not convince enough people in the senior management of Apple 652 00:33:00,086 --> 00:33:03,673 that that was the case and we ran the place as a team for the most part. 653 00:33:03,798 --> 00:33:06,176 So I lost. 654 00:33:06,301 --> 00:33:11,556 And at that point in time... I brooded for a few months. 655 00:33:11,681 --> 00:33:14,434 But it was not very long after that 656 00:33:14,601 --> 00:33:19,189 that it really occurred to me that if we didn't do something here... 657 00:33:19,314 --> 00:33:21,816 The Apple II was running out of gas, 658 00:33:21,941 --> 00:33:25,445 and we needed to do something with this technology fast 659 00:33:25,570 --> 00:33:30,533 or else Apple might cease to exist as the company that it was. 660 00:33:30,658 --> 00:33:34,621 And so I formed a small team to do the Macintosh, 661 00:33:34,746 --> 00:33:39,792 and we were on a mission from God to save Apple. 662 00:33:39,918 --> 00:33:44,047 No one else thought so, but it turned out we were right. 663 00:33:44,881 --> 00:33:46,883 And as we evolved the Mac, 664 00:33:47,008 --> 00:33:52,055 it became very clear that this was also a way of reinventing Apple. 665 00:33:52,180 --> 00:33:56,226 We reinvented everything. We reinvented manufacturing. 666 00:33:56,392 --> 00:33:59,354 I visited probably 80 automated factories in Japan, 667 00:33:59,479 --> 00:34:02,690 and we built the world's first automated computer factory in the world 668 00:34:02,815 --> 00:34:04,150 in California here. 669 00:34:04,275 --> 00:34:08,446 So we adopted the 68,000 microprocessor that Lisa had. 670 00:34:08,613 --> 00:34:11,741 We negotiated a price that was a fifth of what Lisa was going to pay for it 671 00:34:11,866 --> 00:34:14,160 because we were going to use it in much higher volume. 672 00:34:14,285 --> 00:34:19,040 And we really started to design this product that could be sold for $1,000 673 00:34:19,165 --> 00:34:21,084 called the Macintosh. 674 00:34:21,209 --> 00:34:23,628 And we didn't make it. 675 00:34:23,753 --> 00:34:28,508 We could have sold it at $2,000. Although, we came out at $2,500. 676 00:34:28,633 --> 00:34:32,262 And we spent four years of our life doing that. 677 00:34:32,387 --> 00:34:33,805 We built the product. 678 00:34:33,930 --> 00:34:35,682 We built the automated factory, 679 00:34:35,807 --> 00:34:37,725 the machine to build the machine. 680 00:34:37,851 --> 00:34:40,436 We built a completely new distribution system. 681 00:34:40,562 --> 00:34:44,274 We built a completely different marketing approach. 682 00:34:46,651 --> 00:34:49,112 And I think it worked pretty well. 683 00:34:50,363 --> 00:34:52,866 Now, you motivated this team. You had to guide them. 684 00:34:52,991 --> 00:34:54,284 We had to build the team. 685 00:34:54,450 --> 00:34:59,038 Build the team, motivate it, guide them, deal with them. 686 00:34:59,164 --> 00:35:02,542 We've interviewed just lots and lots of people from your Macintosh team. 687 00:35:02,667 --> 00:35:05,253 Great. 688 00:35:05,378 --> 00:35:10,133 And what it keeps coming down to is your passion, your vision, and... 689 00:35:10,258 --> 00:35:12,802 How do you order your priorities in there? 690 00:35:12,927 --> 00:35:17,015 What's important to you in the development of a product? 691 00:35:30,653 --> 00:35:31,571 You know... 692 00:35:36,326 --> 00:35:38,620 One of the things that really hurt Apple 693 00:35:38,745 --> 00:35:43,458 was after I left, John Sculley got a very serious disease, 694 00:35:43,583 --> 00:35:47,629 and that disease... I've seen other people get it, too. 695 00:35:47,754 --> 00:35:54,093 It's the disease of thinking that a really great idea is 90% of the work, 696 00:35:54,219 --> 00:35:59,182 and that if you just tell all these other people, "Here is this great idea," 697 00:35:59,307 --> 00:36:02,977 then, of course, they can go off and make it happen. 698 00:36:03,102 --> 00:36:06,147 And the problem with that is that there is just 699 00:36:06,272 --> 00:36:09,275 a tremendous amount of craftsmanship 700 00:36:09,400 --> 00:36:12,987 in between a great idea and a great product. 701 00:36:13,112 --> 00:36:17,033 And as you evolve that great idea, it changes and grows. 702 00:36:17,158 --> 00:36:19,202 It never comes out like it starts 703 00:36:19,327 --> 00:36:21,704 because you learn a lot more as you get into the subtleties of it, 704 00:36:21,830 --> 00:36:25,834 and you also find there is tremendous tradeoffs that you have to make. 705 00:36:25,959 --> 00:36:29,504 There are just certain things you can't make electrons do. 706 00:36:29,629 --> 00:36:31,339 There are certain things 707 00:36:31,464 --> 00:36:36,052 you can't make plastic do or glass do or factories do or robots do. 708 00:36:36,219 --> 00:36:40,723 And as you get into all these things, designing a product 709 00:36:40,849 --> 00:36:46,354 is keeping 5,000 things in your brain, these concepts, 710 00:36:46,479 --> 00:36:52,110 and fitting them all together and continuing to push to fit them together 711 00:36:52,235 --> 00:36:56,030 in new and different ways to get what you want. 712 00:36:56,156 --> 00:37:00,618 And every day you discover something new, that is a new problem or a new opportunity 713 00:37:00,743 --> 00:37:03,371 to fit these things together a little differently. 714 00:37:03,496 --> 00:37:08,042 And it's that process that is the magic. 715 00:37:10,545 --> 00:37:15,049 And so we had a lot of great ideas when we started. 716 00:37:15,175 --> 00:37:16,801 But what I've always felt, 717 00:37:16,968 --> 00:37:20,013 that a team of people doing something they really believe in is like... 718 00:37:20,138 --> 00:37:26,394 When I was a young kid, there was a widowed man that lived up the street. 719 00:37:27,395 --> 00:37:30,356 And he was in his 80s. 720 00:37:31,399 --> 00:37:33,401 He was a little scary-looking. 721 00:37:33,526 --> 00:37:36,070 And I got to know him a little bit. 722 00:37:36,863 --> 00:37:38,740 I think he might have paid me to mow his lawn or something. 723 00:37:38,865 --> 00:37:40,200 And one day, he said, 724 00:37:40,366 --> 00:37:41,618 "Come on into my garage. I want to show you something." 725 00:37:41,743 --> 00:37:44,496 And he pulled out this dusty, old rock tumbler. 726 00:37:44,621 --> 00:37:49,667 It was a motor and a coffee can and a little band between them. 727 00:37:49,792 --> 00:37:50,960 And he said, "Come on with me." 728 00:37:51,085 --> 00:37:54,422 We went out to the back and we got just some rocks. 729 00:37:54,547 --> 00:37:57,133 Some regular, old, ugly rocks. 