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Speaker 1: Get in touch with technology with tech Stuff from how

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Speaker 1: stuff Works dot com. Hey there, and welcome to tech Stuff.

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Speaker 1: I'm your host, Jonathan Strickland. I'm an executive producer at

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Speaker 1: how Stuff Works and I love all things tech. And

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Speaker 1: in our last episode, I talked about the many different

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Speaker 1: computers that appeared in the late seventies and early to

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Speaker 1: mid eighties as the home computer market began to coalesce.

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Speaker 1: But there were numerous contenders. Obviously, there were companies like

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Speaker 1: Texas Instruments and Commodore and Tandy, and they had all

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Speaker 1: put forth various computer systems onto the market. And while

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Speaker 1: the computers those and other companies made had an impact,

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Speaker 1: For example, the Commodore sixty four was the best selling

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Speaker 1: computer of all time, ultimately none of those machines stuck

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Speaker 1: around to define the market. Instead, there were essentially two

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Speaker 1: entities that one out over everyone else in very different ways,

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Speaker 1: and those were Apple and IBM. I'll talk about IBM

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Speaker 1: in an upcoming episode. We'll we'll learn how the company's

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Speaker 1: strategy played out. But and this and the next episode,

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Speaker 1: I'm going to focus on Apple and how it weathered

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Speaker 1: many storms to become the company it is today. I've

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Speaker 1: chatted about Apple in the past, from profiles on Steve

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Speaker 1: Jobs to an overview of the company's history. This episode

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Speaker 1: is mostly going to focus on what Apple was doing

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Speaker 1: in the seventies and eighties. The next episode will continue

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Speaker 1: through the late eighties and into the nineties, and we'll

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Speaker 1: investigate how Apple was able to outlast competitors despite some

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Speaker 1: extremely shaky corporate moves. And that's putting it lightly. First,

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Speaker 1: let's start at the beginning. The classic story of Apple

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Speaker 1: is that Steve Jobs and Steve Wozniak, both of whom

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Speaker 1: were scamps and computer enthusiasts, dropped out of college to

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Speaker 1: form their own computer company out of Steve Jobs as

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Speaker 1: family's garage. A third partner named Ron Wayne provided some

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Speaker 1: startup cash and wrote the operation manual. He also designed

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Speaker 1: the company's original logo. But the whole Apple was formed

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Speaker 1: inside a garage story is kind of an oversimplification. According

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Speaker 1: to Wozniak, it was a romanticized version of the real history.

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Speaker 1: Wosniak has said in interviews, specifically in an interview with Bloomberg,

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Speaker 1: that the garage story is mostly just that a story.

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Speaker 1: It's one of those stories that fits right into the

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Speaker 1: history of Silicon Valley because there are a lot of

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Speaker 1: companies that were said to have emerged from a garage

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Speaker 1: somewhere in the California area see also Google, Amazon, Hewlett Packard,

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Speaker 1: and even Disney, but Apple was not one of them.

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Speaker 1: When Wosniak, in jobs mainly wosnia let's be honest, designed

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Speaker 1: the first Apple computer, the Apple, and they didn't do

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Speaker 1: it in a garage. They did use. The garage is

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Speaker 1: kind of a halfway point between their workspace, which was

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Speaker 1: actually Steve Wozniak's bedroom, and the stores where they were

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Speaker 1: planning on selling their computer kit, the Apple one. They

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Speaker 1: would go to the garage make sure everything worked properly

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Speaker 1: before they would continue on to the stores. At least

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Speaker 1: that's what Wosniac said happened. Most accounts state that Wosniac

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Speaker 1: designed and built the printed circuit board that was the

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Speaker 1: heart and soul of the company's first computer. And if

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Speaker 1: you listen to my last episode, you know the real

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Speaker 1: brain on that circuit board was the six five zero

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Speaker 1: two microprocessor from Most Technologies that was a company that

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Speaker 1: Commodore had purchased. Wozniak also decided to design the computer

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Speaker 1: to run Basic Basic stands for Beginners all Purpose Symbolic

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Speaker 1: Instruction Code, and it's a high level programming language that

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Speaker 1: Thomas E. Kurtz and John G. Kimminey created back in

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Speaker 1: nineteens sixty four at Dartmouth College. Now they created it

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Speaker 1: as a teaching tool. They wanted something that would let

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Speaker 1: students build programs without having to create their own customized software.

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Speaker 1: By the time Wosniak was working on the Apple One,

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Speaker 1: it was common practice among many computer designers to hard

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Speaker 1: code Basic into the firmware of their machines, into the

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Speaker 1: read only memory or ROM. Wozniak wanted the Apple one

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Speaker 1: to be much more user friendly than the binary based

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Speaker 1: kit computers like the Altare eight hundred. Wosniac used hexadecimal

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Speaker 1: code to build a basic language assembler by hand, directly

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Speaker 1: into the Apple ones read only memory. Now, Ron Wayne

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Speaker 1: was busy working on the operations manual, and Steve Jobs

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Speaker 1: was kind of the hype man. He was marketing this

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Speaker 1: upcoming computer to anyone who would listen. It was nineteen

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Speaker 1: seventy six when the two introduced the Apple one computer

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Speaker 1: at a May meeting of the Homebrew Computer Club. This

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Speaker 1: was a hobbyist computer club in California, where people were

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Speaker 1: working with various kits that they had ordered and and

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Speaker 1: assembled computers out of all these different parts. One of

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Speaker 1: the attendees at that meeting was a guy named Paul Terrell,

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Speaker 1: who owned a computer store called the Bite Shop. He

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Speaker 1: made a deal with the Apple partners, and that deal

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Speaker 1: was to build fifty fully assembled computers, which he would

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Speaker 1: then purchase for five dollars apiece. A fully assembled computer

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Speaker 1: didn't mean that Apple one had all the bells and whistles.

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Speaker 1: In fact, it didn't have really that many bells and

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Speaker 1: whistles at all. It didn't have a display, it didn't

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Speaker 1: have a keyboard. Technically, the Apple one was a bare

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Speaker 1: circuit board housed in a wooden case. The partners took

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Speaker 1: out loans to buy the various components they needed to

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Speaker 1: make fifty of these computers. They had just one day

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Speaker 1: left to pay back those loans when they rolled up

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Speaker 1: to Terrell and delivered the Apple one computers. They weren't

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Speaker 1: as fully assembled as what Terrell is expecting, but he

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Speaker 1: did pay the founders enough for them to be able

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Speaker 1: to pay off those loans. At that stage, Ron Wayne

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Speaker 1: resigned from Apple. He had invested money in the company,

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Speaker 1: and he was worried that Apple was destined to crash

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Speaker 1: in on itself. He returned his ten percent share of

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Speaker 1: Apple ownership, and he was paid out the princely sum

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Speaker 1: of five hundred dollars. Now, in case you're the curious type,

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Speaker 1: on the day I am recording this, Apple's market capitalization

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Speaker 1: value is approximately eight hundred fifty four point one six

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Speaker 1: billion dollars with a B, so ten percent of that

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Speaker 1: company would be essentially about eighty five billion dollars. He

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Speaker 1: got out for five hundred. But of course there was

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Speaker 1: no way to know back then what would happen with Apple,

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Speaker 1: and there were plenty of times between Apple's founding and

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Speaker 1: today when it seemed like the company was on the

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Speaker 1: verge of bankruptcy and sometimes seemed was being too generous.

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Speaker 1: It really was on the virgin bankruptcy. Apple would go

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Speaker 1: on to sell Apple one kits for six hundred sixty

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Speaker 1: six dollars and sixty six cents. That price was likely

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Speaker 1: arrived at not just because it represented more money than

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Speaker 1: it costs to build the machines, but also because both

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Speaker 1: jobs in Wosniac were known to have a mischievous sense

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Speaker 1: of humor, though there is another story that said Steve

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Speaker 1: Jobs originally wanted to sell the Apple One for seven

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Speaker 1: hundred seventy seven dollars. Wozniak objected, saying that that was

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Speaker 1: too much to charge for the computer he was building.

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Speaker 1: He said, that's that's overcharging people. So he countered with

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Speaker 1: the six hundred sixty six dollar figure, saying he didn't

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Speaker 1: do it to be cheeky. He wasn't saying, oh, I'm

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Speaker 1: going to choose the number of the beast to be

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Speaker 1: the price of this computer. Rather, he just took seven

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Speaker 1: seven seven, and he subtracted a one from each of

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Speaker 1: those digits, and that's how he arrived at his price.

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Speaker 1: According to Wozniak, while Jobs in Wosniac worked on selling

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Speaker 1: and deliver ring Apple one kits, Wozniak was also looking

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Speaker 1: ahead at what should be the company's next step. He

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Speaker 1: wanted to create a computer that had everything a person

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Speaker 1: would need to get started. This would help push computers

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Speaker 1: out of the realm of just the dedicated hobbyists. It's

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Speaker 1: a very small slice of the population. They had time

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Speaker 1: and interest to learn how computers work, and so they

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Speaker 1: were willing to take something that was bare bones and

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Speaker 1: go the rest of the way to make it something

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Speaker 1: that was useful. That's not true with the general public.

