1 00:00:02,857 --> 00:00:17,857 Fixed & Synced by bozxphd.Enjoy The Flick 2 00:00:24,858 --> 00:00:27,396 After hours of getting this thing right... 3 00:00:33,992 --> 00:00:35,824 God, look at that. Look, I'm on television. 4 00:00:35,953 --> 00:00:38,536 - Hey! Isn't that amazing? - Yeah, it is. 5 00:00:38,664 --> 00:00:40,701 - You're on TV in New York, too. - What's that? 6 00:00:40,832 --> 00:00:42,368 - You're on TV in New York, too. - No, no. 7 00:00:42,543 --> 00:00:44,751 - Yes, you are. - Am I really? Are you serious? 8 00:00:44,878 --> 00:00:47,120 - Yeah, they got you in New York. - God. 9 00:00:51,134 --> 00:00:53,296 I'm gonna let you put it in your own ear. 10 00:00:53,428 --> 00:00:54,635 - Really? - It's a talk back. 11 00:00:54,763 --> 00:00:58,552 - They're going to talk to you. - This is not the real thing, right? 12 00:00:58,684 --> 00:01:00,016 You just want a picture of me now? 13 00:01:00,185 --> 00:01:02,893 - They're going to sit you here first. - God. 14 00:01:06,900 --> 00:01:08,732 You need to tell me where the restroom is, too, 15 00:01:08,860 --> 00:01:10,146 cos I'm deathly ill, actually, 16 00:01:10,320 --> 00:01:11,902 and ready to throw up at any moment, so... 17 00:01:12,030 --> 00:01:16,365 - It's right across the hall. - Great. I'm not joking. 18 00:01:24,376 --> 00:01:27,619 We're ready to go, gentlemen. New York's waiting for a shot of him. 19 00:01:58,744 --> 00:02:02,454 If you see in my eyes, I've been crying just a little bit. 20 00:02:02,581 --> 00:02:05,619 And it seems really ridiculous because I've never met the man. 21 00:02:05,751 --> 00:02:11,543 I know life is ephemeral, but I just, you know, 22 00:02:11,673 --> 00:02:14,586 I expected him to be around a little longer. 23 00:02:14,718 --> 00:02:17,005 Pretty sure everybody did, but, you know... 24 00:02:17,137 --> 00:02:21,131 The thing I'm using right now, an iMac, he made. 25 00:02:21,266 --> 00:02:25,010 He made the iMac. He made the Macbook. 26 00:02:25,145 --> 00:02:28,388 He made the Macbook Pro. He made the Macbook Air. 27 00:02:28,523 --> 00:02:32,187 He made the iPhone. He made the iPod. 28 00:02:34,029 --> 00:02:38,774 Yeah, he's made the iPod Touch. He's made everything. 29 00:02:44,289 --> 00:02:49,535 ♪ Hey, Mr Tambourine Man Play a song for me 30 00:02:49,711 --> 00:02:54,672 ♪ I'm not sleepy And there's no place I'm going to 31 00:02:55,634 --> 00:03:01,471 ♪ Hey, Mr Tambourine Man Play a song for me 32 00:03:01,598 --> 00:03:06,889 ♪ In the jingle jangle morning I'll come following you 33 00:03:07,896 --> 00:03:12,061 It's not often that the whole planet seems to feel a loss together, 34 00:03:12,192 --> 00:03:14,058 but after the death of Steve Jobs, 35 00:03:14,194 --> 00:03:17,153 co-founder of Apple and singular dreamer, 36 00:03:17,280 --> 00:03:20,364 all day, we watched as there was a kind of global wake. 37 00:03:20,492 --> 00:03:24,532 On Facebook, millions changing their profiles to the Apple logo. 38 00:03:24,663 --> 00:03:28,156 A kind of black armband, a gesture of gratitude. 39 00:03:28,375 --> 00:03:32,540 We've been monitoring the hashtag "thankyousteve." 40 00:03:32,671 --> 00:03:34,378 My favorite tweet last night 41 00:03:34,589 --> 00:03:39,175 was four simple letters simply saying, "iSad." 42 00:03:52,566 --> 00:03:53,852 Hi. 43 00:03:57,988 --> 00:04:01,152 When Steve Jobs died, I was mystified. 44 00:04:01,283 --> 00:04:05,072 What accounted for the grief of millions of people who didn't know him? 45 00:04:05,203 --> 00:04:08,571 I'd seen it with John Lennon and Martin Luther king, 46 00:04:08,707 --> 00:04:12,291 but Steve Jobs wasn't a singer or a civil-rights leader. 47 00:04:13,503 --> 00:04:16,667 Many commentators were surprised 48 00:04:16,798 --> 00:04:21,884 by the intensity and the power of this wave of emotion. 49 00:04:22,012 --> 00:04:27,007 What was it? And I think it was truly love. 50 00:04:27,142 --> 00:04:33,184 Jobs has proven to be the one and only person in the world 51 00:04:33,315 --> 00:04:38,606 who can create technology products that people love. 52 00:04:41,239 --> 00:04:42,901 Wall-E. 53 00:04:43,784 --> 00:04:47,198 I love "Wall-E," a film Jobs's Pixar produced, 54 00:04:47,329 --> 00:04:49,537 and I love my iPhone, 55 00:04:49,748 --> 00:04:54,038 but the grief for Jobs seemed to go beyond the products he left behind. 56 00:04:54,169 --> 00:04:57,583 We mourned the man himself, but why? 57 00:04:57,714 --> 00:05:01,879 Behind the scenes, Jobs could be ruthless, deceitful and cruel. 58 00:05:02,010 --> 00:05:07,301 Yet he won our hearts by convincing us that Apple represented a higher ideal. 59 00:05:07,432 --> 00:05:11,676 It was not like other companies. It was different. 60 00:05:13,730 --> 00:05:18,600 Good morning and welcome to Apple's 1984 annual shareholders' meeting. 61 00:05:18,735 --> 00:05:21,148 I'd like to open the meeting with part of an old poem, 62 00:05:21,279 --> 00:05:24,443 about a 20-year-old poem, by Dylan. That's Bob Dylan. 63 00:05:26,493 --> 00:05:29,702 "Come writers and critics who prophesize with your pens 64 00:05:29,830 --> 00:05:32,413 and keep your eyes wide, the chance won't come again." 65 00:05:32,582 --> 00:05:35,290 "And don't speak too soon for the wheel's still in spin 66 00:05:35,460 --> 00:05:37,827 and there's no telling who that it's naming." 67 00:05:37,963 --> 00:05:42,708 "For the loser now will be later to win, for the times, they are a-changing." 68 00:05:42,926 --> 00:05:46,840 Jobs loved Dylan maybe because he wasn’t just one thing. 69 00:05:47,013 --> 00:05:51,428 He was a storyteller who could be whatever we wanted him to be. 70 00:05:52,644 --> 00:05:55,978 I don't even what know what All Along The Watchtower means. 71 00:05:56,106 --> 00:05:58,393 I think it is one of the most beautiful, haunting, 72 00:05:58,525 --> 00:06:04,317 brilliant pieces of poetry ever. And to me, it's like Steve. 73 00:06:05,866 --> 00:06:09,109 "There must be some way out of here, said the..." 74 00:06:09,244 --> 00:06:10,244 What is it? 75 00:06:10,287 --> 00:06:11,903 Said the Joker to the Thief. 76 00:06:12,247 --> 00:06:13,613 He's both. 77 00:06:28,555 --> 00:06:31,923 ♪ "There must be Some way out of here" 78 00:06:32,058 --> 00:06:34,015 ♪ Said the joker to the thief 79 00:06:35,145 --> 00:06:38,559 ♪ There's too much confusion 80 00:06:38,732 --> 00:06:40,564 ♪ I can't get no relief 81 00:06:41,943 --> 00:06:44,651 ♪ Businessmen, they drink my wine 82 00:06:44,779 --> 00:06:48,193 ♪ Plowmen dig my earth 83 00:06:48,325 --> 00:06:51,363 ♪ None of them along the line 84 00:06:51,494 --> 00:06:54,658 ♪ Know what any of it is worth 85 00:07:31,868 --> 00:07:34,030 There's something going on here in life 86 00:07:34,162 --> 00:07:37,997 beyond just a job and a family and career. 87 00:07:38,124 --> 00:07:40,867 There's another side of the coin. 88 00:07:44,339 --> 00:07:45,705 It's the same thing 89 00:07:45,882 --> 00:07:50,217 that causes people to want to be poets instead of bankers. 90 00:07:51,930 --> 00:07:57,301 And I think that that same spirit can be put into products. 91 00:07:57,435 --> 00:07:59,893 And those products can be manufactured and given to people, 92 00:08:00,021 --> 00:08:02,354 and they can sense that spirit. 93 00:08:05,652 --> 00:08:09,111 A computer is a straightforward, everyday machine. 94 00:08:09,239 --> 00:08:11,982 A simple way of studying the principle of how it works 95 00:08:12,117 --> 00:08:15,235 is that a computer is quite dead. 96 00:08:15,370 --> 00:08:18,408 It can do nothing without someone to give instructions. 97 00:08:20,375 --> 00:08:23,539 When I was growing up, computers weren't something to love. 98 00:08:23,670 --> 00:08:25,457 They were something to fear. 99 00:08:25,588 --> 00:08:29,878 They were huge, impersonal, made by faceless corporations. 100 00:08:30,010 --> 00:08:33,128 But for Jobs, it was different. 101 00:08:33,263 --> 00:08:36,176 I saw my first computer when I was 12 at NASA. 102 00:08:36,307 --> 00:08:39,641 We had a local NASA center nearby. It was a terminal, 103 00:08:39,811 --> 00:08:42,178 which was connected to a big computer somewhere. 104 00:08:42,313 --> 00:08:45,101 This is one of the consoles they might be using in the future. 105 00:08:45,275 --> 00:08:47,437 It looks very much like just a regular typewriter. 106 00:08:47,569 --> 00:08:49,026 Too often the equipment of the past 107 00:08:49,154 --> 00:08:51,020 has sort of been designed for other machines. 108 00:08:51,156 --> 00:08:52,317 They're really not for people. 109 00:08:52,449 --> 00:08:57,035 I saw my second computer a few years later, the Hewlett-Packard 9100. 110 00:08:57,162 --> 00:08:59,950 The 9100 computing calculator. 111 00:09:00,081 --> 00:09:05,076 It was very large. Had a very small cathode ray tube on it for display. 112 00:09:05,211 --> 00:09:08,830 And I got a chance to play with one of those maybe in 1968. 113 00:09:08,965 --> 00:09:10,501 I started going up 114 00:09:10,633 --> 00:09:13,751 to Hewlett-Packard's Palo Alto research lab every Tuesday night, 115 00:09:13,887 --> 00:09:18,052 and I spent every spare moment I had trying to write programs for it. 116 00:09:18,183 --> 00:09:19,264 I was so fascinated by this. 117 00:09:21,478 --> 00:09:23,936 We have a pointing device called a mouse. 118 00:09:24,064 --> 00:09:25,646 I don't know why we call it a mouse. 119 00:09:25,815 --> 00:09:30,185 By 1968, Stanford's Doug Engelbart, inventor of the mouse, 120 00:09:30,320 --> 00:09:31,856 was asking new questions 121 00:09:31,988 --> 00:09:36,232 about the essential nature of our changing relationship with computers. 122 00:09:36,367 --> 00:09:39,986 If in your office, you as an intellectual worker 123 00:09:40,121 --> 00:09:42,955 were supplied with a computer display 124 00:09:43,083 --> 00:09:47,202 backed up by a computer that was alive for you all day 125 00:09:47,337 --> 00:09:51,581 and was instantly responsible, responsive, 126 00:09:51,716 --> 00:09:53,924 instantly responsive to every action you had, 127 00:09:54,094 --> 00:09:56,051 how much value could you derive from that? 128 00:09:56,221 --> 00:10:00,181 We needed a guide to help us navigate this new relationship. 129 00:10:03,228 --> 00:10:08,269 My whole adult life has been spent building personal computers. 130 00:10:08,399 --> 00:10:13,440 So, the history of my vocation and my avocations 131 00:10:13,571 --> 00:10:16,905 and, you know, my growing up are all the same, 132 00:10:17,075 --> 00:10:19,738 and it's very hard to separate one from the other. 133 00:10:29,045 --> 00:10:31,879 I come from a place called Silicon Valley, California, 134 00:10:32,006 --> 00:10:34,999 and you'll find there are a lot of electronics kits around. 135 00:10:35,135 --> 00:10:39,049 My electronics teacher realized that I had a lot of computer ability 136 00:10:39,180 --> 00:10:41,547 that went beyond anything he could possibly teach me in school. 137 00:10:41,683 --> 00:10:45,222 He knew that as long as I was in class, I was just going to sit around, 138 00:10:45,353 --> 00:10:47,185 playing pranks on the other students 139 00:10:47,397 --> 00:10:49,764 like wrapping little hair wires around certain circuits 140 00:10:49,899 --> 00:10:52,141 so when they plugged in their radio, it would blow up. 141 00:10:58,241 --> 00:10:59,823 As hard as I think about it, 142 00:10:59,993 --> 00:11:02,406 I don't think I ever had one friend who was not one of the tech kids. 143 00:11:03,955 --> 00:11:07,448 I met Woz when I was maybe 12 years old, 13 years old. 144 00:11:07,584 --> 00:11:10,292 He was the first person I met that knew more electronics than I did. 145 00:11:10,420 --> 00:11:14,755 And one of the things that Woz and I did was we built blue boxes. 146 00:11:19,095 --> 00:11:20,961 One day I picked up a magazine, 147 00:11:21,097 --> 00:11:25,341 and I started reading a story about phone phreaks and blue boxes. 148 00:11:27,395 --> 00:11:29,557 When phone phreaks have a convention, 149 00:11:29,689 --> 00:11:33,433 as they did in the ballroom of a seedy New York hotel lately, 150 00:11:33,568 --> 00:11:38,188 masks are given out at the door. People don't give their right names. 151 00:11:38,364 --> 00:11:43,280 The blue box was a little device that put special tones into anybody's phone 152 00:11:43,411 --> 00:11:46,700 and those tones would connect you anywhere you wanted. 153 00:11:46,831 --> 00:11:49,619 Halfway through reading this, I called Steve Jobs over 154 00:11:49,792 --> 00:11:52,751 and started reading it to him over the phone. 155 00:11:52,962 --> 00:11:55,830 There's a way to fool the entire telephone system 156 00:11:56,007 --> 00:11:58,169 into thinking you were a telephone computer 157 00:11:58,301 --> 00:12:01,294 and to open up itself and let you call anywhere in the world for free. 158 00:12:01,429 --> 00:12:05,139 You could call from a pay phone, go to White Plains, New York, 159 00:12:05,266 --> 00:12:06,757 take a satellite to Europe. 160 00:12:06,893 --> 00:12:09,476 And you'd go around the world and call the pay phone next door. 161 00:12:09,646 --> 00:12:11,729 Shout in the phone, be about 30 seconds, 162 00:12:11,856 --> 00:12:13,597 it'd come out the other end of the other phone. 163 00:12:13,775 --> 00:12:17,519 And he's like, "Hello," There's a lag and, "Hello, how are you?" 164 00:12:17,654 --> 00:12:19,361 "I'm fine." You know? 165 00:12:19,489 --> 00:12:22,903 Why, one might wonder, would someone want to do that? 166 00:12:23,076 --> 00:12:25,363 To rip off the phone company. 167 00:12:25,495 --> 00:12:27,657 And these were illegal, I have to add. 168 00:12:29,916 --> 00:12:33,500 In college, I had a blue box of my own. It was important 169 00:12:33,628 --> 00:12:37,212 because long-distance phone calls were really expensive back then. 170 00:12:38,633 --> 00:12:41,842 It was also a way of sticking it to the man. 171 00:12:42,095 --> 00:12:45,714 This would become an important selling point for Jobs, too, 172 00:12:45,848 --> 00:12:49,558 even as he left the technical work to others. 173 00:12:49,686 --> 00:12:51,643 Well, I had this blue box design. 174 00:12:51,771 --> 00:12:54,058 I did a trick in there that I've never done that good a trick 175 00:12:54,190 --> 00:12:55,647 in any other design in my life. 176 00:12:55,775 --> 00:12:59,735 And Steve Jobs said, "Hey, why don't we sell them?" 177 00:12:59,862 --> 00:13:02,229 You know, you rapidly run out of people you want to call, 178 00:13:02,365 --> 00:13:05,449 but it was the magic that two teenagers 179 00:13:05,576 --> 00:13:08,284 could build this box for $100 worth of parts 180 00:13:08,413 --> 00:13:13,533 and control hundreds of billions of dollars of infrastructure 181 00:13:13,668 --> 00:13:16,502 in the entire telephone network in the whole world. 182 00:13:17,839 --> 00:13:22,755 We could sort of influence the world, you know? 183 00:13:22,885 --> 00:13:24,547 Control it, in the case of blue boxes, 184 00:13:24,721 --> 00:13:27,134 but something much more powerful than controlling. 185 00:13:27,265 --> 00:13:32,226 Influencing, in the case of Apple. And they're very closely related. 186 00:13:32,353 --> 00:13:33,810 I really do, to this day, 187 00:13:33,938 --> 00:13:37,147 feel that if we hadn't had had those blue box experiences, 188 00:13:37,358 --> 00:13:39,645 there never would have been an Apple computer. 189 00:13:39,777 --> 00:13:41,939 I think Jobs was always a storyteller. 190 00:13:42,113 --> 00:13:45,948 There was always this sense that he was constructing a persona. 191 00:13:47,327 --> 00:13:50,070 The first time I sat down with him to work on a story, 192 00:13:50,204 --> 00:13:52,321 he immediately asked me if I had read. 193 00:13:52,457 --> 00:13:57,577 Thomas Kuhn's "The Structure of Scientific Revolutions." 194 00:13:57,712 --> 00:14:00,455 I think he was assimilating into this personality, 195 00:14:00,590 --> 00:14:02,923 this notion that he had found in Kuhn. 196 00:14:03,092 --> 00:14:06,210 The random result that eventually creates 197 00:14:06,346 --> 00:14:08,963 a paradigm shift where everybody one morning wakes up, 198 00:14:09,140 --> 00:14:10,881 and they think the new way. 199 00:14:11,017 --> 00:14:15,136 And I believe that he thought that he was a paradigm shifter. 200 00:14:15,271 --> 00:14:19,231 That was part of his story. He wanted to have a foot in both worlds. 201 00:14:19,359 --> 00:14:22,943 He wanted to be the renegade, but he also wanted to be legit. 202 00:14:24,989 --> 00:14:29,654 This is the video deposition of Steven P Jobs. 203 00:14:29,786 --> 00:14:33,746 We are on the record at 9:22am. 204 00:14:33,873 --> 00:14:38,243 Can we just sort of briefly go over your employment history after 1973? 205 00:14:39,879 --> 00:14:45,546 I was employed by Atari, a maker of video games. 206 00:14:47,387 --> 00:14:51,757 - What timeframe? - I don't know. Early '70s. 207 00:15:04,278 --> 00:15:08,363 Creativity is a lot about anarchy. 208 00:15:10,952 --> 00:15:13,410 I had been in the video-game business two years 209 00:15:13,538 --> 00:15:18,533 and our corporate culture was really "work hard, play hard." 210 00:15:18,668 --> 00:15:20,751 The true original sin of Apple 211 00:15:20,878 --> 00:15:23,746 literally takes place before the company is founded. 212 00:15:23,881 --> 00:15:27,465 Jobs had left Reed College and now he was back in Silicon Valley. 213 00:15:27,593 --> 00:15:29,676 Woz was working at HP. 214 00:15:29,804 --> 00:15:31,215 I was such a nerd. 215 00:15:31,347 --> 00:15:34,340 When I finished designing calculators at Hewlett-Packard in the daytime, 216 00:15:34,475 --> 00:15:36,182 I would work on my own little projects. 217 00:15:36,310 --> 00:15:38,518 I saw "Pong" in a bowling alley, and I said, 218 00:15:38,646 --> 00:15:41,605 "I know logic design, and I know electronics of televisions." 219 00:15:41,732 --> 00:15:46,773 "I'll use my home TV, snake a wire in," and I built myself a "Pong." 220 00:15:46,904 --> 00:15:48,611 Steve came back from Reed College 221 00:15:48,739 --> 00:15:51,322 and saw that I had built my own Pong game. 222 00:15:51,451 --> 00:15:54,239 And so that gave him the idea to go down to Atari. 223 00:15:54,370 --> 00:15:56,737 And he went down, and he showed them the board 224 00:15:56,914 --> 00:15:58,450 and he wound up with a job. 225 00:15:58,583 --> 00:16:01,747 Steve came in and said, in typical Steve Jobs fashion, 226 00:16:01,878 --> 00:16:03,710 "I'm not going to leave until you hire me." 227 00:16:03,838 --> 00:16:10,506 And I really appreciated his intensity. He had one speed. Full on. 228 00:16:10,636 --> 00:16:13,970 I had one little project that everyone kept turning down. 229 00:16:14,098 --> 00:16:15,805 It was a project called "Breakout." 230 00:16:15,933 --> 00:16:19,017 And finally I said, "Steve, hey, do this for me." 231 00:16:19,145 --> 00:16:20,431 In the back of my mind, 232 00:16:20,563 --> 00:16:26,480 I knew that Woz was coming over all the time after working at HP all day, 233 00:16:26,611 --> 00:16:30,230 and I thought, "OK, I'll put Steve on the night shift." 234 00:16:30,448 --> 00:16:33,486 "Woz will come over. I'll get two Steves for the price of one." 235 00:16:33,618 --> 00:16:37,407 Steve said, "Nolan Bushnell of Atari wants another game built." 