730 00:37:57,258 --> 00:37:58,676 And we put them in the can 731 00:37:58,801 --> 00:38:04,474 with a little bit of liquid and a little bit of grit powder. 732 00:38:04,599 --> 00:38:06,935 And we closed the can up, 733 00:38:07,060 --> 00:38:10,730 and he turned this motor on, and he said, "Come back tomorrow." 734 00:38:10,855 --> 00:38:14,526 And this can was making a racket as the stones went around. 735 00:38:14,651 --> 00:38:18,822 And I came back the next day, and we opened the can, 736 00:38:18,947 --> 00:38:23,117 and we took out these amazingly beautiful polished rocks. 737 00:38:26,454 --> 00:38:30,959 The same common stones that had gone in, 738 00:38:31,084 --> 00:38:33,628 through rubbing against each other like this, 739 00:38:33,753 --> 00:38:34,796 creating a little bit of friction, 740 00:38:34,921 --> 00:38:36,548 creating a little bit of noise, 741 00:38:36,673 --> 00:38:39,342 had come out these beautiful polished rocks. 742 00:38:39,509 --> 00:38:42,720 And that's always been, in my mind, my metaphor 743 00:38:42,846 --> 00:38:47,183 for a team working really hard on something they're passionate about 744 00:38:47,308 --> 00:38:51,437 is that it's through the team, through that group of incredibly talented people, 745 00:38:51,563 --> 00:38:53,147 bumping up against each other, 746 00:38:53,273 --> 00:38:55,483 having arguments, having fights sometimes, 747 00:38:55,608 --> 00:38:58,820 making some noise, and working together, 748 00:38:58,945 --> 00:39:01,573 they polish each other and they polish the ideas, 749 00:39:01,698 --> 00:39:05,577 and what comes out are these really beautiful stones. 750 00:39:08,079 --> 00:39:12,750 So it's hard to explain, and it's certainly not the result of one person. 751 00:39:12,876 --> 00:39:17,046 People like symbols, so I'm the symbol of certain things. 752 00:39:18,047 --> 00:39:21,634 But it really was a team effort on the Mac. 753 00:39:21,759 --> 00:39:26,973 Now, in my life, I observed something fairly early on at Apple, 754 00:39:28,808 --> 00:39:30,602 which... 755 00:39:30,727 --> 00:39:32,896 I didn't know how to explain it then, 756 00:39:33,021 --> 00:39:34,898 but I've thought a lot about it since. 757 00:39:35,023 --> 00:39:36,816 Most things in life, 758 00:39:36,941 --> 00:39:42,739 the dynamic range between average and the best is, at most, two-to-one. 759 00:39:42,864 --> 00:39:44,282 If you go to New York City, 760 00:39:44,407 --> 00:39:47,869 and you get an average taxicab driver versus the best taxicab driver, 761 00:39:47,994 --> 00:39:52,290 you're probably going to get to your destination with the best taxicab 762 00:39:52,415 --> 00:39:54,375 maybe 30% faster. 763 00:39:54,501 --> 00:39:57,003 In an automobile, what's the difference between average and the best? 764 00:39:57,128 --> 00:39:59,297 Maybe 20%. 765 00:39:59,422 --> 00:40:01,341 The best CD player and an average CD player? 766 00:40:01,466 --> 00:40:03,092 I don't know. 20%. 767 00:40:03,218 --> 00:40:07,096 So two-to-one is a big dynamic range in most of life. 768 00:40:10,266 --> 00:40:14,312 In software, and it used to be the case in hardware, too, 769 00:40:14,437 --> 00:40:16,523 the difference between average and the best 770 00:40:16,648 --> 00:40:19,901 is 50-to-1, maybe 100-to-1. 771 00:40:20,026 --> 00:40:21,486 -Easy. Yeah. -Okay? 772 00:40:21,611 --> 00:40:24,656 Very few things in life are like this. 773 00:40:24,781 --> 00:40:29,327 But what I was lucky enough to spend my life in, is like this. 774 00:40:31,329 --> 00:40:35,208 And so I've built a lot of my success 775 00:40:35,333 --> 00:40:39,754 off finding these truly gifted people, 776 00:40:39,879 --> 00:40:43,842 and not settling for B and C players but really going for the A players, 777 00:40:43,967 --> 00:40:45,552 and I found something. 778 00:40:45,718 --> 00:40:49,222 I found that when you get enough A players together, 779 00:40:49,347 --> 00:40:53,977 when you go through the incredible work to find five of these A players, 780 00:40:54,102 --> 00:40:55,603 they really like working with each other 781 00:40:55,728 --> 00:40:58,481 because they've never had a chance to do that before. 782 00:40:58,606 --> 00:41:01,776 And they don't want to work with B and C players. 783 00:41:01,901 --> 00:41:03,486 And so it becomes self-policing, 784 00:41:03,611 --> 00:41:05,905 and they only want to hire more A players, 785 00:41:06,072 --> 00:41:10,160 and so you build up these pockets of A players, and it propagates. 786 00:41:10,285 --> 00:41:15,206 And that's what the Mac team was like. They were all A players. 787 00:41:18,835 --> 00:41:22,255 And these were extraordinarily talented people. 788 00:41:23,047 --> 00:41:25,466 But they're also people who now say 789 00:41:25,592 --> 00:41:28,720 that they don't have the energy anymore to work for you. 790 00:41:28,845 --> 00:41:31,472 Mmm-hmm. Sure. 791 00:41:31,598 --> 00:41:34,809 Oh, I think if you talk to a lot of people on the Mac team, 792 00:41:34,934 --> 00:41:40,315 they will tell you it was the hardest they've ever worked in their life. 793 00:41:40,440 --> 00:41:42,525 Some of them will tell you that it was the happiest 794 00:41:42,650 --> 00:41:44,027 they've ever been in their life. 795 00:41:44,152 --> 00:41:46,070 But I think all of them will tell you 796 00:41:46,196 --> 00:41:49,908 that is certainly one of the most intense and cherished experiences 797 00:41:50,033 --> 00:41:51,701 they will ever have in their life. 798 00:41:51,826 --> 00:41:53,077 Yeah, they did. 799 00:41:57,040 --> 00:41:58,416 You know, it's... 800 00:42:00,418 --> 00:42:04,214 Some of those things are not sustainable for some people. 801 00:42:04,339 --> 00:42:08,635 What does it mean when you tell someone their work is shit? 802 00:42:11,137 --> 00:42:13,598 It usually means their work is shit. 803 00:42:13,723 --> 00:42:17,644 Sometimes, it means, "I think your work is shit, and I'm wrong." 804 00:42:17,769 --> 00:42:18,728 (CHUCKLES) 805 00:42:21,356 --> 00:42:25,151 But usually, it means their work is not anywhere near good enough. 806 00:42:25,276 --> 00:42:27,612 I had this great quote from Bill Atkinson who says, 807 00:42:27,737 --> 00:42:30,865 when you say someone's work is shit, you really mean, 808 00:42:30,990 --> 00:42:33,284 "I don't quite understand it. Would you please explain it to me?" 809 00:42:33,409 --> 00:42:35,203 (LAUGHS) 810 00:42:35,328 --> 00:42:37,372 No, that's not usually what I meant. 