Steve Jobs: Billion Dollar Hippy


Steve Jobs: Billion Dollar Hippy

Similar Content

Browse content similar to Steve Jobs: Billion Dollar Hippy. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

October this year.

0:00:020:00:03

Around the world, devoted fans

0:00:030:00:05

mourned the death of Steve Jobs,

0:00:050:00:07

the force of nature behind Apple.

0:00:070:00:11

He distorted reality. It's a mixture of charisma, chutzpah,

0:00:110:00:15

bullshit, self-belief, self-delusion,

0:00:150:00:18

and insane ambition.

0:00:180:00:21

Apple's hi-tech products have inspired fervour.

0:00:240:00:27

Oh, it's beautiful. It's very sexy.

0:00:270:00:29

Defining cool consumerism for a worldwide tribe.

0:00:290:00:34

Hyped by the man who personified the brand.

0:00:340:00:38

It works like magic.

0:00:380:00:39

They look so good, you want to lick 'em.

0:00:390:00:42

It's unbelievable.

0:00:420:00:43

No-one had quite that mixture of arrogance,

0:00:430:00:47

humility, talent and presence, which Steve Jobs had.

0:00:470:00:49

He's changed music, he's changed movies, he's changed computers a couple of times.

0:00:490:00:54

He's created industries that we didn't think we needed.

0:00:540:00:58

Jobs was a perfectionist.

0:00:580:01:00

To Steve, everything was about taste. Just like someone writing a great piece of music.

0:01:000:01:05

And a tyrant.

0:01:050:01:06

Steve Jobs yelling at you with his full force is kind of

0:01:060:01:09

a pretty frightening thing for most people.

0:01:090:01:13

How did a drug-taking college dropout

0:01:130:01:16

create one of the most successful corporations in the world?

0:01:160:01:19

His hippy background made him a better billionaire.

0:01:190:01:23

This is the inside story

0:01:230:01:25

of how Steve Jobs took Apple

0:01:250:01:27

from a suburban garage to global supremacy.

0:01:270:01:31

This is the launch of the Macintosh computer in 1984.

0:01:390:01:43

An early glimpse of the way Apple has marketed itself

0:01:440:01:48

to the world ever since.

0:01:480:01:49

MUSIC: "Chariots Of Fire" by Vangelis

0:01:530:01:55

The Macintosh was the first computer

0:02:040:02:06

with a mouse that was meant for all of us.

0:02:060:02:09

It has turned out insanely great.

0:02:100:02:13

APPLAUSE

0:02:130:02:17

We were all very idealistic and passionate.

0:02:190:02:22

This was our personal cause.

0:02:220:02:23

In this auditorium, three crucial factors

0:02:260:02:29

came together for the first time.

0:02:290:02:31

A new computer designed to be easier to use

0:02:310:02:35

than any that had come before.

0:02:350:02:36

Sold with an audacious message of revolution.

0:02:360:02:40

And hyped by Steve Jobs himself.

0:02:410:02:45

I'd like to open the meeting with a an old poem by Dylan. That's Bob Dylan.

0:02:450:02:49

LAUGHTER

0:02:490:02:51

Come writers and critics who prophesise with your pens

0:02:510:02:54

And keep your eyes wide...

0:02:540:02:56

What started here in 1984, with the launch of the Mac

0:02:560:03:00

became the template that certainly got improved upon as Apple became

0:03:000:03:05

one of the great marketing companies that the world has ever seen.

0:03:050:03:08

..for the loser now will be later to win

0:03:080:03:10

for the times they are a-changin'.

0:03:100:03:13

APPLAUSE

0:03:130:03:15

The whole auditorium of about 2,500 people

0:03:150:03:18

gave it a standing ovation.

0:03:180:03:20

It was a very, very emotional moment because it was no longer ours.

0:03:210:03:25

From that day forward, it was no loner ours, we couldn't change it.

0:03:250:03:29

Jobs cast Apple as the plucky underdog,

0:03:290:03:31

taking on a domineering rival.

0:03:310:03:33

IBM wants it all

0:03:330:03:36

and is aiming its guns on its last obstacle to industry control - Apple.

0:03:360:03:43

Will big blue dominate the entire computer industry?

0:03:430:03:48

The entire information age?

0:03:480:03:51

Was George Orwell right about 1984?

0:03:510:03:55

APPLAUSE

0:03:550:03:57

'We celebrate the first glorious anniversary...'

0:03:570:04:01

Apple created an advert that painted IBM as Big Brother.

0:04:010:04:06

the enemy of freedom.

0:04:060:04:08

These images have helped define Apple as a brand ever since.

0:04:080:04:13

'We shall prevail.'

0:04:140:04:17

That was the birth of the Apple brand.

0:04:200:04:23

It was talked about

0:04:230:04:25

and it was literally focusing on a revolution.

0:04:250:04:28

And that revolutionary theme was absolutely at the core

0:04:280:04:32

of what made Apple successful over the next years.

0:04:320:04:35

The 1984 ad was the first time

0:04:350:04:38

when you started to get a real sense of the Apple club.

0:04:380:04:40

People who defined themselves by their association with the brand.

0:04:410:04:44

That they weren't IBM clones, they were these creative thinkers

0:04:440:04:48

who had a different attitude, in some way.

0:04:480:04:51

I think that's been the kind of common currency

0:04:510:04:54

that's been carried on since then.

0:04:540:04:55

Nearly three decades on,

0:04:550:04:58

Apple was still following the marketing template

0:04:580:04:59

set out all those years ago.

0:04:590:05:02

This year, Steve Jobs was centre stage for the launch

0:05:040:05:07

of its latest tablet.

0:05:070:05:09

And just like in 1984, his pitch

0:05:090:05:13

was that Apple stands for something more than selling computers.

0:05:130:05:17

It's in Apple's DNA

0:05:170:05:19

that technology alone is not enough.

0:05:190:05:23

That it's technology married with liberal arts,

0:05:230:05:27

married with the humanities

0:05:270:05:29

that yields us the result that makes our hearts sing.

0:05:290:05:35

From the launch of the Macintosh

0:05:350:05:37

to the unveiling of the latest iPad,

0:05:370:05:40

two events, which span a quarter of a century,

0:05:400:05:43

and yet which reveal a consistent vision in the company Jobs created.

0:05:430:05:48

It wasn't a vision born of a business school education.

0:05:480:05:51

It wasn't a product of consumer focus groups.

0:05:510:05:53

The roots of that vision

0:05:530:05:55

lay in the Californian counter culture in which he grew up.

0:05:550:06:00

MUSIC: "The Times They Are A-Changin'" by Bob Dylan

0:06:030:06:07

# Come gather round, people wherever you roam... #

0:06:070:06:11

The young Steve Jobs came to believe technology

0:06:110:06:15

COULD change the world.

0:06:150:06:18

In California in the 1960s and '70s,

0:06:200:06:23

Jobs found himself at the centre of two colliding worlds.

0:06:230:06:26

The hippy movement

0:06:270:06:29

and computers.

0:06:290:06:31

# Oh, the times, they are a-changin'... #

0:06:310:06:37

We spent a lot of time driving around in his old Volvo.

0:06:370:06:40

I don't remember ever listening to anything other than Bob Dylan tapes.

0:06:400:06:44

We would play them over and over again.

0:06:440:06:46

Born in 1955, Jobs was adopted by a modest family

0:06:470:06:52

and grew up in the Santa Clara Valley.

0:06:520:06:55

It was becoming better known as Silicon Valley

0:06:560:06:59

as hi-tech firms sprang up.

0:06:590:07:01

And nearby,

0:07:070:07:08

San Francisco was becoming the epicentre of the counter culture.

0:07:080:07:12

Jobs opened himself up to both.

0:07:120:07:15

He's got a lot of compartments in his mind.

0:07:160:07:19

He was intense and thoughtful and I liked that about him.

0:07:190:07:24

At college, Jobs met Daniel Kottke.

