0:00:02 > 0:00:03October this year.
0:00:03 > 0:00:05Around the world, devoted fans
0:00:05 > 0:00:07mourned the death of Steve Jobs,
0:00:07 > 0:00:11the force of nature behind Apple.
0:00:11 > 0:00:15He distorted reality. It's a mixture of charisma, chutzpah,
0:00:15 > 0:00:18bullshit, self-belief, self-delusion,
0:00:18 > 0:00:21and insane ambition.
0:00:24 > 0:00:27Apple's hi-tech products have inspired fervour.
0:00:27 > 0:00:29Oh, it's beautiful. It's very sexy.
0:00:29 > 0:00:34Defining cool consumerism for a worldwide tribe.
0:00:34 > 0:00:38Hyped by the man who personified the brand.
0:00:38 > 0:00:39It works like magic.
0:00:39 > 0:00:42They look so good, you want to lick 'em.
0:00:42 > 0:00:43It's unbelievable.
0:00:43 > 0:00:47No-one had quite that mixture of arrogance,
0:00:47 > 0:00:49humility, talent and presence, which Steve Jobs had.
0:00:49 > 0:00:54He's changed music, he's changed movies, he's changed computers a couple of times.
0:00:54 > 0:00:58He's created industries that we didn't think we needed.
0:00:58 > 0:01:00Jobs was a perfectionist.
0:01:00 > 0:01:05To Steve, everything was about taste. Just like someone writing a great piece of music.
0:01:05 > 0:01:06And a tyrant.
0:01:06 > 0:01:09Steve Jobs yelling at you with his full force is kind of
0:01:09 > 0:01:13a pretty frightening thing for most people.
0:01:13 > 0:01:16How did a drug-taking college dropout
0:01:16 > 0:01:19create one of the most successful corporations in the world?
0:01:19 > 0:01:23His hippy background made him a better billionaire.
0:01:23 > 0:01:25This is the inside story
0:01:25 > 0:01:27of how Steve Jobs took Apple
0:01:27 > 0:01:31from a suburban garage to global supremacy.
0:01:39 > 0:01:43This is the launch of the Macintosh computer in 1984.
0:01:44 > 0:01:48An early glimpse of the way Apple has marketed itself
0:01:48 > 0:01:49to the world ever since.
0:01:53 > 0:01:55MUSIC: "Chariots Of Fire" by Vangelis
0:02:04 > 0:02:06The Macintosh was the first computer
0:02:06 > 0:02:09with a mouse that was meant for all of us.
0:02:10 > 0:02:13It has turned out insanely great.
0:02:13 > 0:02:17APPLAUSE
0:02:19 > 0:02:22We were all very idealistic and passionate.
0:02:22 > 0:02:23This was our personal cause.
0:02:26 > 0:02:29In this auditorium, three crucial factors
0:02:29 > 0:02:31came together for the first time.
0:02:31 > 0:02:35A new computer designed to be easier to use
0:02:35 > 0:02:36than any that had come before.
0:02:36 > 0:02:40Sold with an audacious message of revolution.
0:02:41 > 0:02:45And hyped by Steve Jobs himself.
0:02:45 > 0:02:49I'd like to open the meeting with a an old poem by Dylan. That's Bob Dylan.
0:02:49 > 0:02:51LAUGHTER
0:02:51 > 0:02:54Come writers and critics who prophesise with your pens
0:02:54 > 0:02:56And keep your eyes wide...
0:02:56 > 0:03:00What started here in 1984, with the launch of the Mac
0:03:00 > 0:03:05became the template that certainly got improved upon as Apple became
0:03:05 > 0:03:08one of the great marketing companies that the world has ever seen.
0:03:08 > 0:03:10..for the loser now will be later to win
0:03:10 > 0:03:13for the times they are a-changin'.
0:03:13 > 0:03:15APPLAUSE
0:03:15 > 0:03:18The whole auditorium of about 2,500 people
0:03:18 > 0:03:20gave it a standing ovation.
0:03:21 > 0:03:25It was a very, very emotional moment because it was no longer ours.
0:03:25 > 0:03:29From that day forward, it was no loner ours, we couldn't change it.
0:03:29 > 0:03:31Jobs cast Apple as the plucky underdog,
0:03:31 > 0:03:33taking on a domineering rival.
0:03:33 > 0:03:36IBM wants it all
0:03:36 > 0:03:43and is aiming its guns on its last obstacle to industry control - Apple.
0:03:43 > 0:03:48Will big blue dominate the entire computer industry?
0:03:48 > 0:03:51The entire information age?
0:03:51 > 0:03:55Was George Orwell right about 1984?
0:03:55 > 0:03:57APPLAUSE
0:03:57 > 0:04:01'We celebrate the first glorious anniversary...'
0:04:01 > 0:04:06Apple created an advert that painted IBM as Big Brother.
0:04:06 > 0:04:08the enemy of freedom.
0:04:08 > 0:04:13These images have helped define Apple as a brand ever since.
0:04:14 > 0:04:17'We shall prevail.'
0:04:20 > 0:04:23That was the birth of the Apple brand.
0:04:23 > 0:04:25It was talked about
0:04:25 > 0:04:28and it was literally focusing on a revolution.
0:04:28 > 0:04:32And that revolutionary theme was absolutely at the core
0:04:32 > 0:04:35of what made Apple successful over the next years.
0:04:35 > 0:04:38The 1984 ad was the first time
0:04:38 > 0:04:40when you started to get a real sense of the Apple club.
0:04:41 > 0:04:44People who defined themselves by their association with the brand.
0:04:44 > 0:04:48That they weren't IBM clones, they were these creative thinkers
0:04:48 > 0:04:51who had a different attitude, in some way.
0:04:51 > 0:04:54I think that's been the kind of common currency
0:04:54 > 0:04:55that's been carried on since then.
0:04:55 > 0:04:58Nearly three decades on,
0:04:58 > 0:04:59Apple was still following the marketing template
0:04:59 > 0:05:02set out all those years ago.
0:05:04 > 0:05:07This year, Steve Jobs was centre stage for the launch
0:05:07 > 0:05:09of its latest tablet.
0:05:09 > 0:05:13And just like in 1984, his pitch
0:05:13 > 0:05:17was that Apple stands for something more than selling computers.
0:05:17 > 0:05:19It's in Apple's DNA
0:05:19 > 0:05:23that technology alone is not enough.
0:05:23 > 0:05:27That it's technology married with liberal arts,
0:05:27 > 0:05:29married with the humanities
0:05:29 > 0:05:35that yields us the result that makes our hearts sing.
0:05:35 > 0:05:37From the launch of the Macintosh
0:05:37 > 0:05:40to the unveiling of the latest iPad,
0:05:40 > 0:05:43two events, which span a quarter of a century,
0:05:43 > 0:05:48and yet which reveal a consistent vision in the company Jobs created.
0:05:48 > 0:05:51It wasn't a vision born of a business school education.
0:05:51 > 0:05:53It wasn't a product of consumer focus groups.
0:05:53 > 0:05:55The roots of that vision
0:05:55 > 0:06:00lay in the Californian counter culture in which he grew up.
0:06:03 > 0:06:07MUSIC: "The Times They Are A-Changin'" by Bob Dylan
0:06:07 > 0:06:11# Come gather round, people wherever you roam... #
0:06:11 > 0:06:15The young Steve Jobs came to believe technology
0:06:15 > 0:06:18COULD change the world.
0:06:20 > 0:06:23In California in the 1960s and '70s,
0:06:23 > 0:06:26Jobs found himself at the centre of two colliding worlds.
0:06:27 > 0:06:29The hippy movement
0:06:29 > 0:06:31and computers.
0:06:31 > 0:06:37# Oh, the times, they are a-changin'... #
0:06:37 > 0:06:40We spent a lot of time driving around in his old Volvo.
0:06:40 > 0:06:44I don't remember ever listening to anything other than Bob Dylan tapes.
0:06:44 > 0:06:46We would play them over and over again.
0:06:47 > 0:06:52Born in 1955, Jobs was adopted by a modest family
0:06:52 > 0:06:55and grew up in the Santa Clara Valley.
0:06:56 > 0:06:59It was becoming better known as Silicon Valley
0:06:59 > 0:07:01as hi-tech firms sprang up.
0:07:07 > 0:07:08And nearby,
0:07:08 > 0:07:12San Francisco was becoming the epicentre of the counter culture.
0:07:12 > 0:07:15Jobs opened himself up to both.
0:07:16 > 0:07:19He's got a lot of compartments in his mind.
0:07:19 > 0:07:24He was intense and thoughtful and I liked that about him.
0:07:25 > 0:07:28At college, Jobs met Daniel Kottke.