811 00:42:37,497 --> 00:42:38,915 (CRINGELY CHUCKLES) 812 00:42:42,001 --> 00:42:44,295 When you get really good people, 813 00:42:46,339 --> 00:42:48,049 they know they're really good, 814 00:42:48,174 --> 00:42:51,803 and you don't have to baby people's egos so much, 815 00:42:51,970 --> 00:42:54,055 and what really matters is the work. 816 00:42:54,180 --> 00:42:58,726 And everybody knows that. That's all that matters is the work. 817 00:43:02,397 --> 00:43:07,235 People are being counted on to do specific pieces of the puzzle. 818 00:43:08,528 --> 00:43:11,573 And the most important thing, I think, 819 00:43:11,698 --> 00:43:16,536 you can do for somebody who is really good and who's really being counted on 820 00:43:16,661 --> 00:43:23,168 is to point out to them when their work isn't good enough. 821 00:43:23,293 --> 00:43:27,172 And to do it very clearly and to articulate why, 822 00:43:27,297 --> 00:43:29,424 and to get them back on track. 823 00:43:29,549 --> 00:43:31,467 And you need to do that 824 00:43:31,593 --> 00:43:35,263 in a way that does not call into question your confidence in their abilities, 825 00:43:35,388 --> 00:43:38,975 but leaves not too much room for interpretation 826 00:43:39,100 --> 00:43:42,395 that the work that they have done for this particular thing 827 00:43:42,520 --> 00:43:46,024 is not good enough to support the goal of the team. 828 00:43:46,149 --> 00:43:48,359 And that's a hard thing to do. 829 00:43:49,569 --> 00:43:52,864 And I've always taken a very direct approach. 830 00:43:54,449 --> 00:43:58,495 And I think if you talk to people that have worked with me, 831 00:43:58,620 --> 00:44:02,123 the really good people have found it beneficial. 832 00:44:02,957 --> 00:44:05,084 Some people have hated it. 833 00:44:09,297 --> 00:44:14,886 And I'm also one of these people that I don't really care about being right. 834 00:44:15,011 --> 00:44:17,805 I just care about success. 835 00:44:17,931 --> 00:44:20,767 So, you'll find a lot of people that will tell you 836 00:44:20,892 --> 00:44:23,520 that I had a very strong opinion 837 00:44:23,686 --> 00:44:27,148 and they presented evidence to the contrary, 838 00:44:27,273 --> 00:44:29,692 and five minutes later, I completely changed my mind. 839 00:44:29,818 --> 00:44:32,028 Because I'm like that. I don't mind being wrong. 840 00:44:32,153 --> 00:44:34,030 I'll admit that I'm wrong a lot. 841 00:44:34,155 --> 00:44:35,865 It doesn't really matter to me too much. 842 00:44:35,990 --> 00:44:39,118 What matters to me is that we do the right thing. 843 00:44:39,244 --> 00:44:42,705 CRINGELY: So how and why did Apple get into desktop publishing 844 00:44:42,831 --> 00:44:45,750 which would become the Mac's killer app? 845 00:44:45,875 --> 00:44:47,669 I don't know if you know this, but we got 846 00:44:47,794 --> 00:44:51,589 the first Canon laser printer engine shipped in the United States at Apple, 847 00:44:51,714 --> 00:44:55,635 and we had it hooked up to a Lisa, actually imaging pages before anybody. 848 00:44:55,760 --> 00:44:59,389 Before HP. Long before HP, long before Adobe. 849 00:44:59,514 --> 00:45:01,599 But I heard a few times, people would tell me, 850 00:45:01,724 --> 00:45:04,185 "Hey, there are these guys over in this garage that left Xerox PARC. 851 00:45:04,352 --> 00:45:05,353 "You ought to go see them." 852 00:45:05,478 --> 00:45:07,188 And I finally went and saw them, 853 00:45:07,313 --> 00:45:09,816 and I saw what they were doing, 854 00:45:09,941 --> 00:45:11,943 and it was better than what we were doing. 855 00:45:12,068 --> 00:45:13,153 And they were gonna be a hardware company. 856 00:45:13,278 --> 00:45:15,280 They wanted to make printers and the whole thing. 857 00:45:15,405 --> 00:45:19,159 And so I talked them into being a software company. 858 00:45:21,494 --> 00:45:23,538 And within two or three weeks, 859 00:45:23,705 --> 00:45:26,040 we had canceled our internal project. 860 00:45:26,166 --> 00:45:28,710 And a bunch of people wanted to kill me over this, but we did it. 861 00:45:28,877 --> 00:45:32,672 And I had cut a deal with Adobe to use their software, 862 00:45:32,797 --> 00:45:36,301 and we bought 19.9% of Adobe at Apple. 863 00:45:36,426 --> 00:45:39,179 They needed some financing. We wanted a little bit of control. 864 00:45:39,304 --> 00:45:41,181 And we were off to the races, 865 00:45:41,306 --> 00:45:43,600 and so we got the engines from Canon. 866 00:45:43,725 --> 00:45:47,562 We designed the first laser printer controller at Apple. 867 00:45:47,687 --> 00:45:51,191 And we got the software from Adobe, and we introduced the LaserWriter. 868 00:45:51,316 --> 00:45:55,820 And no one at the company wanted to do it but a few of us in the Mac group. 869 00:45:55,945 --> 00:45:58,823 Everybody thought a $7,000 printer was crazy. 870 00:45:58,948 --> 00:46:01,910 What they didn't understand was you could share it with AppleTalk. 871 00:46:02,035 --> 00:46:03,077 They understood it intellectually, 872 00:46:03,203 --> 00:46:04,787 but they didn't understand it viscerally 873 00:46:04,913 --> 00:46:08,041 because the last really expensive thing we tried to sell was Lisa. 874 00:46:08,166 --> 00:46:09,876 So we pushed this thing through. 875 00:46:10,001 --> 00:46:12,045 And I had to basically do it over a few dead bodies, 876 00:46:12,170 --> 00:46:13,630 but we pushed this thing through, 877 00:46:13,755 --> 00:46:16,257 and it was the first laser printer on the market, as you know, 878 00:46:16,382 --> 00:46:18,927 and the rest is history. 879 00:46:19,052 --> 00:46:20,720 When I left Apple, 880 00:46:20,845 --> 00:46:24,641 Apple was the largest printer company measured by revenue in the world. 881 00:46:24,807 --> 00:46:25,934 Wow. 882 00:46:26,059 --> 00:46:29,145 It lost that distinction to Hewlett-Packard 883 00:46:29,270 --> 00:46:32,440 about three or four years after I left, unfortunately. 884 00:46:32,565 --> 00:46:35,151 But when I left, it was the largest printer company in the world. 885 00:46:35,276 --> 00:46:39,239 Did you envision desktop publishing? Was that a no-brainer? 886 00:46:39,364 --> 00:46:40,865 (SIGHS) You know... 887 00:46:46,204 --> 00:46:48,331 Yes. 888 00:46:48,456 --> 00:46:52,877 But we also envisioned really a networked office. 889 00:46:53,795 --> 00:46:56,631 And so, in January of 1995, 890 00:46:56,756 --> 00:46:59,759 when we had our annual meeting and introduced our new products, 891 00:46:59,884 --> 00:47:03,137 I made probably the largest marketing blunder of my career. 892 00:47:03,263 --> 00:47:06,266 -1985. -1985, sorry. 893 00:47:06,391 --> 00:47:08,643 I made, probably, the largest marketing blunder of my career 894 00:47:08,768 --> 00:47:11,646 by announcing the Macintosh Office 895 00:47:11,771 --> 00:47:15,525 instead of just desktop publishing. 