WEBVTT - How Apple Survived the PC Wars: Part Two

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<v Speaker 1>Get in text with technology with tech Stuff from how

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<v Speaker 1>stuff Works dot com. Hey there, and welcome to tech Stuff.

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<v Speaker 1>I'm your host, Jonathan Strickland. I'm an executive producer with

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<v Speaker 1>How Stuff Works and I love all things tech. And

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<v Speaker 1>we're going to continue our discussion about how Apple survived

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<v Speaker 1>the PC Wars. So if you haven't heard part one,

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<v Speaker 1>that was last week's or the last episode rather, you

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<v Speaker 1>should go and listen to that. The episode before that

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<v Speaker 1>was all about obscure or semi obscure computers that time

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<v Speaker 1>has forgotten, So computers that came out in the seventies

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<v Speaker 1>and eighties that did not stand the test of time.

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<v Speaker 1>So these are all sort of part of kind of

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<v Speaker 1>a series about computers and why the computer landscape is

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<v Speaker 1>the way it is today. Why don't we have a

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<v Speaker 1>Commodore sixty four, a really you know, would be like

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<v Speaker 1>a Commodore like two thousand forty eight or something at

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<v Speaker 1>this point. Why don't we have that? Instead? We've got

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<v Speaker 1>these various Windows based machines and Macintosh machines or mac machines.

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<v Speaker 1>Why is that? So we're looking at the Apple side

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<v Speaker 1>of that story and continuing that story today. Uh. In

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<v Speaker 1>the last episode, I talked about the early history of

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<v Speaker 1>Apple computers and how the company hit a home run

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<v Speaker 1>with the Apple two platform, but then found itself on

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<v Speaker 1>shaky ground. When Apple launched the Macintosh in night four,

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<v Speaker 1>the company was still depending upon revenue generated by Apple

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<v Speaker 1>two sales, mostly in the form of the Apple to

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<v Speaker 1>E computer. The platform had the benefit of a large

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<v Speaker 1>library of programs. A lot of developers had made software

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<v Speaker 1>for the Apple too, and the computers were dependent upon

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<v Speaker 1>processors that have been manufactured in the late nineteen seventies,

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<v Speaker 1>which raised some eyebrows because now you had this increasingly

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<v Speaker 1>old platform, had a good library of software, but couldn't

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<v Speaker 1>remain relevant. At the time, the software rarely required more

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<v Speaker 1>resources than the Apple two could provide, so they hadn't

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<v Speaker 1>quite hit a a true stopping point yet. There there

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<v Speaker 1>were some concessions being made by software developers to make

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<v Speaker 1>sure that their programs could run on Apple two properly,

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<v Speaker 1>but it was good enough. It didn't push the the

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<v Speaker 1>the capabilities of the Apple two platforms so hard that

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<v Speaker 1>it was unable to meet the requirements of the software.

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<v Speaker 1>It didn't hurt that Apple two had a text based

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<v Speaker 1>operating system rather than the graphic user interface that the

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<v Speaker 1>Macintosh introduced to the home computer market. Because, if you

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<v Speaker 1>remember from our last episode, one of the big challenges

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<v Speaker 1>the Macintosh faced was that the gooey this graphic user

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<v Speaker 1>interface took up most of the computer's memory, which left

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<v Speaker 1>very little for it to do other applications. The Apple

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<v Speaker 1>two didn't have that problem. It was all text based,

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<v Speaker 1>so it could reserve its memory for all the programs. Meanwhile,

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<v Speaker 1>the Macintosh continue to struggle in those early days due

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<v Speaker 1>to an expensive price tag and a limited number of

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<v Speaker 1>application is available for the platform. When the McIntosh came

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<v Speaker 1>out in nineteen eighty four, it was not alone. Apple

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<v Speaker 1>launched another computer a couple of months later, while it

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<v Speaker 1>also launched the Lisa two, which was an attempt to

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<v Speaker 1>salvage the Lisa project. It would ultimately rebrand the Lisa

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<v Speaker 1>Too as the Macintosh XL. But that's not the computer

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<v Speaker 1>I was referring to. Instead, I'm talking about the Apple

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<v Speaker 1>to See. So even as Apple was trying to forge

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<v Speaker 1>a new path with the Macintosh line of computers, it

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<v Speaker 1>was still leaning heavily on the Apple Too platform. So

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<v Speaker 1>what set the Apple to See Apart from the Apple

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<v Speaker 1>to E, which had launched in three Well, for one thing,

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<v Speaker 1>it was a lot smaller the C and Apple to

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<v Speaker 1>see stood for compact. It was, at least by some definitions, portable.

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<v Speaker 1>The basic computer had a handle that could fold down

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<v Speaker 1>to become a stand that would tilt the computer keyboard

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<v Speaker 1>into the proper position for typing. It did not, however,

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<v Speaker 1>have an degraded display, so you would have to carry

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<v Speaker 1>a separate display around with you and connect it to

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<v Speaker 1>your portable computer. Also, it didn't have a battery power supply.

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<v Speaker 1>You would have to plug the computer in somewhere. Now,

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<v Speaker 1>eventually you could get battery packs that the computer could

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<v Speaker 1>use as a power source, but it didn't ship with them. Still,

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<v Speaker 1>the industrial redesign of the Apple form factor and its

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<v Speaker 1>versatile size UH and its features meant it got support

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<v Speaker 1>in the market. Even though it was built on an

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<v Speaker 1>aging foundation of the Apple two platform. It actually received

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<v Speaker 1>the highest number of day one orders in Apple's history,

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<v Speaker 1>and it initially cost hundred dollars. After a year on

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<v Speaker 1>the market, it sold more than four hundred thousand units,

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<v Speaker 1>so it proved that the Apple two platform still had

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<v Speaker 1>legs seven years after it had been introduced. In April,

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<v Speaker 1>Apple officially retired the Apple three platform. Between the Apple

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<v Speaker 1>three and the Apple three Plus, which was a slightly

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<v Speaker 1>upgraded version, the company had managed to sell only sixty

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<v Speaker 1>five thousand computers. It had manufactured ninety thousand. The Apple

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<v Speaker 1>three was just about, by any measurement, a total failure.

