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The Genesis of Apple
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“He was the only person I
met who knew more about
electronics than me.”
Steve Jobs, explaining his initial
fascination with Wozniak
“Steve didn’t know very much
about electronics.”
Steve Wozniak
HP was started by William Hewlett
and David Packard in a garage at
367 Addison Avenue in Palo Alto (now
California historical landmark #976),
not far from Steve Jobs’ boyhood
home in Los Altos.
1
Courtesy of Steve Wozniak
Courtesy of Esquire © Hearst Communications, Inc.
The Genesis of Apple
Steve Jobs (left) examines a “blue box” that Steve Wozniak (right) designed after
reading about such devices in an issue of Esquire magazine.
Who could have foreseen that
these two would go from making
pontifical prank calls to actually
meeting world leaders? But that’s
exactly what happened. In February
1985, Wozniak and Jobs received
the National Technology Medal from
President Ronald Reagan at the White
House. On May 19, 1993, Wozniak
presented a PowerBook to Poland’s
president, Lech Walesa, the former
leader of the Solidarity movement.
During the Clinton administration,
Jobs slept in the White House’s Lincoln
Bedroom after making a $100,000
donation to the Democratic National
Committee.
Atari is equivalent to the chess term
check in the ancient Japanese game
of Go.
2
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Courtesy of Steve Wozniak
Woz’s Wanderings
Steve Wozniak, shown here with a framed
Apple I, was free to follow his muse at
Apple, but it was hard for him to stay
focused with all the non-engineering
demands upon his time.
27
Courtesy of Raytheon Aircraft Company
Woz’s Wanderings
In early 1981, Wozniak was almost killed
while at the controls of his Beechcraft
Bonanza, like the one shown here.
“I feel shitty.”
Steve Wozniak, on his condition
after crashing his plane
28
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>ÀŽÊˆ˜Ê>v>ÞiÌÌi]Ê
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The Apple III Fiasco
The Apple III Fiasco
vÌiÀÊÌܜÊÞi>ÀÃʜvÊ`iÛiœ«“i˜Ì]Ê̅iÊ««iÊÊÜ>ÃÊ>˜˜œÕ˜Vi`ʜ˜Ê>ÞÊ£™]Ê
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>ˆvœÀ˜ˆ>°Ê 7ˆÌ…Ê ««i½ÃÊ ÌÞ«ˆV>Ê y>ˆÀÊ vœÀÊ Ã«iVÌ>Vi]Ê Ì…iÊ Vœ“«>˜ÞÊ Ài˜Ìi`Ê
ˆÃ˜iޏ>˜`Ê vœÀÊ wÛiÊ …œÕÀÃÊ Ì…iÊ vœœÜˆ˜}Ê ˜ˆ}…ÌÊ >ÌÊ >Ê VœÃÌÊ œvÊ f{Ó]äääÊ >˜`Ê
ÌÀ>˜Ã«œÀÌi`Ê>˜ÊiÃ̈“>Ìi`ÊÇ]äääÊ Ê>ÌÌi˜`iiÃÊ̜Ê̅iÊÈÌiʈ˜ÊÀˆÌˆÃ…Ê`œÕLi‡
`iVŽiÀÊLÕÃið
««iÊ Ü>ÃÊ «ÀœÕ`Ê œvÊ Ì…iÊ
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“>˜ÞÊ wÀÃÌÃÊ vœÀÊ Ì…iÊ Vœ“«>˜Þ°Ê
œÀi“œÃÌ]ʈÌÊÜ>ÃÊ̅iÊVœ“«>˜Þ½ÃÊ
vˆÀÃÌÊ >ÌÌi“«ÌÊ >ÌÊ LՈ`ˆ˜}Ê >Ê
«œÜiÀvÕÊ LÕȘiÃÃÊ Vœ“«ÕÌiÀ°Ê
ÌÊ Ü>ÃÊ >ÃœÊ ̅iÊ Vœ“«>˜Þ½ÃÊ wÀÃÌÊ
“>œÀÊ`i«>ÀÌÕÀiÊvÀœ“Ê̅iÊÌÀˆi`‡
>˜`‡ÌÀÕiÊ««iÊÊ>ÀV…ˆÌiVÌÕÀi°ÊÌÊ
ܜՏ`Ê«ÀœÛiÊ̅iÊVœ“«>˜Þ½ÃÊwÀÃÌÊ
Lœ˜>Êw`iÊv>ˆÕÀi°Ê1˜vœÀÌ՘>ÌiÞ]Ê
ˆ˜ÃÌi>`Ê œvÊ i>À˜ˆ˜}Ê vÀœ“Ê ̅iÊ
iÝ«iÀˆi˜Vi]Ê ««iÊ Ài«i>Ìi`Ê
“>˜ÞʜvÊ̅iÊÃ>“iʓˆÃÌ>ŽiÃÊ܈̅Ê
̅iʈÃ>Ê>˜`Ê̅iÊ>V°
The Apple III (shown here with an optional
/…iÊ««iÊÊÜ>ÃÊ܏`ʈ˜Ê
5MB ProFile hard drive and monochrome
ÌÜœÊ `ˆvviÀi˜ÌÊ Vœ˜vˆ}ÕÀ>̈œ˜ÃÊ
monitor) was the firm’s first failure.
À>˜}ˆ˜}Ê ˆ˜Ê «ÀˆViÊ vÀœ“Ê f{]Î{äÊ
̜ÊfÇ]nää°ÊÌÊ̅iʅi>ÀÌʜvÊi>V…Ê
Ü>ÃÊ>Ê-ޘiÀÌiŽÊn‡LˆÌÊÈxäÓʓˆVÀœ«ÀœViÃÜÀÊÀ՘˜ˆ˜}Ê>ÌÊÓâÊ­Ì܈ViÊ̅iÊ
ëii`ʜvÊ̅iÊ««iÊ®]Ê>ʓ>݈“Õ“ÊœvÊ£ÓnʜvÊÀ>˜`œ“Ê>VViÃÃʓi“œÀÞÊ
­,®]Ê>ÊLՈÌ‡ˆ˜ÊŽiÞLœ>À`Ê܈̅ʘՓiÀˆVʎiÞ«>`]Ê>˜`ʜ˜iʈ˜ÌiÀ˜>Ê£{Î]Ê
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«œÀÌÃʜ˜Ê̅iÊL>VŽ°
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̅iÊëiVˆwV>̈œ˜ÃÊÜiÀiʵՈÌiʈ“«ÀiÃÈÛi]ÊLÕÌʈ“«i“i˜Ìˆ˜}Ê̅i“Ê«ÀœÛi`Ê>Ê
ՓLˆ˜}ÊiÝ«iÀˆi˜ViÊvœÀÊ««i°
««iʜÀˆ}ˆ˜>ÞÊ«Àœ“ˆÃi`Ê̜Êň«Ê̅iÊ««iÊʈ˜ÊՏÞ]ÊLÕÌÊ«Àœ`ÕV̈œ˜Ê
«ÀœLi“ÃÊ«>}Õi`Ê̅iÊ«Àœ`ÕVÌÊ̅ÀœÕ}…œÕÌÊ̅iÊÃՓ“iÀÊ>˜`ʈ˜ÌœÊ̅iÊv>°Ê
1˜ˆŽiÊ̅iÊ««iÊÊ>˜`Ê]Ê܅ˆV…ÊÜiÀiÊiÃÃi˜Ìˆ>ÞÊ̅iÊܜÀŽÊœvʜ˜iʓ>˜]Ê
The Apple III was code-named Sara
after chief engineer Wendell Sander’s
daughter.
The ProFile (code-named Pippin)
cost $700 per megabyte in 1981.
Compare that to hard drives selling for
less than $1 per gigabyte in 2003!
“We had to put chips in to
disable some Apple II features so
people’s heads would have the
right image that Apple IIIs are
for business and Apple IIs are
for home and hobby.”
Steve Wozniak
41
The Apple III Fiasco
“The Apple III was kind of like a
baby conceived during a group
orgy, and [later] everybody had
this bad headache and there’s
this bastard child, and everyone
says, ‘It’s not mine.’”