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Speaker 1: They need something that's more robust, more user friendly. So

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Speaker 1: to do this, the computer had to contain all the

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Speaker 1: components necessary to work. He began to design the Apple

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Speaker 1: to the Apple two, use the first Apple computer design

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Speaker 1: as its foundation. It had the same most technology six

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Speaker 1: five oh tube microprocessor running at the same one mega

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Speaker 1: hurts clock speed. They had basic hard coded into the

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Speaker 1: Apple two's read only memory, but it also had stuff

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Speaker 1: the original Apple computer lacked, like a plastic case. Steve

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Speaker 1: Jobs concentrated on making the Apple to look esthetically pleasing,

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Speaker 1: while Wozniak concerned himself with the computer's innards. Jobs just

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Speaker 1: wanted to make sure that looked like a product that

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Speaker 1: people would feel compelled to buy. He wanted it to

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Speaker 1: be an appliance, something that would be a a ready

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Speaker 1: adoption into the standard American home, something akin to like

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Speaker 1: a refrigerator or a washing machine. It also had a

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Speaker 1: video connector that would let users link the Apple Too

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Speaker 1: to a television and use that as a monitor. With

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Speaker 1: such a TV, who could display up to sixteen colors

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Speaker 1: at low resolution and by low resolution, I mean really

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Speaker 1: low forty by forty eight pixels. At high resolution, which

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Speaker 1: was just two eighty pixels by one ninety two pixels,

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Speaker 1: it could only display six fixed colors. It could also

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Speaker 1: produce sound, and a lot of those early computers were silent.

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Speaker 1: They didn't have anything that could produce sound. The Apple

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Speaker 1: two entry came with four kilobytes of RAM, so if

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Speaker 1: you're buying the basic Apple two computer, four kilobytes of

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Speaker 1: random access memory was what you got. You could, however,

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Speaker 1: buy versions of the Apple two that had up to

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Speaker 1: sixty four kilobytes of random access memory. It had expansion slots,

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Speaker 1: eight of them, in fact, but the first one was

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Speaker 1: reserved for upgrades to the computers RAM or ROM. If

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Speaker 1: you were a pure hobbyist, you could even opt to

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Speaker 1: buy the computer's circuit board as a standalone product. You

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Speaker 1: would then have to supply the case, the keyboard, the display,

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Speaker 1: and other peripherals all on your own. The base model

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Speaker 1: of a fully assembled Apple two at four kilobytes of

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Speaker 1: RAM was one thousand, two hundred ninety eight dollars when

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Speaker 1: it hits store shelves. The forty eight kilobyte RAM version

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Speaker 1: sold for two thousand, six hundred thirty eight dollars, and

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Speaker 1: if you went bare bones with the circuit board, that

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Speaker 1: sets you back five bucks for the four kilobyte RAM version.

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Speaker 1: The computer debut in April nineteen seventy seven, almost a

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Speaker 1: year after the founding of the company, which was on

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Speaker 1: April Fool's Day of nineteen seventy six, and then it

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Speaker 1: would go on sale a little bit later in seventy seven.

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Speaker 1: A couple of months after that, Apple signed a big

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Speaker 1: deal with a company that would be both an ally

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Speaker 1: and a competitor over the years, and that company was Microsoft.

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Speaker 1: The deal was that Apple could use Microsoft's software called

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Speaker 1: Apple Soft Basic. The licensing agreement term was eight years

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Speaker 1: and cost Apple twenty one thousand dollars. Now, the reason

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Speaker 1: for the switch to Apple Soft Basic was that the

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Speaker 1: integer basic that Wozniak had designed for the Apple Too

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Speaker 1: had limitations. It didn't have support for floating point math,

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Speaker 1: which meant that you could have well, you had restrictions

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Speaker 1: essentially on what you could program on the Apple Too. Now,

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Speaker 1: Wosnia's reasoning originally for using integer basic was one it

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Speaker 1: was easier to program for or to code for, and

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Speaker 1: thus it would take less time to actually build into

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Speaker 1: the Apple too. But also he was thinking of the

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Speaker 1: Apple too as a computer for games and for programming games,

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Speaker 1: and at that time games didn't require sophisticated operations, so

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Speaker 1: there was no need to go more complicated, because what

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Speaker 1: Wozniak was thinking was that this Apple two was going

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Speaker 1: to be meant for less ambitious projects. Wozniak at that

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Speaker 1: time was already working on other technologies that would be

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Speaker 1: released in nineteen seventy eight. He didn't have time to

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Speaker 1: develop a new dialect of Basic, and so they decided

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Speaker 1: to go with Microsoft's solution. Apple employee Randy Wigginton, who

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Speaker 1: was a teenager at the time, helped adapt the Microsoft

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Speaker 1: designed Apple sauce for the Apple Too. He added in

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Speaker 1: some additional features in the process. Wigginton would go on

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Speaker 1: to become one of the more important people in the

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Speaker 1: Macintosh development team a few years later. Upon launch, the

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Speaker 1: external media device available for the Apple two was a

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Speaker 1: cassette drive. This used cassettes with magnetic tape to store information.

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Speaker 1: In nineteen seventy eight, Apple would introduce the Disc two

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Speaker 1: or disc close bracket open bracket because they use the

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Speaker 1: little brackets as Roman numerals at those times. I don't

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Speaker 1: know how you're supposed to say that. Apart from Disc

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Speaker 1: two it was a five and a quarter inch disk drive.

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Speaker 1: If you guys remember those, A lot of save icons

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Speaker 1: still look like discs, so maybe you know what a

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Speaker 1: five and a quarter inch disc looks like. And Apple

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Speaker 1: two's new operating system was DOSE three point one. Just kidding,

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Speaker 1: it's DOS. DOS three point one. DOS, by the way,

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Speaker 1: stands for disc Operating System, and DOSS is a generic term.

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Speaker 1: It's not it's not something doesn't mean that all operating

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Speaker 1: systems called DOSS are related. In fact, the Apple version

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Speaker 1: of DOSS is not related to MS DOS or IBMPC DOS.

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Speaker 1: A computer is only useful if you can buy or

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Speaker 1: build good soft air for it. The Apple, too, was

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Speaker 1: fortunate and that it was the first home computing platform

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Speaker 1: that could support a computer program called visit calc so

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Speaker 1: visual calculation if you if you are, vision calculation if

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Speaker 1: you prefer. This was a spreadsheet program capable of running

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Speaker 1: basic operations on figures entered into the spreadsheet. So for

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Speaker 1: the first time, a personal computer could run software that

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Speaker 1: small businesses and accountants depended upon to do their work.

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Speaker 1: It could speed up a laborious process considerably, and it

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Speaker 1: was far more affordable than the computers intended for big enterprises,

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Speaker 1: which were routinely around ten thousand dollars. The Apple Too

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Speaker 1: became a popular computer, not just because people were adopting

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Speaker 1: it for their home, but as a business machine for

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Speaker 1: various companies, as well as an educational tool in schools.

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Speaker 1: It was pretty much perfectly positioned for its time. In

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Speaker 1: nineteen seventy seven, Apple two sales hit only seven seventy

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Speaker 1: thousand dollars. Remember it didn't launch until the second half

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Speaker 1: of nineteen seventy seven, but they sold seven hundred seventy

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Speaker 1: thousand dollars worth of units. The following year, Wozniak launched

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Speaker 1: the disc To that perphal had a price tag of

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Speaker 1: four dollars, which was actually much lower than a lot

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Speaker 1: of other disk drives that were hitting the market at

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Speaker 1: that time, and Apples sales skyrocketed. They were boosted by

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Speaker 1: the components that were being released, like the disc To

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Speaker 1: as well as the killer app VisiCalc and by skyrocketed,

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Speaker 1: I mean that their sales increased more than tenfold. In

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Speaker 1: nineteen seventy eight, the company racked up seven point nine

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Speaker 1: million dollars in sales, So they went from seven hundred

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Speaker 1: seventy thousand in seventy seven to seven point nine million

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Speaker 1: dollars in seventy eight. That gave Apple a very strong

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Speaker 1: position and the home computer market. As other machines like

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Speaker 1: the Commodore Pet, the Atari four hundred and the Atari

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Speaker 1: eight hundred machines, and the TRS eighty we're all vying

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Speaker 1: for a spot, but Apple's position was not yet guaranteed.

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Speaker 1: I'll tell you a little bit more about this story

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Speaker 1: in just a second, but first let's take a quick

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Speaker 1: break to thank our sponsor. The success of the Apple

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Speaker 1: to encourage Wozniak and Jobs. But then something happened that

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Speaker 1: set the two at odds with one another. Jobs had

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Speaker 1: seen that visitalc really propelled sales of the Apple too,

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Speaker 1: and it turned the Apple too into a must have

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Speaker 1: computer for anyone who needed an easier way to perform

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Speaker 1: accounting and bookkeeping tasks. Wozniak had designed the Apple to

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Speaker 1: originally as a machine upon which you could program games

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Speaker 1: and do some simple software. But what if Apple went

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Speaker 1: after the business market on purpose instead of just kind

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Speaker 1: of accidentally falling upon it. That was a big move.