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<v Speaker 1>In Apple announced it had shipped seventy thousand Macintosh computers

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<v Speaker 1>within the first one hundred days of it being available,

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<v Speaker 1>though I should point out that shipped and sold are

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<v Speaker 1>two different metrics. Still, this was not a bad number,

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<v Speaker 1>but it was still shy of projections Apple had made

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<v Speaker 1>when the Macintosh was still in development. They had said

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<v Speaker 1>that they needed to sell forty seven thousand units per month. Instead,

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<v Speaker 1>they had moved seventy thousand units in a hundred days,

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<v Speaker 1>so they were still falling short. In September, Apple introduced

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<v Speaker 1>the five hundred twelve kilobyte version of the Macintosh. This

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<v Speaker 1>version was more expensive than the base model. It cost

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<v Speaker 1>three thousand, two hundred dollars when it launched. The following month,

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<v Speaker 1>Apple announced they had sold the two millionth Apple two computer.

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<v Speaker 1>That means in just a little more than a year,

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<v Speaker 1>the company went from producing it's one millionth Apple two

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<v Speaker 1>machine to selling its two millionth unit. Now, this was

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<v Speaker 1>spread across the family of Apple two computers at that time,

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<v Speaker 1>so the Apple to the Apple two E and the

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<v Speaker 1>Apple to C the Apple two line continued to keep

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<v Speaker 1>the company afloat. By the end of nineteen eighty four,

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<v Speaker 1>Apple had sold a quarter of a million Macintosh systems.

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<v Speaker 1>It was a modest success, but far short of those

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<v Speaker 1>two point two million units the company had hoped for

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<v Speaker 1>back in nineteen eighty one. Still, the Macintosh was a

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<v Speaker 1>nice change of pace. It was not a commercial flop

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<v Speaker 1>like the Lisa or the technical flop like the Apple three.

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<v Speaker 1>In Night five. While struggles at the management level would

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<v Speaker 1>ultimately prompt Steve Jobs and Apple to part ways, the

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<v Speaker 1>company was still struggling with what to do with the

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<v Speaker 1>Lisa Too. At first, the company rebranded the Lisa Too

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<v Speaker 1>and called it the Macintosh XL, but the rebranding wasn't

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<v Speaker 1>enough to save the project, and ultimately Apple would abandon

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<v Speaker 1>it in April five, just a few months after rebranding it.

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<v Speaker 1>Also that year, Apple made some major cuts. The number

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<v Speaker 1>of employees had topped five thousand, seven hundred at Apple,

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<v Speaker 1>but in June the company eliminated about twenty percent of

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<v Speaker 1>all of its positions. In nineteen six, Apple was a

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<v Speaker 1>very different company. Both of the co founders were gone.

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<v Speaker 1>The Apple three and the Lisa projects were both a

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<v Speaker 1>thing of the past. The Macintosh line was continuing, as

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<v Speaker 1>did the now ancient by computer standards Apple two line.

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<v Speaker 1>On the tenth anniversary of Apple's founding April first, nineteen

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<v Speaker 1>eighty six, the company announced the Apple two GS. This

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<v Speaker 1>was the last major update to the Apple two platform.

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<v Speaker 1>Apple would later introduce upgrades to the Apple to E

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<v Speaker 1>and the two C lines, but the two GS represented

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<v Speaker 1>the last big development on that platform. It was the

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<v Speaker 1>ind of the life cycle for the Apple two platform,

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<v Speaker 1>or at least the beginning of the end. The G

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<v Speaker 1>S and two g s, by the way, stood for

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<v Speaker 1>graphics and sound. This is one of those things that

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<v Speaker 1>confused me back when I was a kid, because we

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<v Speaker 1>had an Apple to E. The Apple to C came

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<v Speaker 1>out after the Apple to E, but in the alphabet,

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<v Speaker 1>C comes before E, and I didn't know that the

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<v Speaker 1>letters actually stood for stuff. And then the Apple two

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<v Speaker 1>GS came out, and I really was wondering what was

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<v Speaker 1>going on. That's because these letters actually were standing for

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<v Speaker 1>different terms in this case, Like I said, g S

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<v Speaker 1>stood for graphics and sound. The Apple two GS at

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<v Speaker 1>a graphic user interface that was similar to the Macintosh Gooey.

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<v Speaker 1>It also had a mouse. It did not have an

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<v Speaker 1>integrated floppy drive in the computer case, but rather it

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<v Speaker 1>would have an external floppy disk drive, so you would

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<v Speaker 1>have to connect it via a cable to the CPU.

