WEBVTT - How Bill Gates and Steve Jobs Work, Part 1

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<v Speaker 1>Brought to you by the reinvented two thousand twelve Camray.

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<v Speaker 1>It's ready. Are you get in touch with technology? With

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<v Speaker 1>tech stuff from how stuff works dot com. Hey kids,

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<v Speaker 1>welcome to the podcast. My name is Chris polettom an

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<v Speaker 1>editor here and How Stuff Works, and sitting next to

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<v Speaker 1>me as always is senior writer Jonathan Strickland. Hey there everyone,

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<v Speaker 1>We were gonna, i don't know, take it down a notch,

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<v Speaker 1>you do, mill out with a couple of guys from

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<v Speaker 1>born in Yeah, a couple of guys who you know,

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<v Speaker 1>they sort of had that typical experience of the growing

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<v Speaker 1>up during the whole counterculture movement, tried college for a while,

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<v Speaker 1>decided it wasn't for them. They both are college dropouts,

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<v Speaker 1>and yet they both managed to have a you know,

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<v Speaker 1>somewhat significant impact on the tech world. Well, you know,

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<v Speaker 1>if you use a Microsoft product or an Apple product. Yeah, yeah,

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<v Speaker 1>that's a pretty minor impact. Where talking here about William

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<v Speaker 1>Billy Gates and uh Stephen Paul Jobs PAULA Yeah that's

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<v Speaker 1>his name. Yeah, Okay, okay, um, Yeah, both of these guys, uh,

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<v Speaker 1>you know, they've been uh they've been sort of grouped

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<v Speaker 1>together for a very long time. In fact, there was

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<v Speaker 1>even a movie starting Noah Wiley and Anthony Michael Hall

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<v Speaker 1>called Pirates and Silicon Valley made about these two. And

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<v Speaker 1>you know, really when you look at them together, yes,

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<v Speaker 1>they were. They were both born in the same year

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<v Speaker 1>they were they both dropped out of college, and they're

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<v Speaker 1>both huge people in the tech industry. And they both

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<v Speaker 1>founded their their own companies in nineteen Yeah, there you go.

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<v Speaker 1>So both when they were twenty years old, they they

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<v Speaker 1>founded a company. Dropped out of college to found a company.

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<v Speaker 1>It's pretty crazy. Yeah, I've just lost them. I've never

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<v Speaker 1>found them. No, Yeah, I've been very fortunate in finding

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<v Speaker 1>companies either. So anyway, so we were thinking about starting

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<v Speaker 1>with Mr Jobs. I was, and, um, there are a

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<v Speaker 1>lot of interesting parallels, but I think the more interesting

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<v Speaker 1>parts are sort of the places where jobs and gates

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<v Speaker 1>are are are not alike. Yeah, but you know, I'll

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<v Speaker 1>start with jobs. Okay, So came from born in California

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<v Speaker 1>and went to school. You know, it didn't seem to

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<v Speaker 1>be a huge enthusiastic student, I guess you could say, Um,

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<v Speaker 1>but he did go to some Hewitt Packard electronics lectures

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<v Speaker 1>that that he really got interested in Um, that's where

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<v Speaker 1>he met a certain fellow by the name of Stephen Wozniak.

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<v Speaker 1>The yeah, jobs actually worked at HP for a while.

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<v Speaker 1>I'm yeah, yeah he did, and they the two of

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<v Speaker 1>those guys went to uh Atari. Right. Yeah. Between his

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<v Speaker 1>HP experience and his Stari experience, he did attend one

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<v Speaker 1>semester of college. Um. Yeah, he went to uh He

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<v Speaker 1>went to Read College, Oregon, which is famous for its

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<v Speaker 1>counterculture or semi famous for counterculture. Yes, and we have

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<v Speaker 1>to mention something. We had a specific request for this podcast. Yes,

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<v Speaker 1>our our colleague Josh Clark wanted us to point out

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<v Speaker 1>that one thing that sets jobs apart from Gates is

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<v Speaker 1>that jobs apparently dropped acid. So this is according to

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<v Speaker 1>our colleague Josh Clark. You can direct all iro at him. Um. Yeah,

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<v Speaker 1>from what I understand, he even, um, after he dropped

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<v Speaker 1>out of college, went to India for a while to

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<v Speaker 1>explore some spirituality and yes, and so he was really into,

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<v Speaker 1>you know, learning more about the spiritual side of life. Sure, yeah,

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<v Speaker 1>he's he's definitely, he's considers himself a Buddhist. He's, Um, yeah,

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<v Speaker 1>he's very much in touch with that part of his life,

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<v Speaker 1>which is kind of interesting if you learn a little

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<v Speaker 1>more about his personality, because it doesn't seem like the

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<v Speaker 1>typical I don't know, Buddhist sort of approach to life.

