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Welcome to Macintosh

CNBC

Aired on Monday, Feb 08, 2010 (2/8/2010) at 07:00 PM

Transcript

00:00:01They had done that, and if you have an original idea and you have an apple and the two simply fall together.
00:00:09The classic story of the newton and the apple.
00:00:12So it was that I sat down and thoroughly enjoyed myself with india ink and pen and illustration board, and went ahead and created this image of newton with the apple, indicated above, the detailed, wind-blown ribbon that had the apple computer company on it.
00:00:34And around the border, I had put in the philosophical comment, mind forever voyaging through strange seas of thought alone.
00:00:45Which of course comes from the wordsworth sonnet.
00:00:48And that last line seem to fit perfectly with the whole concept of this wonderful new product that was going to make the foundation of a new company.
00:00:57>> Apple was founded again, though, as a corporation, in 1977 and the third founder was mark markkula, a little more well known than ron wayne.
00:01:07>> When apple came out, they were building the apple ones in the garage.
00:01:15The apple one had the ability to have a keyboard attached directly to it and a computer monitor attached to it, instead of lights and switches, you could actually have your own interface right there.
00:01:25It was groundbreaking technology.
00:01:28>> Wozniak had designed this genius piece of engineering, but he had no idea how to sell it.
00:01:33He wanted to give it away.
00:01:34What kind of crazy idea was that?
00:01:36So jobs was the one that figured out this thing should be sold.
00:01:38>> What woz said recently, i think he said, well, you know, i don't want credit for designing the first personal computer, i just want credit for designing the first good one.
00:02:01>> Rumor has it that jobs hated the apple one.
00:02:04I've heard numerous stories that it didn't work properly all the time and there were issues with it.
00:02:09So they were encouraging and promoting the apple two.
00:02:12So what they were doing was, they were giving discounts on apple twos if you traded in your apple one.
00:02:16Sometimes they would do an outright swap.
00:02:19They wanted them off the market.
00:02:20Then they were getting band sawed in half.
00:02:25But there were supposedly 200 boards made.
00:02:29Now, not all of those were sold.
00:02:30I hear woz has some in storage, who knows how many, maybe a half dozen or so.
00:02:35Value, I've heard as high as $50,000 for one, but a perfectly running one in a case is going to fetch more if it's got the cassette and the manuals and all that stuff.
00:02:48>> I guess, yeah, kind of an unlikely couple, an unlikely pair.
00:02:55Steve wozniak was the harvard genius, kind of a blue-collar hacker, interested only in the engineering.
00:03:01Jobs is the salesman, the slick, smooth talker.
00:03:06Good-looking, young guy.
00:03:07>> You've got to remember, the apple two were designed essentially by kids who didn't have any success behind them.
00:03:15>> And woz is like a hero.
00:03:17The great nerd hero of our times.
00:03:22I mean, every geek and nerd reveres woz.
00:03:26He is, you know, a living legend.
00:03:27A demigod, a god amongst men.
00:03:31Not only for his genius, but just for that, sort of, purity of hacker spirit.
00:03:37The generosity of his genius.
00:03:39The idea that he's not motivated to enrich himself.
00:03:43You know, he wants to build astonishing things.
00:03:46And he did.
00:04:08>> Back in 1977, I convinced my boss, at the time I was working as a buyer for the team electronics chain, which was headquartered here in minneapolis, convinced him to let me go to the first annual west coast computer fair.
00:04:23Out there, I discovered a number of companies, I'd gone to look at the processor solomon machine, was already aware of the altair.
00:04:38Discovered a little company called apple who had a pretty good-sized booth right inside the front door.
00:04:42Struck up a conversation with the gentleman who said they really weren't producing yet, it would probably be later that year or october, something like that.
00:04:47The gentleman seemed quite knowledgeable and once he found out that I was a buyer for a chain of electronic stores, was very interested and it turned out the person I was talking to was mike markkula.
00:04:56Mike proceeded to talk to us about the program over the coming months, we put together agreements and what not, and in the end, he grabbed one of the first machines to come off the line, put it in a bag, jumped on an airplane and brought to it minneapolis.
00:05:09This was that machine.
00:05:13Remember, the computer was fairly expensive.
00:05:15In fact, I happen to have an october 1977 price list.
00:05:19And a computer system with 16 k of ram, which is what we typically sold it at was $1,698.
00:05:24Now you can have a good chuckle today.
00:05:2816K was $540.
00:05:30So to outfit a machine completely would take you up to about $40,000.
00:05:34These are the pieces of software that were available originally with it.
00:05:38There was a checkbook, home management cassette.
00:05:42There was the breakout game, which was a little bit like pong.
00:05:46A "star trek" game, and high-res graphics routines.
00:05:52And that was what you could get with it at this point in time.
00:05:54That was every piece of software apple had.
00:05:57>> So, basically, you had this before anybody else did?
00:05:59>> Yes.
00:06:00We -- I guess I have to say i, identified the potential of the product.
00:06:04We were the first dealer/distributor that apple ever had.
00:06:08I wrote apple's first distributor agreement, which was liberally plagiarize -- I mean, inspired by a pioneer car stereo agreement.
00:06:21Went through and defined the terms and what would be done and send it back and apple had their lawyers take a look at it and we signed it and we were the first ever apple dealer.
00:07:40rental ..
00:07:43And you get to choose any car in the aisle.
00:07:45Choose any car? you cannot be serious!
00:07:48Seriously, you choose.okay.
00:07:51Go national.go like a pro.
00:09:50>>> The macintosh began with jeff.
00:09:52Jeff raskin was a music professor, a music professor as well as a computer professor.
00:10:01Jeff was hired at apple to start the pubs department at apple.
00:10:05Jeff is a great writer.
00:10:07Always just had a great sense of humor.
00:10:09Was really articulate.
00:10:11Had a great rebel attitude.
00:10:15And I believe february '79 was the very beginning of the mac project, where he approached mike markkula to talk about his ideas about a low-cost, easy-to-use computer.
00:10:28So he started writing a series of papers.
00:10:30Later became called, I guess, the macintosh papers.