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<v Speaker 1>These were three and a half inch discs at this time,

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<v Speaker 1>not the old five and a quarter inch discs. Some

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<v Speaker 1>people mistakenly at the time would call these discs hard

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<v Speaker 1>disks because three and a half inch discs were in

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<v Speaker 1>hard plastic as opposed to that thinner, more flexible stuff

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<v Speaker 1>that the five and a quarter inch discs used. But

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<v Speaker 1>they were still technically floppy disks, not hard disks. That's

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<v Speaker 1>a tangent. The two GS had a different processor than

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<v Speaker 1>it's Apple two computer predecessors. It used the Western Digital

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<v Speaker 1>sixteen bit sixty five C eight sixteen microprocessor. However, that

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<v Speaker 1>microprocessor was compatible with the older six five O two

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<v Speaker 1>processors that other Apple two computers used, so the two

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<v Speaker 1>GS retained backwards compatibility with existing Apple to software. The

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<v Speaker 1>clock speed on the new processor could reach two point

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<v Speaker 1>eight mega hurts, though, if you were running old Apple

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<v Speaker 1>to software, you would have to limit the clock speed

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<v Speaker 1>to one mega hurts in order to make it compatible

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<v Speaker 1>with that old programming. If you bought third party hardware,

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<v Speaker 1>you could actually over clock it to a then blistering

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<v Speaker 1>eight teen mega hurts. The company all so boasted two

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<v Speaker 1>hundred fifty six kilobytes of RAM, which could be expanded

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<v Speaker 1>up to eight megabytes. The company had a display that

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<v Speaker 1>or the computer rather had a display that could support

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<v Speaker 1>a resolution of six hundred forty by two hundred pixels

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<v Speaker 1>in four color mode or three d twenty by two

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<v Speaker 1>hundred pixels in sixteen color mode. So still well, it

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<v Speaker 1>was high definition at the time. It's pretty low resolution

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<v Speaker 1>these days. The two gs also introduced a new hardware

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<v Speaker 1>element that found its way into the Macintosh line after

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<v Speaker 1>a little bit. This was called the Apple Dusktop bus. Now,

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<v Speaker 1>a bus is a communication system within a computer or

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<v Speaker 1>between computers. Its job is to transfer data between components

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<v Speaker 1>or between computers. For example, a computer's CPU and its

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<v Speaker 1>memory are tightly coupled, and a bus provides the communication

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<v Speaker 1>link between those two components. The Apple Desktop bus was

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<v Speaker 1>a peripheral and external peripheral that allowed users to connect

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<v Speaker 1>different devices to a proprietary standard for Apple systems. You

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<v Speaker 1>can use it to connect stuff like a keyboard or

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<v Speaker 1>a mouse to a computer. This was Apple's proprietary approach

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<v Speaker 1>to a universal connector universal within the world of Apple,

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<v Speaker 1>but not outside of it now. Eventually, the company would

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<v Speaker 1>discontinue this BUS system in favor of following the industry

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<v Speaker 1>standard of USB later on. Much later on, as Macintosh

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<v Speaker 1>computers will continue to use a dB until the late

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<v Speaker 1>nineteen nineties. The a dB was one of many projects

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<v Speaker 1>Steve Wozniak had worked on before he left the company

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<v Speaker 1>in Ve. Also in nineteen eighty six, Apple swapped out

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<v Speaker 1>the five twelve kilobyte Macintosh for a new enhanced version

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<v Speaker 1>that cost less. The new machine sold for two thousand dollars,

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<v Speaker 1>and the Macintosh Plus also debuted in nineteen eight six.

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<v Speaker 1>It had a whopping hole megabyte of RAM and a

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<v Speaker 1>ES of read only memory or ROM. This machine was

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<v Speaker 1>capable of running more demanding applications and put it beyond

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<v Speaker 1>the limits of what the failed Lisa and Lisa two

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<v Speaker 1>platforms were supposed to do. So finally, Apple had moved

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<v Speaker 1>beyond those and it cost dollars, which was expensive, but

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<v Speaker 1>not nearly at the levels of the earlier Macintosh and

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<v Speaker 1>Lisa computers. By this time, Apple was really swinging focus

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<v Speaker 1>to the Macintosh line. The Apple two products were finally

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<v Speaker 1>running out of steam. There are only so many updates

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<v Speaker 1>Apple could make to the legacy platform to keep them

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<v Speaker 1>relevant in the face of competing machines. Those machines were

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<v Speaker 1>largely IBM compatible PCs at this point. Now I'll talk

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<v Speaker 1>more about them in the next episode, but the Macintosh

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<v Speaker 1>line looked like it was truly going to be the

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<v Speaker 1>future of the company. Now. That did not mean that

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<v Speaker 1>Apple would abandon the Apple two platform right away. Sales

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<v Speaker 1>were still okay, so they were still bringing in money

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<v Speaker 1>for the for the company, and the Macintosh sales figures

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<v Speaker 1>had not quite reached a level that was sustainable in

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<v Speaker 1>the long term. The former president of Apple France, a

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<v Speaker 1>man named Jean Louis Gassa, came over to Apple's US

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<v Speaker 1>operations to take the role that Steve Jobs had held

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<v Speaker 1>for years. Gassa made decisions that were very different from

0:13:03.840 --> 0:13:07.559
<v Speaker 1>its predecessor. He wanted Apple to stop concentrating on making

0:13:07.600 --> 0:13:10.800
<v Speaker 1>machines for home users and focus on the more profitable

0:13:10.840 --> 0:13:14.320
<v Speaker 1>business and high end consumer market. He wanted Apple to

0:13:14.320 --> 0:13:18.760
<v Speaker 1>focus more on technical superiority than aesthetic design. He had

0:13:18.800 --> 0:13:21.600
<v Speaker 1>a mantra that many at Apple began to repeat, and

0:13:21.640 --> 0:13:25.040
<v Speaker 1>that mantra was fifty five or die. That was a

0:13:25.080 --> 0:13:27.800
<v Speaker 1>reference to Gassay's goal of hitting a fifty five percent

0:13:27.920 --> 0:13:31.720
<v Speaker 1>profit margin on Apple computers, meaning that you're selling the

0:13:31.760 --> 0:13:35.280
<v Speaker 1>computers at more than what it cost you to make

0:13:35.360 --> 0:13:37.720
<v Speaker 1>them and market them. It was at this time that

0:13:37.760 --> 0:13:41.200
<v Speaker 1>Apple really cemented its reputation as offering computers that were

0:13:41.240 --> 0:13:45.080
<v Speaker 1>more expensive than the comparable IBM clones on the market.