896 00:47:15,692 --> 00:47:20,446 And we had desktop publishing as a major component of that, 897 00:47:20,572 --> 00:47:23,533 but we announced a bunch of other stuff as well, 898 00:47:23,658 --> 00:47:27,162 and I think we should have just focused on desktop publishing at that time. 899 00:47:27,287 --> 00:47:30,540 CRINGELY: After serious disagreements with Apple CEO John Sculley, 900 00:47:30,665 --> 00:47:34,169 Steve left the company in 1985. 901 00:47:34,294 --> 00:47:36,838 Tell us about your departure from Apple. 902 00:47:36,963 --> 00:47:41,885 Oh, it was very painful. I'm not even sure I want to talk about it. 903 00:47:44,762 --> 00:47:47,098 What can I say? I hired the wrong guy. 904 00:47:47,265 --> 00:47:49,017 -That was Sculley? -Yeah. 905 00:47:52,103 --> 00:47:56,441 And he destroyed everything I'd spent 10 years working for. 906 00:47:57,484 --> 00:48:00,987 Starting with me, but that wasn't the saddest part. 907 00:48:01,112 --> 00:48:03,281 I would have gladly left Apple 908 00:48:03,406 --> 00:48:07,285 if Apple would have turned out like I'd wanted it to. 909 00:48:08,495 --> 00:48:13,082 He basically got on a rocket ship that was about to leave the pad. 910 00:48:13,208 --> 00:48:15,585 And the rocket ship left the pad. 911 00:48:18,713 --> 00:48:20,340 And it kind of went to his head. 912 00:48:20,465 --> 00:48:24,802 He got confused, and thought that he built the rocket ship. 913 00:48:26,179 --> 00:48:28,139 And then he 914 00:48:29,807 --> 00:48:31,434 changed the trajectory 915 00:48:31,559 --> 00:48:34,604 so that it was inevitably going to crash into the ground. 916 00:48:34,729 --> 00:48:36,147 But it was always the... 917 00:48:36,272 --> 00:48:39,442 In the pre-Macintosh days, and the early Macintosh days, 918 00:48:39,567 --> 00:48:41,277 it was always the Steve and John show. 919 00:48:41,402 --> 00:48:43,154 You two were joined at the hip for a while there. 920 00:48:43,321 --> 00:48:44,656 Right. That's right. 921 00:48:44,781 --> 00:48:47,492 -And then something happened to split you. -That's correct. 922 00:48:47,617 --> 00:48:49,661 What was that catalyst? 923 00:48:49,786 --> 00:48:52,789 (SIGHS) Well, what happened was that 924 00:48:52,914 --> 00:48:56,626 the industry went into a recession 925 00:48:56,751 --> 00:48:59,420 in late 1984. 926 00:48:59,587 --> 00:49:03,383 Sales started seriously contracting. 927 00:49:03,508 --> 00:49:06,302 And John didn't know what to do. 928 00:49:07,095 --> 00:49:09,013 He had not a clue. 929 00:49:09,138 --> 00:49:12,559 And there was a leadership vacuum at the top of Apple. 930 00:49:12,684 --> 00:49:15,979 There were fairly strong general managers running the divisions. 931 00:49:16,104 --> 00:49:17,730 I was running the Macintosh division, 932 00:49:17,897 --> 00:49:19,566 somebody else was running the Apple II division, et cetera. 933 00:49:19,691 --> 00:49:21,442 There were some problems with some of the divisions. 934 00:49:21,568 --> 00:49:23,695 There was a person running the storage division 935 00:49:23,820 --> 00:49:25,446 that was completely out to lunch. 936 00:49:25,572 --> 00:49:27,574 And a bunch of things that needed to be changed. 937 00:49:27,699 --> 00:49:31,995 But all those problems got put in a pressure cooker 938 00:49:32,162 --> 00:49:35,582 because of this contraction in the market place. 939 00:49:35,707 --> 00:49:37,792 And there was no leadership. 940 00:49:40,170 --> 00:49:41,671 John 941 00:49:43,464 --> 00:49:48,386 was in a situation where the board was not happy 942 00:49:48,553 --> 00:49:55,059 and where he was probably not long for the company. 943 00:49:55,185 --> 00:49:59,063 And one thing I did not ever see about John until that time 944 00:49:59,189 --> 00:50:02,317 was he had an incredible survival instinct. 945 00:50:02,775 --> 00:50:04,152 Somebody once told me, 946 00:50:04,277 --> 00:50:07,113 "This guy didn't get to be the president of PepsiCo 947 00:50:07,238 --> 00:50:09,741 "without these kinds of instincts." 948 00:50:09,908 --> 00:50:12,243 And it was true. 949 00:50:12,368 --> 00:50:15,330 And John decided that 950 00:50:15,455 --> 00:50:20,460 a really good person to be the root of all these problems would be me. 951 00:50:20,585 --> 00:50:25,590 And so, we came to loggerheads. 952 00:50:25,715 --> 00:50:30,470 And John had cultivated a very close relationship with the board. 953 00:50:30,887 --> 00:50:32,764 And they believed him. 954 00:50:32,889 --> 00:50:34,933 So, that's what happened. 955 00:50:35,058 --> 00:50:37,560 So there were competing visions for the company? 956 00:50:37,685 --> 00:50:38,811 Oh, clearly. 957 00:50:38,937 --> 00:50:41,064 Well, not so much competing visions for the company, 958 00:50:41,189 --> 00:50:43,191 'cause I don't think John had a vision for the company. 959 00:50:43,316 --> 00:50:47,904 Well, I guess I'm asking, what was your vision that lost out in this instance? 960 00:50:48,029 --> 00:50:51,407 It wasn't an issue of vision. 961 00:50:51,574 --> 00:50:54,035 It was an issue 962 00:50:55,787 --> 00:50:58,039 of execution. 963 00:50:58,164 --> 00:51:02,502 In the sense that my belief 964 00:51:02,627 --> 00:51:07,465 was that Apple needed much stronger leadership, 965 00:51:07,590 --> 00:51:11,970 to unite these various factions that we had created with the divisions, 966 00:51:12,095 --> 00:51:14,472 that the Macintosh was the future of Apple, 967 00:51:14,597 --> 00:51:18,810 that we needed to rein back expenses dramatically in the Apple II area, 968 00:51:18,935 --> 00:51:23,731 that we needed to be spending very heavily in the Macintosh area. 969 00:51:24,440 --> 00:51:26,067 Things like that. 970 00:51:26,234 --> 00:51:30,363 And John's vision was that he should remain the CEO of the company. 971 00:51:30,488 --> 00:51:31,990 (BOTH LAUGH) 972 00:51:32,115 --> 00:51:36,578 And anything that would help him do that would be acceptable. 973 00:51:39,914 --> 00:51:42,876 I think that 974 00:51:43,001 --> 00:51:47,463 Apple was in a state of paralysis in the early part of 1985. 975 00:51:50,967 --> 00:51:55,221 And I wasn't, at that time, capable, I don't think, 976 00:51:55,346 --> 00:51:57,807 of running the company as a whole. 977 00:51:58,349 --> 00:52:00,643 I was 30 years old. 978 00:52:00,810 --> 00:52:06,524 And I don't think I had enough experience to run a two-billion-dollar company. 979 00:52:06,649 --> 00:52:09,903 Unfortunately, John didn't either. 