00:10:33Then around the fall of '79, mike markkula was impressed enough with the papers to start giving him a budget to pursue starting a project.
00:10:44Jeff needed the hardware for a prototype.
00:10:49Jeff had sort of the basic idea of the hardware speced out.
00:10:55He notion of the bitmap display, which was crucial to it being a macintosh.
00:10:57But anyway, he needed to find a hardware designer.
00:10:59And bill atkinson had ran into burrell, who was working in the service department.
00:11:06Bill had seen glimmers of burrell's genius.
00:11:09He introduced him to jeff, saying here's the guy who can design your macintosh for you.
00:11:12Jeff said, we'll see about that.
00:11:16Jeff was very proud himself, but he quickly, to jeff's credit, he quickly saw burrell was the man to do the job.
00:11:22The project really took on reality when burrell did his first design over christmas vacation at the very, very end of the decade.
00:11:29I think that's a notable point about the mac, that writers don't really make, it was really BORN WITH THE 1980s, BECAUSE IT Was designed right at the cusp of the decade.
00:11:43But meanwhile, once he got that going, steve jobs got wind of it, as well as other people at apple.
00:11:51Said, boy, here's this board that is one-third the price of the lisa, that's twice as fast.
00:11:57That's amazing.
00:11:57The most common inspiration, clearly, was the apple two.
00:12:02Steve jobs is even explicit about that, telling us we were reincarnating the apple two for THE '80s.
00:12:10I realized as we were trying to complete the software that, boy, the mac was so heavily graphics based, we needed someone who was a world-class graphic designer.
00:12:25I had basically asked susan to come as my date to a few of the macintosh parties we had.
00:12:30That was kind of the first connection.
00:12:36And she met some of the team and really liked them.
00:12:39And so I proposed that she work on it, but the mac prototypes were too rare to get her one.
00:12:46So I first started her off with graph paper.
00:12:47Went and bought some pretty fine graph paper and told her to make drawings by filling in the squares or not.
00:12:53And she did fantastic work by doing some drawings that way that I think I still have somewhere.
00:12:59And I showed them to people on the team and they said, boy, yeah, she's good.
00:13:05Jeff made one other key hire, a woman named joanna hoffman, became the macintosh's first marketing person.
00:13:14She has a great story about being interviewed by jeff while jeff was at his piano keyboard.
00:13:20When he liked something she said, he would play a happy little melody, and when he didn't like it so much, he would express his feelings musically.
00:13:32And thosoriginal mac team members to this day are my best friends, my extended family.
00:13:34I would do anything for them.
00:13:36>> Apple, consciously or not, positioned itself as an alternative to ibm, which was the establishment, you know, the government, big corporations.
00:13:48>> In 1977, apple, a young, fledgling company invents the apple two, the first personal computer, as we know it today.
00:13:57Ibm dismisses the personal computer as too small to do serious computing and unimportant to their business.
00:14:06>> And this was in a time POST-WATERGATE, LATE '70s, People were very suspicious of the government and what it represented.
00:14:15And the pc, the personal computer, was a revolution in computing.
00:14:19And at the time, there was a utopian mind-set, the idea that technology, especially personal computer technology would enable people to throw off the shackles of society and foment a technological revolution.
00:14:35>> Ibm enters the personal computer market in november '81 with the ibm pc.
00:14:44It is now 1984.
00:14:50It appears ibm wants it all.
00:14:53Will big blue dominate the entire computer industry?
00:14:58The entire information age?
00:15:01Was george orwell right about "1984"?
00:15:12>> Hello.
00:15:13I am macintosh.
00:15:14It sure is great to get out of that bag.
00:15:21I am to public speaking.
00:15:24I would like to share with you of the first time I met an ibm mainframe.
00:15:29Never trust a computer you can't lift.
00:16:00>> He made a lot of money out of apple, but he dropped out of silicon valley and he taught high school for ten years.
00:16:06He volunteered in the local high school to teach kids engineering and computer science.
00:16:13>> When apple lost steve, they lost their way, to some extent.
00:16:18>> They became a shadow of what they were.
00:16:23>> THE FIRST HALF OF THE '90s, They were sort of all over the place.
00:16:27They didn't know, exactly, what the best thing for them to do was.
00:16:30They didn't know if they were supposed to be licensing the operating system or, you know, if they should be making the newton and trying to do the next big thing.
00:16:40>> Well, I think the main thing that touched most people was at the time, all the press was bad about apple.
00:16:44Apple was going to die, macintosh's market share was slipping.
00:16:49There is no software, there is no hardware.
00:16:54Everything was coming unglued.
00:16:57My first job at apple was software evangelist.
00:17:00My duties were to find developers and meet with developers and convince them to write macintosh versions of their software, as well as hardware manufacturers, to great peripherals and stuff.
00:17:11It was basically to proselytize macintosh to the third party software developer community.
00:17:21The first time I was there, we were going to change the world.
00:17:25Bringing out macintosh for the first time, no one had ever seen it, changing the world.
00:17:28The second time, obviously, the world had been changed.
00:17:30Perhaps the world had been changed by adopting windows too.
00:17:33Second tour of duty came when apple was supposed to die again.
00:17:38So every ten years ago, apple is supposed to die.
00:17:43And I went back at the height or depth of these problems, basically to ensure that the macintosh cult remained vibrant and alive and cared for.
00:17:58And so because I couldn't really control any medium, I started an e-mail list server, which had, at its peak, about 44,000 subscribers.
00:18:09And it was only good news.
00:18:13So one could make the case that I was blogging before anybody else knew what blogging was.
00:18:17I just didn't know it.
00:18:20I had a very big list.
00:18:2444,000, Even today, 44,000 would be a big list.
00:18:26But it was very big back then.
00:18:28And I would just push out good news.
00:18:31And it became a source of information so that software developers would send us notices and special offers and all that and we would push it out to the community and the community would then push it out to the rest of the people.
00:18:47A guy kawasaki law is sales fixes everything.
00:18:49So when you have great sales, everybody gets along, life is good, everybody's a visionary.
00:18:54You know, everything's good.
00:18:55When sales suck, everything sucks.
00:18:59So sales were sucking.