0:13:45.559 --> 0:13:49.520
<v Speaker 1>At first, Magotosh computers also suffered from a lack of software,

0:13:49.559 --> 0:13:53.280
<v Speaker 1>and to be fair, the Macintosh platform consistently lagged behind

0:13:53.400 --> 0:13:57.760
<v Speaker 1>IBM compatible computers in terms of a software library. That said,

0:13:58.000 --> 0:14:01.280
<v Speaker 1>the emphasis on power and technical specs meant that developers

0:14:01.320 --> 0:14:05.520
<v Speaker 1>could create sophisticated software for the Macintosh that IBM compatible

0:14:05.600 --> 0:14:08.880
<v Speaker 1>machines could not easily replicate. This was a trend that

0:14:08.920 --> 0:14:11.960
<v Speaker 1>would last for years, with certain types of processor heavy

0:14:11.960 --> 0:14:16.560
<v Speaker 1>applications like video, photo and audio editing software becoming the

0:14:16.600 --> 0:14:19.920
<v Speaker 1>bread and butter for the Macintosh line. That remains true

0:14:19.960 --> 0:14:22.080
<v Speaker 1>to this day. If you look at the production machines

0:14:22.120 --> 0:14:25.000
<v Speaker 1>here at how stuff works, you'll notice an awful lot

0:14:25.040 --> 0:14:27.720
<v Speaker 1>of Macintosh computers because the people who are using it

0:14:27.760 --> 0:14:32.280
<v Speaker 1>to edit audio and video work need that power, and

0:14:32.440 --> 0:14:35.880
<v Speaker 1>McIntosh is still known for that to this day. I've

0:14:35.880 --> 0:14:38.360
<v Speaker 1>got a lot more to say about Apple and how

0:14:38.400 --> 0:14:42.920
<v Speaker 1>it survived the PC wars of the early eighties all

0:14:42.920 --> 0:14:44.840
<v Speaker 1>the way through the nineties. But first, let's take a

0:14:44.920 --> 0:14:56.720
<v Speaker 1>quick break to thank our sponsor. In Apple sold its

0:14:56.840 --> 0:15:01.560
<v Speaker 1>one million Macintosh computer. That was good, but again, their

0:15:01.600 --> 0:15:04.600
<v Speaker 1>original goal was to hit that two point two million

0:15:04.720 --> 0:15:08.640
<v Speaker 1>units sales from nineteen eight to nineteen eighty five. So

0:15:08.840 --> 0:15:11.880
<v Speaker 1>eighties seven hitting one million, they're a little behind schedule.

0:15:12.400 --> 0:15:14.760
<v Speaker 1>The Macintosh and debut in nineteen eighty four, it took

0:15:14.840 --> 0:15:18.240
<v Speaker 1>three years to hit that one million units sold. Still,

0:15:18.960 --> 0:15:23.520
<v Speaker 1>the Macintosh Apple was offering was a very different machine

0:15:23.840 --> 0:15:26.640
<v Speaker 1>than the one the design team had had in mind

0:15:26.680 --> 0:15:29.400
<v Speaker 1>way back in the early nineteen eighties. Remember, they had

0:15:29.400 --> 0:15:31.720
<v Speaker 1>wanted to create a user friendly home computer that could

0:15:31.720 --> 0:15:34.920
<v Speaker 1>be sold for around a thousand dollars. The actual machines

0:15:35.200 --> 0:15:38.640
<v Speaker 1>had so many more features than the design team had

0:15:38.640 --> 0:15:42.760
<v Speaker 1>originally intended that it cost more than twice as much

0:15:42.880 --> 0:15:45.520
<v Speaker 1>as the goal price the team had anticipated when they

0:15:45.520 --> 0:15:49.640
<v Speaker 1>were first talking about it. That spring, Apple introduced the

0:15:49.760 --> 0:15:52.800
<v Speaker 1>Macintosh to This was the first of the computers of

0:15:52.840 --> 0:15:56.800
<v Speaker 1>the gas Say era. It cost a whopping six thousand,

0:15:57.040 --> 0:15:59.760
<v Speaker 1>five hundred dollars when it was released that you could

0:15:59.760 --> 0:16:01.720
<v Speaker 1>actual we find it for a little less at about

0:16:01.880 --> 0:16:05.120
<v Speaker 1>five thousand, five hundred at some places. The computer boasted

0:16:05.120 --> 0:16:08.840
<v Speaker 1>a thirty two bit microprocessor for Motorola, running at sixteen

0:16:08.840 --> 0:16:11.600
<v Speaker 1>mega hurts clock speed. It also had one megabyte of

0:16:11.680 --> 0:16:14.920
<v Speaker 1>RAM expandable up to sixty eight megabytes, and two d

0:16:14.960 --> 0:16:18.160
<v Speaker 1>fifty six kilobytes of ROM. It was also the first

0:16:18.200 --> 0:16:21.560
<v Speaker 1>Mac to support a color display. This was Apple's first

0:16:21.600 --> 0:16:25.800
<v Speaker 1>big step to creating a three M machine. Now, this

0:16:25.880 --> 0:16:29.040
<v Speaker 1>was a term used in the early eighties to describe

0:16:29.040 --> 0:16:31.640
<v Speaker 1>a computer that had at least one megabyte of memory,

0:16:32.040 --> 0:16:36.440
<v Speaker 1>a million pixel display, and a mega flop of processing power.