236 00:16:37,538 --> 00:16:39,495 But we only had four days, Steve said. 237 00:16:39,624 --> 00:16:42,458 When a game is made out of chips and it's not a program, 238 00:16:42,585 --> 00:16:45,749 four days is, like, impossible. This is months' worth of work. 239 00:16:47,757 --> 00:16:48,793 I did the entire design, 240 00:16:48,925 --> 00:16:51,542 and then Steve would breadboard my design for a little while. 241 00:16:52,553 --> 00:16:56,968 We were up four days and nights non-stop. Both got mononucleosis. 242 00:16:57,099 --> 00:17:00,012 And we got "Breakout" delivered to Atari, and they paid for it. 243 00:17:04,607 --> 00:17:07,645 Later on, Woz and I were out to dinner. 244 00:17:07,777 --> 00:17:10,144 He was talking about Breakout, 245 00:17:10,321 --> 00:17:13,530 and I said, "Well, you know, you guys got paid pretty well for it." 246 00:17:13,658 --> 00:17:16,275 He looked at me puzzled, and I said, 247 00:17:16,410 --> 00:17:19,574 "Yeah, I mean, you did such a good job." 248 00:17:19,705 --> 00:17:24,791 "I think there was at least a $5,000 bonus that you guys got." 249 00:17:24,919 --> 00:17:28,788 So, yeah, he was paid $7,000, and he told me that we were paid $700, 250 00:17:28,923 --> 00:17:30,915 and he wrote me a check for $350. 251 00:17:32,134 --> 00:17:34,217 You know, and that hurts because we were friends. 252 00:17:34,387 --> 00:17:36,549 And do you do that to a friend? 253 00:17:36,681 --> 00:17:39,765 If he'd said, "I need the money," I would have said, "Take it all." 254 00:17:39,892 --> 00:17:42,509 I was happy to be on the project. 255 00:17:42,645 --> 00:17:45,228 I think that Steve... 256 00:17:47,316 --> 00:17:50,354 was very driven 257 00:17:50,486 --> 00:17:57,279 and would very often take shortcuts to achieve his goals. 258 00:18:02,456 --> 00:18:06,416 ♪ Then in time we'll tell who has fell 259 00:18:06,544 --> 00:18:09,537 ♪ And who's been left behind 260 00:18:09,672 --> 00:18:12,915 ♪ When you go your way And I go mine 261 00:18:15,928 --> 00:18:19,092 Apple was a sitcom. It was a 30-year sitcom. 262 00:18:19,223 --> 00:18:21,681 And Steve was the main character. 263 00:18:25,187 --> 00:18:28,396 This was written in December 1976. 264 00:18:28,524 --> 00:18:32,734 In fact it starts out saying, "Who's Apple," so that was very early. 265 00:18:35,281 --> 00:18:39,241 He and Woz came in. Steve had long hair down his back. 266 00:18:39,410 --> 00:18:44,371 He had a Ho Chi Minh beard, cutoffs, Birkenstocks. 267 00:18:44,498 --> 00:18:48,367 And Wozniak was maybe a little bit upscale from that, but not much. 268 00:18:48,502 --> 00:18:50,619 I used to like Intel's advertising, 269 00:18:50,755 --> 00:18:53,748 So I called them up one day, and I said, "Who does your advertising?" 270 00:18:53,883 --> 00:18:56,796 They said, "Well, Regis McKenna." "What's a Regis McKenna?" 271 00:18:56,927 --> 00:18:58,759 They said, "No, it's a person." 272 00:18:58,888 --> 00:19:02,677 Wozniak had a technical article on the Apple II. 273 00:19:02,808 --> 00:19:05,767 He wanted us to try to get it placed into a magazine. 274 00:19:05,895 --> 00:19:10,265 Nobody could read it. It was all technical jargon and so forth. 275 00:19:10,441 --> 00:19:12,353 And so I told him I'd have to rewrite it, 276 00:19:12,485 --> 00:19:14,522 and he wasn't happy about that. 277 00:19:14,654 --> 00:19:16,771 He said, "No one's going to rewrite my stuff." 278 00:19:16,906 --> 00:19:18,863 I said, "Well, then there's nothing I can do for you", 279 00:19:18,991 --> 00:19:20,107 so you might as well leave." 280 00:19:20,284 --> 00:19:23,527 Steve called back, and he pretty much convinced me 281 00:19:23,663 --> 00:19:25,780 that he would be the person that we'd be dealing with 282 00:19:25,915 --> 00:19:28,874 and that Wozniak would be designing and building things, 283 00:19:29,001 --> 00:19:30,867 which is the way it happens in most businesses. 284 00:19:31,003 --> 00:19:32,710 The engineers are more back room 285 00:19:32,922 --> 00:19:36,666 and you work with either the entrepreneur or the marketing people. 286 00:19:38,094 --> 00:19:40,461 Did you think early on that Steve could be the guy? 287 00:19:40,596 --> 00:19:44,260 Oh, definitely. You just had to spend a few minutes with him and you knew it. 288 00:19:44,433 --> 00:19:45,799 He had the ability 289 00:19:45,935 --> 00:19:49,849 to talk about the possibility of what this computer could be. 290 00:19:49,980 --> 00:19:53,815 And I think the key is not just talking about the product, 291 00:19:53,943 --> 00:19:59,029 but giving you an idea of what is possible using this product 292 00:19:59,156 --> 00:20:02,240 and what the next generation is going to be like. 293 00:20:02,368 --> 00:20:06,203 So he gives people this feeling of forward movement. 294 00:20:06,330 --> 00:20:09,118 - How many calculators do you own? - Two, maybe. 295 00:20:09,291 --> 00:20:11,954 Right, and do you use the automatic bank-telling machines? 296 00:20:12,086 --> 00:20:14,373 - Sure. - Life is already seducing you 297 00:20:14,630 --> 00:20:17,748 into learning this stuff. It's not going to happen at once, 298 00:20:17,883 --> 00:20:21,297 and it's certainly not a 1984-ish vision at all. 299 00:20:21,470 --> 00:20:24,178 It's just going to be very gradual and very human 300 00:20:24,306 --> 00:20:26,798 and will seduce you into learning how to use it. 301 00:20:28,978 --> 00:20:31,971 Transitioning from a hobby to a personal computer, 302 00:20:32,106 --> 00:20:34,769 that whole idea was driven by Steve. 303 00:20:34,900 --> 00:20:37,108 He was trying to say we need to differentiate ourselves 304 00:20:37,236 --> 00:20:38,898 and really move out of this hobbyist realm. 305 00:20:39,029 --> 00:20:41,897 It ended up coming out of the room saying, 306 00:20:42,032 --> 00:20:44,820 "We're going to call ourselves the personal computer." 307 00:20:44,952 --> 00:20:46,568 Industry experts say 308 00:20:46,704 --> 00:20:49,822 we're no longer on the verge of the personal computer revolution. 309 00:20:49,999 --> 00:20:51,535 We're right in the midst of it, thank you. 310 00:20:51,667 --> 00:20:52,874 And it's gathering steam 311 00:20:53,002 --> 00:20:56,245 with more and more people jumping aboard every day. 312 00:20:56,380 --> 00:21:00,044 I use my computer right now for mostly word processing. 313 00:21:00,176 --> 00:21:03,886 I use it for solar evaluation programs. 314 00:21:04,013 --> 00:21:06,130 We put our entire accounting system on it. 315 00:21:06,265 --> 00:21:08,052 The wife can use it to store recipes. 316 00:21:08,184 --> 00:21:09,595 To balance my checkbook for me. 317 00:21:09,769 --> 00:21:11,385 We do the computer club's bulletin. 318 00:21:11,562 --> 00:21:13,144 - Playing games. - Shopping by mail. 319 00:21:13,272 --> 00:21:15,559 - Budgeting. - Bowling-league type scores. 320 00:21:15,691 --> 00:21:18,149 - Electronic mail. - A guy can be creative on it. 321 00:21:18,277 --> 00:21:20,519 I mean, he can use it for whatever he can dream up. 322 00:21:20,654 --> 00:21:22,611 This is a 21st-century bicycle 323 00:21:22,740 --> 00:21:26,609 that amplifies a certain intellectual ability that man has. 324 00:21:26,744 --> 00:21:29,578 The effects that it's going to have on society 325 00:21:29,705 --> 00:21:31,287 are actually going to far outstrip 326 00:21:31,415 --> 00:21:34,032 even those that the petrochemical revolution has had. 327 00:21:34,168 --> 00:21:35,168 Time magazine, I think, 328 00:21:35,294 --> 00:21:39,664 said single-handedly he created the industry because he was relentless. 329 00:21:41,133 --> 00:21:44,592 The powers that be of "Time" magazine 330 00:21:44,720 --> 00:21:50,182 decided that they would make the Man of the Year that particular year 331 00:21:50,309 --> 00:21:52,551 the Computer of the Year. 332 00:21:52,686 --> 00:21:56,054 I was transferred to the bureau in San Francisco. 333 00:21:56,190 --> 00:21:59,354 And gradually I began to cotton on to the fact 334 00:21:59,485 --> 00:22:04,025 that there were a lot of stories in this part of California 335 00:22:04,156 --> 00:22:08,196 between San Jose and San Francisco 336 00:22:08,327 --> 00:22:09,943 about these odd, little companies 337 00:22:10,079 --> 00:22:13,072 that people on the East Coast at that point 338 00:22:13,207 --> 00:22:16,666 hadn't heard about and really didn't care about. 339 00:22:16,794 --> 00:22:18,877 And then I got very interested in Apple 340 00:22:19,004 --> 00:22:23,715 and Steve was, of the early characters in the company, 341 00:22:23,926 --> 00:22:28,967 the most articulate and the most interesting and the oddest. 342 00:22:29,098 --> 00:22:33,012 Steven Jobs helped build the first Apple computer in his garage. 343 00:22:33,143 --> 00:22:36,181 He is now 26 years old and is chairman of the board. 344 00:22:37,314 --> 00:22:38,725 There was some debate 345 00:22:38,858 --> 00:22:40,975 over whether or not they should use the name "Apple." 346 00:22:41,110 --> 00:22:43,944 You know, the whole model of the computer industry 347 00:22:44,071 --> 00:22:45,733 and the computer business was IBM. 348 00:22:45,865 --> 00:22:50,656 Another business service of tomorrow made possible today by IBM. 349 00:22:50,786 --> 00:22:53,403 IBM was an anonymous organization. 350 00:22:53,539 --> 00:22:56,703 No one knew who the president was. They probably had no idea. 351 00:22:56,834 --> 00:23:02,000 The IBM logo looked like it was carved out of Roman marble, you know? 352 00:23:02,131 --> 00:23:04,839 It was just this monolithic kind of thing. 353 00:23:04,967 --> 00:23:07,835 And we took just the opposite, which was, 354 00:23:07,970 --> 00:23:11,259 "Let's make Steve very high profile. Let's tell our story." 355 00:23:11,390 --> 00:23:14,224 Working in this garage, Jobs and a high-school classmate 356 00:23:14,351 --> 00:23:16,684 quit their positions at large electronic companies, 357 00:23:16,812 --> 00:23:21,432 and using tiny silicon chips, built this small computer board. 358 00:23:26,780 --> 00:23:31,400 Funny, the garage story was less of a feature in those early days. 359 00:23:31,577 --> 00:23:34,115 It later on became more of a look back 360 00:23:34,246 --> 00:23:39,037 when people started doing stories on the background, and so forth. 361 00:23:39,168 --> 00:23:45,165 You know, I told Steve this, and most of my clients in fact, 362 00:23:45,299 --> 00:23:49,168 there's a song in Fiddler on the Roof that Tevye sings. 363 00:23:49,303 --> 00:23:53,673 He says, "If I were a rich man." And he said, "I'd sit in the temple, 364 00:23:53,807 --> 00:23:56,891 and I'd lecture to the wise men all day long, 365 00:23:57,019 --> 00:23:58,976 "and it wouldn't matter if you're right or wrong." 366 00:23:59,104 --> 00:24:00,766 "When you're rich, they think you know." 367 00:24:00,898 --> 00:24:02,514 So, in a technology business, 368 00:24:02,691 --> 00:24:06,526 you have to show that you are successful in order to have a platform. 369 00:24:06,695 --> 00:24:09,233 It led to a quarter-billion-dollar business 370 00:24:09,365 --> 00:24:13,325 and the most popular typewriter-sized computer on the market today. 371 00:24:13,452 --> 00:24:16,240 Steve Jobs, I realize this is your baby, 372 00:24:16,413 --> 00:24:17,949 and you've made a career out of it, 373 00:24:18,082 --> 00:24:20,540 but you're also something of a philosopher. 374 00:24:20,709 --> 00:24:24,794 Do you see the inherent possibility of bad coming out of all of this? 375 00:24:24,922 --> 00:24:27,255 Well, I think one of the things you really have to look at 376 00:24:27,383 --> 00:24:30,091 is you have to go watch some kids using these things. 377 00:24:30,219 --> 00:24:33,383 And what you find is far from something quite harmful. 378 00:24:33,514 --> 00:24:35,005 In effect, what you see 379 00:24:35,182 --> 00:24:38,971 is an instantaneous reflection of a part of themselves, 380 00:24:39,103 --> 00:24:41,561 the creative part of themselves being expressed. 381 00:24:49,530 --> 00:24:51,988 He was going for a computer 382 00:24:52,116 --> 00:24:56,235 that really felt like an extension of the self. 383 00:24:56,370 --> 00:25:00,284 That's what people wanted, and I think he sensed that. He knew that. 384 00:25:01,417 --> 00:25:05,832 My first book on the computer culture was called "The Second Self." 385 00:25:05,963 --> 00:25:07,920 The key quote that gave me the title was, 386 00:25:08,048 --> 00:25:10,631 "When you think of a computer," 387 00:25:10,801 --> 00:25:14,841 you put a little piece of your mind into the computer's mind, 388 00:25:14,972 --> 00:25:17,259 "and you come to think of yourself differently." 389 00:25:17,391 --> 00:25:23,012 Our whole company, our whole philosophical base, 390 00:25:23,188 --> 00:25:27,273 is founded on one principle. And that one principle 391 00:25:27,401 --> 00:25:32,271 is that there's something very special and very historically different 392 00:25:32,406 --> 00:25:36,867 that takes place when you have one computer and one person. 393 00:25:38,370 --> 00:25:40,703 Did you have an opportunity to meet Jobs? 394 00:25:40,914 --> 00:25:43,156 Yes, I met him on several occasions. 395 00:25:43,292 --> 00:25:45,284 And did you sense from talking to him 396 00:25:45,419 --> 00:25:47,502 that he really did understand what he was doing? 397 00:25:47,629 --> 00:25:49,791 I think he understood what he was doing. 398 00:25:51,008 --> 00:25:54,297 He knew he had created something intimate 399 00:25:54,511 --> 00:25:57,504 and that could be sold as something intimate. 400 00:25:57,639 --> 00:26:00,222 And it would be you. I mean, it would be for you. 401 00:26:00,350 --> 00:26:04,469 It wasn't just for you. It was you. 402 00:26:10,486 --> 00:26:12,728 Can you just show me the front of it? 403 00:26:12,905 --> 00:26:15,693 That's the part that most people would recognize. 404 00:26:15,824 --> 00:26:19,568 This is a piece that everybody remembers from the ads, 405 00:26:19,703 --> 00:26:23,322 from the Time magazine cover with Steve holding it in his lap. 406 00:26:26,168 --> 00:26:29,411 And this is the famous beige that we're never going to have any more of. 407 00:26:29,546 --> 00:26:31,208 He hated this even at this time, 408 00:26:31,340 --> 00:26:34,708 but we were kind of stuck with it by the time we got there. 409 00:26:37,638 --> 00:26:40,176 It was a fun little machine. 410 00:26:44,603 --> 00:26:48,187 He called me just out of the blue. I was working at Xerox. 411 00:26:49,358 --> 00:26:52,317 And I picked up the phone, and it was Steve Jobs. 412 00:26:52,444 --> 00:26:55,937 And he said, "I hear you're a good guy", 413 00:26:56,073 --> 00:26:59,487 but everything you've done so far is crap. Come work for me." 414 00:27:00,869 --> 00:27:05,113 I told my wife at the time. I said, "Well, what could happen?" 415 00:27:05,249 --> 00:27:06,911 "How bad could this be?" 416 00:27:09,128 --> 00:27:11,370 I didn't realize how bad it could be. 417 00:27:15,092 --> 00:27:17,254 First trip Steve ever made to Japan 418 00:27:17,386 --> 00:27:20,424 was to see what we could do about getting a disc drive for the machine. 419 00:27:20,556 --> 00:27:25,517 And we saw the Sony disc facility in Atsugi, Japan. 420 00:27:25,644 --> 00:27:30,810 He had a lot of affection for Sony because the Walkman was a machine 421 00:27:30,983 --> 00:27:33,020 that he just thought was the bee's knees. 422 00:27:33,152 --> 00:27:36,065 ♪ You really feel the music with a Sony Walkman 423 00:27:36,196 --> 00:27:39,564 The Sony Walkman is a tiny stereo cassette player 424 00:27:39,741 --> 00:27:42,154 with truly incredible sound. 425 00:27:42,286 --> 00:27:44,744 ♪ You really feel the music You really feel it 426 00:27:44,955 --> 00:27:47,368 I think it was the first product in human history 427 00:27:47,499 --> 00:27:50,742 that went over a billion units. That he liked. 428 00:27:51,795 --> 00:27:54,333 One of things that Steve thought was important, 429 00:27:54,464 --> 00:27:56,126 and Jerry Manock facilitated it, 430 00:27:56,258 --> 00:27:58,671 was this is where all the signatures are. 431 00:27:58,802 --> 00:28:02,295 And they're all the people, the original group, 432 00:28:02,431 --> 00:28:08,974 that actually signed the machine. There's Steve Jobs right in the middle. 433 00:28:10,105 --> 00:28:11,937 My name is over here. 434 00:28:12,107 --> 00:28:13,598 Why did you do that? 435 00:28:13,734 --> 00:28:17,569 Because the people that worked on it consider themselves, 436 00:28:17,696 --> 00:28:20,154 and I certainly consider them, artists. 437 00:28:20,282 --> 00:28:22,649 These are the people that under different circumstances 438 00:28:22,784 --> 00:28:26,994 would be painters and poets, but, because of the time that we live in, 439 00:28:27,122 --> 00:28:29,239 this new medium has appeared 440 00:28:29,374 --> 00:28:32,538 in which to express oneself to one's fellow species. 441 00:28:32,669 --> 00:28:36,037 And that's a medium of computing. 442 00:28:41,595 --> 00:28:45,214 We would sit in the temples in Kyoto, 443 00:28:45,349 --> 00:28:49,719 just taking off our shoes at the door and sitting. 444 00:29:03,659 --> 00:29:07,323 Did he take from that any kind of aesthetic vision, do you think? 445 00:29:07,454 --> 00:29:11,573 I think certainly. A simplicity. 446 00:29:13,085 --> 00:29:16,044 Just feeling that inner calm 447 00:29:16,171 --> 00:29:20,290 that's so available at some places in Japan. 448 00:29:22,386 --> 00:29:25,925 He was a very much a person who was comfortable in silence. 449 00:29:36,066 --> 00:29:40,777 Steve ruled by a kind of a chaos. And it's easy to make chaos, 450 00:29:40,904 --> 00:29:44,818 and if you're comfortable with it, you can use it as a tool. 451 00:29:44,950 --> 00:29:48,114 And he used a vast number of really irritating tools 452 00:29:48,245 --> 00:29:52,615 to get other people involved in his schemes. 453 00:29:52,749 --> 00:29:59,747 He's seducing you, he's vilifying you and he's ignoring you. 454 00:29:59,881 --> 00:30:01,588 You're in one of those three states. 455 00:30:03,927 --> 00:30:07,967 When you get a core group of, you know, ten great people, 456 00:30:08,140 --> 00:30:12,601 it becomes self-policing as to who they let into that group. 457 00:30:12,728 --> 00:30:18,144 So, I consider the most important job of someone like myself is recruiting. 458 00:30:18,358 --> 00:30:21,851 Steve Jobs brought us all together in a place that had no rules. 459 00:30:21,987 --> 00:30:26,448 He's a maniac. He's a maniacal genius. His job is to stir up everything. 460 00:30:26,575 --> 00:30:29,909 Most places in life are continuously telling you 461 00:30:30,078 --> 00:30:32,286 that your dreams aren't possible or practical. 462 00:30:32,414 --> 00:30:34,451 You don't want to hear that when you're under 30. 463 00:30:34,583 --> 00:30:36,245 What you want to do is race after them. 464 00:30:36,376 --> 00:30:37,867 You ask yourself, why are you doing it? 465 00:30:38,086 --> 00:30:39,873 I'm certainly not doing it for Steve Jobs. 466 00:30:40,005 --> 00:30:42,588 I'm doing it for what I think is a much greater good than that. 467 00:30:42,716 --> 00:30:45,959 Everybody just wanted to work, not because it was work that had to be done, 468 00:30:46,136 --> 00:30:48,503 but it was because it was something that we really believed in. 469 00:30:48,638 --> 00:30:54,134 Here is how we see personal computers. Here is how we want the world to be. 470 00:30:54,269 --> 00:30:56,761 And here's how we're going to change it. 471 00:30:56,897 --> 00:30:58,479 We have a vision of what we want it to be. 472 00:30:58,607 --> 00:31:00,974 We want to convert people. We want to make converts. 