0:07:28 > 0:07:30Jobs quickly dropped out of his course
0:07:30 > 0:07:33and lost no time tuning in.
0:07:33 > 0:07:37We both got copies of this new book, Be Here Now.
0:07:37 > 0:07:41It was written by Ram Dass and all about his trip to India,
0:07:41 > 0:07:46searching for a holy man who could explain what psychedelics do.
0:07:46 > 0:07:47It was fascinating for me
0:07:47 > 0:07:52and for Steve also and so that was the basis of our friendship.
0:07:55 > 0:07:56Jobs became a hippy,
0:07:56 > 0:07:59pursuing paths to personal liberation.
0:07:59 > 0:08:03He and Kottke took their own trip to India,
0:08:03 > 0:08:08and LSD, as this extraordinary tape reveals.
0:08:23 > 0:08:27He spent long periods at a commune on a farm in Oregon.
0:08:27 > 0:08:32We spent a whole week harvesting apples and, while we were at it,
0:08:32 > 0:08:36we decided we would just fast on apples and see how that worked
0:08:36 > 0:08:38and, um...
0:08:38 > 0:08:41it makes you very light-headed, cos it's just like sugar.
0:08:41 > 0:08:44Jobs was inspired by the counter culture
0:08:44 > 0:08:48to believe society was there to be reshaped.
0:08:48 > 0:08:49As near as I can tell,
0:08:49 > 0:08:52Steve Jobs always had that ambition to change the world.
0:08:52 > 0:08:57And he expected to do that by empowering, um...
0:08:57 > 0:08:59everybody.
0:09:00 > 0:09:03But Jobs didn't share all the views of his counter culture buddies.
0:09:03 > 0:09:07Many hippies saw computers as tools of oppression,
0:09:07 > 0:09:09produced by big businesses
0:09:09 > 0:09:12to extend the sway of other big businesses.
0:09:12 > 0:09:16Jobs, though, had grown up experimenting with electronics at home.
0:09:18 > 0:09:20People who've done that
0:09:20 > 0:09:24have another angle on, er, whether technology is bad or good.
0:09:24 > 0:09:28They think that technology that pushes them around is bad
0:09:28 > 0:09:30and technology that they can
0:09:30 > 0:09:33push in their own direction they think is good.
0:09:33 > 0:09:35While he was still at school,
0:09:35 > 0:09:39Jobs worked at one of the big computer companies near his home in Silicon Valley.
0:09:39 > 0:09:42And he made a friend who would shape his destiny.
0:09:42 > 0:09:45We talked about electronics. I said, "I design computers.
0:09:45 > 0:09:48"I can, you know, do any of them." He had worked at Hewlett Packard
0:09:48 > 0:09:51and built himself what's called a frequency counter.
0:09:51 > 0:09:52So we hit it off.
0:09:52 > 0:09:56Despite his hippy outlook, Jobs had a ruthless streak.
0:09:56 > 0:10:01He was asked by the fledgling computer company Atari to design a new Breakout game.
0:10:01 > 0:10:04Jobs asked Wozniak to do it in just four days,
0:10:04 > 0:10:07telling his friend they would share the fee.
0:10:07 > 0:10:10He presented it like we were splitting the money 50/50,
0:10:10 > 0:10:14but actually, it was, you know, probably a different story.
0:10:14 > 0:10:18Wozniak worked round the clock to deliver the goods
0:10:18 > 0:10:21but later discovered Jobs had paid him considerably less
0:10:21 > 0:10:24than half the sum he had received from Atari.
0:10:27 > 0:10:29You didn't think, "I can't trust this guy"?
0:10:29 > 0:10:31or "He's a bit too sharp for me"?
0:10:31 > 0:10:33Steve could have just said,
0:10:33 > 0:10:36"I need money to buy into this commune up in Oregon."
0:10:36 > 0:10:40- Have you never harboured any bitterness that he might have? - I don't harbour bitterness.
0:10:40 > 0:10:44Even if somebody just did that right to my face, I would not harbour bitterness.
0:10:44 > 0:10:48But I would acknowledge the truth. Um, I did cry.
0:10:48 > 0:10:51I cried, you know, quite a bit, actually, when I read it in a book.
0:10:51 > 0:10:57The seeds of Apple were sown when Wozniak introduced Jobs
0:10:57 > 0:11:01to a subterranean world of DIY technology enthusiasts.
0:11:04 > 0:11:09The Homebrew Computer Club had ideas of how small, little people
0:11:09 > 0:11:10who knew things about computers
0:11:10 > 0:11:14could change the world, could become masters.
0:11:14 > 0:11:17The Homebrew Computer Club took computing
0:11:17 > 0:11:20out of the hands of big business.
0:11:21 > 0:11:25What happened was you wanted a computer or a piece of software
0:11:25 > 0:11:27or some product that didn't exist.
0:11:27 > 0:11:30You looked around, it didn't exist. So you built it.
0:11:30 > 0:11:33Then you showed it to your friends, cos everyone wants to show off,
0:11:33 > 0:11:36and your friends would say, "This is great, can I have one?"
0:11:36 > 0:11:40The values were sharing. If you have parts that can help people.
0:11:40 > 0:11:43If you have knowledge, you'll share.
0:11:43 > 0:11:46Wozniak brought Jobs to the Homebrew Computer Club
0:11:46 > 0:11:50where he was showing a new computer he had made.
0:11:50 > 0:11:53It would become the Apple I.
0:11:53 > 0:11:56He saw a business opportunity that all these people wanted to build
0:11:56 > 0:12:00my computer design, but they didn't have building skills.
0:12:00 > 0:12:03And he thought, "We'll put out some money,
0:12:03 > 0:12:07"design a PC board, we'll make it for 20, we'll sell it for 40."
0:12:07 > 0:12:11And I didn't know if we'd sell enough to get our money back.
0:12:11 > 0:12:13We'd have to sell about 50.
0:12:13 > 0:12:17And I didn't know if there were 50 people who would buy my computer.
0:12:17 > 0:12:20And Steve said, "Yeah, maybe we won't get our money back,
0:12:20 > 0:12:22"but then for once in our lives,
0:12:22 > 0:12:24"finally, the two of us will have our own company."
0:12:24 > 0:12:27Wow, man. He was... OK, he was the leader on that.
0:12:29 > 0:12:34In 1976, Wozniak and Jobs began selling the Apple I computer
0:12:34 > 0:12:37from the Jobs family garage.
0:12:37 > 0:12:40Buyers had to add their own case.
0:12:40 > 0:12:43The birth of Apple as a company had been masterminded by Jobs,
0:12:43 > 0:12:47a hippy with a business brain.
0:12:47 > 0:12:51A surprising number of people who came along as hippies
0:12:51 > 0:12:53and counter-culture folks in the '60s and '70s
0:12:53 > 0:12:56wound up going into business.
0:12:56 > 0:12:59Business was a way to have some freedom in the world.
0:12:59 > 0:13:04Steve Jobs later said he'd set up the business almost by chance.
0:13:04 > 0:13:07We started Apple simply because we wanted this computer for ourselves
0:13:07 > 0:13:11and our immediate friends wanted one once they saw us build a prototype.
0:13:11 > 0:13:14So gradually, we were pulled into business.
0:13:14 > 0:13:16We didn't set out to build a large company.
0:13:16 > 0:13:19We started out to build computers for us and our friends.
0:13:19 > 0:13:24To Apple's co-founder, the reality is a little less idealistic.
0:13:24 > 0:13:27Steve was always sort of focussed on if you can build things
0:13:27 > 0:13:31and sell them, you can have a company. And the way you make money
0:13:31 > 0:13:33and importance in the world is with companies.
0:13:33 > 0:13:37And he always spoke that he wanted to be one of those important people.
0:13:37 > 0:13:40So he'd got the business side pretty clearly.
0:13:40 > 0:13:43He got the business side but he did tie it in philosophically with,
0:13:43 > 0:13:46"This is how you get good things to people."
0:13:46 > 0:13:51It wasn't, "I only want money."
0:13:51 > 0:13:52It was Wozniak's next computer,
0:13:52 > 0:13:55which propelled Apple into the stratosphere.
0:13:55 > 0:13:57Released in 1977,
0:13:57 > 0:14:02the Apple II was the first home computer with colour graphics.
0:14:04 > 0:14:07Over the next three years, sales grew rapidly
0:14:07 > 0:14:10to more than 150 million,
0:14:10 > 0:14:15taking Apple from a suburban garage to the pinnacle of a new industry...
0:14:15 > 0:14:17personal computing.
0:14:17 > 0:14:20There are some great partnerships, aren't there, in the world?
0:14:20 > 0:14:23One thinks of Lennon and McCartney and you and Steve Jobs.
0:14:23 > 0:14:25Who was Lennon, who was McCartney?