00:19:01So apple was divided into factions.
00:19:05There was the john-louis gasse faction and there was the bill campbell faction.
00:19:09Campbell believed in marketing.
00:19:15Gassee believed in engineering.
00:19:17Pick one.
00:19:17And that kind of tore the company apart.
00:19:19And the reason why I survived all of this is because I never really joined either camp.
00:19:24That's one of the things that's pathetic about silicon valley, is everybody wants to be something they're not.
00:19:31And if you're a venture capitalist, you want to be an entrepreneur.
00:19:33If you're an entrepreneur, you want to be this.
00:19:37Me, I just want to be a hockey player.
00:19:38Everybody wants to be something they're not.
00:19:40And at that time, that was rampant at apple.
00:20:09coloursin world, but in business,only two matter: red and black.
00:20:15Red, well, no one wants that.
00:20:16Black on the other hand,has strength.
00:20:20Black is always in style.
00:20:22It's what businesslooks best in.
00:20:24Black is wheregrowth and success happen, and it's easier to get thereand stay there inOntario, Canada, especially with ourcompetitive tax rate.
00:20:33♪♪♪♪♪♪
00:20:34Ontario, Canada - the world works here.
00:23:34>>> When I got started was 1979.
00:23:38When I took spare parts and built an apple two.
00:23:41And then I tried to figure out how I could attach musical instruments to the computer, which led to why I needed to learn how to write code.
00:23:51Which led to quitting college, which then led to getting a job and then over the years, that turned into getting hired at apple.
00:24:03So I was sort of informally in the quicktime group as I was the formal member of the os team, although I didn't really report too well into that group.
00:24:13We were always kind of a renegade kind of a group.
00:24:15But we got [ bleep ] done.
00:24:18But the work was really the sound manager, which was this complete rewrite that ended up fixing a lot of problems and ported it from all this nasty assembly code and rewrote it in "c" and made it go like ten times faster.
00:24:31And about the same time we got the sound manager working, i started working inside the moonlight hours over in the forbidden zone of what the quicktime guys were doing.
00:24:41They were hiding out in the networking building.
00:24:44And the original idea was, now we've got these cd roms.
00:24:46They're not just bigger floppies.
00:24:49What can we do with them?
00:24:52I know, let's make movies.
00:24:53And so that's where the postage stamp movie idea came from.
00:24:56Was, you can't put one on a floppy, but you could put one on a cd rom.
00:25:01So, you know, taking advantage of the new media and so that was the basic idea for quicktime.
00:25:05Then that invented all these other ideas of how do you compress the audio.
00:25:09How do you compress video, how do you stream it, how do you play it, how do you synchronize , how do you do all these things in realtime?
00:25:17How do you control it?
00:25:18And then quicktime turned into this entire industry based upon that basic idea.
00:25:23The people on the outside think that, you know, it's like this wonderful world of oz or disney going on, and all of us are just all these brilliant, amazing, happy people.
00:25:31And it's not.
00:25:33It's like a sausage factory.
00:25:34You don't want to know how this stuff happens.
00:25:36A lot of it is just bad arguments and politics and working around the rules and not doing the right thing and apologizing for it later and getting fired a few times.
00:25:48I mean, that's how things got done.
00:25:51It's definitely like don't pay attention to the man behind the curtain.
00:25:54There's a lot of that kind of stuff.
00:25:56You don't want to know how this stuff is built.
00:25:58To me, it's embarrassing.
00:26:00There's always big flaws to a lot of this stuff.
00:26:03There was a computer that we shipped, where the speakers' magnet was right next to the hard drive.
00:26:15Now, when you played a sound, it caused the hard drive's read/write head to misalign.
00:26:27So in the midst of playing your quicktime movie, your computer would completely freeze because it played a sound.
00:26:34And I'm like what kind of engineers do we have around here that would put a magnet right next to your hard drive?
00:26:39Jesus [ bleep ].
00:26:40It beeped and it crashed.
00:26:43And then they wanted me, believe it or not, this was the solution, they wanted me to change the decibels of the speakers so that it wouldn't interfere with the hard driver.
00:26:51You're kidding me?
00:26:54That's classics.
00:26:55Engineers are retarded.
00:26:57They have some kind of brain damage that allows them to not have social skills that they can concentrate long enough to write code.
00:27:04But it's a disease.
00:27:07That's why I had to quit.
00:27:09I'm like an engineer in recovery.
00:27:11I'm, you know, I don't want to write code anymore.
00:27:13It just makes you retarded.
00:27:14Get a girlfriend.
00:27:15Get a life.
00:27:27>> There were times when it was -- when it was more difficult, you know, when microsoft was at its strongest.
00:27:33>> When I think about comparing microsoft and apple, I think about the basic values of the company being almost diametrically opposed.
00:27:41>> They have managed to distinguish themselves as the company that isn't microsoft.
00:27:49And I think there are a lot of mac users who choose to use a mac for that reason, that it isn't a windows machine.
00:27:56>> I've used windows to the extent that I've had to use windows.
00:28:00And I just cannot understand some stuff there.
00:28:05>> I've hated windows for a number of years and I could never figure out why.
00:28:08And about three years ago, it finally hit me, that the reason I hated it was because it always makes me feel stupid.
00:28:14I go to do something and it gives me a warning that I don't understand, it's cryptic.
00:28:20>> You know, microsoft was one of the first big developers for apple.
00:28:26I mean, they made a fortune developing software for apple.
00:28:29And also for the mac.
00:28:29And they're one of the first big mac developers as well.
00:28:33>> As far as the pc users and mac users being compared, i really feel that there is a lot of give and take in the pc users' world, but that the pc users really get off on how complicated it is.
00:28:52It makes them feel superior when they set down with somebody and totally confuse them.
00:28:56>> Everything that went into our things that were initially purchased from other companies and developed for the mac.
00:29:02And then, of course, rolled into windows.
00:29:06And then, you know, they -- bill gates saw the mac operating system and was like, way to go, and windows 3 won, borrowed heavily from that, and windows 95, ten years later.
00:29:19The rest is history.
00:29:30.. ♪
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00:31:14
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00:32:40>>> You're watching "welcome to macintosh" on cnbc.