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<v Speaker 1>Say not, but we we're getting ahead of ourselves. We

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<v Speaker 1>should we should go a little more slowly. I guess. Yeah,

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<v Speaker 1>So so was and Uh and Jobs are over ATITORI

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<v Speaker 1>and they're designing video games. And after a while, Uh,

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<v Speaker 1>Jobs gets this crazy idea. He thinks, hey, you know

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<v Speaker 1>what we should do is build a computer that could

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<v Speaker 1>be used in the home. Because up to that point,

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<v Speaker 1>computers were pretty much these enormous devices that really existed

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<v Speaker 1>only in the realms of the government and large universities. Yeah,

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<v Speaker 1>and the people who were interested in ideas like like

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<v Speaker 1>Jobs and wise were at this point where hobbyists we're

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<v Speaker 1>talking radio shack boxes of switches and diodes and electronics

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<v Speaker 1>that you wired together to make a very rudimentary machine.

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<v Speaker 1>They like the al tear. Yes, so we'll come back

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<v Speaker 1>to yes. So so Jobs ends up convincing Wozniac that hey,

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<v Speaker 1>this is a great idea. Let's actually try and do this.

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<v Speaker 1>Because here's here's the other interesting thing about Jobs is that, um,

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<v Speaker 1>he's a brilliant man. There's no denying the fact that

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<v Speaker 1>Jobs is brilliant. I mean, you can't get around it. U.

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<v Speaker 1>But he is not the engineer. When it comes down

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<v Speaker 1>to the whole Apple story, that would that would pretty

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<v Speaker 1>much fall on Wozniak's shoulders, at least in the early years. Yeah,

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<v Speaker 1>I mean the two of them were both interested in

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<v Speaker 1>electronics and engineering, but was is really the I mean,

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<v Speaker 1>he was the phone freak. He was. He was definitely

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<v Speaker 1>into the technology and fiddling with electronics end of it.

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<v Speaker 1>Where I think for for Stephen Jobs, it was more

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<v Speaker 1>a means to an end. Yeah. Jobs. Jobs recognize the

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<v Speaker 1>potential of creating a brand new product market uh, and

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<v Speaker 1>he could saw that it could be very lucrative, and

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<v Speaker 1>he knew that Wozniak had the ability to to bring

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<v Speaker 1>this into life as it were, so together, the two

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<v Speaker 1>of them worked on building some computers, and they got

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<v Speaker 1>a local UM computer store interested in their products, and

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<v Speaker 1>the computer store actually ordered uh several It depends on

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<v Speaker 1>the sources you read. I've read everything from twenty five

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<v Speaker 1>to fifty five machines UM. And with the money they

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<v Speaker 1>made from that, that's where they decided to create the company. Apple. Yeah,

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<v Speaker 1>we're we're in the realm of the Apple One, which

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<v Speaker 1>was very much the pictures I've seen of it are

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<v Speaker 1>pretty rudimentary compared to what you would see on your desktop. Um,

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<v Speaker 1>you know, wooden box and it's got you know, the

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<v Speaker 1>electronics inside of it, and you'd hook it up to

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<v Speaker 1>a TV. Um. And of course they chose, being being

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<v Speaker 1>jobs and wise, they chose a very interesting price point. Yes,

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<v Speaker 1>six and sixty six dollars. It was the computer of

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<v Speaker 1>the Beast. Yes, yes, and they actually sold they sold

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<v Speaker 1>quite a few of these machines. Yeah, this was in

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<v Speaker 1>so that's a pretty good chunk of change. You know,

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<v Speaker 1>you think today like a six computer isn't that expensive,

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<v Speaker 1>but in seventy six dollars it's snows. Yeah, it was

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<v Speaker 1>a healthy purchase. Yeah yeah. And so um, a year

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<v Speaker 1>after they introduced the Apple One, they go back, they

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<v Speaker 1>retool it. They and they introduced the Apple Too, which

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<v Speaker 1>was a little bit more advanced as you would expect,

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<v Speaker 1>and uh incorporated some other technologies, including a monitor. And um,

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<v Speaker 1>this is where my story about computers kind of comes

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<v Speaker 1>into play, because my first real experience with computers was

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<v Speaker 1>with an Apple to eat. I see ye see, well

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<v Speaker 1>lots of uh, I'm willing to bet to lots of

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<v Speaker 1>the people listening to the podcast at this point had

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<v Speaker 1>an apple too of some kind, any in our age range, Yeah,

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<v Speaker 1>or at least they know what they are, and they're

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<v Speaker 1>probably seen one thinking about those giant five and a

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<v Speaker 1>quarter inch floppy disk drives, right, Yeah, an Oregon trail

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<v Speaker 1>and lemonade dand trail uh nostalgias so sweet. But this,

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<v Speaker 1>but the apple too is really where a lot of

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<v Speaker 1>people first came in contact with computers, and it spurred

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<v Speaker 1>a lot of people to start pro gramming, start fiddling

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<v Speaker 1>around with the idea of having computers on desktops for

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<v Speaker 1>work or you know, for their for their home, for

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<v Speaker 1>educational purposes. And in fact, that's why we had one.