0:14:25 > 0:14:30I am so honoured to be considered in that kind of category,
0:14:30 > 0:14:32and yet it's true, it's true.
0:14:32 > 0:14:35You know, Steve and I, we were like a...
0:14:35 > 0:14:38Lennon McCartney partnership, exactly. I couldn't say who was who.
0:14:38 > 0:14:41I always thought people always attributed me with Lennon
0:14:41 > 0:14:45because I had really built and designed the machines.
0:14:45 > 0:14:48And then Steve knew how to take it to the public.
0:14:48 > 0:14:50Um, but he had, you know, his own type of brilliance too.
0:14:50 > 0:14:55When Apple went public in 1980, it was the most over-subscribed
0:14:55 > 0:15:00offering of shares since that of Ford motors in 1956.
0:15:00 > 0:15:04Success on this scale changed Apple.
0:15:04 > 0:15:06Any company when it becomes public
0:15:06 > 0:15:10and becomes bigger becomes different. Politics seep in.
0:15:10 > 0:15:15The company goal from that point on wasn't to change the world,
0:15:15 > 0:15:18but to increase the value to shareholders.
0:15:18 > 0:15:20It certainly did that.
0:15:20 > 0:15:24It was worth nearly 2 billion by the end of 1980.
0:15:24 > 0:15:26And Jobs had a quarter of a billion.
0:15:26 > 0:15:29But now money men and women flooded in to Apple,
0:15:29 > 0:15:34and Jobs, just 25, wasn't really taken seriously by them.
0:15:34 > 0:15:38Steve was the chairman, but he wasn't seen as the person
0:15:38 > 0:15:42who had the stature and the maturity to run the company.
0:15:44 > 0:15:48Especially as the world around Apple was changing fast.
0:15:48 > 0:15:51Competition in the personal computer market was intensifying.
0:15:51 > 0:15:56In 1981, IBM launched its response to the Apple II -
0:15:56 > 0:15:58The IBM PC.
0:15:58 > 0:16:02'A computer expert will show you the system that's right for you.'
0:16:02 > 0:16:07It was the opening shot of a battle that would rage for 15 years.
0:16:07 > 0:16:12Apple went from the leading personal computer company
0:16:12 > 0:16:14to the second-place company
0:16:14 > 0:16:17and actually, was in a very precarious position in that
0:16:17 > 0:16:23because the IBM system could be used in companies other than IBM
0:16:23 > 0:16:28and you could see where Apple would fall further and further back.
0:16:30 > 0:16:33Apple needed a seasoned Chief Executive to pilot the company
0:16:33 > 0:16:36through increasingly tough times.
0:16:36 > 0:16:39Steve Jobs' search took him to New York
0:16:39 > 0:16:43and to John Sculley, President of the soft drinks company, Pepsi.
0:16:43 > 0:16:46The two men began poles apart.
0:16:46 > 0:16:48The world I came from was hierarchical.
0:16:48 > 0:16:53It was big business. It was very competitive
0:16:53 > 0:16:58and the idea of building a company that was going to change the world
0:16:58 > 0:17:03was completely foreign from anything that I'd ever been exposed to.
0:17:03 > 0:17:07How Jobs persuaded Sculley to take the job
0:17:07 > 0:17:09is the stuff of business legend.
0:17:09 > 0:17:14Steve had these deep penetrating, brown eyes
0:17:14 > 0:17:18and he just stared right at me, probably, you know, 15 inches away.
0:17:18 > 0:17:22He said, "Do you want to sell sugar water for the rest of your life,
0:17:22 > 0:17:26"or do you want to come with me and change the world?"
0:17:26 > 0:17:28Kind of knocked the wind out of me,
0:17:28 > 0:17:32because no-one had ever said anything like that to me before.
0:17:32 > 0:17:34Sculley was a pragmatic operator,
0:17:34 > 0:17:38a marketing expert who knew exactly what Apple should do.
0:17:38 > 0:17:42What they needed was someone who could keep the Apple II
0:17:42 > 0:17:46commercially alive and generating cash for about another three years.
0:17:46 > 0:17:50After several new product lines had failed to take off,
0:17:50 > 0:17:54the income from the Apple II was keeping the company alive.
0:17:54 > 0:17:57But Apple's hopes of a revival rested on a new home computer,
0:17:57 > 0:18:02the Macintosh, named after a variety of Apple.
0:18:04 > 0:18:09Jobs set out to build a computer that would blow IBM's PC away.
0:18:09 > 0:18:13There was enough of the ordinary corporate executive about him
0:18:13 > 0:18:15to want to beat a rival.
0:18:15 > 0:18:18But there was little else conventional about Steve Jobs.
0:18:18 > 0:18:22He wanted computers to be simple and pleasurable to use.
0:18:22 > 0:18:26He wanted our relationship with them to be more human and intimate.
0:18:26 > 0:18:31And that approach to technology has been Apple's hallmark ever since.
0:18:34 > 0:18:38The Macintosh team was full of rebel spirit.
0:18:38 > 0:18:42We were all young, we were all the same age, and we all thought
0:18:42 > 0:18:45we could do better than has ever been done before.
0:18:45 > 0:18:48Jobs thought it would take a year to build the Macintosh.
0:18:48 > 0:18:50In fact, it would take more than three.
0:18:50 > 0:18:54He's got a "reality distortion field".
0:18:54 > 0:18:56Steve wanted the impossible
0:18:56 > 0:18:59and he was somehow able to convince everyone
0:18:59 > 0:19:02that the impossible was possible.
0:19:02 > 0:19:06Jobs was determined the Macintosh would be easy to use.
0:19:06 > 0:19:09It would have a mouse and icons on screen,
0:19:09 > 0:19:13a first for an affordable personal computer.
0:19:13 > 0:19:15The story of how Jobs brought that mouse to the world
0:19:15 > 0:19:17explodes a myth about him -
0:19:17 > 0:19:20That he invented revolutionary technology.
0:19:20 > 0:19:25You see, Jobs didn't operate in an intellectual vacuum.
0:19:25 > 0:19:30Nearby, in Silicon Valley, the Xerox corporation had a research division
0:19:30 > 0:19:31called PARC.
0:19:31 > 0:19:35'And the function of spatial frequency is something like this.'
0:19:35 > 0:19:40It was full of free-thinking technological radicals
0:19:40 > 0:19:41and inspirational ideas.
0:19:41 > 0:19:45It was just a kind of dream place.
0:19:45 > 0:19:50We had a general overall vision about what we called
0:19:50 > 0:19:52"the office of the future."
0:19:52 > 0:19:55And that was it. We were told to figure out how to do that.
0:19:55 > 0:19:58Jobs was desperate to take a look inside
0:19:58 > 0:20:00this precious storehouse of ideas.
0:20:00 > 0:20:04He got his chance when Xerox made an investment in Apple
0:20:04 > 0:20:07and invited him in.
0:20:07 > 0:20:10I demonstrated various technologies that our group had,
0:20:10 > 0:20:13but the things that stood out to the visitors
0:20:13 > 0:20:17were the pointing device, the mouse, which we hadn't invented.
0:20:17 > 0:20:20It had been around for 15 years. We had just improved it,
0:20:20 > 0:20:23but it wasn't something that most people had ever seen before.
0:20:23 > 0:20:27Larry Tesler was demonstrating how a computer with icons
0:20:27 > 0:20:31on the screen could be controlled by this novel gadget. A mouse.
0:20:31 > 0:20:34Jobs couldn't believe what he was seeing.
0:20:34 > 0:20:39He started pacing around the room very nervously almost,
0:20:39 > 0:20:42and then more excitedly and then he just couldn't hold it back.
0:20:42 > 0:20:44He just had to talk.
0:20:44 > 0:20:49So, he started saying things like, "You're sitting on a gold mine.
0:20:49 > 0:20:52"This is insanely great. It is just amazing.
0:20:52 > 0:20:55"Why aren't you doing anything with this?"
0:20:55 > 0:21:00Unlike the vast XEROX corporation, Jobs acted swiftly.
0:21:00 > 0:21:02I went into his office, sat down and said,
0:21:02 > 0:21:05"Steve, I've been thinking about a few product ideas"
0:21:05 > 0:21:10and hardly had I got the sentence out and he said, "Stop, Dean.
0:21:10 > 0:21:12"I know exactly what we need to do."
0:21:12 > 0:21:15When he said "a mouse", I looked at him and said "A mouse?"
0:21:15 > 0:21:17I had no clue what a mouse was.
0:21:17 > 0:21:23Xerox saw the mouse as part of an expensive business computer.
0:21:23 > 0:21:24Jobs saw it very differently.
0:21:24 > 0:21:26He gave me a very clear design brief.
0:21:26 > 0:21:28The mouse had to have four things.