Apple employee #6
Randy Wigginton
(Insanely Great, pp. 123–124)
“[Jobs] could see that horizon
out there, a thousand miles
out. But he could never see the
details of each little mile that
had to be covered to get there.
That was his genius and his
downfall.”
Apple’s head of human resources
Jay Elliott
(The Journey Is the Reward, p. 372)
42
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Code Names Uncovered
Peter Stember
Code Names Uncovered
««i½ÃÊ ÀiÃi>ÀV…Ê >˜`Ê `iÛiœ«“i˜ÌÊ v>VˆˆÌˆiÃ]Ê œV>Ìi`Ê œ˜Ê ˜w˜ˆÌiÊ œœ«Ê ˆ˜Ê
Õ«iÀ̈˜œ]Ê>ÀiÊܓiʜvÊ̅iʓœÃÌÊÃiVÕÀiÊLՈ`ˆ˜}Ãʜ˜Ê̅iÊ««iÊV>“«ÕðÊ
œ˜w`i˜Ìˆ>Ê«>«iÀÃÊ>ÀiÊ`ˆÃV>À`i`ʈ˜ÌœÊœVŽi`ÊÜ>ÃÌiL>ÎiÌÃʏiÃÌÊ̅iÞÊv>Êˆ˜ÌœÊ
̅iʅ>˜`ÃʜvÊՓ«ÃÌiÀ‡`ˆÛˆ˜}ÊVœ“«ï̜ÀÃʜÀÊÀi«œÀÌiÀÃÆÊ}Õ>À`ÃÊ>ÀiÊ«œÃÌi`Ê>ÌÊ
>Êi˜ÌÀ>˜ViÃÆÊ>˜`Êi“«œÞiiÃʓÕÃÌÊ«>ÃÃÊ̅iˆÀÊiiVÌÀœ˜ˆVʈ`i˜ÌˆwV>̈œ˜ÊL>`}iÃÊ
ˆ˜ÊvÀœ˜ÌʜvÊÜ>Ê«>ÌiÃÊ̅>ÌÊÛiÀˆvÞÊ>VViÃÃÊ«ÀˆÛˆi}iÃÊ>˜`ʓœ˜ˆÌœÀÊ«iÀܘ˜iÊ
“œÛi“i˜Ì°Ê««iʅ>ÃÊVœ“iÊ>ʏœ˜}ÊÜ>ÞÊvÀœ“Ê̅iÊ`>ÞÃÊ܅i˜ÊœLÃÊ>˜`Ê7œâÊ
i>}iÀÞÊŜÜi`ʜvvÊ܅>ÌÊ̅iÞÊÜiÀiÊ`œˆ˜}ʈ˜Ê̅iʜÃʏ̜ÃÊ}>À>}i]ÊLÕÌʈÌÊ
>ؽÌÊ}œÌÌi˜Ê«>À>˜œˆ`°ÊˆŽiʓœÃÌʅˆ}…‡ÌiV…ÊVœ“«>˜ˆiÃ]Ê««iʈÃÊȓ«ÞÊ
ÌÀވ˜}Ê̜ʓ>ˆ˜Ì>ˆ˜Ê̅iÊÃiVÕÀˆÌÞʜvÊ̅iʓ>˜ÞʘiÜÊ«Àœ«ÀˆiÌ>ÀÞÊÌiV…˜œœ}ˆiÃÊ
>˜`Ê«Àœ`ÕVÌÃʈÌʈÃÊVœ˜ÃÌ>˜ÌÞÊ`iÈ}˜ˆ˜}°Ê
˜ÊiÃÃi˜Ìˆ>Ê«>ÀÌʜvÊÃiVÕÀˆÌÞʈÃÊ̅iÊÕÃiʜvÊVœ`iʘ>“iðÊivœÀiÊ««iÊ
«ÕLˆVÞÊ>˜˜œÕ˜ViÃÊ>Ê«Àœ`ÕVÌÊLÞʈÌÃʜvwVˆ>Ê˜>“i]Ê̅>ÌÊ«Àœ`ÕVÌʈÃʈ˜ÌiÀ˜>ÞÊ
ÀiviÀÀi`Ê̜ÊLÞÊ>ÊVœ`iʘ>“i°Ê1ÃÕ>Þʏi>`Êi˜}ˆ˜iiÀÃʜÀʓ>˜>}iÀÃÊ}iÌÊ̜ʘ>“iÊ
̅iˆÀʜܘʫÀœiVÌÃÊ܅>ÌiÛiÀÊ̅iÞÊÜ>˜Ì]ÊLÕÌÊ>ÊviÜÊÀiVÕÀÀˆ˜}ÊÌÀi˜`ÃÊ>ÀiÊiۈ`i˜Ì°Ê
>ÀÞÊ ˆ˜Ê ˆÌÃÊ ˆ˜V>À˜>̈œ˜]Ê ««iÊ v>ۜÀi`Ê vi“>iÊ ˜>“iÃÊ vœÀÊ «ÀœiVÌÃ°Ê œÀiÊ
œvÌi˜Ê̅>˜Ê˜œÌ]Ê̅iÊ«ÀœiVÌÃÊÜiÀiʘ>“i`Ê>vÌiÀÊ̅iÊV…ˆ`Ài˜]Ê}ˆÀvÀˆi˜`Ã]ʜÀÊ
܈ÛiÃʜvÊ̅iÊÌi>“Ê“i“LiÀÃÊ­vœÀÊiÝ>“«i]Ê̅iʈÃ>ÊÜ>Ãʘ>“i`Ê>vÌiÀʜLýÊwÀÃÌÊ
`>Õ}…ÌiÀ®°ÊivÊ,>Έ˜ÊÀiLii`Ê>}>ˆ˜ÃÌÊ̅iÊÃi݈ÃÌʘœÌˆœ˜ÊœvÊvi“>iÊVœ`iʘ>“iÃÊ
>˜`ʏœœŽi`ʈ˜ÃÌi>`Ê̜Ê>««iÊÛ>ÀˆïiÃÊ>ÃÊ̅iʈ˜Ã«ˆÀ>̈œ˜ÊvœÀʅˆÃÊ>Vˆ˜ÌœÃ…Ê
«ÀœiVÌ]Ê«ÕÀ«œÃiÞʓˆÃëiˆ˜}ÊV˜ÌœÃ…°ÊœÀÊ>Ê܅ˆi]Ê̅iʘ>“iÃʜvÊ`ˆvviÀi˜ÌÊ
ÌÞ«iÃʜvÊ>««iÃÊ­*ˆ««ˆ˜]ʜ˜>̅>˜®ÊÜiÀiʜvÌi˜Ê܅ˆÃ«iÀi`ʈ˜Ê̅iÊ,Eʏ>LðÊ
>ۈ˜}Êi݅>ÕÃÌi`Ê̅iÊÛ>ÀˆœÕÃÊÌÞ«iÃʜvÊ>««iÃ]Ê«ÀœiVÌʓ>˜>}iÀÃʘœÜÊÌi˜`Ê
̜ÊV…œœÃiÊ܅ˆ“ÈV>ÊVœ`iʘ>“iÃÊ̅>ÌÊiˆÌ…iÀÊÀiyiVÌÊ«œ«ÊVՏÌÕÀiʜÀÊVœ˜Ì>ˆ˜Ê
>ÜvՏʫ՘ðÊ*iÀÕȘ}Ê̅iʏˆÃÌʜvÊVœ`iʘ>“iÃʈÃʏˆŽiÊÜ>Žˆ˜}Ê`œÜ˜Ê“i“œÀÞÊ
>˜i]ÊV…iVŽˆ˜}ʜÕÌÊ̅iÊv>`ÃÊ>˜`ÊÌÀi˜`ÃÊ̅>ÌÊÃÜi«ÌÊ̅ÀœÕ}…Ê««iÊVÕLˆViÃÊ
>˜`ʏ>LÊLi˜V…iÃʜÛiÀÊ̅iÊÞi>Àð
««iÊÌ>ŽiÃÊ̅iÊVœ`i‡˜>“ˆ˜}ÊLÕȘiÃÃÊÃiÀˆœÕÏÞ]ʜvÌi˜Ê>ÃÈ}˜ˆ˜}Ê̅iÊ
Ã>“iÊ«ÀœiVÌÊ`ˆvviÀi˜ÌÊVœ`iʘ>“iÃpœ˜iÊ̜ÊLiÊÕÃi`ʈ˜ÌiÀ˜>ÞÊ>˜`Ê>˜œÌ…iÀÊvœÀÊ
45
Code Names Uncovered
If you’re an Apple employee or devout
Mac fan and you spot a code-name
error or omission, please bring it to my
attention at owenink@owenink.com
for correction or inclusion in a
subsequent printing of this book.
The Apple IIc Plus, shown here with an
optional color monitor, had many different
code names and featured a built-in 3.5”
disk drive, more memory, and a much
faster CPU.
iÝÌiÀ˜>ÊÕÃi°ÊÃœ]Ê>ÊȘ}iÊ«ÀœiVÌʓ>Þʅ>ÛiÊÃi«>À>ÌiÊVœ`iʘ>“iÃÊ>ÃÜVˆ>Ìi`Ê
܈̅ʅ>À`Ü>Ài]ÊÜvÌÜ>Ài]Ê`œVՓi˜Ì>̈œ˜]ʈ˜`ÕÃÌÀˆ>Ê`iÈ}˜]Ê>˜`ʓ>ÀŽï˜}°Ê
ÕÀ̅iÀ“œÀi]ʜÕÌÈ`iÀÃpÃÕV…Ê>ÃÊ`iÛiœ«iÀÃÊ>˜`Ê̅iÊ«ÀiÃÃp“>ÞÊLiÊ̜`Ê
>LœÕÌÊ̅iÊÃ>“iÊ«ÀœiVÌ]ÊLÕÌÊi>V…Ê܈ÊLiÊ̜`Ê>Ê`ˆvviÀi˜ÌÊVœ`iʘ>“i°ÊÕÃÌÊ
̜ʎii«ÊiÛiÀÞLœ`ÞÊ}ÕiÃȘ}]Ê««iÊܓï“iÃÊV…>˜}iÃÊVœ`iʘ>“iÃʈ˜Ê̅iÊ
“ˆ``iʜvÊ>Ê«ÀœiVÌ]ʜÀÊÀiÕÃiÃʜ`ÊVœ`iʘ>“iÃÊvœÀʘiÜÊ«ÀœiVÌÃ°Ê œÌʜ˜ÞÊ
`œiÃÊ>Ê̅ˆÃÊVÀi>ÌiÊVœ˜vÕȜ˜Êˆ˜Ê««iÊÜ>ÌV…iÀÃ]ʈÌÊ>ÃœÊÃiÀÛiÃÊ>ÃÊ>˜Ê>Õ`ˆÌÊ
ÌÀ>ˆÊ̜ÊÌÀ>Viʏi>ŽÃÊ̜Ê̅iˆÀÊÜÕÀViðÊ
iëˆÌiÊ««i½ÃÊLiÃÌÊivvœÀÌÃÊ̜ʎii«Ê̅ˆÃÊÜÀÌʜvÊ̅ˆ˜}ÊvÀœ“ÊLiVœ“ˆ˜}Ê
«ÕLˆV]ʽÛiÊVœ“«ˆi`Ê>˜ÊiÝÌi˜ÃˆÛiʏˆÃÌʜvÊVœ`iʘ>“iÃÊ̅>Ìʅ>ÛiÊiÃV>«i`ÊvÀœ“Ê
Õ«iÀ̈˜œÊ>˜`ʜ̅iÀÊ>V‡Ài>Ìi`ÊwÀ“ÃʜÛiÀÊ̅iÊÞi>ÀðʘÊܓiÊV>ÃiÃ]ʽÛiÊ
iÛi˜ÊLii˜Ê>LiÊ̜Ê՘VœÛiÀÊ܅ÞÊ>Ê«>À̈VՏ>ÀÊVœ`iʘ>“iÊÜ>ÃÊV…œÃi˜°
Apple II
««iÊV\ʏv]Ê°/°]ʜLÞ]Ê*ˆ««ˆ˜]Ê/i``ÞʭŜÀÌÊvœÀÊ/iÃ̈˜}ÊÛiÀÞÊ>Þ®]Ê
LÊ­vœÀÊLœœŽ‡Ãˆâi`®]Ê«Ê­vœÀÊ«œÀÌ>Li®]Ê6
Ê­6iÀÞʜÜÊ
œÃÌ®]Ê9œ`>]Ê
«ÕÃʘ˜ˆi]ÊiÀÌ]Ê
iÃ]Ê>ܘ]ʜˆi]Ê-…iÀÀÞ]Ê>˜`Ê<i`>Ê­V…ˆ`Ài˜ÊœvÊ
Ìi>“Ê“i“LiÀî
««iÊVÊ*ÕÃ\Ê`>“ʘÌÊ­LiV>ÕÃiÊ̅iÊÌi>“ÊÜ>ÃÊ>`>“>˜ÌÊ>LœÕÌʎii«ˆ˜}Ê
̅iÊ «ÀœiVÌÊ >ˆÛi®]Ê *ˆââ>Ê ­LiV>ÕÃiÊ œvÊ ˆÌÃÊ «ˆââ>‡LœÝÊ Ã…>«i®]Ê *Àœ«iiÀÊ
­LiV>ÕÃiÊ>ÊÌi>“Ê“i“LiÀʅ>`Ê>Ê«Àœ«iiÀÊLi>˜ˆiʈ˜Ê…ˆÃʜvwVi®]Ê,>ˆÃˆ˜Ê
­>vÌiÀÊ̅iÊÌiÃÌiÀÃÊܜ˜ÊÃiVœ˜`Ê«>ViÊvœÀÊ̅iˆÀÊ
>ˆvœÀ˜ˆ>Ê,>ˆÃˆ˜ÃÊVœÃÌՓiÃÊ
>ÌÊ>Ê>œÜii˜Ê«>ÀÌÞ®
««iÊi\ʈ>˜>]Ê
Ê­œÜÊ
œÃÌÊ««i®]Ê-Õ«iÀÊ
««iÊʈiÊ>˜>}i“i˜ÌÊ1̈ˆÌÞ\ʈŅi>`]ʈŅi>`ʈ˜ÊˆÃ}ՈÃiÊ­>vÌiÀÊ
iÝiVṎÛiÃʜLiVÌi`Ê̜ʜÀˆ}ˆ˜>Ê˜>“i®
««iÊ -\Ê œÀ̏>˜`]Ê Õ“LÞÊ ­vÀœ“Ê >˜Ê ««iÊ >œÜii˜Ê «>À>`iÊ
ˆ“«iÀܘ>̈œ˜®]Ê >ÀŽÊ /Ü>ˆ˜Ê ­>L>˜`œ˜i`Ê ,"ä{Ê «ÀœÌœÌÞ«i®]Ê
*…œi˜ˆÝʭ̅iÊ«ÀœiVÌÊÜ>ÃÊÀiۈÛi`Ê>vÌiÀÊLiˆ˜}ÊV>˜Vii`®]Ê,>“LœÊ­Ì…iÊ
`iÈ}˜ÊÌi>“Ê…>`Ê̜Êw}…ÌÊvœÀÊ>««ÀœÛ>®Ê
««iÊ-Ê6ˆ`iœÊ"ÛiÀ>ÞÊ
>À`\ÊՓLÞ]Ê*œŽiÞ
««iÊʈ}…Ê-«ii`Ê-
-Ê
>À`\Ê
œVœœ˜Ê