0:07:250:07:28

Jobs quickly dropped out of his course

0:07:280:07:30

and lost no time tuning in.

0:07:300:07:33

We both got copies of this new book, Be Here Now.

0:07:330:07:37

It was written by Ram Dass and all about his trip to India,

0:07:370:07:41

searching for a holy man who could explain what psychedelics do.

0:07:410:07:46

It was fascinating for me

0:07:460:07:47

and for Steve also and so that was the basis of our friendship.

0:07:470:07:52

Jobs became a hippy,

0:07:550:07:56

pursuing paths to personal liberation.

0:07:560:07:59

He and Kottke took their own trip to India,

0:07:590:08:03

and LSD, as this extraordinary tape reveals.

0:08:030:08:08

He spent long periods at a commune on a farm in Oregon.

0:08:230:08:27

We spent a whole week harvesting apples and, while we were at it,

0:08:270:08:32

we decided we would just fast on apples and see how that worked

0:08:320:08:36

and, um...

0:08:360:08:38

it makes you very light-headed, cos it's just like sugar.

0:08:380:08:41

Jobs was inspired by the counter culture

0:08:410:08:44

to believe society was there to be reshaped.

0:08:440:08:48

As near as I can tell,

0:08:480:08:49

Steve Jobs always had that ambition to change the world.

0:08:490:08:52

And he expected to do that by empowering, um...

0:08:520:08:57

everybody.

0:08:570:08:59

But Jobs didn't share all the views of his counter culture buddies.

0:09:000:09:03

Many hippies saw computers as tools of oppression,

0:09:030:09:07

produced by big businesses

0:09:070:09:09

to extend the sway of other big businesses.

0:09:090:09:12

Jobs, though, had grown up experimenting with electronics at home.

0:09:120:09:16

People who've done that

0:09:180:09:20

have another angle on, er, whether technology is bad or good.

0:09:200:09:24

They think that technology that pushes them around is bad

0:09:240:09:28

and technology that they can

0:09:280:09:30

push in their own direction they think is good.

0:09:300:09:33

While he was still at school,

0:09:330:09:35

Jobs worked at one of the big computer companies near his home in Silicon Valley.

0:09:350:09:39

And he made a friend who would shape his destiny.

0:09:390:09:42

We talked about electronics. I said, "I design computers.

0:09:420:09:45

"I can, you know, do any of them." He had worked at Hewlett Packard

0:09:450:09:48

and built himself what's called a frequency counter.

0:09:480:09:51

So we hit it off.

0:09:510:09:52

Despite his hippy outlook, Jobs had a ruthless streak.

0:09:520:09:56

He was asked by the fledgling computer company Atari to design a new Breakout game.

0:09:560:10:01

Jobs asked Wozniak to do it in just four days,

0:10:010:10:04

telling his friend they would share the fee.

0:10:040:10:07

He presented it like we were splitting the money 50/50,

0:10:070:10:10

but actually, it was, you know, probably a different story.

0:10:100:10:14

Wozniak worked round the clock to deliver the goods

0:10:140:10:18

but later discovered Jobs had paid him considerably less

0:10:180:10:21

than half the sum he had received from Atari.

0:10:210:10:24

You didn't think, "I can't trust this guy"?

0:10:270:10:29

or "He's a bit too sharp for me"?

0:10:290:10:31

Steve could have just said,

0:10:310:10:33

"I need money to buy into this commune up in Oregon."

0:10:330:10:36

-Have you never harboured any bitterness that he might have?

-I don't harbour bitterness.

0:10:360:10:40

Even if somebody just did that right to my face, I would not harbour bitterness.

0:10:400:10:44

But I would acknowledge the truth. Um, I did cry.

0:10:440:10:48

I cried, you know, quite a bit, actually, when I read it in a book.

0:10:480:10:51

The seeds of Apple were sown when Wozniak introduced Jobs

0:10:510:10:57

to a subterranean world of DIY technology enthusiasts.

0:10:570:11:01

The Homebrew Computer Club had ideas of how small, little people

0:11:040:11:09

who knew things about computers

0:11:090:11:10

could change the world, could become masters.

0:11:100:11:14

The Homebrew Computer Club took computing

0:11:140:11:17

out of the hands of big business.

0:11:170:11:20

What happened was you wanted a computer or a piece of software

0:11:210:11:25

or some product that didn't exist.

0:11:250:11:27

You looked around, it didn't exist. So you built it.

0:11:270:11:30

Then you showed it to your friends, cos everyone wants to show off,

0:11:300:11:33

and your friends would say, "This is great, can I have one?"

0:11:330:11:36

The values were sharing. If you have parts that can help people.

0:11:360:11:40

If you have knowledge, you'll share.

0:11:400:11:43

Wozniak brought Jobs to the Homebrew Computer Club

0:11:430:11:46

where he was showing a new computer he had made.

0:11:460:11:50

It would become the Apple I.

0:11:500:11:53

He saw a business opportunity that all these people wanted to build

0:11:530:11:56

my computer design, but they didn't have building skills.

0:11:560:12:00

And he thought, "We'll put out some money,

0:12:000:12:03

"design a PC board, we'll make it for 20, we'll sell it for 40."

0:12:030:12:07

And I didn't know if we'd sell enough to get our money back.

0:12:070:12:11

We'd have to sell about 50.

0:12:110:12:13

And I didn't know if there were 50 people who would buy my computer.

0:12:130:12:17

And Steve said, "Yeah, maybe we won't get our money back,

0:12:170:12:20

"but then for once in our lives,

0:12:200:12:22

"finally, the two of us will have our own company."

0:12:220:12:24

Wow, man. He was... OK, he was the leader on that.

0:12:240:12:27

In 1976, Wozniak and Jobs began selling the Apple I computer

0:12:290:12:34

from the Jobs family garage.

0:12:340:12:37

Buyers had to add their own case.

0:12:370:12:40

The birth of Apple as a company had been masterminded by Jobs,

0:12:400:12:43

a hippy with a business brain.

0:12:430:12:47

A surprising number of people who came along as hippies

0:12:470:12:51

and counter-culture folks in the '60s and '70s

0:12:510:12:53

wound up going into business.

0:12:530:12:56

Business was a way to have some freedom in the world.

0:12:560:12:59

Steve Jobs later said he'd set up the business almost by chance.

0:12:590:13:04

We started Apple simply because we wanted this computer for ourselves

0:13:040:13:07

and our immediate friends wanted one once they saw us build a prototype.

0:13:070:13:11

So gradually, we were pulled into business.

0:13:110:13:14

We didn't set out to build a large company.

0:13:140:13:16

We started out to build computers for us and our friends.

0:13:160:13:19

To Apple's co-founder, the reality is a little less idealistic.

0:13:190:13:24

Steve was always sort of focussed on if you can build things

0:13:240:13:27

and sell them, you can have a company. And the way you make money

0:13:270:13:31

and importance in the world is with companies.

0:13:310:13:33

And he always spoke that he wanted to be one of those important people.

0:13:330:13:37

So he'd got the business side pretty clearly.

0:13:370:13:40

He got the business side but he did tie it in philosophically with,

0:13:400:13:43

"This is how you get good things to people."

0:13:430:13:46

It wasn't, "I only want money."

0:13:460:13:51

It was Wozniak's next computer,

0:13:510:13:52

which propelled Apple into the stratosphere.

0:13:520:13:55

Released in 1977,

0:13:550:13:57

the Apple II was the first home computer with colour graphics.

0:13:570:14:02

Over the next three years, sales grew rapidly

0:14:040:14:07

to more than 150 million,

0:14:070:14:10

taking Apple from a suburban garage to the pinnacle of a new industry...

0:14:100:14:15

personal computing.

0:14:150:14:17

There are some great partnerships, aren't there, in the world?

0:14:170:14:20

One thinks of Lennon and McCartney and you and Steve Jobs.

0:14:200:14:23

Who was Lennon, who was McCartney?