0:21:28 > 0:21:32The first was we had to be able to build it for less than 15.
0:21:32 > 0:21:36Low cost consumer product. Secondly, it had to last for two years.
0:21:36 > 0:21:40Third, it needed to work on a regular desktop, Formica or metal.
0:21:40 > 0:21:42And then, finally, he leaned back in his chair,
0:21:42 > 0:21:46put his hand on his knee and he said, "And work on my Levi's."
0:21:46 > 0:21:48The mouse, as we now know it, was born.
0:21:48 > 0:21:52Jobs had tweaked existing technology to great effect,
0:21:52 > 0:21:56just as he would over the next three decades.
0:21:56 > 0:22:00More editor than inventor, Jobs had an instinct for innovation,
0:22:00 > 0:22:02pouncing on a good idea when he saw one.
0:22:02 > 0:22:09The difference between invention and innovation is that you execute.
0:22:09 > 0:22:12You take an, an idea and you turn it into reality.
0:22:12 > 0:22:15You bring it into the marketplace. Steve connected the dots.
0:22:15 > 0:22:18He saw a little bit of this, he saw a little bit of that,
0:22:18 > 0:22:20and he said, "We need to do this.
0:22:20 > 0:22:23"We need to take it from an expensive business experience
0:22:23 > 0:22:27"to a personal low-cost experience and we'll build a company from it."
0:22:28 > 0:22:32Along with making the Macintosh easy to use,
0:22:32 > 0:22:34Jobs brought an aesthetic sensibility
0:22:34 > 0:22:36to the computer's design.
0:22:36 > 0:22:39A long-time follower of Zen meditation,
0:22:39 > 0:22:41he believed in the beauty of simplicity.
0:22:41 > 0:22:44When I went to his home for the first time,
0:22:44 > 0:22:48I was struck because there was almost no furniture in the house.
0:22:48 > 0:22:52Um...in his bedroom was a small bed,
0:22:52 > 0:22:55a photograph of Einstein over his bed,
0:22:55 > 0:22:57another photograph of Gandhi.
0:22:57 > 0:23:01In the living room was a Tiffany lamp,
0:23:01 > 0:23:04no place to sit. You know, we would just sit on the floor.
0:23:04 > 0:23:06Steve just was not into possessions.
0:23:06 > 0:23:09He was not into money, he was completely into
0:23:09 > 0:23:11the things he believed in.
0:23:13 > 0:23:17That integrity went through every aspect of his life.
0:23:17 > 0:23:23His devotion to the products, to the work, to the ethic.
0:23:23 > 0:23:27It permeated everything and this desire for aesthetic beauty
0:23:27 > 0:23:31the importance of the things that you don't see,
0:23:31 > 0:23:35what lies beneath the surface, and in that sense,
0:23:35 > 0:23:38I think there's a kind of seamless philosophy
0:23:38 > 0:23:40that binds everything together.
0:23:43 > 0:23:46As the Macintosh neared completion,
0:23:46 > 0:23:49the stakes were growing higher for Apple.
0:23:49 > 0:23:52In autumn 1983, the company's share price tumbled,
0:23:52 > 0:23:56wiping nearly half a billion dollars from its value.
0:23:56 > 0:23:59A new home computer was on its way from IBM
0:23:59 > 0:24:03and other versions of the PC were flooding the market.
0:24:03 > 0:24:07Worse still, the man Apple had turned to to write extra software
0:24:07 > 0:24:10for the Mac was about to steal a march on them.
0:24:10 > 0:24:16Relations with the young Bill Gates were strained from the start.
0:24:16 > 0:24:18Bill Gates would fly down from Seattle,
0:24:18 > 0:24:21down to Cupertino to give updates on the project.
0:24:21 > 0:24:26And, often times, Steve would just yell at Bill for two straight hours.
0:24:26 > 0:24:29And then Bill would leave and get on a plane and fly back.
0:24:32 > 0:24:36We tend to think of Bill Gates as a buttoned-up geek,
0:24:36 > 0:24:40but in this instance, it was Jobs who showed he was far from laidback.
0:24:40 > 0:24:45He thought Apple should keep complete control of its software and hardware,
0:24:45 > 0:24:49Gates wanted to produce software for both Apple and the PC.
0:24:49 > 0:24:54Tensions came to a head when they were both working on the Macintosh.
0:24:54 > 0:24:58Jobs began to suspect Gates might be taking advantage
0:24:58 > 0:25:01of his inside knowledge of Apple's work.
0:25:01 > 0:25:04Steve Jobs was racing to ensure the Macintosh
0:25:04 > 0:25:08was the first personal computer to have icons on the screen.
0:25:08 > 0:25:11But just before it was due to be unveiled,
0:25:11 > 0:25:15Microsoft suddenly announced Windows I for the PC,
0:25:15 > 0:25:18which Apple feared would be similar.
0:25:18 > 0:25:20Jobs couldn't contain his fury.
0:25:20 > 0:25:22Steve was saying, "How can you do this to us?
0:25:22 > 0:25:24"We trusted you, you betrayed us."
0:25:24 > 0:25:29And I was impressed with Bill Gate's demeanour
0:25:29 > 0:25:33because Steve Jobs yelling at you with his full force is kind of a...
0:25:33 > 0:25:35a pretty frightening thing for most people!
0:25:35 > 0:25:38But he was kind of cool and calm.
0:25:38 > 0:25:41Just looked Steve back in the eye and said, "Well, Steve,
0:25:41 > 0:25:44"you know, what you're saying is one way of looking at it,
0:25:44 > 0:25:45"but I look at it a different way.
0:25:45 > 0:25:48"It's more like you had a rich neighbour named Xerox
0:25:48 > 0:25:51"and I broke into their house to steal the television set
0:25:51 > 0:25:55"and found you had stolen it before I could."
0:25:57 > 0:26:01Finally, after three years and millions of dollars,
0:26:01 > 0:26:04the Macintosh computer was ready.
0:26:06 > 0:26:08It was the distillation of Steve Jobs' vision
0:26:08 > 0:26:11of what technology should be.
0:26:11 > 0:26:13Easy to use, intimate,
0:26:13 > 0:26:17intended to change the lives of ordinary people.
0:26:17 > 0:26:22The future of Apple rested on this strikingly-designed beige box.
0:26:22 > 0:26:26Computers before the Macintosh kept us at arms length.
0:26:26 > 0:26:29The only way we can control them was through painstakingly moving
0:26:29 > 0:26:31this crazy little cursor on the screen
0:26:31 > 0:26:36and it looked like an alien device with these glowing green letters.
0:26:36 > 0:26:39The Macintosh put it on human scale.
0:26:39 > 0:26:42- COMPUTER:- Hello, I am Macintosh.
0:26:42 > 0:26:46For the first time it was actually, you know, intuitive.
0:26:46 > 0:26:49If you were bright enough to walk around unaided,
0:26:49 > 0:26:52you could just turn it on and use it.
0:26:52 > 0:26:54The Macintosh would be a hit with graphic designers
0:26:54 > 0:26:57and create the desktop publishing era.
0:26:57 > 0:26:59Those of us who used Apples, who got up early
0:26:59 > 0:27:01because we were excited about the fact
0:27:01 > 0:27:06we were in a world full of glide and flow and smoothness and pleasure,
0:27:06 > 0:27:11were told that we were pretentious, posing, bohemian arty types.
0:27:11 > 0:27:16"It's all very well for you, but I've got to do officey things",
0:27:16 > 0:27:19were missing the point.
0:27:19 > 0:27:24But however good it was, the Mac cost 2,500,
0:27:24 > 0:27:28over 1,000 more than an IBM PC.
0:27:28 > 0:27:32Even so, Steve Jobs was in no doubt it would take the world by storm.
0:27:32 > 0:27:36Like all great entrepreneurs, in Steve's mind,
0:27:36 > 0:27:40"Why wouldn't everybody on the planet immediately buy a Mac"?
0:27:40 > 0:27:42So he had huge expectations.
0:27:42 > 0:27:45Expectations that were about to collide with the real world.
0:27:45 > 0:27:48Then the sales numbers started coming in
0:27:48 > 0:27:51and, at best, they were half of what we were expecting.
0:27:51 > 0:27:54One of Steve's great strengths is his strong will
0:27:54 > 0:27:58and imposing his own version of reality.
0:27:58 > 0:28:03So in the face of depressing sales numbers he wasn't really fazed.
0:28:03 > 0:28:07Apple's new Macintosh factory was running at 50% of capacity.
0:28:07 > 0:28:11We did lose money and that was a huge crisis for everybody.
0:28:11 > 0:28:15Of course, that engendered a panic at Apple.
0:28:15 > 0:28:18You know, "What was the problem? How can we fix it?"
