Original subtitles

[bright music]

♪ ♪

[cell phone trilling]

- Hi, honey. It's me.

[indistinct chatter]

- 80 million people in the

country now have cell phones.

They're no longer

a high-price luxury.

- Today, Apple is

going to reinvent the phone.

- To Google means to

find out all there is to know.

- How many friends

do you officially have now?

- 175 million.

- So within four degrees of me

are 700,000 people.

- Who is Barack Obama?

The answers is right there

on my Facebook page.

- If you like hilarious,

shocking,

embarrassing videos...

- I like turtles.

- Chances are, you spend

a lot of time on YouTube.

- [sobbing]

Leave Britney alone!

- What we're creating is a

stage for everyone to be seen.

- We're in a very

wonderful time right now

where the innovations really

are driving the technology

right into the center

of our lives.

- This should be simpler,

more powerful, faster.

- Of course,

the big story tonight is...

I have an iPad.

[cheers and laughter]

[dramatic music]

♪ ♪

♪ ♪

- In focus tonight,

the communication innovations

that await us as we

head into the 21st century.

[whooshing]

[bubbling]

- We're in for the

communications ride

of our lives.

The coming years

see cell phones

small enough to

hide in your pocket,

the promise of video phones

is coming true,

tiny, hand-sized computers

that know your

favorite subjects,

and Internet everywhere.

[bright music]

- There have been

technology revolutions

in human history before,

but I think this one

has been incredibly compressed

in how fast it happened,

how one thing

led to the next thing,

led to the next thing,

and how quickly

it began to penetrate

all parts of our culture.

- This is my TiVo.

It automatically finds and

records our favorite shows.

- TiVo, really, the DVR,

was time-shifting.

- I don't have time to

watch silly things on TV.

That's why I got TiVo.

- The notion of living a

digital life began to take hold

on multiple levels of society.

- There's little doubt that

the ubiquitous Blackberrys

become a vital tool

in offices,

in news rooms,

and in governments.

- It's a wireless

information device

and, of course,

it does email.

- Got it, and how reliable

is the service?

Can you get it--

use it anywhere?

- This is an amazing tool,

actually.

I use this

all over the country.

- The BlackBerry was

the most amazing,

magical invention in the

history of things you can buy.

- And I'll tell you this.

People here at CNN are

so addicted to them,

they jokingly refer

to them as CrackBerrys.

- The early 2000s was a time

where people were really

paying very close attention

to new technology

and the Internet.

- At the dawn

of the Internet age,

there is stunning new evidence

of the growing power

of the new medium.

Internet pioneer,

America Online,

announced today it is buying

big, sprawling Time Warner,

creating the world's

largest media conglomerate.

[cheers and applause]

- The AOL-Time Warner merger

was the classic .com insanity.

- $160 billion--

the biggest

corporate takeover ever.

- This merger will launch the

next Internet revolution.

- The merger of Time Warner

and AOL wasn't really a merger.

It was a purchase.

- I am struck by this image

today of the upstart AOL

gobbling up this media

institution, Time Warner.

Shouldn't it be

the other way around?

- Well, you know,

it's sort of startling that

a company that

couldn't even buy beer

is now buying one of the oldest

media companies in the country

that took a century

to get this big.

- We're just

scratching the surface

in terms of how great

these products can become.

Whether it's the Internet,

the way you communicate

with people--

software is in its early stage.

There's some real advances

that are gonna make

a big difference.

- Microsoft, in the

beginning of the decade,

with their operating system

and their productivity software

was still very, very strong.

- Microsoft chairman,

Bill Gates,

calls Windows XP

the most important tool

that's ever been created.

- At the time,

Microsoft was 33 times

larger than Apple.

Apple was seen as

a second or even third-tier

technology player that

had essentially lost the way.

- We have a 5% market share,

and you could say,

you know, that doesn't

sound like too much,

but we look at it as saying

kinda five down, 95 to go.

- In 2000,

Steve Jobs was just trying

to save Apple from death.

- Apple computer

chief executive Steve Jobs

is rolling out new products

he hopes will reinvigorate the

company and its bottom line.

- The thing about Steve Jobs

that differentiates him

from Bill Gates is

he wasn't a programmer,

he wasn't an engineer,

and he wasn't a designer.

But he knew enough about

programming and engineering,

and he had enough just

innate design sense

that he was

the perfect curator.

- No stranger to

innovation, Apple,

the company that brought you

the personal computer,

is opening stores

across the country.

This'll be Apple's first

venture into direct retail,

a bold move in this

pretty sluggish economy.

Now, the question remains--

if Apple builds them,

will customers come?