473 00:31:01,151 --> 00:31:04,144 I felt my job at Macintosh 474 00:31:04,279 --> 00:31:07,738 was to make the division work smoothly enough 475 00:31:07,866 --> 00:31:11,701 that we could actually get this thing from really a mess of kids 476 00:31:11,828 --> 00:31:14,536 playing around with a bunch of hardware and software 477 00:31:14,664 --> 00:31:17,327 into something that would be a commercial product. 478 00:31:17,459 --> 00:31:20,122 And that's what I did. I got that machine finished. 479 00:31:29,012 --> 00:31:32,505 It is now 1984. 480 00:31:32,641 --> 00:31:35,475 IBM became the apparent visible threat. 481 00:31:35,602 --> 00:31:38,561 IBM wants it all, and is aiming its guns 482 00:31:38,688 --> 00:31:43,023 on its last obstacle to industry control. Apple. 483 00:31:43,151 --> 00:31:46,485 Will Big Blue dominate the entire computer industry? 484 00:31:46,613 --> 00:31:50,448 The entire information age? Was George Orwell right? 485 00:31:51,618 --> 00:31:55,453 Today, we celebrate the first glorious anniversary 486 00:31:55,580 --> 00:31:58,448 over the information purification directives. 487 00:31:58,583 --> 00:32:01,542 That ad was again a juxtaposition with IBM. 488 00:32:01,670 --> 00:32:03,627 - That's what it was about. - Yeah. 489 00:32:03,755 --> 00:32:06,213 The people in the audience were mindless IBM users. 490 00:32:06,341 --> 00:32:08,207 Yes. You know, for Steve it was great 491 00:32:08,343 --> 00:32:12,587 because he had this bad guy/good guy, and he loved playing that role. 492 00:32:12,722 --> 00:32:16,636 We shall prevail! 493 00:32:37,247 --> 00:32:38,863 Looking back, behind the scenes, 494 00:32:39,082 --> 00:32:42,496 it's easy to see the irony in the ad. 495 00:32:42,627 --> 00:32:44,539 Today, Apple is Goliath. 496 00:32:44,671 --> 00:32:46,128 Rolling. Rolling. 497 00:32:46,339 --> 00:32:48,205 But even in 1984, 498 00:32:48,383 --> 00:32:51,126 when Apple cast itself as the counterculture company, 499 00:32:51,303 --> 00:32:54,762 working at Apple was a lot tougher than IBM. 500 00:32:56,850 --> 00:32:59,012 I think if you talk to a lot of people on the Mac team, 501 00:32:59,144 --> 00:33:05,141 they will tell you it was the hardest they've ever worked in their life. 502 00:33:05,317 --> 00:33:07,024 Some of them will tell you it was, you know, 503 00:33:07,277 --> 00:33:08,984 the happiest they've ever been in their life, 504 00:33:09,112 --> 00:33:11,024 but I think all of them will tell you 505 00:33:11,156 --> 00:33:14,490 that it is certainly one of the most intense and cherished experiences 506 00:33:14,618 --> 00:33:15,984 they will ever have in their life. 507 00:33:16,119 --> 00:33:18,953 - Mm-hmm. Yeah, they did. - So... 508 00:33:21,750 --> 00:33:23,742 You know... 509 00:33:25,420 --> 00:33:29,960 Some of those things are not sustainable for some people. 510 00:33:35,764 --> 00:33:38,347 I ended up changing my entire life. 511 00:33:38,558 --> 00:33:40,766 I lost my wife in that process. 512 00:33:40,894 --> 00:33:44,558 I lost my children in that process. I lost... 513 00:33:44,731 --> 00:33:48,441 The whole structure of my life was just changed forever 514 00:33:48,568 --> 00:33:52,562 by going and working on the Mac. 515 00:33:52,697 --> 00:33:54,780 Because the work became so intense? 516 00:33:54,908 --> 00:33:56,365 The work was intense. 517 00:33:56,493 --> 00:33:58,530 The commitment needed to do it was intense. 518 00:33:58,662 --> 00:34:01,655 I would go into work on a Tuesday morning 519 00:34:01,790 --> 00:34:03,656 and half the people would hate me, 520 00:34:03,792 --> 00:34:05,408 and I'd come back on Wednesday morning, 521 00:34:05,585 --> 00:34:08,168 and half the people would hate me, but it was the other half. 522 00:34:08,338 --> 00:34:10,751 There were an awful lot of prima donnas in that outfit, 523 00:34:10,882 --> 00:34:13,590 so I was always in conflict. 524 00:34:16,805 --> 00:34:20,515 Here's the piece you wrote. You want to read it? 525 00:34:21,851 --> 00:34:26,391 "Steve's passing did come as a bit of a shock for me." 526 00:34:26,523 --> 00:34:31,393 "For a bit more than three years, 1982 to 1985, 527 00:34:31,528 --> 00:34:34,236 we were together a lot of the time." 528 00:34:34,406 --> 00:34:38,491 "We made a dozen trips to Japan together. We were close." 529 00:34:38,618 --> 00:34:41,656 "After that, I only saw him a few times." 530 00:34:41,788 --> 00:34:44,155 "I haven't seen him in many years." 531 00:34:44,332 --> 00:34:48,667 "He was an extraordinary person in many ways and quite normal in others." 532 00:34:48,795 --> 00:34:52,254 "The outpouring of feelings from people all over the world 533 00:34:52,465 --> 00:34:57,130 was a bit of a surprise to me at first, and then it seemed natural." 534 00:34:57,262 --> 00:35:00,050 "He was for them a combination of James Dean, 535 00:35:00,181 --> 00:35:04,050 Princess Diana and John Lennon and maybe Santa Claus." 536 00:35:04,185 --> 00:35:07,849 "What is in that bag of goodies?" 537 00:35:08,773 --> 00:35:12,642 "The iPod, the iPhone and the iPad are so personal." 538 00:35:12,777 --> 00:35:17,772 "They are warm in your hand. They sing to you when you're alone." 539 00:35:17,907 --> 00:35:19,364 "They are caressed." 540 00:35:21,870 --> 00:35:23,156 "In those three years together, 541 00:35:23,288 --> 00:35:26,247 I packed in a decade or two of experience." 542 00:35:26,416 --> 00:35:31,787 "Steve packed in a couple of centuries in his 56 years." 543 00:35:31,921 --> 00:35:36,461 "He did everything he wanted, and all on his own terms." 544 00:35:36,593 --> 00:35:39,461 "It was a life well and fully lived, 545 00:35:39,596 --> 00:35:43,055 even if it was a bit expensive for those of us who were close." 546 00:35:47,604 --> 00:35:50,062 You do have friends, you know? 547 00:35:50,190 --> 00:35:53,308 Even if they're bizarre people. 548 00:35:55,612 --> 00:35:58,480 Yes. He is. He's one of those mythic characters. 549 00:35:58,615 --> 00:36:05,658 Yeah, and they're not that much fun on the ground most of the time, 550 00:36:05,789 --> 00:36:09,328 but there are those moments when suddenly... 551 00:36:11,086 --> 00:36:13,703 They're the only person who could've ever done it. 552 00:36:13,922 --> 00:36:15,288 Right. 553 00:36:15,465 --> 00:36:19,084 - Yeah, and they change us. - Right. 554 00:36:32,440 --> 00:36:35,774 Without death, there would be very little progress. 555 00:36:35,902 --> 00:36:39,316 I'm sure that life evolved without death at first 556 00:36:39,489 --> 00:36:44,826 and found that without death, life didn't work very well. 557 00:36:44,953 --> 00:36:48,321 Because it didn't make room for the young 558 00:36:48,498 --> 00:36:52,913 who didn't know how the world was, you know, 50 years ago, 559 00:36:53,044 --> 00:36:56,754 but who saw it as it is today without any preconceptions 560 00:36:56,881 --> 00:36:59,248 and dreamed how it could be based on that. 561 00:37:04,097 --> 00:37:07,181 The minute that you understand that you can poke life, 562 00:37:07,308 --> 00:37:09,140 you can change it, you can mold it, 563 00:37:09,269 --> 00:37:11,886 you'll want to change life and make it better 564 00:37:12,021 --> 00:37:14,013 cos it's kind of messed up in a lot of ways. 565 00:37:15,150 --> 00:37:18,234 Once you learn that, you'll never be the same again. 566 00:37:23,783 --> 00:37:24,990 Just be here. 567 00:37:25,994 --> 00:37:30,955 Don't judge, don't try, don't stop, don't start. Just be here. 568 00:37:31,082 --> 00:37:32,698 It's all just enough. 569 00:37:36,629 --> 00:37:38,996 It's enough to know that I love you. 570 00:37:42,677 --> 00:37:47,297 Steve and I met two weeks into our freshman year at Reed College. 571 00:37:47,432 --> 00:37:51,642 We had both happened to buy "Be Here Now." 572 00:37:51,811 --> 00:37:55,725 And it was such an unusual book. I just wanted... 573 00:37:55,857 --> 00:37:58,975 I was carrying it around and wanted somebody to talk to about it, 574 00:37:59,110 --> 00:38:02,353 and Steve was the one person who also had read it. 575 00:38:09,829 --> 00:38:11,286 When we went to India, 576 00:38:11,414 --> 00:38:15,909 we were looking for remarkable experiences. 577 00:38:16,044 --> 00:38:19,583 We didn't have a guru. We didn't have a particular school. 578 00:38:19,714 --> 00:38:22,832 And so we traveled around for four months. 579 00:38:22,967 --> 00:38:29,931 Had some interesting experiences. No major enlightenment experiences. 580 00:38:30,058 --> 00:38:32,425 Steve's quote later was, 581 00:38:32,602 --> 00:38:35,094 "We had figured out that we weren't going to meet somebody 582 00:38:35,230 --> 00:38:37,438 who was going to make us enlightened." 583 00:38:40,193 --> 00:38:42,401 If you think about Hindu spirituality, 584 00:38:42,570 --> 00:38:46,439 you think of Mother Teresa feeding the poor. 585 00:38:46,616 --> 00:38:49,950 That's not really the path that Steve took. 586 00:38:50,078 --> 00:38:52,741 Those weren't Steve's values. 587 00:38:55,708 --> 00:38:57,825 It was the next year, after India, 588 00:38:57,961 --> 00:39:02,001 when he connected with the Zen Center in Los Altos. 589 00:39:02,131 --> 00:39:08,594 Zen is about clarity, simplicity, cleanliness. 590 00:39:09,472 --> 00:39:15,264 Ending the duality of your ego and simplifying your life. 591 00:39:15,395 --> 00:39:18,479 And that really appealed to Steve. 592 00:39:18,648 --> 00:39:23,313 It's based on taking off and creating something for yourself. 593 00:39:23,444 --> 00:39:27,438 You know, giving life to your own life in whatever way you wish to do it. 594 00:39:28,908 --> 00:39:30,991 At the time he was starting Apple, 595 00:39:31,119 --> 00:39:34,908 Steve was very actively looking for a mentor. 596 00:39:39,419 --> 00:39:43,208 Kobun Chino would become Jobs's spiritual advisor. 597 00:39:43,381 --> 00:39:47,716 Kobun encouraged Jobs not to retreat into a monastery, 598 00:39:47,844 --> 00:39:51,554 but instead to find Zen in his life and work. 599 00:39:51,764 --> 00:39:54,848 But they would argue over the path to enlightenment. 600 00:40:08,114 --> 00:40:14,907 Steve always says, "Make me monk. Please make me monk." 601 00:40:15,038 --> 00:40:18,327 I say, "Not until proof." 602 00:40:20,084 --> 00:40:26,046 When I was living in California, 23 years ago... 603 00:40:26,174 --> 00:40:27,961 Midnight... 604 00:40:28,092 --> 00:40:32,883 I answered the doorbell and there he is. 605 00:40:33,014 --> 00:40:36,052 18 years old, he was. 606 00:40:36,184 --> 00:40:39,427 And he wanted to see me. 607 00:40:40,480 --> 00:40:44,064 And I looked into his eyes, and... 608 00:40:44,192 --> 00:40:48,061 They looked terrible, but he is not crazy. 609 00:40:48,196 --> 00:40:51,405 I must talk with him. 610 00:40:51,532 --> 00:40:57,028 I took him for a walk through the downtown of Los Altos. 611 00:40:58,081 --> 00:41:00,198 All stores closed. 612 00:41:00,333 --> 00:41:06,295 One bar called The Teacup was open. 613 00:41:07,715 --> 00:41:10,833 We sat down at the counter. 614 00:41:12,470 --> 00:41:17,716 I had Irish coffee and he had juice. 615 00:41:18,977 --> 00:41:23,062 After sipping, he started to talk. 616 00:41:24,232 --> 00:41:29,444 He said, "I feel I'm enlightened." 617 00:41:29,570 --> 00:41:32,358 "I don't know what to do with this." 618 00:41:35,660 --> 00:41:41,122 That's wonderful. That is very wonderful. 619 00:41:43,126 --> 00:41:45,789 I need proof of it. 620 00:41:50,049 --> 00:41:53,588 A week later he came back 621 00:41:53,886 --> 00:41:59,098 with a little metal sheet in his hand. 622 00:42:00,268 --> 00:42:03,932 Many things were going, wires going around... 623 00:42:04,063 --> 00:42:06,680 I didn't know what it was. 624 00:42:07,316 --> 00:42:12,277 It was a chip of a personal computer. 625 00:42:14,032 --> 00:42:20,120 He said, "I designed it. My friend Woz helped me." 626 00:42:21,289 --> 00:42:26,501 "This is called Lisa." 627 00:42:26,627 --> 00:42:28,584 "I named it Lisa." 628 00:42:29,630 --> 00:42:34,842 Which is the name of his daughter. 629 00:42:36,262 --> 00:42:40,427 That was the origin of Apple Computer. 630 00:42:42,351 --> 00:42:49,315 And I'm still not quite sure that was a true proof or not. 631 00:42:49,442 --> 00:42:54,654 He's brilliant, but too smart, I think. 632 00:42:59,368 --> 00:43:03,908 When you broke the Lisa story, why was that important? 633 00:43:04,040 --> 00:43:07,454 There was a computer called "Lisa." 634 00:43:07,585 --> 00:43:12,705 And everybody wondered who the computer was named after. 635 00:43:14,550 --> 00:43:17,964 I didn't choose to name the computer "Lisa." 636 00:43:18,971 --> 00:43:22,430 I was obviously curious about why it was named "Lisa". 637 00:43:24,018 --> 00:43:26,852 Fair or unfair, I think that was, 638 00:43:26,979 --> 00:43:30,347 to me, that was a germane part of the story. 639 00:43:38,908 --> 00:43:43,243 ♪ With your mercury mouth 640 00:43:43,371 --> 00:43:47,581 ♪ In the missionary times 641 00:43:47,708 --> 00:43:51,167 ♪ And your eyes like smoke 642 00:43:51,295 --> 00:43:53,958 I was 17, sitting in the quad. 643 00:43:54,090 --> 00:43:57,800 Early spring, warm and cold at the same time. 644 00:43:57,969 --> 00:44:03,636 And I look over, and there's this guy I have never seen. 645 00:44:03,766 --> 00:44:09,683 I've been there for three years. I can't believe how gorgeous he is. 646 00:44:09,814 --> 00:44:16,152 And he starts to walk out of the quad, and I followed him 647 00:44:16,279 --> 00:44:19,693 cos I thought, "I've got to introduce myself to him." 648 00:44:20,825 --> 00:44:24,990 And I'm going, "What do I say?" I had no idea what to say. 649 00:44:25,121 --> 00:44:28,330 A few months later, I was working on a film. 650 00:44:28,457 --> 00:44:33,953 We worked all night long, and he walks up out of the dark. 651 00:44:34,088 --> 00:44:38,628 He was confident and awkward. He was a study in contrasts. 652 00:44:38,759 --> 00:44:44,801 And he had jeans on that drooped because they had so many holes in them. 653 00:44:44,974 --> 00:44:48,263 And he was very intentional, very intense. 654 00:44:48,394 --> 00:44:53,981 And then he handed me a poem by Bob Dylan. 655 00:44:54,150 --> 00:44:56,437 "Sad-Eyed Lady of the Lowlands." 656 00:44:59,071 --> 00:45:02,781 He would re-write Dylan's songs to fit his life. 657 00:45:05,077 --> 00:45:09,492 And then he... he just scanned the quad 658 00:45:09,624 --> 00:45:13,493 and the darkness that went over his face... 659 00:45:14,754 --> 00:45:21,672 The edge, the worry, the dissonance, was shocking to me. 660 00:45:21,802 --> 00:45:25,546 And I was young enough where I thought, "Did I say something wrong?" 661 00:45:25,681 --> 00:45:28,344 But later I realized that wasn't what it was. 662 00:45:28,476 --> 00:45:30,468 That was part of who he was. 663 00:45:30,603 --> 00:45:33,266 And I mean, that was one of the things that I was attracted to, 664 00:45:33,397 --> 00:45:36,265 is that he had a lot going on inside him. 665 00:45:39,737 --> 00:45:43,822 Steve was a romantic, and he really loved Chrisann. 666 00:45:43,991 --> 00:45:47,325 I think she was a seductive force in his life, 667 00:45:47,453 --> 00:45:53,996 and there was a part of Steve that didn't want to push that away. 668 00:45:54,126 --> 00:45:56,413 But the main thing in Steve's life, number one, 669 00:45:56,545 --> 00:46:00,084 was getting Apple off the ground. 670 00:46:00,216 --> 00:46:03,675 And he just really could not focus on anything else. 671 00:46:05,221 --> 00:46:08,259 I came out in June of '77, 672 00:46:08,391 --> 00:46:13,511 and the three of us went and rented a house in Cupertino. 673 00:46:15,273 --> 00:46:19,392 Apple is beginning. Steve and I are falling in love again. 674 00:46:19,527 --> 00:46:22,144 But we're going back and forth big time now. 675 00:46:22,280 --> 00:46:26,615 It's just like I'm insecure because he's so unkind, 676 00:46:26,742 --> 00:46:30,156 and then we connect. 677 00:46:32,540 --> 00:46:36,033 But I don't know how to handle how fast Steve's mind is 678 00:46:36,168 --> 00:46:39,286 and how fast he throws negative stuff at me. 679 00:46:39,463 --> 00:46:44,925 And by the time I figure out, "I've got to get out of here..." 680 00:46:46,220 --> 00:46:48,428 Um... 681 00:46:48,556 --> 00:46:51,469 "This is not working." 682 00:46:51,600 --> 00:46:57,562 Um... "I don't want to be in their club, Daniel's or just even with Steve." 683 00:46:57,690 --> 00:47:03,311 "It's just not working." That's when I got pregnant. 684 00:47:04,864 --> 00:47:07,857 What happened when you told Steve that you were pregnant? 685 00:47:09,368 --> 00:47:10,779 Um... 686 00:47:10,911 --> 00:47:13,574 I told Steve in the dining room. 687 00:47:13,831 --> 00:47:18,917 Steve's jaw clenched. 688 00:47:19,170 --> 00:47:22,914 And searing anger... 689 00:47:23,090 --> 00:47:26,128 And he runs out the door, kind of like a teenager, 690 00:47:26,260 --> 00:47:27,796 slams the door. 691 00:47:39,023 --> 00:47:41,265 She got pregnant. 692 00:47:41,400 --> 00:47:46,486 And Steve just was, "Not... not... not me." 693 00:47:46,614 --> 00:47:49,152 "It's not me. It's not me," right? 694 00:47:49,325 --> 00:47:53,945 Even though that was not a reasonable thing to say. 695 00:47:55,956 --> 00:47:59,449 After Lisa was born, Steve came up three days later. 696 00:47:59,585 --> 00:48:02,293 And we're sitting in a field, and he... 697 00:48:02,421 --> 00:48:05,414 We're like, trying to negotiate... 698 00:48:07,468 --> 00:48:10,802 what name we both feel good about for her. 699 00:48:10,930 --> 00:48:13,593 He knows he's the father. 700 00:48:15,184 --> 00:48:19,929 He comes with the idea of wanting to call her Claire, 701 00:48:20,064 --> 00:48:23,774 and I don't want Claire because it's too much like Clara, 702 00:48:23,901 --> 00:48:25,563 his mother's name. 703 00:48:25,694 --> 00:48:27,310 So, we're looking through the book, 704 00:48:27,446 --> 00:48:29,608 and we're thinking and going back and forth, 705 00:48:29,740 --> 00:48:32,323 trying different names, and finally I go, "Lisa!" 706 00:48:33,619 --> 00:48:37,954 He said, "Yeah!" We both loved that name. 707 00:48:38,082 --> 00:48:44,750 But later I realized he wanted to name a line of computers 708 00:48:44,880 --> 00:48:47,042 or the next computer the "Claire." 709 00:48:47,216 --> 00:48:50,550 I only knew this later. 710 00:48:50,678 --> 00:48:55,890 He went back to Apple and changed it to the "Lisa." 711 00:49:01,814 --> 00:49:04,852 It says a lot about somebody 712 00:49:04,984 --> 00:49:11,948 that they would have the wit, the imagination, the audacity, 713 00:49:12,074 --> 00:49:16,990 to name a computer in the fashion that Steve named this 714 00:49:17,121 --> 00:49:22,992 and believe that you're going to be able to get away with it. 715 00:49:25,504 --> 00:49:29,498 That is the sort of very telling anecdote 716 00:49:29,633 --> 00:49:33,468 that helps illuminate somebody's personality. 717 00:49:41,520 --> 00:49:45,480 My biological mother was a young, unwed graduate student, 718 00:49:45,608 --> 00:49:48,476 and she decided to put me up for adoption. 