0:28:18 > 0:28:22And there, there was disagreement between different people.
0:28:24 > 0:28:28The most serious disagreement was between Steve Jobs
0:28:28 > 0:28:31and the man he had made Chief Executive, John Sculley.
0:28:31 > 0:28:34Steve has a tendency to be binary about people
0:28:34 > 0:28:37You know, sort of, he flipped on John Sculley.
0:28:37 > 0:28:41The two men were battling over the future of Apple.
0:28:44 > 0:28:46I was focused on the cash-flow of the Apple II.
0:28:46 > 0:28:48We had to have that coming in.
0:28:48 > 0:28:51Steve wanted to drop the price of the Macintosh,
0:28:51 > 0:28:54and put more marketing against the Macintosh.
0:28:54 > 0:28:56I felt we couldn't afford that.
0:28:56 > 0:28:5930-year-old Jobs had picked a fight with a formidable foe.
0:28:59 > 0:29:02Sculley came from PepsiCo, a very political organisation,
0:29:02 > 0:29:05and he was a skilful infighter
0:29:05 > 0:29:09who knew how to play the games, and Steve didn't.
0:29:12 > 0:29:14I said, "Steve, I'm going to the board of directors."
0:29:14 > 0:29:16He didn't think I'd do that, but I did,
0:29:16 > 0:29:20and the board said, "We agree with John.
0:29:20 > 0:29:21"We don't agree with you, Steve."
0:29:21 > 0:29:25They asked Steve to step down from heading the Macintosh division.
0:29:27 > 0:29:30Jobs had been forced out of the company he had created.
0:29:30 > 0:29:33It was a humiliating taste of failure.
0:29:35 > 0:29:38I got a phone call, late at night and it was Steve.
0:29:38 > 0:29:42He sounded really despondent and very, very sad.
0:29:42 > 0:29:46And I knew he was all alone at his great big unfurnished mansion
0:29:46 > 0:29:47up in Woodside.
0:29:47 > 0:29:51I got in my car, drove up there, and it was totally dark
0:29:51 > 0:29:53and rather creepy, and I found the house
0:29:53 > 0:29:58and went in and climbed up stairs by myself and found him
0:29:58 > 0:30:03in his bedroom just laying down and he was very, very sad.
0:30:03 > 0:30:06And I just stayed there, as a friend.
0:30:06 > 0:30:1011 years later, Jobs was still bitter.
0:30:10 > 0:30:12What can I say? I hired the wrong guy.
0:30:12 > 0:30:15- That was Sculley?- Yeah,
0:30:15 > 0:30:20and, er, he destroyed everything I'd spent ten years working for.
0:30:22 > 0:30:26Erm, starting with me, but that wasn't the saddest part.
0:30:26 > 0:30:31I'd have gladly left Apple if Apple had turned out like I wanted it to.
0:30:31 > 0:30:37Sacking Jobs seemed natural to the man schooled in selling sugar water.
0:30:37 > 0:30:41In hindsight, that was a terrible decision. I was part of it.
0:30:41 > 0:30:46Coming from my vantage point, out of corporate America,
0:30:46 > 0:30:50people were asked to step down all the time when there were disagreements
0:30:50 > 0:30:55so I didn't appreciate what it meant to be a founder of a business,
0:30:55 > 0:30:57the visionary of the business.
0:30:57 > 0:30:59I was focused on how do we sell Apple computers,
0:30:59 > 0:31:02he was focused on how do we change the world?
0:31:04 > 0:31:07Jobs severed all ties with Apple, except one.
0:31:07 > 0:31:10He kept a single share in the company he had founded,
0:31:10 > 0:31:14selling off the rest for more than 100 million.
0:31:16 > 0:31:20He hated the company. He couldn't see that it would succeed without him.
0:31:20 > 0:31:24He didn't want it to succeed without him.
0:31:24 > 0:31:27Over the next 11 years, Jobs didn't relent.
0:31:27 > 0:31:34Once again centre stage, he set up a new company called Next, building high spec computers.
0:31:34 > 0:31:38With cases made of magnesium and a price to match, they didn't sell well.
0:31:38 > 0:31:41Though one important computer scientist was impressed.
0:31:41 > 0:31:43Steve Jobs had arranged that,
0:31:43 > 0:31:45whenever you get a Next machine,
0:31:45 > 0:31:46there would be a message from him.
0:31:46 > 0:31:52One of the things I remember he said was that it's not just about personal computing, which was the rage,
0:31:52 > 0:31:57he said this should be about interpersonal computing.
0:31:57 > 0:32:00And I thought, yeah, that's... Yeah, he's got it.
0:32:01 > 0:32:06Jobs recognised technology was on the cusp of allowing us to communicate through computers.
0:32:06 > 0:32:11And, in fact, the Next's powerful operating system
0:32:11 > 0:32:15helped Sir Tim Berners-Lee connect computer users together.
0:32:15 > 0:32:20I developed the World Wide Web on this Next machine in a couple of months,
0:32:20 > 0:32:23whereas on another machine it would've taken me a lot longer.
0:32:23 > 0:32:26YOU ARE A TOY!
0:32:26 > 0:32:28As well as high-tech,
0:32:28 > 0:32:32Jobs invested in a struggling computer animation company.
0:32:32 > 0:32:36He ploughed 50 million into Pixar, keeping it afloat
0:32:36 > 0:32:40until it created the first computer-animated feature film.
0:32:40 > 0:32:43Toy Story was a blockbuster,
0:32:43 > 0:32:46and taking Pixar public made Steve Jobs super rich.
0:32:46 > 0:32:50He did stay in there and made the company successful,
0:32:50 > 0:32:52and we made him a billionaire in return.
0:32:52 > 0:32:54Seems like a pretty good deal.
0:32:54 > 0:32:59Now the hippy computer mogul had become a Hollywood player.
0:32:59 > 0:33:02Jobs had the world, but he didn't have Apple.
0:33:02 > 0:33:06They say that there are no second acts in American life,
0:33:06 > 0:33:08but there clearly are.
0:33:08 > 0:33:11One of the astonishing things about the Apple phenomenon
0:33:11 > 0:33:13is it goes in two halves.
0:33:15 > 0:33:18In the 11 years since Jobs left Apple,
0:33:18 > 0:33:20the computer market had changed radically.
0:33:20 > 0:33:24Now Microsoft was the dominant force in computing.
0:33:24 > 0:33:30Its operating systems powered nearly 90% of personal computers in America.
0:33:30 > 0:33:32Apple had tried to compete
0:33:32 > 0:33:37by allowing other manufacturers to make and sell copies of its machines and software,
0:33:37 > 0:33:39but it wasn't working.
0:33:40 > 0:33:43The company had lost its lead in the computer market,
0:33:43 > 0:33:48customers were leaving in droves, the company had no future, no roadmap.
0:33:48 > 0:33:53The company was in serious trouble.
0:33:53 > 0:33:57I, and other Apple users, were being told with malicious grins
0:33:57 > 0:34:01from our Windows-using friends that if we wanted to keep our machines
0:34:01 > 0:34:04we'd have to go to hobbyist shops because there would be no Apple computer.
0:34:06 > 0:34:11At Next, Jobs had focused on developing its powerful operating system.
0:34:11 > 0:34:14Apple needed just such a system.
0:34:16 > 0:34:18Apple was in technical trouble.
0:34:18 > 0:34:22Next was absolutely in financial trouble, and the two came together.
0:34:24 > 0:34:28Apple bought Next for 400 million.
0:34:28 > 0:34:33It got the new operating system it needed, and Steve Jobs.
0:34:33 > 0:34:37Steve was truly excited to be linked up with Apple again.
0:34:37 > 0:34:40It was the company he founded, the company he was kicked out of.
0:34:42 > 0:34:46It's the company that had lost its way, it was starting to fail,
0:34:46 > 0:34:51so he had this opportunity to go back and start fixing Apple at large.
0:34:51 > 0:34:57A few days later, Apple revealed just how much trouble it was really in.
0:34:57 > 0:35:01They announced that they were going to lose something like 1 billion,
0:35:01 > 0:35:05and back then 1 billion was a lot of money.
0:35:05 > 0:35:09I said, "Steve, what did we just get ourselves into?"
0:35:09 > 0:35:14And he was wondering himself! Because this was a big surprise to us.
0:35:14 > 0:35:16To bring Apple back from the brink,
0:35:16 > 0:35:18Jobs had a conventional business challenge.
0:35:18 > 0:35:21He had to stop the company haemorrhaging money,
0:35:21 > 0:35:23but he also had to do more.
0:35:23 > 0:35:26He had to help the company rediscover itself,
0:35:26 > 0:35:30and for that he thought he needed to take it back to the future,
0:35:30 > 0:35:33to the values that had built it up in the first place.