980 00:52:13,656 --> 00:52:20,205 So anyway, I was told, in no uncertain terms, that there was no job for me. 981 00:52:20,330 --> 00:52:23,791 -That was really, really tragic. -Siberia. 982 00:52:23,917 --> 00:52:27,629 Yeah. It would have been far smarter for Apple to let me work on the next... 983 00:52:27,754 --> 00:52:30,548 I volunteered. I said, "Why don't I start a research division? 984 00:52:30,673 --> 00:52:34,260 "And give me a few million bucks a year and I'll go hire some really great people. 985 00:52:34,427 --> 00:52:36,262 "We'll do the next great thing." 986 00:52:36,387 --> 00:52:39,724 -And I was told there was no opportunity to do that. -Oh, wow. 987 00:52:39,849 --> 00:52:43,228 So, my office was taken away. 988 00:52:43,353 --> 00:52:46,898 It was... I'll get real emotional if we keep talking about this. 989 00:52:47,023 --> 00:52:49,818 Anyway... But that's irrelevant. 990 00:52:49,943 --> 00:52:52,529 I'm just one person, and the company was a lot more people than me. 991 00:52:52,654 --> 00:52:53,988 So that's not the important part. 992 00:52:54,113 --> 00:52:57,116 The important part was 993 00:52:57,242 --> 00:53:03,665 the values of Apple over the next several years were systematically destroyed. 994 00:53:03,790 --> 00:53:07,377 CRINGELY: I then asked Steve for his thoughts on the state of Apple. 995 00:53:07,502 --> 00:53:11,673 Remember, this was 1995, a year before he would go back to Apple. 996 00:53:11,798 --> 00:53:15,218 Remember, too, that when Apple bought NeXT a year after this interview, 997 00:53:15,343 --> 00:53:20,473 Steve immediately sold the Apple stock he received as part of the sale. 998 00:53:20,598 --> 00:53:22,767 Apple's dying today. 999 00:53:22,892 --> 00:53:25,520 Apple's dying a very painful death. 1000 00:53:25,645 --> 00:53:29,399 It's on a glide slope to die. 1001 00:53:29,524 --> 00:53:32,861 And the reason is because... 1002 00:53:32,986 --> 00:53:34,571 When I walked out the door at Apple, 1003 00:53:34,696 --> 00:53:37,198 we had a 10-year lead on everybody else in the industry. 1004 00:53:37,323 --> 00:53:38,867 Macintosh was 10 years ahead. 1005 00:53:38,992 --> 00:53:42,245 We watched Microsoft take 10 years to catch up with it. 1006 00:53:42,370 --> 00:53:46,875 Well, the reason that they could catch up with it was because Apple stood still. 1007 00:53:47,000 --> 00:53:53,047 The Macintosh that's shipping today is 25% different than the day I left. 1008 00:53:53,173 --> 00:53:55,884 They've spent hundreds of millions of dollars a year on R&D. 1009 00:53:56,009 --> 00:53:59,888 A total of, probably, $5 billion on R&D. 1010 00:54:00,805 --> 00:54:02,682 What did they get for it? 1011 00:54:03,600 --> 00:54:04,934 I don't know. 1012 00:54:05,101 --> 00:54:06,644 But it was... 1013 00:54:09,314 --> 00:54:11,524 What happened was 1014 00:54:11,649 --> 00:54:14,903 the understanding of 1015 00:54:15,028 --> 00:54:20,408 how to move these things forward and how to create these new products 1016 00:54:20,533 --> 00:54:22,619 somehow evaporated. 1017 00:54:22,744 --> 00:54:25,580 And I think a lot of the good people stuck around for a while. 1018 00:54:25,705 --> 00:54:28,291 But there wasn't an opportunity to get together and do this 1019 00:54:28,416 --> 00:54:31,794 'cause there wasn't any leadership to do that. 1020 00:54:31,920 --> 00:54:34,214 So, what's happened with Apple now is that 1021 00:54:34,339 --> 00:54:37,091 they've fallen behind in many respects, 1022 00:54:37,217 --> 00:54:38,426 certainly in market share. 1023 00:54:38,551 --> 00:54:39,928 And most importantly, 1024 00:54:40,053 --> 00:54:43,681 their differentiation has been eroded by Microsoft. 1025 00:54:43,848 --> 00:54:47,352 And so, what they have now is, they have their installed base. 1026 00:54:47,477 --> 00:54:50,522 Which is not growing, and which is shrinking slowly, 1027 00:54:50,647 --> 00:54:56,402 but will provide a good revenue stream for several years. 1028 00:54:56,528 --> 00:55:00,198 But it's a glide slope that's just gonna go like this. 1029 00:55:00,323 --> 00:55:03,034 So, it's unfortunate. 1030 00:55:03,201 --> 00:55:05,954 And I don't really think it's reversible at this point in time. 1031 00:55:06,079 --> 00:55:08,957 Neither do I. What about Microsoft? 1032 00:55:09,082 --> 00:55:12,001 -That's the juggernaut now. -Right. 1033 00:55:12,126 --> 00:55:17,966 And it's a Ford LTD 1034 00:55:18,091 --> 00:55:19,759 going into the future. 1035 00:55:19,884 --> 00:55:22,762 It's definitely not a Cadillac. It's not a BMW. 1036 00:55:22,887 --> 00:55:25,390 -Yeah. -It's just... 1037 00:55:25,557 --> 00:55:29,185 What's going on there? How did those guys do that? 1038 00:55:32,856 --> 00:55:39,195 Well, Microsoft's orbit was made possible by a Saturn V booster called IBM. 1039 00:55:41,030 --> 00:55:44,284 And I know Bill would get upset with me for saying this, 1040 00:55:44,409 --> 00:55:46,536 but of course it was true. 1041 00:55:49,956 --> 00:55:52,417 And much to Bill and Microsoft's credit, 1042 00:55:52,542 --> 00:55:57,630 they used that fantastic opportunity to create more opportunity for themselves. 1043 00:55:57,755 --> 00:56:01,718 Most people don't remember, but until 1984 with the Mac, 1044 00:56:01,843 --> 00:56:03,553 Microsoft was not in the applications business. 1045 00:56:03,678 --> 00:56:05,638 It was dominated by Lotus. 1046 00:56:05,763 --> 00:56:09,017 And Microsoft took a big gamble to write for the Mac. 1047 00:56:09,142 --> 00:56:11,978 And they came out with applications that were terrible. 1048 00:56:12,103 --> 00:56:14,814 But they kept at it and they made them better, 1049 00:56:14,939 --> 00:56:17,650 and eventually, they dominated the Macintosh application market. 1050 00:56:17,775 --> 00:56:20,862 And then used a springboard of Windows 1051 00:56:20,987 --> 00:56:23,865 to get into the PC market with those same applications. 1052 00:56:23,990 --> 00:56:26,242 And now they dominate the applications in the PC space, too. 1053 00:56:26,367 --> 00:56:28,203 So, they have two characteristics. 1054 00:56:28,328 --> 00:56:31,998 I think they're very strong opportunists, and I don't mean that in a bad way. 1055 00:56:32,123 --> 00:56:35,710 And two, they're like the Japanese. They just keep on coming. 1056 00:56:35,877 --> 00:56:40,673 They were able to do that because of the revenue stream from the IBM deal. 1057 00:56:40,798 --> 00:56:43,551 But nonetheless, they made the most of it, 1058 00:56:43,676 --> 00:56:45,762 and I give them a lot of credit for that. 1059 00:56:45,929 --> 00:56:49,432 The only problem with Microsoft is they just have no taste. 