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<v Speaker 1>My father is an author, so he purchased the computer

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<v Speaker 1>as a way so that he could, you know, write

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<v Speaker 1>books and he should store them on discs. And suddenly,

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<v Speaker 1>you know, you don't have to worry about a paper

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<v Speaker 1>copy suddenly being ruined by your five year old sons

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<v Speaker 1>spilling coffee all over it. Although I should add that

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<v Speaker 1>his um son, being me, did once turn off his

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<v Speaker 1>computer before he had saved his chapters and so I

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<v Speaker 1>am personally responsible for deleting I think it's three chapters

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<v Speaker 1>of my father's work. Yeah, it was good times so

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<v Speaker 1>um but yeah, within three years of the Apple two

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<v Speaker 1>coming out, and it earned almost a hundred forty million dollars.

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<v Speaker 1>That's a lot of money. And uh, and so that's

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<v Speaker 1>when Jobs and Woznia decided to to go public with

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<v Speaker 1>the company, So Apples public and UH and the shares

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<v Speaker 1>where I think at twenty two dollars a share when

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<v Speaker 1>it first went public and then shot up to twenty

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<v Speaker 1>nine dollars by the end of the first day. So yeah,

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<v Speaker 1>it was a lot of people were really excited about

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<v Speaker 1>this company. And uh. It was right around this time

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<v Speaker 1>that IBM started to try and make headway into the

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<v Speaker 1>consumer market. Now IBM had been producing machines for years,

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<v Speaker 1>but yes, exactly, so these are these machines though were

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<v Speaker 1>mainly these large machines used in mainframe computers, not like

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<v Speaker 1>personal computers. UM, but they decided to try and get

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<v Speaker 1>into the personal computer business. And they were taking a

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<v Speaker 1>slightly different route than Apple and um using a completely

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<v Speaker 1>incompatible operating system than Apples at uh. At certain points,

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<v Speaker 1>so uh, there were a lot of strong decisions that

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<v Speaker 1>need to be made. Jobs had to decide whether or

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<v Speaker 1>not to stay the course and continue doing what he

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<v Speaker 1>was doing, or to try and find a way to

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<v Speaker 1>merge Apple with IBM, like some sort of operating system

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<v Speaker 1>that could work on both. And there were some serious

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<v Speaker 1>attempts at that for many years, it never happened, at

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<v Speaker 1>least not on any large scale. Right. And and for

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<v Speaker 1>those of you playing at home who weren't around during

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<v Speaker 1>this time, we're talking a lot of this stuff is

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<v Speaker 1>you know, we didn't have mice really for the most

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<v Speaker 1>part for a lot of these early years. We're talking

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<v Speaker 1>keyboard commands and the disc operating system that the IBM

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<v Speaker 1>PC ran on. UM. You know this, it's very clunky

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<v Speaker 1>for those of you who weren't there to see it. UM.

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<v Speaker 1>So some of the changes that came up UM were

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<v Speaker 1>sort of the result of Apple successes because they got

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<v Speaker 1>so large that they started branching off into different products UM,

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<v Speaker 1>including some that started using mice. UM. That's Lisa. Yeah, Well,

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<v Speaker 1>the Apple Lisa, many of which are in landfills now,

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<v Speaker 1>were extremely expensive machines. Yes, exactly, we're all in ones UM.

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<v Speaker 1>And they also had controlled they did have mice and uh,

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<v Speaker 1>there was another product that came out right about the

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<v Speaker 1>same time as the Lisa that Steve Jobs was working on.

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<v Speaker 1>The The CEO had put him on the project because

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<v Speaker 1>he had become one of the uh, one of the

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<v Speaker 1>directors in the company, but he was no longer directly

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<v Speaker 1>in charge of Apple at that point. Are you are

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<v Speaker 1>you thinking of the Macintosh computer? That would be the

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<v Speaker 1>one because we totally skipped over the Apple three. I'm sorry,

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<v Speaker 1>I forgot about the Apple Yeah, well most people did. Oh,

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<v Speaker 1>that's right, because the Apple three ended up. Here's the

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<v Speaker 1>thing about the Apple three. There was a problem early

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<v Speaker 1>in the production and Apple had to recall around fourteen

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<v Speaker 1>thousand units, and after that it just couldn't get a

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<v Speaker 1>grip on the market because no one trusted it. I wonder,

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<v Speaker 1>can you think of any current products that people have

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<v Speaker 1>of a growing mistrust about, even though it seems like

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<v Speaker 1>all the problems have been fixed. Uh, yeah, I'm thinking

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<v Speaker 1>of I'm thinking of we can talk about that when

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<v Speaker 1>we get the gates. I guess, because there's there's a

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<v Speaker 1>it's interesting that right now there's a product that is

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<v Speaker 1>experiencing the same problem. Early on, it had problems, They

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<v Speaker 1>fixed the problems, and yet no one wants to use it.