««iÊÝÊ­>LœÀÌi`®\ÊÀœœŽÞ˜]ʜÛi]ʜ`i˜Ê>ÌiÊ­ÀiviÀÀˆ˜}Ê̜Ê̅iÊ>LˆˆÌÞÊ
̜ʓ>ŽiʈÌÊ>ÊLÀˆ`}iÊLiÌÜii˜Ê̅iÊ««iÊÊ>˜`Ê>V®
««iÊ\Ê->À>Ê­>vÌiÀÊ̅iÊ`>Õ}…ÌiÀʜvÊV…ˆivÊi˜}ˆ˜iiÀÊ7i˜`iÊ->˜`iÀ®
CPUs
««i½ÃÊwÀÃÌÊ,-
Ê«ÀœiVÌÊ­L>Ãi`ʜ˜Ê̅iʜ̜Àœ>ÊnnäääÊ,-
®\Ê>}Õ>À]Ê
/iÃÃiÀ>VÌÊ
*œÜiÀ*
ÊÈäÓ\Ê>>…>`
*œÜiÀ*
ÊÈäÎ\Ê7>ÀÌÊ­ˆ˜}ÊÀ̅ÕÀ½ÃÊÌÀÕÃÌÞÊ>ˆ`i®Ê
*œÜiÀ*
ÊÈäÎiÉÈäγÉÈäÎiÛ\Ê-ÌÀiÌV…]Ê6>ˆ>˜Ì
*œÜiÀ*
ÊÈäÎiÌ\ʜ`i˜iÞi
*œÜiÀ*
ÊÈä{\Ê<i«…ÞÀ
*œÜiÀ*
ÊÈä{i\Êi“Ê7ˆ˜`]Ê-ˆÀœVVœ]Ê/܈ÃÌiÀ
*œÜiÀ*
ÊÈä{iµ\Ê>V…ÊxÊ
46
Millionaire Mania
Millionaire Mania
iÌ̈˜}Ê>ÊVœ“«>˜ÞʜvvÊ̅iÊ}ÀœÕ˜`Ê>Ü>ÞÃÊÀiµÕˆÀiÃÊÃ>VÀˆwViÃ]Ê>˜`ʈ˜Ê̅>ÌÊ
Ài}>À`Ê««iÊÜ>ÃʘœÊ`ˆvviÀi˜ÌÊ̅>˜Ê>˜Þʜ̅iÀ°Ê/œÊÃVÀ>«iÊ̜}i̅iÀÊ̅iÊVœÃÌÊ
œvÊ «Àœ`ÕVˆ˜}Ê Ì…iÊ œÀˆ}ˆ˜>Ê ««iÊ Ê «Àˆ˜Ìi`Ê VˆÀVՈÌÊ Lœ>À`Ê ˆ˜Ê £™ÇÈ]Ê -ÌiÛiÊ
œLÃÊ«>ÀÌi`Ê܈̅ʅˆÃÊÀi`Ê>˜`Ê܅ˆÌiÊ6œŽÃÜ>}i˜ÊLÕÃÊvœÀÊf£]xääÊ>˜`Ê-ÌiÛiÊ
7œâ˜ˆ>ŽÊ܏`ʅˆÃÊLiœÛi`Êi܏iÌ̇*>VŽ>À`ÊÈxÊ«Àœ}À>““>LiÊV>VՏ>̜ÀÊvœÀÊ
fÓxä°Ê/…iÊVœ“«>˜ÞÊÜ>ÃʅœLLˆ˜}Ê>œ˜}Ê>ÌÊ̅iÊLi}ˆ˜˜ˆ˜}ʜvÊ£™ÇÇÊ܅i˜Ê
ÀïÀi`ÊLÕȘiÃÓ>˜ÊˆŽiÊ>ÀŽŽÕ>Ê«œÕÀi`Êf™Ó]äääʈ˜ÌœÊ««i½ÃÊVœvviÀÃÊ
>˜`ÊÃiVÕÀi`Ê>ÊfÓxä]äääʏˆ˜iʜvÊVÀi`ˆÌÊ>ÌÊ>˜ŽÊœvʓiÀˆV>°Ê
/…iÊ̈“iÊ>˜`ʓœ˜iÞÊi>V…ÊœvÊ̅iÊ̅ÀiiÊÃ>VÀˆwVi`Ê̜ʓ>ŽiÊ««iÊ>ÊÃÕVViÃÃÊ
ÜiÀiÊ>“«ÞÊÀiÜ>À`i`ʜ˜ÊiVi“LiÀÊ£Ó]Ê£™nä]Ê܅i˜Ê՘`iÀÜÀˆÌiÀÃʜÀ}>˜Ê
-Ì>˜iÞÊ >˜`Ê >“LÀiV…ÌÊ EÊ +ՈÃÌÊ ÌœœŽÊ ̅iÊ Vœ“«>˜ÞÊ «ÕLˆV°Ê "Àˆ}ˆ˜>ÞÊ
wi`Ê ÌœÊ ÃiÊ >ÌÊ f£{Ê >Ê Ã…>Ài]Ê Ì…iÊ Ã̜VŽÊ œ«i˜i`Ê >ÌÊ fÓÓÊ >˜`Ê >Ê {°ÈÊ “ˆˆœ˜Ê
Å>ÀiÃÊ܏`ʜÕÌʈ˜Ê“ˆ˜ÕÌiðÊ/…iÊÃ̜VŽÊÀœÃiÊ>“œÃÌÊÎÓÊ«iÀVi˜ÌÊ̅>ÌÊ`>ÞÊ̜Ê
VœÃiÊ >ÌÊ fә]Ê }ˆÛˆ˜}Ê Ì…iÊ Vœ“«>˜ÞÊ >Ê “>ÀŽiÌÊ Û>Õ>̈œ˜Ê œvÊ f£°ÇÇnÊ Lˆˆœ˜°Ê
œLÃ]Ê̅iÊȘ}iʏ>À}iÃÌÊÃ̜VŽ…œ`iÀÊ܈̅ÊÇ°xʓˆˆœ˜ÊÅ>ÀiÃ]ÊÃÕ``i˜Þʅ>`Ê>Ê
˜iÌÊܜÀ̅ÊiÝVii`ˆ˜}ÊfÓ£Çʓˆˆœ˜°Ê œÌÊ̜œÊÅ>LLÞÊvœÀÊ>ÊVœi}iÊ`Àœ«œÕÌ°Ê
7œâ½ÃÊ{ʓˆˆœ˜ÊÅ>ÀiÃÊÜiÀiÊܜÀ̅Ê>ÊÀiëiVÌ>LiÊf££Èʓˆˆœ˜°Ê*ÀiÌÌÞÊ}œœ`Ê
vœÀÊ >Ê ÜˆÀi‡…i>`Ê Ü…œÊ ˜iÛiÀÊ Ü>˜Ìi`Ê ÌœÊ LՈ`Ê >Ê Vœ“«>˜Þ°Ê Ûi˜Ê >ÀŽŽÕ>Ê
VœÕ`˜½ÌÊVœ“«>ˆ˜°ÊˆÃÊÇʓˆˆœ˜ÊÅ>ÀiÃÊÜiÀiÊÛ>Õi`Ê>ÌÊfÓäÎʓˆˆœ˜]ÊvœÀÊ>˜Ê
՘LiˆiÛ>LiÊxx]™{ÎÊ«iÀVi˜ÌÊ>˜˜Õ>ˆâi`ÊÀiÌÕÀ˜Êœ˜Ê…ˆÃʜÀˆ}ˆ˜>Ê£™ÇÇÊÃÌ>Žit
/…iÊ Ì…ÀiiÊ vœÕ˜`iÀÃÊ œvÊ ««iÊ œ“«ÕÌiÀÊ ˜V°Ê ÜiÀi˜½ÌÊ Ì…iÊ œ˜ÞÊ œ˜iÃÊ
܅œÊ`ˆ`ÊÜiÊ̅>ÌÊv>ÌivՏÊ`>Þʈ˜ÊiVi“LiÀ°Ê"vÊ««i½ÃÊ£]äääÊi“«œÞiiÃ]Ê
“œÀiÊ̅>˜Ê{äÊLiV>“iʈ˜ÃÌ>˜Ìʓˆˆœ˜>ˆÀiÃÊ̅>˜ŽÃÊ̜Ê̅iˆÀÊÃ̜VŽÊœ«Ìˆœ˜Ã°Ê
­˜Êœ«Ìˆœ˜ÊˆÃÊ>ÊvœÀ“ÊœvÊVœ“«i˜Ã>̈œ˜Ê̅>ÌÊ}À>˜ÌÃÊ>˜Êi“«œÞiiÊ̅iÊÀˆ}…ÌÊ̜Ê
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vœÀÊi“«œÞ“i˜ÌÊ܈̅ʜ«Ìˆœ˜Ãʜ˜Ê>ÊviÜÊ̅œÕÃ>˜`ÊÅ>ÀiÃʜvÊÃ̜VŽÊ܈̅ÊiÝiÀVˆÃiÊ
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܅œÊœÜ˜i`Ê>ʏˆÌ̏iʜÛiÀÊ£]äääÊvœÕ˜`iÀ½ÃÊÅ>ÀiÃÊÜi˜ÌÊ̜ÊLi`Ê>ʓˆˆœ˜>ˆÀiÊ
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i“«œÞiiÃÊ ÃÕV…Ê >ÃÊ ÌiV…˜ˆVˆ>˜Ã°Ê >˜ÞÊ œvÊ ««i½ÃÊ i>ÀˆiÃÌÊ i“«œÞiiÃÊ ÜiÀiÊ
iˆÌ…iÀÊ̜œÊˆ˜iÝ«iÀˆi˜Vi`ʜÀÊ̜œÊ˜>ˆÛiÊ̜Ê`i“>˜`ÊÃ̜VŽÊœ«Ìˆœ˜Ã°Êi̽ÃÊv>ViÊ
ˆÌ]ʓ>˜ÞʜvÊ̅i“ÊÜiÀiʍÕÃÌÊÌii˜>}iÀÃÊ>˜`ÊVœi}iʎˆ`ðÊÊÌiˆ˜}ÊiÝ>“«iʈÃÊ
>˜ˆiÊ°ÊœÌ̎i]Ê܅œÊ…>`ÊLii˜ÊœLýÊLiÃÌÊvÀˆi˜`Ê>ÌÊ,ii`Ê
œi}iÊ>˜`Ê܅œÊ
ÌÀ>Ûii`Ê̜ʘ`ˆ>Ê܈̅ʅˆ“ʈ˜Ê£™Ç{ÊÃiiŽˆ˜}ÊëˆÀˆÌÕ>Êi˜ˆ}…Ìi˜“i˜Ì°
"Àˆ}ˆ˜>ÞÊ V>i`Ê ˆ˜Ê ÌœÊ …i«Ê ÃÌÕvvÊ ««iÊ Ê VˆÀVՈÌÊ Lœ>À`ÃÊ ˆ˜Ê £™ÇÈ]Ê
œÌ̎iÊLiV>“iÊi“«œÞiiʛ£Óʈ˜Ê՘iÊ£™ÇÇÊ>˜`ÊÜ>ÃÊ«>ˆ`ʓˆ˜ˆ“Õ“ÊÜ>}iÊ
̜Ê>ÃÃi“LiÊ>˜`ÊÌiÃÌÊ««iÊʓœÌ…iÀLœ>À`ðÊÞÊ£™nä]ʜÌ̎iÊÜ>ÃÊ`œˆ˜}Ê
Apple’s initial public offering was
the largest IPO since the Ford Motor
Company went public in 1956.
Nonetheless, it sold out in minutes.
Unfortunately, not everyone was
allowed to get in on the ground floor.
For fiscal year 1980, Apple showed
a profit of $11.7 million, or 24 cents
a share, on revenue of $118 million.
That priced the IPO at 92 times
earnings. Because Massachusetts’
securities law didn’t allow offerings
with prices of more than 20 times
earnings, the state banned individual
residents from participating in the IPO,
deeming it “too risky.” After the IPO,
the state determined that residents
had been made aware of the risks and
decided to allow trading. On May 27,
1981, a second offering of 2.6 million
shares of stock was completed.
59
Millionaire Mania
Courtesy of Michael Jamison
“When I was 23, I had a net
worth of over a million dollars.
At 24 it was over $10 million,
and at 25 it was over $100
million.”
Steve Jobs
Jobs first appeared on the Forbes
Four Hundred list of richest Americans
in 1982. After he sold NeXT to
Apple and took Pixar public, Forbes
estimated his net worth at $710
million in 1997. In the fall of 2002,
the 47-year-old Jobs was worth $1.6
billion, according to Forbes.
By 1982, certificates featuring the Apple II (inset) had replaced the ornate
pre-IPO shares.
“I’m the only person I know
that’s lost a quarter of a billion
dollars in one year…it’s very
character building.”