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Speaker 1: From a corporate point of view, IBM had a dominant

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Speaker 1: position in that realm. The company had yet to enter

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Speaker 1: into the home computer market, but it definitely had a

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Speaker 1: huge presence business machines. I mean, that's what part of

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Speaker 1: IBM stands for, right, business machines. Jobs saw this as

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Speaker 1: a chance to push Apple into the same league as IBM,

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Speaker 1: and he began to lead work on the Apple three computer.

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Speaker 1: Unlike the previous Apple computers, this one was intended to

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Speaker 1: be a business machine first and foremost, and according to Wozniak,

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Speaker 1: the other big difference between the Apple three and the

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Speaker 1: previous two computers that Wozniak had designed was that marketing

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Speaker 1: was in charge of the design process rather than engineering.

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Speaker 1: It was a marketing driven product, not an engineering driven product.

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Speaker 1: Wozniak said. This marketing focused approach created frustrations among the

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Speaker 1: development team, particularly when they were given seemingly impossible tasks.

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Speaker 1: One of those tasks was to design a computer with

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Speaker 1: a form factor that was literally too small to fit

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Speaker 1: all the necessary components inside it. This was not a

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Speaker 1: simple error on the part of marketing. It was an understandable,

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Speaker 1: though preventable mistake. At the time teams and Apple were

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Speaker 1: working on the Apple three. The f c C was

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Speaker 1: creating a new set of standards that computers were going

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Speaker 1: to have to follow with regard to radio frequency emissions.

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Speaker 1: Without those standards codified, without them actually set, Apple designers

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Speaker 1: couldn't be sure that the computer they were designing was

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Speaker 1: actually going to meet those standards. So there was a

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Speaker 1: danger that they could create a computer that would not

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Speaker 1: meet f CC standards and then it would be recalled

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Speaker 1: and that would be a huge waste of time, energy,

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Speaker 1: and money. So they decided they were going to make

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Speaker 1: the case out of aluminum, and that would help block

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Speaker 1: any radio frequency emissions and avoid problems further down the line.

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Speaker 1: It also would make the computer incredibly heavy. The big

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Speaker 1: problem was they settled on the case size and shape

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Speaker 1: based off the engineer's list of requirements early in the process.

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Speaker 1: So the engineers get a list of requests saying we

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Speaker 1: want the computer to be able to do X, Y

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Speaker 1: and z. The engineers look at the requests and they say,

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Speaker 1: all right, in order to do X, Y and Z,

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Speaker 1: these are the components that are going to have to

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Speaker 1: go into the computer. Here's the size that we're gonna

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Speaker 1: need to work inside, and then you have the case

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Speaker 1: folks saying all right, well, we're gonna design a case

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Speaker 1: that is of this size these dimensions, and then we're

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Speaker 1: gonna get started. And once you go over to get

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Speaker 1: the finalization of the chassis and you cast the mold

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Speaker 1: for the case, you kind of committed because that's a

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Speaker 1: fairly expensive process all in itself, and if you go

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Speaker 1: back to the drawing board, you've wasted all that time

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Speaker 1: and money. So once you've cast the mold, you're pretty

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Speaker 1: much stuck with the form factor you've chosen. The other

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Speaker 1: problem was that the management marketing was looking at what

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Speaker 1: the computer was going to be able to do instead,

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Speaker 1: you know, it would be great if it could also

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Speaker 1: do A, B and C in addition to X, Y

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Speaker 1: and z. And then the developers would say, you told

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Speaker 1: us you wanted x, y and z, and that's what

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Speaker 1: we told the people who are making the case, and

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Speaker 1: so the case is going to fit X, y and z,

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Speaker 1: but it can't fit x y and Z and A

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Speaker 1: B and C. And then marketing would say, make it fit,

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Speaker 1: and then developers would start to sweat bullets. This is

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Speaker 1: called feature creep in general, the idea that features keep

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Speaker 1: on creeping into the design of a product. It doesn't

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Speaker 1: have to be a computer, it could be literally any product.

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Speaker 1: Feature creep is a terrible thing to have happened to

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Speaker 1: you when you're working on one of these projects. If

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Speaker 1: you are not the one dictating feature creep, if you're

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Speaker 1: the one dictating it, then you just wonder, why is

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Speaker 1: this such a big deal? Why is this such a problem?

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Speaker 1: Come on, just at it. But if you're actually the

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Speaker 1: person who's trying to execute this, it's a huge problem

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Speaker 1: because every feature that's added creates more complications, in this

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Speaker 1: case literally In this case, the complication was that the

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Speaker 1: components were taking up way too much space there were

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Speaker 1: getting crammed together. In addition to that, Steve Jobs had

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Speaker 1: a specific design that he wanted that was really going

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Speaker 1: to cause a problem, which was that he did not

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Speaker 1: want there to be a fan inside this computer to

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Speaker 1: dissipate heat. Uh. The story goes that he felt that

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Speaker 1: the fans were too noisy and inelegant, and they kind

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Speaker 1: of violated his design principles of making a computer and appliance.

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Speaker 1: So Wozniak and several of his team began to feel

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Speaker 1: that Jobs, as ideas stressed form over function to a

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Speaker 1: point that was untenable and later WASNIA would say the

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Speaker 1: Apple three had a failure rate out in the field

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Speaker 1: because of concessions that were made in order to meet

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Speaker 1: the requirements that marketing had put down, but that were

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Speaker 1: not good engineering decisions. This was not great. Apple did

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Speaker 1: announce the Apple three in May during the National Computer Conference,

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Speaker 1: so they had pretty much committed themselves at that point.

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Speaker 1: The computers would eventually go on sale in the fall

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Speaker 1: of nineteen. So let's talk about some of the specs

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Speaker 1: of the Apple three and then talk about some of

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Speaker 1: the problems that the Apple three suffered. On paper, the

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Speaker 1: Apple three sounded great. It had a six five oh

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Speaker 1: two compatible micro processors, so the same style of microprocessor

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Speaker 1: as the Apple one and the Apple two. Uh. This one, however,

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Speaker 1: was made by Center Tech, not by most technologies, but

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Speaker 1: still it was a compatible processor is in that same

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Speaker 1: general family. The processor at a clock smeat of two

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Speaker 1: mega hurts, so essentially double what the Apple two was

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Speaker 1: capable of doing. The computer shipped with a hundred bytes

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Speaker 1: of RAM as the standard amount of memory that was

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Speaker 1: expandable all the way up to five kilobytes, so that

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Speaker 1: was great because with more memory you can run more

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Speaker 1: sophisticated applications and programs. It had an internal five and

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Speaker 1: a quarter inch floppy disk drive. This was the first

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Speaker 1: of Apples computers to have an incorporated drive built directly

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Speaker 1: into the case, so it wasn't an external drive that

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Speaker 1: sat next to the CPU unit. It was actually incorporated

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Speaker 1: into the case itself, which you know you often will

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Speaker 1: see with PCs these days if they still have a

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Speaker 1: floppy disk drive or an optical drive, they're usually built

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Speaker 1: into the main case. But for a while that was

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Speaker 1: not what you would find with home computers. They would

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Speaker 1: find an external drive that you would connect via cables

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Speaker 1: to your CPU um but this one had it built

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Speaker 1: into the case, so put it all onto a nice

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Speaker 1: form factor. Unlike earlier computers, the Apple three had a

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Speaker 1: separate keyboard from the main computer chassis, so that would

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Speaker 1: eventually become a standard characteristic for many computers moving forward,

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00:23:45,680 --> 00:23:48,240
Speaker 1: but at the time it was pretty standard have the

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Speaker 1: keyboard actually built into the case. So while the drives

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Speaker 1: were frequently external, the keyboard was incorporated directly into the

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Speaker 1: CPU case. For a lot of early computers, in fact,

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Speaker 1: a lot of Apples computers that follow this one would

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Speaker 1: also have the keyboard built directly into the chassis, but

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00:24:04,480 --> 00:24:07,399
Speaker 1: for this one it was separate. The Apple three also

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Speaker 1: had a brand new operating system called Apple s O S.

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00:24:12,160 --> 00:24:15,720
Speaker 1: S O S stood for Sophisticated Operating System, but perhaps

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Speaker 1: given the problems Apple three and and encountered, the traditional

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Speaker 1: interpretation of the letters S O S being used as

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00:24:23,480 --> 00:24:26,760
Speaker 1: a call for help would be more appropriate. While Wasnia

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00:24:26,880 --> 00:24:30,320
Speaker 1: criticized the hardware of the Apple three, he actually praised

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Speaker 1: the operating system. He later would declare that was the

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Speaker 1: best OS on any micro computer system at that time.