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<v Speaker 1>Um suppose it depends on your outlook or so. Back

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<v Speaker 1>to the Macintosh you have now, the Macintosh was really

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<v Speaker 1>designed to compete directly with the PC. So now we've

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<v Speaker 1>got we've got our our classic matchup here, the Mac

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<v Speaker 1>and the PC UM. And the Mac had an advantage

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<v Speaker 1>because it used a graphical user interface and yes, which

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<v Speaker 1>was very similar to one that Xerox created, wasn't not Yes,

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<v Speaker 1>it was almost identical. But that's funny because future versions

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<v Speaker 1>of a program called Windows, people would accuse accuse Microsoft

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<v Speaker 1>of creating Windows to essentially recreate the macin toosh experience,

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<v Speaker 1>and the Macintosh experience was kind of recreating the Xerox experience. Well,

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<v Speaker 1>you know that shrewd guy over at Microsoft I can't

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<v Speaker 1>remember his name. Yeah, we'll get to him managed to

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<v Speaker 1>convince Alpha to let them license the micro the Macintosh

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<v Speaker 1>operating system so that they could build Windows. And and

0:13:19.160 --> 0:13:23.559
<v Speaker 1>the Macintosh was, at the time of its arrival, a

0:13:23.640 --> 0:13:28.679
<v Speaker 1>superior machine to the PC. It was it had a

0:13:28.720 --> 0:13:33.280
<v Speaker 1>better memory, had a better processor, UM, but it was

0:13:33.320 --> 0:13:36.520
<v Speaker 1>also more expensive, which you know what, Hey, some thing's

0:13:36.559 --> 0:13:40.400
<v Speaker 1>never change. And um also around this time was the

0:13:40.440 --> 0:13:45.280
<v Speaker 1>infamous Super Bowl add the nineteen four Super Bowl add. Now,

0:13:45.320 --> 0:13:48.080
<v Speaker 1>that was a Macintosh ad that was very Orwellian in nature.

0:13:48.120 --> 0:13:52.520
<v Speaker 1>It was this very dreary world where everyone was bald

0:13:52.559 --> 0:13:55.559
<v Speaker 1>and which you know I identify with, and um sitting

0:13:55.600 --> 0:13:57.600
<v Speaker 1>at desks and stuff. And then you had the female

0:13:57.640 --> 0:14:01.440
<v Speaker 1>athlete run in and her a hammer essentially through a

0:14:01.520 --> 0:14:04.400
<v Speaker 1>giant screen and it was very dramatic. Well, that was

0:14:04.440 --> 0:14:09.839
<v Speaker 1>the thing was that in three there weren't graphical user interfaces,

0:14:09.920 --> 0:14:13.360
<v Speaker 1>at least not on everyone's desktop. So um, that was

0:14:13.400 --> 0:14:16.120
<v Speaker 1>the point of the ad was that wouldn't be like

0:14:17.440 --> 0:14:21.480
<v Speaker 1>the book. Um So this was the big introduction for

0:14:21.520 --> 0:14:25.760
<v Speaker 1>the McIntosh in general. Was the the famous ad, right

0:14:25.880 --> 0:14:29.560
<v Speaker 1>and and surround this time also that um, Steve Jobs

0:14:29.560 --> 0:14:32.800
<v Speaker 1>brings in a guy to help run the Apple Company

0:14:32.880 --> 0:14:35.800
<v Speaker 1>to make it, you know, more successful against the PCs,

0:14:36.080 --> 0:14:40.560
<v Speaker 1>a guy named John Scully who was from Pepsi. And

0:14:40.800 --> 0:14:44.120
<v Speaker 1>this turned out to not be such a great decision.