Steve Jobs, discussing what it’s like
having so much of your net worth tied
to a volatile stock such as Apple
60
“ÕV…Ê“œÀiÊ`i“>˜`ˆ˜}ÊܜÀŽ]ÊLՈ`ˆ˜}Ê>˜`ÊÌÀœÕLiŜœÌˆ˜}Ê̅iÊ««iÊÊ
«ÀœÌœÌÞ«i]ÊLÕÌʅiÊÀi“>ˆ˜i`Ê>˜Ê…œÕÀÞÊÌiV…˜ˆVˆ>˜°ÊºÊŽi«ÌʓÞʅi>`Ê`œÜ˜Ê
>˜`ÊÜ>ÃÊܜÀŽˆ˜}ʈ˜Ê̅iʏ>L]»ÊÀiV>ÃʜÌ̎i°ÊºÊÜ>ÃÊÛiÀÞʘ>ˆÛi°ÊʍÕÃÌÊ̅œÕ}…ÌÊ
ÊܜՏ`Ê`œÊ}œœ`ÊܜÀŽÊ>˜`ÊiÛi˜ÌÕ>ÞÊ}iÌÊÀiÜ>À`i`°Ê7…>ÌÊ>˜Êˆ`ˆœÌ°»
œÌ̎iÊÜ>˜Ìi`Ê̅iÊ̈̏iʜvÊi˜}ˆ˜iiÀʓœÀiÊ̅>˜Ê̅iʜ«Ìˆœ˜ÃÊ̅>ÌÊÜi˜ÌÊ
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Vœ“«>˜Þ°Êʅ>`ÊLii˜ÊܜÀŽˆ˜}Ê̅iÀiÊȘViʈÌÊÃÌ>ÀÌi`Ê>˜`ÊÊÜ>ؽÌʈ˜Ìi˜`ˆ˜}Ê̜Ê
i>Ûi°ÊÊ`iÃiÀÛi`Ê̜ʈ˜ÛiÃÌ]»ÊLiˆiÛi`ʜÌ̎i]Ê܅œÊ>ÌÊ̅iÊ̈“iÊÜ>ÃÊÅ>Àˆ˜}Ê>Ê
œÕÃiʈ˜Ê
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Li>ÀʜLýÊV…ˆ`]ʈÃ>Ê ˆVœi®°
,œ`ʜÌ]Êi˜}ˆ˜iiÀˆ˜}Ê6*Ê>˜`Êi“«œÞiiʛx]ÊÜ>ÃÊÜÊ՘Vœ“vœÀÌ>LiÊ
܈̅Ê̅iʈ˜iµÕˆÌÞʜvÊ̅iÊÈÌÕ>̈œ˜Ê̅>ÌʅiÊ«iÀܘ>ÞÊ>««Àœ>V…i`ʜLÃÊ>˜`Ê
ÃÕ}}iÃÌi`Ê Ì…iÞÊ LœÌ…Ê }ˆÛiÊ œÌ̎iÊ Ãœ“iÊ Ã̜VŽÊ LÞÊ “>ÌV…ˆ˜}Ê i>V…Ê œÌ…iÀ½ÃÊ
Vœ˜ÌÀˆLṎœ˜°ÊœLÃÊÀi«œÀÌi`ÞÊiÝV>ˆ“i`]ʺÀi>ÌtʽÊ}ˆÛiʅˆ“ÊâiÀœ°»Ê
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Üi˜ÌÊ̜ÊV…>ˆÀ“>˜Ê>ÀŽŽÕ>Ê>˜`Ê«ÀiÈ`i˜ÌʈŽiÊ-VœÌÌÊ>˜`Ê̜`Ê̅i“Ê…œÜÊ
՘…>««ÞʅiÊÜ>ÃÊLiV>ÕÃiʅiʅ>`˜½ÌÊ}œÌÌi˜Ê>˜ÞÊÅ>ÀiðʺÊ̜`Ê̅i“Ê̅>ÌÊÊ
Ü>ÃÊ}œˆ˜}Ê̜ʏi>ÛiÊ̅iÊVœ“«>˜Þ]»ÊÀiV>ÃʜÌ̎i°Êº/…iÞÊ}>Ûiʓiʜ«Ìˆœ˜ÃÊ
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7œâ˜ˆ>Ž]Ê Ü…œÊ viÌÊ Ì…>ÌÊ ˆÌÊ Ü>ÃÊ Õ˜v>ˆÀÊ Ì…>ÌÊ “>˜ÞÊ œvÊ Ì…iÊ i>ÀˆiÃÌÊ ««iÊ
The Strangest Bedfellow of All
The Strangest Bedfellow of All
Courtesy of IBM Corp.
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wi`°Ê/…iÊ««iÊÊ܏`ÊLÀˆÃŽÞʈ˜ÌœÊ̅iʅœ“iÊ>˜`Êi`ÕV>̈œ˜Ê“>ÀŽiÌÃÊ>˜`Ê
>`ÊiÛi˜Ê“>`iʅi>`Ü>Þʈ˜ÌœÊLÕȘiÃÃʜvwViÃ]Ê̅>˜ŽÃÊ̜Ê̅iÊ«œ«Õ>ÀˆÌÞʜvÊ
6ˆÃˆ
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}ÀœÜ̅]Ê>˜`Ê««iÊÜ>Ãʏi>`ˆ˜}Ê̅iÊ«>VŽ°ÊÕÌÊ««iʎ˜iÜʈÌÊÜ>Ãʜ˜ÞÊ>ʓ>ÌÌiÀÊ
œvÊ̈“iÊLivœÀiʈÌÊv>Vi`Ê̅iʓœÃÌÊvœÀ“ˆ`>LiÊVœ“«ï̜ÀʜvÊ>]ʘÌiÀ˜>̈œ˜>Ê
ÕȘiÃÃÊ >V…ˆ˜iÃÊ ­ÜÜÜ°ˆL“°Vœ“®Ê œvÊ À“œ˜Ž]Ê iÜÊ 9œÀŽ°Ê/…iÊ `>ÞÊ œvÊ
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«iÀܘ>ÊVœ“«ÕÌiÀÊ܈̅Ê>ÊȘ}iÊx°Óx‡ˆ˜V…Êyœ««ÞÊ`ˆÃŽÊ`ÀˆÛiÊ>˜`Ê£ÈʜvÊ
“i“œÀÞ°
“It’s curious to me that the
largest computer company in the
world [IBM] couldn’t even match
the Apple II, which was designed
in a garage six years ago.”
Steve Jobs
(InfoWorld, March 8, 1982)
“I was at Apple the day IBM
announced [its PC]. They didn’t
seem to care. It took them a year
to realize what had happened.”
Microsoft CEO Bill Gates
The boxy IBM Personal Computer didn’t break any new technological barriers,
but the mere fact that it came from the world’s largest computing firm validated
the microcomputer market that Apple had dominated so far.
ÌÊwÀÃÌÊ««iÊÜ>ÃÊVœ˜w`i˜ÌʈÌÊVœÕ`ʅœ`ʈÌÃʜܘÊ>}>ˆ˜ÃÌʰʺ7i½ÀiÊ
}œˆ˜}Ê̜ʜÕ̇“>ÀŽiÌÊ]»ÊÃ>ˆ`ÊV…>ˆÀ“>˜Ê-ÌiÛiʜLðʺ7i½ÛiÊ}œÌʜÕÀÊňÌÊ
̜}i̅iÀ°»Ê*ÀiÈ`i˜ÌʈŽiÊ >ÀŽŽÕ>ÊÜ>ÃÊiµÕ>ÞÊÕ«Li>Ì]ÊÃÌ>̈˜}]ʺ7i½ÛiÊ
Lii˜Ê«>˜˜ˆ˜}Ê>˜`ÊÜ>ˆÌˆ˜}ÊvœÀÊÊ̜Ê}iÌʈ˜ÌœÊ̅iʓ>ÀŽiÌ«>ViÊvœÀÊvœÕÀÊ
Þi>ÀðÊ7i½ÀiÊ̅iÊ}ÕÞÃʈ˜Ê̅iÊ`ÀˆÛiÀ½ÃÊÃi>Ì°Ê7i½ÀiÊ̅iÊ}ÕÞÃÊ܈̅ʜ˜i‡Ì…ˆÀ`ʜvÊ
>ʓˆˆœ˜Êˆ˜ÃÌ>i`ÊL>Ãi°Ê7i½ÀiÊ̅iÊ}ÕÞÃÊ܈̅Ê>ÊÜvÌÜ>ÀiʏˆLÀ>ÀÞ°Ê7i½ÀiÊ̅iÊ
}ÕÞÃÊ܈̅Ê`ˆÃÌÀˆLṎœ˜°Ê̽ÃÊÊ܅œÊˆÃÊÀi>V̈˜}Ê>˜`ÊÀi뜘`ˆ˜}Ê̜ʫ«i°Ê
/…iÞ½Ê …>ÛiÊ ÌœÊ `œÊ >Ê œÌÊ “œÀiÊ Ài>V̈˜}Ê >˜`Ê Ài뜘`ˆ˜}°Ê Ê …>ؽÌÊ Ì…iÊ
vœ}}ˆiÃÌʘœÌˆœ˜ÊœvʅœÜÊ̜ÊÃiÊ̜ʈ˜`ˆÛˆ`Õ>Ã°ÊÌÊ̜œŽÊÕÃÊvœÕÀÊÞi>ÀÃÊ̜ʏi>À˜Ê
>LœÕÌʈ̰Ê/…iÞʓÕÃÌʏi>À˜Ê>LœÕÌÊ`ˆÃÌÀˆLṎœ˜ÊÃÌÀÕVÌÕÀiÊ>˜`ʈ˜`i«i˜`i˜ÌÊ
`i>iÀðÊ9œÕÊV>˜˜œÌÊÀi`ÕViÊ̈“iÊLÞÊ̅ÀœÜˆ˜}ʓœ˜iÞÊ>Ìʈ̰Ê-…œÀÌʜvÊ7œÀ`Ê
7>ÀÊʘœÌ…ˆ˜}ʈÃÊ}œˆ˜}Ê̜ʎ˜œVŽÊÕÃʜÕÌʜvÊ̅iÊLœÝ°»
“The IBM PC is beneath
comment. It’s been known for 12
years how to do a good-looking
display and IBM didn’t put one
on its machine. You can’t have
any favorable comment beyond
that. That is the ultimate in
know-nothingness.”
Apple Fellow Alan Kay
(InfoWorld, June 11, 1984)
67
The Strangest Bedfellow of All
Apple actually welcomed IBM into the
PC market, but urged “responsible
competition.”
“As it turned out, the original
welcome was like Little Red
Ridinghood’s welcoming the wolf
into her grandmother’s home.
There is a very fine line between
being self-confident and getting
cocky about it.”
John Sculley
(Playboy, September 1987)
“IBM wants to wipe us off the
face of the earth.”
Steve Jobs
(Fortune, February 20, 1984)
68
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From Xerox, with Love
From Xerox, with Love
“The primary objective of LISA
is to provide the cornerstone
around which we can build
Apple Computer into a $500
million dollar [sic] per year
company. In order to do this, the
product must allow us to make
a unique contribution to a large
segment of the small computer
marketplace.”
(Lisa marketing requirements
document, April 18, 1980)
Courtesy of Xerox Corp. and Brian Tramontana of Xerox PARC
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The Xerox Palo Alto Research Center is the birthplace of many computing firsts,
including breakthroughs popularized by Apple in the Lisa.
73
The Alto was a revolutionary creation,
but it wasn’t a product. If it had been
sold commercially with the industry’s
customary gross margins, it might
have cost as much as $40,000.
“It doesn’t matter how great the
computer is if nobody buys it.
Xerox proved that.”
Mac documentation leader
Chris Espinosa
Engelbart (www.bootstrap.org)
maintains an office at the
operational headquarters of Logitech
(www.logitech.com), the largest
supplier of computer mice in the
world.
“The original Lisa was a
character-generator machine.
I spent days with the Lisa team
trying to explain that it could
be done all in graphics, like the
Alto. In that regard, I had a very
strong influence on the Lisa; I
was trying to make it more like
the Mac. I thought they were
headed in the wrong direction.”
Father of the Mac project Jef Raskin
74
Courtesy of Xerox Corp. and Brian Tramontana of Xerox PARC
From Xerox, with Love
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the groundbreaking Xerox Alto.
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The Making of Macintosh
The Making of Macintosh
Courtesy of Michael Swaine
-ÌiÛiʜLÃÊ>˜`Ê̅iÊ>Vˆ˜ÌœÃ…Ê>Àiʈ˜iÝÌÀˆV>LÞʏˆ˜Ži`ʈ˜Ê̅iʓˆ˜`ÃʜvʓœÃÌÊ
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Early Apple employees (from left to right) Michael Scott, Steve Jobs, Jef Raskin,
Chris Espinosa, and Steve Wozniak, shown here in a hotel room in 1977.