0:16:37.080 --> 0:16:39.760
<v Speaker 1>There was actually another project that was supposed to get

0:16:39.800 --> 0:16:43.560
<v Speaker 1>Apple to that fabled three M land. It was called

0:16:43.800 --> 0:16:47.400
<v Speaker 1>the Big Mac. Steve Jobs had overseen the project back

0:16:47.440 --> 0:16:50.560
<v Speaker 1>before he left Apple. The computer was supposed to run

0:16:50.920 --> 0:16:55.040
<v Speaker 1>Unix as its operating system instead of the system Mac

0:16:55.080 --> 0:16:58.760
<v Speaker 1>Operating System. After Jobs left and guess A took over

0:16:59.360 --> 0:17:03.600
<v Speaker 1>his role, GASA canceled the Big Mac project. Much of

0:17:03.600 --> 0:17:07.240
<v Speaker 1>that work was then transitioned over to the Macintosh to design.

0:17:07.560 --> 0:17:10.360
<v Speaker 1>The Macintosh two had a megabyte of memory, and when

0:17:10.440 --> 0:17:14.240
<v Speaker 1>paired with the right display, could support a million pixels,

0:17:14.280 --> 0:17:17.280
<v Speaker 1>but it fell short on the floating operations per second metric,

0:17:17.440 --> 0:17:22.280
<v Speaker 1>topping out at one sixty kilo flops. The leads on

0:17:22.320 --> 0:17:26.120
<v Speaker 1>the Macintosh to design were Michael Dewey and Brian Berkeley

0:17:26.240 --> 0:17:29.919
<v Speaker 1>and Heartmot s Linger. Now, back when they first started

0:17:29.920 --> 0:17:33.080
<v Speaker 1>on the design works, Steve Jobs was still around. They

0:17:33.160 --> 0:17:37.600
<v Speaker 1>kept their work secret because they were expressly violating Steve

0:17:37.680 --> 0:17:42.680
<v Speaker 1>jobs as wishes with the Macintosh two's features. Specifically, Steve

0:17:42.760 --> 0:17:45.880
<v Speaker 1>Jobs was not in favor of color displays and Macintosh

0:17:45.960 --> 0:17:50.720
<v Speaker 1>computers because at that time printers were monochromatic. So if

0:17:50.720 --> 0:17:53.480
<v Speaker 1>you could view colors on screen, but you could only

0:17:53.520 --> 0:17:56.239
<v Speaker 1>print and black and white, the print outs would not

0:17:56.320 --> 0:17:59.359
<v Speaker 1>represent what you were working on. That would be a disconnect.

0:17:59.400 --> 0:18:01.760
<v Speaker 1>This was a viole lation of the what you see

0:18:01.960 --> 0:18:05.960
<v Speaker 1>is what you get or whizzy wig design philosophy. Jobs

0:18:06.000 --> 0:18:09.199
<v Speaker 1>was also against the idea of expansion slots, which the

0:18:09.320 --> 0:18:13.359
<v Speaker 1>Macintosh two had. Jobs felt that expansion slots were great

0:18:13.359 --> 0:18:16.959
<v Speaker 1>for hobbyists, but that they made the experience complicated for

0:18:17.040 --> 0:18:20.120
<v Speaker 1>the average user. The secret project had a code name

0:18:20.720 --> 0:18:23.919
<v Speaker 1>Little Big Mac. It was developed in parallel with the

0:18:23.960 --> 0:18:27.240
<v Speaker 1>Big Mac project that Jobs was overseeing before his departure.

0:18:27.520 --> 0:18:30.200
<v Speaker 1>The Macintosh two ended up being sort of a combination

0:18:30.400 --> 0:18:33.639
<v Speaker 1>of these two projects. Actually, it had several code names,

0:18:33.880 --> 0:18:37.639
<v Speaker 1>many of which were city names during its whole design process.

0:18:38.200 --> 0:18:40.880
<v Speaker 1>The case design of the Macintosh two made it look

0:18:40.920 --> 0:18:44.720
<v Speaker 1>a lot more like your standard IBM compatible machine. Had

0:18:44.760 --> 0:18:47.480
<v Speaker 1>a case that you would placed on your desk horizontally.

0:18:47.880 --> 0:18:50.960
<v Speaker 1>You'd set your monitor on top of this horizontal case.

0:18:51.280 --> 0:18:53.679
<v Speaker 1>The keyboard was separate and would sit in front of

0:18:53.720 --> 0:18:56.400
<v Speaker 1>the case. The Macintosh two was one of the first

0:18:56.440 --> 0:19:00.320
<v Speaker 1>Macintosh machines to feature the Apple Desktop bus ter used

0:19:00.359 --> 0:19:03.560
<v Speaker 1>by the Apple two GS, and from that point forward,

0:19:03.760 --> 0:19:08.000
<v Speaker 1>Macintosh computers would typically ship standard with the Apple Desktop

0:19:08.040 --> 0:19:11.600
<v Speaker 1>bush and The Macintosh two was also the first of

0:19:11.640 --> 0:19:15.159
<v Speaker 1>the Macintosh computers to feature what is commonly referred to

0:19:15.320 --> 0:19:21.160
<v Speaker 1>as the chimes of Death. Well the Macintosh se which

0:19:21.160 --> 0:19:23.840
<v Speaker 1>came out the same month as the Macintosh to also

0:19:24.000 --> 0:19:27.119
<v Speaker 1>had the chimes of death. This was the sound notification

0:19:27.160 --> 0:19:30.720
<v Speaker 1>the Macintosh would make when there was a critical failure

0:19:30.760 --> 0:19:33.639
<v Speaker 1>in the system. The sc was more of a traditional

0:19:33.680 --> 0:19:36.600
<v Speaker 1>Macintosh computer, souped up a bit for the business world.