[cheers and applause]

- The common wisdom on

the Apple retail stores

was that it was a stupid idea

that would fail.

Plenty of computer companies

had tried it.

Dell had stores.

Gateway had stores.

Nobody went to them.

It was just an

exercise in vanity.

But this concept of open,

airy places where they

weren't gonna try to

sell you stuff, but instead,

you could ask questions

about your Apple products,

you could see demonstrations,

you could get

your hands on them

is just an unbelievably

different approach to retail.

And once again,

Steve Jobs figured it out.

- What began the process

of taking Apple

from a niche player

to a leader that

everyone had to race

to catch up to--

even Microsoft--

was the iPod.

- Boom.

That's the iPod.

I happen to have one right

here in my pocket, my friends.

[laughter]

There it is, right there.

[applause]

- The iPod was a classic

Apple device, you know?

A chrome-mirrored back,

a pure white acrylic front,

that famous click wheel for

dialing through

lists and stuff--

it was the first mp3 player

that really worked

and was so easy to use

that you developed this

instant sense of mastery.

You're like,

"I'm good at this."

[iPod wheel clicking]

[electronic music]

- Oh, my God,

I could not believe that

this little,

heavy-ass box

with this wheel

on the front of it

could hold all of this music,

and I could actually

take my music with me.

- Everybody would

have their CDs,

and then that iPod came

and we just

chased that thing down

immediately, right?

This is gonna change our lives.

It did.

- I'm one of these people

who walks around with

these things in constantly,

can't take it off.

- The iPod itself had to be

loaded using a computer

from music that you got

from other means--

you ripped from your CDs,

or you downloaded illegally.

So, Jobs' next idea was,

"Let's have an online store

where you can

buy these things legally."

- We decided, since

no one else was doing this,

that we were gonna do it.

And we started about

a year and a half ago

to create a music store--

music downloads done right.

- Apple knew exactly

what it was doing.

This was not about simply

moving units of hardware.

This, for them,

was the beginning

of a multi-faceted approach

at dominating how we,

the world,

would consume technology.

- The most important thing

though, I think,

is what do you do

with these things?

Can we help you express

yourself in richer ways

in your music,

in your movies,

in your photography,

and these kinds of things

that people want to do.

- NBC News In Depth tonight--

more on this dark day

on Wall Street

and this week's

technology sector meltdown.

It was just a few months back.

If your company ended in .com,

it was a good thing.

It meant enormous wealth

in many cases--

at least, on paper.

But at the end of this

brutal week on Wall Street,

a lot of analysts think

the Internet bubble

is ready to burst and

by this time next year,

a huge number of those .coms

might be .gone.

- In the spring of 2000,

the stock market starts

to decline slowly and then

it's like a mass extinction

event in Silicon Valley.

- Some investors are

licking their wounds today

after a number

of Internet stocks

took a hit on Wall Street,

as reports of layoffs

at .com companies

and doubts about their ability

to generate profit spread.

- They'll tell you one thing.

"Well,

everything will be fine.

We're just going

through transitions."

The next week,

we're downsizing.

The next week,

we're closing.

- Once we started

seeing a sell-off,

even companies that survived--

eBay, Amazon--

they all suffered.

- Amazon.com CEO

Jeff Bezos--

his company's

stock price tumbling

from $113 a share

to less than $16 today.

- It's not the kind of stock

that you can own

and sleep well if

you're a small investor--

and I think, by the way,

that's true of

all Internet stocks.

- There are plenty of people

that said,

"This is just a dip.

Buy the dips.

This is gonna come back."

I think by the spring of 2001,

it was pretty clear that--

that this was over.

all: Three, two, one.

- We put this baby to bed.

Shopping is now turned off.

[soft applause]

- We know there's a lot

of pain to go around

in terms of the stock market

these days,

but AOL stock has

gotten beaten down

even more than the

rest of the market.

- AOL and Time Warner

was probably

the worst deal in history.

AOL didn't really

control the Internet

in the way that

they claimed to.

- Everything is a lot easier

and the Internet

is a lot more user-friendly.

The Internet moved towards

what AOL was doing.

So now, what is

AOL's unique selling point,

and are you gonna pay $23.95

a month extra for that?

- [chuckles]

I feel like my retirement's

going up in smoke

as we talk here.

- The web was skyrocketing

in popularity,

and Internet users

didn't wanna live

in the walled garden

of AOL services

and all of its media content.

They wanted to range around

on the Internet

and use new tools like Google.

[keyboard clacking]

- Searching for answers

on Google.

A quirky California company

has transformed the way

the world finds things out.