0:14:230:14:25

I am so honoured to be considered in that kind of category,

0:14:250:14:30

and yet it's true, it's true.

0:14:300:14:32

You know, Steve and I, we were like a...

0:14:320:14:35

Lennon McCartney partnership, exactly. I couldn't say who was who.

0:14:350:14:38

I always thought people always attributed me with Lennon

0:14:380:14:41

because I had really built and designed the machines.

0:14:410:14:45

And then Steve knew how to take it to the public.

0:14:450:14:48

Um, but he had, you know, his own type of brilliance too.

0:14:480:14:50

When Apple went public in 1980, it was the most over-subscribed

0:14:500:14:55

offering of shares since that of Ford motors in 1956.

0:14:550:15:00

Success on this scale changed Apple.

0:15:000:15:04

Any company when it becomes public

0:15:040:15:06

and becomes bigger becomes different. Politics seep in.

0:15:060:15:10

The company goal from that point on wasn't to change the world,

0:15:100:15:15

but to increase the value to shareholders.

0:15:150:15:18

It certainly did that.

0:15:180:15:20

It was worth nearly 2 billion by the end of 1980.

0:15:200:15:24

And Jobs had a quarter of a billion.

0:15:240:15:26

But now money men and women flooded in to Apple,

0:15:260:15:29

and Jobs, just 25, wasn't really taken seriously by them.

0:15:290:15:34

Steve was the chairman, but he wasn't seen as the person

0:15:340:15:38

who had the stature and the maturity to run the company.

0:15:380:15:42

Especially as the world around Apple was changing fast.

0:15:440:15:48

Competition in the personal computer market was intensifying.

0:15:480:15:51

In 1981, IBM launched its response to the Apple II -

0:15:510:15:56

The IBM PC.

0:15:560:15:58

'A computer expert will show you the system that's right for you.'

0:15:580:16:02

It was the opening shot of a battle that would rage for 15 years.

0:16:020:16:07

Apple went from the leading personal computer company

0:16:070:16:12

to the second-place company

0:16:120:16:14

and actually, was in a very precarious position in that

0:16:140:16:17

because the IBM system could be used in companies other than IBM

0:16:170:16:23

and you could see where Apple would fall further and further back.

0:16:230:16:28

Apple needed a seasoned Chief Executive to pilot the company

0:16:300:16:33

through increasingly tough times.

0:16:330:16:36

Steve Jobs' search took him to New York

0:16:360:16:39

and to John Sculley, President of the soft drinks company, Pepsi.

0:16:390:16:43

The two men began poles apart.

0:16:430:16:46

The world I came from was hierarchical.

0:16:460:16:48

It was big business. It was very competitive

0:16:480:16:53

and the idea of building a company that was going to change the world

0:16:530:16:58

was completely foreign from anything that I'd ever been exposed to.

0:16:580:17:03

How Jobs persuaded Sculley to take the job

0:17:030:17:07

is the stuff of business legend.

0:17:070:17:09

Steve had these deep penetrating, brown eyes

0:17:090:17:14

and he just stared right at me, probably, you know, 15 inches away.

0:17:140:17:18

He said, "Do you want to sell sugar water for the rest of your life,

0:17:180:17:22

"or do you want to come with me and change the world?"

0:17:220:17:26

Kind of knocked the wind out of me,

0:17:260:17:28

because no-one had ever said anything like that to me before.

0:17:280:17:32

Sculley was a pragmatic operator,

0:17:320:17:34

a marketing expert who knew exactly what Apple should do.

0:17:340:17:38

What they needed was someone who could keep the Apple II

0:17:380:17:42

commercially alive and generating cash for about another three years.

0:17:420:17:46

After several new product lines had failed to take off,

0:17:460:17:50

the income from the Apple II was keeping the company alive.

0:17:500:17:54

But Apple's hopes of a revival rested on a new home computer,

0:17:540:17:57

the Macintosh, named after a variety of Apple.

0:17:570:18:02

Jobs set out to build a computer that would blow IBM's PC away.

0:18:040:18:09

There was enough of the ordinary corporate executive about him

0:18:090:18:13

to want to beat a rival.

0:18:130:18:15

But there was little else conventional about Steve Jobs.

0:18:150:18:18

He wanted computers to be simple and pleasurable to use.

0:18:180:18:22

He wanted our relationship with them to be more human and intimate.

0:18:220:18:26

And that approach to technology has been Apple's hallmark ever since.

0:18:260:18:31

The Macintosh team was full of rebel spirit.

0:18:340:18:38

We were all young, we were all the same age, and we all thought

0:18:380:18:42

we could do better than has ever been done before.

0:18:420:18:45

Jobs thought it would take a year to build the Macintosh.

0:18:450:18:48

In fact, it would take more than three.

0:18:480:18:50

He's got a "reality distortion field".

0:18:500:18:54

Steve wanted the impossible

0:18:540:18:56

and he was somehow able to convince everyone

0:18:560:18:59

that the impossible was possible.

0:18:590:19:02

Jobs was determined the Macintosh would be easy to use.

0:19:020:19:06

It would have a mouse and icons on screen,

0:19:060:19:09

a first for an affordable personal computer.

0:19:090:19:13

The story of how Jobs brought that mouse to the world

0:19:130:19:15

explodes a myth about him -

0:19:150:19:17

That he invented revolutionary technology.

0:19:170:19:20

You see, Jobs didn't operate in an intellectual vacuum.

0:19:200:19:25

Nearby, in Silicon Valley, the Xerox corporation had a research division

0:19:250:19:30

called PARC.

0:19:300:19:31

'And the function of spatial frequency is something like this.'

0:19:310:19:35

It was full of free-thinking technological radicals

0:19:350:19:40

and inspirational ideas.

0:19:400:19:41

It was just a kind of dream place.

0:19:410:19:45

We had a general overall vision about what we called

0:19:450:19:50

"the office of the future."

0:19:500:19:52

And that was it. We were told to figure out how to do that.

0:19:520:19:55

Jobs was desperate to take a look inside

0:19:550:19:58

this precious storehouse of ideas.

0:19:580:20:00

He got his chance when Xerox made an investment in Apple

0:20:000:20:04

and invited him in.

0:20:040:20:07

I demonstrated various technologies that our group had,

0:20:070:20:10

but the things that stood out to the visitors

0:20:100:20:13

were the pointing device, the mouse, which we hadn't invented.

0:20:130:20:17

It had been around for 15 years. We had just improved it,

0:20:170:20:20

but it wasn't something that most people had ever seen before.

0:20:200:20:23

Larry Tesler was demonstrating how a computer with icons

0:20:230:20:27

on the screen could be controlled by this novel gadget. A mouse.

0:20:270:20:31

Jobs couldn't believe what he was seeing.

0:20:310:20:34

He started pacing around the room very nervously almost,

0:20:340:20:39

and then more excitedly and then he just couldn't hold it back.

0:20:390:20:42

He just had to talk.

0:20:420:20:44

So, he started saying things like, "You're sitting on a gold mine.

0:20:440:20:49

"This is insanely great. It is just amazing.

0:20:490:20:52

"Why aren't you doing anything with this?"

0:20:520:20:55

Unlike the vast XEROX corporation, Jobs acted swiftly.

0:20:550:21:00

I went into his office, sat down and said,

0:21:000:21:02

"Steve, I've been thinking about a few product ideas"

0:21:020:21:05

and hardly had I got the sentence out and he said, "Stop, Dean.

0:21:050:21:10

"I know exactly what we need to do."

0:21:100:21:12

When he said "a mouse", I looked at him and said "A mouse?"

0:21:120:21:15

I had no clue what a mouse was.

0:21:150:21:17

Xerox saw the mouse as part of an expensive business computer.

0:21:170:21:23

Jobs saw it very differently.

0:21:230:21:24

He gave me a very clear design brief.

0:21:240:21:26

The mouse had to have four things.