0:35:35 > 0:35:39He decided to put all of Apple's products and people under review.
0:35:39 > 0:35:46He was demanding, erm, he would not hesitate to call someone at two o'clock in the morning
0:35:46 > 0:35:49if he had an idea that he wanted to be pursued.
0:35:49 > 0:35:52He had no time for people that he did not respect.
0:35:52 > 0:35:56It got so bad that people were afraid to get into the elevator with Steve.
0:35:56 > 0:35:58He was on the fourth floor of the first building
0:35:58 > 0:36:02when you first come in, and it's been rumoured that he's fired people
0:36:02 > 0:36:06in that 25-second elevator ride as he walked out of the elevator.
0:36:06 > 0:36:10It wasn't just people who were axed.
0:36:10 > 0:36:14Jobs ended the licensing of Apple's technology to other companies,
0:36:14 > 0:36:17and he killed off most of Apple's product lines,
0:36:17 > 0:36:20including a clunky handheld device, the Newton.
0:36:24 > 0:36:27He taught the company what he learned
0:36:27 > 0:36:29when he was at Next and Pixar,
0:36:29 > 0:36:32which was focus matters.
0:36:32 > 0:36:35Watching expenses matters.
0:36:35 > 0:36:38We'll do more if we do less.
0:36:39 > 0:36:43Here's to the crazy ones.
0:36:43 > 0:36:45The misfits, the rebels.
0:36:45 > 0:36:47The troublemakers.
0:36:47 > 0:36:51Always the marketing man, now Jobs started to talk Apple up
0:36:51 > 0:36:53with a TV advert called Think Different.
0:36:54 > 0:37:00This emotional recasting of Apple's rebel roots was about more than just the brand.
0:37:00 > 0:37:04The real reason Think Different was created was for the employees.
0:37:04 > 0:37:08It really meant a wake-up, a call to action,
0:37:08 > 0:37:11a call to arms for the employees to say, "Wait a minute,
0:37:11 > 0:37:13"we still have something great to do for the world."
0:37:13 > 0:37:19Because the people who are crazy enough to think they can change the world...
0:37:19 > 0:37:21..are the ones who do.
0:37:26 > 0:37:29After renewing Apple's sense of its own identity,
0:37:29 > 0:37:34Jobs needed a product that could bring about the company's financial revival.
0:37:34 > 0:37:37He had a new vision of what computers could be,
0:37:37 > 0:37:43and it centred on an unknown Apple employee, British designer Jonathan Ive,
0:37:43 > 0:37:47who'd been working on an unusual prototype for a new computer.
0:37:47 > 0:37:50He went into Steve's office, and he came out ten minutes later,
0:37:50 > 0:37:54and sort of leant against the wall, not quite believing what he'd heard,
0:37:54 > 0:37:59which was, "We're going to stop everything at Apple and we're going to make this prototype of yours."
0:37:59 > 0:38:04Johnny said, "You do know that the prototype is transparent and that's how I want it to be?"
0:38:04 > 0:38:05Steve said, "Sure."
0:38:08 > 0:38:12This...is iMac.
0:38:12 > 0:38:13APPLAUSE
0:38:16 > 0:38:20The whole thing is translucent, you can see into it. It's so cool.
0:38:21 > 0:38:26Jobs and Ive had put the design of the computer centre stage.
0:38:27 > 0:38:30It created quite a stir.
0:38:30 > 0:38:34It looks like it's from another planet, and a good planet!
0:38:34 > 0:38:35AUDIENCE LAUGHTER
0:38:35 > 0:38:38A planet with better designers.
0:38:39 > 0:38:42Behold this extraordinary transparent object.
0:38:42 > 0:38:43It was friendly!
0:38:43 > 0:38:47It's a silly thing to say! It looked like a nice thing to own.
0:38:47 > 0:38:52The back of this thing looks better than the front of the other guy's by the way!
0:38:52 > 0:38:54This was a desktop computer
0:38:54 > 0:38:58but conceived as a thing of pleasure, ironic fascination.
0:38:58 > 0:39:02It meant that, you know, a computer wasn't just a dreary piece of office equipment.
0:39:02 > 0:39:04They look so good, you kind of want to lick 'em.
0:39:04 > 0:39:10The iMac fused striking design with the ability to connect to the internet easily.
0:39:10 > 0:39:12Steve was super-proud of the design
0:39:12 > 0:39:16and also the idea that he called it the iMac and the "i" for internet.
0:39:16 > 0:39:19The "i" was a stroke of deft branding,
0:39:19 > 0:39:25transforming the new impersonal internet into something more intimate.
0:39:25 > 0:39:29The iMac was a huge success and propelled Apple back into profit.
0:39:29 > 0:39:34In four and a half months, iMac has become the number one selling computer in America.
0:39:34 > 0:39:38The iMac was no better a product than the computer it replaced
0:39:38 > 0:39:42but it was packaged and marketed in a way that became classic Steve Jobs.
0:39:42 > 0:39:46It was the sort of packaging that attracted people
0:39:46 > 0:39:49who'd previously had no interest in computers.
0:39:49 > 0:39:52A third of sales were to those who'd never bought one before.
0:39:52 > 0:39:57Who'd have thought you could have an emotional bond with your computer?
0:39:57 > 0:40:02Apple wanted to change people's relationship with computers.
0:40:02 > 0:40:05Steve wanted it to be fashionable but it was Jonathan who was saying,
0:40:05 > 0:40:09"We have to make this something that people will love."
0:40:09 > 0:40:13The word "love" started becoming part of Apple's motif.
0:40:13 > 0:40:18And now there was a new partnership at the heart of Apple.
0:40:18 > 0:40:22Jonathan Ive and Jobs had a very, very, very special relationship
0:40:22 > 0:40:27and it was united by this almost Zen-like meditative intensity, which they both have.
0:40:30 > 0:40:36Ive's approach to design would be the new foundation on which Apple's future would be built.
0:40:36 > 0:40:40You've got this incredibly powerful, this potent technology and people,
0:40:40 > 0:40:43and I think design makes a very sort of important, erm...
0:40:43 > 0:40:47..I think, contribution to the nature of that connection.
0:40:47 > 0:40:51I think we're trying to create products that make sense,
0:40:51 > 0:40:56and that people really develop some sort of affinity with.
0:40:56 > 0:40:58They are products that become personal.
0:40:58 > 0:41:03There is a poetic dimension to some technological artefacts
0:41:03 > 0:41:08because they have been crafted into it, and that is not accidental.
0:41:08 > 0:41:13It's absolutely part of a mission, a focus, and part of the functionality.
0:41:13 > 0:41:17And over the years, Apple has generally positioned its products
0:41:17 > 0:41:21as expensive, but oh-so-elegantly designed.
0:41:21 > 0:41:25There are people who say, when you compare the Apple product with the functional equivalent...
0:41:25 > 0:41:29..You see that it's more style over substance.
0:41:29 > 0:41:33No, no, no! Evan, you couldn't be more wrong.
0:41:33 > 0:41:34I wouldn't wish to be rude to you
0:41:34 > 0:41:38but it's astonishing to think that, in the 21st-century,
0:41:38 > 0:41:42people still think there's a distinction between style and substance,
0:41:42 > 0:41:45that the two are not the same.
0:41:45 > 0:41:51The better it looks, the more you want to use it, the more function you get out of it anyway!
0:41:52 > 0:41:56Around the turn-of-the-century, technology was changing rapidly.
0:41:56 > 0:42:01Consumers were rushing to buy new digital devices like cameras and music players,
0:42:01 > 0:42:06and Jobs saw how Apple could weave itself deeper into people's lives,
0:42:06 > 0:42:08IF it could exploit the trend.
0:42:09 > 0:42:15We are living in a new digital lifestyle with an explosion of digital devices,
0:42:15 > 0:42:22and we believe that the Mac can become the digital hub of our new emerging digital lifestyle.
0:42:24 > 0:42:26We think this is going to be huge.
0:42:27 > 0:42:31Jobs' insight was the beginning of Apple as we know it today.
0:42:31 > 0:42:38Computers were becoming powerful enough to store and play video, music and other media.
0:42:38 > 0:42:42Apple began working secretly on a digital device of its own.
0:42:42 > 0:42:47It would revolutionise the company and our increasingly digital world.
0:42:47 > 0:42:52The iPod came about because somewhat of a convergence of technologies.
0:42:52 > 0:42:56We learned that we could marry a really small hard drive -
0:42:56 > 0:43:01small in size, large in capacity - with some small electronics
0:43:01 > 0:43:04and build a really good music player.
0:43:05 > 0:43:11Just as with the mouse in the 1980s, Jobs and Apple did not invent the MP3 player,
0:43:11 > 0:43:15but they did redefine it for consumers.