85
The Making of Macintosh
“Adam Osborne is always
dumping on Apple. He was
going on and on about Lisa and
when we would ship Lisa and
then he started joking about
Mac. I was trying to keep my
cool and be polite but he kept
asking, ‘What’s this Mac we’re
hearing about? Is it real?’ He
started getting under my collar
so much that I told him, ‘Adam,
it’s so good that even after
it puts your company out of
business, you’ll still want to go
out and buy it for your kids.’”
Steve Jobs
Osborne Computer Corp. was
founded in 1980 and made a name
for itself with a portable computer
the size of a sewing machine. The
company went bankrupt in 1983 when
sales dried up after founder Adam
Osborne preannounced an improved
model that everyone waited for instead
of buying the current one. Adam
Osborne died on March 18, 2003, in
southern India of a rare organic brain
disorder.
86
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Macintosh Insiders
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Óä̅ÊVi˜ÌÕÀÞ°Ê-ˆˆVœ˜Ê6>iÞʈÃʈ˜v>“œÕÃÊvœÀʈÌÃʺLÕÀ˜Ê>˜`ÊÌÕÀ˜»Ê>««Àœ>V…Ê
̜ʅՓ>˜ÊÀiÜÕÀViÃ]ÊÜÊ`œ˜½ÌÊLiÊÃÕÀ«ÀˆÃi`ʈvÊ«iœ«iÊ>ÀiʘœÊœ˜}iÀÊ>ÌÊ̅iÊ
Vœ“«>˜ˆiÃʏˆÃÌi`°
Special thanks to Guy Kawasaki for
the initial research upon which this
chapter is based.
Apple continued using case molds
with signatures until sometime during
the production of the Mac SE, at
which time signature-free molds
were substituted for the classic-style,
all-in-one Mac. However, the practice
was revived with the Mac IIci and IIcx,
both of which contain signatures of
the Product Design Team inscribed
along the left side of the case, below
the motherboard: Gavin Ivester, Pat
Jackson, Jimmy Melton, Grant Ross,
Terry Smith, Tom Toedtman, Lada
Zajicek, and Laszlo Zsidek.
“Going out of the eighties, you
know there won’t be a Mac
group. Burrell [Smith] will be off
in Oregon playing his guitar.
Andy [Hertzfeld] will be writing
the next great American novel.
Who knows what. But we’ll be
scattered all over the globe
doing other amazing stuff.”
Steve Jobs, prior to the Mac’s intro
103
Macintosh Insiders
Peggy Alexio
/…i˜\ ÊÀi>Ê>ÃÜVˆ>ÌiÊ
œÜ\ ÊÊivÌÊ««iÆÊ܅iÀi>LœÕÌÃÊ՘Ž˜œÜ˜
Collette Askeland
/…i˜\ ÊiÈ}˜i`Ê̅iÊ«Àˆ˜Ìi`ÊVˆÀVՈÌÊLœ>À`ÊvœÀÊ̅iʓ>ˆ˜Êœ}ˆVÊLœ>À`
œÜ\ ÊÊivÌÊ««iʈ˜Ê£™™n
Bill Atkinson
/…i˜\ Ê7ÀœÌiÊ+ՈVŽÀ>ÜÊ>˜`Ê>V*>ˆ˜Ì
œÜ\ ÊÊivÌÊ ««iÊ ˆ˜Ê £™™äÆÊ VœvœÕ˜`i`Ê i˜iÀ>Ê >}ˆVÆÊ ˜œÜÊ >Ê ˜>ÌÕÀiÊ
«…œÌœ}À>«…iÀÊ­ÜÜÜ°Lˆ>̎ˆ˜Ãœ˜°Vœ“®
Robert L. Belleville
/…i˜\ ʘ}ˆ˜iiÀˆ˜}ʓ>˜>}iÀÊ
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«i˜`ՏՓÊVœVŽ
Mike Boich
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Bill Bull
/…i˜\ Ê7œÀŽi`ʜ˜Êº˜œÊv>˜»Ê܏Ṏœ˜]ÊV>LiÃ]ʎiÞLœ>À`]Ê>˜`ʓœÕÃi
œÜ\ ÊÊ>˜>}iÀʜvÊ«Àœ`ÕVÌÊ`iÈ}˜ÊvœÀʘ«ÕÌÊiۈViÊÀœÕ«
Matt Carter
/…i˜\ Ê>Vʓ>˜Õv>VÌÕÀˆ˜}ʓ>˜>}iÀ
œÜ\ ÊÊivÌÊ««iʈ˜Ê£™nÎÆÊÃÌ>À̈˜}Ê>ʘiÜÊVœ“«>˜Þ
Berry Cash
/…i˜\ Ê>ÀŽï˜}Ê>˜`ÊÃ>iÃÊVœ˜ÃՏÌ>˜ÌÊ
œÜ\ ÊÊivÌÊ««iÆÊÛi˜ÌÕÀiÊV>«ˆÌ>ˆÃÌÊ>ÌÊ"ÓÊ­ÜÜÜ°…œÓ°Vœ“®Ê>˜`ʘÌiÀ7iÃÌÊ
*>À̘iÀÃÊ­ÜÜÜ°ˆ˜ÌiÀÜiÃÌ°Vœ“®
Debi Coleman
/…i˜\ Ê
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George Crow
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104
The Greatest Commercial That Almost Never Aired
The Greatest Commercial
That Almost Never Aired
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«Àœ«œÃi`Ê̜ÊŜœÌ°
/…iÊ “ˆ˜ˆ‡“œÛˆiÊ ÜœÕ`Ê Ã…œÜÊ >˜Ê >̅ïVÊ ÞœÕ˜}Ê Üœ“>˜]Ê V…>Ãi`Ê LÞÊ
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“Am I getting anything I should
give a shit about?”
Steve Jobs, upon first meeting Lee
Clow, creative director for Chiat/Day
(West of Eden, p. 87)
“Luck is a force of nature.
Everything seemed to conspire
to make 1984 a hit: the timing,
the product, the industry. Using
the 1984 theme was such an
obvious idea that I was worried
someone else would beat us to
it, but nobody did.”
The beautiful, athletic heroine of 1984 embodied Apple’s youthful image.
Steve Hayden, explaining the
commercial’s success
109
The Greatest Commercial That Almost Never Aired
This famous tag line was originally intended
for the Apple II, not the Macintosh.
“We wanted people to say,
‘What the hell is this product?’
The idea was to use the
commercial as a tease, not a
product introduction; to make
sure the world knew a new
product was here and that it was
a significant event.”
Chiat/Day director of planning
Mary Terese Rainey
(Marketing & Media Decisions,
November 1984)
110
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Έ˜…i>`ÃÊ >˜`Ê «>ˆ`Ê >“>ÌiÕÀÃÊ
f£ÓxÊ >Ê `>ÞÊ ÌœÊ Ã…>ÛiÊ œvvÊ Ì…iˆÀÊ
>ˆÀ°Ê >Ã̈˜}Ê Ì…iÊ …iÀœˆ˜iÊ
Drones were played by British skinheads «ÀœÛi`Ê ÌÀˆVŽˆiÀ°Ê >˜ÞÊ œvÊ Ì…iÊ
and amateurs paid $125 a day to shave «ÀœviÃȜ˜>Êv>ňœ˜Ê“œ`iÃÊ>˜`Ê
off their hair.
>VÌÀiÃÃiÃʅ>`Ê`ˆvwVՏÌÞÊ눘˜ˆ˜}Ê
ˆ˜Ê «>ViÊ >˜`Ê Ì…i˜Ê >VVÕÀ>ÌiÞÊ
̅ÀœÜˆ˜}Ê̅iÊÈ݇«œÕ˜`ÊÏi`}i…>““iÀÊ>ÃÊV>i`ÊvœÀʈ˜Ê̅iÊÃVÀˆ«Ì°Ê˜Êv>VÌ]Ê
œ˜iÊiÀÀ>˜ÌÊÏi`}i…>““iÀÊ̜ÃÃÊ>“œÃÌʎˆi`Ê>˜Êœ`ʏ>`ÞÊÜ>Žˆ˜}Ê`œÜ˜Ê>Ê«>̅Ê
ˆ˜ÊÞ`iÊ*>ÀŽ]Ê܅iÀiÊ̅iÊV>Ã̈˜}ÊV>ÊÜ>ÃÊLiˆ˜}ʅi`°ÊÃʏÕVŽÊܜՏ`ʅ>ÛiʈÌ]Ê
œ˜iʓœ`i]ʘÞ>Ê>œÀ]ÊÜ>ÃÊ>ÃœÊ>˜ÊiÝ«iÀˆi˜Vi`Ê`ˆÃVÕÃÊ̅ÀœÜiÀ°Ê-…iÊÜ>ÃÊ
ˆÀi`Ê̜ʫ>ÞÊ̅iÊvi“>iʏi>`ÊLiV>ÕÃiÊÅiʏœœŽi`Ê̅iÊ«>ÀÌÊ>˜`Ê`ˆ`˜½ÌÊ}iÌÊ`ˆââÞÊ
܅i˜Ê눘˜ˆ˜}Ê>ÀœÕ˜`Ê«Ài«>Àˆ˜}Ê̜ʅÕÀÊ̅iʅ>““iÀ°
ÃÊ£™n{ÊÜ>ÃʜÀˆ}ˆ˜>ÞÊVœ˜ViˆÛi`]ʈ}ÊÀœÌ…iÀÊ`ˆ`ʘœÌʅ>ÛiÊ>Êëi>Žˆ˜}Ê
Àœi]ÊLÕÌÊ`ˆÀiV̜ÀÊ-VœÌÌÊÜ>˜Ìi`Ê̜Ê}ˆÛiʅˆ“Êܓiʏˆ˜iðÊ
œ«ÞÜÀˆÌiÀÊ>Þ`i˜Ê
œLiVÌi`Ê>ÌÊwÀÃÌ]ÊLÕÌÊ>}Àii`Ê̜ʫÕÌÊܓi̅ˆ˜}Ê̜}i̅iÀÊ܅i˜Ê-VœÌÌÊ̅Ài>Ìi˜i`Ê
̜ÊÜÀˆÌiÊ̅iʏˆ˜iÃʅˆ“Ãiv°Ê««iÊÛi…i“i˜ÌÞÊ`i˜ˆi`Ê̅>ÌÊ̅iÊ«Àœ«>}>˜`>‡
ëœṎ˜}Ê ˆ}Ê ÀœÌ…iÀÊ V…>À>VÌiÀÊ ˆ˜Ê ̅iÊ £™n{Ê Vœ““iÀVˆ>Ê Ài«ÀiÃi˜Ìi`Ê ˆÌÃÊ
f{ä‡Lˆˆœ˜ÊVœ“«ï̜À]Ê°ÊiVˆ`iÊvœÀÊޜÕÀÃivÊ>ÃÊޜÕÊÀi>`ʈ}ÊÀœÌ…iÀ½ÃÊ
>À>˜}ÕiÊvÀœ“Ê̅iÊvՏ‡i˜}̅]ÊÈä‡ÃiVœ˜`ÊVœ““iÀVˆ>\
The Mac Meets the Press
The Mac Meets the Press
7…i˜Ê̅iÊ>Vˆ˜ÌœÃ…ÊÜ>Ãʈ˜ÌÀœ`ÕVi`ʈ˜Ê£™n{]Ê««i½ÃÊ«ÕLˆVÊÀi>̈œ˜ÃÊ>˜`Ê
“>ÀŽï˜}Ê`i«>À̓i˜ÌÃÊ«iÀvœÀ“i`ʓˆÀ>ViÃ]ÊÃiVÕÀˆ˜}ʓœÀiÊVœÛiÀ>}iÊvœÀʈÌÃÊ
˜iÜLœÀ˜Ê̅>˜ÊvœÀÊ>˜Þʜ̅iÀÊVœ“«ÕÌiÀʈ˜Ê…ˆÃ̜ÀްʜœŽˆ˜}ÊL>VŽÊ܈̅Ê̅iÊ>ˆ`Ê
œvÊÓäÉÓäʅˆ˜`È}…Ì]ÊÀi>`Ê̅iÊvœœÜˆ˜}ÊiÝViÀ«ÌÃÊvÀœ“ÊÃiÛiÀ>ÊœvÊ̅iʓ>œÀÊ
Vœ“«ÕÌiÀÊ«ÕLˆV>̈œ˜ÃʜvÊ̅iÊ̈“iÊ>˜`Ê`iVˆ`iÊvœÀÊޜÕÀÃivÊ܅ˆV…ʍœÕÀ˜>ˆÃÌÃÊ
ÜiÀiʜ˜Ê̅iʓ>ÀŽÊ܅i˜ÊˆÌÊV>“iÊ̜Ê>ÃÃiÃȘ}Ê̅iʜÀˆ}ˆ˜>Ê>Vˆ˜ÌœÃ…°
“The Mac is the first computer
good enough to be criticized.”
