
Five years later, when Steve Jobs reached college age, he told his parents he wanted to enroll in Reed College — an expensive liberal arts college up in Oregon. Even though the tuition fees were astronomical for the poor couple, they had promised their son's biological parents he would get a college education, so they relented. Steve spent only one semester at Reed, then dropped out, as he was more interested in eastern philosophy, fruitarian diets, and LSD than in the classes he took. He moved to a hippie commune in Oregon where his main activity was cultivating apples.
A few months later, Steve returned to California to look for a job. He was hired at the young video game maker Atari, and used his wages to make a trip to India with one of his college friends, in order to 'seek enlightenment'. He came back a little disillusioned and started to take interest in his friend Woz's new activities.
Apple's origins
The knowledge that Woz gathered at the Homebrew meetings, as well as his exceptional talent, allowed him to build his own computer board — simply because he wanted a personal computer for himself. Steve Jobs took interest, and he quickly understood that his friend's brilliant invention could be sold to software hobbyists, who wanted to write software without the hassle of assembling a computer kit. Jobs convinced Wozniak to start a company for that purpose: Apple Computer was born on April 1, 1976.
The following months were spent assembling boards of Apple I computers in the Jobses' garage, and selling them to independent computer dealers in the area. However, Wozniak had started work on a much better computer, the Apple II — an expandable, much more powerful system that supported color graphics. Jobs and Wozniak knew deep down it could be hugely successful, and therefore Jobs started to seek venture capital. He eventually convinced former Intel executive turned business angel Mike Markkula to invest $250,000 in Apple, in January 1977. Markkula was a big believer in the personal computing revolution, and he said to the young founders that, thanks to the Apple II, their company could be one of the Fortune 500 in less than two years.
Apple II Forever
In the wake of Apple's success, its investors decided it was time to go public. The IPO took place in December 1980, only four years after the company was started. Steve Jobs's net worth increased to over $200 million, at age 25.
Apple's success attracted the attention of the computer giant IBM, which until then was still only selling mainframe computers to large companies. A crash project was started and in August 1981, the IBM PC entered the personal computer market. It was the biggest threat yet to Apple, whose reputation was being put into question after the flop of the Apple III in 1980. Most hopes rested on a business computer project, called the Lisa.
Lisa & Xerox PARC
Steve Jobs was a big believer in the Lisa computer initially. It was he who came up with the name. Indeed, in 1978, his ex-girlfriend from high school Chrisann Brennan gave birth to a little girl, who she named Lisa. Steve denied paternity, although it was ovious to everyone who knew him that he was the father, given the on-and-off relationship he still had with Chrisann at the time. Jobs refused to give any money to Chrisann, despite the millions he had accumulated at Apple. While in denial, he came up with the name Lisa for the new computer Apple was building…The following year, a tour of the computer research lab Xerox PARC made a huge impression on him. The scientists who worked there had invented a number of breakthrough technologies that would mark the industry for the coming decades, including the graphical user interface (GUI) and the mouse, Ethernet, laser printing and object oriented programming. Jobs became obsessed with the GUI which was a lot easier to use than the command-line interfaces of the day, which required any PC user to learn a computer language. He insisted the Lisa had a GUI and a mouse, too.
Macintosh
However, because of his hot temper and his relative inexperience in technology or management, Steve Jobs was thrown out of the Lisa project. He felt absolutely crushed by this decision. As a revenge, he took over a small project called Macintosh, a personal computer that was supposed to be a cheap appliance, 'as easy to use as a toaster'. In 1981, Steve Jobs became head of the Macintosh project, and decided to make it a smaller and cheaper version of the Lisa, complete with a GUI of folders, icons and drop-down menus, and a mouse.Leaving Apple
On January 24 1984, after Apple had run a very memorable TV commercial for the SuperBowl ('1984'), Steve Jobs introduced Macintosh at the company's annual shareholders meeting. The product was launched in great fanfare and for the first few months, it was very successful.In May 1985, Steve Jobs started trying to convince some directors and top executives at Apple that Sculley should go. Instead, many of them talked to Sculley, who took the matter to the board of directors. The board sided with Sculley and a few days later, announced a reorganization of the company where Steve Jobs had no operational duties whatsoever — he was only to remain chairman of the board.
Steve was aghast: Apple was his life, and he was effectively kicked out of it. After four months spent traveling and trying out new ideas, he came back in September with a plan: he would start a new computer company aimed at higher education, with a small group of other ex-Apple employees. When Apple learned of the plan, they declared they would sue him as he was taking valuable information about the company to compete with it. As a result, Steve Jobs resigned in September 1985, and sold all but one of his Apple shares, in disgust. He went ahead with his plan anyway, and incorporated NeXT. Apple dropped its lawsuit a few months later.
