1 00:00:01,917 --> 00:00:03,167 [dramatic music] 2 00:00:03,167 --> 00:00:05,542 - [Narrator] 92% of the American population 3 00:00:05,542 --> 00:00:07,000 owns a personal computer. 4 00:00:07,000 --> 00:00:10,250 - I don't think that there is any single innovation 5 00:00:10,250 --> 00:00:13,125 that has propelled mankind forward 6 00:00:13,125 --> 00:00:15,958 in the way the personal computer has done. 7 00:00:15,958 --> 00:00:21,042 - We have smartphones, we have the iPod, we have computers 8 00:00:21,042 --> 00:00:23,625 that you can seamlessly create art on. 9 00:00:24,875 --> 00:00:26,792 - [Narrator] But just 50 years ago, 10 00:00:26,792 --> 00:00:29,542 hardly anyone had one in their home. 11 00:00:29,542 --> 00:00:33,875 - Computers are so out of reach for the general public 12 00:00:33,875 --> 00:00:36,250 that they're almost science fiction. 13 00:00:36,250 --> 00:00:39,250 The mainframe room was a refrigerated room 14 00:00:39,250 --> 00:00:43,083 that could only be accessed by men in white lab coats. 15 00:00:43,083 --> 00:00:45,042 - [Narrator] Until two college dropouts 16 00:00:45,042 --> 00:00:47,667 set out to change that from their garage. 17 00:00:47,667 --> 00:00:50,458 - Wozniak knew there was something bigger out there. 18 00:00:50,458 --> 00:00:53,958 - He immediately started making plans for his own computer. 19 00:00:53,958 --> 00:00:55,625 - This is what I've been dreaming of. 20 00:00:55,625 --> 00:01:00,042 - Steve Jobs, he was obsessed with taking futuristic ideas 21 00:01:00,042 --> 00:01:02,542 and making them accessible to the public. 22 00:01:02,542 --> 00:01:04,542 - [Narrator] But to bring their computers to the world, 23 00:01:04,542 --> 00:01:06,708 they must form an unlikely alliance. 24 00:01:06,708 --> 00:01:10,125 - Steve Jobs needs software for his new Apple computer. 25 00:01:10,125 --> 00:01:13,083 - Jobs and Gates had an unusual relationship. 26 00:01:13,083 --> 00:01:15,708 Each of them had something the other coveted. 27 00:01:15,708 --> 00:01:18,875 - [Narrator] Until it blows up into a bitter rivalry. 28 00:01:18,875 --> 00:01:20,375 - You ripped us off. 29 00:01:20,375 --> 00:01:23,083 You stole the Macintosh interface. 30 00:01:23,083 --> 00:01:25,208 - That kind of was the ultimate rift 31 00:01:25,208 --> 00:01:29,125 in their relationship for a very, very, very long time. 32 00:01:29,125 --> 00:01:30,708 - [Narrator] Their battle gives rise 33 00:01:30,708 --> 00:01:33,250 to two of the biggest brands in history. 34 00:01:33,250 --> 00:01:36,375 - Apple really created its own ecosystem upon itself. 35 00:01:36,375 --> 00:01:38,750 - Bill Gates somehow created this entire 36 00:01:38,750 --> 00:01:41,708 billion-dollar global company just by writing code. 37 00:01:41,708 --> 00:01:44,750 - [Narrator] And some of the most iconic products 38 00:01:44,750 --> 00:01:46,042 the world has ever seen. 39 00:01:46,042 --> 00:01:48,583 - I vividly remember the release of the iMac. 40 00:01:48,583 --> 00:01:50,375 I didn't know computers could look cool 41 00:01:50,375 --> 00:01:52,917 and fun and approachable. 42 00:01:52,917 --> 00:01:55,250 - The iPhone is 100% 43 00:01:55,250 --> 00:01:58,167 Apple's most iconic product ever. 44 00:01:59,042 --> 00:02:00,667 - Steve. 45 00:02:00,667 --> 00:02:02,375 - [Steve] Apple's gonna have to make our own software now. 46 00:02:02,375 --> 00:02:03,625 - Steve. 47 00:02:03,625 --> 00:02:04,875 - And you can be damn sure you'll wish we hadn't. 48 00:02:04,875 --> 00:02:08,375 - Steve, Steve! 49 00:02:08,375 --> 00:02:10,125 - Steve Jobs, Bill Gates. 50 00:02:10,125 --> 00:02:12,542 Did they push each other to further places? 51 00:02:13,583 --> 00:02:14,375 Absolutely. 52 00:02:16,000 --> 00:02:17,167 - Let's go. 53 00:02:19,167 --> 00:02:22,083 [dramatic music] 54 00:02:40,042 --> 00:02:42,042 - [Narrator] Prior to the 1970s, 55 00:02:42,042 --> 00:02:44,875 most computers were the size of a living room, 56 00:02:44,875 --> 00:02:49,292 highly complex and often took dozens of people to operate. 57 00:02:49,292 --> 00:02:52,375 - The government used them, huge corporations used them 58 00:02:52,375 --> 00:02:54,542 and it was for payroll and accounting 59 00:02:54,542 --> 00:02:56,625 and really large-scale projects. 60 00:02:56,625 --> 00:02:59,375 - If you were lucky enough to work in a big corporation, 61 00:02:59,375 --> 00:03:02,458 you were not allowed in the mainframe room. 62 00:03:03,333 --> 00:03:04,708 - [Narrator] But this changes 63 00:03:04,708 --> 00:03:07,792 when one company invents something groundbreaking, 64 00:03:07,792 --> 00:03:09,333 the microchip. 65 00:03:09,333 --> 00:03:13,792 - So in the early 1970s, Intel developed a microprocessor 66 00:03:13,792 --> 00:03:16,708 which basically put some of the brains 67 00:03:16,708 --> 00:03:20,750 of what we know of as a computer now on a single chip. 68 00:03:22,333 --> 00:03:24,208 - [Narrator] Making a much smaller version of a computer 69 00:03:24,208 --> 00:03:25,917 now possible. 70 00:03:25,917 --> 00:03:30,208 - So a company in Albuquerque, New Mexico called MITS 71 00:03:30,208 --> 00:03:32,750 got a hold of these Intel microprocessors 72 00:03:32,750 --> 00:03:36,958 and realized that they could create a micro-computer kit. 73 00:03:36,958 --> 00:03:40,250 This would be the Altair 8800. 74 00:03:40,250 --> 00:03:41,833 - [Narrator] But the primitive Altair 75 00:03:41,833 --> 00:03:45,042 is far from what we think of as a computer today. 76 00:03:45,042 --> 00:03:48,875 - If you had an Altair, you had to learn how to assemble it. 77 00:03:48,875 --> 00:03:52,500 You also had to know something about the programming. 78 00:03:52,500 --> 00:03:57,375 - So it was a real challenge to get it to do anything. 79 00:03:57,375 --> 00:03:59,708 It couldn't do things like word processing 80 00:03:59,708 --> 00:04:00,667 or things like that. 81 00:04:02,167 --> 00:04:03,917 [tense music] 82 00:04:04,292 --> 00:04:06,708 - [Narrator] One computer hobbyist sees potential 83 00:04:06,708 --> 00:04:09,167 and is inspired to make his own easier-to-use version. 84 00:04:09,167 --> 00:04:10,500 [keyboard clacking] 85 00:04:10,500 --> 00:04:13,125 His name is Steve Wozniak. 86 00:04:13,125 --> 00:04:15,042 - Wozniak grows up in this climate 87 00:04:15,042 --> 00:04:18,250 of tremendous intellectual energy 88 00:04:18,250 --> 00:04:20,375 around engineering and electronics. 89 00:04:20,375 --> 00:04:22,375 His father worked at Lockheed Martin. 90 00:04:22,375 --> 00:04:23,750 His earliest memories 91 00:04:23,750 --> 00:04:25,917 were sitting on a workbench with his dad 92 00:04:25,917 --> 00:04:28,208 watching him use an oscilloscope. 93 00:04:28,208 --> 00:04:30,375 [keyboard clacking] 94 00:04:30,375 --> 00:04:33,625 - So in 1975, Wozniak is working for Hewlett-Packard. 95 00:04:33,625 --> 00:04:37,000 He's actually helping design calculators, believe it or not, 96 00:04:37,000 --> 00:04:38,458 and he loved his job, 97 00:04:38,458 --> 00:04:40,042 but he knew there was something bigger out there. 98 00:04:40,042 --> 00:04:41,667 - And you know, 99 00:04:41,667 --> 00:04:44,833 he immediately started making plans for his own computer. 100 00:04:47,375 --> 00:04:49,292 - [Narrator] As Wozniak begins tinkering, 101 00:04:49,292 --> 00:04:51,250 he gives his friend a sneak peek. 102 00:04:53,500 --> 00:04:56,458 His friend's name is Steve Jobs. 103 00:04:57,708 --> 00:05:01,125 - Jobs and Woz interned together as Hewlett-Packard 104 00:05:01,125 --> 00:05:04,250 and Jobs actually went on to design computer games 105 00:05:04,250 --> 00:05:05,583 for Atari. 106 00:05:06,708 --> 00:05:09,250 - This computer wasn't really what we think of a computer. 