0:43:15 > 0:43:19The iPod could hold 1,000 songs,
0:43:19 > 0:43:24but its real innovation lay in Jonathan Ive's design.
0:43:24 > 0:43:27There were lots of MP3 players around before the iPod
0:43:27 > 0:43:31but they all looked as ugly as car batteries and it was only Apple
0:43:31 > 0:43:35who had the sense to make the iPod into a gorgeous, gorgeous thing.
0:43:35 > 0:43:39The colour of the first iPod was no accident.
0:43:39 > 0:43:43Choosing white for the iPod wasn't just a Johnny decision, it was a Johnny and Steve decision.
0:43:43 > 0:43:48They really looked into the idea of the colour white.
0:43:48 > 0:43:53It was something, which carried on a certain spirit and purity.
0:43:54 > 0:44:00They went to many, many iterations of white and had to look at special materials, special polymers,
0:44:00 > 0:44:06to produce and convey and maintain the certain whiteness of the iPod.
0:44:06 > 0:44:09Carefully chosen colours, white or otherwise,
0:44:09 > 0:44:13had a distinctive presence in the advertising.
0:44:13 > 0:44:15And with this product, unlike some in the past,
0:44:15 > 0:44:19Apple was not going to overestimate demand.
0:44:19 > 0:44:23- Indeed, quite the reverse. - When we were planning the launch of the iPod across Europe,
0:44:23 > 0:44:26an important thing we had to manage with the iPod
0:44:26 > 0:44:30was to make sure we kind of undersupplied the demand
0:44:30 > 0:44:32so that we'd only roll it out
0:44:32 > 0:44:36almost in response to cities crying out for those iPods to be available
0:44:36 > 0:44:40and that's how we kept that kind of cachet for the iPod in its early years.
0:44:40 > 0:44:44And we'd use extensive data research to understand
0:44:44 > 0:44:49what the kind of relative strength of doing that in Rome versus Madrid would be.
0:44:49 > 0:44:54Unlike most other MP3 players, which worked with either Macs or PCs,
0:44:54 > 0:44:58the iPod needed Apple software running on an Apple computer.
0:44:58 > 0:45:03For Steve Jobs, this closed system seemed to be a virtuous circle.
0:45:03 > 0:45:05When they sell iPods at the beginning,
0:45:05 > 0:45:07it locks you into the system,
0:45:07 > 0:45:11and iPods have an immediate impact
0:45:11 > 0:45:15on Apple Mac sales within the profitability of the corporation as a whole.
0:45:15 > 0:45:22Ultimately, Jobs realised that Apple could make even more money by creating an iPod for Windows.
0:45:22 > 0:45:27Steve knew that, for him to take Apple to another place,
0:45:27 > 0:45:30he had to break out of the Mac ghetto,
0:45:30 > 0:45:35which is his gated community of loyal fans who love the product.
0:45:35 > 0:45:39Music became his way of reaching that larger audience.
0:45:39 > 0:45:44- ..is the new iPod. - Apple was on a roll.
0:45:44 > 0:45:50The iPod quickly became the number one digital music player in America and beyond.
0:45:50 > 0:45:53You suddenly saw them everywhere,
0:45:53 > 0:45:57and its success set the company on a new course.
0:45:57 > 0:46:02There was no vision of there's going to be an iPod, then an iPhone, then an iPad.
0:46:02 > 0:46:07However, there was a vision that we're going to be more consumer,
0:46:07 > 0:46:09more of a consumer electronics company.
0:46:14 > 0:46:19This is our store, and the store is divided into four parts.
0:46:19 > 0:46:24The first quarter of the store has our home section...
0:46:24 > 0:46:27Apple was on its way to becoming a global phenomenon.
0:46:27 > 0:46:30Wanting to build a consumer electronics company,
0:46:30 > 0:46:35the next step was to go into consumer electronics stores, Apple style,
0:46:35 > 0:46:38with shops designed to match the products in them.
0:46:40 > 0:46:45What's interesting about Apple's move into retail
0:46:45 > 0:46:47is it wasn't so much Apple opening up a shop,
0:46:47 > 0:46:49but rather Apple opening up its experience
0:46:49 > 0:46:54and allowing people to buy Apple products in the kind of style,
0:46:54 > 0:46:58in the kind of environment, that actually really suited that brand.
0:46:58 > 0:47:03Every facet of the way the stores look was influenced by Steve Jobs.
0:47:03 > 0:47:07He even held the American patent for the design of the glass stairs.
0:47:08 > 0:47:14The fact that Steve Jobs was a sort of hippy control freak was an extraordinary collision,
0:47:14 > 0:47:18but it's worked absolutely brilliantly for Apple,
0:47:18 > 0:47:23which is you've got this impression of hippy chic and relaxed and everything else,
0:47:23 > 0:47:28whereas actually this organisation is one of the most controlled organisations in the world.
0:47:28 > 0:47:33Apple boasts some of the world's most profitable retail space,
0:47:33 > 0:47:36but the shops are about far more than selling products.
0:47:36 > 0:47:40An Apple Store is a temple to a belief system.
0:47:40 > 0:47:43They conform to the structure of a religion.
0:47:43 > 0:47:47They have the objects of veneration, the phone, the tablet,
0:47:47 > 0:47:50they have a powerful priesthood.
0:47:50 > 0:47:53They have a congregation of people who belong and who believe in Apple,
0:47:53 > 0:47:59but ultimately they have the Messiah, the religious leader, the late Steve Jobs.
0:48:00 > 0:48:05Apple's ethos, defined by that Think Different slogan,
0:48:05 > 0:48:08turned out to be a remarkably valuable business philosophy.
0:48:08 > 0:48:12It had helped the company reinvent computing and retailing,
0:48:12 > 0:48:17and next it would take Apple to yet another revolutionary endeavour.
0:48:17 > 0:48:23Steve Jobs was one of those people who recognised that, in the digital age, content would be key.
0:48:24 > 0:48:27The iPod was designed to be a way to synchronise your music
0:48:27 > 0:48:30from your computer to get it into your pocket.
0:48:30 > 0:48:36It was after the success of the iPod that Apple said there's a market for us to sell music,
0:48:36 > 0:48:39but that was not the original plan.
0:48:39 > 0:48:43While Jobs needed music for the iPod,
0:48:43 > 0:48:45the music industry had a problem of its own.
0:48:45 > 0:48:51The rise of file-sharing websites like Napster was threatening the way the industry made money.
0:48:51 > 0:48:56So you went from a world in which you had to go buy stuff in a store
0:48:56 > 0:48:59to a world in which you had this cloud of music
0:48:59 > 0:49:04that was, in effect, an unlimited source of free music,
0:49:04 > 0:49:08which was a very threatening idea to the music industry.
0:49:08 > 0:49:13Faced with this crisis, the record industry had tried to close Napster down
0:49:13 > 0:49:16and sue people who downloaded music for free.
0:49:16 > 0:49:18They were alarmed by Apple's iPod.
0:49:20 > 0:49:24The record labels were very unhappy with that and felt that,
0:49:24 > 0:49:28only because Napster was hard to use, could the music survive,
0:49:28 > 0:49:31and here was Apple coming out with a digital music product
0:49:31 > 0:49:35that was easy to use and was going to make it much more popular.
0:49:35 > 0:49:39Even so, some in the music industry thought Apple might be able to help.
0:49:40 > 0:49:45In 2002, a delegation of music executives travelled to Apple's headquarters
0:49:45 > 0:49:48to present a vision for how they might collaborate.
0:49:48 > 0:49:52Steve Jobs did not exactly warm to their ideas.
0:49:52 > 0:49:55He listens, but he isn't listening patiently.
0:49:55 > 0:50:01At one point he waves his arms and says, "Stop, stop, that's not why I'm here.
0:50:01 > 0:50:04"I didn't come here to listen to you.
0:50:04 > 0:50:08"I have my own views on what we need to do.
0:50:08 > 0:50:12"You guys in the music business have had your heads up your asses all these years!"
0:50:12 > 0:50:19Which made everybody on my side of the table mute, silent.
0:50:19 > 0:50:24And I said, "Steve, that's exactly why we're here. We need your help."
0:50:24 > 0:50:29Other technology companies had tried and failed to persuade the major labels
0:50:29 > 0:50:34to license their music online, but Jobs was different.
0:50:34 > 0:50:36Jobs was the biggest share owner in Disney.
0:50:36 > 0:50:39Because he was in such a strong position as a Hollywood player
0:50:39 > 0:50:45that he was able to bang the heads together of the music companies and say this is how it's going to be.
0:50:45 > 0:50:51To Jobs, it was obvious the record labels didn't understand the new internet-savvy consumers.
