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