0:19:36.880 --> 0:19:40.439
<v Speaker 1>It cost three thousand seven dollars upon release, making it

0:19:40.680 --> 0:19:44.840
<v Speaker 1>a less expensive solution than the Macintosh too. The same year,

0:19:45.000 --> 0:19:47.880
<v Speaker 1>Apple spun off its software division as a new company

0:19:47.920 --> 0:19:51.560
<v Speaker 1>called Claris. The company was able to focus on developing

0:19:51.600 --> 0:19:54.840
<v Speaker 1>software for the Macintosh platforms and had licenses to several

0:19:54.960 --> 0:19:58.280
<v Speaker 1>legacy mac programs like mac Wright and mac Paint. It

0:19:58.280 --> 0:20:01.640
<v Speaker 1>would operate as a separate entity until nine, when Apple

0:20:01.680 --> 0:20:05.600
<v Speaker 1>would reacquire the company. Also in nineteen eight seven, Microsoft

0:20:05.640 --> 0:20:09.439
<v Speaker 1>released the second version of Windows. The first version of Windows,

0:20:09.440 --> 0:20:12.320
<v Speaker 1>which came out in nineteen eighty five, hadn't received much attention.

0:20:12.600 --> 0:20:16.040
<v Speaker 1>Most people dismissed it as being clunky and not terribly useful,

0:20:16.400 --> 0:20:18.920
<v Speaker 1>but Windows two point oh was doing a little better.

0:20:19.480 --> 0:20:23.000
<v Speaker 1>That prompted Apple to sue Microsoft and Hewitt Packard with

0:20:23.040 --> 0:20:26.320
<v Speaker 1>a claim that the Windows Gooey the g Uy infringed

0:20:26.400 --> 0:20:29.919
<v Speaker 1>upon the intellectual property of Apple. The claim stated that

0:20:29.960 --> 0:20:33.760
<v Speaker 1>the Windows platform too closely resembled the Macintosh user interface.

0:20:34.119 --> 0:20:38.040
<v Speaker 1>The courts ultimately decided against Apple on this front. When

0:20:38.119 --> 0:20:41.639
<v Speaker 1>Windows three point oh debuted in nineteen nine, it marked

0:20:41.640 --> 0:20:44.840
<v Speaker 1>the beginning of a big transition in IBM compatible personal

0:20:44.880 --> 0:20:48.359
<v Speaker 1>computers as they began to migrate from DOSS to Windows,

0:20:48.760 --> 0:20:52.200
<v Speaker 1>and it reduced one of the qualities that differentiated Macintosh

0:20:52.240 --> 0:20:56.880
<v Speaker 1>computers from IBM compatibles. Believe it or not, even at

0:20:56.880 --> 0:21:00.399
<v Speaker 1>this stage, ten years after the day Dave view of

0:21:00.480 --> 0:21:04.520
<v Speaker 1>the Apple to, the company was still selling Apple two machines.

0:21:05.080 --> 0:21:08.560
<v Speaker 1>Many of those products, even the updated, enhanced versions, would

0:21:08.640 --> 0:21:12.440
<v Speaker 1>finally say goodbye. In the early nineteen nineties. Apple made

0:21:12.440 --> 0:21:15.320
<v Speaker 1>an Apple to E card that could be used with

0:21:15.440 --> 0:21:19.359
<v Speaker 1>Macintosh computers to make them backwards compatible with certain Apple

0:21:19.400 --> 0:21:22.400
<v Speaker 1>to software packages, but even that would take a bow

0:21:22.640 --> 0:21:27.000
<v Speaker 1>by The Apple two platform still helped provide revenue to Apple,

0:21:27.040 --> 0:21:29.240
<v Speaker 1>but it was clear that the Macintosh was going to

0:21:29.320 --> 0:21:31.960
<v Speaker 1>have to step up. What followed were a series of

0:21:32.000 --> 0:21:35.960
<v Speaker 1>Macintosh computers that followed the design philosophy of Gassa and

0:21:35.960 --> 0:21:40.720
<v Speaker 1>the Macintosh too. These were expensive desktop publishing machines that

0:21:40.760 --> 0:21:45.000
<v Speaker 1>were technically sound, but at a premium price. The Macintosh

0:21:45.080 --> 0:21:48.080
<v Speaker 1>started to gain a reputation for being a bit elitist.

0:21:48.560 --> 0:21:53.040
<v Speaker 1>It was undeniably useful for many processor heavy applications, but

0:21:53.119 --> 0:21:55.639
<v Speaker 1>it was so expensive and the suite of software was

0:21:55.720 --> 0:21:58.480
<v Speaker 1>so much more narrow than the library available for the

0:21:58.520 --> 0:22:02.320
<v Speaker 1>IBM compatible computers that a lot of average consumers dismissed

0:22:02.320 --> 0:22:05.600
<v Speaker 1>the platform out of hand, and a smaller user base

0:22:05.680 --> 0:22:09.240
<v Speaker 1>meant that software developers had less incentive to create programs

0:22:09.240 --> 0:22:12.960
<v Speaker 1>for the Macintosh. The logic goes like this. You're a

0:22:12.960 --> 0:22:15.840
<v Speaker 1>programmer and you want to create a really cool application.