Apple Fellow Alan Kay
(InfoWorld, June 11, 1984)
Byte
º/…iʈÃ>ÊVœ“«ÕÌiÀÊÜ>Ãʈ“«œÀÌ>˜ÌÊLiV>ÕÃiʈÌÊÜ>ÃÊ̅iÊwÀÃÌÊVœ““iÀVˆ>Ê
«Àœ`ÕVÌÊ̜ÊÕÃiÊ̅iʓœÕÃi‡Üˆ˜`œÜ‡`iÎ̜«Êi˜ÛˆÀœ˜“i˜Ì°Ê/…iÊ>Vˆ˜ÌœÃ…Ê
ˆÃÊiµÕ>Þʈ“«œÀÌ>˜ÌÊLiV>ÕÃiʈÌʓ>ŽiÃÊ̅>ÌÊÃ>“iÊi˜ÛˆÀœ˜“i˜ÌÊÛiÀÞÊ
>vvœÀ`>Li°
º/…iÊ>Vˆ˜ÌœÃ…Ê܈Ê…>ÛiÊ̅Àiiʈ“«œÀÌ>˜ÌÊivviVÌðʈÀÃÌ]ʏˆŽiÊ̅iʈÃ>]Ê
ˆÌÊ܈ÊLiʈ“ˆÌ>Ìi`ÊLÕÌʘœÌÊVœ«ˆi`oÊ/…œÃiÊVœ“«>˜ˆiÃÊ̅>ÌÊÌÀÞÊ̜ʈ“ˆÌ>ÌiÊ̅iÊ
>Vʜ˜ÊœÌ…iÀʓ>V…ˆ˜iÃÊ܈Ê…>ÛiÊÌÀœÕLiʓ>ÌV…ˆ˜}ʈÌÃÊ«ÀˆViÉ«iÀvœÀ“>˜ViÊ
Vœ“Lˆ˜>̈œ˜°
º-iVœ˜`]Ê Ì…iÊ >Vˆ˜ÌœÃ…Ê ܈Ê ÃiVÕÀiÊ Ì…iÊ «>ViÊ œvÊ Ì…iÊ -œ˜ÞÊ Î°x‡ˆ˜V…Ê
`ˆÃŽÊ>ÃÊ̅iʓ>}˜ïVʓi`ˆÕ“ÊœvÊV…œˆViÊvœÀÊ̅iʘiÝÌÊ}i˜iÀ>̈œ˜ÊœvÊ«iÀܘ>Ê
Vœ“«ÕÌiÀð
º/…ˆÀ`]Ê̅iÊ>Vˆ˜ÌœÃ…Ê܈Êˆ˜VÀi>ÃiÊ««i½ÃÊÀi«ÕÌ>̈œ˜Êˆ˜Ê̅iʓ>ÀŽiÌoÊ
>˜ÞÊLÕȘiÃÃÊÕÃiÀÃÊ܈ÊÃÌ>ÞÊ܈̅Ê̅iʼÃ>viÀ½ÊÊ*
°ÊœÜiÛiÀ]Ê«iœ«iÊ
˜iÜÊ̜ÊVœ“«Ṏ˜}Ê>˜`Ê̅œÃiÊ܅œÊ>Àiʓ>ÛiÀˆVŽÊi˜œÕ}…Ê̜ÊÃiiÊ̅iÊÛ>ÕiÊ>˜`Ê
«Àœ“ˆÃiʜvÊ̅iÊ>VÊ܈Êv>ۜÀʈ̰Ê/…iÊ>VÊ܈Ê`i>ÞʽÃÊ`œ“ˆ˜>̈œ˜ÊœvÊ
̅iÊ«iÀܘ>ÊVœ“«ÕÌiÀʓ>ÀŽiÌ°
º"ÛiÀ>]Ê Ì…iÊ >Vˆ˜ÌœÃ…Ê ˆÃÊ >Ê ÛiÀÞÊ ˆ“«œÀÌ>˜ÌÊ “>V…ˆ˜iÊ Ì…>Ì]Ê ˆ˜Ê “ÞÊ
œ«ˆ˜ˆœ˜]ÊÀi«>ViÃÊ̅iʈÃ>Ê>ÃÊ̅iʓœÃÌʈ“«œÀÌ>˜ÌÊ`iÛiœ«“i˜Ìʈ˜ÊVœ“«ÕÌiÀÃÊ
ˆ˜Ê̅iʏ>ÃÌÊwÛiÊÞi>ÀðÊ/…iÊ>Vˆ˜ÌœÃ…ÊLÀˆ˜}ÃÊÕÃʜ˜iÊÃÌi«ÊVœÃiÀÊ̜Ê̅iʈ`i>Ê
œvÊVœ“«ÕÌiÀÊ>ÃÊ>««ˆ>˜Vi°Ê7i½ÀiʘœÌÊ̅iÀiÊÞiÌp>Ìʏi>ÃÌ]ʘœÌÊ՘̈Ê̅iʘiÝÌÊ
ÃiÌʜvʈ“«ÀœÛi“i˜ÌÃʭ܅ˆV…]ʈ˜Ê̅ˆÃʈ˜`ÕÃÌÀÞ]ÊÜiʓ>ÞÊÃiiÊv>ˆÀÞÊܜ˜®°Ê7…œÊ
Ž˜œÜÃÊ܅œÊ̅iʘiÝÌʈ˜˜œÛ>̜ÀÊ܈ÊLi¶»
Gregg Williams
(Byte, February 1984)
“Macintosh is going to be
Apple’s next milestone product
in the industry—the Apple II
being the first one in 1977, the
IBM Personal Computer being
the second industry milestone
in 1981, and Macintosh being
the third industry milestone in
1984.”
Steve Jobs
(Personal Computing, April 1984)
115
The Mac Meets the Press
Computer & Electronics
ºiëˆÌiÊQ̅iʜ“ˆÃȜ˜ÃʜvÊVœœÀÊ>˜`Ê>Ê«>À>iÊ«œÀÌR]Ê>Vˆ˜ÌœÃ…ʈÃÊ
>˜Êˆ“«ÀiÃÈÛiÊ«Àœ`ÕVÌÊ>˜`ÊܜÀ̅ÞʜvÊÌ>Žˆ˜}Ê̅iʼiÃÇÌÀ>Ûii`½ÊÀœ>`°Ê
««>Ài˜ÌÞ]ʓÕV…ÊœvÊ««i½ÃÊvÕÌÕÀiÊ`i«i˜`Ãʜ˜Ê>Vˆ˜ÌœÃ…]ÊÜʈÌÃÊÃÕVViÃÃÊ
œÀÊv>ˆÕÀiÊ܈ÊÌÀՏÞʓ>Žiʼ>Ê̅iÊ`ˆvviÀi˜Vi°½»
Vanessa Schnatmeier
(Computer & Electronics, March 1984)
Creative Computing
º˜ÊˆÌÃÊVÕÀÀi˜ÌÊvœÀ“]Ê̅iÊ>Vˆ˜ÌœÃ…ʈÃÊ̅iÊ`ˆÃ̈i`Êi“Lœ`ˆ“i˜ÌʜvÊ>Ê
«Àœ“ˆÃi\Ê̅>ÌÊÜvÌÜ>ÀiÊV>˜ÊLiʈ˜ÌՈ̈ÛiÞÊi>ÃÞÊ̜ÊÕÃi]Ê܅ˆiÊÀi“>ˆ˜ˆ˜}ʍÕÃÌÊ
>ÃÊ«œÜiÀvՏÊ>ÃÊ>˜Þ̅ˆ˜}ÊiÃiÊ>ÀœÕ˜`oÊÌÊŜՏ`ÊLiʜLۈœÕÃÊ̜ÊޜÕʘœÜÊ
̅>ÌÊ̅iÊ>VÊ`œiÃÊÀi«ÀiÃi˜ÌÊ>ÊÈ}˜ˆwV>˜ÌÊLÀi>ŽÌ…ÀœÕ}…]ÊLœÌ…ʈ˜Ê…>À`Ü>ÀiÊ
>˜`ʈ˜ÊÜvÌÜ>Ài°ÊÌÊŜՏ`Ê>ÃœÊLiÊVi>ÀÊ̅>ÌÊ̅iÊÌÀÕiÊVœ˜ViÀ˜ÊˆÃÊ܅i̅iÀÊ
̅iʓ>V…ˆ˜iÊ܈ÊˆÛiÊÕ«Ê̜ʈÌÃÊ՘`i˜ˆ>LiÊ«Àœ“ˆÃi°Êˆ˜i°ÊÌʈÃʘœÜÊ̈“iÊ
̜ʏ>ÞʜÕÌÊ̅iʼL>`ð½
UÊ /…iÊ>Vˆ˜ÌœÃ…Ê`œiÃʘœÌʅ>ÛiÊi˜œÕ}…Ê,°
UÊ -ˆ˜}iʓˆVÀœyœ««ÞÊÃ̜À>}iʈÃÊϜÜÊ>˜`ʈ˜>`iµÕ>Ìi°
UÊ /…iÀiÊ >ÀiÊ ˜œÊ ˆ˜ÌiÀ˜>Ê iÝ«>˜Ãˆœ˜Ê ϜÌÃÊ œÀÊ iÝÌiÀ˜>Ê iÝ«>˜Ãˆœ˜Ê
LÕÃÃið
UÊÊ>V7ÀˆÌiʅ>ÃÊܓiÊÃiÛiÀiʏˆ“ˆÌ>̈œ˜Ã°
UÊ /…iÊÃÞÃÌi“ʈÃʓœ˜œV…Àœ“iʜ˜Þ°
UÊÊ-‡"-ÊVœ“«>̈LˆˆÌÞʈÃÊÀՏi`ʜÕÌ°
UÊ /…iÊ>Vˆ˜ÌœÃ…Ê܈Ê˜œÌʓՏ̈Ì>ΰ
UÊ 9œÕÊV>˜½ÌÊÕÃiÊ>Ê>VÊ>Ü>ÞÊvÀœ“Ê>Ê`iΰ
UÊÊ>V*>ˆ˜Ìʅ>ÃÊ>˜Êi>ÃiÊÈâiʏˆ“ˆÌ>̈œ˜°
UÊ œÀ}iÌÊ>LœÕÌÊiÝÌiÀ˜>Êۈ`iœ°
UÊ >Vˆ˜ÌœÃ…ÊÜvÌÜ>ÀiÊ`iÛiœ«“i˜ÌʈÃÊ>˜Êˆ˜ÛœÛi`Ê«ÀœViÃð
“The next generation of
interesting software will be done
on Macintosh, not the IBM PC.”
Microsoft chairman Bill Gates
(BusinessWeek, November 26, 1984)
“Anybody who could write a
good application on the 128K
Mac deserves a medal.”