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Speaker 1: One problem the s O S had was that it

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Speaker 1: was not backwards compatible with the Apple two system, so

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Speaker 1: that meant you could not run Apple to software natively

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Speaker 1: on the Apple three. You could do it if you

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Speaker 1: used an Apple DOSS boot disk in the Apple three,

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Speaker 1: so you can actually run a program on the Apple

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00:24:57,800 --> 00:25:04,320
Speaker 1: three that would essentially emulate Apple too. Unfortunately, the demands

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Speaker 1: that Steve Jobs and his marketing team had placed on

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00:25:07,040 --> 00:25:11,760
Speaker 1: the design team resulted in a pretty unreliable computer. Lots

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Speaker 1: of people reported problems with the machines. According to Wozniak,

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Speaker 1: a hundred percent of them did. For one thing, these

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Speaker 1: machines got really hot. Now that's not a big surprise.

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Speaker 1: The case was made of aluminium, there was no fan

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Speaker 1: in there. The components were crammed together, so they would

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00:25:28,000 --> 00:25:31,400
Speaker 1: heat up inside these cases, and eventually that heat would

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00:25:31,440 --> 00:25:35,040
Speaker 1: be enough to warp the circuit try Sometimes chips would

432
00:25:35,080 --> 00:25:38,480
Speaker 1: become unseated from their positions on the circuit board, and

433
00:25:38,520 --> 00:25:41,320
Speaker 1: according to some accounts, a common way to fix this

434
00:25:41,440 --> 00:25:45,560
Speaker 1: problem was to physically lift the computer several inches off

435
00:25:45,560 --> 00:25:48,200
Speaker 1: a desk or table and then drop it, and that

436
00:25:48,240 --> 00:25:51,439
Speaker 1: would reseat the chips. I believe that falls under the

437
00:25:51,480 --> 00:25:55,520
Speaker 1: general category of what we call percussive maintenance. In other words,

438
00:25:55,640 --> 00:25:57,560
Speaker 1: when it breaks, you hit it and hope that it

439
00:25:57,600 --> 00:26:01,040
Speaker 1: works again. The Apple three quickly earned a reputation for

440
00:26:01,119 --> 00:26:05,000
Speaker 1: being unreliable. Can't imagine why. This had a huge impact

441
00:26:05,000 --> 00:26:08,080
Speaker 1: on sales, A negative one, that is. And even though

442
00:26:08,119 --> 00:26:11,000
Speaker 1: Apple would revise the design and release a couple of

443
00:26:11,119 --> 00:26:14,480
Speaker 1: upgraded versions later on, the Apple three never got much

444
00:26:14,520 --> 00:26:18,000
Speaker 1: momentum in the marketplace. Apple had to continue to depend

445
00:26:18,080 --> 00:26:21,320
Speaker 1: upon the Apple two platform sales to keep things going.

446
00:26:21,840 --> 00:26:25,240
Speaker 1: In the early nineteen eighties, the Apple to sustain the

447
00:26:25,280 --> 00:26:28,359
Speaker 1: company while other computers were getting a better foothold in

448
00:26:28,400 --> 00:26:31,520
Speaker 1: the market. So just as Apple had eyed ibm S

449
00:26:31,560 --> 00:26:34,680
Speaker 1: position in the corporate world, IBM was now looking at

450
00:26:34,720 --> 00:26:39,280
Speaker 1: home computers as a possible market. In one IBM released

451
00:26:39,280 --> 00:26:43,159
Speaker 1: the personal computer or PC. Now that term had been

452
00:26:43,160 --> 00:26:46,480
Speaker 1: around before IBM used it, and we often will use

453
00:26:46,520 --> 00:26:49,120
Speaker 1: personal computer as sort of a generic category for all

454
00:26:49,160 --> 00:26:52,240
Speaker 1: computers meant for home use, but at the time it

455
00:26:52,320 --> 00:26:54,520
Speaker 1: was very much the domain of IBM. So when you

456
00:26:54,560 --> 00:26:58,320
Speaker 1: said PC, you meant an IBM machine, and for years later,

457
00:26:58,520 --> 00:27:01,680
Speaker 1: if you said PC, you may in an IBM compatible machine,

458
00:27:02,000 --> 00:27:04,560
Speaker 1: and more specifically, you meant something that was running either

459
00:27:04,800 --> 00:27:09,520
Speaker 1: MS DOSS or later on Microsoft Windows. I'll talk more

460
00:27:09,560 --> 00:27:13,960
Speaker 1: about the PC in an upcoming episode of Tech Stuff

461
00:27:14,000 --> 00:27:18,120
Speaker 1: when we cover ibm s approach to the market. In two,

462
00:27:18,560 --> 00:27:21,840
Speaker 1: Commodore launched the Commodore sixty four home computer, and that

463
00:27:21,880 --> 00:27:23,719
Speaker 1: machine would go on to be the best selling computer

464
00:27:23,760 --> 00:27:26,879
Speaker 1: of all time. So Apple had a great head start

465
00:27:27,040 --> 00:27:29,480
Speaker 1: with the Apple too, but it was in danger of

466
00:27:29,560 --> 00:27:33,520
Speaker 1: becoming irrelative irrelevant excuse me, as other companies were putting

467
00:27:33,560 --> 00:27:36,320
Speaker 1: up challengers to the Apple two platform, and to make

468
00:27:36,359 --> 00:27:39,679
Speaker 1: matters worse around this time, Apple had to start playing

469
00:27:39,720 --> 00:27:42,960
Speaker 1: whack a mole with various companies that were offering up

470
00:27:43,080 --> 00:27:47,320
Speaker 1: clones of the Apple to computer. Apple chose not to

471
00:27:47,520 --> 00:27:51,360
Speaker 1: license its designs, including both its software and it's hardware.

472
00:27:51,880 --> 00:27:54,920
Speaker 1: They had made this decision that all Apple products were

473
00:27:55,000 --> 00:27:58,280
Speaker 1: to come from Apple itself, not third parties offering up

474
00:27:58,320 --> 00:28:01,720
Speaker 1: copies of the hardware or the official Apple software. But

475
00:28:01,800 --> 00:28:04,360
Speaker 1: of course that didn't stop companies from trying to do

476
00:28:04,400 --> 00:28:07,320
Speaker 1: that anyway. Some of them made blatant copies of the

477
00:28:07,320 --> 00:28:11,440
Speaker 1: Apple hardware. They were literally opening up Apple two computers

478
00:28:11,480 --> 00:28:14,399
Speaker 1: and copying the design as closely as they possibly could.

479
00:28:14,760 --> 00:28:19,080
Speaker 1: Other companies tried to accomplish the same result through reverse engineering,

480
00:28:19,240 --> 00:28:22,399
Speaker 1: so they weren't opening up an Apple computer and trying

481
00:28:22,400 --> 00:28:25,120
Speaker 1: to use the exact same components. They were studying how

482
00:28:25,160 --> 00:28:27,440
Speaker 1: the Apple two worked and trying to figure out how

483
00:28:27,440 --> 00:28:30,320
Speaker 1: to make a machine that worked exactly like the Apple too,

484
00:28:30,680 --> 00:28:34,200
Speaker 1: thus creating a semi plausible denial that they had copied

485
00:28:34,240 --> 00:28:38,160
Speaker 1: Apple's proprietary technology. One of the companies that did this

486
00:28:38,360 --> 00:28:42,440
Speaker 1: was called Franklin Computer Corporation, that created an Apple two

487
00:28:42,520 --> 00:28:46,080
Speaker 1: clone called the Franklin Ace that ended up being pretty popular.

488
00:28:47,000 --> 00:28:50,840
Speaker 1: Apple sued the Franklin Computer Corporation, and the US Court

489
00:28:50,880 --> 00:28:53,760
Speaker 1: would ultimately rule in favor of Apple, which was a

490
00:28:53,880 --> 00:28:58,080
Speaker 1: landmark decision because it established the computer software, including a

491
00:28:58,080 --> 00:29:02,320
Speaker 1: computer's operating system and need only memory firmware, could be

492
00:29:02,320 --> 00:29:06,840
Speaker 1: protected by copyright. The Franklin Ace was introduced in ninety two,

493
00:29:07,080 --> 00:29:09,600
Speaker 1: and Apple was eventually able to force the company to

494
00:29:09,680 --> 00:29:14,760
Speaker 1: stop selling the clone devices in nineteen eight, six years later.

495
00:29:14,920 --> 00:29:17,360
Speaker 1: So it was an important victory, but perhaps one that

496
00:29:17,440 --> 00:29:19,240
Speaker 1: happened a bit too late to be of much help

497
00:29:19,280 --> 00:29:22,880
Speaker 1: to Apple. There were numerous other Apple clones on the market.

498
00:29:23,080 --> 00:29:25,560
Speaker 1: In fact, some estimation state that there were about two

499
00:29:25,720 --> 00:29:29,880
Speaker 1: hundred different clones of the Apple two machines UH and

500
00:29:29,960 --> 00:29:32,800
Speaker 1: all of its descendants, so not just Apple two, but

501
00:29:33,040 --> 00:29:36,520
Speaker 1: Apple to E, Apple to C, Apple two, g S, etcetera.

