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I'm Bob Cringely.
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Sixteen years ago,
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when I was making my television
series, Triumph of the Nerds,
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I interviewed Steve Jobs.
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That was in 1995.
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Ten years earlier,
Steve had left Apple,
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following a bruising
struggle with John Sculley,
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the CEO he brought
into the company.
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At the time of our interview,
Steve was running NeXT,
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the niche computer
company he founded
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after leaving Apple.
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Little did we know
that within 18 months,
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he would sell NeXT to Apple,
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and six months later,
he'd be running the place.
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The way things
work in television,
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we used only a part of that
interview in the series.
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And for years, we thought
the interview was lost forever
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because the master
tape went missing
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while being shipped from
London to the US in the 1990s.
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Then, just a few days ago,
series director Paul Sen
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found a VHS copy of that
interview in his garage.
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There are very few TV
interviews with Steve Jobs,
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and almost
no good ones.
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They rarely show the charisma, candor,
and vision that this interview does.
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And so, to honor
an amazing man,
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here's that interview
in its entirety.
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Most of this has
never been seen before.
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CRINGELY: So how did you get
involved with personal computers?
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Hmm. Well, um...
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I ran into my first computer
when I was about 10 or 11.
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And it's hard to
remember back then.
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But I'm an old fossil
now. I'm an old fossil.
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So when I was 10 or 11
was about 30 years ago.
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And no one had ever
seen a computer.
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To the extent that they'd
seen them in movies,
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and they were these big
boxes with whirring...
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For some reason, they
fixated on the tape drives
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as being the icon of
what the computer was,
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or flashing lights somehow.
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And so nobody
had ever seen one.
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They were very mysterious,
very powerful things,
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that did something
in the background.
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And so, to see one and
actually get to use one
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was a real
privilege back then.
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And I got into NASA, the Ames
Research Center down here.
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I got to use a
time-sharing terminal.
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So I didn't actually
see the computer,
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but I saw a
time-sharing terminal.
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And in those days... Again, it's
hard to remember how primitive it was.
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There was no such thing as a computer
with a graphics video display.
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It was literally a printer.
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It was a teletype printer
with a keyboard on it.
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And so you would keyboard
these commands in,
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and then you would wait for a
while, and the thing would go...
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(MIMICS CLACKING)
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And it would tell
you something out.
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But even with that, it
was still remarkable,
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especially for
a 10-year-old,
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that you could write a program
in BASIC, let's say, or FORTRAN.
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And actually, this machine
would take your idea,
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and it would execute your idea
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and give you
back some results.
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And if they were the
results that you predicted,
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your program really worked. It was
an incredibly thrilling experience.
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So, I became
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very captivated by a computer.
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And a computer, to me, was
still a little mysterious,
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'cause it was at the
other end of this wire,
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and I'd never really seen
the actual computer itself.
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And then I got tours of computers
after that, and saw the insides.
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And then I was part of this
group at Hewlett-Packard.
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When I was 12, I called up Bill Hewlett,
who lived in Hewlett-Packard at the time.
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And again, this dates me,
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but there was no such thing as
an unlisted telephone number then.
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So I could just look in the
book, and looked his name up.
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And he answered the phone,
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and I said, "Hi. My
name's Steve Jobs.
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"You don't know me,
but I'm 12 years old,
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"and I'm building
a frequency counter,
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"and I'd like
some spare parts."
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And so, he talked to
me for about 20 minutes.
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I'll never forget
it as long as I live.
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And he gave me the parts,
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but he also gave me a job working
at Hewlett-Packard that summer.
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And I was 12 years old then.
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And that really made a
remarkable influence on me.
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Hewlett-Packard was
really the only company
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I'd ever seen in
my life at that age,
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and it formed my view
of what a company was,
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and how well they
treated their employees.
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They didn't know about cholesterol
back then. But at that time,
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they used to bring a big cartful of donuts
and coffee out at 10:00 every morning.
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Everybody would take a
coffee and donut break.
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And just little things
like that, it was clear that
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the company recognized that its
true value was its employees.
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So anyway, things led to
things with Hewlett-Packard,
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and I started going up to
their Palo Alto research labs
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every Tuesday night with
a small group of people
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to meet some of their
researchers and stuff,
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and I saw the first
desktop computer ever made,
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which was the
Hewlett-Packard 9100.
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It was about as
big as a suitcase,
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but it actually had a small
cathode-ray tube display in it,
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and it was completely
self-contained.
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There was no wire going off
behind the curtain somewhere.
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And I fell in love with it.
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And you could program
it in BASIC and APL.
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And I would just, for hours,
get a ride up to Hewlett-Packard
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and just hang around that
machine and write programs for it.