00:32:57>>> To start us off in the right direction is an individual who really needs little introduction.
00:33:03[ Applause ] after all -- after all, steve jobs has been around since the very first macintosh.
00:33:22So please join with me now and welcome, from apple computer, steve jobs.
00:33:27[ Applause ] >> during the last several weeks, we have looked at some of the relationships and I'd like to announce one of our first partnerships today, a very, very meaningful one, and that is one with microsoft.
00:33:50>> One of the things that I hear over and over again, always from windows people, of course, is that microsoft saved apple from certain doom by giving them $150 million.
00:34:01Well, if you look at the whole story, steve negotiated an agreement where microsoft agreed to produce office for another five years, apple wasn't going to compete with them.
00:34:11At the same time, microsoft made an investment of $150 million in apple stock that particular day.
00:34:17That served two purposes.
00:34:20One, it made it look like microsoft was confident in apple's survival, because they wouldn't have bought stock if they didn't.
00:34:28And secondly, it kind of cemented the agreement that, you know, we're not only sure you're going to be successful with this product, we're going to back it up by buying some stock, so we're part of it.
00:34:38We're not only a competitor in producing software, we're a partner in owning stock.
00:34:44What most people don't tell you is that they didn't need the money for microsoft to survive.
00:34:49This was all a marketing game.
00:34:50And a lot of windows people don't understand that.
00:34:52Microsoft didn't save apple.
00:34:55>> And if we want to move forward and see apple healthy and prospering again, we have to let go of a few things here.
00:35:04We have to let go of this notion that for apple to win, microsoft has to lose.
00:35:07Okay?
00:35:14We have to embrace the notion that for apple to win, apple has to do a really good job.
00:36:24>> What makes companies very successful and what makes companies fail is the same thing.
00:36:31It's sort of the passionate adherence to a strategy.
00:36:35>> People who are passionately involved in the concept, a philosophy, a design, a product will put everything of themselves into it.
00:36:45And you don't want somebody designing a product who isn't passionate about it.
00:36:52>> Innovation is, it's really the only interesting thing.
00:36:55If you're not innovating, what's the point?
00:36:58>> When apple creates through engineering something very cool that people want to buy, it does well.
00:37:04And when it doesn't, it doesn't.
00:37:07So, you know, guess what, newton didn't succeed.
00:37:11Apple 3 didn't succeed.
00:37:12Lisa didn't succeed.
00:37:15>> If you stand back and look at the macintosh, the macintosh line, everything they implement into their computers has personality.
00:37:22It's like the difference between owning a ferrari versus owning, you know, just a ford taurus.
00:37:30You know, it's sleeker style, design.
00:37:33It's fun to drive, you know, versus one that you just use to get to work.
00:37:38>> So macintosh was the megahit, but what was the first company that really made cd-rom drives on every computer?
00:37:46Guess what?
00:37:47It was apple.
00:37:51Guess who democratized 80211?
00:37:53Airport and apple.
00:37:59Right?
00:38:00And so -- how about firewire?
00:38:01Who made that a standard?
00:38:02How about usb?
00:38:04>> Some companies think you can innovate too fast because you don't milk the cash cow to the maximum before moving on.
00:38:12That's not the way apple usually thinks.
00:38:15>> So after a while, it's not just a big hit.
00:38:17You can say that these revolutions were caused by little uprisings that apple made successful.
00:38:29The mouse.
00:38:30Now, someone can say, park had the mouse and all that.
00:38:33But you know what?
00:38:34Park didn't make it a commercial success.
00:38:37>> Apple sort of, and it basically comes from both steve jobs and steve wozniak, they don't really care about that.
00:38:41Sure, they want to make money, but that's not what it's about.
00:38:44It's artistic values.
00:38:46Apple wants to do the greatest thing possible.
00:38:49They don't compare themselves to someone else.
00:38:53Who cares about other people can do great things too.
00:38:54That's great.
00:38:57It's more like, you know, being transcendently brilliant.
00:39:02No matter how well you've done it, how can you make it better?
00:39:05>> I would like to hear what jonathan ive would say.
00:39:12His design is so inspired, it's like it's devine providence or something.
00:39:16>> He has a team of phenomenally talented people, and they keep working on a problem until they come up with something fresh and new, like the scroll wheel on the ipod or that lux look in imac.
00:39:29>> If you look at what apple does, after it does it, one thing you always have to say is, how come nobody else did this before, right?
00:39:38There's nothing, like, mythical about the ipod and the wheel, right?
00:39:43Anybody could have done that.
00:39:49>> You know, the colored imacs changed design in everything.
00:39:53>> You know, like even on the lids of powerbooks, they open up very smoothly because they have this weird counterbalancing system.
00:39:59And no one is ever going to see this, it's not something that consumers will actually go out and buy.
00:40:09>> So wouldn't you think that some of these computer companies would say, aha, apple does well because it has beautiful products.
00:40:17So how much could the most expensive industrial designer in the world cost?
00:40:24You know, $1 million a year in salary?
00:40:26$2 Million a year?
00:40:27$5 Million?
00:40:29>> That's what makes these products so beautiful, that level of commitment and dedication to the thing.
00:40:36To make it the best thing possible.
00:40:39>> I'll tell you what, I'll take you to fry's, and I'll show you lines of crap.
00:40:46Ugly portables, ugly towers, ugly monitors, ugly mp3 players.
00:40:52Why is that?
00:40:56I guess in a sense it proves the point that these people don't know what to steal.
00:44:08>>> They seem to be all kinds of different people.
00:44:10You think that the prototypical mac user seems to be the graphic designer, you know, who lives in new york or san francisco, who's liberal, you know, young, sort of hip.
00:44:23There's a lot of different age groups, a lot of different income brackets.
00:44:27A lot of people who are in a lot of different jobs, a lot of different professions.
00:44:32>> Although apple would like you to think that everybody is a young buck that's 20 years old and has a mac, the truth is, most of the user group members are between 55 and 100 years old.
00:44:45>> Well, I think the apple community has stayed remarkably consistent.
00:44:49Its people who love good engineering, they love product design.