0:14:44.440 --> 0:14:46.320
<v Speaker 1>I mean, in the end, I guess it was, but

0:14:47.120 --> 0:14:49.960
<v Speaker 1>not in the short term. Um So Jobs brings in Scully,

0:14:50.200 --> 0:14:55.480
<v Speaker 1>and Scully by five thinks Jobs is more of a

0:14:55.640 --> 0:15:01.120
<v Speaker 1>problem than an asset for Apple. Yeah, that that's true. Um,

0:15:01.280 --> 0:15:04.200
<v Speaker 1>you see jobs is Uh, he's got a bit of

0:15:04.240 --> 0:15:06.800
<v Speaker 1>a strong personality. Yeah, that's a that's a light way

0:15:06.800 --> 0:15:11.440
<v Speaker 1>of putting it. Yeah, very Yeah. He's known for um,

0:15:11.480 --> 0:15:15.600
<v Speaker 1>throwing things and people around. No, he's he's known for

0:15:15.600 --> 0:15:18.960
<v Speaker 1>throwing tantrums. He's known for he's known for throwing town

0:15:19.120 --> 0:15:21.280
<v Speaker 1>or maybe that's probably the wrong term for it, but

0:15:21.320 --> 0:15:23.840
<v Speaker 1>he is known for getting very very angry and making

0:15:23.880 --> 0:15:26.320
<v Speaker 1>sure people knew about it. Well, it's no secret that

0:15:27.240 --> 0:15:30.120
<v Speaker 1>in his days at Apple, when he takes someone off,

0:15:30.160 --> 0:15:34.400
<v Speaker 1>and he has been known to fire people, uh, with

0:15:34.520 --> 0:15:37.880
<v Speaker 1>a very hair trigger sort of spirit, it's called getting

0:15:37.920 --> 0:15:41.560
<v Speaker 1>steved um. And that's that's really no surprise. Here's the

0:15:41.560 --> 0:15:45.000
<v Speaker 1>thing was that Steve got steved so in n he

0:15:45.040 --> 0:15:47.760
<v Speaker 1>gets steved well sort if he decided they basically it

0:15:47.840 --> 0:15:50.560
<v Speaker 1>relegated him to second class or maybe even fifth class.

0:15:50.920 --> 0:15:52.840
<v Speaker 1>They pretty much stripped him of all his power. They

0:15:52.880 --> 0:15:55.880
<v Speaker 1>put him in a totally different building, which he dubbed Siberia,

0:15:56.280 --> 0:15:59.520
<v Speaker 1>and they put him on meaningless projects and nothing of

0:15:59.600 --> 0:16:01.960
<v Speaker 1>important has ever seemed to cross his desk. So eventually

0:16:01.960 --> 0:16:03.960
<v Speaker 1>he said, you know what, I get the message loud

0:16:04.000 --> 0:16:07.000
<v Speaker 1>and clear. I've done what I set out to do here,

0:16:07.120 --> 0:16:09.800
<v Speaker 1>and I'm not getting to do the things I want

0:16:09.840 --> 0:16:11.320
<v Speaker 1>to do. And if I can't do them here, I'll

0:16:11.320 --> 0:16:13.680
<v Speaker 1>do him somewhere else. So he took a little bit

0:16:13.680 --> 0:16:17.560
<v Speaker 1>of a break. He resigned from Apple, and then he

0:16:17.720 --> 0:16:22.600
<v Speaker 1>founded the Next corporation. Yeah. Now, uh, Steve had been

0:16:22.600 --> 0:16:27.080
<v Speaker 1>working on some different educational projects at Apple, and Next

0:16:27.160 --> 0:16:30.160
<v Speaker 1>was designed, or at least conceived in in Steve Jobs

0:16:30.160 --> 0:16:34.480
<v Speaker 1>had to be an educational computer system UM, and it

0:16:34.560 --> 0:16:37.720
<v Speaker 1>was more advanced. It was supposed to run cross platform

0:16:37.760 --> 0:16:41.200
<v Speaker 1>on different processors UM, and they actually did. They produced

0:16:41.360 --> 0:16:46.520
<v Speaker 1>hardware UM, an actual box plus an operating system. Right.

0:16:46.560 --> 0:16:49.840
<v Speaker 1>The problem though, was again the computer. The physical computers

0:16:49.840 --> 0:16:52.840
<v Speaker 1>were consider a lot of people consider him to be

0:16:52.840 --> 0:16:56.360
<v Speaker 1>too expensive, so they never really found a foothold UM

0:16:56.360 --> 0:16:58.160
<v Speaker 1>in the market. I mean they sold some, but they

0:16:58.160 --> 0:17:00.480
<v Speaker 1>didn't sell as many as they needed to and have. Ventually,

0:17:00.600 --> 0:17:04.280
<v Speaker 1>Jobs made the decision to get away from hardware and

0:17:04.359 --> 0:17:08.000
<v Speaker 1>concentrate mainly on software and operating systems. Although that machine

0:17:08.040 --> 0:17:12.960
<v Speaker 1>was pretty sexy looking, it was kind of bored cubish. Yeah. Um. Meanwhile,

0:17:13.000 --> 0:17:16.520
<v Speaker 1>at Apple things were going downhill and that's putting it

0:17:16.640 --> 0:17:18.639
<v Speaker 1>very mildly. They had come out with a whole string