719 00:49:48,611 --> 00:49:50,318 So, everything was all set 720 00:49:50,446 --> 00:49:53,939 for me to be adopted at birth by a lawyer and his wife. 721 00:49:54,074 --> 00:49:56,066 Except that when I popped out, 722 00:49:56,243 --> 00:50:00,078 they decided at the last minute that they really wanted a girl. 723 00:50:00,247 --> 00:50:02,660 So, my parents, who were on a waiting list, 724 00:50:02,833 --> 00:50:05,746 got a call in the middle of the night, asking, 725 00:50:05,961 --> 00:50:09,830 "We've got an unexpected baby boy. Do you want him?" 726 00:50:09,965 --> 00:50:12,298 They said, "Of course." 727 00:50:13,302 --> 00:50:15,635 My biological mother found out later 728 00:50:15,763 --> 00:50:18,346 that my mother had never graduated from college 729 00:50:18,516 --> 00:50:21,475 and that my father had never graduated from high school. 730 00:50:21,644 --> 00:50:25,729 She refused to sign the final adoption papers. 731 00:50:25,856 --> 00:50:27,722 She only relented a few months later 732 00:50:27,858 --> 00:50:31,818 when my parents promised that I would go to college. 733 00:50:32,029 --> 00:50:34,817 This was the start in my life. 734 00:50:38,035 --> 00:50:41,779 You know, another paradox for him, you know, here's a guy, 735 00:50:41,914 --> 00:50:44,657 you know, being pissed off that he was left for adoption, 736 00:50:44,792 --> 00:50:47,626 and when he has a child, he wants to run the other way. 737 00:50:47,753 --> 00:50:50,211 Yes, that's a huge paradox. 738 00:50:50,381 --> 00:50:55,593 Even when I first met Steve, the fact that he was given up for adoption 739 00:50:55,719 --> 00:51:01,681 was a huge emotional issue in his life. 740 00:51:01,809 --> 00:51:05,598 I was, I remember, right here on the lawn 741 00:51:05,729 --> 00:51:09,939 telling Lisa McMoyler, who lived across the street, that I was adopted, 742 00:51:10,067 --> 00:51:14,107 and she said, "So, does that mean your real parents didn't want you?" 743 00:51:14,238 --> 00:51:17,106 Ooh, lightening bolt. I remember running into the house. 744 00:51:17,241 --> 00:51:21,326 I think I started crying, asking my parents, and they sat me down. 745 00:51:21,453 --> 00:51:23,365 They said, "No, you don't understand." 746 00:51:23,497 --> 00:51:26,615 They said, "We specifically picked you." 747 00:51:29,086 --> 00:51:33,330 That was clearly a very defining image in his life, 748 00:51:33,507 --> 00:51:36,750 both that he was rejected and that he was special. 749 00:51:39,680 --> 00:51:41,763 The IPO was November 1980. 750 00:51:41,890 --> 00:51:45,258 By the summer of 1980, it was clear it was going to happen, 751 00:51:45,394 --> 00:51:48,478 and so Steve's net worth was going to go from $10 million 752 00:51:48,606 --> 00:51:51,223 to around $200 million. 753 00:51:51,400 --> 00:51:56,646 And I think he had the opportunity to completely reinvent himself. 754 00:51:57,865 --> 00:52:02,155 In his reinvention, some people who helped him were left behind. 755 00:52:03,120 --> 00:52:04,952 Woz had no taste for management, 756 00:52:05,080 --> 00:52:09,245 so he left Apple with a big stock package and a lifetime stipend. 757 00:52:10,169 --> 00:52:14,459 Daniel Kottke had been one of Apple's first employees. 758 00:52:14,590 --> 00:52:17,458 In the run-up to the IPO, an Apple executive offered 759 00:52:17,593 --> 00:52:20,552 to give Daniel the same amount of stock that Steve would give. 760 00:52:20,679 --> 00:52:24,889 Steve replied, "Fine. I'll give him zero." 761 00:52:29,063 --> 00:52:33,433 Jobs also saw an opportunity to rewrite his history with Chrisann. 762 00:52:33,567 --> 00:52:38,187 He composed a fiction which implied she had many sexual partners, 763 00:52:38,322 --> 00:52:40,279 and he claimed he was sterile 764 00:52:40,449 --> 00:52:45,160 and therefore did not have the physical capacity to procreate a child. 765 00:52:48,666 --> 00:52:53,161 A woman with a baby, and I was that threatening to them. 766 00:52:53,295 --> 00:52:56,629 "If he'd said," I can't do this, but let me help 767 00:52:56,757 --> 00:52:59,875 because I can be practical here," 768 00:53:00,010 --> 00:53:02,002 that would have been... 769 00:53:02,179 --> 00:53:04,762 made for so much. 770 00:53:04,890 --> 00:53:09,100 But it almost seemed that the point was to be out of integrity. 771 00:53:10,562 --> 00:53:14,272 When a court-ordered DNA test proved Jobs's paternity, 772 00:53:14,441 --> 00:53:17,684 he stopped fighting Chrisann in court. 773 00:53:17,861 --> 00:53:19,693 She was on welfare at the time, 774 00:53:19,863 --> 00:53:24,949 so Jobs reluctantly agreed to pay $500 a month in child support. 775 00:53:26,453 --> 00:53:30,823 When Apple went public, he was worth nearly $200 million. 776 00:53:30,958 --> 00:53:33,701 Steve is so hugely successful, 777 00:53:33,836 --> 00:53:37,500 and yet he treated so many people so badly. 778 00:53:37,673 --> 00:53:41,917 How much of an asshole do you have to be to be successful? 779 00:53:42,052 --> 00:53:44,009 What is the moral of the story here? 780 00:53:44,138 --> 00:53:46,380 Hello. I am Macintosh. 781 00:53:46,557 --> 00:53:50,267 It is with considerable pride that I introduce a man 782 00:53:50,394 --> 00:53:53,683 who's been like a father to me. Steve Jobs. 783 00:54:14,668 --> 00:54:17,536 He didn't know what real connection was. 784 00:54:19,173 --> 00:54:24,259 So he was a part of the technology that connected the world. 785 00:54:25,179 --> 00:54:27,045 Does that make sense? 786 00:54:29,016 --> 00:54:32,726 He made up another kind of connection. 787 00:54:39,026 --> 00:54:41,063 You know, I didn't sleep a wink last night. 788 00:54:41,236 --> 00:54:47,403 There's a version of Steve Jobs presenting the iPhone 789 00:54:47,576 --> 00:54:52,913 where you can see his own feeling of "I love this object." 790 00:54:53,040 --> 00:54:54,622 Isn't this awesome? 791 00:54:54,833 --> 00:55:01,421 His stuff was beloved, but it wasn't that he was beloved. 792 00:55:01,590 --> 00:55:03,798 He wasn't a nice guy. 793 00:55:03,926 --> 00:55:06,509 First, he had a reputation as a womanizer, 794 00:55:06,637 --> 00:55:07,923 and then he had a reputation 795 00:55:08,055 --> 00:55:13,050 as sort of not caring about anybody and as being kind of a tough guy. 796 00:55:14,144 --> 00:55:19,105 People are not connected to him because of his character. 797 00:55:19,233 --> 00:55:22,067 That is not people's connection to him. 798 00:55:22,194 --> 00:55:25,938 In Be Here Now by Ram Dass, 799 00:55:26,073 --> 00:55:30,317 one of the memories I still have after all these years 800 00:55:30,452 --> 00:55:34,742 was when someone goes into a state of enlightenment... 801 00:55:36,250 --> 00:55:40,119 but they do it while they're still attached to their ego... 802 00:55:41,255 --> 00:55:46,091 They call that, as I recall him saying it, "the golden chain." 803 00:55:49,054 --> 00:55:52,013 And that's what I feel happened to Steve. 804 00:55:53,475 --> 00:55:59,597 He went into magnificence and into enlightenment, but he... 805 00:56:01,233 --> 00:56:03,099 He just... 806 00:56:04,111 --> 00:56:05,522 He blew it. 807 00:56:08,448 --> 00:56:11,031 Steve Jobs blew it? 808 00:56:11,159 --> 00:56:14,698 How many people in the world believe that? 809 00:56:14,830 --> 00:56:18,039 He made products everyone loved. 810 00:56:18,208 --> 00:56:22,794 He was the computer era's most successful entrepreneur. 811 00:56:22,921 --> 00:56:25,834 How could anyone think he blew it? 812 00:56:27,676 --> 00:56:30,134 The entrepreneur's a person who wants to shake things up, 813 00:56:30,262 --> 00:56:34,051 who wants to change things, who sees a better way of doing that. 814 00:56:34,182 --> 00:56:37,550 But he or she tends to be a royal pain in the neck. 815 00:56:37,728 --> 00:56:40,641 Apple computer has sued its co-founder and former chairman, 816 00:56:40,772 --> 00:56:43,310 Steven Jobs, to stop him from starting a rival company. 817 00:56:43,442 --> 00:56:48,028 Jobs quit Apple last week in a bitter fight with his board and management. 818 00:56:48,155 --> 00:56:49,737 So, Apple is reorganizing. 819 00:56:49,865 --> 00:56:53,654 John Sculley is taking control from Steven Jobs. 820 00:56:53,785 --> 00:56:56,653 Tell us about your departure from Apple. 821 00:56:56,830 --> 00:57:01,040 Oh, it was very painful. I'm not even sure I want to talk about it. Um... 822 00:57:04,421 --> 00:57:06,834 What can I say? I hired the wrong guy. 823 00:57:06,965 --> 00:57:09,423 - That was Sculley? - Yeah. 824 00:57:09,551 --> 00:57:15,673 And... he destroyed everything I'd spent ten years working for. 825 00:57:30,906 --> 00:57:35,196 What did you do after you left Apple in 1985? 826 00:57:35,369 --> 00:57:39,158 I started two companies. 827 00:57:39,289 --> 00:57:41,155 One was started 828 00:57:41,291 --> 00:57:46,537 by buying the computer-graphics division of Lucasfilm. 829 00:57:46,713 --> 00:57:49,456 We christened it Pixar. 830 00:57:49,591 --> 00:57:53,130 Pixar was acquired by Disney. 831 00:57:53,261 --> 00:57:56,550 I'm on the board of directors of the Walt Disney Company. 832 00:57:57,766 --> 00:58:00,383 And the other was called NeXT. 833 00:58:02,938 --> 00:58:06,056 From having left or been bounced from Apple, 834 00:58:06,191 --> 00:58:08,308 did he have a kind of a chip on his shoulder? 835 00:58:08,443 --> 00:58:13,359 Was there some... Was this Steve in the wilderness? 836 00:58:13,490 --> 00:58:15,447 I don't think he felt he was in the wilderness at all. 837 00:58:15,575 --> 00:58:19,489 I think he felt he was on a path. He was on a mission. 838 00:58:19,621 --> 00:58:21,578 Where are we going to? 839 00:58:21,748 --> 00:58:24,331 In 1986, after he had left Apple 840 00:58:24,459 --> 00:58:27,293 and was in the process of starting this new company, 841 00:58:27,504 --> 00:58:30,622 "Esquire" convinced him to give a journalist a week of his time. 842 00:58:30,799 --> 00:58:33,382 So, I basically spent that week with him, 843 00:58:33,510 --> 00:58:36,844 talked to him a lot, went to dinner, sat in on meetings, 844 00:58:36,972 --> 00:58:41,433 and got to see Jobs as he was at that moment in his life. 845 00:58:41,560 --> 00:58:44,803 But, I mean, I agree that... Let me back up a bit. 846 00:58:44,938 --> 00:58:46,474 So, somebody's got to say, 847 00:58:46,606 --> 00:58:49,724 "Here's what we can do, and we can make it happen, 848 00:58:49,860 --> 00:58:53,149 and here's the level of thing we can ship in 16 months." 849 00:58:53,280 --> 00:58:55,647 And what I hear him saying is, 850 00:58:55,824 --> 00:58:58,237 "Well, anything more than a port of Mac author, forget it." 851 00:58:58,368 --> 00:59:00,155 And boy, that just makes me smoke. 852 00:59:00,287 --> 00:59:02,825 If he was in a meeting and somebody said, 853 00:59:02,998 --> 00:59:07,288 "Here's a great idea," and put the idea out there and he didn't like it, 854 00:59:07,419 --> 00:59:09,706 he'd just chop the person into mincemeat. 855 00:59:09,880 --> 00:59:11,872 The problem I've got, though, is one, 856 00:59:12,007 --> 00:59:14,966 will everybody believe that the stake is in fact in the ground, 857 00:59:15,093 --> 00:59:16,800 and, secondly, when software comes back 858 00:59:16,928 --> 00:59:19,045 and says what they can do by summer or spring of '87, 859 00:59:19,181 --> 00:59:20,422 will they be telling us the truth? 860 00:59:20,599 --> 00:59:22,807 Well, George, I can't change the world, you know. 861 00:59:22,934 --> 00:59:25,096 What do you want me to do? What's the solution? 862 00:59:25,228 --> 00:59:26,890 But you see, what we can learn is... 863 00:59:27,022 --> 00:59:29,309 What I want is probably irrelevant. 864 00:59:29,441 --> 00:59:31,558 I mean, there are certain realities here, 865 00:59:31,693 --> 00:59:35,027 both psychological and market, 866 00:59:35,155 --> 00:59:39,115 that are going to come into play, in my own personal judgment. 867 00:59:39,242 --> 00:59:42,110 And I think this is a window that we've got. We've been given it. 868 00:59:42,245 --> 00:59:44,703 And thank God we've been given it. Nobody else has done this. 869 00:59:44,873 --> 00:59:47,115 It's a wonderful window. We have 18 months. 870 00:59:48,168 --> 00:59:52,037 The article was about people who are maniacal about work. 871 00:59:52,172 --> 00:59:54,915 And Steve Jobs was the most maniacal person I could think of, 872 00:59:55,133 --> 00:59:57,216 which is why I wanted to write about him. 873 00:59:57,344 --> 01:00:00,052 You made the connection in that first piece a bunch of times, 874 01:00:00,180 --> 01:00:01,967 you know, the monk among priests. 875 01:00:02,099 --> 01:00:05,217 What was the relationship between that extreme 876 01:00:05,352 --> 01:00:08,265 of working 24/7 and that monastic life? 877 01:00:08,396 --> 01:00:12,231 I mean, he did seem to have that rather interesting dedication. 878 01:00:12,359 --> 01:00:17,150 OK, so, a monomaniacal commitment to something 879 01:00:17,280 --> 01:00:19,567 is something that most people don't have. 880 01:00:20,909 --> 01:00:28,624 And that, like the monk, requires you to kind of shed extraneous things, 881 01:00:28,750 --> 01:00:32,084 and Steve Jobs absolutely, positively had that. 882 01:00:46,768 --> 01:00:48,885 Jobs talked about becoming a monk 883 01:00:49,020 --> 01:00:53,060 at this remote Zen temple where Kobun Chino had studied. 884 01:00:59,906 --> 01:01:02,398 I wonder what he liked about the idea of it. 885 01:01:05,537 --> 01:01:10,578 Was it the discipline of the monks? Their unwavering focus? 886 01:01:28,393 --> 01:01:31,682 In meditation, Jobs loved inspecting his own mind 887 01:01:31,813 --> 01:01:33,770 and changing the way it worked. 888 01:01:33,940 --> 01:01:36,557 He focused on the spirit of things 889 01:01:36,693 --> 01:01:39,857 and sought perfection in the machines he made. 890 01:01:40,739 --> 01:01:44,403 But Kobun thought Jobs was missing the point. 891 01:01:44,576 --> 01:01:47,944 A search for perfection would never bring him peace 892 01:01:48,079 --> 01:01:50,662 or harmony with those around him. 893 01:01:52,959 --> 01:01:56,828 But maybe harmony is what Jobs was looking for in Japan. 894 01:01:58,673 --> 01:02:03,088 He went there dozens of times, and not just for business. 895 01:02:03,220 --> 01:02:06,384 He stayed in fancy hotels, not Zen temples, 896 01:02:06,514 --> 01:02:09,723 but right to the end, he kept going back. 897 01:02:15,899 --> 01:02:18,642 After he met and later married Laurene Powell, 898 01:02:18,777 --> 01:02:21,520 he would take three of his four children there, 899 01:02:21,655 --> 01:02:23,487 including Lisa. 900 01:02:26,076 --> 01:02:29,240 Jobs's relationship with Lisa remained full of conflict, 901 01:02:29,454 --> 01:02:34,165 but a few years before Jobs's death, Lisa wrote about a moment of peace. 902 01:02:36,503 --> 01:02:40,668 I didn't live with him, but he would stop by our house some days, 903 01:02:40,882 --> 01:02:44,592 a deity among us for a few tingly moments or hours. 904 01:02:46,137 --> 01:02:49,255 He was a more extreme vegetarian than my mother and I 905 01:02:49,391 --> 01:02:51,348 and sharp-focused. 906 01:02:51,476 --> 01:02:55,595 One day, he spit out a mouthful of soup after hearing it contained butter. 907 01:02:55,730 --> 01:02:59,940 With him, one ate a variety of salads. 908 01:03:01,361 --> 01:03:05,150 He believed that great harvests came from arid sources. 909 01:03:05,282 --> 01:03:07,319 Pleasure from restraint. 910 01:03:07,450 --> 01:03:11,660 He knew the equations that most people didn't know. 911 01:03:11,788 --> 01:03:14,576 Things led to their opposites. 912 01:03:16,209 --> 01:03:19,748 But once, he took me with him on a business trip to Tokyo 913 01:03:19,879 --> 01:03:23,964 where we went to a sushi bar in the basement of the Okura hotel 914 01:03:24,092 --> 01:03:28,837 with its high ceilings and low couches, like a Hitchcock set. 915 01:03:28,972 --> 01:03:33,262 He ordered great trays of unagi sushi, cooked eel on rice. 916 01:03:33,393 --> 01:03:37,433 He ordered too many pieces, knowing we wouldn't be able to finish them, 917 01:03:37,564 --> 01:03:40,932 but that we didn't want to feel they would run out. 918 01:03:41,109 --> 01:03:44,102 It was the first time I'd felt, with him, 919 01:03:44,237 --> 01:03:48,151 so relaxed and content over those trays of meat. 920 01:03:48,283 --> 01:03:52,994 The excess, the permission and warmth after the cold salads 921 01:03:53,163 --> 01:03:58,454 meant a once inaccessible space had opened. 922 01:03:58,585 --> 01:04:01,293 He was less rigid with himself, 923 01:04:01,421 --> 01:04:05,165 even human under the great ceilings with the little chairs, 924 01:04:05,383 --> 01:04:07,545 with the meat and me. 925 01:04:09,596 --> 01:04:14,591 But the event was not self-sustaining. We went back home to salads. 926 01:04:14,726 --> 01:04:18,686 They satisfied me less now that I knew the alternative. 927 01:04:24,235 --> 01:04:27,854 - What eventually happened to NeXT? - Apple purchased it. 928 01:04:27,989 --> 01:04:33,280 - OK, when? - I believe 1997. 929 01:04:33,453 --> 01:04:37,914 When Apple bought NeXT, Apple was pretty messed up. 930 01:04:38,041 --> 01:04:39,782 It was pretty easy to see. 931 01:04:39,918 --> 01:04:41,034 Apple Computer, 932 01:04:41,169 --> 01:04:43,456 a pioneer in the personal computers and software business, 933 01:04:43,588 --> 01:04:44,874 has fallen on hard times. 934 01:04:45,006 --> 01:04:46,338 Over a three-month period, 935 01:04:46,466 --> 01:04:50,426 Apple's profits plunged by more than $50 million. 936 01:04:50,553 --> 01:04:54,388 With big losses in the last quarter, with profit margins shrinking, 937 01:04:54,516 --> 01:04:56,633 Apple seems destined for a takeover. 938 01:04:56,768 --> 01:04:59,636 Steve Jobs co-founded Apple with Steve Wozniak, 939 01:04:59,771 --> 01:05:02,354 and on Friday, Apple went to the well once again, 940 01:05:02,482 --> 01:05:04,223 bringing Jobs back as a consultant, 941 01:05:04,359 --> 01:05:06,646 writing one of the most unlikely chapters ever 942 01:05:06,861 --> 01:05:08,477 in the lore that is Silicon Valley. 943 01:05:08,613 --> 01:05:09,945 Steve. 944 01:05:20,458 --> 01:05:23,951 I joined the company in February '97. 945 01:05:24,087 --> 01:05:27,455 After a couple of days there, I was in complete shock. 946 01:05:29,801 --> 01:05:33,511 The company was close to bankruptcy, and it was total chaos. 947 01:05:33,638 --> 01:05:36,802 The NeXT acquisition had just occurred, 948 01:05:36,933 --> 01:05:39,016 and there were major changes going on. 949 01:05:39,227 --> 01:05:43,642 And Steve was involved at that point in time, but on the margins. 950 01:05:43,773 --> 01:05:46,561 I haven't been back here in over ten years, 951 01:05:46,693 --> 01:05:50,437 so, yeah, it's an interesting feeling. 952 01:05:50,613 --> 01:05:53,230 It's a little strange, but not too strange. 953 01:05:53,366 --> 01:05:54,823 At some point in time, 954 01:05:54,951 --> 01:05:57,944 the process was started to look for a full-time CEO. 955 01:05:58,079 --> 01:06:00,321 And at that point in time, Steve got much more involved. 