- Early on in

web search engine history,

there were actually editors

who were trying to make a list

of all the good websites.

And that's why Google's

appearance on the scene

changed everything.

- Google scans over

4 billion web pages

for matching results.

[keyboard clacking]

Google chooses these results

through a mix of looking

for the closest word match

and judging

a page's relevance

by counting how many

other pages link to it.

- Google came up with

a simple algorithm

and basically,

it decides for itself

which are the

most important sites,

the most likely sites to have

the answer you're looking for.

- That makes for

a very efficient search,

and word of how it works

is getting around.

- When you make

a big leap like that,

you immediately

become the winner.

- Obviously, everybody

wants to be successful,

but I want to be

looked back on

as making a big difference

in the world.

- Google's goal is to really

organize the

world's information

and make it universally

accessible and useful.

- Larry and Sergey--

they were idealistic.

They loved what

they were building,

and they had this corporate

motto of, "Don't be evil."

- I guess it's your

unofficial motto?

"Don't be evil"?

What does that mean?

- The idea is just that

we should be thinking about

what we're doing all the time,

and make sure that, you know,

we're--we're doing good,

basically.

We thought it was

really important as

Google grows in scope and

influence around the world

to have a philanthropic

part of the company.

- The culture at Google

was very freewheeling.

Anyone could do anything.

[billiard balls clacking]

- Larry Page and

Sergey Brin said,

"Let's give them

20% of their time.

They can work on

anything they want."

- We put that link there.

- It could be the first link.

- You come here at

9:00 in the morning,

the parking lot's

still half empty,

and it's because

it's up to the individual

and the teams they work with

to figure out

what's the best way for them

to work together.

- You guys finished work?

- No, we gonna go back.

- We're gonna go back and work.

- Gonna work till like 9:00.

[laughter]

- They really worked hard to

create a community of people,

but where they're interacting,

and they're spurring

each other's ideas.

- If you give them freedom,

they will amaze you.

They'll surprise you with

what they come up with.

- The venture capital is that

you need to bring in

a professional CEO.

You guys are geniuses,

you're, you know,

you have all these ideas,

but you don't know

how to manage anything.

So they hired Eric Schmidt,

and he became the

grown-up in the room.

- What's the one thing

each of you worry about most?

- In my case,

Larry and Sergey.

No, just kidding...

[laughs]

Go ahead.

- Eric and Larry.

[laughter]

- I don't think any of us

expected Google

to become as big and

as dominant as they did.

- Google has become

more than a verb.

It's become part

of our culture.

- One day you're using Yahoo!

to search things,

and then who even knows

how you changed,

and then you started using

Google, and this was so easy.

- It came up Yahoo.

Why did you switch to Google?

- 'Cause I picked Google

all the time

when I look for something.

I don't know why.

- That one decision--

"I'm gonna Google it"--

every individual who made it

contributed to a

multi-billion dollar decision.

- Now this privately-owned,

popular search engine

is going public,

and you can buy a piece of it.

The company announced

it will be selling

$2.7 billion in stock in

the most highly-anticipated

initial public offering

in years.

- If the IPO of Google

goes well,

that could open the door

for a lot of other IPOs.

- In the early 2000s,

Silicon Valley was recovering

from the .com bust.

It was a wasteland.

But Google going public

changed that,

and you really saw the

rebirth of Silicon Valley.

- I think their story

reminds us of

the magic of the Internet.

And that magic is

that an underdog...

[laughing]

Can become an overlord.

- Even if you were somewhat

Internet-savvy only,

you may not know

about Friendster.

It is one of the

fastest-growing sites

on the Internet,

with millions of

registered users so far.

Why so popular?

Because it shows the world

is not such a big

and unfriendly place after all.

[bright music]

- Social media didn't exist

in the '90s at all.

It really started in

the 2000s with Friendster.

- We've all heard that

everybody on Earth is

connected, but now,

there's a website

called Friendster.

- It's a new Internet service

that people can access for free

at our website at

Friendster.com that

allows people to network online

with their friends.

- So within four degrees of me

are 700,000 people...

[laughs]

That's crazy.

- There are 2 million people

on this site.

What you do is you put in

bios of yourself,

and pictures of your friends.

And then you look to see

who is connected to whom.

- Social media relies on this

really ingenious premise

called, "web 2.0."

And what that means is that

instead of the

owner of the website

composing the words

and the pictures,

we, the people, do that.

- There are many social

networking sites on the Web,

but in just a year's time,

Myspace.com has outpaced

all the others.

- Now, within Myspace,

it's based on what

your friends recommend,

or what other Myspace

members recommend.