107 00:05:09,250 --> 00:05:11,083 It wasn't even something like the Altair, 108 00:05:11,083 --> 00:05:12,708 which came in a case. 109 00:05:12,708 --> 00:05:15,083 It was a circuit board and you would take that circuit board 110 00:05:15,083 --> 00:05:18,625 and you'll be able to hook up a keyboard and a monitor. 111 00:05:19,583 --> 00:05:20,625 - [Narrator] But it can do something 112 00:05:20,625 --> 00:05:23,250 that Jobs has never seen before. 113 00:05:23,250 --> 00:05:24,875 - You just type a word on the keyboard 114 00:05:24,875 --> 00:05:28,167 and it shows up on the monitor, like so. 115 00:05:28,167 --> 00:05:29,375 - It's hard to imagine now 116 00:05:29,375 --> 00:05:31,667 because computers are just an extension of us. 117 00:05:31,667 --> 00:05:34,750 But at the time it was just mind blowing 118 00:05:34,750 --> 00:05:37,667 to just easily type a word and have it appear on a monitor. 119 00:05:37,667 --> 00:05:41,208 This was nothing short of revolutionary. 120 00:05:41,208 --> 00:05:43,917 - You like it? 121 00:05:43,917 --> 00:05:47,708 - Steve Wozniak has no intention in selling it. 122 00:05:47,708 --> 00:05:51,708 He just did it for fun 'cause he loved it. 123 00:05:51,708 --> 00:05:54,875 - [Narrator] However, Jobs has other ideas. 124 00:05:54,875 --> 00:05:56,917 - Have you shown this to anyone else? 125 00:05:56,917 --> 00:06:00,583 - Jobs really thinks there's a commercial opportunity here. 126 00:06:01,708 --> 00:06:03,542 - [Narrator] The two immediately set up shop 127 00:06:03,542 --> 00:06:05,875 in Jobs' parents' garage 128 00:06:05,875 --> 00:06:08,667 to start their own company selling Wozniak's computer. 129 00:06:08,667 --> 00:06:10,625 - Wozniak wanted to be behind the scenes. 130 00:06:10,625 --> 00:06:13,000 He never wanted to be pushing or selling 131 00:06:13,000 --> 00:06:15,083 and Jobs was the exact opposite. 132 00:06:15,083 --> 00:06:16,000 He was the dreamer. 133 00:06:17,417 --> 00:06:20,625 - [Narrator] But first, they'll need startup capital. 134 00:06:20,625 --> 00:06:24,917 - The legend is that Jobs sold his Volkswagen bus 135 00:06:24,917 --> 00:06:29,625 and Wozniak sold his Hewlett-Packard calculator. 136 00:06:29,625 --> 00:06:32,208 - [Narrator] And a unique company name. 137 00:06:32,208 --> 00:06:33,583 - Around the time 138 00:06:33,583 --> 00:06:34,958 when they were trying to come up with a name, 139 00:06:34,958 --> 00:06:37,750 Steve Jobs had taken a trip to an apple orchard 140 00:06:37,750 --> 00:06:42,417 being into fruit as he was decided let's name it Apple. 141 00:06:42,417 --> 00:06:44,042 - They called it the Apple I. 142 00:06:47,042 --> 00:06:51,500 - [Narrator] In July of 1976, the Apple I goes on sale 143 00:06:51,500 --> 00:06:54,500 for $666.66. 144 00:06:55,667 --> 00:06:57,292 - It's really the first of its kind 145 00:06:57,292 --> 00:07:00,125 to come with these inputs for a keyboard 146 00:07:00,125 --> 00:07:02,417 and an output for a monitor. 147 00:07:02,417 --> 00:07:05,125 - The Apple I was very successful 148 00:07:05,125 --> 00:07:06,750 with tech enthusiasts, 149 00:07:06,750 --> 00:07:09,708 but it wasn't the sort of out-of-the-box machine 150 00:07:09,708 --> 00:07:13,042 that everyday people would wanna buy. 151 00:07:13,042 --> 00:07:16,542 - It was all typing in code. It was very complicated. 152 00:07:16,542 --> 00:07:18,375 I mean, you had to really know your stuff 153 00:07:18,375 --> 00:07:19,875 in order to operate one of these. 154 00:07:19,875 --> 00:07:21,375 You had to get your own keyboard. 155 00:07:21,375 --> 00:07:22,708 You had to come up with your own monitor, 156 00:07:22,708 --> 00:07:25,750 which nine times out of 10 was a TV screen. 157 00:07:25,750 --> 00:07:28,458 So it was not for the average bear. 158 00:07:28,458 --> 00:07:29,833 - Well, the Apple I 159 00:07:29,833 --> 00:07:32,208 was never going to be a giant commercial success. 160 00:07:32,208 --> 00:07:34,083 Its audience was always going to be 161 00:07:34,083 --> 00:07:37,583 people who worked in their basements and soldered things 162 00:07:37,583 --> 00:07:39,167 and wired things up. 163 00:07:40,375 --> 00:07:41,375 - [Narrator] Despite that 164 00:07:41,375 --> 00:07:43,542 Jobs and Wozniak quickly sell out 165 00:07:43,542 --> 00:07:45,708 of their home-built Apple I computers. 166 00:07:45,708 --> 00:07:48,375 - It's such a success with tech enthusiasts 167 00:07:48,375 --> 00:07:50,417 that they know that they have to follow it up 168 00:07:50,417 --> 00:07:52,208 with an even better machine. 169 00:07:52,208 --> 00:07:55,083 [compelling pulsating music] 170 00:07:55,083 --> 00:07:57,875 - So Jobs begins imagining 171 00:07:57,875 --> 00:08:01,042 what a new-and-improved version of the Apple I 172 00:08:01,042 --> 00:08:02,083 would look like. 173 00:08:02,083 --> 00:08:03,708 - He wants them to appeal to customers 174 00:08:03,708 --> 00:08:05,708 who may not be tech savvy 175 00:08:05,708 --> 00:08:08,875 and don't want to have to assemble this themselves. 176 00:08:08,875 --> 00:08:11,625 - [Narrator] With the relative success of the Apple I, 177 00:08:11,625 --> 00:08:14,917 Jobs and Wozniak are able to secure an investment 178 00:08:14,917 --> 00:08:17,042 of $91,000 179 00:08:17,042 --> 00:08:19,792 and a line of business credit for 250,000 180 00:08:19,792 --> 00:08:22,208 to work on creating the Apple II. 181 00:08:22,208 --> 00:08:23,708 - The Apple II, 182 00:08:23,708 --> 00:08:26,958 Jobs wanted to make a real consumer product out of it. 183 00:08:26,958 --> 00:08:30,375 He was perceptive enough to know that in order to do this, 184 00:08:30,375 --> 00:08:32,125 you had to move beyond the geeks, 185 00:08:32,125 --> 00:08:34,042 beyond the hardcore hobbyists 186 00:08:34,042 --> 00:08:36,125 and make something that you could market 187 00:08:36,125 --> 00:08:37,792 to a larger audience. 188 00:08:38,875 --> 00:08:42,458 - It was preloaded with programming language 189 00:08:42,458 --> 00:08:45,542 and it had its keyboard already a part of it, 190 00:08:45,542 --> 00:08:47,417 which was a huge improvement 191 00:08:47,417 --> 00:08:49,708 from having to find a keyboard to plug in. 192 00:08:49,708 --> 00:08:53,792 - So I used a seven megahertz master oscillator 193 00:08:53,792 --> 00:08:58,750 divided by several ratios to get the frequencies needed. 194 00:08:59,583 --> 00:09:01,542 - The Apple II came with color 195 00:09:01,542 --> 00:09:04,042 and that was a very, very big deal at the time. 196 00:09:04,042 --> 00:09:08,875 - Steve Wozniak, he was obsessed with games. 197 00:09:08,875 --> 00:09:11,792 He developed this gaming software called Breakout 198 00:09:11,792 --> 00:09:15,042 and he wanted the Apple II to be able to use it. 199 00:09:15,042 --> 00:09:17,000 That's why it has color graphics, 200 00:09:17,000 --> 00:09:19,917 it has ports for having little paddles. 201 00:09:21,583 --> 00:09:23,542 - It needs a new case. 202 00:09:25,375 --> 00:09:27,875 All that other stuff is great, 203 00:09:27,875 --> 00:09:29,708 but you're trying to get people to invite this 204 00:09:29,708 --> 00:09:31,042 into their homes. 205 00:09:32,042 --> 00:09:35,875 - To Jobs, industrial design was not something 206 00:09:35,875 --> 00:09:38,625 that you just tacked on afterwards. 207 00:09:38,625 --> 00:09:40,792 - Something that was so geeky 208 00:09:40,792 --> 00:09:45,458 and cold, like computer life, that touch, that flavor, 209 00:09:45,458 --> 00:09:48,667 almost like an iconic fashion designer 210 00:09:48,667 --> 00:09:52,125 was instrumental in the Apple we know today. 211 00:09:52,125 --> 00:09:54,917 - It needs to look more like a typewriter, 212 00:09:54,917 --> 00:09:57,292 like it belongs on a desk. 213 00:09:57,292 --> 00:10:00,792 - [Narrator] They compromise on a sleek cream colored case 214 00:10:00,792 --> 00:10:02,250 that's also removable. 