502
00:29:37,280 --> 00:29:40,160
Speaker 1: The Apple was not able to sue all of these companies.

503
00:29:40,200 --> 00:29:43,760
Speaker 1: One of them, the Laser one, was actually a reverse

504
00:29:43,840 --> 00:29:47,680
Speaker 1: engineered version of Apple's software, so or in hardware, it

505
00:29:47,720 --> 00:29:52,320
Speaker 1: didn't copy it, it was reverse engineered, which eventually made

506
00:29:52,360 --> 00:29:55,880
Speaker 1: it determined to be a legal clone of the Apple too,

507
00:29:56,120 --> 00:29:58,240
Speaker 1: and a lot of the clones that were illegal were

508
00:29:58,240 --> 00:30:00,760
Speaker 1: in other countries, which made it trigg key for Apple

509
00:30:00,840 --> 00:30:04,120
Speaker 1: to do anything about it. Ultimately, the clones were eating

510
00:30:04,120 --> 00:30:07,160
Speaker 1: into Apple's sales for the Apple two platform, and the

511
00:30:07,200 --> 00:30:10,760
Speaker 1: company decided it needed to do something new. So what

512
00:30:10,800 --> 00:30:16,280
Speaker 1: was next? In Apple launched two new computers. One was

513
00:30:16,320 --> 00:30:19,040
Speaker 1: an update of the Apple to model called the Apple

514
00:30:19,080 --> 00:30:21,520
Speaker 1: to E. I had one of those when I was

515
00:30:21,560 --> 00:30:24,760
Speaker 1: a kid. The other was an experimental high end computer

516
00:30:24,920 --> 00:30:27,480
Speaker 1: called the Lisa. But let's start with Apple to E.

517
00:30:28,040 --> 00:30:31,800
Speaker 1: When the Apple Too E debut in January three, no

518
00:30:31,840 --> 00:30:33,880
Speaker 1: one could predict it was going to become one of

519
00:30:33,880 --> 00:30:38,040
Speaker 1: the most successful computers of all time. Internally, you wouldn't

520
00:30:38,040 --> 00:30:40,280
Speaker 1: guess that it would do so well because it had

521
00:30:40,320 --> 00:30:43,480
Speaker 1: the exact same microprocessor that both the Apple one and

522
00:30:43,520 --> 00:30:46,920
Speaker 1: Apple two had, that would be that six five O two,

523
00:30:47,080 --> 00:30:49,720
Speaker 1: and it was running at that one mega hurts clock speed,

524
00:30:49,800 --> 00:30:52,600
Speaker 1: so it wasn't going any faster. Really. The Apple to

525
00:30:52,720 --> 00:30:55,360
Speaker 1: E did get an operating system update, so it was

526
00:30:55,400 --> 00:30:58,480
Speaker 1: running on a new system called pro DOS, which was

527
00:30:58,520 --> 00:31:02,000
Speaker 1: evolved from that Apple three s OS operating system. It

528
00:31:02,000 --> 00:31:05,280
Speaker 1: had thirty two kilobytes of read only memory, upon which

529
00:31:05,320 --> 00:31:08,440
Speaker 1: Apple Soft Basic was burned, and it had sixty four

530
00:31:08,520 --> 00:31:12,160
Speaker 1: kilobytes of RAM that was upgradeable to a kilobytes using

531
00:31:12,160 --> 00:31:15,640
Speaker 1: an eight column card. Later, you could get third party

532
00:31:15,680 --> 00:31:17,959
Speaker 1: expansions that would allow the Apple to E to have

533
00:31:18,040 --> 00:31:20,760
Speaker 1: several megabytes of RAM, which would make it a really

534
00:31:20,840 --> 00:31:24,000
Speaker 1: versatile machine for lots of different projects. This was part

535
00:31:24,040 --> 00:31:25,800
Speaker 1: of the reason the Apple to E was able to

536
00:31:25,840 --> 00:31:29,240
Speaker 1: remain relevant despite relying on a CPU that was more

537
00:31:29,280 --> 00:31:32,440
Speaker 1: than five years old. When the Apple to E launched,

538
00:31:32,840 --> 00:31:36,720
Speaker 1: the two introduced another new feature in Apple products, garyy.

539
00:31:36,760 --> 00:31:41,360
Speaker 1: For this, you could type letters in lower case yeah.

540
00:31:41,440 --> 00:31:44,680
Speaker 1: Until the Apple to E you were restricted to upper

541
00:31:44,760 --> 00:31:47,800
Speaker 1: case letters, but now you had a shift and a

542
00:31:47,880 --> 00:31:50,960
Speaker 1: cap slut key on the Apple to E keyboard. The

543
00:31:50,960 --> 00:31:54,240
Speaker 1: Apple to eat could also support color displays, though I

544
00:31:54,280 --> 00:31:56,200
Speaker 1: remember the one we had when I was a kid

545
00:31:56,240 --> 00:32:00,160
Speaker 1: was a monochromatic display because I remember it being all green.

546
00:32:00,960 --> 00:32:03,840
Speaker 1: The Apple to E would get some enhancements later on

547
00:32:03,920 --> 00:32:06,840
Speaker 1: in its life cycle. If you combine the original to

548
00:32:07,080 --> 00:32:10,440
Speaker 1: E with the enhanced version that came later, the computer

549
00:32:10,520 --> 00:32:15,000
Speaker 1: remained in production at Apple for a decade. That's pretty incredible.

550
00:32:15,360 --> 00:32:18,880
Speaker 1: Even as the company pushed forward with other products, the

551
00:32:18,960 --> 00:32:22,480
Speaker 1: Apple two line remained a steady source of revenue. It

552
00:32:22,560 --> 00:32:24,840
Speaker 1: was also a bit of a sore spot for Wozniak

553
00:32:25,000 --> 00:32:28,760
Speaker 1: because he recognized how much of Apple's success depended upon

554
00:32:28,880 --> 00:32:32,360
Speaker 1: the workhorse that was the Apple to product line, but

555
00:32:32,440 --> 00:32:36,360
Speaker 1: he felt that the teams on those projects were regularly

556
00:32:36,520 --> 00:32:41,240
Speaker 1: overlooked in corporate meetings and messaging. Instead, Wosniac felt the

557
00:32:41,280 --> 00:32:46,880
Speaker 1: company's more experimental and often less successful ventures were elevated

558
00:32:46,920 --> 00:32:50,760
Speaker 1: over the teams responsible for providing the actual sales figures.

559
00:32:51,160 --> 00:32:55,000
Speaker 1: Wosniac would eventually leave Apple, not just because of these misgivings,

560
00:32:55,000 --> 00:32:57,800
Speaker 1: but also because he was severely injured in an airplane

561
00:32:57,800 --> 00:33:01,480
Speaker 1: crash and decided he would rather work engineering products than

562
00:33:01,760 --> 00:33:06,160
Speaker 1: being some sort of manager. By June three, Apple had

563
00:33:06,200 --> 00:33:10,680
Speaker 1: manufactured the one millionth Apple two computer. That's a big number,

564
00:33:11,120 --> 00:33:16,760
Speaker 1: but remember that Commodore sixty four ultimately sold seventeen million units,

565
00:33:17,280 --> 00:33:20,280
Speaker 1: so you just want to keep things in perspective. The

566
00:33:20,320 --> 00:33:22,880
Speaker 1: other computer I mentioned a minute ago was the Lisa.

567
00:33:23,160 --> 00:33:26,880
Speaker 1: This machine was another victim of design by committee and

568
00:33:26,960 --> 00:33:29,960
Speaker 1: also a victim of future creep. Steve Jobs wanted to

569
00:33:29,960 --> 00:33:34,000
Speaker 1: create a powerful computer, specifically with educational institutions in mind.

570
00:33:34,440 --> 00:33:37,560
Speaker 1: He named the project after his daughter but throughout the

571
00:33:37,640 --> 00:33:41,320
Speaker 1: design phase, the computer kept getting more complicated. This also

572
00:33:41,400 --> 00:33:44,320
Speaker 1: made it more expensive. By the time the Lisa was

573
00:33:44,360 --> 00:33:47,480
Speaker 1: ready to debut in nineteen eighty three, the price tag

574
00:33:47,560 --> 00:33:52,960
Speaker 1: hit an astronomical nine thousand, nine nine dollars. This was

575
00:33:53,000 --> 00:33:56,880
Speaker 1: in nineteen eighty three, so if we had just for inflation,

576
00:33:57,320 --> 00:34:01,920
Speaker 1: that would mean the computer would cost approximately twenty five thousand,

577
00:34:02,080 --> 00:34:05,600
Speaker 1: four hundred fifty dollars in today's money. For that price,

578
00:34:05,840 --> 00:34:09,160
Speaker 1: you better be able to ride the computer to working back. Obviously,

579
00:34:09,239 --> 00:34:12,960
Speaker 1: that put Lisa outside the realm of personal computers unless

580
00:34:13,000 --> 00:34:16,440
Speaker 1: you're a millionaire. So I'm not gonna dwell on the

581
00:34:16,520 --> 00:34:19,400
Speaker 1: Lisa here because that's not the focus of this show.