00:44:53They love being different, no pun intended, they love probably being the underdog.
00:44:58>> But then you ask these marketing guys, and they're convinced that apple is a brand.
00:45:04And it conjures up brand associations of creativity and liberty, freedom, and the people are buying into the brand, the way they buy a coke or a beer or a car or a pair of sneakers.
00:45:16It says something about them and their personality.
00:45:20>> You know, I think people might be a little more attracted to the rebelliousness of it.
00:45:29I mean, you're the "anti"crowd anyway, because you don't have a pc, right?
00:45:43>> For a lot of people, it's a elation when they go to mac world to see all these other mac users.
00:45:52It's amazing.
00:45:53They didn't know all these people were out there.
00:45:55>> Yeah.
00:45:56I actually went to my first mac world this year, which turned out to be a really good one to go to, since that was the one that introduced me to iphone.
00:46:02>> So actually, what I want to do is switch over to danny.
00:46:04Hey, danny.
00:46:05Still there?
00:46:06>> People take their vacations at mac world, like a week vacation just to go to mac world.
00:46:10>> PROBABLY 15th.
00:46:13I missed last year, and janet and i, my wife, we really regretted it because we really liked coming here and meeting with people.
00:46:22>> I've seen people show up with these giant suitcases, these huge suitcases, the ones on wheels, empty, just for all the crap they're going to collect at mac world, all the leaflets and free beers and the buttons.
00:46:36>> I did get my t-shirt, yeah.
00:46:38That I made sure of.
00:46:41>> It's like being on the casino floor at las vegas, without the cigarette smoke or the drinks.
00:46:46So you're horribly sober and people are barging into you and screaming and shrieking.
00:46:52You know, I've been at mac world and jobs will whip out some new machine.
00:46:59And my god, I've got to have that machine, even though I've already got six computers, I've got to have that one that he just unveiled.
00:47:08Why?
00:47:09Because it's faster or has a silver case or blue tooth built in, or something just crazy and stupid, really, but I've got to have that machine.
00:47:31>> So just before apple is about to open a brand-new store, a lot of people will camp out outside just for the honor of being the first inside.
00:47:38You know, there are a lot of people who are really, really passionate about it.
00:47:42When they open up the apple store, I went out there.
00:47:45There was 300, 400 people who camped out overnight to get into the store.
00:47:47And by the time they opened it, there was several thousand.
00:47:52I forget, 2,000, 3,000, 4,000 people and they were wrapped around the block a couple of times.
00:47:58And before apple had mac stores across the country, a lot of people would go hang out at their mom and pop apple store.
00:48:06People would come in with their broken-down computer, intending just to drop it off, but they would end up staying all day and start [ bleep ] and talking to other people in the store and they would meet other people who they don't necessarily have anything in common with, except they're mac users, and that's enough to cement it for them.
00:48:26>> People like us keep the machines around for so much longer.
00:48:28I don't think pc owners really do that.
00:48:31But a mac user, they'll keep an old machine around forever, as long as it's still running.
00:48:36>> We've all got old macs you can't bear to throw away, in the basement or in a cupboard somewhere, in the attic.
00:48:41They're kind of hard to part with.
00:48:43You always figure one day you're going to dust them off, do something with them, and you never do.
00:48:51They just sit rotting away.
00:48:52There are a lot of people who collect them, but some are more serious than others.
00:48:56>> Okay.
00:48:58Up first is our g3 monitor, very rare.
00:49:02When this came in, a friend of mine brought it in, it's the first time I'd ever seen it.
00:49:07I didn't even know that apple made it, but it's got the apple logo on it and it was made for the g3 tower.
00:49:15This is apple's entry.
00:49:16It's got the apple logo on it, into the portable printer.
00:49:25I started buying a couple of these machines from people i know and then refurbishing them.
00:49:33Here's my two plus that i purchased originally way back when.
00:49:38I replaced my apple two plus with an apple 2c and should have thrown the two plus away, but never did.
00:49:47Back here we made some kind of attempt at putting things on shelves, dual drives, apple 5.25s, APPLE 3.5s, APPLE Printers, apple keyboards, apple mice.
00:50:03Original boxes that are empty, but just didn't get the heart to throw away.
00:50:09Okay.
00:50:10We are in the bowels of the building.
00:50:14Up in the rafters there was too much nice space up here that we didn't want to waste, so we built these little shelves so we COULD PUT ALL OUR 2Es, 2 PLUSES, And it looks like critters have been up here because some have fallen down on the insulation.
00:50:37The monitors, the gs monitors, and every single one works.
00:50:41They were tested before we put them up here.
00:50:47Back here is a storage shed.
00:50:49It was meant to hold the things that were in my basement.
00:50:53And luckily, we built it a little bit bigger than what i intended.
00:51:02These things are going on ebay.
00:51:04I've seen them as high as 600, 700 bucks.
00:51:08It's not ever been a money issue on collecting or disposing of the apples.
00:51:15It's probably a sickness that i have.
00:51:206,000 Square feet building and this is only maybe less than half of what I have.
00:51:29There are probably other mac people out there in the same boat as I am that just wont throw this stuff away.
00:51:39>> So I'm starting to see all of these complaints about cult of mac.
00:51:43It's not a cult.
00:51:45This is a rational choice.
00:51:46And these are all these new windows people who have just come on board and are still sort of defensive about it, still.
00:51:53Because there are other windows friends that haven't crossed over yet.
00:51:55>> There is that macintosh cult following.
00:52:00You don't get a following like that for nothing, you know?
00:52:05You get, you know, if it's a good product and it makes people excited, and you can have lots of good products.
00:52:09There are lots of good products out there.
00:52:11I've got a skillet that's really good, but I'm not crazy about the skillet.
00:52:13>> It's always been kind of interesting.
00:52:15There's definitely a fanatical sort of zealotry of mac people.
00:52:23It's not a religion, it's a computer.
00:52:26I've got a lawnmower too, but i don't sit around talking about it.
00:52:30So I cut my grass, whatever.
00:52:33I type a word document.
00:52:35It's a screwdriver or a blender.
00:52:36Whatever.