0:21:260:21:28

The first was we had to be able to build it for less than 15.

0:21:280:21:32

Low cost consumer product. Secondly, it had to last for two years.

0:21:320:21:36

Third, it needed to work on a regular desktop, Formica or metal.

0:21:360:21:40

And then, finally, he leaned back in his chair,

0:21:400:21:42

put his hand on his knee and he said, "And work on my Levi's."

0:21:420:21:46

The mouse, as we now know it, was born.

0:21:460:21:48

Jobs had tweaked existing technology to great effect,

0:21:480:21:52

just as he would over the next three decades.

0:21:520:21:56

More editor than inventor, Jobs had an instinct for innovation,

0:21:560:22:00

pouncing on a good idea when he saw one.

0:22:000:22:02

The difference between invention and innovation is that you execute.

0:22:020:22:09

You take an, an idea and you turn it into reality.

0:22:090:22:12

You bring it into the marketplace. Steve connected the dots.

0:22:120:22:15

He saw a little bit of this, he saw a little bit of that,

0:22:150:22:18

and he said, "We need to do this.

0:22:180:22:20

"We need to take it from an expensive business experience

0:22:200:22:23

"to a personal low-cost experience and we'll build a company from it."

0:22:230:22:27

Along with making the Macintosh easy to use,

0:22:280:22:32

Jobs brought an aesthetic sensibility

0:22:320:22:34

to the computer's design.

0:22:340:22:36

A long-time follower of Zen meditation,

0:22:360:22:39

he believed in the beauty of simplicity.

0:22:390:22:41

When I went to his home for the first time,

0:22:410:22:44

I was struck because there was almost no furniture in the house.

0:22:440:22:48

Um...in his bedroom was a small bed,

0:22:480:22:52

a photograph of Einstein over his bed,

0:22:520:22:55

another photograph of Gandhi.

0:22:550:22:57

In the living room was a Tiffany lamp,

0:22:570:23:01

no place to sit. You know, we would just sit on the floor.

0:23:010:23:04

Steve just was not into possessions.

0:23:040:23:06

He was not into money, he was completely into

0:23:060:23:09

the things he believed in.

0:23:090:23:11

That integrity went through every aspect of his life.

0:23:130:23:17

His devotion to the products, to the work, to the ethic.

0:23:170:23:23

It permeated everything and this desire for aesthetic beauty

0:23:230:23:27

the importance of the things that you don't see,

0:23:270:23:31

what lies beneath the surface, and in that sense,

0:23:310:23:35

I think there's a kind of seamless philosophy

0:23:350:23:38

that binds everything together.

0:23:380:23:40

As the Macintosh neared completion,

0:23:430:23:46

the stakes were growing higher for Apple.

0:23:460:23:49

In autumn 1983, the company's share price tumbled,

0:23:490:23:52

wiping nearly half a billion dollars from its value.

0:23:520:23:56

A new home computer was on its way from IBM

0:23:560:23:59

and other versions of the PC were flooding the market.

0:23:590:24:03

Worse still, the man Apple had turned to to write extra software

0:24:030:24:07

for the Mac was about to steal a march on them.

0:24:070:24:10

Relations with the young Bill Gates were strained from the start.

0:24:100:24:16

Bill Gates would fly down from Seattle,

0:24:160:24:18

down to Cupertino to give updates on the project.

0:24:180:24:21

And, often times, Steve would just yell at Bill for two straight hours.

0:24:210:24:26

And then Bill would leave and get on a plane and fly back.

0:24:260:24:29

We tend to think of Bill Gates as a buttoned-up geek,

0:24:320:24:36

but in this instance, it was Jobs who showed he was far from laidback.

0:24:360:24:40

He thought Apple should keep complete control of its software and hardware,

0:24:400:24:45

Gates wanted to produce software for both Apple and the PC.

0:24:450:24:49

Tensions came to a head when they were both working on the Macintosh.

0:24:490:24:54

Jobs began to suspect Gates might be taking advantage

0:24:540:24:58

of his inside knowledge of Apple's work.

0:24:580:25:01

Steve Jobs was racing to ensure the Macintosh

0:25:010:25:04

was the first personal computer to have icons on the screen.

0:25:040:25:08

But just before it was due to be unveiled,

0:25:080:25:11

Microsoft suddenly announced Windows I for the PC,

0:25:110:25:15

which Apple feared would be similar.

0:25:150:25:18

Jobs couldn't contain his fury.

0:25:180:25:20

Steve was saying, "How can you do this to us?

0:25:200:25:22

"We trusted you, you betrayed us."

0:25:220:25:24

And I was impressed with Bill Gate's demeanour

0:25:240:25:29

because Steve Jobs yelling at you with his full force is kind of a...

0:25:290:25:33

a pretty frightening thing for most people!

0:25:330:25:35

But he was kind of cool and calm.

0:25:350:25:38

Just looked Steve back in the eye and said, "Well, Steve,

0:25:380:25:41

"you know, what you're saying is one way of looking at it,

0:25:410:25:44

"but I look at it a different way.

0:25:440:25:45

"It's more like you had a rich neighbour named Xerox

0:25:450:25:48

"and I broke into their house to steal the television set

0:25:480:25:51

"and found you had stolen it before I could."

0:25:510:25:55

Finally, after three years and millions of dollars,

0:25:570:26:01

the Macintosh computer was ready.

0:26:010:26:04

It was the distillation of Steve Jobs' vision

0:26:060:26:08

of what technology should be.

0:26:080:26:11

Easy to use, intimate,

0:26:110:26:13

intended to change the lives of ordinary people.

0:26:130:26:17

The future of Apple rested on this strikingly-designed beige box.

0:26:170:26:22

Computers before the Macintosh kept us at arms length.

0:26:220:26:26

The only way we can control them was through painstakingly moving

0:26:260:26:29

this crazy little cursor on the screen

0:26:290:26:31

and it looked like an alien device with these glowing green letters.

0:26:310:26:36

The Macintosh put it on human scale.

0:26:360:26:39

-COMPUTER:

-Hello, I am Macintosh.

0:26:390:26:42

For the first time it was actually, you know, intuitive.

0:26:420:26:46

If you were bright enough to walk around unaided,

0:26:460:26:49

you could just turn it on and use it.

0:26:490:26:52

The Macintosh would be a hit with graphic designers

0:26:520:26:54

and create the desktop publishing era.

0:26:540:26:57

Those of us who used Apples, who got up early

0:26:570:26:59

because we were excited about the fact

0:26:590:27:01

we were in a world full of glide and flow and smoothness and pleasure,

0:27:010:27:06

were told that we were pretentious, posing, bohemian arty types.

0:27:060:27:11

"It's all very well for you, but I've got to do officey things",

0:27:110:27:16

were missing the point.

0:27:160:27:19

But however good it was, the Mac cost 2,500,

0:27:190:27:24

over 1,000 more than an IBM PC.

0:27:240:27:28

Even so, Steve Jobs was in no doubt it would take the world by storm.

0:27:280:27:32

Like all great entrepreneurs, in Steve's mind,

0:27:320:27:36

"Why wouldn't everybody on the planet immediately buy a Mac"?

0:27:360:27:40

So he had huge expectations.

0:27:400:27:42

Expectations that were about to collide with the real world.

0:27:420:27:45

Then the sales numbers started coming in

0:27:450:27:48

and, at best, they were half of what we were expecting.

0:27:480:27:51

One of Steve's great strengths is his strong will

0:27:510:27:54

and imposing his own version of reality.

0:27:540:27:58

So in the face of depressing sales numbers he wasn't really fazed.

0:27:580:28:03

Apple's new Macintosh factory was running at 50% of capacity.

0:28:030:28:07

We did lose money and that was a huge crisis for everybody.

0:28:070:28:11

Of course, that engendered a panic at Apple.

0:28:110:28:15

You know, "What was the problem? How can we fix it?"

0:28:150:28:18

And there, there was disagreement between different people.