1060 00:56:49,557 --> 00:56:52,852 They have absolutely no taste. And what that means is... 1061 00:56:52,977 --> 00:56:55,522 I don't mean that in a small way, I mean that in a big way. 1062 00:56:55,647 --> 00:56:57,148 In the sense that... 1063 00:57:04,364 --> 00:57:06,825 ...they don't think of original ideas 1064 00:57:06,950 --> 00:57:10,703 and they don't bring much culture into their product. 1065 00:57:10,829 --> 00:57:13,206 And you say, "Well, why is that important?" 1066 00:57:13,331 --> 00:57:17,126 Well, proportionally-spaced fonts come from typesetting and beautiful books. 1067 00:57:17,252 --> 00:57:19,170 That's where one gets the idea. 1068 00:57:19,295 --> 00:57:24,592 If it weren't for the Mac, they would never have that in their products. 1069 00:57:26,386 --> 00:57:31,558 And so, I guess I am saddened, not by Microsoft's success. 1070 00:57:31,683 --> 00:57:33,977 I have no problem with their success. 1071 00:57:34,102 --> 00:57:37,897 They've earned their success for the most part. 1072 00:57:38,022 --> 00:57:42,235 I have a problem with the fact that they just make really third-rate products. 1073 00:57:42,360 --> 00:57:45,822 Their products have no spirit to them. 1074 00:57:45,947 --> 00:57:50,451 Their products have no spirit of enlightenment about them. 1075 00:57:50,577 --> 00:57:53,121 They are very pedestrian. 1076 00:57:53,246 --> 00:57:58,793 And the sad part is that most customers don't have a lot of that spirit either. 1077 00:57:58,918 --> 00:58:04,090 But the way that we're going to ratchet up our species 1078 00:58:04,215 --> 00:58:08,011 is to take the best and to spread it around to everybody, 1079 00:58:08,136 --> 00:58:11,181 so that everybody grows up with better things 1080 00:58:11,306 --> 00:58:15,810 and starts to understand the subtlety of these better things. 1081 00:58:20,982 --> 00:58:23,735 And Microsoft's just... It's McDonald's. 1082 00:58:23,860 --> 00:58:27,197 So that's what saddens me. 1083 00:58:28,031 --> 00:58:30,366 Not that Microsoft has won, 1084 00:58:30,492 --> 00:58:33,870 but that Microsoft's products don't display... 1085 00:58:37,207 --> 00:58:39,667 ...more insight and more creativity. 1086 00:58:39,792 --> 00:58:43,588 So, what are you doing about it? Tell us about NeXT. 1087 00:58:43,713 --> 00:58:46,716 -Well, I'm not doing anything about it. -Okay. 1088 00:58:46,841 --> 00:58:51,638 Because NeXT is too small of a company to do anything about that. 1089 00:58:51,888 --> 00:58:53,556 I'm just watching it. 1090 00:58:53,681 --> 00:58:57,519 And there is really nothing I can do about it. 1091 00:58:58,812 --> 00:59:00,522 CRINGELY: Next, we talked about NeXT, 1092 00:59:00,647 --> 00:59:05,693 the company Steve was running in 1995 which Apple was soon to buy. 1093 00:59:05,819 --> 00:59:11,115 NeXT software would become the heart of the Mac in the form of OS X. 1094 00:59:11,241 --> 00:59:12,283 You don't really want to hear about NeXT, do you? 1095 00:59:12,408 --> 00:59:14,327 -Yes, I do. -You do. Okay. 1096 00:59:19,457 --> 00:59:21,084 Well, maybe the best thing, since we don't have much time, 1097 00:59:21,209 --> 00:59:22,627 is I just tell you what NeXT is today. 1098 00:59:22,794 --> 00:59:24,671 -Yeah, that's fine. -The... 1099 00:59:28,174 --> 00:59:30,260 There hasn't been... 1100 00:59:36,599 --> 00:59:38,643 Clearly, 1101 00:59:42,355 --> 00:59:47,861 the innovation in the computer industry is happening in software right now. 1102 00:59:50,113 --> 00:59:55,493 And there hasn't been a revolution in how we create software in a long... 1103 00:59:55,910 --> 00:59:57,537 (SNEEZES) Sorry. 1104 00:59:59,789 --> 01:00:01,958 The innovation in the industry is in software. 1105 01:00:02,083 --> 01:00:06,045 And there hasn't ever been a real revolution in how we created software. 1106 01:00:06,171 --> 01:00:09,591 Certainly not in the last 20 years. Matter of fact, it's gotten worse. 1107 01:00:09,716 --> 01:00:14,179 While the Macintosh was a revolution for the end user to make it easier to use, 1108 01:00:14,304 --> 01:00:17,974 it was the opposite for the developer. The developer paid the price. 1109 01:00:18,099 --> 01:00:20,310 And software got much more complicated to write 1110 01:00:20,435 --> 01:00:23,646 as it became easier to use for the end user. 1111 01:00:24,564 --> 01:00:28,234 So, software is infiltrating everything we do these days. 1112 01:00:28,359 --> 01:00:32,197 In businesses, software is one of the most potent competitive weapons. 1113 01:00:32,322 --> 01:00:35,825 The most successful business war 1114 01:00:35,950 --> 01:00:39,245 was MCI's Friends and Family in the last 10 years. 1115 01:00:39,370 --> 01:00:40,830 And what was that? 1116 01:00:40,955 --> 01:00:43,625 It was a brilliant idea and it was custom billing software. 1117 01:00:43,750 --> 01:00:46,169 AT&T didn't respond for 18 months, 1118 01:00:46,336 --> 01:00:48,796 yielding billions of dollars' worth of market share to MCI, 1119 01:00:48,922 --> 01:00:50,256 not because they were stupid 1120 01:00:50,423 --> 01:00:52,592 but because they couldn't get the billing software done. 1121 01:00:52,717 --> 01:00:56,137 So in ways like that and smaller ways, 1122 01:00:56,262 --> 01:01:00,308 software is becoming an incredible force in this world. 1123 01:01:01,810 --> 01:01:03,853 To provide new goods and services to people, 1124 01:01:03,978 --> 01:01:06,648 whether it's over the Internet or what have you. 1125 01:01:06,773 --> 01:01:10,777 Software is going to be a major enabler in our society. 1126 01:01:11,820 --> 01:01:17,575 We have taken another one of those brilliant original ideas at Xerox PARC 1127 01:01:17,700 --> 01:01:20,537 that I saw in 1979, but didn't see really clearly then, 1128 01:01:20,662 --> 01:01:22,831 called object-oriented technology. 1129 01:01:22,997 --> 01:01:26,459 And we have perfected it and commercialized it here 1130 01:01:26,584 --> 01:01:29,254 and become the biggest supplier of it to the market. 1131 01:01:29,379 --> 01:01:35,468 And this object technology lets you build software 10 times faster and is better. 1132 01:01:36,803 --> 01:01:39,472 And so that's what we do. 1133 01:01:39,597 --> 01:01:41,933 And we've got a small-to- medium-sized business 1134 01:01:42,058 --> 01:01:44,435 and we're the largest supplier of objects. 1135 01:01:44,561 --> 01:01:47,063 We're a 50-to- 75-million-dollar company. 1136 01:01:47,188 --> 01:01:48,648 Got about 300 people. 