0:22:15.960 --> 0:22:18.760
<v Speaker 1>Let's say it's a game. You want that game to

0:22:18.800 --> 0:22:21.880
<v Speaker 1>reach as many people as possible, both because you want

0:22:21.920 --> 0:22:24.920
<v Speaker 1>people to experience your work, and of course you wish

0:22:24.960 --> 0:22:27.399
<v Speaker 1>to profit from that work. You want to make some money.

0:22:27.760 --> 0:22:30.680
<v Speaker 1>It makes sense to focus your efforts on the largest

0:22:30.800 --> 0:22:33.800
<v Speaker 1>possible audience. Now, if you don't have time to develop

0:22:33.840 --> 0:22:38.040
<v Speaker 1>and program a game for both Macintosh and PC platforms,

0:22:38.280 --> 0:22:41.520
<v Speaker 1>you have to choose one or the other. With way

0:22:41.560 --> 0:22:45.080
<v Speaker 1>more people owning IBM compatible machines, at this point, it

0:22:45.200 --> 0:22:48.960
<v Speaker 1>just makes sense to develop for the PC and Windows platforms.

0:22:49.240 --> 0:22:51.520
<v Speaker 1>That's where you're going to reach the largest number of people.

0:22:51.640 --> 0:22:55.159
<v Speaker 1>Assuming your game resonates with your intended audience. Now, that

0:22:55.200 --> 0:22:59.080
<v Speaker 1>didn't mean there weren't developers, even game developers who concentrated

0:22:59.160 --> 0:23:02.280
<v Speaker 1>solely on the mac Kintosh. There were. There, just weren't

0:23:02.320 --> 0:23:06.240
<v Speaker 1>as many Macintosh developers as there were Windows or PC developers.

0:23:06.840 --> 0:23:09.359
<v Speaker 1>By the late nineteen eighties, the Macintosh stood as the

0:23:09.400 --> 0:23:13.040
<v Speaker 1>only real challenger to the IBM compatible PC. Other companies

0:23:13.119 --> 0:23:16.240
<v Speaker 1>had withdrawn from the home PC market, acknowledging that it

0:23:16.359 --> 0:23:19.119
<v Speaker 1>was too competitive to make a go atit. Tandy and

0:23:19.200 --> 0:23:23.320
<v Speaker 1>Texas Instruments were out. Atari was in rapid decline and

0:23:23.440 --> 0:23:26.840
<v Speaker 1>soon would exist only in name. Commodore had retired the

0:23:26.880 --> 0:23:29.160
<v Speaker 1>Commodore sixty four, but was still hanging in the race

0:23:29.240 --> 0:23:31.960
<v Speaker 1>with its Amiga line of computers. But by the mid

0:23:32.040 --> 0:23:36.879
<v Speaker 1>ninety nineties, Commodore couldn't hold together and declared bankruptcy. The

0:23:36.960 --> 0:23:40.560
<v Speaker 1>game was essentially down to all the companies that were

0:23:40.560 --> 0:23:44.879
<v Speaker 1>making IBM compatible machines or Windows based machines or DOSES

0:23:44.960 --> 0:23:49.520
<v Speaker 1>based machines, and Apple, and Apple had a tiny, tiny

0:23:49.560 --> 0:23:53.919
<v Speaker 1>sliver of that market share. Apple had carved out of market,

0:23:54.320 --> 0:23:56.600
<v Speaker 1>but it was a small one. It was no longer

0:23:56.640 --> 0:23:59.320
<v Speaker 1>a dominant player in the home computer world, but it

0:23:59.440 --> 0:24:03.840
<v Speaker 1>was the only real alternative to the Windows machines. Those

0:24:03.920 --> 0:24:07.760
<v Speaker 1>DOSS machines. The IBM PC clones that were running uh

0:24:08.000 --> 0:24:12.280
<v Speaker 1>either DOSS were increasingly at this point Windows. In nine,

0:24:12.680 --> 0:24:16.439
<v Speaker 1>Apple would release the Macintosh Portable. Now, this was the

0:24:16.480 --> 0:24:20.240
<v Speaker 1>first truly portable Macintosh computer with an incorporated screen that

0:24:20.280 --> 0:24:22.680
<v Speaker 1>could fold down to make the computer into a kind

0:24:22.680 --> 0:24:26.800
<v Speaker 1>of clunky wedge shape. It had a track ball in

0:24:26.880 --> 0:24:31.280
<v Speaker 1>place of a mouse, had cereal and scuzzy ports for peripherals.

0:24:31.520 --> 0:24:34.600
<v Speaker 1>It had a floppy drive and a forty megabyte hard drive,

0:24:34.960 --> 0:24:37.879
<v Speaker 1>had a megabyte of RAM, and use the Motorola sixty

0:24:37.920 --> 0:24:41.119
<v Speaker 1>eight thousand processor running at a sixteen mega hurts clock speed.

0:24:41.680 --> 0:24:46.040
<v Speaker 1>The portable machine cost a hefty seven thousand, three hundred dollars.

0:24:46.600 --> 0:24:49.800
<v Speaker 1>It ran on mac Os six point oh four when

0:24:49.800 --> 0:24:52.520
<v Speaker 1>it launched. As for its power supply, that came in

0:24:52.560 --> 0:24:55.280
<v Speaker 1>the form of a rechargeable battery, Only it wasn't a

0:24:55.320 --> 0:24:59.560
<v Speaker 1>lithium ion battery. It was a lead acid battery, you know,

0:24:59.720 --> 0:25:01.920
<v Speaker 1>kind like the kind that you would find in a car.