215 00:10:03,542 --> 00:10:08,708 And on June 10th, 1977, the Apple II hits the marketplace. 216 00:10:09,292 --> 00:10:11,542 Priced at around $1,300, 217 00:10:11,542 --> 00:10:14,042 it's the equivalent of 7,000 today. 218 00:10:14,042 --> 00:10:16,917 - At the time, the Apple II was a success. 219 00:10:16,917 --> 00:10:19,375 Jobs and Wozniak became the leader 220 00:10:19,375 --> 00:10:21,250 in the personal computer space. 221 00:10:21,250 --> 00:10:23,375 - [Narrator] But their success opens the door 222 00:10:23,375 --> 00:10:25,083 to a wave of competition. 223 00:10:25,083 --> 00:10:28,500 - In 1977, a bunch of major companies 224 00:10:28,500 --> 00:10:31,208 catch on to the personal computer craze. 225 00:10:31,208 --> 00:10:35,375 You have the Commodore PET and the RadioShack Tandy. 226 00:10:37,833 --> 00:10:39,042 - [Narrator] And these new machines 227 00:10:39,042 --> 00:10:41,833 have a big advantage over the Apple II. 228 00:10:41,833 --> 00:10:43,167 They're much more affordable. 229 00:10:43,167 --> 00:10:46,333 - Apple never regained their market share 230 00:10:46,333 --> 00:10:50,833 after the flood of the cheap, affordable computers. 231 00:10:52,583 --> 00:10:54,042 - [Narrator] Concerned, 232 00:10:54,042 --> 00:10:57,417 Jobs is willing to do whatever it takes to stay on top, 233 00:10:58,708 --> 00:11:02,000 even if it means outsourcing to a competitor. 234 00:11:02,000 --> 00:11:05,792 [phone ringing] [dramatic music] 235 00:11:05,792 --> 00:11:07,208 - This is Bill Gates. 236 00:11:12,542 --> 00:11:14,583 [tense music] 237 00:11:14,583 --> 00:11:16,542 - [Narrator] Two years before Jobs and Wozniak 238 00:11:16,542 --> 00:11:18,125 released the Apple II, 239 00:11:18,125 --> 00:11:22,042 there's another dynamic duo making waves in the tech world. 240 00:11:22,042 --> 00:11:24,958 - Bill Gates with his friend Paul Allen, 241 00:11:24,958 --> 00:11:27,292 from the time that they were high school students, 242 00:11:27,292 --> 00:11:30,500 played with computers and they built software. 243 00:11:30,500 --> 00:11:34,333 So when they heard about the Altair, they realized, 244 00:11:34,333 --> 00:11:36,708 oh my God, this moment is here. 245 00:11:36,708 --> 00:11:39,250 There's an opportunity now for companies 246 00:11:39,250 --> 00:11:42,625 to actually sell software to individuals 247 00:11:42,625 --> 00:11:45,292 and the audience could be tremendous. 248 00:11:45,292 --> 00:11:47,583 - [Narrator] While Apple is focused on hardware, 249 00:11:47,583 --> 00:11:49,917 these two men carve out their own path 250 00:11:49,917 --> 00:11:54,375 selling software and they call their new venture Microsoft. 251 00:11:56,167 --> 00:11:58,792 - Gates and Allen created the Altair software called BASIC 252 00:11:58,792 --> 00:12:00,708 and they thought it was gonna make them rich, 253 00:12:00,708 --> 00:12:02,250 but they were disappointed 254 00:12:02,250 --> 00:12:04,875 because they were selling mostly to computer hobbyists. 255 00:12:04,875 --> 00:12:08,708 - Microsoft struggled initially to get a foothold. 256 00:12:08,708 --> 00:12:11,042 - [Narrator] Now in 1977, 257 00:12:11,042 --> 00:12:14,292 a surprising opportunity could help put them on the map. 258 00:12:14,292 --> 00:12:17,417 [phone ringing] 259 00:12:17,417 --> 00:12:18,958 - This is Bill Gates. 260 00:12:18,958 --> 00:12:20,833 - So back in the '70s, 261 00:12:20,833 --> 00:12:23,583 the tech world was a much smaller community 262 00:12:23,583 --> 00:12:25,500 than people might have imagined. 263 00:12:25,500 --> 00:12:28,375 So Steve Jobs and Bill Gates both knew of each other. 264 00:12:28,375 --> 00:12:31,125 - I could pull something together for next week then. 265 00:12:37,042 --> 00:12:38,292 [phone receiver clicks] 266 00:12:41,375 --> 00:12:44,542 Well, Steve Jobs needs software for his new Apple computer. 267 00:12:48,625 --> 00:12:51,042 [edgy music] 268 00:12:54,042 --> 00:12:57,250 - Jobs and Gates had an unusual relationship. 269 00:12:57,250 --> 00:12:59,458 Each of them had something the other coveted. 270 00:12:59,458 --> 00:13:04,375 Gates had a sense of how to make software for the masses. 271 00:13:05,625 --> 00:13:09,542 Steve had a sense of the future of design excellence. 272 00:13:09,542 --> 00:13:11,042 - [Narrator] Within months, 273 00:13:11,042 --> 00:13:13,917 Gates delivers a series of business-oriented applications 274 00:13:13,917 --> 00:13:16,583 they package as Applesoft. 275 00:13:16,583 --> 00:13:19,500 - So Applesoft increased the computer's math abilities 276 00:13:19,500 --> 00:13:22,583 so that it could deal with just not whole numbers, 277 00:13:22,583 --> 00:13:25,208 it offered commands to allow users 278 00:13:25,208 --> 00:13:28,833 to move words and sentences around, to access files 279 00:13:28,833 --> 00:13:31,208 and to even draw pictures. 280 00:13:31,208 --> 00:13:32,417 Look, right away 281 00:13:32,417 --> 00:13:34,583 Jobs knows what an upgrade this new software 282 00:13:34,583 --> 00:13:35,875 is gonna be for Apple. 283 00:13:37,042 --> 00:13:38,583 - [Narrator] With the addition of Applesoft, 284 00:13:38,583 --> 00:13:43,833 the Apple II sales jumped from just 600 machines in 1977 285 00:13:44,417 --> 00:13:46,750 to 35,000 by 1979, 286 00:13:46,750 --> 00:13:50,958 helping Apple to stay on top of the personal computer market 287 00:13:50,958 --> 00:13:52,000 - In fairly short order, 288 00:13:52,000 --> 00:13:54,542 applications like word processing 289 00:13:54,542 --> 00:13:59,042 and the first spreadsheet were developed for the Apple II 290 00:13:59,042 --> 00:14:00,750 and the spreadsheet, in particular, 291 00:14:00,750 --> 00:14:03,000 gave people a reason to buy it. 292 00:14:03,000 --> 00:14:05,125 - The Apple II was selling very well. 293 00:14:05,125 --> 00:14:08,042 It had a tremendous market in schools. 294 00:14:09,292 --> 00:14:12,000 - [Narrator] Despite the Apple II's meteoric success, 295 00:14:12,000 --> 00:14:15,208 Jobs is already looking for what's next. 296 00:14:15,208 --> 00:14:16,667 - At that time, 297 00:14:16,667 --> 00:14:18,333 Xerox was one of the biggest technology companies 298 00:14:18,333 --> 00:14:20,375 that existed and they were interested 299 00:14:20,375 --> 00:14:22,000 in investing in Apple. 300 00:14:22,000 --> 00:14:25,750 So Steve Jobs negotiated an agreement with Xerox 301 00:14:25,750 --> 00:14:30,875 for a tour of the Xerox research lab that was known as PARC. 302 00:14:32,000 --> 00:14:33,917 - PARC stood for Palo Alto Research Center 303 00:14:33,917 --> 00:14:36,250 and the goal was for Xerox engineers 304 00:14:36,250 --> 00:14:40,125 to explore potential new technologies and innovations. 305 00:14:41,042 --> 00:14:43,667 [dramatic music] 306 00:14:43,667 --> 00:14:45,083 Steve Jobs gets a tour of PARC 307 00:14:45,083 --> 00:14:47,000 and he's shown a demonstration 308 00:14:47,000 --> 00:14:48,917 of a computer called the Alto. 309 00:14:48,917 --> 00:14:51,417 And unlike all computers previously, 310 00:14:51,417 --> 00:14:53,792 this computer has a graphical user interface 311 00:14:53,792 --> 00:14:55,542 and it's controlled with a mouse. 312 00:14:57,250 --> 00:14:59,167 [footsteps] 313 00:15:02,167 --> 00:15:04,292 - Steve, I'm in the middle of something here. 314 00:15:05,667 --> 00:15:08,375 [Steve grunts] 315 00:15:08,375 --> 00:15:10,458 [dramatic music] 316 00:15:10,458 --> 00:15:14,833 - Graphic user interface represents real life objects 317 00:15:14,833 --> 00:15:16,542 like they would appear on your desk. 318 00:15:16,542 --> 00:15:21,042 So a trash can to delete a file looks like a trash can. 319 00:15:21,042 --> 00:15:25,542 A piece of paper icon represents a file. 320 00:15:25,542 --> 00:15:27,458 - Previously, every computer 321 00:15:27,458 --> 00:15:29,333 if you wanted to get it to do anything, 322 00:15:29,333 --> 00:15:31,292 you had to go into a command line interface 323 00:15:31,292 --> 00:15:34,042 and just program in lines on the MS-DOS prompt. 