00:52:38I'm not really in love with my mac.
00:52:41I like a good movie more than i do a good mac.
00:52:45I like good beverages more than my computer.
00:53:12>> I watch the rumor sites like a hawk.
00:53:16I'm a little more lucky this time.
00:53:19Because my blue and white g3, we got it and then the g4 came out like two weeks later.
00:53:23Like, what?
00:53:24>> Look how they're suing bloggers now for revealing some details about a very insignificant product, although it's been a problem that has plagued the company.
00:53:34I guess it's kind of rumor control.
00:53:39>> I get between 2,500 and 3,000 unique visitors a day.
00:53:45Which is, you know, for the fact that I'm just putting up goofy little jokes about a computer company, I think that's pretty good.
00:53:53I was a pretty avid reader of rumor sites for a long time.
00:53:57And usually, pretty much through THE LATE PART OF THE '90s AND Constantly checking on what apple is going to do next and that kind of thing.
00:54:06Then it started to hit me that i think around the time that one of them predicted that there was going to be a crank-powered ibook that these guys didn't necessarily know what they were talking about.
00:54:17I think they also just got worse when steve jobs came back, because he cracked down on the leaks that were going out to these sites.
00:54:27They were probably actually BETTER DURING THE MID-'90s, Probably more accurate.
00:54:30I didn't start out with any goal other than I just found myself writing these things anyway and I wanted a place to publish them.
00:54:38So there was no grand plan in mind.
00:54:42I never thought I was going to make any money doing it, and i do manage to actually make at least a little bit of money doing it.
00:54:47It keeps me off the streets.
00:58:25>>> You're watching "welcome to macintosh" on cnbc.
00:58:37>>> The idea of the start-up sound was from the apple two.
00:58:40The apple two, once it reset, made a little beep with the square root speakers, so we thought that was a great idea.
00:58:50It lets the computer -- lets the world know it made it, like an infant's first cry.
00:58:55The very first one we did for the earliest mac prototypes, we we had a square wave sound generator built into the early mac prototypes, and later got rid of that.
00:59:04So I made a thing that incremented the frequence with a -- I tweaked the delay so it made a whooping sound.
00:59:11So the first original bootup sound was more like woo-yup, or whatever.
00:59:15It was a little comical, but not very elegant.
00:59:20So I was experimenting with different things for the boot sound.
00:59:25But a guy named charlie kellner had just joined the mac team.
00:59:29Was also a brilliant musician and he had actually designed one of the first pc-based synthesizers called the alpha centari for the apple two, was an accomplished musician.
00:59:42And he looked at what I was doing, and he was messing around with different boot sounds, for the period of time i was doing it, everyone could hear it, trying this, trying that.
00:59:54And he said he had an algorithm he always wanted to use, and it's not conceptually musical, but more conceptual at the algorithm level, which was just filling sound buffer with a square wave and making passing through averaging every adjacent sample until they got to be all same.
01:00:18And that made a chiming bell-like sound.
01:00:20[ Bell ] it was in the mac, starting in 1984 and lasted up until the mac 2, where once again they put in even more sophisticated sound hardware and came up with a different sound that I wasn't involved with.
01:00:29>> Well, the startup sound, let me think.
01:00:30The main inspiration was how horrible the one on the mac 2 was.
01:00:33A tri-tone is the most dissonant sound you can imagine and stack four of them together.
01:00:41And that was the sound that you heard when you turned on the mac, which was horrible.
01:00:48And so I set out, trying to change that, because it didn't make any sense.
01:00:52Especially when you usually hear the startup sound after it crashed.
01:00:56I'm like, great, reward for a crash.
01:01:00So the sound I wanted to do turned out to be politically a challenge.
01:01:05No one wanted to change it.
01:01:06They thought of it as the brand.
01:01:07There was this new machine that we were building at the time called the quadra.
01:01:13And the quadra was going to have better speakers.
01:01:17And I'm like, great, horrible sound on better speakers.
01:01:21And so I started working on new sounds that would be the sound of -- well, I kind of though of it as, what's the pallet cleanser for a crash?
01:01:30Plus, it was this new bigger, badder machine and I wanted it to sound like a bigger, badder machine.
01:01:43I remember when "byte" magazine did the review, the opening paragraph of the review said, "i knew it was going to be a good " so I was like, I did it.
01:01:51That was the actual goal.
01:01:52I wanted it to sound like a good computer.
01:01:56It's kind of cool to hear it every time.
01:01:57I never really think about it, millions of people crashing and hearing me play the "c" major chord.
01:02:05No, it was a widespread "c" major chord with high "e," i think, in the upper voice, which to me just sounds more bright and sort of unresolved, but happy.
01:02:15It's a happy chord.
01:02:15It's way better than a tri-tone.
01:02:23Blnk >> one psychologist said that sound, people form a social relationship with their machine.
01:02:27It becomes like a friend.
01:02:28It becomes personalized.
01:02:30>> It seems a little silly, but you kind of build up a relationship with your computer.
01:02:35And it can either be a good relationship or it can be a dysfunctional relationship.
01:02:39>> And you can customize any computer system, but these are very easy to develop a relationship with that's different from customizing.
01:02:47>> They're the closest devices that I know of that are really symbiotic.
01:02:54And I'll admit it, when they do make it so that you can kind of jack in neurally, I'll do that.
01:02:59>> Yeah.
01:03:02I think maybe somebody -- somebody needs to sit down with those people.
01:03:06Maybe it's dr. phil.
01:03:09Your computer doesn't love you!
01:03:16This relationship is not working.
01:03:21Don't be an enabler.
01:03:24>> Their soul is somehow reflected in that machine.
01:03:28You know, it's an object of communication, but also of creativity.
01:03:33You know, the most essential things that they are, the things that express themselves are expressed through the computer.
01:03:42And so they invest, you know, so much in that that it's a cybernetic relationship.
01:03:50Brnk >> when steve came back, he was like hey, you know, we should get into this music thing.
01:04:19And he saw it, but to me it was like five years late.
01:04:22Like, that was obvious five years earlier.
01:04:24I think apple could be as big as sony right now if they had been five years earlier.