And that's how the

discovery of content

and culture is taking place.

- This younger generation

got that what was magical

about the Internet

was connection.

- Myspace.com is now the

fastest-growing site

on the Web with 110 million

monthly users worldwide.

- You would log onto Myspace,

and there were

your top eight friends.

And I remember there being

drama between people about,

"Why am I not in

your top eight?"

And everybody,

no matter how lonely,

had at least one friend--Tom.

- How many friends

do you officially have now?

- I think we're up to

175 million.

- For your official friends?

- Yeah.

- I think that because Myspace

allows people to be anonymous,

it's also more open to people

who are a little bit weird,

a little bit different,

a little bit--

maybe who want to play games

with their identity.

- Move over, Myspace.

College students across

the country are quote,

"Facebooking their classmates."

- Mark, if somebody was

to put the question to you

about the magnitude of what

you think you've launched,

how big do you think your

product or your service is?

- Well,

it's impossible to tell.

When we first launched,

we were hoping for,

you know,

maybe 400, 500 people.

And now we're at

100,000 people.

So, who knows where

we're going next.

- Mark Zuckerberg started

this company when he was 19.

The culture at Facebook

was very bro-y.

There were people

in the Facebook offices

doing keg stands

and Mark Zuckerberg

doing an interview

in his bare feet.

- Should I put the beer down?

- No, no.

Actually, I'm gonna

mention the beer.

[laughter]

What are we celebrating, Mark?

- I just got 3 million users.

- 3 million users.

- Yeah.

- And how long has

Facebook been around?

- Not that long.

A little more than a year.

- This is a 19-year-old kid

who had dropped out of school

and was basically just

trying to build something

that college students

would use.

- I just threw it together

one week in January

and launched it for Harvard.

- This was in your dorm room?

- Yeah.

- You launched Facebook

in your dorm room?

- Yeah.

- There was something

about Facebook that

just took off like wildfire.

[keyboard clacking]

- For three years,

the phenomenally popular

website, Facebook,

operated as a

raucous college dorm,

limited to those in school

and recent graduates.

But late last year,

the gates were thrown open

and older folks,

people like, ah, me,

were allowed in.

- Facebook evolved into a way

for you to keep in touch

with all the people that

you want to connect with.

Essentially, you could describe

the Internet in that same way.

The real value is helping us

to connect with each other

more, virtually.

- Do you have a budding

entertainment star

sitting at the breakfast table

with you right now?

Well, thousands of people

are getting their

15 minutes of fame

thanks to a hot,

new website called YouTube.

- There are all these services

to share photos

with one another, but when we

tried to share the videos,

you know, we tried to

email them back to one another,

it kept bouncing back.

And so, we thought

a lot of people

were gonna have

this same problem.

- Watching videos online

was hard.

Sometimes you didn't have

the right plug-in

to watch the video,

and YouTube kind of

ingeniously fixed all that.

And it did it by

just hosting the video.

[dramatic music]

- It was such a simple thing.

"All right.

Let's have a repository online

where people can post videos."

I think they just executed it

a little better

than anyone else.

- What we're creating is a

stage for everyone to be seen.

- In other words...

- And they benefitted

from viral videos.

- I can't do it.

We'll do it live.

- Okay.

- We'll do it live!

[bleep] it!

- Suddenly, we can see

into other people's lives

in ways that never

would've been possible before.

- ♪ Chocolate rain ♪

- ♪ Nu ma, nu ma,

nu ma iei ♪

- And it's not just

each other's home movies...

- Alan! Alan!

Alan! Alan!

- [screams]

- It's each other's great

moments of comedy or tragedy.

- Stop.

- Oh--

[yelps]

Ow, ow, ow, ow, oww, ow.

- Oh no. Oh, dear.

- Oh, boy.

I think she's

actually hurt there.

- No, I think she is.

- Yeah, she's hurt.

- For a long time, the most

viewed video on YouTube

was a baby biting

a three year old's finger.

- Ow!

[cries]

Charlie, that really hurt.

- [laughs]

- A billion people

watched that.

- [laughs]

Baby.

- YouTube was kind of

the primordial ooze

from which some of the great,

popular icons of

Internet culture emerged.

[Rick Astley's

"Never Gonna Give You Up"]

♪ ♪

- You've been rickrolled.

- It wasn't so much web 2.0.

It was the beginning

of world 2.0.

- By the middle of the 2000s,

we were dependent

on the Internet

like we were dependent on food.

- How often are Kayla,

Hailey, and Lonnie

on the computer,

on the cell phone,

or texting?