324 00:15:36,167 --> 00:15:40,125 So what Jobs sees at PARC is revolutionary 325 00:15:40,125 --> 00:15:42,583 and he sees big opportunity there. 326 00:15:43,708 --> 00:15:46,208 [edgy music] 327 00:15:51,750 --> 00:15:54,333 - What am I looking at? - A desktop, 328 00:15:56,292 --> 00:16:01,208 illustrated with a graphical user interface, a GUI. 329 00:16:03,333 --> 00:16:06,667 - So with a much smaller amount of technical knowledge, 330 00:16:06,667 --> 00:16:09,792 you can begin using the computer instantaneously. 331 00:16:09,792 --> 00:16:12,042 - This is what I've been dreaming of. 332 00:16:12,042 --> 00:16:17,042 This is what integrates the computer with real life. 333 00:16:17,042 --> 00:16:19,375 - So what are they doing with it? 334 00:16:20,333 --> 00:16:21,792 - Them? 335 00:16:21,792 --> 00:16:26,958 Nothing, but we're gonna change the world with it. 336 00:16:32,042 --> 00:16:34,208 [dramatic music] 337 00:16:34,208 --> 00:16:36,292 - [Narrator] By 1980, the Apple II 338 00:16:36,292 --> 00:16:40,250 is raking in a respectable $118 million annually, 339 00:16:41,667 --> 00:16:46,208 but still less than 8% of Americans own a computer. 340 00:16:46,208 --> 00:16:47,583 - So look, the Apple II 341 00:16:47,583 --> 00:16:49,333 was keeping the lights on at Apple, right? 342 00:16:49,333 --> 00:16:51,958 And it wasn't just beloved by the public. 343 00:16:51,958 --> 00:16:54,500 The staff really adored this computer, 344 00:16:54,500 --> 00:16:57,583 but Jobs, you know, he starts to belittle it, right? 345 00:16:57,583 --> 00:16:59,875 He says it's really kind of old fashioned. 346 00:16:59,875 --> 00:17:01,083 It's not really the future 347 00:17:01,083 --> 00:17:02,792 and he really didn't see that computer 348 00:17:02,792 --> 00:17:04,000 as the future of Apple. 349 00:17:05,167 --> 00:17:06,958 - [Narrator] Much to the dismay of Wozniak 350 00:17:06,958 --> 00:17:10,042 in 1980 Jobs takes his top engineers 351 00:17:10,042 --> 00:17:12,750 and designers off the Apple II 352 00:17:12,750 --> 00:17:13,958 to focus on something new. 353 00:17:13,958 --> 00:17:16,000 - Jobs is fully inspired 354 00:17:16,000 --> 00:17:18,667 and fully committed to building a new computer 355 00:17:18,667 --> 00:17:21,667 inspired by the graphical user interface computer 356 00:17:21,667 --> 00:17:24,458 he just saw at Xerox PARC. 357 00:17:24,458 --> 00:17:26,042 - [Narrator] But pulling this off 358 00:17:26,042 --> 00:17:28,917 requires overcoming a number of challenges, 359 00:17:28,917 --> 00:17:32,458 starting with the need for a new device to operate it. 360 00:17:35,208 --> 00:17:38,000 - The original mouse is big, it's clunky, 361 00:17:38,000 --> 00:17:40,375 it's got three wheels on the outside of it 362 00:17:40,375 --> 00:17:41,708 and it's not really something 363 00:17:41,708 --> 00:17:44,208 that's ready to be mass produced for consumers. 364 00:17:45,542 --> 00:17:48,583 - Jobs wanted to simplify the system for the consumer. 365 00:17:50,208 --> 00:17:52,708 - You need to completely reinvent this mouse. 366 00:17:53,708 --> 00:17:55,833 Get rid of all the buttons except for one. 367 00:17:57,125 --> 00:17:58,292 [mouse clicking] 368 00:17:58,292 --> 00:18:00,000 - This team invented this convention 369 00:18:00,000 --> 00:18:00,958 called the double click. 370 00:18:00,958 --> 00:18:02,542 So it was like a simple way 371 00:18:02,542 --> 00:18:05,500 to create multifunctions on a mouse 372 00:18:05,500 --> 00:18:07,750 without having a confusing extra button. 373 00:18:09,208 --> 00:18:12,167 - It needs to work on a countertop and on my blue jeans 374 00:18:12,167 --> 00:18:14,083 and it can't cost more than $15. 375 00:18:15,958 --> 00:18:17,208 Let's go. 376 00:18:20,167 --> 00:18:23,292 - Steve Jobs was obsessed 377 00:18:23,292 --> 00:18:26,708 with creating the perfect computer. 378 00:18:26,708 --> 00:18:29,042 He was relentless. 379 00:18:29,042 --> 00:18:31,792 He worked his team to exhaustion. 380 00:18:31,792 --> 00:18:34,750 - Their great achievement was to take this expensive 381 00:18:34,750 --> 00:18:36,083 prone-to-failure device 382 00:18:36,083 --> 00:18:37,667 that had rarely been out of the laboratory 383 00:18:37,667 --> 00:18:40,708 and they turned it into a cheap, hardy, 384 00:18:40,708 --> 00:18:42,208 ready-for-consumer device. 385 00:18:42,208 --> 00:18:43,375 It was amazing. 386 00:18:44,458 --> 00:18:46,042 - [Narrator] With their new mouse, 387 00:18:46,042 --> 00:18:49,458 Jobs dreams of a graphical user interface 388 00:18:49,458 --> 00:18:52,042 one step closer to becoming a reality. 389 00:18:52,042 --> 00:18:54,250 - Steve Jobs knows that his computer 390 00:18:54,250 --> 00:18:56,792 has the potential to be a game changer, 391 00:18:56,792 --> 00:18:58,458 but he decides he has to keep it secret 392 00:18:58,458 --> 00:19:01,500 and therefore gives it a secret name. 393 00:19:01,500 --> 00:19:04,417 And he takes the name from a kind of Apple 394 00:19:04,417 --> 00:19:07,208 that has the most versatility 395 00:19:07,208 --> 00:19:11,417 and an incredible, incredible likability, Macintosh. 396 00:19:12,542 --> 00:19:14,833 - Steve Jobs, he's pouring money into this. 397 00:19:14,833 --> 00:19:17,708 He's poaching talent from other parts of the company, right? 398 00:19:17,708 --> 00:19:20,833 The Apple II is still paying the bills for Apple, 399 00:19:20,833 --> 00:19:22,458 but Steve Jobs does not care. 400 00:19:22,458 --> 00:19:24,333 He's fully in on this 401 00:19:24,333 --> 00:19:27,542 and it starts to destroy the morale at the company. 402 00:19:27,542 --> 00:19:30,417 - [Narrator] Meanwhile, in August of 1981, 403 00:19:30,417 --> 00:19:33,583 an announcement shakes the whole industry to its core. 404 00:19:34,833 --> 00:19:36,958 IBM is entering the personal computer market. 405 00:19:36,958 --> 00:19:39,917 - Being a pioneer in the mainframe computer market, 406 00:19:39,917 --> 00:19:42,250 IBM had an amazing reputation. 407 00:19:42,250 --> 00:19:44,708 They had a long history in the technology world 408 00:19:44,708 --> 00:19:47,208 and they were the leaders right out of the gate. 409 00:19:47,208 --> 00:19:49,083 - The IBM personal computer 410 00:19:49,083 --> 00:19:52,250 or PC really took the world by storm. 411 00:19:52,250 --> 00:19:54,250 It was very solidly engineered. 412 00:19:54,250 --> 00:19:56,250 It had a very solid rugged keyboard 413 00:19:56,250 --> 00:19:58,042 and business people loved the fact 414 00:19:58,042 --> 00:20:01,667 that they could get a computer that had the word IBM on it. 415 00:20:01,667 --> 00:20:04,250 - It was a computer made by the most trusted 416 00:20:04,250 --> 00:20:07,042 computing brand on Earth, right? 417 00:20:07,042 --> 00:20:09,167 - [Narrator] Priced around $1,500, 418 00:20:09,167 --> 00:20:11,875 it's far more affordable than the Apple II, 419 00:20:11,875 --> 00:20:13,583 which averages around 2,500. 420 00:20:15,583 --> 00:20:19,500 With pressure mounting, Jobs turns to a familiar source 421 00:20:19,500 --> 00:20:23,708 to help ensure the Macintosh knocks IBM off their pedestal. 422 00:20:23,708 --> 00:20:25,625 - Apple was a hardware manufacturer 423 00:20:25,625 --> 00:20:27,458 and Microsoft at that point, 424 00:20:27,458 --> 00:20:31,333 their strongest software was in operating systems 425 00:20:31,333 --> 00:20:34,083 and they very much wanted to become a big power 426 00:20:34,083 --> 00:20:36,000 in application software. 