956 01:06:00,457 --> 01:06:01,743 Now, he still wasn't the CEO. 957 01:06:01,875 --> 01:06:05,334 I don't think he was 100% sure the company was savable yet, 958 01:06:05,462 --> 01:06:08,045 and so I think he was hedging his bets a little bit. 959 01:06:08,214 --> 01:06:12,834 He had to make a decision whether he really wanted to take on that role 960 01:06:12,969 --> 01:06:16,303 because being CEO of Apple is an all-consuming role, 961 01:06:16,431 --> 01:06:18,923 and I'm not sure Steve thought that that's something 962 01:06:19,058 --> 01:06:23,223 that he wanted to do for what turned out to be the rest of his life. 963 01:06:23,354 --> 01:06:28,895 I took the title of Interim CEO and agreed to come back for 90 days 964 01:06:29,027 --> 01:06:32,737 to help recruit a full-time CEO. 965 01:06:35,950 --> 01:06:38,237 How did that recruitment effort go? 966 01:06:38,369 --> 01:06:40,076 I failed. 967 01:06:45,919 --> 01:06:48,707 You know, the real hero of that early part of the story 968 01:06:48,838 --> 01:06:50,079 is Fred Anderson. 969 01:06:50,256 --> 01:06:53,499 Fred restructured the company financially 970 01:06:53,635 --> 01:06:56,753 and bought us the time to build the foundation for today's Apple. 971 01:06:56,888 --> 01:07:00,006 And then Fred even had an impact on the product strategy 972 01:07:00,141 --> 01:07:02,633 because when Steve came back, 973 01:07:02,769 --> 01:07:06,558 the first major project we started was a network computer. 974 01:07:06,731 --> 01:07:09,724 That was kind of the rage at the time, but it wasn't a consumer product at all. 975 01:07:09,901 --> 01:07:11,563 Fred kept going, "You know, wait a minute, 976 01:07:11,694 --> 01:07:13,276 we got to have a consumer product." 977 01:07:13,404 --> 01:07:15,111 "You guys have to focus on a low-end Mac 978 01:07:15,281 --> 01:07:17,489 because that's what's going to turn the company around." 979 01:07:18,284 --> 01:07:21,618 So, the executive team and Steve decided that we would switch 980 01:07:21,746 --> 01:07:26,411 from doing the network computer and make that the iMac. 981 01:07:26,626 --> 01:07:29,414 There you go, right here. Can you see it? 982 01:07:31,506 --> 01:07:33,964 ♪ She comes in colors everywhere 983 01:07:34,092 --> 01:07:37,426 In the world of computers, it's kill or be killed. 984 01:07:37,554 --> 01:07:40,388 And the original whiz kid was thought to be dying an early death. 985 01:07:40,515 --> 01:07:44,134 We went for colors that really expressed the spirit of the machine. 986 01:07:44,352 --> 01:07:47,220 And that is... you know, it's powerful, but fun. 987 01:07:49,857 --> 01:07:52,474 And the first thing I thought I'd do is give you an update. 988 01:07:52,694 --> 01:07:56,108 We've managed to go from losing a billion dollars the year before 989 01:07:56,239 --> 01:08:01,234 to actually making over $200 million during the first three quarters. 990 01:08:01,369 --> 01:08:03,326 Boy, what a difference a year makes. 991 01:08:03,454 --> 01:08:05,696 Guess what? Mac is back. 992 01:08:08,042 --> 01:08:11,376 ♪ She comes in colors everywhere 993 01:08:11,504 --> 01:08:13,496 ♪ She combs her hair 994 01:08:13,631 --> 01:08:15,873 ♪ She's like a rainbow 995 01:08:16,009 --> 01:08:19,969 He was the kind of person that could convince himself of things 996 01:08:20,096 --> 01:08:22,588 that weren't necessarily true. 997 01:08:22,724 --> 01:08:26,217 He could go to people and ask them to do something 998 01:08:26,394 --> 01:08:28,477 that they thought was impossible. 999 01:08:29,814 --> 01:08:32,727 Steve did create reality distortion around him. 1000 01:08:32,859 --> 01:08:35,021 You know, if he told you the sky was green, for a while, 1001 01:08:35,153 --> 01:08:37,145 you'd kind of go, "Yeah, OK. Yeah, the sky's green." 1002 01:08:39,866 --> 01:08:45,282 To me... marketing is about values. 1003 01:08:45,455 --> 01:08:50,371 This is a very complicated world. It's a very noisy world. 1004 01:08:50,501 --> 01:08:53,790 And we're not going to get a chance 1005 01:08:53,921 --> 01:08:59,417 to get people to remember much about us. No company is. 1006 01:09:00,470 --> 01:09:02,587 And so, we have to be really clear 1007 01:09:02,722 --> 01:09:05,055 on what we want them to know about us. 1008 01:09:05,183 --> 01:09:07,391 Our customers want to know who is Apple 1009 01:09:07,518 --> 01:09:09,384 and what is it that we stand for. 1010 01:09:09,520 --> 01:09:15,312 What we have is something that I am... 1011 01:09:15,443 --> 01:09:17,901 I am very moved by. 1012 01:09:21,199 --> 01:09:22,815 Here's to the crazy ones. 1013 01:09:22,950 --> 01:09:25,283 Jobs was so moved by the ad he'd commissioned 1014 01:09:25,495 --> 01:09:28,988 that he produced a version where he did the voiceover himself. 1015 01:09:29,123 --> 01:09:32,457 The round pegs in the square holes. 1016 01:09:32,585 --> 01:09:35,874 The ones who see things differently. 1017 01:09:36,005 --> 01:09:40,466 They're not fond of rules, and they have no respect for the status quo. 1018 01:09:41,678 --> 01:09:47,595 You can quote them, disagree with them, glorify or vilify them. 1019 01:09:47,725 --> 01:09:51,059 About the only thing you can't do is ignore them 1020 01:09:51,187 --> 01:09:53,099 because they change things. 1021 01:09:53,231 --> 01:09:59,353 While some may see them as the crazy ones, we see genius. 1022 01:10:00,571 --> 01:10:04,190 Because the people who are crazy enough to think they can change the world... 1023 01:10:05,451 --> 01:10:07,818 are the ones who do. 1024 01:10:11,958 --> 01:10:15,702 It honors those people who have changed the world. 1025 01:10:16,796 --> 01:10:21,257 Some of them are living, some of them are not. 1026 01:10:21,384 --> 01:10:26,925 But the ones that aren't, you know that if they ever used a computer, 1027 01:10:27,056 --> 01:10:28,217 it would have been a Mac. 1028 01:10:32,729 --> 01:10:34,846 The theme of the campaign is "Think different." 1029 01:10:37,483 --> 01:10:39,145 Think different. 1030 01:10:39,277 --> 01:10:41,815 In one brilliant, ungrammatical phrase, 1031 01:10:41,946 --> 01:10:47,863 Jobs told a story of rebellion, the triumph of the iconoclastic genius. 1032 01:10:47,994 --> 01:10:51,829 With "Think different," was Jobs trying to frame his own story? 1033 01:10:51,998 --> 01:10:55,412 More than a CEO, he positioned himself as an oracle, 1034 01:10:55,543 --> 01:10:58,877 a man who could tell the future of technology. 1035 01:11:09,098 --> 01:11:10,839 You know, a lot of times, 1036 01:11:10,975 --> 01:11:16,141 great products are sort of convergence of the right set of technologies. 1037 01:11:16,272 --> 01:11:19,686 And Steve was brilliant at getting to a fork in the road 1038 01:11:19,817 --> 01:11:22,434 and choosing the right fork. 1039 01:11:22,612 --> 01:11:26,322 We got a chance to play with a variety of music players, 1040 01:11:26,449 --> 01:11:28,236 and they sucked. 1041 01:11:28,409 --> 01:11:32,653 So, we decided, Steve said, you know, "Go build a music player." 1042 01:11:32,789 --> 01:11:37,033 So, I assembled a small team to take a look at what it would take to do it, 1043 01:11:37,168 --> 01:11:40,627 and the conclusion was the technology really wasn't ready yet. 1044 01:11:40,755 --> 01:11:44,169 Then in February of 2001, 1045 01:11:44,300 --> 01:11:47,509 the Toshiba guys brought out the 1.8-inch hard drive. 1046 01:11:47,637 --> 01:11:48,923 So, as soon as I saw that I go, 1047 01:11:49,055 --> 01:11:51,138 "That's what we need to build the iPod." 1048 01:11:51,265 --> 01:11:55,259 So, I went to Steve, and I go, "OK, I know how to do it now." 1049 01:11:55,394 --> 01:11:56,805 "I need $10 million." 1050 01:11:56,938 --> 01:12:00,431 And Steve goes, "OK, I'll write you a $10 million check." 1051 01:12:00,608 --> 01:12:03,646 I went to Fred to make sure the check wouldn't bounce, 1052 01:12:03,778 --> 01:12:06,270 and Fred said, "Yeah, you know, go." 1053 01:12:06,405 --> 01:12:08,567 And so I started ramping the team up, 1054 01:12:08,699 --> 01:12:12,568 and, you know, we delivered the iPod later that year. 1055 01:12:14,872 --> 01:12:16,955 ♪ One, two, three, four 1056 01:12:17,083 --> 01:12:19,040 ♪ Tell me that you love me more 1057 01:12:19,168 --> 01:12:21,285 ♪ Sleepless long nights 1058 01:12:21,420 --> 01:12:23,377 ♪ That is what my youth was for 1059 01:12:23,506 --> 01:12:25,463 ♪ Oh, oh, oh 1060 01:12:25,633 --> 01:12:27,966 ♪ You're changing your heart 1061 01:12:28,094 --> 01:12:29,801 ♪ Oh, oh, oh 1062 01:12:29,971 --> 01:12:32,179 ♪ You know who you are 1063 01:12:32,306 --> 01:12:34,389 ♪ One, two, three, four 1064 01:12:34,517 --> 01:12:36,224 ♪ Tell me that you love me more 1065 01:12:36,352 --> 01:12:38,514 ♪ Sleepless long nights 1066 01:12:38,688 --> 01:12:40,600 ♪ That is what my youth was for 1067 01:12:40,731 --> 01:12:43,189 ♪ Oh, teenage hopes 1068 01:12:46,070 --> 01:12:49,939 Jobs's genius was how he sold the iPod. 1069 01:12:50,074 --> 01:12:53,738 It wasn't a machine for you. It was you. 1070 01:12:56,122 --> 01:12:59,286 People sometimes forget that they're very unique 1071 01:12:59,417 --> 01:13:03,161 and that they have very unique feelings and perspectives. 1072 01:13:03,379 --> 01:13:04,790 You know, the whole computer industry 1073 01:13:04,922 --> 01:13:09,292 wants to forget about the humanist side and just focus on the technology, 1074 01:13:09,427 --> 01:13:12,340 but we think there's a whole other side to the coin, 1075 01:13:12,471 --> 01:13:14,554 which is what do you do with these things? 1076 01:13:14,724 --> 01:13:18,684 Can we do more than just spreadsheets and word processors? 1077 01:13:18,811 --> 01:13:21,804 Can we help you express yourself in richer ways? 1078 01:13:24,734 --> 01:13:29,069 Apple at the core, its core value, 1079 01:13:29,196 --> 01:13:33,566 is that we believe that people with passion 1080 01:13:33,743 --> 01:13:35,860 can change the world for the better. 1081 01:13:35,995 --> 01:13:37,952 That's what we believe. 1082 01:13:39,665 --> 01:13:42,248 Steve talks a lot about the values of the company. 1083 01:13:42,376 --> 01:13:44,208 And said that Apple was a company 1084 01:13:44,337 --> 01:13:47,250 that was designed to make the world a better place. 1085 01:13:47,381 --> 01:13:50,044 Was that a heartfelt thing for Steve? 1086 01:13:50,176 --> 01:13:52,543 I believe it was a heartfelt thing for Steve. 1087 01:13:52,720 --> 01:13:55,303 I think that he did want to make the world a better place. 1088 01:13:55,514 --> 01:14:00,054 I think that he felt by delivering great products 1089 01:14:00,186 --> 01:14:03,805 that were easy to use and beautiful, 1090 01:14:03,940 --> 01:14:06,398 that it would make people's lives better. 1091 01:14:09,779 --> 01:14:11,361 Is that enough? 1092 01:14:11,489 --> 01:14:15,108 Is making and selling products, even if they're good, 1093 01:14:15,242 --> 01:14:18,861 even if they're the best, enough to make the world a better place? 1094 01:14:20,790 --> 01:14:22,201 Apple's a business. 1095 01:14:22,333 --> 01:14:25,497 And we've somehow attached this emotion to a business, 1096 01:14:25,711 --> 01:14:29,330 which is just there to make money for its shareholders, right? 1097 01:14:29,465 --> 01:14:30,922 That's all it is. Nothing more. 1098 01:14:31,050 --> 01:14:32,882 You know, creating that association 1099 01:14:33,094 --> 01:14:36,508 was probably one of Steve's greatest accomplishments. 1100 01:14:36,639 --> 01:14:39,006 - It's queued up to play. - Awesome. 1101 01:14:41,936 --> 01:14:45,771 I remember at this point, when the music plays in the beginning, 1102 01:14:45,898 --> 01:14:47,560 there's just this energy, right? 1103 01:14:47,733 --> 01:14:52,524 You have on the one side this huge bank of photographers, 1104 01:14:52,655 --> 01:14:56,569 and I remember looking at all these guys 1105 01:14:56,742 --> 01:14:59,234 with their cameras trained on Steve, thinking, 1106 01:14:59,370 --> 01:15:02,113 "You guys have no idea what's about to happen." 1107 01:15:02,248 --> 01:15:03,955 And to be fair, neither did we. 1108 01:15:07,253 --> 01:15:09,586 Thank you for coming. 1109 01:15:09,755 --> 01:15:11,917 We're going to make some history together today. 1110 01:15:13,050 --> 01:15:14,757 Any time you see an Apple event, 1111 01:15:14,885 --> 01:15:18,925 know that there's a team of people in the audience who are just sick. 1112 01:15:22,852 --> 01:15:26,391 We are calling it "iPhone." 1113 01:15:28,190 --> 01:15:34,812 Today... Today, Apple is going to reinvent the phone. 1114 01:15:34,947 --> 01:15:38,691 And so, rather than talk about this some more, let me show it to you. 1115 01:15:38,868 --> 01:15:42,908 So, if you're giving a demo, and you deviate off the script, 1116 01:15:43,039 --> 01:15:44,496 well, lots of bad things can go wrong. 1117 01:15:44,623 --> 01:15:48,367 When Steve comes up with, "Here's what I want to show," 1118 01:15:48,502 --> 01:15:49,993 everything is dissected. 1119 01:15:50,171 --> 01:15:51,503 The message that he's trying to say 1120 01:15:51,630 --> 01:15:53,587 is then dissected into very specific actions. 1121 01:15:53,716 --> 01:15:57,710 And let me go ahead and get that picture within picture up. 1122 01:15:57,887 --> 01:16:01,051 I'm going to go ahead and just push the "sleep wake" button. 1123 01:16:01,182 --> 01:16:03,094 There we go, right there. 1124 01:16:03,225 --> 01:16:06,559 And to unlock the phone, I just take my finger and slide it across. 1125 01:16:06,687 --> 01:16:09,145 All right, you want to see that again? 1126 01:16:10,816 --> 01:16:14,025 So, he's got, you know, several discrete parts of the demo. 1127 01:16:14,236 --> 01:16:20,028 We had a flask of Scotch with us, and after every little part, 1128 01:16:20,159 --> 01:16:23,994 the person who was responsible for that portion, you know, took a hit. 1129 01:16:24,121 --> 01:16:26,488 I want to make a call to Jony Ive. 1130 01:16:26,707 --> 01:16:27,914 I can just push here, 1131 01:16:28,042 --> 01:16:30,580 and I see Jony Ive's contacts with all his information. 1132 01:16:30,711 --> 01:16:33,419 The Jony Ive call, oh, my God. 1133 01:16:33,547 --> 01:16:36,460 There's all sorts of ways that this could have gone sideways. 1134 01:16:36,592 --> 01:16:39,926 - Hey, Jony, how you doing? - I'm good. How you doing? 1135 01:16:40,054 --> 01:16:44,640 Well, it's been two-and-a-half years, and I can't tell you how thrilled I am 1136 01:16:44,767 --> 01:16:47,555 to make the first public phone call with iPhone. 1137 01:16:50,523 --> 01:16:51,934 He goes to the music. 1138 01:16:52,066 --> 01:16:54,274 Let's go into Dylan here. 1139 01:16:54,401 --> 01:16:56,313 Let's play Like a Rolling Stone. 1140 01:16:58,989 --> 01:17:00,605 He gets the web browser up there. 1141 01:17:00,741 --> 01:17:04,234 I want to show you Safari running on a mobile device. 1142 01:17:04,370 --> 01:17:06,532 So, let's go to the web. Boom. 1143 01:17:06,664 --> 01:17:08,326 Unbelievable. 1144 01:17:08,457 --> 01:17:11,120 And then at the end, he has that moment 1145 01:17:11,252 --> 01:17:13,289 where he swizzles it all together. 1146 01:17:13,420 --> 01:17:17,004 At the end, where he orders thousands of lattes from some, you know, 1147 01:17:17,133 --> 01:17:19,420 poor woman at a Starbucks down the road. 1148 01:17:19,552 --> 01:17:21,965 Good morning. This is Starbucks and how can I help you? 1149 01:17:22,096 --> 01:17:24,554 Yes, I'd liked to order 4,000 lattes to go, please. 1150 01:17:24,682 --> 01:17:26,093 No, just kidding. 1151 01:17:26,225 --> 01:17:29,639 Wrong number. Thank you. Bye-bye. 1152 01:17:29,770 --> 01:17:31,477 OK. 1153 01:17:38,737 --> 01:17:41,275 As soon as the demo was over, we left. 1154 01:17:41,407 --> 01:17:46,243 And we just turned San Francisco into a... It was a shit show. 1155 01:17:53,586 --> 01:17:55,498 That was a night to remember. 1156 01:17:56,672 --> 01:18:00,211 Man, you just had this release of years of anxiety. 1157 01:18:00,342 --> 01:18:03,585 And then we got up tomorrow, the next day, and did it all over again. 1158 01:18:03,721 --> 01:18:05,587 And we had to finish the product at this point. 1159 01:18:05,764 --> 01:18:08,302 And that was tough, especially with a raging hangover, 1160 01:18:08,434 --> 01:18:10,346 but it was a lot of fun. 1161 01:18:10,477 --> 01:18:14,312 The biggest thing he made was the iPhone, definitely. 1162 01:18:14,440 --> 01:18:15,976 He made the iPhone, 1163 01:18:16,150 --> 01:18:19,769 which shocked the world with its touch screen and stuff. 1164 01:18:24,450 --> 01:18:28,820 So, what are we down to? 13 minutes and... 1165 01:18:28,996 --> 01:18:30,407 Whoo-hoo! 1166 01:18:30,539 --> 01:18:33,077 - It's go time! - Oh, yeah. 1167 01:18:42,426 --> 01:18:46,466 - Oh, yeah. Swipe to unlock. - Sweet! 1168 01:18:50,184 --> 01:18:53,677 ♪ All my life 1169 01:18:53,812 --> 01:18:56,054 ♪ Is changing every day 1170 01:18:56,190 --> 01:18:57,681 There she is. 1171 01:18:57,900 --> 01:19:00,062 ♪ In every possible way 1172 01:19:00,194 --> 01:19:03,687 iPhone's been shipping for exactly 200 days today. 1173 01:19:03,822 --> 01:19:07,031 And I'm extraordinarily pleased to report 1174 01:19:07,159 --> 01:19:10,493 that we have sold four million iPhones to date. 1175 01:19:12,456 --> 01:19:15,494 ♪ Never quite as it seems 1176 01:19:15,626 --> 01:19:18,994 ♪ And then I open up and see 1177 01:19:19,129 --> 01:19:23,544 ♪ The person falling here is me 1178 01:19:23,676 --> 01:19:27,636 Today we're introducing the iPhone 3G. 1179 01:19:33,644 --> 01:19:39,185 In a little over two years, we have sold 30 million iPhones. 1180 01:19:47,533 --> 01:19:50,241 And with a swipe, you have changed your life. 1181 01:19:50,369 --> 01:19:52,201 Yes! 1182 01:20:04,508 --> 01:20:08,422 - How may I help you? - IPhone 4. Where is the iPhone 4? 1183 01:20:08,554 --> 01:20:12,389 Oh, I'm very sorry, but we are currently sold out. 1184 01:20:12,516 --> 01:20:16,681 However, we did finally get some more HTC Evos in. 1185 01:20:16,812 --> 01:20:19,771 What? What is that? Is it an iPhone? 1186 01:20:19,898 --> 01:20:22,686 No, it is that 4G phone on Sprint. 1187 01:20:22,818 --> 01:20:25,231 If it's not an iPhone, why would I want it? 1188 01:20:25,362 --> 01:20:28,355 Well, it's similar to an iPhone, but has a bigger screen. 1189 01:20:28,490 --> 01:20:29,651 I don't care. 1190 01:20:29,783 --> 01:20:32,446 The internet speeds are around three times faster. 1191 01:20:32,578 --> 01:20:35,195 - I don't care. - It fucking prints money. 1192 01:20:35,331 --> 01:20:38,244 - I don't care. - It can grant up to three wishes. 1193 01:20:38,375 --> 01:20:40,833 Even if one of those wishes is for an iPhone. 1194 01:20:40,961 --> 01:20:43,453 - I don't care about any of that. - OK, fine. 1195 01:20:43,589 --> 01:20:46,457 Then what the hell entices you about the iPhone 4, 1196 01:20:46,592 --> 01:20:48,549 if you don't mind me asking? 1197 01:20:48,677 --> 01:20:50,384 It is an iPhone. 1198 01:21:00,606 --> 01:21:05,192 I remember the first set of people I interviewed about the iPhone. 1199 01:21:05,319 --> 01:21:07,902 I've been interviewing people about their computers 1200 01:21:08,030 --> 01:21:09,987 for, you know, decades. 1201 01:21:10,157 --> 01:21:16,324 I've never seen this kind of connection before with an object. 1202 01:21:18,290 --> 01:21:21,909 In the beginning, the impulse was to sit you down 1203 01:21:22,044 --> 01:21:25,754 and to show you everything on their iPhone. 1204 01:21:25,964 --> 01:21:29,548 As time's gone on, there's been less of that 1205 01:21:29,676 --> 01:21:34,341 and more of what I call the "alone together phenomenon." 