The NeXT years
Steve aimed at the highest possible standards for his new NeXT machine: he wanted the best hardware, built in the world's most automated factory, and running the most advanced software possible. He decided that the computer's operating system, NeXTSTEP, would be based on UNIX, the most robust system in the world , used by the military and universities— but that it would also be as easy to use as a Macintosh,with its own GUI. NeXTSTEP would allow for object oriented programming, another breakthrough from Xerox PARC, that made writing software much faster and more reliably. These ambitious plans put off the release date of the computer — called the NeXT Cube — to October 1988.Pixar
To understand how Steve Jobs got out of his nadir, let's go back eight years earlier, in late 1985. At the time, George Lucas, who was in the middle of an expensive divorce, was selling the computer graphics division of his Lucasfilm empire. Steve Jobs had millions in the bank, after having sold all his Apple stock, and was interested. In early 1986, he bought the small group of computer scientists, and incorporated it as Pixar. The founders of Pixar, Ed Catmull and Alvy Ray Smith, had gotten together in the late 1970s with a common vision of making films using computer animation only. But they also knew no computer was powerful enough at the time, and they would have to hold out for a couple decades before their dream could materialize.Pixar then became a software company, developing the RenderMan 3D rendering software. Its animation business was kept alive because it was the only one that brought some cash in, with various 3D TV commercials for consumer brands. However a decisive contract changed everything: in 1991, Disney signed with Pixar for making a full-feature computer-animated movie. The script had to be fully approved by both parties, and the very hands-on head of Disney animation Jeffrey Katzenberg halted the production several times out of creative disagreements with John Lasseter and his team. But in 1995, the movie was finally starting to take form, and Steve Jobs became increasingly enthused by it.
Back to Apple
Business wasn't all sunshine and roses at Apple. In the decade following Steve's departure, the computer maker had milked all the cash it could from the Macintosh and its successors, surfing on the wave of the desktop publishing revolution that the Mac and the laser printer had made possible. But in 1995, after Microsoft had released Windows 95, which was a pale but working copy of the Mac OS, sales of Macintosh computers started plummeting.A new CEO, Gil Amelio, arrived in early 1996 to save the company. He cut costs, got rid of a third of the workforce, and decided that instead of writing a new, modern operating system from scratch to compete with Window, it was better for Apple to acquire one. Eventually, Amelio chose to buy NeXTSTEP, NeXT's operating system — and Steve Jobs convinced him to buy the whole company, for a whopping $400 million. The deal was made in December 1996: Steve Jobs was back at the company he founded.
For the loser now will be later to win
The few months after Steve Jobs came back at Apple were among the hardest-working in his life. He later told his biographer Walter Isaacson that he was so exhausted, he couldn't speak when he came home at night (remember he was also running a thriving Pixar simultaneously). He reviewed every team at Apple and asked them to justify why they were important to the future of the company. If they couldn't, their product would get canceled, and there was a high probability they'd have to leave, too. Jobs also brought with him his executive team from NeXT, and installed them in key positions.The simple fact that such a massive OS transition happened is a technical feat in itself. The Mac OS X team worked very hard and released six major version of the system every year or so, between 2001 and 2007, each time with more stability, rapidity, and features. Although Steve Jobs buried Mac OS 9 on stage in 2002, most observers acknowledge that the transition from the old Mac OS to OS X was really finished only in 2005, with the release of Mac OS X 10.4 Tiger. The continuous improvement of Mac OS X and the powerful core technologies and development tools it provided proved key in the Digital Hub strategy that Steve Jobs described in January 2001.
The Digital Hub strategy
The iMac DV was a hit, but desktop video failed to catch on as Jobs had hoped. After a much introspection, in 2000, the Apple executive team came up with a new paradigm for the Mac that would set the company's destinies for the coming decade. They took the idea of desktop video and decided to expand it to the other consumer digital devices that were rapidly becoming mainstream at the time. Apple would write software for the Mac to edit and store all the new digital content that consumers created — and these apps would be so powerful, delightful and easy to use, that they would entice PC users to switch to the Mac. The Digital Hub strategy was born. Steve Jobs explained it to the Apple community at Macworld in January 2001, the same day he unveiled the 2nd and 3rd of the iApps: iDVD, to shares iMovies with family and friends on DVDs; and iTunes, a digital jukebox software. Other iApps would follow: iPhoto in 2002, GarageBand in 2004, and iWeb in 2006.