01:04:29A phone, finally?
01:04:30Whatever.
01:04:33>> A couple years ago, when apple said it was going to come through with some breakthrough device, there was a lot of speculation about what this might be.
01:04:40A lot of people figured it was a music player, but exactly what it was going to be, no one knew.
01:04:48And people were saying on the phones, they were going to buy it anyway.
01:04:50It didn't matter.
01:04:50They were going to get it because it was going to be [ bleep ] great.
01:04:56>> The ipod people have had the ipods in their pocket mainly because they love music.
01:05:00And that's through the apple employees who created it.
01:05:02>> People complain about it, but the fact they were able to make the ipod is actually why -- you know, one of the reasons why macs are still around.
01:05:13>> It's only really clear when you compare it to other products.
01:05:16They're a pain in the ass to use.
01:05:17I mean, they are impossible.
01:05:20>> There are more ipods in my house than there are people, by probably 2-1, but I never use an ipod.
01:05:31>> I have five.
01:05:32I think I have five, or we have five, the family has five, i think.
01:05:40>> You know, that's like this whole video thing on your ipod.
01:05:42Who cares?
01:05:43I thought we used to complain about postage stamp movies.
01:05:48That was the complaint we had 16 years ago.
01:05:50That's back to the future.
01:05:52I got this ipod.
01:05:53A movie on an ipod.
01:05:54I don't even get it.
01:05:54How long can I hold this up in front of my face before my arm gets tired?
01:05:58I can't even get through one tv sitcom.
01:06:05Progress.
01:06:08>> The big part of apple's marketing budget was sticking THE TVs AND MOVIES.
01:06:21So it culminated with -- what was it called?
01:06:23"Independence day" when the power book taps into the alien computer and blows up the alien ship.
01:06:27They paid, you know, tens of millions of dollars, I believe to do that.
01:06:31And this is like when product placement was starting to become big business in hollywood.
01:06:37But since then, you know, you see them all over the place.
01:06:39They are all over tv.
01:06:42And that has -- part of it is product placement.
01:06:44Part of it is because macs are popular in hollywood, you know, obviously the use of video editing.
01:06:52>> I've edited somewhere between 40 and 50 movies, television, theatrical movies.
01:06:58Well, I'll start with my calling card, "rocky," "down and out in beverly hills," "beaches," "american gigolo," "sister act," "the net," "payday," -- one of my favorite movies.
01:07:16I was a very successful film editor, editing mechanically with german machines, kems, steinbachs, moviolas.
01:07:32Whatever -- everything you can imagine, every piece of mechanical equipment you can imagine, I used.
01:07:35Take a simple film like "edward " we were editing mechanically.
01:07:38I was editing with my wife.
01:07:40Well, we went to location with four cams.
01:07:44I was editing, she was editing, and then we had a husband and wife team.
01:07:49They were our assistants.
01:07:51So there was four of us.
01:07:52And that was really economical.
01:07:55And we had four editing machines and we were able to keep up with camera.
01:07:59And we were able to get a christmas release and do the movie quite quickly.
01:08:04With this system, I'm pretty much a one-man band and my assistant.
01:08:11I can do the job of six or seven editors in the old system.
01:08:15Well, you can see, I mean, look at the environment now.
01:08:20Instead of editing in 1,200 square feet, I can edit in 200 Dear Mrs. Crandall: It's easy to get so busy, we can forget there are others who need our help...
01:10:51Let's work on your reading, okay?
01:10:52(Child reading) Vanessa, you're next.
01:10:58(Child reading) ♪ Everyday heroes, livin' in your neighborhood...
01:11:02
01:11:05By taking the time to help my daughter read, you've become her hero... and mine.
01:12:00>>> Apple is steve jobs, for sure.
01:12:02I mean, he is the one who defines the company.
01:12:06He founded it, but look at its recent history.
01:12:08He has his personality stamped all over it.
01:12:10>> I used to say about steve that he was the best person possible to work for and also the worst.
01:12:17Because he's a man of extremes.
01:12:21Steve's extremely passionate.
01:12:23He's incredibly sharp, he's more than anything else, incredibly quick.
01:12:26He's got the quickest mind of anyone I've ever talked to.
01:12:30>> Yeah.
01:12:31I mean, I idolize steve jobs.
01:12:36He's absolutely, you know, one of my -- he's like my favorite celebrity, but I don't pretend to think I would understand what would come out of his mouth if i asked him a question.
01:12:46>> I cannot explain how steve comes up with these things.
01:12:47He has a different operating system.
01:12:48Mere mortals cannot understand him.
01:12:49That's when people try to understand him and his quirks and all that, they get very frustrated.
01:12:57Because you can't -- it would be like telling a fish how to understand how a bird feels flying.
01:13:02It cannot be.
01:13:03The fish is stuck in the water.
01:13:04The bird is soaring.
01:13:05It's a different operating system.
01:13:06That's what it is.
01:13:09>> I think apple is his place in the world.
01:13:12This is where it all began.
01:13:16And, obviously, it's a piece of himself.
01:13:21>> It's a company that seems like it needs somebody who's not just your ordinary ceo to run it.
01:13:29They tried a number of ordinary CEOs IN THE '90s AND IT JUST Didn't work.
01:13:35>> 'Cause if you look at the time era that jobs was not there, apple fell into a category where their macs were just becoming like everyday computers.
01:13:45And there was nothing special about them.
01:13:48>> But, of course, steve jobs has an incredibly strong aesthetic, in case you can't tell.
01:13:53>> I don't think you could change the dna of apple if you tried.
01:13:59So apple's dna isn't in building cool stuff, it's an engineering company.
01:14:04They can say they're marketing and all that, but marketing-driven company is a company that theoretically listens to the market and delivers what the market says it wants.
01:14:12Ha!
01:14:14You can say many things about apple, but that ain't one of them, okay?
01:14:18They don't listen to anybody.
01:14:20Apple's idea of market research is steve's right hemisphere is connected to his left hemisphere.
01:14:27That's the focus group.
01:14:29>> Immediately, when jobs came back, the first thing he did was the imac.
01:14:32He set the personality, set the tone of the computer.