1206 01:21:37,851 --> 01:21:42,016 It has turned out to be an isolating technology. 1207 01:21:53,367 --> 01:21:55,404 Did you ever see that Wim Wenders film, 1208 01:21:55,536 --> 01:21:56,697 "Until the End of the World"? 1209 01:21:56,829 --> 01:22:00,823 Yes, I love that. People fall in love with their dreams, 1210 01:22:00,958 --> 01:22:04,622 and they walk around with hoods over their head 1211 01:22:04,753 --> 01:22:09,043 and screens in front of them, fascinated by their dreams. 1212 01:22:09,216 --> 01:22:13,335 By the time I came to rescue Claire, the only thing she cared about 1213 01:22:13,470 --> 01:22:16,838 was having fresh batteries for her video monitor. 1214 01:22:19,059 --> 01:22:20,721 It's a little bit like that. 1215 01:22:20,853 --> 01:22:24,938 It's a dream machine, and you become fascinated 1216 01:22:25,065 --> 01:22:28,979 by the world that you can find on these screens. 1217 01:22:30,362 --> 01:22:34,697 And the face of that technology was Steve Jobs. 1218 01:22:55,971 --> 01:23:00,011 What would you say about the responsibilities of power 1219 01:23:00,142 --> 01:23:03,476 once you've achieved a certain level of success? 1220 01:23:03,604 --> 01:23:07,018 Power? What is that? 1221 01:23:13,864 --> 01:23:16,322 ♪ Your daddy, he's an outlaw 1222 01:23:16,533 --> 01:23:18,900 He found a loophole where if you lease a car, 1223 01:23:19,036 --> 01:23:22,825 you have a six-month grace period to put license plates on. 1224 01:23:22,956 --> 01:23:28,543 And so he leased the same car every six months, 1225 01:23:28,670 --> 01:23:30,832 to avoid putting license plates at all. 1226 01:23:31,006 --> 01:23:32,668 I think he told people 1227 01:23:32,799 --> 01:23:37,385 that it's because he didn't want people to identify him. 1228 01:23:37,513 --> 01:23:39,425 Well, there's nothing more identifiable 1229 01:23:39,556 --> 01:23:41,889 than a silver Mercedes with no license plate. 1230 01:23:42,017 --> 01:23:44,634 I mean, it screams "Steve Jobs" in the Valley. 1231 01:23:44,770 --> 01:23:48,559 Riding to work with Steve Jobs. 1232 01:23:48,690 --> 01:23:51,603 Riding to work with the good ol' Stevie. 1233 01:23:53,946 --> 01:23:57,565 Oh, look at that, he's in the carpool lane. 1234 01:23:57,699 --> 01:24:01,568 And it does give you a glimpse of how he thought he was above the law. 1235 01:24:01,703 --> 01:24:06,323 ♪ He oversees his kingdom Where no stranger does intrude 1236 01:24:06,500 --> 01:24:09,334 ♪ His voice It trembles as he calls out 1237 01:24:09,461 --> 01:24:11,999 ♪ For another plate of food 1238 01:24:12,130 --> 01:24:15,589 ♪ One more cup of coffee for the road 1239 01:24:15,717 --> 01:24:19,427 Jobs also made it a habit to park his plateless Mercedes Benz 1240 01:24:19,555 --> 01:24:22,468 in handicap parking spots around the Apple campus. 1241 01:24:23,892 --> 01:24:26,384 It even became something of a pastime in the Valley, 1242 01:24:26,520 --> 01:24:29,308 to take a picture next to Steve's car. 1243 01:24:30,607 --> 01:24:34,692 ♪ One more cup of coffee before I go 1244 01:24:34,820 --> 01:24:37,312 ♪ To the valley below 1245 01:24:41,618 --> 01:24:45,362 He was a hero in the Valley because he made buckets of money, 1246 01:24:45,497 --> 01:24:46,908 but unlike Bill Gates, 1247 01:24:47,040 --> 01:24:50,829 Jobs told people that giving away money was a waste of time. 1248 01:24:50,961 --> 01:24:56,923 Under Jobs, Apple terminated its philanthropic programs. 1249 01:24:57,050 --> 01:25:00,168 Jobs kept acting as if Apple was a start-up, 1250 01:25:00,345 --> 01:25:04,635 but by 2010, it was one of the most valuable companies in the world. 1251 01:25:05,684 --> 01:25:09,223 Among the rich and famous, Jobs was a compelling character. 1252 01:25:09,396 --> 01:25:14,733 A counter-culture businessman. But what were his values as a citizen? 1253 01:25:14,860 --> 01:25:17,443 Was he interested in power to change the world 1254 01:25:17,571 --> 01:25:20,814 or the right to have power without responsibility? 1255 01:25:24,411 --> 01:25:27,119 There was an experience where actually a couple of people 1256 01:25:27,247 --> 01:25:28,954 were fighting over you, were they not? 1257 01:25:29,082 --> 01:25:31,995 - Oh, man. I went to Palm. - Then a bunch of people went to Palm. 1258 01:25:32,127 --> 01:25:33,584 Yeah. Yeah. 1259 01:25:33,712 --> 01:25:36,375 - Was Steve pissed off? - Oh, man. Yeah. 1260 01:25:36,506 --> 01:25:40,750 I gave my resignation. It went up the chain, like you do. 1261 01:25:40,886 --> 01:25:45,256 And just sure as hell, like 20 minutes later, 1262 01:25:45,432 --> 01:25:48,675 I get a call from Steve's admin, "Steve wants to see you." 1263 01:25:49,895 --> 01:25:53,059 He sits down. He just kind of sits there, and he looks at me. 1264 01:25:53,190 --> 01:25:56,604 And I start to kind of launch into my little spiel that I had planned, 1265 01:25:56,735 --> 01:26:00,854 and he says, "You know you fucked up Bluetooth, right?" 1266 01:26:00,989 --> 01:26:03,106 I just stopped. I'm like... 1267 01:26:03,325 --> 01:26:06,739 And then we go through this half-hour mind fuck. 1268 01:26:06,870 --> 01:26:09,078 It becomes very "Godfather" - esque. 1269 01:26:09,206 --> 01:26:12,415 You know, "You're part of my family, and Apple's my family, 1270 01:26:12,542 --> 01:26:14,249 and you don't want to leave my family." 1271 01:26:14,419 --> 01:26:18,333 And at the end, he says, "If you choose to leave my family," 1272 01:26:18,507 --> 01:26:23,172 should you decide to take so much as one member of my family away from me, 1273 01:26:23,303 --> 01:26:25,420 "I will personally take you down." 1274 01:26:26,556 --> 01:26:28,593 To keep his family together, 1275 01:26:28,725 --> 01:26:33,561 Jobs was willing to let Apple bend or even break the law. 1276 01:26:33,689 --> 01:26:36,853 In 2011, a class-action lawsuit 1277 01:26:36,983 --> 01:26:40,272 filed by more than 64,000 Silicon Valley workers 1278 01:26:40,445 --> 01:26:44,689 revealed that Jobs, along with the CEOs of Google, Intel and Adobe 1279 01:26:44,825 --> 01:26:48,364 had colluded not to recruit each other's employees. 1280 01:26:48,537 --> 01:26:51,655 If you're working there at Apple, or wherever you're working, 1281 01:26:51,790 --> 01:26:54,749 you've got another company that you might move to 1282 01:26:54,876 --> 01:26:57,789 and take your expertise with you and earn more money at that company. 1283 01:26:57,921 --> 01:27:00,834 They won't accept your résumé. They won't return your phone calls. 1284 01:27:00,966 --> 01:27:03,504 Right. Because they won't let them poach each other. 1285 01:27:03,635 --> 01:27:06,048 - Correct. - That's not a legitimate situation. 1286 01:27:06,179 --> 01:27:08,045 You know what some of the strongest evidence was? 1287 01:27:08,181 --> 01:27:10,468 E-mails of the late, great Steve Jobs. 1288 01:27:10,600 --> 01:27:12,262 - Really? - Tons of them, yes. 1289 01:27:17,733 --> 01:27:20,692 Less than a month after Google co-founder Sergey Brin 1290 01:27:20,819 --> 01:27:22,856 received this threat from Jobs, 1291 01:27:22,988 --> 01:27:28,529 Google circulated a "do not cold call" list that included Apple. 1292 01:27:28,660 --> 01:27:31,198 Two years later, Google tried again, 1293 01:27:31,329 --> 01:27:34,197 and Jobs e-mailed Google CEO Eric Schmidt 1294 01:27:34,332 --> 01:27:36,745 to remind him of their gentlemen's agreement. 1295 01:27:39,254 --> 01:27:41,587 Schmidt placated Jobs by assuring him 1296 01:27:41,715 --> 01:27:45,584 that the culprit would be fired within the hour. 1297 01:27:45,719 --> 01:27:48,427 When Jobs learned that the woman had been canned, 1298 01:27:48,680 --> 01:27:52,390 he showed his pleasure in two efficient keystrokes. 1299 01:27:58,023 --> 01:28:01,266 Someone's going to come out of the door. Do we want a shot of that? 1300 01:28:05,530 --> 01:28:08,022 Are you taking a picture of the inside? 1301 01:28:08,158 --> 01:28:10,616 We're taking a picture of the Apple logo on the door. 1302 01:28:10,744 --> 01:28:14,203 OK, we cannot have people taking pictures. 1303 01:28:14,331 --> 01:28:16,072 Tonight, a Wall Street scandal 1304 01:28:16,208 --> 01:28:19,042 has reached deep into an iconic American company, 1305 01:28:19,169 --> 01:28:20,705 the Apple Corporation. 1306 01:28:20,837 --> 01:28:23,295 It all centers on an alleged scheme 1307 01:28:23,423 --> 01:28:27,667 to under-report Apple's expenses by $40 million, 1308 01:28:27,803 --> 01:28:29,544 including $20 million 1309 01:28:29,679 --> 01:28:33,218 that went straight to the company's celebrity CEO Steve Jobs, 1310 01:28:33,391 --> 01:28:38,227 in the form of what are known as backdated options. 1311 01:28:38,355 --> 01:28:42,895 I first met Steve Jobs shortly after I became editor of Fortune magazine. 1312 01:28:43,944 --> 01:28:46,652 "And I said," Listen, we'd love to have a good relationship with Apple 1313 01:28:46,780 --> 01:28:47,780 and do stories about you." 1314 01:28:47,906 --> 01:28:50,489 And he said, "Look, this is how it's going to work." 1315 01:28:50,617 --> 01:28:52,779 "You know, you want to do a story about us, 1316 01:28:52,911 --> 01:28:56,780 you call us up, propose it, you know, we'll think about it." 1317 01:28:56,915 --> 01:28:59,783 "We'll basically come up with the ideas with you," 1318 01:28:59,918 --> 01:29:02,160 or come up with the ideas, we'll call you, 1319 01:29:02,295 --> 01:29:06,960 "we'll figure out who the writer is going to be on your staff to do the story." 1320 01:29:07,092 --> 01:29:11,211 And I said, "Well, you know, Steve, that's not really how we do things." 1321 01:29:11,346 --> 01:29:13,429 And he goes, "That's how you do things with Apple." 1322 01:29:14,432 --> 01:29:15,432 So I say to myself, 1323 01:29:15,517 --> 01:29:18,601 "Why don't we do a story about the stock options?" 1324 01:29:18,728 --> 01:29:21,095 "Because no one's really figured it out." 1325 01:29:21,231 --> 01:29:25,851 So, I decided to put one of our top investigative reporters on the story, 1326 01:29:25,986 --> 01:29:26,986 Peter Elkind. 1327 01:29:27,112 --> 01:29:30,526 Steve Jobs had a very talented group of key lieutenants around him. 1328 01:29:30,699 --> 01:29:34,989 And he wanted give his people stock option grants that were so big, 1329 01:29:35,120 --> 01:29:37,328 that they wouldn't even think about going somewhere else 1330 01:29:37,455 --> 01:29:39,367 because the upside was so enormous. 1331 01:29:39,499 --> 01:29:44,619 The key thing is if the stock goes up, 1332 01:29:44,754 --> 01:29:47,872 which we always hope it does, 1333 01:29:48,008 --> 01:29:53,299 then the golden handcuffs are dramatically increased, 1334 01:29:53,430 --> 01:29:56,639 which is what I was hoping would happen. 1335 01:29:57,517 --> 01:29:59,725 To make those option deals even sweeter, 1336 01:29:59,853 --> 01:30:04,063 companies would allow executives to buy stock on dates in the past 1337 01:30:04,190 --> 01:30:05,351 when the price was low 1338 01:30:05,483 --> 01:30:08,442 so executives could make millions in the blink of an eye. 1339 01:30:08,570 --> 01:30:10,357 This was called "backdating." 1340 01:30:10,488 --> 01:30:12,320 And it seemed like the perfect solution, 1341 01:30:12,532 --> 01:30:13,532 except for one thing. 1342 01:30:13,700 --> 01:30:16,943 If not properly reported, backdating is illegal. 1343 01:30:17,078 --> 01:30:20,571 200 US public companies are under investigation 1344 01:30:20,749 --> 01:30:24,914 over charges of backdated stock options for their senior executives. 1345 01:30:26,296 --> 01:30:28,128 Backdating was a dicey game, 1346 01:30:28,256 --> 01:30:30,919 and it landed several executives in jail for fraud, 1347 01:30:31,051 --> 01:30:34,544 but it became a frequent practice at Apple under Jobs. 1348 01:30:34,721 --> 01:30:37,134 Apple eventually conducted an internal investigation 1349 01:30:37,265 --> 01:30:38,551 and found thousands of cases 1350 01:30:38,725 --> 01:30:40,933 where stock options had been handled inappropriately. 1351 01:30:41,061 --> 01:30:43,599 None of that had taken place according to the company's own report 1352 01:30:43,855 --> 01:30:46,063 before Steve Jobs had returned there. 1353 01:30:46,191 --> 01:30:49,229 A key advisor on many of the troubled backdating schemes 1354 01:30:49,361 --> 01:30:52,980 was a powerful Silicon Valley attorney, Larry Sonsini. 1355 01:30:53,114 --> 01:30:55,197 Larry Sonsini had kind of 1356 01:30:55,325 --> 01:30:57,487 spread this dark art in the world of Silicon Valley. 1357 01:30:57,619 --> 01:31:01,363 He's the guy who whispered to the CEOs of all the top tech companies, 1358 01:31:01,539 --> 01:31:03,030 "Here's how you can do this." 1359 01:31:03,166 --> 01:31:05,909 He was certainly very close to Steve Jobs. 1360 01:31:06,044 --> 01:31:09,537 Sonsini had known Jobs since Apple went public in 1980 1361 01:31:09,714 --> 01:31:13,298 and had been a board member at Pixar when it created a vast program 1362 01:31:13,426 --> 01:31:16,635 of brazenly backdated options for top executives. 1363 01:31:16,805 --> 01:31:19,593 Yet despite Jobs's long history with backdating, 1364 01:31:19,724 --> 01:31:23,092 Apple's own investigation, led by Al Gore, 1365 01:31:23,228 --> 01:31:26,016 absolved Jobs of any wrongdoing. 1366 01:31:26,147 --> 01:31:28,855 Their conclusion was that Steve Jobs didn't appreciate 1367 01:31:28,984 --> 01:31:31,522 the accounting implications of the issue. 1368 01:31:31,653 --> 01:31:34,817 I know you're not an accountant, but do you have an understanding 1369 01:31:34,990 --> 01:31:38,609 as to what generally accepted accounting principles are? 1370 01:31:38,785 --> 01:31:40,447 Not really. 1371 01:31:40,578 --> 01:31:42,410 Jobs's accounting naiveté 1372 01:31:42,539 --> 01:31:45,407 would be challenged by his own CFO, Fred Anderson. 1373 01:31:45,542 --> 01:31:48,000 A hero during Apple's comeback, 1374 01:31:48,128 --> 01:31:52,623 Anderson was one exec who took the fall for backdating. 1375 01:31:52,799 --> 01:31:55,917 As Apple's chief financial officer, Mr Anderson, 1376 01:31:56,052 --> 01:31:59,295 you had overall responsibility to ensure that the company 1377 01:31:59,431 --> 01:32:03,095 complied with all financial reporting requirements, true? 1378 01:32:03,226 --> 01:32:05,343 On advice of council, 1379 01:32:05,478 --> 01:32:09,563 I decline to answer based on my Fifth Amendment rights. 1380 01:32:09,691 --> 01:32:11,273 When the SEC investigated, 1381 01:32:11,401 --> 01:32:14,610 Apple effectively threw Anderson under the bus. 1382 01:32:14,779 --> 01:32:17,112 He was forced to resign from Apple's board 1383 01:32:17,240 --> 01:32:20,404 and to pay $3.6 million in penalties. 1384 01:32:20,535 --> 01:32:24,279 But in a very unusual statement, Anderson's lawyer made it clear 1385 01:32:24,414 --> 01:32:28,829 that Fred had relied on statements by Jobs that turned out to be false 1386 01:32:28,960 --> 01:32:32,829 and that Anderson had explained the dangers of backdating to Jobs. 1387 01:32:32,964 --> 01:32:37,550 Now, this contradicted exactly what Jobs and the company had maintained 1388 01:32:37,677 --> 01:32:40,215 which was that Steve Jobs didn't appreciate why this was a problem. 1389 01:32:40,346 --> 01:32:42,929 I think the notion that Steve Jobs knew nothing 1390 01:32:43,058 --> 01:32:45,596 and Fred Anderson and Nancy Heinen were entirely responsible 1391 01:32:45,852 --> 01:32:46,852 is ridiculous. 1392 01:32:47,979 --> 01:32:49,345 The company has confirmed 1393 01:32:49,481 --> 01:32:52,474 that Jobs himself was awarded backdated options 1394 01:32:52,609 --> 01:32:55,602 that carried a false date in October 2001. 1395 01:32:55,737 --> 01:32:58,571 According to Apple's own report to the SEC, 1396 01:32:58,698 --> 01:33:03,159 "The award was" improperly recorded as occurring at a special board meeting 1397 01:33:03,286 --> 01:33:06,870 when in fact such a board meeting did not occur." 1398 01:33:06,998 --> 01:33:12,960 A fictitious board meeting that awarded Jobs 7.5 million options. 1399 01:33:13,088 --> 01:33:15,045 Just what was going on? 1400 01:33:15,173 --> 01:33:17,165 At first, all fingers pointed 1401 01:33:17,300 --> 01:33:19,963 to another member of the Apple comeback team, 1402 01:33:20,095 --> 01:33:21,757 General Counsel Nancy Heinen, 1403 01:33:21,930 --> 01:33:25,514 who had certified the minutes of the phony board meeting. 1404 01:33:25,642 --> 01:33:28,885 Like Anderson, Heinen would settle with the SEC 1405 01:33:29,020 --> 01:33:31,683 without admitting or denying guilt. 1406 01:33:31,856 --> 01:33:37,147 But her silence raised questions. Would she have just decided on her own 1407 01:33:37,278 --> 01:33:41,898 to fake a board meeting in order to enrich Steve Jobs? 1408 01:33:42,033 --> 01:33:44,070 Who wanted this done? 1409 01:33:45,578 --> 01:33:51,074 As we've seen in the discussions of the past hour, 1410 01:33:51,209 --> 01:33:55,954 I spent a lot of time trying to take care of people at Apple 1411 01:33:56,089 --> 01:34:02,962 and to, you know, surprise and delight them 1412 01:34:03,096 --> 01:34:08,342 with what a career at Apple could mean to them and their families. 1413 01:34:09,310 --> 01:34:13,350 And I felt that the board wasn't really doing the same with me. 1414 01:34:13,481 --> 01:34:17,316 - Right. - So I was... 1415 01:34:20,697 --> 01:34:24,566 hurt, I suppose would be the most accurate word. 1416 01:34:24,701 --> 01:34:27,990 I'd been working, you know, I don't know, 1417 01:34:28,121 --> 01:34:30,613 four years, five years of my life, 1418 01:34:30,748 --> 01:34:34,583 and not seeing my family very much and stuff. 1419 01:34:34,711 --> 01:34:37,169 And I just felt like 1420 01:34:37,297 --> 01:34:40,131 there's nobody looking out for me here, you know? 1421 01:34:40,258 --> 01:34:41,419 Right. OK. 1422 01:34:41,551 --> 01:34:47,843 So, I wanted them to do something, and so we talked about it. 1423 01:34:48,016 --> 01:34:51,134 There's no question that the directives came from him. 1424 01:34:51,269 --> 01:34:53,602 Yet, when the SEC investigated, 1425 01:34:53,730 --> 01:34:56,973 it was as if he was immune. 1426 01:34:58,026 --> 01:35:01,940 I'd wished they'd have come to me and said, 1427 01:35:02,071 --> 01:35:05,690 "Steve, we've got this new grant for you," 1428 01:35:05,825 --> 01:35:08,693 without me having to suggest anything 1429 01:35:08,828 --> 01:35:12,947 or be involved in anything or negotiate anything. 1430 01:35:13,082 --> 01:35:16,120 That would have been much better from the company's point of view 1431 01:35:16,252 --> 01:35:23,045 because it would have made me feel better at that time. 1432 01:35:24,886 --> 01:35:26,673 According to one analyst, 1433 01:35:26,804 --> 01:35:28,761 if Jobs had gone to jail for backdating, 1434 01:35:28,890 --> 01:35:32,850 the company's value would have dropped by $22 billion. 1435 01:35:35,521 --> 01:35:37,979 But Jobs was Apple's indispensable man, 1436 01:35:38,107 --> 01:35:43,353 and Apple, Silicon Valley's indispensable company. 1437 01:35:43,488 --> 01:35:46,981 A cornerstone of the entire American economy. 1438 01:35:47,116 --> 01:35:49,859 But just how American was Apple? 