427 00:20:36,000 --> 00:20:38,542 So it was a great opportunity for both companies 428 00:20:38,542 --> 00:20:39,917 and a great partnership. 429 00:20:41,333 --> 00:20:43,167 - Jobs decides to show Gates the Macintosh 430 00:20:43,167 --> 00:20:45,375 and everything they've developed for it. 431 00:20:45,375 --> 00:20:47,292 - [Narrator] It's a move that will set the stage 432 00:20:47,292 --> 00:20:49,292 for one of the biggest rivalries 433 00:20:49,292 --> 00:20:51,500 in the history of American industry. 434 00:20:56,375 --> 00:20:58,875 [suspenseful music] 435 00:20:58,875 --> 00:21:02,542 - In 1983, Bill Gates delivers on his promise 436 00:21:02,542 --> 00:21:06,292 of a new application software for the Macintosh, 437 00:21:06,292 --> 00:21:08,292 a business-oriented program 438 00:21:08,292 --> 00:21:10,917 which embraces the Mac's graphic interface, 439 00:21:10,917 --> 00:21:15,458 allowing users to easily format and edit documents. 440 00:21:15,458 --> 00:21:17,458 Gates calls it Microsoft Word. 441 00:21:17,458 --> 00:21:19,875 - In addition to Microsoft Word, 442 00:21:19,875 --> 00:21:22,375 Microsoft also made a spreadsheet program 443 00:21:22,375 --> 00:21:24,417 for the Macintosh called Multiplan, 444 00:21:24,417 --> 00:21:26,167 which would ultimately go on 445 00:21:26,167 --> 00:21:28,667 to become a little thing we call Excel. 446 00:21:31,542 --> 00:21:33,250 - [Narrator] But Jobs is still not ready 447 00:21:33,250 --> 00:21:34,708 to release the Macintosh. 448 00:21:34,708 --> 00:21:37,875 - Steve was a perfectionist, had this great vision, 449 00:21:37,875 --> 00:21:40,583 but was sometimes very hard to work with. 450 00:21:40,583 --> 00:21:43,208 - The board, they're looking at Jobs and saying, 451 00:21:43,208 --> 00:21:46,000 listen, this thing needs to come out 452 00:21:46,000 --> 00:21:48,417 and it better be damn, damn good. 453 00:21:50,625 --> 00:21:53,500 - [Narrator] With IBM eating into Apple's profits 454 00:21:53,500 --> 00:21:55,500 and their stock price plummeting, 455 00:21:55,500 --> 00:21:58,708 members of the Apple Board are getting impatient. 456 00:21:58,708 --> 00:22:01,708 - So in 1983 the Apple board tells Steve Jobs 457 00:22:01,708 --> 00:22:03,708 they want to bring in a CEO for the company, 458 00:22:03,708 --> 00:22:07,583 basically to serve as basically adult supervision. 459 00:22:08,750 --> 00:22:12,708 - Jobs ultimately feels okay, fine, bring in this CEO 460 00:22:12,708 --> 00:22:14,875 as long as I have final approval on who it is. 461 00:22:14,875 --> 00:22:18,375 He ultimately rejects about 20 candidates 462 00:22:18,375 --> 00:22:20,583 before he meets John Sculley. 463 00:22:21,875 --> 00:22:23,917 - [Narrator] The former CEO of Pepsi 464 00:22:23,917 --> 00:22:26,583 and the brains behind their wildly successful 465 00:22:26,583 --> 00:22:28,875 Generation Next campaign. 466 00:22:28,875 --> 00:22:32,833 Sculley is tasked with getting the Macintosh on shelves 467 00:22:32,833 --> 00:22:33,500 as soon as possible. 468 00:22:33,500 --> 00:22:34,750 - One is inspired by serif 469 00:22:34,750 --> 00:22:37,167 and the other by sans serif typefaces. 470 00:22:37,167 --> 00:22:38,792 It really varies the amount of space 471 00:22:38,792 --> 00:22:40,750 between different letter combinations. 472 00:22:42,000 --> 00:22:43,750 - We need to release it, Steve. 473 00:22:45,458 --> 00:22:47,375 - We release it when I say it's ready. 474 00:22:49,125 --> 00:22:51,667 - Jobs is a visionary artist. 475 00:22:51,667 --> 00:22:54,583 He rejects any of the kind of boundaries 476 00:22:54,583 --> 00:22:57,167 that businessmen put on his art. 477 00:22:57,167 --> 00:23:01,667 Sculley, however, has been hired to run a company. 478 00:23:01,667 --> 00:23:03,917 - Woz, which one do you prefer? 479 00:23:09,417 --> 00:23:12,375 - Steve, I agree with Sculley. 480 00:23:13,708 --> 00:23:16,042 We should have released this six months ago. 481 00:23:16,042 --> 00:23:18,500 At this point, the difference between these two, 482 00:23:18,500 --> 00:23:21,792 it really doesn't matter. 483 00:23:27,417 --> 00:23:28,875 - [Narrator] Meanwhile, Bill Gates 484 00:23:28,875 --> 00:23:32,542 is about to reveal Microsoft's newest operating system. 485 00:23:33,292 --> 00:23:34,917 - What I'm about to show you 486 00:23:34,917 --> 00:23:39,542 is nothing short of a revolution in computer technology. 487 00:23:41,250 --> 00:23:44,417 [suspenseful music] 488 00:23:49,792 --> 00:23:51,875 - [Narrator] Gates's new operating system 489 00:23:51,875 --> 00:23:53,208 features a desktop 490 00:23:53,208 --> 00:23:56,792 with movable, resizable icons much like the Macintosh. 491 00:23:56,792 --> 00:24:00,167 - Steve showed Bill the preview of that 492 00:24:01,333 --> 00:24:04,708 and Bill kind of ran back home and created the interface 493 00:24:04,708 --> 00:24:06,875 because of that information. 494 00:24:06,875 --> 00:24:10,833 - As you can see, it operates via graphical user interface, 495 00:24:10,833 --> 00:24:14,833 which allows the user to layer one screen on top of another. 496 00:24:16,250 --> 00:24:18,583 We call it Interface Manager. 497 00:24:20,000 --> 00:24:22,125 Any questions? 498 00:24:24,708 --> 00:24:29,458 - About the name, Interface Manager, isn't the catchiest. 499 00:24:33,417 --> 00:24:35,750 It sort of reminds me of a bunch of windows. 500 00:24:40,083 --> 00:24:41,542 - If Bill Gates had his way, 501 00:24:41,542 --> 00:24:44,625 Windows OS might have been called Interface Manager. 502 00:24:46,042 --> 00:24:49,625 - Back in the day, you could only run one application 503 00:24:49,625 --> 00:24:51,833 at a time and if you wanted to do something else, 504 00:24:51,833 --> 00:24:54,542 you had to close the first application 505 00:24:54,542 --> 00:24:58,458 and then reopen whatever else you wanted to see. 506 00:24:58,458 --> 00:25:01,042 So the idea of creating multiple windows 507 00:25:01,042 --> 00:25:02,625 where you could have multiple things 508 00:25:02,625 --> 00:25:04,292 running at the same time 509 00:25:04,292 --> 00:25:07,583 and effortlessly switch between them was groundbreaking. 510 00:25:08,833 --> 00:25:10,417 - [Narrator] Even though Microsoft Windows 511 00:25:10,417 --> 00:25:12,667 won't be ready for another two years, 512 00:25:12,667 --> 00:25:17,625 on November 10th, 1983, Gates announces it to the world. 513 00:25:18,542 --> 00:25:19,750 - No one can really say for sure 514 00:25:19,750 --> 00:25:21,208 why Gates decides to announce Windows 515 00:25:21,208 --> 00:25:23,583 two years before it's actually going to come out. 516 00:25:23,583 --> 00:25:25,375 But it is pretty coincidental 517 00:25:25,375 --> 00:25:26,917 because it lines up to when Apple 518 00:25:26,917 --> 00:25:29,167 is about to start talking about the Macintosh. 519 00:25:29,167 --> 00:25:31,958 - [Narrator] And Windows will allow all other computers 520 00:25:31,958 --> 00:25:35,208 to function with a graphic interface like the Mac. 521 00:25:36,542 --> 00:25:39,083 [tense music] 522 00:25:44,375 --> 00:25:45,875 - You ripped us off. 523 00:25:45,875 --> 00:25:48,208 You stole the Macintosh interface. 524 00:25:49,500 --> 00:25:51,042 - Well, Steve, 525 00:25:51,042 --> 00:25:54,208 I think there's more than one way of looking at it. 526 00:25:54,208 --> 00:25:56,625 I think it's more like we both had this rich 527 00:25:56,625 --> 00:25:59,042 neighbor named Xerox. 