0:28:180:28:22

The most serious disagreement was between Steve Jobs

0:28:240:28:28

and the man he had made Chief Executive, John Sculley.

0:28:280:28:31

Steve has a tendency to be binary about people

0:28:310:28:34

You know, sort of, he flipped on John Sculley.

0:28:340:28:37

The two men were battling over the future of Apple.

0:28:370:28:41

I was focused on the cash-flow of the Apple II.

0:28:440:28:46

We had to have that coming in.

0:28:460:28:48

Steve wanted to drop the price of the Macintosh,

0:28:480:28:51

and put more marketing against the Macintosh.

0:28:510:28:54

I felt we couldn't afford that.

0:28:540:28:56

30-year-old Jobs had picked a fight with a formidable foe.

0:28:560:28:59

Sculley came from PepsiCo, a very political organisation,

0:28:590:29:02

and he was a skilful infighter

0:29:020:29:05

who knew how to play the games, and Steve didn't.

0:29:050:29:09

I said, "Steve, I'm going to the board of directors."

0:29:120:29:14

He didn't think I'd do that, but I did,

0:29:140:29:16

and the board said, "We agree with John.

0:29:160:29:20

"We don't agree with you, Steve."

0:29:200:29:21

They asked Steve to step down from heading the Macintosh division.

0:29:210:29:25

Jobs had been forced out of the company he had created.

0:29:270:29:30

It was a humiliating taste of failure.

0:29:300:29:33

I got a phone call, late at night and it was Steve.

0:29:350:29:38

He sounded really despondent and very, very sad.

0:29:380:29:42

And I knew he was all alone at his great big unfurnished mansion

0:29:420:29:46

up in Woodside.

0:29:460:29:47

I got in my car, drove up there, and it was totally dark

0:29:470:29:51

and rather creepy, and I found the house

0:29:510:29:53

and went in and climbed up stairs by myself and found him

0:29:530:29:58

in his bedroom just laying down and he was very, very sad.

0:29:580:30:03

And I just stayed there, as a friend.

0:30:030:30:06

11 years later, Jobs was still bitter.

0:30:060:30:10

What can I say? I hired the wrong guy.

0:30:100:30:12

-That was Sculley?

-Yeah,

0:30:120:30:15

and, er, he destroyed everything I'd spent ten years working for.

0:30:150:30:20

Erm, starting with me, but that wasn't the saddest part.

0:30:220:30:26

I'd have gladly left Apple if Apple had turned out like I wanted it to.

0:30:260:30:31

Sacking Jobs seemed natural to the man schooled in selling sugar water.

0:30:310:30:37

In hindsight, that was a terrible decision. I was part of it.

0:30:370:30:41

Coming from my vantage point, out of corporate America,

0:30:410:30:46

people were asked to step down all the time when there were disagreements

0:30:460:30:50

so I didn't appreciate what it meant to be a founder of a business,

0:30:500:30:55

the visionary of the business.

0:30:550:30:57

I was focused on how do we sell Apple computers,

0:30:570:30:59

he was focused on how do we change the world?

0:30:590:31:02

Jobs severed all ties with Apple, except one.

0:31:040:31:07

He kept a single share in the company he had founded,

0:31:070:31:10

selling off the rest for more than 100 million.

0:31:100:31:14

He hated the company. He couldn't see that it would succeed without him.

0:31:160:31:20

He didn't want it to succeed without him.

0:31:200:31:24

Over the next 11 years, Jobs didn't relent.

0:31:240:31:27

Once again centre stage, he set up a new company called Next, building high spec computers.

0:31:270:31:34

With cases made of magnesium and a price to match, they didn't sell well.

0:31:340:31:38

Though one important computer scientist was impressed.

0:31:380:31:41

Steve Jobs had arranged that,

0:31:410:31:43

whenever you get a Next machine,

0:31:430:31:45

there would be a message from him.

0:31:450:31:46

One of the things I remember he said was that it's not just about personal computing, which was the rage,

0:31:460:31:52

he said this should be about interpersonal computing.

0:31:520:31:57

And I thought, yeah, that's... Yeah, he's got it.

0:31:570:32:00

Jobs recognised technology was on the cusp of allowing us to communicate through computers.

0:32:010:32:06

And, in fact, the Next's powerful operating system

0:32:060:32:11

helped Sir Tim Berners-Lee connect computer users together.

0:32:110:32:15

I developed the World Wide Web on this Next machine in a couple of months,

0:32:150:32:20

whereas on another machine it would've taken me a lot longer.

0:32:200:32:23

YOU ARE A TOY!

0:32:230:32:26

As well as high-tech,

0:32:260:32:28

Jobs invested in a struggling computer animation company.

0:32:280:32:32

He ploughed 50 million into Pixar, keeping it afloat

0:32:320:32:36

until it created the first computer-animated feature film.

0:32:360:32:40

Toy Story was a blockbuster,

0:32:400:32:43

and taking Pixar public made Steve Jobs super rich.

0:32:430:32:46

He did stay in there and made the company successful,

0:32:460:32:50

and we made him a billionaire in return.

0:32:500:32:52

Seems like a pretty good deal.

0:32:520:32:54

Now the hippy computer mogul had become a Hollywood player.

0:32:540:32:59

Jobs had the world, but he didn't have Apple.

0:32:590:33:02

They say that there are no second acts in American life,

0:33:020:33:06

but there clearly are.

0:33:060:33:08

One of the astonishing things about the Apple phenomenon

0:33:080:33:11

is it goes in two halves.

0:33:110:33:13

In the 11 years since Jobs left Apple,

0:33:150:33:18

the computer market had changed radically.

0:33:180:33:20

Now Microsoft was the dominant force in computing.

0:33:200:33:24

Its operating systems powered nearly 90% of personal computers in America.

0:33:240:33:30

Apple had tried to compete

0:33:300:33:32

by allowing other manufacturers to make and sell copies of its machines and software,

0:33:320:33:37

but it wasn't working.

0:33:370:33:39

The company had lost its lead in the computer market,

0:33:400:33:43

customers were leaving in droves, the company had no future, no roadmap.

0:33:430:33:48

The company was in serious trouble.

0:33:480:33:53

I, and other Apple users, were being told with malicious grins

0:33:530:33:57

from our Windows-using friends that if we wanted to keep our machines

0:33:570:34:01

we'd have to go to hobbyist shops because there would be no Apple computer.

0:34:010:34:04

At Next, Jobs had focused on developing its powerful operating system.

0:34:060:34:11

Apple needed just such a system.

0:34:110:34:14

Apple was in technical trouble.

0:34:160:34:18

Next was absolutely in financial trouble, and the two came together.

0:34:180:34:22

Apple bought Next for 400 million.

0:34:240:34:28

It got the new operating system it needed, and Steve Jobs.

0:34:280:34:33

Steve was truly excited to be linked up with Apple again.

0:34:330:34:37

It was the company he founded, the company he was kicked out of.

0:34:370:34:40

It's the company that had lost its way, it was starting to fail,

0:34:420:34:46

so he had this opportunity to go back and start fixing Apple at large.

0:34:460:34:51

A few days later, Apple revealed just how much trouble it was really in.

0:34:510:34:57

They announced that they were going to lose something like 1 billion,

0:34:570:35:01

and back then 1 billion was a lot of money.

0:35:010:35:05

I said, "Steve, what did we just get ourselves into?"

0:35:050:35:09

And he was wondering himself! Because this was a big surprise to us.

0:35:090:35:14

To bring Apple back from the brink,

0:35:140:35:16

Jobs had a conventional business challenge.

0:35:160:35:18

He had to stop the company haemorrhaging money,

0:35:180:35:21

but he also had to do more.

0:35:210:35:23

He had to help the company rediscover itself,

0:35:230:35:26

and for that he thought he needed to take it back to the future,

0:35:260:35:30

to the values that had built it up in the first place.

0:35:300:35:33

He decided to put all of Apple's products and people under review.