582
00:34:19,600 --> 00:34:23,520
Speaker 1: But the important thing was it did pull focus away

583
00:34:23,560 --> 00:34:27,120
Speaker 1: from the home computer market. Apple teams were being dedicated

584
00:34:27,160 --> 00:34:30,040
Speaker 1: to this project that was for something that wasn't gonna

585
00:34:30,320 --> 00:34:33,239
Speaker 1: be for the average consumer. Apple was seeing a lot

586
00:34:33,280 --> 00:34:35,879
Speaker 1: of success in that market and wasn't. The act felt

587
00:34:35,920 --> 00:34:39,080
Speaker 1: that it was a mistake to look at other areas.

588
00:34:40,000 --> 00:34:42,920
Speaker 1: It was also a black mark against Steve Jobs, because

589
00:34:43,640 --> 00:34:45,920
Speaker 1: you know, he had had two failures in a row.

590
00:34:46,000 --> 00:34:49,799
Speaker 1: The Apple three was something that he was really behind

591
00:34:49,960 --> 00:34:54,400
Speaker 1: and that didn't succeed and the Lisa was a colossal failure.

592
00:34:54,840 --> 00:34:58,080
Speaker 1: So it was two strikes against him in a row. Now,

593
00:34:58,120 --> 00:35:01,319
Speaker 1: a quick word on leadership at Apple. Steve Jobs and

594
00:35:01,360 --> 00:35:04,760
Speaker 1: Steve Wozniak were both new to the business scene when

595
00:35:04,800 --> 00:35:08,840
Speaker 1: they formed the Apple Company, and the first CEO of

596
00:35:08,880 --> 00:35:12,440
Speaker 1: Apple was brought in from outside. His name was Michael Scott,

597
00:35:12,760 --> 00:35:15,799
Speaker 1: had no relation to dunder Mifflin, and he served as

598
00:35:15,840 --> 00:35:20,480
Speaker 1: CEO from nineteen seventy seven to nineteen eight one. Scott

599
00:35:20,520 --> 00:35:23,200
Speaker 1: was a controversial leader. In nineteen eighty one, on a

600
00:35:23,280 --> 00:35:26,800
Speaker 1: day that became known as Black Wednesday, he fired half

601
00:35:26,920 --> 00:35:29,920
Speaker 1: of the Apple two team, saying that he believed their

602
00:35:30,000 --> 00:35:33,800
Speaker 1: jobs were redundant. He was pretty quickly removed a CEO

603
00:35:33,960 --> 00:35:37,680
Speaker 1: after that, and then Mike Markola, who was an early

604
00:35:37,760 --> 00:35:40,279
Speaker 1: investor in Apple and gets the credit for being the

605
00:35:40,400 --> 00:35:44,160
Speaker 1: third Apple employee, took over the role. He would serve

606
00:35:44,239 --> 00:35:46,960
Speaker 1: as CEO until nineteen eight three, but then would join

607
00:35:47,000 --> 00:35:49,400
Speaker 1: the board of directors as chairman and stay on until

608
00:35:49,480 --> 00:35:53,280
Speaker 1: nineteen More on him in a little bit. In nine,

609
00:35:53,840 --> 00:35:58,799
Speaker 1: the former CEO of PepsiCo, John Scully, joined Apple. He

610
00:35:58,840 --> 00:36:01,000
Speaker 1: had to deal with the fall out from Lisa, but

611
00:36:01,040 --> 00:36:03,920
Speaker 1: he was also at Apple while another project was nearing completion.

612
00:36:04,400 --> 00:36:07,520
Speaker 1: This project would ultimately define the future for Apple. It

613
00:36:07,600 --> 00:36:09,640
Speaker 1: was a project that Apple developers have been working on

614
00:36:09,680 --> 00:36:13,920
Speaker 1: since the late nineteen seventies, and it was called Macintosh.

615
00:36:14,560 --> 00:36:16,520
Speaker 1: I'll tell you more about that in just a second,

616
00:36:16,680 --> 00:36:19,760
Speaker 1: but first let's take another quick break to thank our sponsor.

617
00:36:26,960 --> 00:36:29,480
Speaker 1: Now we're gonna talk about Macintosh. But it's hard to

618
00:36:29,560 --> 00:36:33,120
Speaker 1: trace the actual origins of the Macintosh project, as finding

619
00:36:33,120 --> 00:36:36,040
Speaker 1: the exact moment to say here's the beginning is next

620
00:36:36,080 --> 00:36:39,720
Speaker 1: to impossible. There were talks of creating an innovative machine

621
00:36:39,920 --> 00:36:43,160
Speaker 1: while the Apple two was still in development, and even

622
00:36:43,200 --> 00:36:46,120
Speaker 1: when it was launching, there were talks about what's gonna

623
00:36:46,160 --> 00:36:50,000
Speaker 1: come next. Those discussions were energized after Steve Jobs and

624
00:36:50,080 --> 00:36:54,239
Speaker 1: some other Apple folks visited the Xerox Park facility. When

625
00:36:54,280 --> 00:36:57,759
Speaker 1: I did the Xerox series, I talked about this, uh,

626
00:36:57,760 --> 00:36:59,799
Speaker 1: Steve Jobs and his team got a chance to see

627
00:36:59,800 --> 00:37:02,799
Speaker 1: the innovations Xerox had been more or less sitting on

628
00:37:02,920 --> 00:37:07,080
Speaker 1: since nineteen seventy three. That included a graphic user interface

629
00:37:07,239 --> 00:37:10,960
Speaker 1: or gooey g u I and the computer mouse. Although

630
00:37:11,080 --> 00:37:13,520
Speaker 1: I should also point out the computer mouse did not

631
00:37:13,640 --> 00:37:18,919
Speaker 1: come out of park itself. Xerox essentially acquired the computer mouse,

632
00:37:18,960 --> 00:37:22,400
Speaker 1: but that's a discussion for a different episode. The talks

633
00:37:22,400 --> 00:37:25,160
Speaker 1: with an Apple, coupled with these concepts of a gooey

634
00:37:25,200 --> 00:37:28,879
Speaker 1: based operating system and a computer mouse input device, led

635
00:37:28,880 --> 00:37:31,960
Speaker 1: to a couple of big projects within the company. One

636
00:37:32,000 --> 00:37:36,200
Speaker 1: of those was Lisa, the failed educational computer I mentioned earlier,

637
00:37:36,280 --> 00:37:39,600
Speaker 1: and the other was the Macintosh. So the Macintosh was

638
00:37:39,680 --> 00:37:44,160
Speaker 1: a project that executives nearly scrapped on multiple occasions. At

639
00:37:44,200 --> 00:37:46,759
Speaker 1: one point, the team on the project had only four

640
00:37:46,920 --> 00:37:50,000
Speaker 1: people on it. They had to regularly argue for the

641
00:37:50,000 --> 00:37:53,880
Speaker 1: projects survival. Jeff Raskin was the chief champion of the

642
00:37:53,960 --> 00:37:57,120
Speaker 1: Macintosh in the early stages. He was the lead voice

643
00:37:57,160 --> 00:38:00,600
Speaker 1: of the project until nineteen one when Steve Jobs would

644
00:38:00,680 --> 00:38:05,640
Speaker 1: join the Macintosh team. So Jobs had been booted from

645
00:38:05,680 --> 00:38:09,040
Speaker 1: the Lisa project in nineteen eight one after team members

646
00:38:09,280 --> 00:38:12,800
Speaker 1: were complaining to the CEO. They were saying that Steve

647
00:38:12,880 --> 00:38:18,600
Speaker 1: jobs demands were unreasonable. He was getting really interfering with

648
00:38:18,680 --> 00:38:22,560
Speaker 1: their work and moreover, the whole the whole process was untenable.

649
00:38:22,640 --> 00:38:24,680
Speaker 1: It was it was making it impossible for them to

650
00:38:24,680 --> 00:38:28,960
Speaker 1: do their jobs. So They said that because of Jobs involvement,

651
00:38:29,000 --> 00:38:32,480
Speaker 1: the Lisa project was suffering from feature bloat, including what

652
00:38:32,600 --> 00:38:36,919
Speaker 1: was then a massive and massively expensive amount of RAM

653
00:38:36,960 --> 00:38:39,560
Speaker 1: at one whole megabyte at the time, that was a

654
00:38:39,600 --> 00:38:44,200
Speaker 1: whole bunch, and so executive leadership stepped in and removed

655
00:38:44,400 --> 00:38:47,080
Speaker 1: Jobs from the Lisa project, and then he migrated over

656
00:38:47,160 --> 00:38:49,600
Speaker 1: to Macintosh, and he brought some of the developers of

657
00:38:49,680 --> 00:38:53,200
Speaker 1: Lisa along with him. Now, that caused some friction in

658
00:38:53,200 --> 00:38:56,400
Speaker 1: the Macintosh team, but many on that project credit Jobs

659
00:38:56,400 --> 00:39:00,440
Speaker 1: with providing some valuable insight. First, he was a genius

660
00:39:00,480 --> 00:39:03,880
Speaker 1: when it came to making a user friendly physical form factor.