- [laughs softly]

Yeah, the question should be,

how often aren't they?

- With the growing popularity

of personal digital assistants,

Blackberrys,

and the ilk there,

people can be reached

anywhere, anytime.

Is that a good thing?

- All kinds of things

have changed

because of the smartphone.

So, there are new rules.

Are you allowed to have your

phone at the dinner table?

Should you be

looking at your phone

on the sidewalk

on a busy street?

People are looking

at their cell phones

while they're driving.

- There is a price that

you pay with respect

to that accessibility and

that is it's always there.

It's always available.

You never really unplug.

- With all these

new technologies,

we've become a society

of instant gratification.

- I wanna download

this movie now.

I want this song now.

I want to read the news now.

- Instant gratification

has changed

our social etiquette too.

We now unfriend people.

We follow people.

We write on their wall.

[keyboard clacking]

In the 90s,

that was considered graffiti.

- The more time people

spend on the Internet

in front of their computer,

the less contact they have

with other human beings.

- Every new technology

through history

has been called the

doomsday for our children.

Our grandparents

were told that

the radio would

rot their brains.

Our parents were told that

TV would rot their brains.

We tell our kids that

the Internet and their--

their smartphones

will rot their brains.

It doesn't.

So, things change,

but that doesn't mean

things are worse.

- Hello.

I'm a Mac.

- And I'm a PC...

[sneezes]

- Gesundheit.

You okay?

- No, I have that virus

that's going around.

- During the 2000s,

there was the long-running

ad campaign of Apple that,

"I'm a Mac.

I'm a PC."

And it was the cool versus the,

you know, sort of anal.

- I'm into doing

fun stuff like movies,

music, podcasts,

stuff like that.

- I also do fun stuff

like timesheets

and spreadsheets

and pie charts.

- The idea was that PC

was stuck in its old ways

and corporate.

And that was the thing that

inflamed you when you watched.

I wanna be like Justin Long.

I wanna be like the Mac.

I wanna be fun

and young and hip.

I don't wanna be

like John Hodgman,

who was hilarious.

- [whispers]

You never saw me.

- [whispers]

Never saw who?

- Me, PC.

Oh!

- Part of Apple's marketing

success was Steve Jobs,

who cared a lot

about advertising

and what those commercials

looked like.

[cheers and applause]

- So, that ad got a certain

amount of attention.

- Steve Jobs turned Apple

from a computer company

into a consumer

products company.

And the consumer products is

what not only saved Apple,

but made it the hottest thing

in the history of the world,

practically.

- All eyes are

on Apple Computers

and Steve Jobs this morning.

In just a few hours, Jobs will

make a very big announcement.

And that's all we know.

- This is a day

I've been looking forward to

for two and a half years.

[cheers and applause]

- Steve Jobs

took the stage and said,

"Today at the Apple keynote,

we're going to unveil

three products."

- Three things--

a widescreen iPod

with touch controls,

a revolutionary mobile phone,

and a breakthrough Internet

communications device.

- And the crowd was going,

"Yay, three new products."

And he said,

"Let me say that again."

- An iPod,

a phone...

[laughter]

And an Internet communicator.

- These are not three products.

[cheers and applause]

- Are you getting it?

This is one device.

And we are calling it,

"iPhone."

- I remember my brain

was just exploding.

I'm like, "What? How?

Wait, how can you--what?

[stammers]

Explain this."

- Let's take a look at

a revolutionary phone.

- In decades past,

technology had moved in

relatively predictable,

generational cycles.

So you'd have a good sense

of what the next generation

of cell phones--

what features they would have.

- We call it the pinch,

to make it bigger or smaller.

- The iPhone seemed

like a device that

had been beamed

into your hands

from ten or 15 years

in the future.

It skipped an entire generation

of technology,

maybe even two generations.

- It's the iPhone,

a new generation of gadget

that's a--a phone,

iPod, computer,

even a camera

all rolled up in one.

I don't know what it is,

but I want it.

[helicopter whirring]

- Take a look at this picture.

At first blush,

it looks something like

rescue workers

being applauded.

But as the camera widens out,

we see it is simply

the Apple store.

[cheers and applause]

- "I" day finally arrived.

And at the appointed hour,

the faithful

streamed into Apple stores

across the country.

- Yeah, he's a winner,

winner, chicken dinner.

Did you get one, Laura Ingle?

- [laughs] Not yet.

- Failure!

That's a failure!

- The lines...

- Here it is--the object

of all the attention,

all the affection

and all the hype.

And those umbrellas behind me--

people waiting in the

hot California sun

to get their hands on one.

- The iPhone was

so transformative.