0:35:350:35:39

He was demanding, erm, he would not hesitate to call someone at two o'clock in the morning

0:35:390:35:46

if he had an idea that he wanted to be pursued.

0:35:460:35:49

He had no time for people that he did not respect.

0:35:490:35:52

It got so bad that people were afraid to get into the elevator with Steve.

0:35:520:35:56

He was on the fourth floor of the first building

0:35:560:35:58

when you first come in, and it's been rumoured that he's fired people

0:35:580:36:02

in that 25-second elevator ride as he walked out of the elevator.

0:36:020:36:06

It wasn't just people who were axed.

0:36:060:36:10

Jobs ended the licensing of Apple's technology to other companies,

0:36:100:36:14

and he killed off most of Apple's product lines,

0:36:140:36:17

including a clunky handheld device, the Newton.

0:36:170:36:20

He taught the company what he learned

0:36:240:36:27

when he was at Next and Pixar,

0:36:270:36:29

which was focus matters.

0:36:290:36:32

Watching expenses matters.

0:36:320:36:35

We'll do more if we do less.

0:36:350:36:38

Here's to the crazy ones.

0:36:390:36:43

The misfits, the rebels.

0:36:430:36:45

The troublemakers.

0:36:450:36:47

Always the marketing man, now Jobs started to talk Apple up

0:36:470:36:51

with a TV advert called Think Different.

0:36:510:36:53

This emotional recasting of Apple's rebel roots was about more than just the brand.

0:36:540:37:00

The real reason Think Different was created was for the employees.

0:37:000:37:04

It really meant a wake-up, a call to action,

0:37:040:37:08

a call to arms for the employees to say, "Wait a minute,

0:37:080:37:11

"we still have something great to do for the world."

0:37:110:37:13

Because the people who are crazy enough to think they can change the world...

0:37:130:37:19

..are the ones who do.

0:37:190:37:21

After renewing Apple's sense of its own identity,

0:37:260:37:29

Jobs needed a product that could bring about the company's financial revival.

0:37:290:37:34

He had a new vision of what computers could be,

0:37:340:37:37

and it centred on an unknown Apple employee, British designer Jonathan Ive,

0:37:370:37:43

who'd been working on an unusual prototype for a new computer.

0:37:430:37:47

He went into Steve's office, and he came out ten minutes later,

0:37:470:37:50

and sort of leant against the wall, not quite believing what he'd heard,

0:37:500:37:54

which was, "We're going to stop everything at Apple and we're going to make this prototype of yours."

0:37:540:37:59

Johnny said, "You do know that the prototype is transparent and that's how I want it to be?"

0:37:590:38:04

Steve said, "Sure."

0:38:040:38:05

This...is iMac.

0:38:080:38:12

APPLAUSE

0:38:120:38:13

The whole thing is translucent, you can see into it. It's so cool.

0:38:160:38:20

Jobs and Ive had put the design of the computer centre stage.

0:38:210:38:26

It created quite a stir.

0:38:270:38:30

It looks like it's from another planet, and a good planet!

0:38:300:38:34

AUDIENCE LAUGHTER

0:38:340:38:35

A planet with better designers.

0:38:350:38:38

Behold this extraordinary transparent object.

0:38:390:38:42

It was friendly!

0:38:420:38:43

It's a silly thing to say! It looked like a nice thing to own.

0:38:430:38:47

The back of this thing looks better than the front of the other guy's by the way!

0:38:470:38:52

This was a desktop computer

0:38:520:38:54

but conceived as a thing of pleasure, ironic fascination.

0:38:540:38:58

It meant that, you know, a computer wasn't just a dreary piece of office equipment.

0:38:580:39:02

They look so good, you kind of want to lick 'em.

0:39:020:39:04

The iMac fused striking design with the ability to connect to the internet easily.

0:39:040:39:10

Steve was super-proud of the design

0:39:100:39:12

and also the idea that he called it the iMac and the "i" for internet.

0:39:120:39:16

The "i" was a stroke of deft branding,

0:39:160:39:19

transforming the new impersonal internet into something more intimate.

0:39:190:39:25

The iMac was a huge success and propelled Apple back into profit.

0:39:250:39:29

In four and a half months, iMac has become the number one selling computer in America.

0:39:290:39:34

The iMac was no better a product than the computer it replaced

0:39:340:39:38

but it was packaged and marketed in a way that became classic Steve Jobs.

0:39:380:39:42

It was the sort of packaging that attracted people

0:39:420:39:46

who'd previously had no interest in computers.

0:39:460:39:49

A third of sales were to those who'd never bought one before.

0:39:490:39:52

Who'd have thought you could have an emotional bond with your computer?

0:39:520:39:57

Apple wanted to change people's relationship with computers.

0:39:570:40:02

Steve wanted it to be fashionable but it was Jonathan who was saying,

0:40:020:40:05

"We have to make this something that people will love."

0:40:050:40:09

The word "love" started becoming part of Apple's motif.

0:40:090:40:13

And now there was a new partnership at the heart of Apple.

0:40:130:40:18

Jonathan Ive and Jobs had a very, very, very special relationship

0:40:180:40:22

and it was united by this almost Zen-like meditative intensity, which they both have.

0:40:220:40:27

Ive's approach to design would be the new foundation on which Apple's future would be built.

0:40:300:40:36

You've got this incredibly powerful, this potent technology and people,

0:40:360:40:40

and I think design makes a very sort of important, erm...

0:40:400:40:43

..I think, contribution to the nature of that connection.

0:40:430:40:47

I think we're trying to create products that make sense,

0:40:470:40:51

and that people really develop some sort of affinity with.

0:40:510:40:56

They are products that become personal.

0:40:560:40:58

There is a poetic dimension to some technological artefacts

0:40:580:41:03

because they have been crafted into it, and that is not accidental.

0:41:030:41:08

It's absolutely part of a mission, a focus, and part of the functionality.

0:41:080:41:13

And over the years, Apple has generally positioned its products

0:41:130:41:17

as expensive, but oh-so-elegantly designed.

0:41:170:41:21

There are people who say, when you compare the Apple product with the functional equivalent...

0:41:210:41:25

..You see that it's more style over substance.

0:41:250:41:29

No, no, no! Evan, you couldn't be more wrong.

0:41:290:41:33

I wouldn't wish to be rude to you

0:41:330:41:34

but it's astonishing to think that, in the 21st-century,

0:41:340:41:38

people still think there's a distinction between style and substance,

0:41:380:41:42

that the two are not the same.

0:41:420:41:45

The better it looks, the more you want to use it, the more function you get out of it anyway!

0:41:450:41:51

Around the turn-of-the-century, technology was changing rapidly.

0:41:520:41:56

Consumers were rushing to buy new digital devices like cameras and music players,

0:41:560:42:01

and Jobs saw how Apple could weave itself deeper into people's lives,

0:42:010:42:06

IF it could exploit the trend.

0:42:060:42:08

We are living in a new digital lifestyle with an explosion of digital devices,

0:42:090:42:15

and we believe that the Mac can become the digital hub of our new emerging digital lifestyle.

0:42:150:42:22

We think this is going to be huge.

0:42:240:42:26

Jobs' insight was the beginning of Apple as we know it today.

0:42:270:42:31

Computers were becoming powerful enough to store and play video, music and other media.

0:42:310:42:38

Apple began working secretly on a digital device of its own.

0:42:380:42:42

It would revolutionise the company and our increasingly digital world.

0:42:420:42:47

The iPod came about because somewhat of a convergence of technologies.

0:42:470:42:52

We learned that we could marry a really small hard drive -

0:42:520:42:56

small in size, large in capacity - with some small electronics

0:42:560:43:01

and build a really good music player.

0:43:010:43:04

Just as with the mouse in the 1980s, Jobs and Apple did not invent the MP3 player,

0:43:050:43:11

but they did redefine it for consumers.