528 00:25:59,042 --> 00:26:01,792 I broke into his house to steal the TV set, 529 00:26:01,792 --> 00:26:04,042 but found out that you had already stolen it. 530 00:26:04,042 --> 00:26:06,708 - Steve, really, you can't say we stole from you 531 00:26:06,708 --> 00:26:09,708 because you stole it from Xerox. 532 00:26:09,708 --> 00:26:12,833 - That kind of was the ultimate rift in their relationship 533 00:26:12,833 --> 00:26:14,917 for a very, very, very long time. 534 00:26:19,917 --> 00:26:22,042 - [Narrator] Finally, in 1984, 535 00:26:22,042 --> 00:26:24,542 after more than four years in development 536 00:26:24,542 --> 00:26:26,625 and in increasing pressure from the board, 537 00:26:26,625 --> 00:26:29,792 Jobs decides the Macintosh is ready, 538 00:26:29,792 --> 00:26:33,083 beating Microsoft Windows to the marketplace. 539 00:26:33,083 --> 00:26:36,042 - The Macintosh is publicly unveiled in 1984 540 00:26:36,042 --> 00:26:38,792 with a rather infamous commercial 541 00:26:38,792 --> 00:26:40,833 that aired during the Super Bowl 542 00:26:40,833 --> 00:26:43,792 that somewhat notably also never shows you 543 00:26:43,792 --> 00:26:46,000 an image of the computer itself. 544 00:26:47,375 --> 00:26:48,250 - We shall prevail. 545 00:26:50,000 --> 00:26:53,042 - So the Macintosh's rollout, it was an exciting moment. 546 00:26:53,042 --> 00:26:56,208 They did the famous commercial in the Super Bowl, 547 00:26:56,208 --> 00:26:57,833 directed by Ridley Scott. 548 00:26:57,833 --> 00:26:59,542 It was kind of amazing because they never really explained 549 00:26:59,542 --> 00:27:02,583 what it was, but it got a lot of attention. 550 00:27:02,583 --> 00:27:06,875 - [Narrator] At $2,495 or 7,500 today, 551 00:27:06,875 --> 00:27:09,792 the Macintosh is the most expensive personal computer 552 00:27:09,792 --> 00:27:13,250 on the market, but initial sales are strong 553 00:27:13,250 --> 00:27:17,500 with over 72,000 units being sold in the first few months. 554 00:27:17,500 --> 00:27:20,167 - It was truly a beautiful machine. 555 00:27:20,167 --> 00:27:24,917 - People became enamored of the interface. 556 00:27:24,917 --> 00:27:28,042 It had a cult following, still does to this day, 557 00:27:28,042 --> 00:27:29,875 the cult of Mac. 558 00:27:29,875 --> 00:27:31,917 - [Narrator] But by the fall of that same year, 559 00:27:31,917 --> 00:27:34,708 sales suddenly start to falter. 560 00:27:34,708 --> 00:27:37,417 - So the Macintosh, it's incredibly slow 561 00:27:37,417 --> 00:27:40,875 and because Jobs insisted on there being no hard drive 562 00:27:40,875 --> 00:27:43,750 or fan to create extraneous noise, 563 00:27:43,750 --> 00:27:46,625 there's also no cooling for the internal components, 564 00:27:46,625 --> 00:27:48,792 which would then subsequently melt down 565 00:27:48,792 --> 00:27:52,417 earning the Macintosh, the nickname, the Beige Toaster. 566 00:27:52,417 --> 00:27:55,458 - He made some bad decisions about the Macintosh 567 00:27:55,458 --> 00:27:57,750 and they stumbled as a result. 568 00:27:57,750 --> 00:28:00,500 - For the first time in Apple's company history, 569 00:28:00,500 --> 00:28:02,375 they lost money. 570 00:28:02,375 --> 00:28:04,750 [tense music] 571 00:28:04,750 --> 00:28:06,042 - [Narrator] And it's causing a rift 572 00:28:06,042 --> 00:28:08,542 between Jobs and his right hand man. 573 00:28:08,542 --> 00:28:09,667 - Steve. 574 00:28:10,375 --> 00:28:11,333 Steve. 575 00:28:12,667 --> 00:28:14,917 - Wozniak is watching Steve Jobs 576 00:28:14,917 --> 00:28:19,583 funnel countless resources into the Macintosh launch, 577 00:28:19,583 --> 00:28:22,083 the whole time, it's his Apple II 578 00:28:22,083 --> 00:28:24,708 that's really bringing that money in in the first place 579 00:28:24,708 --> 00:28:27,333 and he's feeling a bit marginalized 580 00:28:27,333 --> 00:28:28,917 and a bit forgotten. 581 00:28:28,917 --> 00:28:33,375 - Wozniak was the engineering genius behind the Apple II. 582 00:28:33,375 --> 00:28:37,583 Wozniak wanted to extend the Apple II forever, 583 00:28:37,583 --> 00:28:39,292 keeping it alive. 584 00:28:39,292 --> 00:28:40,542 It didn't happen. 585 00:28:40,542 --> 00:28:42,833 - Steve, Steve! 586 00:28:48,292 --> 00:28:49,500 I'm leaving. 587 00:28:50,750 --> 00:28:52,000 - Where are you going? 588 00:28:55,833 --> 00:28:57,125 - I'm leaving Apple. 589 00:28:58,708 --> 00:29:00,167 - There was a little bit of dissension 590 00:29:00,167 --> 00:29:03,042 about who got what stock and who didn't. 591 00:29:03,042 --> 00:29:05,625 Jobs came out very wealthy. 592 00:29:05,625 --> 00:29:07,417 Wozniak did okay, also, 593 00:29:07,417 --> 00:29:08,667 but there was a bit of tension 594 00:29:08,667 --> 00:29:13,000 that Wozniak felt that maybe he didn't get enough credit. 595 00:29:13,000 --> 00:29:14,500 - It's not my company anymore. 596 00:29:17,542 --> 00:29:20,167 This isn't why I got into this. 597 00:29:22,875 --> 00:29:24,667 - [Narrator] With Wozniak out of the picture, 598 00:29:24,667 --> 00:29:26,542 Jobs has lost his one true ally 599 00:29:28,208 --> 00:29:31,375 and he'll be forced to face more obstacles at Apple alone. 600 00:29:39,542 --> 00:29:42,125 - On November 20th, 1985, 601 00:29:42,125 --> 00:29:45,083 Microsoft's revolutionary new operating system 602 00:29:45,083 --> 00:29:47,292 Windows is finally released. 603 00:29:48,708 --> 00:29:51,500 - It was a profoundly good creative tool 604 00:29:51,500 --> 00:29:55,833 for businesses to make layouts or menus or brochures. 605 00:29:55,833 --> 00:29:57,208 You began seeing Windows 606 00:29:57,208 --> 00:30:00,583 used for business applications like accounting, 607 00:30:00,583 --> 00:30:02,875 bill paying, chronicling inventory, 608 00:30:02,875 --> 00:30:05,208 accounts receivable and so on. 609 00:30:05,208 --> 00:30:07,125 - [Narrator] Although the Windows operating system 610 00:30:07,125 --> 00:30:09,333 is not compatible with the Macintosh, 611 00:30:09,333 --> 00:30:12,958 it is with every other personal computer on the market. 612 00:30:12,958 --> 00:30:15,000 And for a fraction of the price. 613 00:30:15,000 --> 00:30:16,167 - Where they had projected that the Mac 614 00:30:16,167 --> 00:30:18,833 would sell 150,000 units at Christmas, 615 00:30:18,833 --> 00:30:21,000 they'd only sold 50,000. 616 00:30:21,000 --> 00:30:25,083 Meanwhile, because Windows is so appealing to the masses, 617 00:30:25,083 --> 00:30:28,083 sales of other PCs skyrocket. 618 00:30:29,042 --> 00:30:31,958 [retro-futuristic music] 619 00:30:31,958 --> 00:30:34,042 - [Narrator] As Apple's profits dwindle, 620 00:30:34,042 --> 00:30:37,333 tension between Jobs and Sculley hits a boiling point. 621 00:30:39,417 --> 00:30:43,458 - So Jobs as this sort of artistic visionary 622 00:30:43,458 --> 00:30:47,917 and Sculley as a true CEO and a corporate guy 623 00:30:47,917 --> 00:30:50,875 are continually knocking heads. 624 00:30:50,875 --> 00:30:52,625 - I'd like to propose that John Sculley 625 00:30:52,625 --> 00:30:55,250 be removed from the position of CEO at Apple. 626 00:30:57,875 --> 00:30:58,958 All in favor? 627 00:30:58,958 --> 00:31:01,125 [dramatic music crescendos] 628 00:31:05,167 --> 00:31:07,875 - Jobs thinks he can stage a coup against Sculley 629 00:31:07,875 --> 00:31:09,625 and force him to step down. 630 00:31:09,625 --> 00:31:11,750 Unfortunately, the motion fails. 631 00:31:11,750 --> 00:31:16,250 The board votes against him, then Sculley turns the tables. 632 00:31:17,667 --> 00:31:22,708 - The board believes that you need to step down 633 00:31:22,708 --> 00:31:24,542 as manager of the Macintosh division. 