It gave people this sense

of what they got

when they first saw

the Internet.

It was like a magic trick.

- Oh, look how beautiful

and small it is.

- Apple makes it seamless,

makes it feel good,

makes you feel cool,

and that's what this thing is.

You can get everything that

this thing does already,

probably for less money,

but Apple has made it hot.

- It quickly became

the category killer for phones.

- 700,000 iPhones were sold

just in the first week.

Now, you may think

spending 500 or 600 bucks

on a cell phone/iPod is crazy.

- [laughs]

$500?

Fully subsidized with a plan?

I said, "That is the most

expensive phone in the world.

"And it doesn't appeal

to business customers

because it doesn't

have a keyboard."

- Microsoft thought

the iPhone was stupid.

They didn't get it.

They weren't Google.

- The Internet is abuzz

with word

Google is looking to expand

into the cell phone business.

- You guys may have heard

also that yesterday,

we made an

interesting announcement

about a little phone,

so I thought

I'd just show that.

- A year later, Google unveils

the Android phone,

which was Google's

attempt to capitalize

on the success

of Apple's formula.

The very first one comes out

next week from T-Mobile.

And it's called...

[heavenly singing]

The T-Mobile G1.

So what's it like?

Well, it's like,

uh, the iPhone.

- They had

striking similarities

in terms of both use

a touch interface.

Both had a big, wide screen

on the front there.

Both had Google maps.

Both had a way

to download apps

that worked very similarly

and some of the apps

were kind of the same.

- Slowly,

Google hopes it'll take over

the whole mobile market,

just as it has done

the Internet.

- Given their relationship,

Steve Jobs felt that he had

been betrayed by Google.

- You're on the board of Apple.

Any tension on the board

around the fact that

you guys are starting to get

into each other's business?

- As a board member at Apple,

Eric Schmidt was

privy to meetings

where the iPhone was discussed.

And Steve Jobs was pissed.

- The battle between

Apple CEO Steve Jobs

and Google CEO Eric Schmidt

getting personal.

- Steve Jobs simply hates

Eric Schmidt right now.

That's how bitter

this rivalry has gotten.

- Eventually, Eric Schmidt had

to leave the Apple board,

and the competition was on.

- If Google did not act,

we faced a Draconian future--

a future where one man,

one company,

one device,

one carrier,

would be our only choice.

[cheers and applause]

That's a future we don't want.

[cheers and applause]

- So in 2007,

Kara Swisher and I

were lucky enough

to get Bill Gates and

Steve Jobs on stage together.

It was an interview.

- Well, you know, Bill built

the first software company

before anybody really knew

what a software company was.

- If you were gonna

pick two people

who basically started

the personal tech revolution,

they were the right

two people to pick.

- But what's the

greatest misunderstanding

in your relationship

about each other?

This idea of cat fights,

this idea of, what--

which one of the many?

- We've kept our marriage

secret for over a decade now.

[laughter]

- These two people were

the most significant forces

in technology through our era.

And to see them together,

praising each other,

and jabbing each other

a little in the ribs...

- Well, I know--I know Steve's

gonna announce his transporter.

[laughter]

- It was really a great moment,

and I was lucky

to have seen it.

- You are competitors

in certain ways.

- We watched the commercials.

- And you get annoyed at

each other from time to time.

- But you know what?

I have to confess.

I like PC guy better.

- Yeah, he's great.

- [laughs]

- I like him.

- The art of those commercials

is not to be mean,

but it's actually for the guys

to like each other.

[laughter]

- There was always

a tension between them.

- PC guy's great.

- I liked him.

- He's got a big heart.

- His mother loves him.

- His mother loves him.

- I'm telling you.

- Their companies were

always gonna be competitors,

but when they got on stage,

they were both sweethearts.

- There's a--that one line

in that one Beatles song,

"You and I have memories

longer than the road that

stretches out ahead."

And that's clearly true here.

- It was a great moment

for the two of us and

for the people in the room

and for the people

who got to see it.

That was really the

beginning of the end

of the personal computer era.

- When we heard today that the

usually unemotional Bill Gates

was in tears when he said his

final farewell to Microsoft,

it wasn't surprising.

After all, he was present

at the creation.

[cheers and applause]

- I love working

with smart people.

I love working with Steve.

I love working with all the--

the incredible people here.

- We've been given an enormous,

enormous opportunity,

and Bill gave us

that opportunity.

[sputtering]

[sniffs]

Dang it.

I wanna thank Bill for that,

and I want you to, too.

[cheers and applause]

- It was the lost decade

for Microsoft.

They just lost

a lot of their clout.