2001: An Apple Odyssey
In many ways, the juggernaut that Apple became was shaped by very smart decisions that Jobs and his executive team took in the crucial 2000-2001 timeframe. We've talked of Mac OS X and the Digital Hub strategy, a crucial product and a crucial strategy that were both unveiled in January 2001.A third key decision was taken in 2000 and unveiled in mid-2001: that of creating a fully-owned retail channel, the famous Apple retail stores. Although it is easy to approve of this strategy in retrospect, it was far from an obvious choice back in May 2001, when the first two retail stores were inaugurated. PC maker Gateway was shutting down its own retail stores one after the other, and the analysts consensus at the time was that niche player Apple would burn precious money in this economic downturn on a foolish and dated idea. On the other hand, Steve Jobs explained that only in an environment fully controlled by Apple, with Apple-trained staff and only Apple-compatible products, could the superiority of Macs be fully appreciated by consumers.
That's why, in March 2001, Steve Jobs started a crash development program to develop an Apple-branded MP3 player before that year's holiday season: the iPod was born. On October 23, 2001, he introduced this cute white digital device to a small group of journalists in the company's campus auditorium. The tagline was '1,000 songs in your pocket', and there was great emphasis on its symbiosis with the iTunes app. But no one in the room, Jobs included, had any clue how important it would turn out to the company's future.
iPod nation
However, it was soon becoming clear that iPod benefited from music piracy, and that its sales could go even higher if there was a legal way to download music. Steve Jobs didn't wait for the music industry to reinvent itself. He went to all record labels to negotiate landmark deals that would lead to the introduction of the iTunes Music Store in April 2003. Ironically, one of the arguments he used was that the risk to music labels was quite low, because of the Mac's small market share (iTunes was still Mac-only). The first compelling legal alternative to illegal music file-sharing, the iTunes Store was an instant success, selling one million songs in its first week. It not only helped the sales of iPods, but it eventually reshaped the whole music industry. It was introduced to Windows as well six months later, in October 2003.
Despite this great success, Apple didn't rest on its laurels. In January 2004, it introduced the iPod mini, a more compact version of iPod that sold at $249, only $50 less than the full featured iPod. It is really after iPod mini came out that iPod became the cultural icon it is now known as. The phrase 'Walkman of the digital age' became commonplace to describe it, and in July 2004, Steven Levy of Newsweek wrote an emblematic cover story entitled 'iPod nation'. The iPod adventure was far from over, since Apple introduced the $99 iPod shuffle and the 'impossibly small' iPod nano in 2005, and the iPod video in 2006. By that time, iPod had become synonymous with music player, and the iTunes Store had sold over one billion songs.
When Pixar met Disney
Indeed, on January 24, 2006, Disney announced its friendly acquisition of Pixar, putting $7.4 billion in stock on the table. Jobs became a Disney board member and its largest individual shareholder (owning 7% of the company's stock), while Pixar executives Ed Catmull and John Lasseter were both given critical roles in the new studio.
Momentum
Meanwhile, Apple was seeing unprecedented success in all its businesses, not only iPod and iTunes. The retail stores were hugely popular, and a milestone was reached when Steve Jobs inaugurated the impressive 5th Avenue store in New York CIty, a glass cube facing Central Park. As for the Mac, it was gaining momentum on the market, benefiting from both the aura of the iPod, and the switch to Intel.Indeed, in June 2005, at WWDC, Jobs made a surprise announcement that after over a decade using the PowerPC microprocessor architecture in Macs, Apple would start using the more power-efficient Intel platform. In the late 1990s, Apple had run several ads to make fun of Intel's Pentium processors, which were commonplace in the Windows world. As a matter of fact, the expression 'Wintel machines' (Windows + Intel) was often used to describe PCs. That move to Intel was thus pretty bold, but in the long run turned out to be another wise decision. Not only did it make Macs more efficient, and pave the way for the super slim MacBook Air notebooks, but it also opened up a whole new set of customers of Apple. Intel Macs could run both Mac OS X (and its UNIX terminal) and Windows, and became the platform of choice for the majority of developers. All Macs were running Intel less than a year after the announcement.
Apple Inc.
iPod made Steve Jobs realize that Apple could become the greatest consumer electronics company on the planet. Around 2003, he started a secret project to develop a tablet. But in 2004-2005, he realized that the technology that this group had developed, including a revolutionary touch-screen technology, could be used in a phone rather than a tablet. After two more years of development, including a harsh internal competition to prove that it was possible to make Mac OS X run on the phone, iPhone was introduced at Macworld on January 9, 2007. This keynote is often considered the best and most memorable of all of Steve Jobs's career.iPhone was not only a breakthrough digital convergence device ("an iPod, a phone, and an Internet communicator" all in one), it was also a force of disruption of the traditional phone business. Just like for the iTunes Store, Steve Jobs had negotiated landmark deals with wireless carrier AT&T before he introduced iPhone — without ever showing it to them! In exchange for exclusivity, the carrier would pay Apple a share of all their iPhone subscription revenues. And of course, AT&T could not put any software on the iPhone, and no logo either. This was an inversion of the traditional master-slave relationship that carriers entertained with phone manufacturers. In the long run, it really put the phone industry upside down.