Bill Gates
116
ºÊȓ«ÞÊܜ˜`iÀʈvÊ̅ˆÃÊÃÌ>˜`>À`ÊV>˜ÊLiÊÕ«…i`°Ê/…iÊ̅œÕ}…ÌÊwÀÃÌÊ
œVVÕÀÀi`Ê̜ʓiÊ>ÃÊÊ«>Þi`Ê>ÀœÕ˜`Ê܈̅ʈVÀœÃœvÌÊ-
°ÊÊ-
Ê«Àœ}À>“Ê
À՘˜ˆ˜}ʜ˜Ê̅iÊ>VʏœœŽÃÊÛiÀÞʓÕV…ʏˆŽiÊ>Ê-
Ê«Àœ}À>“ÊÀ՘˜ˆ˜}ʜ˜Ê>˜ÞÊ
œÌ…iÀʓ>V…ˆ˜i]ÊiÝVi«ÌÊvœÀʈÌÃÊ܈˜`œÜðÊ7ˆÌ…œÕÌÊ̅iʈVœ˜É܈˜`œÜɓi˜ÕÊ
ÅiÃ]Ê̅iÊ>VʈÃÊÀi`ÕVi`Ê̜Ê>ÊÀ>̅iÀÊ>ÛiÀ>}iʓ>V…ˆ˜i°
ºÌÊ ˆÃÊ Õ«Ê ÌœÊ Ì>i˜Ìi`Ê «Àœ}À>““iÀÃÊ ÌœÊ “>ŽiÊ Ì…iÊ “œÃÌÊ œvÊ >Vˆ˜ÌœÃ…Ê
,"ʈ˜ÊiÛiÀÞÊ«Àœ}À>“Ê̅iÞÊ`iÛiœ«°Ê7ˆÌ…ʈÌÊ̅iÞÊV>˜Ê“iiÌÊ̅iÊ>“LˆÌˆœÕÃÊ
«Àœ“ˆÃiÊ̅>ÌʈÃÊ̅iÊ««iÊ>Vˆ˜ÌœÃ…°Ê"̅iÀ܈ÃiÊ̅iÊ>Vʓ>ÞʘiÛiÀÊ`iÛiœ«Ê
̅iÊÃÌ>ވ˜}Ê«œÜiÀʈÌʘii`ð
º7iÊ>ÀiÊÃ̈ÊµÕˆÌiÊܓiÊ`ˆÃÌ>˜ViÊvÀœ“Ê̅iʈ`i>Ê“>V…ˆ˜iʏ>˜Ê>ÞÊ
i˜ÛˆÃˆœ˜i`ÊL>VŽÊˆ˜Ê£™Ç£Ê>˜`ÊV…ÀˆÃÌi˜i`Ê̅iʼޘ>LœœŽ°½Ê/…ˆÃʈÃÊ>ÊVœ“«ÕÌiÀÊ
̅iÊÈâiʜvÊ>ÊQ/>˜`ÞRʜ`iÊ£ääÊ܈̅Ê̅iÊ«œÜiÀʜvÊ>ʅ՘`Ài`Ê>VðʘÊ>Ê
ÀiVi˜Ìʈ˜ÌiÀۈiÜ]ʅiÊÀ>̅iÀÊVޘˆV>ÞÊ«Ài`ˆVÌi`Ê̅>ÌʈÌÊܜՏ`ÊLiÊ̅iÊ>«>˜iÃiÊ
܅œÊܜՏ`ʓ>ŽiÊ̅iÊޘ>LœœŽÊ>ÊÀi>ˆÌÞ°ÊiÊ̜`ʏi˜ÊÕÀœÊœvÊ-Ì°Ê>VÊ
“>}>∘iÊ̅>ÌÊ̅iÊ>Vˆ˜ÌœÃ…ÊÜ>Ãʈ˜Ê«œˆ˜ÌʜvÊv>VÌʼ˜œÊLˆ}Ê`i>°½»
Mac Models Timeline
Mac Models Timeline
˜Ê ̅iÊ ˆ˜v>˜VÞÊ œvÊ Ì…iÊ >VÊ “>ÀŽiÌ]Ê Vœ˜ÃՓiÀÃ]Ê Vœ“«ï̜ÀÃ]Ê >˜`Ê
Vœ““i˜Ì>̜ÀÃÊÜ>ˆÌi`Êi>}iÀÞÊvœÀÊi>V…ʘiÜÊ«Àœ`ÕVÌÊ>˜˜œÕ˜Vi“i˜ÌÊvÀœ“Ê
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/…iÊ x£ÓÊ >VÊ `ˆ`˜½ÌÊ Ã…ˆ«Ê ՘̈Ê iˆ}…ÌÊ “œ˜Ì…ÃÊ >vÌiÀÊ Ì…iÊ œÀˆ}ˆ˜>Ê
ˆ˜ÌÀœ`ÕV̈œ˜]Ê>˜`Ê̅iÊ>VÊ*ÕÃÊܜՏ`˜½Ìʓ>ŽiʈÌÊ̜ʓ>ÀŽiÌÊ՘̈Ê£™nÈ°Ê
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Mac unit sales (bars, left axis, in millions)
Installed base (line, right axis, in millions)
5
60
4
50
40
3
30
2
20
1
10
0
0
84
86
88
90
92
94
96
98
00
02
“We were too tired, too
arrogant, too stupid, I don’t
know what.”
Apple evangelist Guy Kawasaki,
explaining why Apple took so long to
fix some of the early Mac’s speed and
memory problems
“We thought: It’s there, it’s
beautiful, it can’t be improved,
we did it. Everyone was burnt
out and we wanted to get the
hell out of there. Had we stayed
and kept the energy up and
not mistakenly thought we were
done, we could have changed
Apple’s future. I firmly believe
that Gates would only be worth
a billion instead of $4 billion
today had we all kept our act
together and stuck to the Mac.”
Apple Fellow Steve P. Capps
(MacWEEK, September 19, 1994)
121
Mac Models Timeline
Mac
Models Timeline 1984
Jan
Mac 128K
Feb
Mar
The original Macintosh had only 128K of
memory, a 400K 3.5-inch disk drive, and
a WYSIWYG monochrome monitor.
Apr
May
Jun
Jul
Aug
Sep
Oct
The Mac 512K (shown here with an
optional external 3.5-inch disk drive) was
nicknamed “Fat Mac” because it came
standard with four times the memory of
the original.
122
Nov
Dec
Mac 512K
Why 1985 Wasn’t like 1984
Why 1985 Wasn’t like 1984
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Trying to woo the business market, Apple concocted the concept of “The
Macintosh Office,” which connected Macs with LaserWriters and a nonexistent
file server.
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143
Why 1985 Wasn’t like 1984
Director Tony Scott reportedly found
fault with the sky over England and
flew to Sweden to find just the right
clouds to include in the commercial’s
background.
Courtesy of Steve Hayden
Lemmings likened DOS users to mindless rodents committing mass suicide.
Copywriter Steve Hayden warned Apple it
risked biting “the karmic weenie.”
144
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Telecom Troubles
Telecom Troubles
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LՏiÌ«ÀœœvÊ`i>iÀÊÀiviÀi˜ViÊ>˜`ÊÃÕ««œÀÌÊÃÞÃÌi“]Ê܈̅ˆ˜ÊÜiiŽÃʜvʈÌÃʏ>՘V…Ê
ˆÌÊLiV>“iÊ̅iÊ`iÊv>V̜Êi“>ˆÊÃÞÃÌi“ÊvœÀÊ««iÊ>˜`ʈÌÃÊ`i>iÀðʏ̅œÕ}…ʈÌÊ
LœÀiÊ««i½Ãʘ>“i]ʈÌÊÜ>ÃÊ>VÌÕ>Þʓ>ˆ˜Ì>ˆ˜i`Ê>˜`ʜ«iÀ>Ìi`Ê>ÃÊ>ʍœˆ˜ÌÊivvœÀÌÊ
œvÊ««iÊ>˜`Ê°ÊÃʈÌÊÜ>ÃÊÀii>Ãi`Ê̜ÊiÝÌiÀ˜>ÊVÕÃ̜“iÀÃʜÛiÀÊ̅iÊÞi>ÀÃ]Ê
ÕÃiÀÃÊÜiÀiÊV…>À}i`ÊvÀœ“Êf£äÊ̜Êf£ääÊ«iÀʅœÕÀ]Ê`i«i˜`ˆ˜}ʜ˜Ê̅iÊÃiÀۈViÊ
̅iÞÊÀiViˆÛi`Ê>˜`Ê̅iˆÀÊVœÕ˜ÌÀÞʜvÊÀiÈ`i˜Vi°ÊivœÀiʏœ˜}]Ê««iÊÜ>ÃÊ«>ވ˜}Ê
AppleLink was Apple’s internal online service, but it was actually run by
GE. AppleLink successfully used the Mac’s desktop metaphor to make
telecommunications simple.
On August 28, 1991, the first true
email message from space was
sent by the crew of the space shuttle
STS-43 Atlantis using a Mac Portable
and specially configured AppleLink
software. The shuttle crew’s message:
“Hello Earth! Greetings from the STS43 Crew. This is the first AppleLink
from space. Having a GREAT time,
wish you were here,...send cyro and
RCS! Hasta la vista, baby,...we’ll be
back!”
147
Telecom Troubles
Courtesy of Trevor Griffiths and Elaine Sweeney
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ÕÃÌÊ̅œÃiÊÕȘ}Ê««iÊVœ“«ÕÌiÀð
AppleLink—Personal Edition came out first on the Apple II and was abandoned
before the Mac version shipped.
148
The Remarkable Rise and Fabulous Fall of John Sculley
The Remarkable Rise
and Fabulous Fall of John Sculley
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“>Žˆ˜}Ê fÓxä]äääÊ >Ê Þi>ÀÊ ˆ˜Ê
John Sculley came to Apple from Pepsi,
Ã>>ÀÞÊ >˜`Ê Lœ˜ÕÃiðÊ/œÊ i˜ÌˆViÊ
where he mastered marketing.
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ϡ
Among the people approached to
become Apple’s CEO was Admiral
Bobby Ray Inman, deputy director
of the CIA until June 1982. But
Inman rightly concluded, “They
needed someone with a marketing
background and I didn’t have it.”
“Think of Silicon Valley as
Florence in the Renaissance. It’s
the place where anybody who is
excited about doing something
to change the world wants to
be.”
Heidrick & Struggles headhunter
Gerry Roche, urging Sculley to accept
Apple’s offer
(Playboy, September 1987)
Sculley was once married to the
stepdaughter of Pepsi’s chairman,
Donald Kendall.
153
The Remarkable Rise and Fabulous Fall of John Sculley
“Do you want to spend the rest
of your life selling sugared water
or do you want a chance to
change the world?”
Steve Jobs, trying to convince Sculley
to quit Pepsi and join Apple
(Odyssey, p. 90)
When he moved to California in 1983,
Sculley purchased a $1.9 million,
63-year-old, five-bedroom English
Tudor house at 1224 Cañada Road
in the tony community of Woodside.
Sculley renamed it the Blackburn
Valley Morgan compound, Blackburn
being a Sculley family name and
Morgan the type of horse his third wife
Leezy (Lee Adams) liked to raise.
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“Some naysayers claim the
partnership will never last—that
intense, mercurial Jobs, who
owns nearly 12 percent of Apple
stock (worth almost $200 million
at current prices), will drive
intense, focused Sculley back
East.”
(Fortune, February 20, 1984)
“Apple has one leader, Steve
and me.”
John Sculley, at a private dinner
celebrating his first year at Apple
154
“The Dynamic Duo,” Steve Jobs and John Sculley, at the Mac’s introduction in
1984. Their smiles would soon turn to frowns as Mac sales dropped off.
Windows: What Went Wrong?
Windows: What Went Wrong?
Courtesy of Microsoft Corp.
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Bill Gates dictated that Apple kill MacBASIC, which he later called “one of the
stupidest deals…ever.” Negotiating a Windows license brought redemption.
169
Windows: What Went Wrong?
At Microsoft, Jeff Harbors gave the
Macintosh the code name Sand, in
reference to Steve Jobs’ grandiose
vision of Apple’s Mac factory
consuming raw sand at one end of
the highly automated line, turning it
into silicon, and eventually churning
out finished computers at the other
end. Serendipitously, the code name
also stood for Steve’s Amazing New
Device.
“I don’t know what is going
to happen to Windows, or to
VisiOn, but IBM’s windowing
package will be the standard.
We hear it is not that great, but it
will be the standard.”
Steve Jobs,
betting on the wrong horse
(Personal Computing, April 1984)
170
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The Fallen Apple
The Fallen Apple
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“In five years or less, computers
will probably be capable of
recognizing handwriting. We
will have taken one step forward
in understanding the mystery
of shapes recognition. No one
knows today what intellectual
operation or algorithm allows
us to reliably recognize a face,
a voice, someone’s handwriting.