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And so that was
the early days.
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And I met Steve Wozniak
around that time, too.
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Well, maybe a little earlier
when I was about 14, 15 years old.
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And we immediately hit it off.
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He was the first person I'd met that
knew more about electronics than I did,
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and so I was...
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I liked him a lot, and he was
maybe five years older than I.
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He'd gone off to college and gotten
kicked out for pulling pranks,
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and was living
with his parents,
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and going to De Anza,
the local junior college.
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So we became fast friends, and
started doing projects together.
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We read about...
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We read about the story
in Esquire magazine
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about this guy
named Captain Crunch
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who could supposedly
make free telephone calls.
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You've heard about
this, I'm sure.
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And again, we were captivated.
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How could anybody do this?
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And we thought
it must be a hoax.
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And we started looking
through the libraries,
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looking for the secret tones
that would allow you to do this.
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And it turned out, we were at
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Stanford Linear Accelerator
Center one night,
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and way in the bowels of
their technical library,
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way down at the last bookshelf,
in the corner bottom rack,
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we found an AT&T technical journal
that laid out the whole thing.
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And that's another
moment I'll never forget.
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When we saw this journal, we
thought, "My God! It's all real."
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And so, we set out to build
a device to make these tones.
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And the way it worked was,
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you know when you make a
long-distance call, you used to hear...
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(MIMICS DIAL TONE)
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Right? In the background?
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They were tones
that sounded like
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the touch tone you
could make on your phone,
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but they were a different
frequency, so you couldn't make them.
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It turned out that, that was the signal
from one telephone computer to another
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controlling the
computers in the network.
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And AT&T made a fatal
flaw when they designed
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the original telephone network,
digital telephone network,
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was they put the signaling
from computer to computer
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in the same band
as your voice,
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which meant that if you
could make those same signals,
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you could put it right
in through the handset.
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And literally, the entire AT&T
international phone network
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would think you were
an AT&T computer.
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So, after three weeks, we finally
built a box like this that worked.
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And I remember, the first
call we made was down to LA,
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one of Woz's relatives
down in Pasadena.
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We dialed the wrong number,
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but we woke some guy up
in the middle of the night,
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and we were
yelling at him like,
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"Don't you understand we
made this call for free?"
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And this person
didn't appreciate that.
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But it was miraculous,
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and we built these little boxes to
do blue boxing, as it was called,
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and we put a little note
in the bottom of them.
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Our logo was, "He's got the
whole world in his hands."
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(CHUCKLES) And they worked.
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We built the best
blue box in the world.
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It was all digital.
No adjustments.
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And so you could
go up to a pay phone
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and you could take a
trunk over to White Plains,
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and then take a satellite over
to Europe, and then go to Turkey,
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take a cable back to Atlanta.
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And you could go
around the world.
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You could go around the
world five or six times
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'cause we learned all the codes for
how to get on the satellites and stuff.
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00:09:02,398 --> 00:09:04,108
And then, you could call
the pay phone next door,
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00:09:04,234 --> 00:09:05,860
and so you could
shout in the phone,
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and after about a minute, it
would come out the other phone.
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It was... It was miraculous.
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And you might ask, "Well, what's
so interesting about that?"
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What's so interesting
is that we were young.
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And what we learned was
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that we could build
something ourselves
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that could control billions of dollars'
worth of infrastructure in the world.
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That was what we learned,
was that us two...
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We didn't know much.
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We could build a little thing
that could control a giant thing.
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And that was an
incredible lesson.
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I don't think there would have
ever been an Apple computer
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had there not
been blue boxing.
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-Woz said you called the Pope?
-Yeah, we did call the Pope.
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He pretended to
be Henry Kissinger.
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And we got the number of the
Vatican, and we called the Pope.
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And they started waking
people up in the hierarchy.
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00:10:01,916 --> 00:10:03,710
I don't know, cardinals
and this and that.
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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,
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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?
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Well...
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Necessity, in the sense that there
was time-sharing computers available,
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00:10:32,030 --> 00:10:33,656
and there was a time-sharing
company in Mountain View
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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.
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00:10:42,832 --> 00:10:46,294
And that was the first thing we
ever did. We built this terminal.
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00:10:46,461 --> 00:10:49,672
And so, what an Apple I was,
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was really an extension
of this terminal
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00:10:52,509 --> 00:10:54,969
putting a microprocessor
on the back end.
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00:10:55,094 --> 00:10:58,389
That's what it was. It was really
two separate projects put together.
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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
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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.
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00:11:55,738 --> 00:11:58,867
If we only had one of those, we
could sell them to all our friends
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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
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