0:50:51 > 0:50:56He insisted the way to beat file-sharing was not to punish people for doing it
0:50:56 > 0:51:01but to offer a more convenient reasonably-priced alternative.
0:51:01 > 0:51:08In less than a year, every major label had signed up to the Apple iTunes store.
0:51:08 > 0:51:12He just got the deal done and that was an incredible achievement.
0:51:12 > 0:51:14That in pure business terms is deal-making,
0:51:14 > 0:51:18which is a recognisable feature of your great tycoon.
0:51:18 > 0:51:23In its first week, the iTunes store sold more than 1 million tracks.
0:51:23 > 0:51:26It was so successful by the end of the first year,
0:51:26 > 0:51:32the leverage had shifted from the owner of the content to Apple.
0:51:32 > 0:51:37Some artists believe Apple now wields too much power through iTunes,
0:51:37 > 0:51:39putting profits before musicians.
0:51:39 > 0:51:44..whose works it bleeds like a digital vampire for its enormous commission,
0:51:44 > 0:51:49that it decides, you know, we'll take 30%.
0:51:49 > 0:51:51It's a bit of a pity that everyone's online these days.
0:51:51 > 0:51:55But you can't blame them. It's just the modern world, innit?
0:51:55 > 0:51:56But what a business it is.
0:51:56 > 0:52:01IPods give Apple power over the music industry through the connection to iTunes,
0:52:01 > 0:52:05and, in turn, the appeal of iTunes boosts sales of iPods.
0:52:05 > 0:52:09If I can fulfil all your needs, then I'll get all your money,
0:52:09 > 0:52:12and that's Steve's approach.
0:52:12 > 0:52:19He wanted to give people the devices they would use to consume video and audio,
0:52:19 > 0:52:22then he wanted to give them video and audio to consume.
0:52:22 > 0:52:26He's created the future of entertainment.
0:52:28 > 0:52:31Jobs was usually very guarded about his private life,
0:52:31 > 0:52:36but in 2005 he chose a very public stage, a speech to graduating students,
0:52:36 > 0:52:40to reveal he had been battling serious illness.
0:52:40 > 0:52:45About a year ago, I was diagnosed with cancer.
0:52:45 > 0:52:47I had a scan at 7.30 in the morning
0:52:47 > 0:52:49and it clearly showed a tumour on my pancreas.
0:52:49 > 0:52:54My doctor advised me to go home and get my affairs in order,
0:52:54 > 0:52:58which is doctor's code for "prepare to die".
0:52:58 > 0:53:03It turned out to be a very rare form of pancreatic cancer that is curable with surgery.
0:53:03 > 0:53:08I had the surgery and thankfully I'm fine now.
0:53:08 > 0:53:12In reality, Jobs would continue his struggle with cancer for the next six years.
0:53:12 > 0:53:17His diagnosis had a profound impact.
0:53:17 > 0:53:21Death is very likely the single best invention of life.
0:53:21 > 0:53:25It's life's change agent, it clears out the old to make way for the new.
0:53:25 > 0:53:30Your time is limited so don't waste it living someone else's life.
0:53:30 > 0:53:34It's a philosophy that Jobs himself followed.
0:53:34 > 0:53:40It's really amazing in hindsight what he accomplished while he was sick.
0:53:40 > 0:53:44Not only was he fighting this debilitating disease,
0:53:44 > 0:53:48he was leading a huge corporation doing earth-shaking work
0:53:48 > 0:53:52that affects hundreds of millions of people.
0:53:52 > 0:53:57Steve Jobs' next major project would bring together everything he stood for,
0:53:57 > 0:54:01a bold raid into a market into which the company had never been a player.
0:54:03 > 0:54:06IPod. A phone.
0:54:06 > 0:54:07CHEERING AND APPLAUSE
0:54:07 > 0:54:10Are you getting it?
0:54:10 > 0:54:15It would revolutionise the way a long-established industry worked, and make Apple billions.
0:54:16 > 0:54:20And we're calling it... iPhone.
0:54:21 > 0:54:27He said, "I think that we'll succeed in this marketplace
0:54:27 > 0:54:29"because we're a software company,
0:54:29 > 0:54:33"and everyone we're going to compete with are hardware companies."
0:54:33 > 0:54:37I didn't realise at the time just how profound that was.
0:54:40 > 0:54:44Apple's iPhone became the fastest selling handset on the market.
0:54:45 > 0:54:48People weren't buying them just to make phone calls.
0:54:48 > 0:54:51Steve, I love you!
0:54:51 > 0:54:54What made the iPhone different was apps.
0:54:55 > 0:54:59The iPhone was the gateway to a world of downloadable software
0:54:59 > 0:55:04for anything from shopping to finding love, or lust, nearby.
0:55:05 > 0:55:10He came into the marketplace and absolutely demonstrated to people
0:55:10 > 0:55:14how you could package up bits of the internet and present it to people
0:55:14 > 0:55:20in a way that was really simple and fast and digestible in the form of apps.
0:55:21 > 0:55:26With apps, Apple had worked out how to open up its closed system
0:55:26 > 0:55:30just enough to keep earning money from its latest iPods, iPhones and iPads,
0:55:30 > 0:55:36even after you've bought them. The money keeps rolling in.
0:55:38 > 0:55:39For the first time ever,
0:55:39 > 0:55:44Apple briefly topped Exxon Mobil as the world's most valuable company.
0:55:44 > 0:55:49All the more amazing as android phones and Dell and HP computers outsell Apple.
0:55:49 > 0:55:52Oddly enough, the market share of Apple is very low.
0:55:52 > 0:55:56It's incredibly low in computers but they make enormous profit out of it.
0:55:56 > 0:56:00It's actually low in smartphones. It's not the leader in the world
0:56:00 > 0:56:04by any means, yet the money they make make them the largest company on Earth.
0:56:04 > 0:56:08Apple is much stronger than its competition,
0:56:08 > 0:56:14and so they need to make sure they don't get complacent
0:56:14 > 0:56:20because the way they'll lose some day is when someone quietly comes up behind them
0:56:20 > 0:56:24and does something that is now better.
0:56:24 > 0:56:26Over the course of more than three decades,
0:56:26 > 0:56:31some might argue that Apple has travelled far from its origins,
0:56:31 > 0:56:37as a bunch of Californians railing against IBM to become, itself, an all-powerful Big Brother.
0:56:37 > 0:56:40But it is a more complicated and interesting story.
0:56:40 > 0:56:44If Steve Jobs had just been a rebel, he wouldn't have got far,
0:56:44 > 0:56:47but it's because he always had that inner-hippy
0:56:47 > 0:56:52that Apple became so much more than just another computer company.
0:56:52 > 0:56:57There was one aspect of Steve Jobs' battle with cancer he hadn't revealed.
0:56:57 > 0:57:01He'd delayed having surgery for nine months after he was diagnosed.
0:57:01 > 0:57:04Instead he'd tried alternative remedies
0:57:04 > 0:57:09and a strict vegan diet, against the advice of those closest to him.
0:57:09 > 0:57:11And the cancer had spread.
0:57:11 > 0:57:15He was the kind of person that could convince himself of things
0:57:15 > 0:57:20that weren't necessarily true, and that always worked with him for designing products,
0:57:20 > 0:57:24where he could go to people and ask them to do something that they thought was impossible.
0:57:24 > 0:57:28And I think he truly thought that,
0:57:28 > 0:57:33through some unconventional means, he could cure himself.
0:57:35 > 0:57:38A Californian suburb.
0:57:38 > 0:57:42This was Steve Jobs' house after his death at the age of 56.
0:57:44 > 0:57:48Home to no ordinary CEO, billionaire or hippie.
0:57:49 > 0:57:52# Buckets or rain, buckets of tears
0:57:52 > 0:57:55# Got all them buckets coming out of my ears
0:57:55 > 0:57:59# Buckets of moonbeams in my hand... #
0:57:59 > 0:58:01He wasn't an inventor, he wasn't a code writer,
0:58:01 > 0:58:05he wasn't a designer, he wasn't a businessman really.
0:58:05 > 0:58:08I mean the word people use is visionary.
0:58:08 > 0:58:11If you break it down in the sense of he saw things,
0:58:11 > 0:58:14in that sense he was a visionary. He just saw things.
0:58:15 > 0:58:21As near as I can tell, Steve Jobs never left his counter-cultural frame of reference,
0:58:21 > 0:58:25and so his way of staying forever young was to stay forever hippy.
0:58:25 > 0:58:30Stay hungry, stay foolish. Thank you all very much.
0:58:30 > 0:58:32APPLAUSE
0:58:32 > 0:58:34Subtitles by Red Bee Media Ltd
0:58:34 > 0:58:35E-mail subtitling@bbc.co.uk