0:43:110:43:15

The iPod could hold 1,000 songs,

0:43:150:43:19

but its real innovation lay in Jonathan Ive's design.

0:43:190:43:24

There were lots of MP3 players around before the iPod

0:43:240:43:27

but they all looked as ugly as car batteries and it was only Apple

0:43:270:43:31

who had the sense to make the iPod into a gorgeous, gorgeous thing.

0:43:310:43:35

The colour of the first iPod was no accident.

0:43:350:43:39

Choosing white for the iPod wasn't just a Johnny decision, it was a Johnny and Steve decision.

0:43:390:43:43

They really looked into the idea of the colour white.

0:43:430:43:48

It was something, which carried on a certain spirit and purity.

0:43:480:43:53

They went to many, many iterations of white and had to look at special materials, special polymers,

0:43:540:44:00

to produce and convey and maintain the certain whiteness of the iPod.

0:44:000:44:06

Carefully chosen colours, white or otherwise,

0:44:060:44:09

had a distinctive presence in the advertising.

0:44:090:44:13

And with this product, unlike some in the past,

0:44:130:44:15

Apple was not going to overestimate demand.

0:44:150:44:19

-Indeed, quite the reverse.

-When we were planning the launch of the iPod across Europe,

0:44:190:44:23

an important thing we had to manage with the iPod

0:44:230:44:26

was to make sure we kind of undersupplied the demand

0:44:260:44:30

so that we'd only roll it out

0:44:300:44:32

almost in response to cities crying out for those iPods to be available

0:44:320:44:36

and that's how we kept that kind of cachet for the iPod in its early years.

0:44:360:44:40

And we'd use extensive data research to understand

0:44:400:44:44

what the kind of relative strength of doing that in Rome versus Madrid would be.

0:44:440:44:49

Unlike most other MP3 players, which worked with either Macs or PCs,

0:44:490:44:54

the iPod needed Apple software running on an Apple computer.

0:44:540:44:58

For Steve Jobs, this closed system seemed to be a virtuous circle.

0:44:580:45:03

When they sell iPods at the beginning,

0:45:030:45:05

it locks you into the system,

0:45:050:45:07

and iPods have an immediate impact

0:45:070:45:11

on Apple Mac sales within the profitability of the corporation as a whole.

0:45:110:45:15

Ultimately, Jobs realised that Apple could make even more money by creating an iPod for Windows.

0:45:150:45:22

Steve knew that, for him to take Apple to another place,

0:45:220:45:27

he had to break out of the Mac ghetto,

0:45:270:45:30

which is his gated community of loyal fans who love the product.

0:45:300:45:35

Music became his way of reaching that larger audience.

0:45:350:45:39

-..is the new iPod.

-Apple was on a roll.

0:45:390:45:44

The iPod quickly became the number one digital music player in America and beyond.

0:45:440:45:50

You suddenly saw them everywhere,

0:45:500:45:53

and its success set the company on a new course.

0:45:530:45:57

There was no vision of there's going to be an iPod, then an iPhone, then an iPad.

0:45:570:46:02

However, there was a vision that we're going to be more consumer,

0:46:020:46:07

more of a consumer electronics company.

0:46:070:46:09

This is our store, and the store is divided into four parts.

0:46:140:46:19

The first quarter of the store has our home section...

0:46:190:46:24

Apple was on its way to becoming a global phenomenon.

0:46:240:46:27

Wanting to build a consumer electronics company,

0:46:270:46:30

the next step was to go into consumer electronics stores, Apple style,

0:46:300:46:35

with shops designed to match the products in them.

0:46:350:46:38

What's interesting about Apple's move into retail

0:46:400:46:45

is it wasn't so much Apple opening up a shop,

0:46:450:46:47

but rather Apple opening up its experience

0:46:470:46:49

and allowing people to buy Apple products in the kind of style,

0:46:490:46:54

in the kind of environment, that actually really suited that brand.

0:46:540:46:58

Every facet of the way the stores look was influenced by Steve Jobs.

0:46:580:47:03

He even held the American patent for the design of the glass stairs.

0:47:030:47:07

The fact that Steve Jobs was a sort of hippy control freak was an extraordinary collision,

0:47:080:47:14

but it's worked absolutely brilliantly for Apple,

0:47:140:47:18

which is you've got this impression of hippy chic and relaxed and everything else,

0:47:180:47:23

whereas actually this organisation is one of the most controlled organisations in the world.

0:47:230:47:28

Apple boasts some of the world's most profitable retail space,

0:47:280:47:33

but the shops are about far more than selling products.

0:47:330:47:36

An Apple Store is a temple to a belief system.

0:47:360:47:40

They conform to the structure of a religion.

0:47:400:47:43

They have the objects of veneration, the phone, the tablet,

0:47:430:47:47

they have a powerful priesthood.

0:47:470:47:50

They have a congregation of people who belong and who believe in Apple,

0:47:500:47:53

but ultimately they have the Messiah, the religious leader, the late Steve Jobs.

0:47:530:47:59

Apple's ethos, defined by that Think Different slogan,

0:48:000:48:05

turned out to be a remarkably valuable business philosophy.

0:48:050:48:08

It had helped the company reinvent computing and retailing,

0:48:080:48:12

and next it would take Apple to yet another revolutionary endeavour.

0:48:120:48:17

Steve Jobs was one of those people who recognised that, in the digital age, content would be key.

0:48:170:48:23

The iPod was designed to be a way to synchronise your music

0:48:240:48:27

from your computer to get it into your pocket.

0:48:270:48:30

It was after the success of the iPod that Apple said there's a market for us to sell music,

0:48:300:48:36

but that was not the original plan.

0:48:360:48:39

While Jobs needed music for the iPod,

0:48:390:48:43

the music industry had a problem of its own.

0:48:430:48:45

The rise of file-sharing websites like Napster was threatening the way the industry made money.

0:48:450:48:51

So you went from a world in which you had to go buy stuff in a store

0:48:510:48:56

to a world in which you had this cloud of music

0:48:560:48:59

that was, in effect, an unlimited source of free music,

0:48:590:49:04

which was a very threatening idea to the music industry.

0:49:040:49:08

Faced with this crisis, the record industry had tried to close Napster down

0:49:080:49:13

and sue people who downloaded music for free.

0:49:130:49:16

They were alarmed by Apple's iPod.

0:49:160:49:18

The record labels were very unhappy with that and felt that,

0:49:200:49:24

only because Napster was hard to use, could the music survive,

0:49:240:49:28

and here was Apple coming out with a digital music product

0:49:280:49:31

that was easy to use and was going to make it much more popular.

0:49:310:49:35

Even so, some in the music industry thought Apple might be able to help.

0:49:350:49:39

In 2002, a delegation of music executives travelled to Apple's headquarters

0:49:400:49:45

to present a vision for how they might collaborate.

0:49:450:49:48

Steve Jobs did not exactly warm to their ideas.

0:49:480:49:52

He listens, but he isn't listening patiently.

0:49:520:49:55

At one point he waves his arms and says, "Stop, stop, that's not why I'm here.

0:49:550:50:01

"I didn't come here to listen to you.

0:50:010:50:04

"I have my own views on what we need to do.

0:50:040:50:08

"You guys in the music business have had your heads up your asses all these years!"

0:50:080:50:12

Which made everybody on my side of the table mute, silent.

0:50:120:50:19

And I said, "Steve, that's exactly why we're here. We need your help."

0:50:190:50:24

Other technology companies had tried and failed to persuade the major labels

0:50:240:50:29

to license their music online, but Jobs was different.

0:50:290:50:34

Jobs was the biggest share owner in Disney.

0:50:340:50:36

Because he was in such a strong position as a Hollywood player

0:50:360:50:39

that he was able to bang the heads together of the music companies and say this is how it's going to be.

0:50:390:50:45

To Jobs, it was obvious the record labels didn't understand the new internet-savvy consumers.