1439 01:35:51,496 --> 01:35:54,239 Do you swear that the testimony you're about to give will be... 1440 01:35:54,374 --> 01:35:56,832 When the US Senate questioned Jobs's successor, 1441 01:35:57,001 --> 01:35:59,493 Tim Cook, about the company's tax practices, 1442 01:35:59,629 --> 01:36:03,088 many of the subcommittee members took a moment to state, 1443 01:36:03,216 --> 01:36:08,086 for the record, just how tough they were willing to be. 1444 01:36:08,221 --> 01:36:13,762 I love Apple, and I'm very proud of Apple as an American company. 1445 01:36:13,893 --> 01:36:17,307 Apple is an American success story. 1446 01:36:17,522 --> 01:36:22,392 Its products are justifiably well-known and used throughout the world. 1447 01:36:22,527 --> 01:36:25,861 Just like millions around the world, I carry an iPhone in my pocket. 1448 01:36:26,030 --> 01:36:27,862 What may not be so well-known 1449 01:36:28,032 --> 01:36:32,402 is that Apple also has a highly developed tax-avoidance system, 1450 01:36:32,537 --> 01:36:36,577 a system through which it has amassed more than $100 billion 1451 01:36:36,708 --> 01:36:39,621 in off-shore cash in a tax haven. 1452 01:36:41,796 --> 01:36:45,164 Apple found its tax haven in the green fields of Ireland 1453 01:36:45,300 --> 01:36:49,294 where Jobs and his team set up holding companies in the early 1980s. 1454 01:36:49,429 --> 01:36:52,467 The scheme is known as a "Double Irish". 1455 01:36:53,683 --> 01:36:55,390 Holly Hill industrial estate 1456 01:36:55,518 --> 01:36:58,226 can scarcely be compared to California's Silicon Valley. 1457 01:36:58,354 --> 01:37:02,564 There is the feeling that Apple of Cork may become something of a Silicon Hill. 1458 01:37:07,405 --> 01:37:12,946 Today, Apple holds more than $137 billion of its profits overseas. 1459 01:37:13,119 --> 01:37:18,080 Much of it in two small Irish companies, one with no employees. 1460 01:37:18,207 --> 01:37:22,372 While the actual cash is held and invested by New York banks, 1461 01:37:22,503 --> 01:37:26,338 the paper profits are steered through an office park in Reno, Nevada, 1462 01:37:26,466 --> 01:37:31,257 and then back to the Emerald Isle where it's taxed at rates less than 1%. 1463 01:37:32,388 --> 01:37:34,596 Senator, we're proud that all of our R&D, 1464 01:37:34,724 --> 01:37:36,807 or the vast majority of it, is in the United States. 1465 01:37:36,934 --> 01:37:40,018 I know, but the profits that result from it are sitting in Ireland 1466 01:37:40,188 --> 01:37:43,852 in corporations that you control that don't pay taxes. 1467 01:37:44,025 --> 01:37:48,486 Part of the mythology of these new companies 1468 01:37:48,613 --> 01:37:53,699 was that they in some way reflected something about America. 1469 01:37:55,119 --> 01:37:58,829 Both Google and Apple have played on the idea 1470 01:37:58,956 --> 01:38:02,245 of political virtue as part of selling their company. 1471 01:38:02,377 --> 01:38:09,170 So then to find out they weren't about political virtue is distressing. 1472 01:38:14,055 --> 01:38:19,016 Steve Jobs said he wanted to change the world, but into what? 1473 01:38:20,144 --> 01:38:23,763 Companies all over the world make choices on how to treat workers, 1474 01:38:23,898 --> 01:38:26,891 what to give back and where to put their money. 1475 01:38:27,026 --> 01:38:29,188 What were Steve's choices? 1476 01:38:29,320 --> 01:38:32,438 In meditation, he found simplicity. 1477 01:38:32,573 --> 01:38:38,194 He loved the idea of "Be Here Now." But where was "here?" 1478 01:38:39,747 --> 01:38:42,865 Ladies and gentlemen, we have just landed 1479 01:38:43,000 --> 01:38:46,084 at Beijing International Airport. 1480 01:38:53,469 --> 01:38:56,678 I thought it was important to cover China 1481 01:38:56,806 --> 01:39:01,267 because Apple has all of its products made there. 1482 01:39:01,394 --> 01:39:04,307 I mean, they design their own products, 1483 01:39:04,439 --> 01:39:06,772 but the manufacturing is done in China, 1484 01:39:06,899 --> 01:39:10,768 and so it's caught up in another country's industrial revolution. 1485 01:39:10,903 --> 01:39:13,646 And a lot of that is out of Apple's control. 1486 01:39:19,662 --> 01:39:22,700 Four workers died and 77 were wounded 1487 01:39:22,832 --> 01:39:25,916 in explosions at two Apple supplier factories 1488 01:39:26,043 --> 01:39:28,126 caused by careless safety procedures. 1489 01:39:29,505 --> 01:39:31,747 The solvents used to sparkle Apple's touch screens 1490 01:39:31,883 --> 01:39:35,376 were powerful but dangerous, causing nerve damage 1491 01:39:35,511 --> 01:39:39,425 that led to weakness and loss of touch in workers. 1492 01:39:39,557 --> 01:39:44,302 They complained about low wages and pressure to meet Apple's deadlines. 1493 01:39:45,354 --> 01:39:48,142 In the Chinese factories of many tech companies, 1494 01:39:48,316 --> 01:39:50,273 copper, chromium and other heavy metals 1495 01:39:50,401 --> 01:39:54,361 saturate the run-off that flows into local waterways. 1496 01:39:54,489 --> 01:39:56,651 Sometimes chemical levels are so high 1497 01:39:56,782 --> 01:39:59,616 that sewage treatment plants can't adequately clean the water 1498 01:39:59,744 --> 01:40:01,827 for it ever to be used again. 1499 01:40:03,915 --> 01:40:09,411 In 2010, Chinese activist Ma Jun contacted all the tech manufacturers 1500 01:40:09,545 --> 01:40:13,505 to discuss the issue and even wrote to Jobs personally. 1501 01:40:13,633 --> 01:40:17,923 All the companies ultimately responded except one. Apple. 1502 01:40:18,054 --> 01:40:20,717 It wasn't until Jobs left the company 1503 01:40:20,848 --> 01:40:24,057 that Apple even agreed to speak to Ma Jun. 1504 01:40:29,982 --> 01:40:32,269 Foxconn is Apple's top supplier, 1505 01:40:32,401 --> 01:40:36,771 so it all goes downhill from there in terms of the standards, 1506 01:40:36,906 --> 01:40:38,488 in terms of everything. 1507 01:40:40,535 --> 01:40:43,653 These young people come from the countryside 1508 01:40:43,788 --> 01:40:49,284 under unimaginably poor conditions, looking for a better life. 1509 01:40:54,173 --> 01:40:56,916 Sun Danyong, nicknamed Yong, 1510 01:40:57,051 --> 01:40:59,839 came to Foxconn from a small mountain village. 1511 01:41:02,473 --> 01:41:04,681 Placed in the product communications department, 1512 01:41:04,809 --> 01:41:08,177 he was responsible for the security of iPhone prototypes 1513 01:41:08,437 --> 01:41:10,929 bound for Apple's headquarters in Silicon Valley. 1514 01:41:11,065 --> 01:41:17,357 In 2009, an iPhone 4 prototype went missing on Yong's watch. 1515 01:41:24,745 --> 01:41:28,489 Sun Danyong was the first factory worker 1516 01:41:28,624 --> 01:41:31,037 who came under the spotlight. 1517 01:41:31,168 --> 01:41:37,381 What makes his story incredibly vivid is that in today's day and age, 1518 01:41:37,508 --> 01:41:41,047 there's CCTV cameras recording where his movements were. 1519 01:41:41,178 --> 01:41:45,798 He had a conversation with his friends on the Chinese Twitter site, 1520 01:41:45,933 --> 01:41:49,847 and you could really track what had happened. 1521 01:41:50,855 --> 01:41:53,017 Yong searched high and low for the prototype 1522 01:41:53,232 --> 01:41:56,396 before reporting it missing to Foxconn security. 1523 01:41:57,111 --> 01:42:00,275 That evening, officials took him into an interrogation room 1524 01:42:00,448 --> 01:42:01,905 where he was assaulted 1525 01:42:02,033 --> 01:42:05,617 and was told police would arrive the next morning to question him. 1526 01:42:06,662 --> 01:42:10,952 Yong was finally permitted to leave the factory at 10:41pm. 1527 01:42:11,083 --> 01:42:13,450 He wandered to an internet cafe 1528 01:42:13,586 --> 01:42:16,795 where he chatted online with his friends. 1529 01:42:32,772 --> 01:42:35,640 He logged off around 1:30 in the morning. 1530 01:42:37,026 --> 01:42:39,894 Soon after, security cameras spotted him in an elevator 1531 01:42:40,029 --> 01:42:42,817 in his apartment complex. 1532 01:42:42,948 --> 01:42:46,191 He got out on the 12th floor and texted his girlfriend. 1533 01:43:02,927 --> 01:43:09,720 At 3:33am, security cameras recorded Sun Danyong jumping to his death. 1534 01:43:15,648 --> 01:43:19,517 Over a period of two years or so, there were 18 suicides. 1535 01:43:19,652 --> 01:43:24,989 Foxconn set up these nets to catch people who fall off. 1536 01:43:25,116 --> 01:43:27,403 People were jumping off of the buildings, 1537 01:43:27,535 --> 01:43:29,822 so they were going to prevent people from dying 1538 01:43:29,954 --> 01:43:32,992 by having safety nets to catch them. 1539 01:43:38,963 --> 01:43:41,797 You know, they've had, if you count the attempted suicides, 1540 01:43:41,924 --> 01:43:43,881 13 so far this year. 1541 01:43:44,009 --> 01:43:49,721 And while that is still... They have 400,000 people at this place. 1542 01:43:49,849 --> 01:43:53,843 So, 13 out of 400,000 is 26 per year so far. 1543 01:43:53,978 --> 01:44:00,100 For 400,000 people or, you know, let's say seven per 100,000 people, 1544 01:44:00,234 --> 01:44:04,319 that's still under the US suicide rate of 11 per 100,000 people, 1545 01:44:04,488 --> 01:44:06,104 but it's really troubling. 1546 01:44:06,240 --> 01:44:08,152 Right. It's in one place, too. 1547 01:44:08,284 --> 01:44:10,697 Well, you measure it by number of people. 1548 01:44:10,911 --> 01:44:14,825 You measure it by numbers of people. So, we're all over this. 1549 01:44:14,957 --> 01:44:18,701 And it's... It's very troubling. 1550 01:44:18,836 --> 01:44:22,329 So, we're over there trying to understand what's happening, 1551 01:44:22,506 --> 01:44:24,998 and more importantly, trying to understand how we can help. 1552 01:44:31,015 --> 01:44:34,725 Apple isn't the only company to manufacture in China, 1553 01:44:34,894 --> 01:44:38,808 but it is different in one way. Its enormous profit margin. 1554 01:44:38,939 --> 01:44:43,024 The profit on every iPhone 4 was over $300. 1555 01:44:43,194 --> 01:44:48,110 Yet Apple paid its Chinese workforce less than $12 per phone. 1556 01:44:48,240 --> 01:44:51,950 If Jobs had really "thought different," shouldn't he have cared more 1557 01:44:52,077 --> 01:44:53,909 about the people who touched the iPhones 1558 01:44:54,038 --> 01:44:58,032 before they appeared in the hands of Apple's customers? 1559 01:45:06,133 --> 01:45:09,968 When I was writing critical stories about Apple, 1560 01:45:10,095 --> 01:45:13,259 the mail would be 80% hate mail. 1561 01:45:15,559 --> 01:45:21,146 Even the most reasoned, judicious criticism 1562 01:45:21,273 --> 01:45:27,395 about labor practices in China, for crying out loud, it didn't matter. 1563 01:45:27,571 --> 01:45:30,063 People didn't want to hear it. 1564 01:45:30,199 --> 01:45:33,943 They loved this company. They loved its products. 1565 01:45:34,078 --> 01:45:37,697 They loved the status symbol of having these things in their hand 1566 01:45:37,832 --> 01:45:41,246 and looking at it all the time, and it just felt cool, 1567 01:45:41,377 --> 01:45:46,122 and they'd stood in line for two days to buy one, 1568 01:45:46,257 --> 01:45:48,670 and they didn't want to hear it. 1569 01:45:54,431 --> 01:45:57,765 I was one of those people who had to have an iPhone. 1570 01:45:57,893 --> 01:46:00,601 I didn't want to hear about other products, 1571 01:46:00,729 --> 01:46:02,470 and I believed against all reason 1572 01:46:02,648 --> 01:46:06,016 that owning an iPhone made me part of something better. 1573 01:46:06,151 --> 01:46:09,986 And when it was in my pocket, for every idle moment, 1574 01:46:10,114 --> 01:46:14,529 my hand was drawn to it, like Frodo's hand to the ring. 1575 01:46:15,411 --> 01:46:18,404 The real magic of it is that these myths 1576 01:46:18,539 --> 01:46:24,001 are surrounding a company that makes phones. 1577 01:46:25,504 --> 01:46:27,917 A phone is not a mythical device. 1578 01:46:29,091 --> 01:46:31,083 Um... 1579 01:46:31,218 --> 01:46:38,842 And it sort of makes you wonder less about Apple than about us. 1580 01:46:40,561 --> 01:46:43,850 The myth-making around technology in general 1581 01:46:43,981 --> 01:46:50,854 allows the technologist to do things that would be viewed as heinous 1582 01:46:50,988 --> 01:46:54,152 if they were done by other kinds of companies. 1583 01:46:56,160 --> 01:46:58,402 This is a story that's amazing. 1584 01:46:58,537 --> 01:47:03,032 It's got theft, it's got buying stolen property, it's got extortion. 1585 01:47:03,167 --> 01:47:05,830 I'm sure there's sex in there somewhere, you know? 1586 01:47:05,961 --> 01:47:07,327 Really? 1587 01:47:07,463 --> 01:47:10,456 So somebody should make a movie out of this. 1588 01:47:10,591 --> 01:47:13,049 If you were to make a movie about it, 1589 01:47:13,177 --> 01:47:16,670 the first scene would be set in a beer garden in Silicon Valley. 1590 01:47:16,805 --> 01:47:19,593 As he swilled a few steins of Pilsner, 1591 01:47:19,767 --> 01:47:23,226 Apple's Gray Powell was testing out a new iPhone prototype. 1592 01:47:25,105 --> 01:47:28,598 But when Powell staggered out of the bar, he forgot one thing. 1593 01:47:28,776 --> 01:47:30,517 The iPhone. 1594 01:47:30,694 --> 01:47:35,814 It was found on a bar stool by a college student named Brian Hogan. 1595 01:47:37,159 --> 01:47:39,071 And this e-mail comes into our tip box, 1596 01:47:39,203 --> 01:47:43,538 and there was this guy claiming that he had this new iPhone prototype. 1597 01:47:43,707 --> 01:47:47,872 Getting inside Apple's security fort, 1598 01:47:48,003 --> 01:47:50,461 and look at something that is under wrap. 1599 01:47:50,589 --> 01:47:54,424 But back then, when Steve Jobs was at the helm and in his full power, 1600 01:47:54,551 --> 01:47:56,543 it was impossible to get anything from them. 1601 01:47:56,720 --> 01:47:58,632 It was incredibly exciting. 1602 01:47:58,806 --> 01:48:01,719 At that point, Apple didn't have a whole lot of leaks. 1603 01:48:01,850 --> 01:48:04,843 And then I go to Nick and I say, 1604 01:48:04,979 --> 01:48:08,063 "We think it's the real thing, and they want their money." 1605 01:48:08,190 --> 01:48:10,182 And Nick said, "Anything you want." 1606 01:48:10,317 --> 01:48:14,106 For us, there's no question as to whether we write the story or not. 1607 01:48:14,238 --> 01:48:17,402 That's what was so disturbing, I think, to Steve Jobs, 1608 01:48:17,533 --> 01:48:19,775 was that he'd been used to having 1609 01:48:19,910 --> 01:48:22,323 a much more controlled relationship with the press. 1610 01:48:22,454 --> 01:48:25,162 Our plan was to take pictures of it, 1611 01:48:25,290 --> 01:48:28,499 write about it, and then return it back to Apple. 1612 01:48:28,627 --> 01:48:31,165 Hey, I'm Jason Chen. This is the new iPhone. 1613 01:48:31,296 --> 01:48:33,333 Here are some of the new features. 1614 01:48:33,465 --> 01:48:36,879 In the beginning, it was OK. Only nerds looking at it, I guess. 1615 01:48:37,011 --> 01:48:38,422 And then the story started to pick up. 1616 01:48:40,514 --> 01:48:43,848 You know, it was the biggest scoop in tech in history. 1617 01:48:46,228 --> 01:48:49,312 "Hi, this is Steve Jobs. I want my phone back." 1618 01:48:49,440 --> 01:48:51,557 And it was in a really charming voice. 1619 01:48:51,692 --> 01:48:55,936 And it's same way you'd ask for, you know, a hat you'd lent a friend. 1620 01:48:56,071 --> 01:49:00,782 I'd met him a couple of times before. It was his voice, unmistakably. 1621 01:49:00,909 --> 01:49:02,400 He said, "You know, I'm not mad at you." 1622 01:49:02,536 --> 01:49:04,573 "It's someone we worked with who lost it." 1623 01:49:04,705 --> 01:49:06,697 "But you've had your fun, and we need this phone back 1624 01:49:06,874 --> 01:49:08,490 before it gets into the wrong hands." 1625 01:49:08,625 --> 01:49:12,118 And at that point, I was thinking, "Isn't it already in the wrong hands?" 1626 01:49:17,551 --> 01:49:21,886 Nick at that moment said, "Ask for a letter." 1627 01:49:22,014 --> 01:49:24,006 "Ask for an official letter asking for it." 1628 01:49:24,141 --> 01:49:26,679 "We need the actual confirmation that this is the real thing." 1629 01:49:26,894 --> 01:49:29,932 The next call, he said he didn't want to claim it. 1630 01:49:30,064 --> 01:49:32,226 He really changed his tone at that point, 1631 01:49:32,357 --> 01:49:34,974 because it would affect the sales of the current model, 1632 01:49:35,194 --> 01:49:36,901 which is kind of disappointing, you know? 1633 01:49:37,029 --> 01:49:39,521 You hear all these stories about this guy not caring about money. 1634 01:49:39,656 --> 01:49:42,069 And he goes, "This is some serious shit." 1635 01:49:42,201 --> 01:49:45,114 "If I have to serve you papers, I'm coming for something, 1636 01:49:45,245 --> 01:49:48,079 and it's going to mean someone in your organization is going to go to jail." 1637 01:49:48,207 --> 01:49:51,291 For a reporter who's got a chip on his shoulder against corporations, 1638 01:49:51,418 --> 01:49:55,037 that's like, "Martyr me. Please, martyr me." 1639 01:49:55,172 --> 01:49:59,257 "I'll go to jail for an iPhone. Like, really." 1640 01:49:59,384 --> 01:50:03,219 He called back later and he said, "OK, we'll get you the letter," 1641 01:50:03,347 --> 01:50:05,555 and he was just resigned and cold. 1642 01:50:05,682 --> 01:50:08,720 So, they sent us the letter, and they sent a lawyer from Apple 1643 01:50:08,894 --> 01:50:11,227 to Jason's house to pick up the phone. 1644 01:50:11,355 --> 01:50:13,563 It was a very cold exchange. 1645 01:50:13,732 --> 01:50:16,270 He said, "I believe you have something of mine," or something. 1646 01:50:16,401 --> 01:50:19,485 And I handed it to him, and he said, "Thank you very much," and he left. 1647 01:50:19,613 --> 01:50:22,481 Was that the end of it, as far as Apple was concerned? 1648 01:50:22,616 --> 01:50:23,948 No, of course not. 1649 01:50:24,076 --> 01:50:27,695 Then all the nightmares started. 1650 01:50:54,773 --> 01:50:58,517 The cops had to bash in the guy's door? 1651 01:50:58,652 --> 01:51:01,941 Don't they know there's an app for that? 1652 01:51:02,072 --> 01:51:04,439 Anyone who'd worked with Jobs before 1653 01:51:04,575 --> 01:51:07,693 would know of other instances where he'd been a bully. 1654 01:51:07,828 --> 01:51:10,616 But this was probably the most public evidence of bullying. 1655 01:51:11,832 --> 01:51:15,451 My wife and I went out for dinner. We came back home, 1656 01:51:15,586 --> 01:51:18,124 and we noticed the garage door was slightly opened. 1657 01:51:18,255 --> 01:51:21,623 You know, and I was wondering, "What's going on?" 1658 01:51:21,758 --> 01:51:24,501 And I opened it all the way, and I noticed there were people inside. 1659 01:51:24,678 --> 01:51:28,171 And I thought, you know, "Holy crap, I'm being robbed." 1660 01:51:28,307 --> 01:51:30,765 And then I looked closer and realized it was cops. 1661 01:51:33,061 --> 01:51:35,769 The cops seized boxes of Chen's personal property 1662 01:51:35,939 --> 01:51:38,682 including four computers, two cellphones 1663 01:51:38,817 --> 01:51:41,400 and a box of his business cards. 1664 01:51:43,155 --> 01:51:48,196 For the Gizmodo movie, this raised questions of plot and motivation. 1665 01:51:48,327 --> 01:51:53,243 Why break down Chen's door after he returned the iPhone? 