661
00:39:04,280 --> 00:39:08,520
Speaker 1: The Macintosh design avoided the mistakes of Lisa. Jobs thought

662
00:39:08,520 --> 00:39:11,160
Speaker 1: that Macintosh was a work of art, and as such,

663
00:39:11,200 --> 00:39:14,680
Speaker 1: he arranged for the entire design team to sign the

664
00:39:14,760 --> 00:39:19,000
Speaker 1: case mold for the Macintosh in two The mold was

665
00:39:19,080 --> 00:39:22,799
Speaker 1: used for nearly all Macintosh computer cases until nine six,

666
00:39:23,160 --> 00:39:26,200
Speaker 1: So if you bought a Macintosh from that era and

667
00:39:26,239 --> 00:39:28,960
Speaker 1: you opened up the case and looked inside, you would

668
00:39:29,000 --> 00:39:31,760
Speaker 1: be able to see the signatures of the design team

669
00:39:32,000 --> 00:39:35,399
Speaker 1: on the inside of that case. But Jobs also play

670
00:39:35,520 --> 00:39:38,360
Speaker 1: some tough restrictions on the project. One was that he

671
00:39:38,480 --> 00:39:41,719
Speaker 1: demanded the original Macintosh ship with no more than a

672
00:39:41,800 --> 00:39:46,480
Speaker 1: hundes of RAM memory was really expensive, and Jobs did

673
00:39:46,480 --> 00:39:48,600
Speaker 1: not want to see the price tag of the Macintosh

674
00:39:49,160 --> 00:39:52,919
Speaker 1: balloon the way Lisa's did, and the original design team

675
00:39:52,920 --> 00:39:55,399
Speaker 1: of the Macintosh actually wanted the price to be even lower.

676
00:39:55,440 --> 00:39:57,800
Speaker 1: They were hoping to keep it out around a thousand dollars.

677
00:39:58,160 --> 00:40:00,840
Speaker 1: Steve Jobs had already added an features that was going

678
00:40:00,880 --> 00:40:03,160
Speaker 1: to make that impossible, but he did not want it

679
00:40:03,200 --> 00:40:06,640
Speaker 1: to run away from him like Lisa. This memory restriction

680
00:40:06,760 --> 00:40:09,280
Speaker 1: was also really hard to work with because the graphic

681
00:40:09,360 --> 00:40:13,120
Speaker 1: user interface required a lot of computer memory just a function,

682
00:40:13,480 --> 00:40:16,399
Speaker 1: which meant if you executed a command, there was only

683
00:40:16,440 --> 00:40:19,520
Speaker 1: a limited amount of memory left over to handle the job.

684
00:40:19,920 --> 00:40:22,400
Speaker 1: In fact, if you wanted to just copy one floppy

685
00:40:22,480 --> 00:40:26,840
Speaker 1: disks contents onto a second blank floppy disk, you'd actually

686
00:40:26,840 --> 00:40:29,880
Speaker 1: have to switch the two discs out multiple times and

687
00:40:29,880 --> 00:40:32,399
Speaker 1: would take several minutes to complete the task because there

688
00:40:32,440 --> 00:40:35,200
Speaker 1: just wasn't enough space in the computer's memory to handle

689
00:40:35,239 --> 00:40:38,759
Speaker 1: all of the operation. The Macintosh did not use a

690
00:40:38,840 --> 00:40:42,280
Speaker 1: six five O two microprocessor the way the earlier Apple

691
00:40:42,360 --> 00:40:46,600
Speaker 1: computers had. It relied on a Motorola sixty eight thousand

692
00:40:46,680 --> 00:40:50,000
Speaker 1: chips six eight zero zero zero, and it had a

693
00:40:50,040 --> 00:40:53,319
Speaker 1: seven point eight three mega hurts clock speed. It also

694
00:40:53,360 --> 00:40:56,360
Speaker 1: had a monochromatic screen with the resolution of five hundred

695
00:40:56,400 --> 00:40:59,480
Speaker 1: twelve by three forty two. Steve Jobs wanted to go

696
00:40:59,560 --> 00:41:02,359
Speaker 1: monochrome attic because you could go higher resolution to make

697
00:41:02,480 --> 00:41:05,920
Speaker 1: the everything on the screen look more crisp, and so

698
00:41:05,960 --> 00:41:08,160
Speaker 1: he didn't want to incorporate color because he felt that

699
00:41:08,160 --> 00:41:12,920
Speaker 1: that would compromise on resolution. The Macintosh featured several ports

700
00:41:12,920 --> 00:41:15,880
Speaker 1: for peripherals, and it shipped with a computer mouse, and

701
00:41:15,920 --> 00:41:19,920
Speaker 1: it launched in January four with a big marketing campaign

702
00:41:19,920 --> 00:41:22,960
Speaker 1: to differentiate it from what Apple claimed were the boring

703
00:41:23,080 --> 00:41:27,239
Speaker 1: limited computers like the IBM models, and it cost two

704
00:41:27,280 --> 00:41:33,040
Speaker 1: thousand four on launch. Within that same year, Apple would

705
00:41:33,080 --> 00:41:36,080
Speaker 1: release an updated version of the mac with five twelve

706
00:41:36,239 --> 00:41:40,440
Speaker 1: kilobytes of memory. This was done in defiance of Steve

707
00:41:40,520 --> 00:41:43,959
Speaker 1: Jobs's insistence to keep memory down to limit the cost.

708
00:41:44,120 --> 00:41:47,360
Speaker 1: In fact, Apple would end up marketing this new Macintosh

709
00:41:47,360 --> 00:41:49,880
Speaker 1: with a campaign that alluded to the fact that the

710
00:41:50,000 --> 00:41:54,319
Speaker 1: designers made these upgrades without the consent of leadership. But

711
00:41:54,520 --> 00:41:57,479
Speaker 1: these episodes are meant to focus on how Apple got

712
00:41:57,560 --> 00:42:00,960
Speaker 1: its position in the marketplace. The Apple two had been

713
00:42:00,960 --> 00:42:04,000
Speaker 1: a huge success, but the computers following it had not

714
00:42:04,280 --> 00:42:07,120
Speaker 1: done so well. The Apple three was a technical and

715
00:42:07,200 --> 00:42:11,680
Speaker 1: commercial failure. The Lisa was incredibly expensive and had very

716
00:42:11,719 --> 00:42:14,120
Speaker 1: few interested parties willing to pony up the cash for

717
00:42:14,160 --> 00:42:16,399
Speaker 1: what appeared to be an experimental system. You could call

718
00:42:16,480 --> 00:42:20,040
Speaker 1: that a complete flop. The Apple to E was doing well,

719
00:42:20,360 --> 00:42:22,919
Speaker 1: but it was essentially an Apple two with a few

720
00:42:22,960 --> 00:42:26,360
Speaker 1: minor enhancements, and the company couldn't place all its bets

721
00:42:26,480 --> 00:42:31,360
Speaker 1: on a rapidly aging platform. So could the Macintosh save

722
00:42:31,480 --> 00:42:35,440
Speaker 1: the company? Well, that was the initial hope. Apple was

723
00:42:35,480 --> 00:42:38,360
Speaker 1: putting forth a lot of effort to make McIntosh a success.

724
00:42:38,760 --> 00:42:42,080
Speaker 1: The design included many proprietary components to make it more

725
00:42:42,160 --> 00:42:45,760
Speaker 1: difficult to clone the Macintosh than the Apple two platform.

726
00:42:45,800 --> 00:42:49,120
Speaker 1: The advertising campaign was more than a little ostentatious, with

727
00:42:49,160 --> 00:42:52,280
Speaker 1: a famous ad shown during the Super Bowl. That commercial

728
00:42:52,320 --> 00:42:55,320
Speaker 1: compared the established computers in the workplace. In other words,

729
00:42:55,360 --> 00:43:00,279
Speaker 1: IBM machines as big brother in an orwellianlike environment, the

730
00:43:00,320 --> 00:43:04,160
Speaker 1: Macintosh was poised to break free of the shackles or something.

731
00:43:04,640 --> 00:43:06,680
Speaker 1: The commercial was a big hit. It was directed by

732
00:43:06,760 --> 00:43:11,080
Speaker 1: Ridley Scott of Hollywood fame, but would the commercial move

733
00:43:11,280 --> 00:43:15,400
Speaker 1: units would boost sales so that Apple could wean itself

734
00:43:15,520 --> 00:43:18,600
Speaker 1: off of the Apple two platform and move into its

735
00:43:18,680 --> 00:43:21,879
Speaker 1: next phase as a company. When the Macintosh was still

736
00:43:21,880 --> 00:43:24,640
Speaker 1: in the planning stages in the late seventies, Apple had

737
00:43:24,719 --> 00:43:27,840
Speaker 1: high hopes for the platform. In fact, initial projections in

738
00:43:27,880 --> 00:43:31,200
Speaker 1: a business plan dating to nineteen eighty one said that

739
00:43:31,320 --> 00:43:33,759
Speaker 1: Apple was going to try and sell two point to

740
00:43:34,040 --> 00:43:38,879
Speaker 1: million Macintosh computers between nineteen eighty two and nineteen eighty five.