0:17:18.720 --> 0:17:23.360
<v Speaker 1>of products that didn't make any sense. Um model numbers,

0:17:23.640 --> 0:17:27.720
<v Speaker 1>the quality that the box, the actual computers themselves, they

0:17:27.720 --> 0:17:31.840
<v Speaker 1>were not always they didn't meet they didn't meet the

0:17:31.880 --> 0:17:34.919
<v Speaker 1>earlier standards than Jobs hadn't demanded back when he was

0:17:34.960 --> 0:17:39.080
<v Speaker 1>in charge. And then so a decade goes by and uh,

0:17:39.160 --> 0:17:44.840
<v Speaker 1>and Apple is on the brink of bankruptcy. They the

0:17:44.920 --> 0:17:49.920
<v Speaker 1>company purchases uh, the next corporation, which you know now

0:17:50.040 --> 0:17:52.399
<v Speaker 1>Steve Jobs is now back under the umbrella of Apple,

0:17:52.560 --> 0:17:56.920
<v Speaker 1>and in fact, Jobs makes a move and essentially rests

0:17:57.040 --> 0:18:01.520
<v Speaker 1>control back so that he's charge of Apple again. And

0:18:01.920 --> 0:18:04.760
<v Speaker 1>I'm not so certain that that gil Amelia was very

0:18:04.800 --> 0:18:07.439
<v Speaker 1>sad about that. He seemed to be, uh, sort of

0:18:08.119 --> 0:18:09.960
<v Speaker 1>he seemed to be sort of happy with that, because

0:18:10.000 --> 0:18:14.520
<v Speaker 1>I think, um, you know, where Scully was not exactly

0:18:14.520 --> 0:18:18.240
<v Speaker 1>thrilled with jobs outlook on the on the computer company.

0:18:18.280 --> 0:18:21.399
<v Speaker 1>I think that uh, he had convinced Amelia that he

0:18:21.440 --> 0:18:23.760
<v Speaker 1>could do the you know, and do the work necessary.

0:18:23.760 --> 0:18:25.840
<v Speaker 1>And I think well a lot of people at the

0:18:25.880 --> 0:18:29.560
<v Speaker 1>time said that Apple didn't buy Next, they bought Steve

0:18:29.640 --> 0:18:34.760
<v Speaker 1>Jobs back, So you know, it's not as surprising. It's

0:18:34.800 --> 0:18:38.280
<v Speaker 1>not as surprising. Um, there was something else, another little

0:18:38.320 --> 0:18:41.119
<v Speaker 1>project that Steve Jobs worked on in the in the

0:18:41.160 --> 0:18:44.800
<v Speaker 1>meantime to uh, he bought a little a part of

0:18:44.800 --> 0:18:50.280
<v Speaker 1>the LucasArts Company, the Computer Animation Studio, for ten million dollars,

0:18:50.880 --> 0:18:54.240
<v Speaker 1>which would never amounted anything well under its original name,

0:18:54.280 --> 0:18:58.320
<v Speaker 1>but it changed his name to Pixar. Oh yeah, yeah,

0:18:58.359 --> 0:19:01.800
<v Speaker 1>Pixar of course, being the the movie company that brought

0:19:01.880 --> 0:19:05.160
<v Speaker 1>us such wonderful things as a toy story, a Bug's Life,

0:19:05.800 --> 0:19:13.880
<v Speaker 1>um in Incredibles, well come on, even even cars. So

0:19:14.359 --> 0:19:16.720
<v Speaker 1>but yeah, so they were in charge of that. So yeah,

0:19:16.760 --> 0:19:22.119
<v Speaker 1>that's Jobs was very savvy. He purchased that company. No no, no, no, no, no,

0:19:22.240 --> 0:19:25.360
<v Speaker 1>not savvy. He bought it for ten million dollars. And uh,

0:19:25.400 --> 0:19:28.439
<v Speaker 1>of course in two thousand six, Disney bought it in

0:19:28.520 --> 0:19:31.840
<v Speaker 1>an all stock purchase for seven point four billion dollars. Right,

0:19:31.920 --> 0:19:36.280
<v Speaker 1>that's savvy. Yeah yeah. But and of course now Jobs

0:19:36.440 --> 0:19:39.159
<v Speaker 1>Jobs is on the board for Disney, so there's that

0:19:39.280 --> 0:19:42.440
<v Speaker 1>as well. He owns part of the Disney So that's uh, yeah,

0:19:42.520 --> 0:19:45.119
<v Speaker 1>that was a good investment. Yeah, that's the reasonable. Now,

0:19:45.119 --> 0:19:46.959
<v Speaker 1>granted I don't have ten million to make those kind

0:19:47.000 --> 0:19:49.960
<v Speaker 1>of investments. Otherwise you would see me totally reeling zealing.