634 00:31:25,875 --> 00:31:28,083 - So the board tries to pull Jobs 635 00:31:28,083 --> 00:31:31,208 off of overseeing the Macintosh 636 00:31:31,208 --> 00:31:35,083 and it's essentially the equivalent of firing him. 637 00:31:35,083 --> 00:31:37,167 - You have to choose him or me. 638 00:31:41,542 --> 00:31:45,167 - So being that Jobs has said, "It's either him or me" 639 00:31:45,167 --> 00:31:49,208 and the board says, "Well, we want him and not you." 640 00:31:49,208 --> 00:31:53,417 Jobs sells all but one of his Apple shares 641 00:31:54,875 --> 00:31:57,958 as sort of a major vote of no confidence 642 00:31:57,958 --> 00:31:59,375 and telling the world 643 00:31:59,375 --> 00:32:02,000 that he's no longer part of this company. 644 00:32:02,917 --> 00:32:04,167 [hands slap table] 645 00:32:06,167 --> 00:32:07,542 - [Narrator] After Jobs' departure, 646 00:32:07,542 --> 00:32:10,208 Apple's stock plunges into a free fall 647 00:32:10,208 --> 00:32:12,542 for the rest of the '80s. 648 00:32:12,542 --> 00:32:15,542 [tense music] 649 00:32:15,542 --> 00:32:17,042 By the early '90s, 650 00:32:17,042 --> 00:32:20,250 Bill Gates is working on an updated version of Windows 651 00:32:20,250 --> 00:32:24,708 that includes an innovative feature, an internet browser. 652 00:32:24,708 --> 00:32:26,333 - So in 1992, 653 00:32:28,917 --> 00:32:33,125 America Online is birthed into the world 654 00:32:33,125 --> 00:32:36,542 and it basically offered dial-up internet service 655 00:32:36,542 --> 00:32:38,667 to everyone in America. 656 00:32:38,667 --> 00:32:42,292 Suddenly the information highway could be driven by anybody 657 00:32:42,292 --> 00:32:44,375 and Bill Gates sees an opportunity. 658 00:32:44,375 --> 00:32:47,333 [dramatic music] 659 00:32:48,250 --> 00:32:52,542 - Windows 95, it was a sensation. 660 00:32:52,542 --> 00:32:55,375 They spent hundreds of millions of dollars 661 00:32:55,375 --> 00:32:57,500 on just the marketing launch. 662 00:32:57,500 --> 00:33:01,958 They licensed a Rolling Stones' song, "Start Me Up" 663 00:33:03,208 --> 00:33:06,417 and then danced to it in front of everyone. 664 00:33:06,417 --> 00:33:11,500 That is how on top of the world Bill Gates was at this time. 665 00:33:12,583 --> 00:33:13,750 - So now that the internet became accessible 666 00:33:13,750 --> 00:33:15,375 to homes across the country, 667 00:33:15,375 --> 00:33:17,750 owning and using a computer became a lot more functional. 668 00:33:17,750 --> 00:33:19,208 You could pay your bills online, 669 00:33:19,208 --> 00:33:20,292 you can message with friends, 670 00:33:20,292 --> 00:33:22,583 you can send and receive emails. 671 00:33:22,583 --> 00:33:24,208 Now the everyday person 672 00:33:24,208 --> 00:33:26,667 saw the value of owning one of these devices. 673 00:33:28,042 --> 00:33:29,750 - [Narrator] Microsoft sells a record-breaking 674 00:33:29,750 --> 00:33:32,250 100 million copies of Windows 95 675 00:33:32,250 --> 00:33:36,083 in the first four days and at 39 years old, 676 00:33:36,083 --> 00:33:38,583 Bill Gate becomes the richest man in the world 677 00:33:38,583 --> 00:33:40,542 worth roughly $12 billion. 678 00:33:42,042 --> 00:33:45,375 - Computers started to become everywhere. 679 00:33:45,375 --> 00:33:49,375 Because Microsoft is on every single PC clone, 680 00:33:49,375 --> 00:33:54,083 they dominated the entire computer space. 681 00:33:54,083 --> 00:33:56,000 - [Narrator] But there's still one computer brand 682 00:33:56,000 --> 00:34:00,042 that Windows 95 is not compatible with, Apple. 683 00:34:00,042 --> 00:34:02,292 - By the '90s, Apple was in trouble. 684 00:34:02,292 --> 00:34:04,792 Its sales weren't anywhere where they wanted to be, 685 00:34:04,792 --> 00:34:08,458 and a lot of people felt that Apple was going to die. 686 00:34:08,458 --> 00:34:10,542 - [Narrator] With the company on the edge of bankruptcy, 687 00:34:10,542 --> 00:34:13,792 Apple needs to make a drastic change or go under. 688 00:34:19,833 --> 00:34:22,625 - [Narrator] By the mid '90s, Apple's worldwide market share 689 00:34:22,625 --> 00:34:26,333 has spiraled from roughly 20% to 3%. 690 00:34:26,333 --> 00:34:29,958 - Once Steve was gone, there really wasn't the Apple 691 00:34:29,958 --> 00:34:32,375 that we all know today or we knew prior 692 00:34:32,375 --> 00:34:35,375 and it was a very dark era for Apple 693 00:34:35,375 --> 00:34:36,750 in a very substantial way. 694 00:34:38,375 --> 00:34:40,583 - [Narrator] Though Apple tries to continue innovating, 695 00:34:40,583 --> 00:34:42,833 nothing can compete with Microsoft. 696 00:34:44,833 --> 00:34:47,125 - So Microsoft is flying. 697 00:34:47,125 --> 00:34:48,708 They've created Internet Explorer. 698 00:34:48,708 --> 00:34:52,583 Website developers are specifically optimizing 699 00:34:52,583 --> 00:34:55,208 their websites to work with Internet Explorer 700 00:34:55,208 --> 00:34:57,125 so it's kind of the nail in the coffin 701 00:34:57,125 --> 00:34:58,500 for Apple at this time. 702 00:34:59,875 --> 00:35:03,417 - [Narrator] And by 1997, the empire Steve Jobs built 703 00:35:03,417 --> 00:35:05,375 is at risk of going under. 704 00:35:08,000 --> 00:35:10,208 [tense music] 705 00:35:10,208 --> 00:35:13,333 - What happens is a story as old as time, 706 00:35:13,333 --> 00:35:18,042 the non-founders, the executives run Apple 707 00:35:18,042 --> 00:35:20,958 and really run it into the ground. 708 00:35:20,958 --> 00:35:26,167 Failure after failure after failure, the magic was gone. 709 00:35:27,708 --> 00:35:31,333 - Jobs meanwhile was able to get involved in a company 710 00:35:31,333 --> 00:35:33,792 called NeXT where he was able to implement 711 00:35:33,792 --> 00:35:37,375 some of his dreams about what a computer should be like. 712 00:35:38,542 --> 00:35:41,042 - So it seems very insignificant to us now, 713 00:35:41,042 --> 00:35:42,458 but NeXT had some really interesting 714 00:35:42,458 --> 00:35:44,167 features for the time. 715 00:35:44,167 --> 00:35:45,875 For example, they had a programming doc 716 00:35:45,875 --> 00:35:48,208 and this little spinning wheel that would let you know 717 00:35:48,208 --> 00:35:49,833 that the computer's trying to process 718 00:35:49,833 --> 00:35:51,042 what you asked it to do. 719 00:35:51,042 --> 00:35:53,292 Back then, computers were still pretty slow, 720 00:35:53,292 --> 00:35:56,167 so it was an easy way to tell users we're working on it. 721 00:35:56,167 --> 00:35:57,500 Don't worry. 722 00:35:58,417 --> 00:35:59,958 - [Narrator] In a desperate move, 723 00:35:59,958 --> 00:36:03,625 Apple offers to buy the NeXT operating system from Jobs 724 00:36:03,625 --> 00:36:06,458 who has a specific set of conditions. 725 00:36:06,458 --> 00:36:11,500 $429 million, 1.5 million shares of Apple stock 726 00:36:11,500 --> 00:36:14,375 and his return to the company he started. 727 00:36:16,792 --> 00:36:18,708 - Apple purchased NeXT 728 00:36:18,708 --> 00:36:20,958 and then Steve kind of just made his way back 729 00:36:20,958 --> 00:36:22,333 to CEO of the company. 730 00:36:22,333 --> 00:36:24,750 - When Jobs came back to Apple, 731 00:36:24,750 --> 00:36:27,208 he realized the company was in trouble. 732 00:36:27,208 --> 00:36:29,375 It was about to go under. 733 00:36:29,375 --> 00:36:30,792 - [Narrator] To save the company, 734 00:36:30,792 --> 00:36:34,167 Jobs makes a move that will shock the world. 735 00:36:45,708 --> 00:36:46,875 - I wanna apologize 736 00:36:46,875 --> 00:36:49,208 for some of the things I said in that documentary. 737 00:36:51,542 --> 00:36:53,583 - So during his time away from Apple, 738 00:36:53,583 --> 00:36:56,292 Steve Jobs has actually appeared in a documentary 739 00:36:56,292 --> 00:36:58,083 called "Triumph of the Nerds." 740 00:36:58,083 --> 00:37:00,292 And within that documentary, 741 00:37:00,292 --> 00:37:03,375 Steve Jobs dropped some pretty terrible insults. 