They still were a big,

important company,

but some of these other

companies like Facebook

or Google or maybe Amazon

just accelerated colossally.

- It is quarterly earning

season in corporate America.

Today, Amazon.com,

the online bookseller,

reported that its earnings

more than doubled

in the last three months.

[bright music]

- The economy seems to be

crashing all around us.

What can the people who are now

trying to fix what's broken

learn from your experience

at Amazon?

- I would say,

think long-term.

- I think the reason that

these companies

like Amazon, Apple,

and Google survived

was because

they unlocked this

whole new engine

of innovation.

- One of the big,

motivating factors for us is,

is just creating something

that we all want ourselves.

- Technology and

technology companies

became the preeminent force

in the business world.

Something that had

started small, you know,

really started to

fulfill its destiny

as a major disruptive change

across many

different industries.

- Now with more than

a billion searches

performed every day,

plus Google Images,

Google Maps,

Google Books,

Google Finance,

Gmail, and YouTube,

the company's share

of the market is huge.

- When Google bought YouTube,

it was a big deal,

especially for

a lot of YouTubers,

because up until this point,

you were just

making stuff for fun.

There was no option

or even in our heads,

like, a possibility

to make money from it.

- It's no secret that

Americans love to watch

videos on the Internet.

But who knew you could

get rich making them?

- With Google's power

behind it,

YouTube was able to grow in

a way the startup never could.

- YouTube is now

so influential,

it co-hosted last night's

Democratic

presidential debate.

The questions came

from users of the site.

- If you were elected

president of

the United States,

would you allow us

to be married?

- I don't think that

any of us could have possibly

predicted the role that

social networks would play

in the US

presidential elections.

- Candidates are gaining

political supporters

the way social networkers

find friends.

The potential voting audience

is immense.

Myspace.com sees up to

56 million

unique visitors a month,

and about 80% are voting age.

- While both campaigns hope

their supporters

spread the word,

Obama is friended almost

seven times more than McCain.

- The Obama campaign

happened around a time

when social media was

experiencing a coming of age.

[cheers and applause]

- Barack Obama created

a movement behind him.

He doesn't--

it wasn't already--

he's the first candidate

we've ever seen

who had an organization

that brought together

the Internet and

community organizing.

- Obama had the Internet.

He had Myspace and Facebook.

It certainly changed the way

that candidates

communicated with their base.

It changed the way

that we thought about

how we could communicate

and influence candidates.

- One of the

most enduring images

of campaign '08 is

this one of Barack Obama.

- That Barack Obama image--

it's here, there,

everywhere it seems this year.

- When I met Obama,

he said,

"I love this image.

And how did you get it

spread around so fast?"

Seeing the hope poster

as a digital phenomenon

was pretty amazing.

It really made me realize

the power of social media

to democratize

and proliferate.

- We're trying to translate

all of that online

enthusiasm and energy

to a successful November 4th.

- In three simple words...

all: Yes We Can.

- Thank you, South Carolina.

I love you.

- If not for social media,

Barack Obama would never

have been elected president.

It gave us the ability

to connect to a

new generation of voters.

- Barack Obama will be the 44th

president of the United States.

[cheers and applause]

- On election night,

I went to this party,

and all of Silicon Valley

was there,

and everybody was cheering,

and screaming, and singing.

And it felt like

an Internet victory.

It just felt like our world

was finally being recognized

as something that could

change the rest of the world.

And it did.

- I wouldn't know

a Twitter from a tweeter,

but apparently,

it is very important.

- I don't know what that is.

Uh, a Twitter?

What does that mean?

- Tell me exactly

what is a Twitter?

- By the end of the decade,

there were a lot of companies

trying to be the next

big social network.

- Twitter is an

instant messaging system that

allows users to text thousands

of other users at once.

Messages, nicknamed "tweets,"

always begin

by answering the question,

"What are you doing?"

- When I first joined Twitter,

it really was people talking

about what they ate for lunch.

I was on it for, like,

three days, and I thought,

I don't need to hear about

my friend's sandwiches.

- Do I really need to know

that Joe in Seattle

is having oatmeal

for breakfast this morning?

Is there such a thing as

too much information?

- Why are you a tweeter?

- For me, it's been helpful

to really kinda

cut out the middleman,

and the middleman

has been the media.

It's given me a chance

for people to really

get to know the real me.

- The conciseness enforced

by that 140 character limit

was really attractive.

Didn't have to read and scroll.

- In the past year,

the number of Twitter users

grew 343%,

with nearly 2 1/2 million

people on the site now.

And I'm--I'm one of them.