There are complex shapes that
we can describe fairly completely
but without being able to
recognize them definitely.”
Senior VP of R&D
Jean-Louis Gassée, writing in 1985
“I suspect Newton is used as a
name because the device can
easily be dropped (and probably
as easily broken) thus confirming
certain precepts of gravitation
developed by Isaac Newton.”
Industry columnist John C. Dvorak
183
As an Apple Fellow working in the
Newton group, Steve Capps tooled
around Cupertino in a red Honda
Civic SI bearing the vanity plate
“NOOTOON.”
184
Courtesy of Microsoft Corp. and Michael Moore
The Fallen Apple
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“It is hard to think that a $2
billion company with 4,300-plus
people couldn’t compete with six
people in blue jeans.”
Steve Jobs, on Apple’s suit following
his resignation
(Newsweek, September 30, 1985)
For the first four months of its life,
NeXT operated out of Jobs’ Woodside
mansion at 460 Mountain Home Road
(the iron-gated entrance is actually
on Robles Drive). The first formal
offices were in the Stanford University
Industrial Park on Deer Park Road in
Palo Alto, not far from Xerox PARC.
The company eventually moved to an
office complex in Redwood City, where
it remained until Apple purchased it
in 1996.
207
What Jobs Did NeXT
At the time he left Apple, Jobs owned
roughly 6.5 million shares of stock
(11.3 percent of the company). Jobs
immediately began liquidating his
massive holdings at what would prove
to be fire-sale prices. According to SEC
records, Jobs dumped 4.028 million
shares in 1985 for $70.5 million. By
February 1986, Jobs was completely
divested (he retained one share so that
he would still receive Apple’s annual
reports). Assuming that he managed
to sell at the highest price realized
by February, the most he could have
grossed was $135 million. Jobs’
timing couldn’t have been worse, since
Apple’s stock has never again traded
as cheaply as when he was selling.
To be sure, Jobs needed some seed
money to buy Pixar and fund NeXT,
but he could have made do with the
proceeds from selling a small fraction
of his Apple position (Pixar cost $10
million and Jobs’ initial investment
in NeXT was just $7 million). Jobs’
assertion that he was selling because
he had lost faith in Apple’s executives
was certainly valid. However, had he
held on for just five more years, his
holding would have been worth $952
million when the stock peaked on April
12, 1991. Including dividends, Jobs
left over $836 million on the table
when he cashed out of Apple.
“He told me that we’re going to
hit one out of the ball park.”
Steve Jobs, on Perot’s investment
(Accidental Millionaire, p. 214)
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The Pixar Phenomenon
The Pixar Phenomenon
Courtesy of Alvy Ray Smith
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Early Pixar employees, from left to right: Loren Carpenter, Bill Reeves, Ed
Catmull, Alvy Ray Smith, Rob Cook, John Lasseter, Eben Ostby, David Salesin,
Craig Good, and Sam Leffler.
217
The Pixar Phenomenon
When the computer division of
Lucasfilm was being shopped around,
it needed a more manageable name.
Smith pointed out that everyone was
starting to associate the name of
their digital optical printer, the Pixar,
with the division that created it. In the
absence of any strong alternatives,
they decided to name themselves Pixar
(www.pixar.com).
218
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DR-DOS was created by Digital
Research Inc. (DRI), which had been
sued by Apple in 1985 after it released
GEM Desktop, an operating system
that grafted a Mac-like interface
onto PC clones. Too small to fight
Apple, DRI settled the suit by altering
its interface, and it was eventually
acquired by Novell.
After working together on Star Trek
and QuickTime, Fred Monroe and
Fred Huxham eventually went on to
form fredlabs inc. (www.fredlabs.com)
in San Francisco. At the Macworld
Expo in January 1997, fredlabs
garnered considerable attention for
its VirtualMac, which allowed users to
run Mac applications within the BeOS
running on a Power Mac.
229
Courtesy of Microsoft Corp.
The Star Trek Saga
Manager of Mac software architecture
Roger Heinen, when asked in March
1992 about making System 7 run on
Intel processors
230
Will Mosgrove
“All the MBAs in the world can’t
convince us it’s a good model.”
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°Ê >}i]Ê
manager of Mac software architecture
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Microsoft.
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wÀ“ÊܜՏ`ʅ>ÛiÊVi>Ãi`Ê̜Êi݈ÃÌ°
“I’m a Mike Spindler fan. In my
personal opinion, he’s clearly
CEO material, and maybe the
board brought him in for that.”
Jean-Louis Gassée, upon
announcing his intention to leave
Apple
(San Jose Mercury News,
March 3, 1990)
“We used to have a joke that
you don’t sit in the first ten rows
at a Spindler speech, because
you might drown from all the
sweat and spit.”
Apple sales manager John Ziel
Almost since the moment he arrived in Cupertino, Michael Spindler tried to
merge Apple with a variety of different corporations.
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“This isn’t anything new.
Since 1986, we held serious
discussions with DEC, Kodak,
Sony, Sun, Compaq, IBM, and a
few other companies I’d rather
not name now. They were very
thoughtful discussions. We
considered everything from ‘Let’s
trade technology’ to ‘Let’s put
the companies together’ with
each one of them.”
Chairman Mike Markkula,
on 1996 merger speculation
233
Courtesy of Sun Microsystems
From Diesel to Doctor
“I am not available or interested
in being CEO of IBM.”
John Sculley
(The Wall Street Journal, March 11,
1993)
234
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Windows wouldn’t exist today.”
Robertson Stephens analyst
Jon van Bronkhorst
(San Francisco Chronicle,
August 8, 1994)
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The Clone Quandary
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“When the Mac came out in
1984, we wrote letters to Sculley,
and we told him who to go to
at HP and who to go to at AT&T
to license the machine because
we’d really bet our future on the
Mac. We stopped doing DOS
application development and
did all our work in the graphical
environment, so we were very
worried in 1985 when Mac sales
slowed down actually from the
first year and we were trying
to make all these suggestions.
It’s probably too late to make a
licensing program work.”
Microsoft CEO Bill Gates, during a
January 30, 1996, speech
246
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Courtesy of HarperBusiness and David Powers
The Doctor’s Strong Medicine
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to restore Apple to health before being
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“Apple is a lot like Italy. It’s a
highly creative company, but
with that comes chaos.”
Marketing executive Regis McKenna
“If [Apple’s board] had called
me, I would have recommended
that Amelio was absolutely the
wrong man for the job. He left
National in a disaster.”
Former National Semiconductor CEO
Charles Sporck
“You know, I’ve got a plan
that could rescue Apple. I can’t
say any more than that it’s the
perfect product and the perfect
strategy for Apple. But nobody
there will listen to me.”
NeXT and Pixar CEO Steve Jobs
(Fortune, September 18, 1995)
263
The Doctor’s Strong Medicine
“The cure for Apple is not costcutting. The cure for Apple is to
innovate its way out of its current
predicament.”
NeXT and Pixar CEO Steve Jobs
“It’s nice to work for a CEO
whose idea of technology is not
how to put 64 ounces of sugar
water in a plastic bottle.”
Apple Fellow Guy Kawasaki,
praising Amelio while dissing Sculley
“I don’t think anyone can
manage Apple.”
Former Apple CEO John Sculley,
on the mess Amelio inherited
264
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The Copland Crisis
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Courtesy of Exodus Communications, Inc.
The Copland Crisis
“I still have not met anyone
at Apple who was working on
Gershwin. Which gave me a clue
that it’s not soup yet.”
Apple’s chief technology officer
Ellen Hancock, at the MacWEEK
MVB conference on January 6, 1997
After leaving AT&T Labs, David Nagel
joined the board of PalmSource
(www.palmsource.com) and later
became president and CEO.
273
The Copland Crisis
“It’s not like wine; it doesn’t age
very well.”
Apple CEO Gil Amelio, on Copland
274
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Vœ˜Ìˆ˜ÕœÕÏÞÊ Li}ˆ˜˜ˆ˜}Ê ÜˆÌ…Ê
̅iÊ >˜Õ>ÀÞÊ £™™ÇÊ Àii>ÃiÊ œvÊ
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Ž˜œÜ˜Ê>ÃÊ/i“«œÊ­>VÊ"-Ên°ä®Ê
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“Տ̈̅Ài>`ˆ˜}]Ê ÌÜœÊ vi>ÌÕÀiÃÊ
Several Copland features, including the ̅>ÌÊ ˆ“«ÀœÛiÊ «iÀvœÀ“>˜ViÊ LÞÊ
platinum appearance, tabbed windows,
iÌ̈˜}Ê̅iʜ«iÀ>̈˜}ÊÃÞÃÌi“Ê`œÊ
and multitasking Finder, shown here in
“Տ̈«iÊÌ>ÎÃÊ>Ìʜ˜Vi°
an early Copland screen shot, survived
ÞÊ Õ}ÕÃÌ]Ê ««i½ÃÊ ˜iÜÊ
in Mac OS 8.
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Happily Ever Apple?
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Steve Jobs initially refused to accept the
iÊ viÌÊ ˆÌÊ Ü>ÃÊ LiÌÌiÀÊ ÌœÊ Õ“«Ê
board’s request to take Gil Amelio’s place
̅>˜ÊLiÊ«ÕÅi`°
as CEO and chairman of Apple, but he
"˜Ê Õ}ÕÃÌÊ È]Ê >ÌÊ Ì…iÊ
agreed to run the place while a new CEO >VܜÀ`ÊÝ«œÊˆ˜ÊœÃ̜˜]ʜLÃÊ
was sought.
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œÕÃÌiÀʜvÊiÛiÀÞÊ««iʏi>`iÀ\ʈŽiÊ-VœÌÌ]Ê-ÌiÛiʜLÃ]ʜ…˜Ê-VՏiÞ]ʈŽiÊ
“If I were running Apple, I would
milk the Macintosh for all it’s
worth—and get busy on the next
great thing. The PC wars are
over. Done. Microsoft won a
long time ago.”
Steve Jobs
(Fortune, February 19, 1996)
“Right now the job is so difficult,
it would require a bisexual,
blond Japanese who is 25
years old and has 15 years’
experience!”
Be CEO Jean-Louis Gassée,
describing the ideal CEO candidate
(Forbes, August 11, 1997)
“Apple is a company that still
has opportunity written all over
it. But you’d need to recruit God
to get it done.”
Western Digital CEO
Charles Haggerty
(Forbes, August 11, 1997)
“Apple desperately needs a
great day-to-day manager,
visionary, leader and politician.
The only person who’s qualified
to run this company was
crucified 2,000 years ago.”
California Technology Stock Letter
editor Michael Murphy
(San Francisco Chronicle,
September 11, 1997)
289
Happily Ever Apple?
Since leaving Apple’s board, Mike
Markkula has kept himself very
busy. He’s vice chairman of Echelon
(www.echelon.com), a distributed
intelligence control systems firm he
founded in 1988 to extend the power
of networking to everyday devices.
Markkula is also a director of the
San Jose Jet Center (www.sjjc.com),
a private jet services facility located
at Mineta San Jose International
Airport. In addition, he is the owner
of San Jose–based ACM Aviation
(www.acmaviation.com), which
specializes in aircraft management
and private charter. Markkula also
owns Rana Creek Habitat Restoration
(www.ranacreek.com), which
specializes in all aspects of native
plants and grasses. Finally, he and his
wife provided the endowment for the
Markkula Center for Applied Ethics at
Santa Clara University, where he has
been a trustee since 1989. On June
12, 2003, he was elected chairman of
the board of trustees.
Almost immediately upon assuming
control of Apple, Amelio had tried to
patch up relations with Microsoft. One
stumbling block was Apple’s insistence
that Windows 95 violated some of its
patent rights, despite having lost its
look-and-feel lawsuit on August 24,
1993. The two firms attempted to
put that dispute behind them with a
settlement that would allow them to go
from combatants to collaborators, but
Gates refused to grant Amelio the one
concession he desperately wanted:
a commitment to develop Microsoft
Office for Rhapsody.
290
-«ˆ˜`iÀ]Ê>˜`ʈÊ“iˆœ°Ê œÜÊ
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Mike Markkula had been with Apple since
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its incorporation in 1977, but after twenty œLÃÊÜ>ÃʘœÜÊwÀ“Þʈ˜ÊVœ˜ÌÀœÊ
years, Jobs sent him packing.
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