01:14:34He's like, here, we're going to break boundaries, we're going to take it to the next level, the next edge.
01:14:40>> You could make the case that apple 3 wasn't his and newton wasn't his and lisa wasn't his.
01:14:49So the only time it flubbed or stubbed its toe is when steve wasn't behind it.
01:14:55>> I don't see apple being able to continue at the pace that it's going right now.
01:15:01I mean, I don't expect it to suddenly, you know, fumble and fall, but it's not going to be what it is now.
01:15:08>> That depends on whether or not the philosophy employed by steve in focusing on product and having a passionate view of the product and it's relationship to the rest of the operating enterprise.
01:15:24If they get somebody like that in there, then it will continue as an ever-growing, ever-expanding, ever-creative enterprise.
01:15:35>> That's interesting, yeah.
01:15:37That's an interesting thought.
01:15:39I don't know whether apple is just going to stagnate, you know.
01:15:46>> Well, the story, and I don't know if it's true, but when you went into the hp's lobby, there was h's portrait and p's portrait, right?
01:15:55And when carly came in, she put her portrait, okay?
01:16:00[ Laughter ] you know what I'm coming to, right?
01:16:05You hire some [ bleep ] head who does that, it's game over, baby.
01:16:12We'll all be listening to zunes and using windows machines.
01:16:17If they get a bottom line man in there, it may succeed, but it will never have the aura and the passion that it has today.
01:16:26>> You can trace the greatness of apple pretty closely back to the greatness of steve.
01:16:29Some of the flaws of apple as well.
01:16:33>> I can't build a case that it's going to be easy to find another steve jobs.
01:16:37It may not be that you want another steve jobs, because there can be no other steve jobs.
01:17:55..?
01:17:56Calling chase sapphire, seeing if we have enough points to stay longer.
01:17:58..
01:17:59..
01:18:01No buttons, someone answers every time.
01:18:03..
01:18:06..
01:18:07Yeah, ok.
01:18:09..
01:18:10I have a question about my points.
01:18:11Hi, what button do I press for a massage?
01:18:14Hello?
01:18:15..
01:18:16You call. we answer. no waiting.
01:18:17..
01:18:19Go to chase.com/sapphire.
01:18:21Chase what matters.
01:20:02>>> The macintosh spirit was not something we created with a macintosh, although we sort of contributed to it.
01:20:09But it was there before the macintosh, because it's really the spirit of the apple two.
01:20:14And so much of the spirit of the apple two is the spirit of steve wozniak's personality as well as steve jobs'.
01:20:23>> The core of apple is to change the world.
01:20:25And that has not changed.
01:20:27I don't think it can.
01:20:29I don't think it could change if you tried to change it.
01:20:31>> In a broader sense, though, some of that spirit of the apple 2 was the spirit of the personal computer revolution.
01:20:42And really, what is more than anything else is a celebration of unbounded possibility.
01:20:48The key thing, those first microcomputers, even pre-apple 2, BUT EVEN THE APPLE 2s Couldn't really do much, yet they were incredibly exciting because you knew they were the seed that would change the world.
01:21:00>> If you look at steve and woz, what they did is they created apple 1, which changed the world.
01:21:07Apple 2 changed the world.
01:21:08Macintosh changed the world.
01:21:15Ipod changed the world.
01:21:17And maybe this phone will change the world.
01:21:18So that's five things.
01:21:19You can't call that luck.
01:21:20>> We filled the machine with our love and passion for what we were doing.
01:21:25And it radiates out on the other side of the screen and affects the user.
01:21:38>> A lot of people were shown apple computers in schools.
01:21:41Apple is very, very prominent in schools.
01:21:45And therefore people have gone through the school systems and the college have stuck with apple.
01:21:51The ones that see it as a truly superior product, which it can be.
01:21:54>> Well, we're like all other user groups.
01:21:55We got together because stuff was really expensive.
01:21:59You couldn't afford much.
01:22:02And quite frankly, almost every user group in the world started out as a pirate group and became legitimate.
01:22:09>> The commercial is great.
01:22:11The commercial is fantastic!
01:22:16I then edited it.
01:22:18Pirates of silicon valley many years later, and the movie started off with that same commercial.
01:22:31>> Well -- oh, [ bleep ].
01:22:34>> It's another thing burrell and I would do every day in the earlier days of the project when we were at texaco towers.
01:22:42Before we were doing something as healthy as playing basketball, we would go across the street to the cicero's " >> for one thing, I'm living proof, if you do one thing right in your career, you can coast for a long time.
01:22:56A long time!
01:23:01>> Do you think steve jobs is going to be willing to sit down and talk to us?
01:23:05>> Sit down and talk to you?
01:23:06No.
01:23:09>> I didn't want to tell you this, but steve was in here about four months ago and spent -- spent part of a day, about three hours here.
01:23:17>> But I'll make a prediction.
01:23:18And my prediction is you will not talk to steve jobs for this documentary.
01:23:26>> Probably, probably would say no.
01:23:30>> That depends on the mood he is in when you try to talk to him.
01:23:33If you hit him on a good day, it's come on in, come down, we'll go to dinner.
01:23:39>> I mean, half the time he is not willing to talk to cnn/fn.
01:23:46You know, I mean, I think he bolted out of one of those interviews a couple of years ago.
01:23:50>> You get him on a bad day, it's sorry, I haven't got time for this.
01:23:53Presumably you don't go skidding down the stairs on your hind quarters.
01:23:56>> The only way you could hook him would be to show him some of the film.
01:24:01>> I called him up and asked him to come visit when he had a chance.
01:24:07>> You're fibbing, of course?
01:24:08>> I am fibbing.
01:24:08>> Oh, okay.
01:24:15>> Steve will not talk to "the new york times" usually.
01:24:20>> It might be better even if you didn't have him.
01:24:24It might be better if you had like a cloaked figure behind the background, you know what i mean?
01:24:30And this was the mysterious jobs, you know.
01:24:36>> I shouldn't tell you this, but he lives walking distance from here.
01:24:39You could go stake out the house.
01:24:42>> No, he would probably call on us or something.
01:24:43>> Yeah, he probably would.
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