0:50:450:50:51

He insisted the way to beat file-sharing was not to punish people for doing it

0:50:510:50:56

but to offer a more convenient reasonably-priced alternative.

0:50:560:51:01

In less than a year, every major label had signed up to the Apple iTunes store.

0:51:010:51:08

He just got the deal done and that was an incredible achievement.

0:51:080:51:12

That in pure business terms is deal-making,

0:51:120:51:14

which is a recognisable feature of your great tycoon.

0:51:140:51:18

In its first week, the iTunes store sold more than 1 million tracks.

0:51:180:51:23

It was so successful by the end of the first year,

0:51:230:51:26

the leverage had shifted from the owner of the content to Apple.

0:51:260:51:32

Some artists believe Apple now wields too much power through iTunes,

0:51:320:51:37

putting profits before musicians.

0:51:370:51:39

..whose works it bleeds like a digital vampire for its enormous commission,

0:51:390:51:44

that it decides, you know, we'll take 30%.

0:51:440:51:49

It's a bit of a pity that everyone's online these days.

0:51:490:51:51

But you can't blame them. It's just the modern world, innit?

0:51:510:51:55

But what a business it is.

0:51:550:51:56

IPods give Apple power over the music industry through the connection to iTunes,

0:51:560:52:01

and, in turn, the appeal of iTunes boosts sales of iPods.

0:52:010:52:05

If I can fulfil all your needs, then I'll get all your money,

0:52:050:52:09

and that's Steve's approach.

0:52:090:52:12

He wanted to give people the devices they would use to consume video and audio,

0:52:120:52:19

then he wanted to give them video and audio to consume.

0:52:190:52:22

He's created the future of entertainment.

0:52:220:52:26

Jobs was usually very guarded about his private life,

0:52:280:52:31

but in 2005 he chose a very public stage, a speech to graduating students,

0:52:310:52:36

to reveal he had been battling serious illness.

0:52:360:52:40

About a year ago, I was diagnosed with cancer.

0:52:400:52:45

I had a scan at 7.30 in the morning

0:52:450:52:47

and it clearly showed a tumour on my pancreas.

0:52:470:52:49

My doctor advised me to go home and get my affairs in order,

0:52:490:52:54

which is doctor's code for "prepare to die".

0:52:540:52:58

It turned out to be a very rare form of pancreatic cancer that is curable with surgery.

0:52:580:53:03

I had the surgery and thankfully I'm fine now.

0:53:030:53:08

In reality, Jobs would continue his struggle with cancer for the next six years.

0:53:080:53:12

His diagnosis had a profound impact.

0:53:120:53:17

Death is very likely the single best invention of life.

0:53:170:53:21

It's life's change agent, it clears out the old to make way for the new.

0:53:210:53:25

Your time is limited so don't waste it living someone else's life.

0:53:250:53:30

It's a philosophy that Jobs himself followed.

0:53:300:53:34

It's really amazing in hindsight what he accomplished while he was sick.

0:53:340:53:40

Not only was he fighting this debilitating disease,

0:53:400:53:44

he was leading a huge corporation doing earth-shaking work

0:53:440:53:48

that affects hundreds of millions of people.

0:53:480:53:52

Steve Jobs' next major project would bring together everything he stood for,

0:53:520:53:57

a bold raid into a market into which the company had never been a player.

0:53:570:54:01

IPod. A phone.

0:54:030:54:06

CHEERING AND APPLAUSE

0:54:060:54:07

Are you getting it?

0:54:070:54:10

It would revolutionise the way a long-established industry worked, and make Apple billions.

0:54:100:54:15

And we're calling it... iPhone.

0:54:160:54:20

He said, "I think that we'll succeed in this marketplace

0:54:210:54:27

"because we're a software company,

0:54:270:54:29

"and everyone we're going to compete with are hardware companies."

0:54:290:54:33

I didn't realise at the time just how profound that was.

0:54:330:54:37

Apple's iPhone became the fastest selling handset on the market.

0:54:400:54:44

People weren't buying them just to make phone calls.

0:54:450:54:48

Steve, I love you!

0:54:480:54:51

What made the iPhone different was apps.

0:54:510:54:54

The iPhone was the gateway to a world of downloadable software

0:54:550:54:59

for anything from shopping to finding love, or lust, nearby.

0:54:590:55:04

He came into the marketplace and absolutely demonstrated to people

0:55:050:55:10

how you could package up bits of the internet and present it to people

0:55:100:55:14

in a way that was really simple and fast and digestible in the form of apps.

0:55:140:55:20

With apps, Apple had worked out how to open up its closed system

0:55:210:55:26

just enough to keep earning money from its latest iPods, iPhones and iPads,

0:55:260:55:30

even after you've bought them. The money keeps rolling in.

0:55:300:55:36

For the first time ever,

0:55:380:55:39

Apple briefly topped Exxon Mobil as the world's most valuable company.

0:55:390:55:44

All the more amazing as android phones and Dell and HP computers outsell Apple.

0:55:440:55:49

Oddly enough, the market share of Apple is very low.

0:55:490:55:52

It's incredibly low in computers but they make enormous profit out of it.

0:55:520:55:56

It's actually low in smartphones. It's not the leader in the world

0:55:560:56:00

by any means, yet the money they make make them the largest company on Earth.

0:56:000:56:04

Apple is much stronger than its competition,

0:56:040:56:08

and so they need to make sure they don't get complacent

0:56:080:56:14

because the way they'll lose some day is when someone quietly comes up behind them

0:56:140:56:20

and does something that is now better.

0:56:200:56:24

Over the course of more than three decades,

0:56:240:56:26

some might argue that Apple has travelled far from its origins,

0:56:260:56:31

as a bunch of Californians railing against IBM to become, itself, an all-powerful Big Brother.

0:56:310:56:37

But it is a more complicated and interesting story.

0:56:370:56:40

If Steve Jobs had just been a rebel, he wouldn't have got far,

0:56:400:56:44

but it's because he always had that inner-hippy

0:56:440:56:47

that Apple became so much more than just another computer company.

0:56:470:56:52

There was one aspect of Steve Jobs' battle with cancer he hadn't revealed.

0:56:520:56:57

He'd delayed having surgery for nine months after he was diagnosed.

0:56:570:57:01

Instead he'd tried alternative remedies

0:57:010:57:04

and a strict vegan diet, against the advice of those closest to him.

0:57:040:57:09

And the cancer had spread.

0:57:090:57:11

He was the kind of person that could convince himself of things

0:57:110:57:15

that weren't necessarily true, and that always worked with him for designing products,

0:57:150:57:20

where he could go to people and ask them to do something that they thought was impossible.

0:57:200:57:24

And I think he truly thought that,

0:57:240:57:28

through some unconventional means, he could cure himself.

0:57:280:57:33

A Californian suburb.

0:57:350:57:38

This was Steve Jobs' house after his death at the age of 56.

0:57:380:57:42

Home to no ordinary CEO, billionaire or hippie.

0:57:440:57:48

# Buckets or rain, buckets of tears

0:57:490:57:52

# Got all them buckets coming out of my ears

0:57:520:57:55

# Buckets of moonbeams in my hand... #

0:57:550:57:59

He wasn't an inventor, he wasn't a code writer,

0:57:590:58:01

he wasn't a designer, he wasn't a businessman really.

0:58:010:58:05

I mean the word people use is visionary.

0:58:050:58:08

If you break it down in the sense of he saw things,

0:58:080:58:11

in that sense he was a visionary. He just saw things.

0:58:110:58:14

As near as I can tell, Steve Jobs never left his counter-cultural frame of reference,

0:58:150:58:21

and so his way of staying forever young was to stay forever hippy.

0:58:210:58:25

Stay hungry, stay foolish. Thank you all very much.

0:58:250:58:30

APPLAUSE

0:58:300:58:32

Subtitles by Red Bee Media Ltd

0:58:320:58:34

E-mail [email protected]

0:58:340:58:35

Download Subtitles

SRT

ASS