The original iPhone was successful already: despite its $399 price tag, Apple sold 6 million of them during its existence. But sales really started to skyrocket in 2008, after Apple introduced the cheaper iPhone 3G (at a subsidized $199 price) and the App Store. Just like the Windows-compatible iPod, Steve Jobs was originally opposed to letting third-party software on the iPhone. But the demand was so high that he eventually relented, and introduced the iPhone SDK and the App Store in March 2008.
It is impossible to overestimate the impact of the iPhone App Store, which ushered in a new era in mobile software. Thousands of developers started writing apps for the iPhone platform, which became a competitive advantage for Apple that no other company has been able to catch up with to this day. Apple proudly showed off this rich choice of software in its TV ad campaign 'There's an app for that' that ran for over two years.
Health concerns
Unfortunately, while he had never been so successful professionally, Steve Jobs had to start fighting cancer with renewed intensity.In late 2003, he had been diagnosed with pancreatic cancer of a rare kind, that could potentially be cured by surgery. However, against everyone's advice, he refused to have the surgery for nine long months. Instead, true to the ideals of his youth, he tried alternative diets and treatments, including acupuncture and seeing a psychic. Only in July 2004 did he agree to have the surgery. He looked healthy for the next five years, and spoke publicly of being 'cured' of cancer at his famous Stanford speech in 2005.
Yet at the WWDC keynote in June 2008, few observers failed to notice how thin he appeared on stage, and concerns about his health started popping up again. They became increasingly frequent until December 2008, when Apple made a shocking announcement that Jobs would not be the keynote speaker at Macworld 2009, and that he was taking a medical leave of absence for six months. Although he publicly denied it, the truth was of course that his cancer had come back. He was actually weeks away from death when he received a liver transplant in April 2009. But he came back to Apple, as planned, in late summer 2009, healthier though still very frail in appearance. He was eager to bring the finishing touches to a new project very dear to his heart.
Ushering in the Post-PC era
Although iPad was welcomed by mixed reviews when it was introduced in January 2010 (some dubbed it a "larger iPod touch"), it was always clear to Steve Jobs that it was 'the biggest thing [he'd] ever done' — the ultimate post-PC device, an eventual replacement of PCs for the average user. He laid out his vision clearly at the D8 conference in May 2010, where he compared PCs to trucks, which still existed after cars were invented but were only for professional, niche use. This perspective on iPad was reiterated in a series of TV commercials where the narrator, the 'Apple voice', explained how revolutionary iPad was and how the revolution had 'only just begun'.
Unfortunately, Steve Jobs' health, which had seem to recover throughout 2010, started declining again. In January 2011, he announced he was taking a new medical leave of absence, this time without saying when it would end. Everybody started talking about his upcoming departure. However, he deemed iPad and iOS so important that he still made two major public presentations at Apple event. The first one was the introduction of iPad 2 in March 2011, and the second one was WWDC, in June 2011, where he introduced iCloud.
In many ways, the iCloud announcement was of similar importance as the Digital Hub Strategy introduction ten years before. It was not only a product, but a master plan to get consumers to adopt iOS devices and lock them into the Apple ecosystem. The iCloud introduced in 2011, which allowed users to sync email, documents, and media across their Macs, iPhones, iPod touches, iPads and Apple TVs, was only the first step in that direction. It was crucial to Steve Jobs who clearly put iOS as the most important part of Apple and the key to its future.
Building his legacy
The resurgence of Steve's cancer was a painful reminder that it was time to 'put his affairs in order' before his passing — and he did.He made sure that Apple was ready to operate without him: in late 2008, he hired the dean of the Yale School of Management to create 'Apple University', a sort of internal business track to groom future Apple executives by exposing them to the Apple ways of doing business, through actual case studies in the history of the company. He also consolidated his executive team and agreed with the board that his natural successor would be his second in command, COO Tim Cook. Finally, at his last public appearance in June 2011, he unveiled his plans for the future Apple campus in Cupertino, a huge spaceship-sized building in the shape of a perfect circle. All of this was in place when, because of his increasingly deteriorating health, he resigned as Apple CEO on August 24, 2011.
Jobs also prepared his personal legacy. In 2009, he finally started giving interviews to journalist Walter Isaacson to prepare for his first and only authorized biography, giving him his perspective on his life and career. He also spent his last days designing a boat for his family on which he hoped to travel the world. Unfortunately, death took him too soon, and he died peacefully at home on October 5, 2011, surrounded by his family — the day following the introduction of the iPhone 4S, an Apple event that he watched from his deathbed.
No comments:
Post a Comment