1666 01:51:53,373 --> 01:51:57,413 They showed me the warrant to search the premises and said, 1667 01:51:57,544 --> 01:51:59,331 "We're part of the REACT team." 1668 01:51:59,463 --> 01:52:02,581 After they searched the house, obviously I went and Googled it. 1669 01:52:02,716 --> 01:52:04,753 The officers who raided Chen's apartment 1670 01:52:04,885 --> 01:52:08,424 were part of a little-known criminal task force called REACT, 1671 01:52:08,555 --> 01:52:11,764 composed of local, state and federal officials 1672 01:52:11,892 --> 01:52:15,385 on the lookout for corporate espionage in Silicon Valley. 1673 01:52:17,397 --> 01:52:20,310 My initial response was, "This is cool. It's Apple." 1674 01:52:21,401 --> 01:52:23,188 Chris Feasel was the deputy DA 1675 01:52:23,320 --> 01:52:25,858 advising REACT on the case. 1676 01:52:26,031 --> 01:52:28,023 After the raid on Chen's apartment, 1677 01:52:28,158 --> 01:52:31,492 Feasel was received at Apple by Jobs himself. 1678 01:52:31,620 --> 01:52:35,660 He was very, very nice, very high-energy. 1679 01:52:36,625 --> 01:52:39,709 We had a back-and-forth about what he wanted to see happen 1680 01:52:39,836 --> 01:52:42,328 versus what some of the realities were about doing a prosecution. 1681 01:52:42,464 --> 01:52:46,583 He was very supportive about whatever choices that we made on the case. 1682 01:52:46,718 --> 01:52:48,755 Where do people come down on this? 1683 01:52:48,887 --> 01:52:51,800 - Where do you come down on it? - Well, I can just tell you what... 1684 01:52:51,932 --> 01:52:58,270 There is an ongoing investigation by the DA, and I'm not current on it. 1685 01:52:58,397 --> 01:53:01,936 He was very involved in it and very interested in it 1686 01:53:02,067 --> 01:53:03,649 and wanted to be kept abreast 1687 01:53:03,777 --> 01:53:06,019 about what was going on in the investigation. 1688 01:53:06,947 --> 01:53:10,440 Jobs had every reason to expect that he would be kept informed 1689 01:53:10,575 --> 01:53:13,613 because REACT wasn't a purely government agency. 1690 01:53:13,745 --> 01:53:15,077 It had a steering committee 1691 01:53:15,247 --> 01:53:19,207 composed of many of the major companies in the Valley. 1692 01:53:19,376 --> 01:53:22,790 In a town so completely dominated by the tech industry, 1693 01:53:22,921 --> 01:53:25,288 had law enforcement become the muscle 1694 01:53:25,424 --> 01:53:27,837 for the largest corporations in the world? 1695 01:53:31,263 --> 01:53:38,352 He was very, very adamant and very passionate about his creation. 1696 01:53:38,478 --> 01:53:42,142 And the only analogy I can think of is if somebody stole your baby, 1697 01:53:42,316 --> 01:53:44,182 you would be very upset about it. 1698 01:53:44,401 --> 01:53:48,862 That's how Mr Jobs felt. Somebody had taken his baby. 1699 01:53:51,366 --> 01:53:53,323 In spite of pressure from Apple, 1700 01:53:53,452 --> 01:53:56,445 the DA decided not to pursue the charges against Chen 1701 01:53:56,580 --> 01:53:59,243 because he hadn't received stolen property. 1702 01:53:59,374 --> 01:54:01,582 He was a journalist doing a story. 1703 01:54:02,961 --> 01:54:06,796 When this whole thing with Gizmodo happened, 1704 01:54:06,923 --> 01:54:11,714 I got a lot of advice from people that said, 1705 01:54:11,845 --> 01:54:18,137 "You shouldn't go after a journalist because they bought stolen property, 1706 01:54:18,268 --> 01:54:22,558 and they tried to extort you. You should let it slide." 1707 01:54:22,689 --> 01:54:27,104 "Apple's a big company now. You don't want the PR." 1708 01:54:27,235 --> 01:54:29,192 "You should let it slide." 1709 01:54:29,321 --> 01:54:34,487 And I thought deeply about this, and I ended up concluding 1710 01:54:34,618 --> 01:54:37,702 that the worst thing that could possibly happen 1711 01:54:37,829 --> 01:54:42,324 as we get big and we get a little more influence in the world, 1712 01:54:42,459 --> 01:54:48,877 is if we change our core values and start letting it slide. 1713 01:54:49,049 --> 01:54:53,214 I can't do that. I'd rather quit. 1714 01:54:54,304 --> 01:54:57,342 What values was Jobs talking about? 1715 01:54:57,474 --> 01:55:02,469 When Apple was taking on IBM, it was David versus Goliath. 1716 01:55:02,646 --> 01:55:08,017 But when Apple became Goliath, to whom was Jobs giving the finger? 1717 01:55:12,656 --> 01:55:17,492 The sad thing is that how many months did he have left after that? 1718 01:55:17,619 --> 01:55:22,990 This was a guy who knew, who knew at the time, 1719 01:55:23,166 --> 01:55:30,164 he was dying, and he dedicated, what, ten minutes of his life 1720 01:55:30,298 --> 01:55:33,336 to talk about these guys who found a phone in a bar 1721 01:55:33,468 --> 01:55:38,259 and then published a story about it? Isn't that a little bit strange? 1722 01:55:41,435 --> 01:55:45,019 My third story is about death. 1723 01:55:46,064 --> 01:55:50,058 About a year ago, I was diagnosed with cancer. 1724 01:55:50,235 --> 01:55:52,227 I had a scan at 7:30 in the morning, 1725 01:55:52,362 --> 01:55:55,446 and it clearly showed a tumor on my pancreas. 1726 01:55:55,574 --> 01:55:57,566 I didn't even know what a pancreas was. 1727 01:55:57,701 --> 01:55:59,283 The doctors told me 1728 01:55:59,411 --> 01:56:03,405 this was almost certainly a type of cancer that is incurable, 1729 01:56:03,540 --> 01:56:07,625 and that I should expect to live no longer than three to six months. 1730 01:56:07,752 --> 01:56:12,338 My doctor advised me to go home and get my affairs in order, 1731 01:56:12,507 --> 01:56:15,841 which is doctor's code for "prepare to die." 1732 01:56:15,969 --> 01:56:17,756 It means to try and tell your kids 1733 01:56:17,888 --> 01:56:21,723 everything you thought you'd have the next ten years to tell them 1734 01:56:21,850 --> 01:56:23,307 in just a few months. 1735 01:56:23,435 --> 01:56:28,601 I lived with that diagnosis all day. Later that evening, I had a biopsy. 1736 01:56:28,732 --> 01:56:32,066 I was sedated, but my wife, who was there, 1737 01:56:32,277 --> 01:56:35,441 told me that when they viewed the cells under a microscope, 1738 01:56:35,572 --> 01:56:38,280 the doctors started crying because it turned out to be 1739 01:56:38,408 --> 01:56:42,743 a very rare form of pancreatic cancer that is curable with surgery. 1740 01:56:42,871 --> 01:56:46,490 I had the surgery and, thankfully, I'm fine now. 1741 01:56:50,128 --> 01:56:52,836 Steve Jobs talked about his cancer very emotionally 1742 01:56:52,964 --> 01:56:56,548 at the Stanford graduation ceremony in 2005. 1743 01:56:56,676 --> 01:56:58,668 And he very clearly told the story 1744 01:56:58,803 --> 01:57:01,341 to make it sound as though he had been diagnosed 1745 01:57:01,515 --> 01:57:04,303 and moved immediately to surgery, and been cured. 1746 01:57:04,434 --> 01:57:05,720 That simply wasn't true. 1747 01:57:05,852 --> 01:57:09,436 What I found out, over a period of months of reporting, 1748 01:57:09,564 --> 01:57:12,307 was that Steve Jobs actually had been diagnosed with cancer 1749 01:57:12,442 --> 01:57:16,186 nine months earlier, and that for a period of nine months, 1750 01:57:16,363 --> 01:57:19,822 he had refused to have the surgery that every medical expert said 1751 01:57:19,950 --> 01:57:22,613 was necessary to increase his prospects for survival. 1752 01:57:22,744 --> 01:57:24,736 Instead of having the surgery, 1753 01:57:24,871 --> 01:57:28,581 he had sought alternative medicine approaches 1754 01:57:28,708 --> 01:57:30,791 to try to cure himself of cancer. 1755 01:57:31,962 --> 01:57:34,705 Entrepreneurs have an almost pathological need 1756 01:57:34,839 --> 01:57:36,751 to control their own fate. 1757 01:57:36,883 --> 01:57:38,169 They'll take any suffering 1758 01:57:38,301 --> 01:57:40,133 if they can just be in charge of their destiny 1759 01:57:40,303 --> 01:57:42,295 and not have it in somebody else's hands. 1760 01:57:42,430 --> 01:57:47,516 Apple's stock has been volatile on rumors about Jobs's health. 1761 01:57:47,644 --> 01:57:49,852 The company's stock was halted for a time, 1762 01:57:49,980 --> 01:57:53,690 then took a big hit when it re-opened in after-hours trading. 1763 01:57:53,817 --> 01:57:55,774 Apple's share prices have dropped 1764 01:57:55,902 --> 01:57:58,815 with every pound that Jobs has lost in recent months. 1765 01:58:00,198 --> 01:58:02,656 Apple really landed into a dicey situation 1766 01:58:02,784 --> 01:58:04,616 when Steve decided to issue a letter saying, 1767 01:58:04,744 --> 01:58:06,610 "Well, you know, nothing's wrong with me." 1768 01:58:06,746 --> 01:58:09,238 "It's just a minor problem," And it wasn't a minor problem. 1769 01:58:10,667 --> 01:58:14,160 Steve Jobs made a point of withholding from the world 1770 01:58:14,337 --> 01:58:16,795 that he faced this illness. 1771 01:58:16,923 --> 01:58:18,710 That's something investors want to know, 1772 01:58:18,842 --> 01:58:20,549 because when you bought Apple stock then, 1773 01:58:20,719 --> 01:58:22,631 you were buying into Steve Jobs. 1774 01:58:22,804 --> 01:58:26,218 He was obligated to tell shareholders right away 1775 01:58:26,349 --> 01:58:27,840 about this serious illness. 1776 01:58:29,019 --> 01:58:31,727 You do personally want to give Steve the privacy, 1777 01:58:31,855 --> 01:58:34,814 but Steve put the spotlight on him, 1778 01:58:34,941 --> 01:58:38,730 and you can't turn that off just because it's inconvenient. 1779 01:58:41,615 --> 01:58:44,358 After the story came out, I saw Steve. 1780 01:58:44,492 --> 01:58:47,075 He started talking about Apple, and he said, 1781 01:58:47,203 --> 01:58:51,447 "You know, Apple is really a company that doesn't have any divisions." 1782 01:58:51,583 --> 01:58:53,700 "We don't have all this bureaucracy." 1783 01:58:53,835 --> 01:58:56,748 And I said, "Steve, that would be a great story for Fortune." 1784 01:58:56,880 --> 01:59:02,501 And he looked at me, and he said, "No." 1785 01:59:02,636 --> 01:59:08,382 "I don't think we can do that story with you. Not now." 1786 01:59:09,976 --> 01:59:11,592 "Not now." 1787 01:59:11,811 --> 01:59:15,725 And then he said, and the whole room went quiet, 1788 01:59:15,857 --> 01:59:19,817 and he said, "you know, we used to..." 1789 01:59:21,154 --> 01:59:24,693 "We used to really be friends with Fortune, 1790 01:59:24,824 --> 01:59:31,788 I used to be friends with Fortune, but not anymore. Not anymore." 1791 01:59:31,915 --> 01:59:35,454 And then I remember these tears came out of his eyes, 1792 01:59:35,585 --> 01:59:37,042 and one was on his glasses, 1793 01:59:37,170 --> 01:59:41,665 and then one, I remember it rolling off his cheek and hitting his shirt, 1794 01:59:41,800 --> 01:59:46,841 and he was just crying, and the whole room was silent. 1795 01:59:48,890 --> 01:59:52,600 Apple CEO Steve Jobs today made his first public appearance 1796 01:59:52,727 --> 01:59:54,593 since getting a new liver five months ago. 1797 01:59:54,729 --> 01:59:55,845 For the first time, 1798 01:59:55,980 --> 01:59:58,893 the 54-year-old CEO publicly acknowledged 1799 01:59:59,025 --> 02:00:02,484 the liver transplant this spring that saved his life. 1800 02:00:02,612 --> 02:00:08,233 Well, I now have the liver of a mid-20s person. 1801 02:00:11,871 --> 02:00:16,491 I'd like to take a moment and thank everybody in the Apple community 1802 02:00:16,626 --> 02:00:20,836 for the heartfelt support I got, too. It really meant a lot. 1803 02:00:20,964 --> 02:00:25,834 And I'd also like to especially thank Tim Cook 1804 02:00:25,969 --> 02:00:29,679 and the entire executive team of Apple. 1805 02:00:29,806 --> 02:00:32,219 They really rose to the occasion 1806 02:00:32,350 --> 02:00:36,469 and ran the company very ably in that difficult period. 1807 02:00:36,604 --> 02:00:38,937 So, thank you, guys. Let's give them a round of applause. 1808 02:00:40,483 --> 02:00:42,065 He loved what he did. 1809 02:00:42,193 --> 02:00:44,230 I do have an e-mail from him saying that. 1810 02:00:44,362 --> 02:00:46,854 He said, you know, "Both of us were fortunate," he said, 1811 02:00:46,990 --> 02:00:49,357 in that we loved what we did 1812 02:00:49,534 --> 02:00:52,277 and we were able to do it for a long time. 1813 02:00:52,412 --> 02:00:54,825 And he said, "What else could you ask for?" 1814 02:00:56,207 --> 02:01:00,918 We're maybe a little more experienced, certainly more beat-up, 1815 02:01:01,045 --> 02:01:04,755 but the core values are the same. 1816 02:01:04,883 --> 02:01:09,503 I don't see why you have to change if you get big. 1817 02:01:09,679 --> 02:01:11,887 Straightforward to me. 1818 02:01:12,015 --> 02:01:14,348 Apple was big. 1819 02:01:14,517 --> 02:01:18,807 By this time, one of the biggest corporations in the world. 1820 02:01:21,274 --> 02:01:24,858 But each time we saw Jobs, he seemed smaller. 1821 02:01:28,364 --> 02:01:32,278 As his devices got stronger, Jobs got weaker. 1822 02:01:32,410 --> 02:01:35,903 It's so much more intimate than a laptop, 1823 02:01:36,039 --> 02:01:39,282 and it's so much more capable than a smartphone 1824 02:01:39,417 --> 02:01:41,249 with this gorgeous, large display. 1825 02:01:41,377 --> 02:01:45,166 I think that a lot of the grief at Jobs's death 1826 02:01:45,298 --> 02:01:50,464 was a fear that we had been very comfortable 1827 02:01:50,637 --> 02:01:52,970 for the last decade in his hands. 1828 02:01:53,097 --> 02:01:57,762 It's phenomenal to hold the internet in your hand. 1829 02:01:57,894 --> 02:02:00,181 That he was going to keep doing these amazing things. 1830 02:02:00,313 --> 02:02:04,273 Now he's gone, and there's no indication that anyone's going to replace him. 1831 02:02:36,975 --> 02:02:38,716 Welcome. 1832 02:02:44,691 --> 02:02:46,057 Thank you. 1833 02:02:58,454 --> 02:03:00,161 Thank you very much. 1834 02:03:03,960 --> 02:03:05,542 - It always helps... - We love you! 1835 02:03:05,712 --> 02:03:09,296 Thank you. 1836 02:03:09,507 --> 02:03:12,796 It always helps, and I appreciate it very much. 1837 02:03:12,927 --> 02:03:16,841 He resigned officially in August. Two weeks earlier, 1838 02:03:16,973 --> 02:03:20,466 Apple had become the highest-valued corporation on Earth. 1839 02:03:20,643 --> 02:03:22,259 And thank you for coming so much. 1840 02:03:22,395 --> 02:03:24,978 We've got a great week planned for you. 1841 02:03:49,923 --> 02:03:52,916 This is a field where one does not write a principia 1842 02:03:53,051 --> 02:03:55,634 which holds up for 200 years 1843 02:03:55,762 --> 02:03:58,095 or paints a painting that'll be looked at for centuries, 1844 02:03:58,222 --> 02:04:01,932 or builds a church that will be admired 1845 02:04:02,060 --> 02:04:03,972 and looked at in astonishment for centuries. 1846 02:04:04,103 --> 02:04:06,436 No, this is a field where one does one's work, 1847 02:04:06,564 --> 02:04:08,476 and in ten years, it's obsolete 1848 02:04:08,608 --> 02:04:11,225 and really will not be useable within ten or 20 years. 1849 02:04:11,361 --> 02:04:13,273 I mean, you can't go back and use an Apple I, 1850 02:04:13,404 --> 02:04:14,565 cos there's no software for it. 1851 02:04:14,739 --> 02:04:17,197 In another ten years or so, you won't be able to use an Apple II. 1852 02:04:17,325 --> 02:04:19,783 You won't even be able to fire it up and see what it was like. 1853 02:04:21,537 --> 02:04:24,996 It's sort of like sediment of rocks. 1854 02:04:25,124 --> 02:04:26,831 You're building up a mountain, 1855 02:04:26,960 --> 02:04:30,124 and you get to contribute your little layer of sedimentary rock 1856 02:04:30,254 --> 02:04:32,246 to make the mountain that much higher. 1857 02:04:32,382 --> 02:04:35,966 But no one on the surface will, unless they have x-ray vision, 1858 02:04:36,135 --> 02:04:37,842 will see your sediment. 1859 02:04:41,265 --> 02:04:44,679 In Japan, there's an idea called "mono no aware," 1860 02:04:44,811 --> 02:04:48,145 meaning "the deep awareness of things". 1861 02:04:48,272 --> 02:04:51,231 It celebrates the melancholy of the passing of life 1862 02:04:51,359 --> 02:04:55,148 and sees more beauty in the fallen leaf than the one on the branch. 1863 02:04:56,406 --> 02:04:59,319 Maybe that's what Japan held for Jobs. 1864 02:04:59,450 --> 02:05:04,320 The sadness of the soul as expressed in the beauty of things. 1865 02:05:09,252 --> 02:05:11,869 In the end, I was left with the same question 1866 02:05:12,005 --> 02:05:13,541 with which I began this journey. 1867 02:05:13,673 --> 02:05:18,213 "Why did so many strangers weep for Steve Jobs?" 1868 02:05:18,344 --> 02:05:21,633 It's too simple to say it was because he gave us products we love 1869 02:05:21,806 --> 02:05:25,675 without asking why we love them the way we do. 1870 02:05:25,852 --> 02:05:28,060 It's too simple even to conclude that we love them 1871 02:05:28,229 --> 02:05:30,346 because they connect us to a wider world 1872 02:05:30,481 --> 02:05:33,599 and the people in our lives that are far away, 1873 02:05:33,776 --> 02:05:37,110 because these machines isolate us, too. 1874 02:05:39,699 --> 02:05:43,568 Perhaps the contradictory nature of our experience with these gadgets 1875 02:05:43,703 --> 02:05:46,286 mirrors the contradictions in Jobs himself. 1876 02:05:48,666 --> 02:05:52,706 He was an artist who sought perfection, but could never find peace. 1877 02:05:54,964 --> 02:05:58,833 He had the focus of a monk, but none of the empathy. 1878 02:06:01,095 --> 02:06:04,805 He offered us freedom, but only within a closed garden, 1879 02:06:04,932 --> 02:06:07,049 to which he held the key. 1880 02:06:11,314 --> 02:06:13,306 To reconcile these contradictions, 1881 02:06:13,441 --> 02:06:17,185 I think we have to look to the other half of our relationship with Jobs. 1882 02:06:17,320 --> 02:06:18,982 To ourselves. 1883 02:06:22,241 --> 02:06:26,451 As Jobs wanted it, the screen of my iPhone is dark. 1884 02:06:26,621 --> 02:06:29,204 A Zen landscape of the unseen. 1885 02:06:29,332 --> 02:06:34,293 If I stare into it, I see an obscure reflection of myself, 1886 02:06:34,420 --> 02:06:37,037 but this impression lasts just a fleeting moment 1887 02:06:37,173 --> 02:06:40,757 before I press the home key and the screen lights up. 1888 02:06:40,927 --> 02:06:44,762 But perhaps I should spend a moment regarding that reflection, 1889 02:06:44,931 --> 02:06:50,928 asking myself what, in buying and using this product, I am doing? 1890 02:06:51,062 --> 02:06:53,554 What is the full nature of my transaction 1891 02:06:53,731 --> 02:06:58,146 with the maker of this magical and intimate machine? 1892 02:07:18,798 --> 02:07:24,965 ♪ Once I wanted to be the greatest 1893 02:07:25,096 --> 02:07:27,383 ♪ Greatest, greatest, greatest 1894 02:07:27,515 --> 02:07:33,352 ♪ No wind or waterfall could stall me 1895 02:07:34,772 --> 02:07:40,439 ♪ And then came the rush of the flood 1896 02:07:40,611 --> 02:07:45,823 ♪ Stars at night turned deep to dust 1897 02:07:45,992 --> 02:07:51,454 ♪ Melt me down into big, black armor 1898 02:07:54,542 --> 02:08:01,460 ♪ Leave no trace of grace Just in your honor 1899 02:08:03,676 --> 02:08:09,388 ♪ Lower me down to culprit south 1900 02:08:09,515 --> 02:08:13,099 ♪ Make 'em wash a space in town 1901 02:08:13,227 --> 02:08:17,221 ♪ For the lead and the dregs of my bed 1902 02:08:17,356 --> 02:08:20,815 ♪ I've been sleeping 1903 02:08:20,985 --> 02:08:23,819 ♪ Lower me down 1904 02:08:23,988 --> 02:08:28,323 ♪ Pin me in, secure the grounds 1905 02:08:30,369 --> 02:08:31,985 ♪ For the later parade 1906 02:08:34,540 --> 02:08:51,499 Hope it helped -> bozxphd