741
00:43:39,160 --> 00:43:43,800
Speaker 1: That would be about forty seven thousand machines a month. Obviously,

742
00:43:43,840 --> 00:43:46,880
Speaker 1: that was not gonna happen because project delays and feature creep,

743
00:43:47,200 --> 00:43:50,560
Speaker 1: as well as Steve jobs general involvement, had delayed the

744
00:43:50,600 --> 00:43:53,560
Speaker 1: release of the Macintosh to nineteen eighty four. That meant

745
00:43:53,560 --> 00:43:56,080
Speaker 1: Apple had to write off two years of sales from

746
00:43:56,080 --> 00:44:01,040
Speaker 1: its initial projections. Further, after hot sales in the Macintosh

747
00:44:01,080 --> 00:44:05,720
Speaker 1: first debuted, the figures slowed down considerably to five thousand

748
00:44:05,800 --> 00:44:09,279
Speaker 1: units per month. Apple was falling far short of those

749
00:44:09,320 --> 00:44:13,640
Speaker 1: optimistic projections that the company had made. In part of

750
00:44:13,640 --> 00:44:17,440
Speaker 1: the problem was the price. That was a bit of it,

751
00:44:17,520 --> 00:44:21,640
Speaker 1: but part of the problem was also that the there

752
00:44:21,719 --> 00:44:24,279
Speaker 1: was just not any software for the Macintosh. I mean,

753
00:44:24,560 --> 00:44:27,640
Speaker 1: the gooey interface was taking up a lot of RAM,

754
00:44:27,680 --> 00:44:30,000
Speaker 1: the cost of the computer was high. But both of

755
00:44:30,000 --> 00:44:32,439
Speaker 1: those were problems that you could probably get around if

756
00:44:32,480 --> 00:44:36,040
Speaker 1: there were stuff to do on the Macintosh. There was

757
00:44:36,160 --> 00:44:40,200
Speaker 1: very limited programming. Apple offered up the mac Wright program

758
00:44:40,200 --> 00:44:42,399
Speaker 1: that was kind of a word processing program, and there

759
00:44:42,440 --> 00:44:44,880
Speaker 1: was an art program called mac Paint, and then there

760
00:44:44,880 --> 00:44:47,840
Speaker 1: were a few other applications, but that was it. Apple

761
00:44:47,880 --> 00:44:51,560
Speaker 1: to software was not compatible with the Macintosh platform. And

762
00:44:51,640 --> 00:44:54,319
Speaker 1: so while the IBM computers on the market might not

763
00:44:54,440 --> 00:44:57,880
Speaker 1: have been as user friendly as the Macintosh, and they

764
00:44:57,960 --> 00:45:00,440
Speaker 1: might not have had a graphic user inter face the

765
00:45:00,440 --> 00:45:02,920
Speaker 1: way the Macintosh did, they might not have had a

766
00:45:03,000 --> 00:45:06,839
Speaker 1: useful input device like the mouse, they did have a

767
00:45:06,960 --> 00:45:10,319
Speaker 1: very large software library, which meant you could do a

768
00:45:10,360 --> 00:45:13,759
Speaker 1: lot more stuff on an IBM compatible computer than you

769
00:45:13,800 --> 00:45:17,160
Speaker 1: could on a Macintosh. The lackluster sales of the first

770
00:45:17,239 --> 00:45:22,240
Speaker 1: Macintosh created severe tension with an Apple, particularly between the CEO,

771
00:45:22,480 --> 00:45:27,600
Speaker 1: John Scully and Steve Jobs. By those tensions had reached

772
00:45:27,600 --> 00:45:31,440
Speaker 1: a point of no return. Scully removed Jobs from the

773
00:45:31,480 --> 00:45:34,680
Speaker 1: Macintosh team, and they've been struggling to meet jobs as

774
00:45:34,719 --> 00:45:37,799
Speaker 1: expectations while delivering upon what they thought would be a

775
00:45:37,840 --> 00:45:41,560
Speaker 1: good computer well suited for its intended market. Jobs was

776
00:45:41,600 --> 00:45:44,400
Speaker 1: pushed off to a remote part of the company's offices

777
00:45:44,840 --> 00:45:47,800
Speaker 1: and he was left there. He went to the board

778
00:45:47,840 --> 00:45:50,200
Speaker 1: to protest this. He said, Hey, do you know what

779
00:45:50,280 --> 00:45:52,239
Speaker 1: the CEO is doing. You see what he's doing here.

780
00:45:52,239 --> 00:45:55,279
Speaker 1: He's removing me from my my duties and I've got

781
00:45:55,320 --> 00:46:00,600
Speaker 1: nothing to do. The board, which included Mike Markola, sided

782
00:46:00,640 --> 00:46:04,160
Speaker 1: with Scully and said, yeah, but you're kind of part

783
00:46:04,160 --> 00:46:08,160
Speaker 1: of the problems, so sorry. What happened next is a

784
00:46:08,200 --> 00:46:12,200
Speaker 1: matter of some dispute. Ultimately, what matters is Jobs and

785
00:46:12,239 --> 00:46:15,480
Speaker 1: Apple parted company at this point. Now some say that

786
00:46:15,600 --> 00:46:19,800
Speaker 1: Jobs quit. Jobs said that he had been fired. Either way,

787
00:46:19,840 --> 00:46:22,960
Speaker 1: the co founder was out of the company. Wozniak was

788
00:46:23,080 --> 00:46:26,480
Speaker 1: also out after his airplane accident and his general disagreements

789
00:46:26,480 --> 00:46:29,120
Speaker 1: with the direction of the company. So at this point,

790
00:46:29,239 --> 00:46:32,600
Speaker 1: Apple is a company that has precisely one or you

791
00:46:32,600 --> 00:46:36,040
Speaker 1: could argue one and a half successes under its belt,

792
00:46:36,480 --> 00:46:38,680
Speaker 1: and that would be the Apple two platform and the

793
00:46:38,719 --> 00:46:43,240
Speaker 1: Apple to E computer. But another computer came out around

794
00:46:43,320 --> 00:46:47,120
Speaker 1: the same time as the Macintosh and the Macintosh itself

795
00:46:47,320 --> 00:46:50,640
Speaker 1: wasn't a lost cause obviously, So in the next episode,

796
00:46:50,800 --> 00:46:53,480
Speaker 1: I'll talk about how Apple carried on during this era,

797
00:46:53,800 --> 00:46:57,400
Speaker 1: how it nearly sunk under unsteady leadership, and how it

798
00:46:57,440 --> 00:46:59,839
Speaker 1: was able to come back from the brink of bankruptcy.

799
00:47:00,239 --> 00:47:03,279
Speaker 1: And then in the next episode after that, we'll take

800
00:47:03,280 --> 00:47:05,600
Speaker 1: a look at ibm s journey to the home computer

801
00:47:05,680 --> 00:47:08,680
Speaker 1: market and how it took a very different course. If

802
00:47:08,719 --> 00:47:12,000
Speaker 1: you guys have suggestions for future topics for tech Stuff,

803
00:47:12,320 --> 00:47:13,680
Speaker 1: get in touch with me and let me know what

804
00:47:13,719 --> 00:47:16,200
Speaker 1: they are. The email address for the show is tech

805
00:47:16,280 --> 00:47:18,960
Speaker 1: Stuff at how stuff works dot com, or you can

806
00:47:19,040 --> 00:47:21,520
Speaker 1: drop me a line on Facebook or Twitter using the

807
00:47:21,560 --> 00:47:26,160
Speaker 1: handle tech stuff hs W. Join us on Instagram follow us.

808
00:47:26,160 --> 00:47:28,320
Speaker 1: You can see all sorts of behind the scenes goodies

809
00:47:28,360 --> 00:47:31,160
Speaker 1: back there. And also if you want to watch me

810
00:47:31,239 --> 00:47:34,920
Speaker 1: record this show live, go to twitch dot tv slash

811
00:47:35,000 --> 00:47:37,880
Speaker 1: tech Stuff. There's a schedule there tells you when I record.

812
00:47:37,920 --> 00:47:40,840
Speaker 1: It's typically on Wednesdays and Fridays. You can watch me

813
00:47:41,239 --> 00:47:43,560
Speaker 1: in the studio and even join a chat room and

814
00:47:43,640 --> 00:47:46,080
Speaker 1: say funny things to me or serious things if you like.

815
00:47:46,400 --> 00:47:49,239
Speaker 1: You know, whatever floats your boat really and I'll talk

816
00:47:49,280 --> 00:47:57,920
Speaker 1: to you again really soon for more on this and

817
00:47:58,000 --> 00:48:00,560
Speaker 1: bathans of other topics because it has to works. Dot

818
00:48:00,560 --> 00:48:10,560
Speaker 1: com