0:19:50.040 --> 0:19:54.840
<v Speaker 1>But anyway, Jobs gets back into Apple, he fires the

0:19:54.880 --> 0:19:58.360
<v Speaker 1>board and and hires a new board of six members.

0:19:58.920 --> 0:20:02.880
<v Speaker 1>Um and the and uh completely revamped all the line,

0:20:02.920 --> 0:20:07.199
<v Speaker 1>the product line, simplified everything. Um. And that's kind of

0:20:07.200 --> 0:20:09.680
<v Speaker 1>where you know, that's that's leading us up to present day.

0:20:09.880 --> 0:20:13.680
<v Speaker 1>His decisions to really streamline things, make things look really

0:20:13.720 --> 0:20:19.280
<v Speaker 1>really sexy. Uh, control everything from the ground up. That

0:20:19.400 --> 0:20:22.520
<v Speaker 1>was That's kind of what has defined Apple to this day.

0:20:22.560 --> 0:20:27.280
<v Speaker 1>It's very much a closed system. Um. And Job's point

0:20:27.280 --> 0:20:30.240
<v Speaker 1>of view is that that way he can guarantee quality.

0:20:30.280 --> 0:20:33.520
<v Speaker 1>So yeah, his system is closed and his machines are

0:20:33.520 --> 0:20:36.120
<v Speaker 1>more expensive, but they also look really nice and they

0:20:36.160 --> 0:20:40.600
<v Speaker 1>work yep. Um and uh, just a note before we

0:20:40.600 --> 0:20:44.440
<v Speaker 1>we go to Bill Gates. UM. You know now people

0:20:44.480 --> 0:20:48.119
<v Speaker 1>are concerned. I'm not sure exactly when this will be posted,

0:20:48.200 --> 0:20:53.119
<v Speaker 1>but it was announced in December two eight that Steve

0:20:53.200 --> 0:20:55.560
<v Speaker 1>Jobs would not be leading the keynote at the Macworld

0:20:55.640 --> 0:20:59.560
<v Speaker 1>Expo in January, which has caused some consternation because he's

0:20:59.560 --> 0:21:02.800
<v Speaker 1>had some health issues that his death was falsely reported,

0:21:03.160 --> 0:21:05.919
<v Speaker 1>and people are concerned now that he is so intertwined

0:21:05.920 --> 0:21:08.280
<v Speaker 1>with Apple and its future that if he if something

0:21:08.359 --> 0:21:09.960
<v Speaker 1>happens to him, if he steps down, or if he

0:21:10.000 --> 0:21:17.159
<v Speaker 1>were you know, horror. You know, he's been diagnosed with

0:21:17.200 --> 0:21:20.479
<v Speaker 1>pancreatic cancer. He had a surgery to remove the tumor

0:21:20.680 --> 0:21:23.320
<v Speaker 1>um a year after they discovered it, because he resisted

0:21:23.320 --> 0:21:26.960
<v Speaker 1>the surgery. But uh an Apple actually got some flak

0:21:27.080 --> 0:21:30.080
<v Speaker 1>for that because they didn't report that to shareholders. And

0:21:30.119 --> 0:21:32.959
<v Speaker 1>some people say, well, you know, when when your CEO

0:21:33.119 --> 0:21:39.159
<v Speaker 1>has been diagnosed with a potentially fatal um illness, the

0:21:39.240 --> 0:21:42.120
<v Speaker 1>shareholders have a right to know because that could completely

0:21:42.160 --> 0:21:45.880
<v Speaker 1>affect the shares of the company. Uh. The other side

0:21:45.880 --> 0:21:47.960
<v Speaker 1>of that is that it's a private matter. It's a

0:21:48.000 --> 0:21:51.159
<v Speaker 1>health matter, um and that's a sticky situation. But at

0:21:51.160 --> 0:21:55.200
<v Speaker 1>any rate, he seemed to make a pretty good recovery,

0:21:55.240 --> 0:21:58.760
<v Speaker 1>although people always comment on you know, he looks thin,

0:21:59.359 --> 0:22:03.399
<v Speaker 1>he's lost way, so people are are concerned. So there's

0:22:03.440 --> 0:22:06.000
<v Speaker 1>some concern that maybe jobs as health had something to

0:22:06.000 --> 0:22:08.200
<v Speaker 1>do with him stepping away. I don't think that that's

0:22:08.280 --> 0:22:10.960
<v Speaker 1>necessarily the case at all. It's just one of those

0:22:11.040 --> 0:22:15.040
<v Speaker 1>unfortunate coincidences that can lead you to a faulty conclusion.