742 00:37:03,375 --> 00:37:04,375 Saying, you know, 743 00:37:04,375 --> 00:37:05,875 "the only problem with Microsoft 744 00:37:05,875 --> 00:37:07,792 is they just have no taste." 745 00:37:07,792 --> 00:37:09,875 - The question that people always talk about in rivalries 746 00:37:09,875 --> 00:37:12,375 is, could one be successful without the other? 747 00:37:12,375 --> 00:37:13,792 We think about it in sports, 748 00:37:13,792 --> 00:37:16,958 is Muhammad Ali, Muhammad Ali without Joe Frazier? 749 00:37:16,958 --> 00:37:18,833 - If Apple goes down, 750 00:37:18,833 --> 00:37:21,417 Microsoft won't have anyone to win against. 751 00:37:23,042 --> 00:37:24,875 - I think out of all the battles 752 00:37:24,875 --> 00:37:28,833 of entrepreneurs in the history of time and companies, 753 00:37:28,833 --> 00:37:31,833 I think the Steve Jobs, Bill Gates, 754 00:37:31,833 --> 00:37:33,375 did they push each other to further places? 755 00:37:33,375 --> 00:37:34,667 did they push each other to further places? 756 00:37:34,667 --> 00:37:36,167 Absolutely. 757 00:37:36,167 --> 00:37:37,708 - Here's what I propose. 758 00:37:37,708 --> 00:37:39,625 [dramatic music] 759 00:37:44,375 --> 00:37:47,208 - H[suspenseful music]e. 760 00:37:47,208 --> 00:37:49,042 - [Narrator] Following a top secret meeting 761 00:37:49,042 --> 00:37:53,917 between Steve Jobs and Bill Gates in August of 1997, 762 00:37:53,917 --> 00:37:56,875 Jobs makes a shocking announcement to the world. 763 00:37:56,875 --> 00:37:59,875 - I'd like to announce one of our first partnerships today, 764 00:37:59,875 --> 00:38:02,958 a very, very meaningful one, and that is one with Microsoft. 765 00:38:05,375 --> 00:38:08,542 - [Narrator] Bill Gates agrees to invest $150 million 766 00:38:08,542 --> 00:38:10,875 in Apple to save it from bankruptcy 767 00:38:10,875 --> 00:38:14,667 in exchange for 150,000 non-voting shares. 768 00:38:16,667 --> 00:38:19,542 And with the cash infusion from Microsoft 769 00:38:19,542 --> 00:38:23,917 Jobs sets out to bring the Macintosh into the future. 770 00:38:23,917 --> 00:38:26,583 - Computers were kind of all about function 771 00:38:26,583 --> 00:38:28,875 and nothing to do with aesthetics, 772 00:38:28,875 --> 00:38:33,375 and they were basically sort of putty-colored beige boxes 773 00:38:33,375 --> 00:38:36,500 and Jobs very accurately reasoned, 774 00:38:36,500 --> 00:38:39,750 look, we know the computer works. 775 00:38:39,750 --> 00:38:41,458 We have function. 776 00:38:41,458 --> 00:38:43,708 Let's work on form. 777 00:38:43,708 --> 00:38:47,750 - It's sleek, it's playful, it's futuristic, 778 00:38:47,750 --> 00:38:50,208 but we need to do something different than beige 779 00:38:50,208 --> 00:38:51,958 for the color. 780 00:38:51,958 --> 00:38:54,875 [man clears throat] 781 00:38:56,375 --> 00:39:00,458 - I've been thinking about this one. 782 00:39:03,583 --> 00:39:06,333 If you don't like it, it's okay. 783 00:39:07,958 --> 00:39:09,000 - I love it. 784 00:39:11,875 --> 00:39:15,250 - [Narrator] Their new creation will be called the iMac. 785 00:39:15,250 --> 00:39:17,708 - The idea of creating a computer 786 00:39:17,708 --> 00:39:19,792 that was as beautiful on the outside 787 00:39:19,792 --> 00:39:22,250 as it was effective on the inside, 788 00:39:22,250 --> 00:39:24,125 that's groundbreaking baby. 789 00:39:25,292 --> 00:39:26,708 - [Narrator] And it's old new look 790 00:39:26,708 --> 00:39:28,875 isn't its only futuristic feature. 791 00:39:30,083 --> 00:39:32,542 - The "I" stood for the internet 792 00:39:32,542 --> 00:39:35,542 and it was built for an internet focused future in mind. 793 00:39:35,542 --> 00:39:37,958 - [Narrator] The iMac features built-in ethernet 794 00:39:37,958 --> 00:39:42,208 and separate icons for email, web browsing and messaging. 795 00:39:42,208 --> 00:39:46,000 The revolutionary iMac hit stores on August 15th, 1999. 796 00:39:48,208 --> 00:39:52,042 - It sort of reestablished Apple as a creative company. 797 00:39:52,042 --> 00:39:55,042 - I vividly remember the release of the iMac. 798 00:39:55,042 --> 00:39:58,042 I didn't know computers could look cool and fun 799 00:39:58,042 --> 00:39:59,458 and approachable 800 00:39:59,458 --> 00:40:02,750 and instead of hard edges, things were rounded 801 00:40:02,750 --> 00:40:07,750 and it looked somewhat like a futuristic item 802 00:40:07,750 --> 00:40:09,792 that you might see in a sci-fi movie. 803 00:40:11,042 --> 00:40:14,167 - [Narrator] And Steve Jobs is just getting started. 804 00:40:14,167 --> 00:40:16,792 Between 2001 and 2008, 805 00:40:16,792 --> 00:40:19,375 he'll build upon the success of the iMac 806 00:40:19,375 --> 00:40:22,042 and launch a series of revolutionary products 807 00:40:22,042 --> 00:40:25,500 in line with his design- forward sensibilities. 808 00:40:25,500 --> 00:40:28,750 The iPod would change the music industry. 809 00:40:28,750 --> 00:40:32,500 - With the introduction of iTunes and the iPod, 810 00:40:32,500 --> 00:40:35,417 it really created its own ecosystem upon itself. 811 00:40:36,375 --> 00:40:37,958 - [Narrator] The iPhone 812 00:40:37,958 --> 00:40:40,333 would become the most-used mobile device in the world. 813 00:40:40,333 --> 00:40:42,750 - They came at it recognizing, in fact, 814 00:40:42,750 --> 00:40:45,750 no longer is it primarily a phone, 815 00:40:45,750 --> 00:40:48,042 it's really now a computer 816 00:40:48,042 --> 00:40:50,708 that you can use as a phone. 817 00:40:50,708 --> 00:40:53,750 - The iPhone is 100% 818 00:40:53,750 --> 00:40:56,875 Apple's most iconic product ever. 819 00:40:56,875 --> 00:41:00,375 And I believe that because it's the last product 820 00:41:00,375 --> 00:41:03,583 that really has Steve's deep DNA in it. 821 00:41:05,708 --> 00:41:08,625 - [Narrator] While Steve Jobs passed away in 2011, 822 00:41:08,625 --> 00:41:10,708 he remains as iconic 823 00:41:10,708 --> 00:41:12,708 as the life-changing products he brought to the world. 824 00:41:12,708 --> 00:41:16,250 - Jobs created this world that was a fantasy, 825 00:41:16,250 --> 00:41:17,958 but somehow people believed in him 826 00:41:17,958 --> 00:41:20,542 and he got engineers to design them, 827 00:41:20,542 --> 00:41:22,208 which was a cool thing. 828 00:41:22,208 --> 00:41:25,417 - [Narrator] In 2018, Apple became the first company 829 00:41:25,417 --> 00:41:28,667 valued at over a trillion dollars. 830 00:41:28,667 --> 00:41:30,583 Today worth roughly 4 trillion, 831 00:41:30,583 --> 00:41:33,333 it's the most profitable company in the world. 832 00:41:33,333 --> 00:41:38,042 - Steve Jobs was obsessed with taking futuristic ideas 833 00:41:38,042 --> 00:41:40,417 and making them accessible to the public 834 00:41:40,417 --> 00:41:43,875 and by always pursuing that passion 835 00:41:43,875 --> 00:41:47,792 we have smartphones, we have the iPod, 836 00:41:47,792 --> 00:41:52,750 we have computers that you can seamlessly create art on. 837 00:41:54,292 --> 00:41:57,167 He revolutionized the industry by taking it into the future. 838 00:41:58,958 --> 00:42:00,333 - [Narrator] Just behind Apple, 839 00:42:00,333 --> 00:42:02,833 the second biggest company in the world, Microsoft 840 00:42:02,833 --> 00:42:06,042 is now valued at 2.79 trillion. 841 00:42:07,667 --> 00:42:09,875 - I believe Steve Jobs' impact on the world 842 00:42:09,875 --> 00:42:13,667 was making products that we loved and made our lives better. 843 00:42:13,667 --> 00:42:16,542 I believe that Bill Gates' impact on the world 844 00:42:16,542 --> 00:42:18,208 was creating our understanding 845 00:42:18,208 --> 00:42:20,667 that it was the software inside of those products 846 00:42:20,667 --> 00:42:23,917 that actually mattered for us to love it.