- Twitter became,

for many of us,

a dominant platform

for communication

day in and day out.

That's part of the magic

of working on the Internet.

You just really never know how

this stuff's gonna play out.

- Big news in

the computer world.

Steve Jobs,

who turned Apple from

a boutique computer company

into a technology behemoth,

announced today

that he's taking

a leave of absence until June.

Job says his decision is

due to health issues,

which he says are more complex

than he originally thought.

- Steve was always a lot sicker

towards the end of his life

then he wanted to acknowledge.

- It's frankly been a battle

with investors where he said,

"It's none of your business.

I'm doing fine."

Then when he does give updates,

even ten days ago,

he said he's gonna be

staying on at the company

for the foreseeable future.

Ten days later,

that completely changed.

So that's the real concern

on Wall Street.

- There was a national

economic importance

tied to the health

of Steve Jobs.

And at that point,

stockholders were beginning

to ask what was going on.

- In the city of

San Francisco today,

Apple CEO Steve Jobs

returned to the spotlight.

He appeared on stage

at a company event

after a six-month

medical leave.

- When he came back to work,

his voice wasn't

weak or anything.

I mean, he was

drinking more water,

but essentially,

it was just as it was

when he looked

physically normal.

[cheers and applause]

- He has wow-ed the world

time and again

with his bold inventions

and this week,

he did it again.

- The iPad.

[cheers and applause]

- To be at the

front of the line

at the San Francisco

Apple store,

you had to camp out

starting at 10:30 last night.

[crowd shouting excitedly]

And that's just what

Max Ackerman did.

- The iPad.

And I was first.

- I'm really impressed by it.

I haven't let it

out of my hands...

[laughing] So--pretty much

for the entire time.

The iPad wasn't

the first tablet,

but it was the best.

- Steve Jobs turned

a dying company

into possibly

the greatest company

America's ever seen.

- Where do you fit

in the American family

of thinkers and inventors?

- You know,

I don't--I don't

really think that way.

- Steve Jobs

is kind of like the

Thomas Edison crossed

with Pablo Picasso,

with a touch of P.T. Barnum

of American history.

He has the style.

He has the flair.

He has the genius.

He has the creativity.

He has the technology.

He has the vision.

- A few weeks ago,

we sold our

250 millionth iPod.

[cheers and applause]

- If you have a couple

of the machines that

Steve Jobs created,

you have access to absolutely

everything in the world.

That--that takes a brand of--

of visionary who was

always asking, "Why not?"

- Somebody once called me

the iCEO about a year ago,

and I liked that, so I'm gonna

choose that as my title,

if it's okay with you...

[laughter]

To remind myself of

what's really important,

which is, of course,

the Internet.

- When the Internet first

became available to the public,

I think a lot of people

could easily see that

the possibilities were so vast

that your brain just

went into sparks.

- I think Facebook is actually

more valuable as you get older.

You've interacted

with more people.

Maybe you've lived

in more places.

- We all grew up in

the same neighborhood,

and we found each other

again on Facebook.

It makes me feel connected.

I go on that site,

and I'm home.

- The technology existed.

What we needed were

visionaries who understood

how technology could be

put to use for the consumer.

- What is the

one-sentence summary

of how you change the world?

"Always work hard on something

uncomfortably exciting."

- The people who

could connect,

the can-do of technology,

and the want of consumers--

they were the people

that we would be talking about

for years afterwards.

- Yeah, you can floor it.

No problem.

If you would have

asked someone,

"What's the greatest center

of innovation in the world?"

"Silicon Valley" is the answer.

And then you say,

"What's the second?"

- And people would be mute.

- [laughs]

I don't know...[laughs]

- Yeah.

- During the 2000s, there was

a explosion of ideas.

- This is the new iPod Nano.

- We had an acceleration

of evolution...

[laughter]

That just got going

faster and faster

and faster and faster

and faster,

and in a course of a decade,

the world was changed forever.

- I assumed you had nothing.

You were just people

sitting by a phone...

- Yeah.

- Or a computer.

And people would be like,

"I want a bicycle."

And then it would come

to Amazon and you'd be like,

"We need to go find a bicycle,"

and then you'd run out,

and you'd get a bicycle,

and you'd write "Amazon" on it,

and then you would send it

to people's houses.

I didn't know you

actually made things.

- Well, we started working

on this four years ago,

but mostly we do pretty much

what you described.

- Thank you.

[laughter]

Let me ask you this--

why is it,

if I want it delivered

in three days, it's $1.50,

but if I want it delivered

in two days, it's $85.

- [laughs]

- Why is that?

What's going on with that?

[dramatic music]