0:22:15.160 --> 0:22:18.520
<v Speaker 1>Now that's not to say the conclusion is faulty. I

0:22:18.520 --> 0:22:21.440
<v Speaker 1>could be totally wrong, but I'm willing to believe them

0:22:21.440 --> 0:22:25.240
<v Speaker 1>on this one. UM. And I was gonna point out

0:22:25.240 --> 0:22:26.800
<v Speaker 1>one other thing before we move on to Bill Gates,

0:22:26.840 --> 0:22:31.040
<v Speaker 1>because it's an interesting counterpoint. Uh So, the Stanford Social

0:22:31.040 --> 0:22:35.080
<v Speaker 1>Innovation Review founder once referred to Steve Jobs as UM

0:22:35.480 --> 0:22:40.800
<v Speaker 1>are actually to Apple itself as America's least philanthropic company.

0:22:41.320 --> 0:22:46.960
<v Speaker 1>Um And in an Apple it h cut a lot

0:22:47.000 --> 0:22:51.400
<v Speaker 1>of its philanthropic UM programs. Uh and in a way

0:22:51.440 --> 0:22:57.000
<v Speaker 1>to to try and cut costs and never reinstituted them.

0:22:57.160 --> 0:22:59.640
<v Speaker 1>And I had no idea we could talk about Steve

0:22:59.720 --> 0:23:03.360
<v Speaker 1>Jobs that neither got a lot of Well, since we've

0:23:03.400 --> 0:23:05.800
<v Speaker 1>gone on so long, I'm guessing we should probably divide

0:23:05.800 --> 0:23:08.520
<v Speaker 1>this up and have a part too. Let's let's visit

0:23:08.640 --> 0:23:11.560
<v Speaker 1>Mr Gates in another podcast. Yeah, next week we'll we'll

0:23:11.600 --> 0:23:15.600
<v Speaker 1>tackle Billy Gates before we go. There's one other thing

0:23:15.640 --> 0:23:17.359
<v Speaker 1>I'd like to share that I think is really cool

0:23:17.400 --> 0:23:20.199
<v Speaker 1>about Steve Jobs. So, what's this amazing fact? So I

0:23:20.240 --> 0:23:22.720
<v Speaker 1>got one of these things that I just think is

0:23:22.760 --> 0:23:25.240
<v Speaker 1>really cool. Um. And it's the kind of thing that

0:23:25.560 --> 0:23:29.120
<v Speaker 1>a showman like Steve Jobs would pull out um back

0:23:29.160 --> 0:23:30.880
<v Speaker 1>when they were trying to find a way to turn

0:23:30.960 --> 0:23:35.040
<v Speaker 1>Apple around. Uh, Steve agreed to take a pay cut.

0:23:35.359 --> 0:23:39.640
<v Speaker 1>Oh yeah, he now makes as as the co founder,

0:23:39.720 --> 0:23:42.520
<v Speaker 1>chairman and CEO of Apple, he makes one dollar a

0:23:42.600 --> 0:23:44.959
<v Speaker 1>year in salary and now was so he could keep

0:23:44.960 --> 0:23:48.760
<v Speaker 1>his medical benefits. Of course he has compensated in other ways.

0:23:48.800 --> 0:23:55.200
<v Speaker 1>He gets a little stock which yeah, yeah, But it's

0:23:55.200 --> 0:23:59.359
<v Speaker 1>funny because with all the the automakers talking about ways

0:23:59.440 --> 0:24:02.520
<v Speaker 1>to do, you know, turn the companies around in Congress

0:24:02.520 --> 0:24:04.920
<v Speaker 1>giving them a hard time about it, that's one of

0:24:04.960 --> 0:24:06.920
<v Speaker 1>the things they've talked about doing is taking a pay

0:24:06.920 --> 0:24:10.199
<v Speaker 1>cut to a dollar a year or so. You know,

0:24:10.240 --> 0:24:13.320
<v Speaker 1>again an innovator, That sounds good. Well, until then, check

0:24:13.359 --> 0:24:15.640
<v Speaker 1>out some articles on how stuff works dot com. We've

0:24:15.680 --> 0:24:20.360
<v Speaker 1>got everything from iPods to Apple cloud computers on there

0:24:20.400 --> 0:24:23.600
<v Speaker 1>and that should keep you nice and entertainment educated throughout

0:24:23.640 --> 0:24:27.439
<v Speaker 1>the week before we hit Billy and we'll talk to

0:24:27.440 --> 0:24:31.280
<v Speaker 1>you again soon for more on this and thousands of

0:24:31.320 --> 0:24:34.800
<v Speaker 1>other topics. Does it how stuff works dot com? Let

0:24:34.840 --> 0:24:37.480
<v Speaker 1>us know what you think. Send an email to podcast

0:24:37.760 --> 0:24:43.640
<v Speaker 1>at how stuff works dot com. Brought to you by

0:24:43.640 --> 0:24:47.120
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