1137 01:01:48,773 --> 01:01:50,400 And that's what we do. 1138 01:01:52,318 --> 01:01:55,697 The end of the third show, actually, 1139 01:01:55,822 --> 01:01:57,949 -is the one moment where we do look into the future... -Uh-huh. 1140 01:01:58,074 --> 01:02:00,118 -...as Channel 4 has asked us to do that. -Sure. 1141 01:02:00,243 --> 01:02:04,330 And so what's your vision of 10 years from now 1142 01:02:04,455 --> 01:02:08,334 with this technology that you're developing? 1143 01:02:12,005 --> 01:02:17,051 Well, I think the Internet and the Web... 1144 01:02:17,177 --> 01:02:20,263 There are two exciting things happening in software and in computing today. 1145 01:02:20,388 --> 01:02:22,849 I think one is objects, but the other one is the Web. 1146 01:02:23,016 --> 01:02:24,726 The Web is incredibly exciting 1147 01:02:24,851 --> 01:02:28,146 because it is the fulfilment of a lot of our dreams 1148 01:02:28,271 --> 01:02:32,650 that the computer would ultimately not be primarily a device for computation 1149 01:02:32,775 --> 01:02:36,821 but metamorphosize into a device for communication. 1150 01:02:36,946 --> 01:02:40,533 And with the Web, that's finally happening. 1151 01:02:40,658 --> 01:02:43,077 And secondly, it's exciting because Microsoft doesn't own it, 1152 01:02:43,203 --> 01:02:46,164 and therefore, there's a tremendous amount of innovation happening. 1153 01:02:46,289 --> 01:02:51,336 So I think that the Web is going to be profound in what it does to our society. 1154 01:02:51,503 --> 01:02:53,838 As you know, about 15% of the goods and services in the US 1155 01:02:53,963 --> 01:02:56,090 are sold via catalogs or over the television. 1156 01:02:56,216 --> 01:02:59,302 All that is gonna go on the Web and more. Billions and billions. 1157 01:02:59,427 --> 01:03:01,763 Soon tens of billions of dollars' worth of goods and services 1158 01:03:01,888 --> 01:03:03,306 are gonna be sold on the Web. 1159 01:03:03,431 --> 01:03:05,600 A way to think about it 1160 01:03:05,767 --> 01:03:09,062 is that it is the ultimate direct-to-customer distribution channel. 1161 01:03:09,187 --> 01:03:11,940 Another way to think about it is the smallest company in the world 1162 01:03:12,065 --> 01:03:16,820 can look as large as the largest company in the world on the Web. 1163 01:03:17,278 --> 01:03:19,614 So I think the Web... 1164 01:03:19,739 --> 01:03:21,491 As we look back 10 years from now, 1165 01:03:21,616 --> 01:03:24,911 the Web is going to be the defining technology... 1166 01:03:25,036 --> 01:03:26,454 (STAMMERS) 1167 01:03:28,957 --> 01:03:32,877 The defining social moment for computing. 1168 01:03:33,002 --> 01:03:35,755 And I think it's going to be huge. 1169 01:03:35,880 --> 01:03:39,717 I think it's breathed a whole new generation of life 1170 01:03:39,843 --> 01:03:41,469 into personal computing. 1171 01:03:41,594 --> 01:03:44,055 And I think it's going to be huge. 1172 01:03:44,347 --> 01:03:45,557 Yeah. 1173 01:03:45,682 --> 01:03:47,475 And you're making software that... 1174 01:03:47,600 --> 01:03:49,185 Oh, absolutely, but so is everybody. 1175 01:03:49,310 --> 01:03:51,104 Just forget about what we're doing. 1176 01:03:51,229 --> 01:03:58,278 Just as an industry, the Web is gonna open a whole new door to this industry. 1177 01:03:58,403 --> 01:04:02,323 And it's another one of those things that it's obvious once it happens, 1178 01:04:02,448 --> 01:04:03,825 but five years ago, who would have guessed? 1179 01:04:03,950 --> 01:04:05,618 Right. That's right. 1180 01:04:07,245 --> 01:04:10,165 Isn't this a wonderful place we live in? 1181 01:04:10,748 --> 01:04:14,919 CRINGELY: I was keen to know about Steve's passion. What drove him? 1182 01:04:15,086 --> 01:04:18,131 I read an article when I was very young in Scientific American, 1183 01:04:18,256 --> 01:04:22,510 and it measured the efficiency of locomotion 1184 01:04:22,635 --> 01:04:24,929 for various species on the planet. 1185 01:04:25,054 --> 01:04:30,477 So for bears and chimpanzees and raccoons and birds and fish. 1186 01:04:30,602 --> 01:04:33,730 How many kilocalories per kilometer did they spend to move? 1187 01:04:33,855 --> 01:04:35,815 And humans were measured, too. 1188 01:04:35,940 --> 01:04:40,737 And the condor won. It was the most efficient. 1189 01:04:40,862 --> 01:04:43,865 And mankind, the crown of creation, 1190 01:04:43,990 --> 01:04:45,867 came in with a rather unimpressive showing 1191 01:04:45,992 --> 01:04:48,828 about a third of the way down the list. 1192 01:04:49,662 --> 01:04:55,502 But somebody there had the brilliance to test a human riding a bicycle. 1193 01:04:56,920 --> 01:04:59,797 Blew away the condor. All the way off the charts. 1194 01:04:59,923 --> 01:05:03,092 And I remember, this really had an impact on me. 1195 01:05:03,218 --> 01:05:06,638 I really remember this that humans are tool builders, 1196 01:05:06,763 --> 01:05:12,852 and we build tools that can dramatically amplify our innate human abilities. 1197 01:05:13,686 --> 01:05:15,063 And to me... 1198 01:05:15,188 --> 01:05:16,981 We actually ran an ad like this very early at Apple. 1199 01:05:17,148 --> 01:05:19,901 The personal computer was the bicycle of the mind. 1200 01:05:20,026 --> 01:05:22,570 And I believe that with every bone in my body 1201 01:05:22,695 --> 01:05:26,157 that of all the inventions of humans, 1202 01:05:26,324 --> 01:05:31,496 the computer is going to rank near, if not at, the top 1203 01:05:31,621 --> 01:05:34,207 as history unfolds and we look back. 1204 01:05:34,332 --> 01:05:36,543 And it is the most 1205 01:05:38,419 --> 01:05:41,089 awesome tool that we have ever invented, 1206 01:05:41,214 --> 01:05:43,174 and I feel incredibly lucky 1207 01:05:43,299 --> 01:05:47,762 to be at exactly the right place in Silicon Valley, 1208 01:05:47,887 --> 01:05:50,682 at exactly the right time, historically, 1209 01:05:50,849 --> 01:05:55,270 where this invention has taken form. 1210 01:05:55,395 --> 01:05:57,730 And as you know, when you set a vector off in space, 1211 01:05:57,897 --> 01:06:00,358 if you can change its direction a little bit at the beginning, 1212 01:06:00,483 --> 01:06:03,069 it's dramatic when it gets a few miles out in space. 1213 01:06:03,194 --> 01:06:06,489 I feel we are still, really, at the beginning of that vector. 1214 01:06:06,614 --> 01:06:09,325 And if we can nudge it in the right directions, 1215 01:06:09,450 --> 01:06:13,913 it will be a much better thing as it progresses on. 1216 01:06:16,416 --> 01:06:20,044 I think we've had a chance to do that a few times, 1217 01:06:21,171 --> 01:06:24,174 and it brings all of us associated with it tremendous satisfaction. 1218 01:06:24,340 --> 01:06:27,760 But how do you know what's the right direction? 1219 01:06:38,813 --> 01:06:41,274 Ultimately, it comes down to taste. 1220 01:06:42,233 --> 01:06:43,943 It comes down to taste. 1221 01:06:46,321 --> 01:06:52,410 It comes down to trying to expose yourself to the best things that humans have done, 1222 01:06:52,535 --> 01:06:56,289 and then try to bring those things into what you are doing. 1223 01:06:56,414 --> 01:07:01,711 Picasso had a saying. He said, "Good artists copy. Great artists steal." 1224 01:07:01,836 --> 01:07:07,008 And we have always been shameless about stealing great ideas. 1225 01:07:09,093 --> 01:07:13,473 And I think part of what made the Macintosh great 1226 01:07:13,598 --> 01:07:15,558 was that the people working on it 1227 01:07:15,683 --> 01:07:22,565 were musicians and poets and artists and zoologists and historians 1228 01:07:22,690 --> 01:07:26,319 who also happened to be the best computer scientists in the world. 1229 01:07:26,486 --> 01:07:28,196 But if it hadn't been for computer science, 1230 01:07:28,321 --> 01:07:32,408 these people would have all been doing amazing things in life in other fields. 1231 01:07:32,575 --> 01:07:37,038 And they brought with them, we all bought to this effort, 1232 01:07:38,289 --> 01:07:45,255 a very liberal arts air, 1233 01:07:45,380 --> 01:07:49,634 a very liberal arts attitude 1234 01:07:49,759 --> 01:07:54,639 that we wanted to pull in the best that we saw in these other fields 1235 01:07:54,764 --> 01:07:56,474 into this field. 1236 01:07:56,599 --> 01:08:02,647 And I don't think you get that if you're very narrow. 1237 01:08:02,772 --> 01:08:05,817 CRINGELY: One of the questions I asked everyone in the series was, 1238 01:08:05,942 --> 01:08:08,236 "Are you a hippie or a nerd?" 1239 01:08:10,321 --> 01:08:13,658 Oh, if I had to pick one of those two, I'm clearly a hippie. 1240 01:08:13,783 --> 01:08:15,577 -Yeah. -Yeah. 1241 01:08:15,702 --> 01:08:17,162 Okay, that... In 30 seconds... 1242 01:08:17,287 --> 01:08:21,958 All the people I worked with were clearly in that category, too. 1243 01:08:22,083 --> 01:08:23,209 -Really? -Yeah. 1244 01:08:24,586 --> 01:08:25,420 Yeah. 1245 01:08:26,588 --> 01:08:27,755 Yeah, why? 1246 01:08:27,881 --> 01:08:31,634 Do you seek out hippies, or are they attracted to you? 1247 01:08:31,759 --> 01:08:34,596 Well, ask yourself, "What is a hippie?" 1248 01:08:36,389 --> 01:08:38,933 This is an old word that has a lot of connotations, 1249 01:08:39,058 --> 01:08:41,352 but to me, 'cause I grew up... 1250 01:08:41,478 --> 01:08:43,771 Remember that the '60s happened in the early '70s, right? 1251 01:08:43,938 --> 01:08:45,273 So we have to remember that. 1252 01:08:45,398 --> 01:08:49,944 And that's sort of when I came of age, so I saw a lot of this. 1253 01:08:50,153 --> 01:08:53,948 And a lot of it happened right in our backyard here. 1254 01:08:57,243 --> 01:09:00,705 So, to me, the spark of that 1255 01:09:00,830 --> 01:09:04,834 was that there was something beyond 1256 01:09:05,877 --> 01:09:07,837 what you see every day. 1257 01:09:07,962 --> 01:09:09,964 There is something going on here in life... 1258 01:09:10,089 --> 01:09:15,595 Beyond just a job, and a family, and two cars in the garage, and a career, 1259 01:09:15,720 --> 01:09:17,305 there is something more going on. 1260 01:09:17,472 --> 01:09:19,849 There is another side of the coin 1261 01:09:21,142 --> 01:09:22,977 that we don't talk about much, 1262 01:09:23,102 --> 01:09:29,025 and we experience it when there's gaps, when we just aren't really... 1263 01:09:29,150 --> 01:09:31,194 When everything is not ordered and perfect, 1264 01:09:31,319 --> 01:09:32,654 when there is a gap, 1265 01:09:32,821 --> 01:09:36,324 you experience this inrush of something. 1266 01:09:36,449 --> 01:09:38,868 And a lot of people have said all throughout history, 1267 01:09:38,993 --> 01:09:40,703 you find out what that was. 1268 01:09:40,870 --> 01:09:42,330 Whether it's Thoreau, 1269 01:09:42,455 --> 01:09:45,041 or whether it's some Indian mystics, or whoever it might be, 1270 01:09:45,166 --> 01:09:46,918 and the hippie movement got a little bit of that, 1271 01:09:47,085 --> 01:09:50,630 and they wanted to find out what that was about, 1272 01:09:50,755 --> 01:09:53,758 and that life wasn't about what they saw their parents doing. 1273 01:09:53,883 --> 01:09:56,719 And of course, the pendulum swung too far the other way, and it was crazy, 1274 01:09:56,845 --> 01:09:59,764 but there was a germ of something there. 1275 01:10:02,100 --> 01:10:08,022 And it's the same thing that causes people to wanna be poets instead of bankers. 1276 01:10:11,860 --> 01:10:14,571 And I think that's a wonderful thing. 1277 01:10:14,696 --> 01:10:19,909 And I think that that same spirit can be put into products, 1278 01:10:20,034 --> 01:10:22,537 and those products can be manufactured and given to people, 1279 01:10:22,704 --> 01:10:23,997 and they can sense that spirit. 1280 01:10:24,122 --> 01:10:27,333 If you talk to people that use the Macintosh, they love it. 1281 01:10:27,458 --> 01:10:31,171 You don't hear people loving products very often. 1282 01:10:31,296 --> 01:10:32,463 Really. 1283 01:10:32,589 --> 01:10:34,674 But you could feel it in there. 1284 01:10:34,841 --> 01:10:37,969 There was something really wonderful there. 1285 01:10:41,264 --> 01:10:47,729 So, I don't think that most of the really best people that I've worked with 1286 01:10:47,854 --> 01:10:52,609 have worked with computers for the sake of working with computers. 1287 01:10:52,734 --> 01:10:56,529 They've worked with computers because they are the medium 1288 01:10:56,654 --> 01:11:01,493 that is best capable of transmitting 1289 01:11:01,618 --> 01:11:07,790 some feeling that you have, that you want to share with other people. 1290 01:11:07,916 --> 01:11:09,834 -Does that make any sense to you? -Oh, yeah. 1291 01:11:09,959 --> 01:11:12,170 And before they invented these things, 1292 01:11:12,295 --> 01:11:14,589 all these people would have done other things. 1293 01:11:14,714 --> 01:11:17,383 But computers were invented, and they did come along, 1294 01:11:17,509 --> 01:11:23,097 and all these people did get interested in school or before school, 1295 01:11:23,223 --> 01:11:27,685 and said, "Hey, this is the medium that I think I can say something in." 1296 01:11:27,852 --> 01:11:29,979 -CRINGELY: Mmm-hmm. -You know? 112159

Can't find what you're looking for?
Get subtitles in any language from opensubtitles.com, and translate them here.