0:25:02.240 --> 0:25:05.000
<v Speaker 1>That added a couple of pounds to this portable computer.

0:25:05.640 --> 0:25:09.320
<v Speaker 1>So the whole thing weighed about sixteen pounds or seven

0:25:09.359 --> 0:25:12.800
<v Speaker 1>point three kilograms. In other words, it was a hefty

0:25:13.000 --> 0:25:15.679
<v Speaker 1>portable computer. You probably wouldn't want to lug it around

0:25:15.680 --> 0:25:19.200
<v Speaker 1>everywhere you go. A couple of years later, Apple would

0:25:19.200 --> 0:25:23.120
<v Speaker 1>give the portable computer another shot, you know, he would say,

0:25:23.200 --> 0:25:25.399
<v Speaker 1>let's try and get this form factor down, and they

0:25:25.440 --> 0:25:29.760
<v Speaker 1>released the power Book one hundred. Only this computer wasn't

0:25:29.800 --> 0:25:33.240
<v Speaker 1>actually designed by Apple. The power Book one hundred was

0:25:33.280 --> 0:25:37.159
<v Speaker 1>based off the original Macintosh portable schematics, but it was

0:25:37.280 --> 0:25:43.360
<v Speaker 1>designed by Sony la gasp Sony helped miniaturize the components

0:25:43.400 --> 0:25:46.520
<v Speaker 1>that made the Macintosh portable so gush darn anti portable.

0:25:47.040 --> 0:25:50.440
<v Speaker 1>The power Book one hundred launched in ninete, and while

0:25:50.480 --> 0:25:53.920
<v Speaker 1>it wasn't a solely Apple design product, it did help

0:25:54.000 --> 0:25:58.520
<v Speaker 1>put Apple back on the right path. In the magazine

0:25:58.680 --> 0:26:01.639
<v Speaker 1>Macworld published in our icle written by Jerry Borrel that

0:26:01.720 --> 0:26:06.480
<v Speaker 1>had some troubling implications now, Borel cited an earlier interview

0:26:06.600 --> 0:26:11.320
<v Speaker 1>from n in which Apple executive Mike Spindler, the CEO,

0:26:11.520 --> 0:26:15.639
<v Speaker 1>who well at the time he was still under the CEO,

0:26:15.720 --> 0:26:18.080
<v Speaker 1>but he would become the CEO of the company, said

0:26:18.080 --> 0:26:21.440
<v Speaker 1>that they were investigating the possibility of licensing the Macintosh

0:26:21.520 --> 0:26:26.240
<v Speaker 1>operating system to other hardware manufacturers. Now, this was very

0:26:26.320 --> 0:26:28.639
<v Speaker 1>much the opposite of what Steve Jobs felt was the

0:26:28.760 --> 0:26:31.480
<v Speaker 1>right path for Apple when he was still there. From

0:26:31.520 --> 0:26:34.640
<v Speaker 1>its earliest incarnation, Apple had done its best to protect

0:26:34.640 --> 0:26:38.240
<v Speaker 1>its hardware and software. It had sued companies that put

0:26:38.240 --> 0:26:41.680
<v Speaker 1>out clones of the Apple two platform. But as Apple

0:26:41.800 --> 0:26:45.639
<v Speaker 1>and the market changed, so too did this philosophy. By

0:26:45.720 --> 0:26:48.479
<v Speaker 1>the early nine nineties, it sounded like Apple was interested

0:26:48.480 --> 0:26:51.359
<v Speaker 1>in making some cash by licensing the mac os to

0:26:51.520 --> 0:26:54.679
<v Speaker 1>other types of hardware. While the interest was there, Apple

0:26:54.760 --> 0:26:59.680
<v Speaker 1>didn't make a move to do this until John Scully

0:26:59.720 --> 0:27:04.920
<v Speaker 1>had left in ninete, replaced by Michael the Diesel Spindler

0:27:05.280 --> 0:27:07.760
<v Speaker 1>and I'm not making up that nickname, so the same

0:27:07.760 --> 0:27:10.479
<v Speaker 1>person who gave that interview in ninety one was now

0:27:10.560 --> 0:27:13.919
<v Speaker 1>running the company. In nine Apple made a big switch.

0:27:13.960 --> 0:27:18.479
<v Speaker 1>The company had depended upon Motorola produced microprocessors since nineteen

0:27:18.600 --> 0:27:22.119
<v Speaker 1>eighty three, when the failed Lisa computer had a Motorola

0:27:22.200 --> 0:27:25.280
<v Speaker 1>sixty eight thousand chip in it, But delays in manufacturing

0:27:25.320 --> 0:27:29.359
<v Speaker 1>a Motorola at Motorola rather meant that some of the

0:27:29.440 --> 0:27:32.119
<v Speaker 1>higher end computers in the early nineties they used the

0:27:32.160 --> 0:27:37.080
<v Speaker 1>Motorola sixty eight O four OH processors were launching behind schedule,

0:27:37.400 --> 0:27:41.560
<v Speaker 1>so Apple executives decided they would switch to a different CPU,

0:27:41.640 --> 0:27:43.880
<v Speaker 1>and there were a couple of different options available now.

0:27:43.920 --> 0:27:47.480
<v Speaker 1>The most popular and arguably the most powerful choice would

0:27:47.520 --> 0:27:51.840
<v Speaker 1>have been Intel, the company lead the pack in microprocessor technologies,

0:27:52.160 --> 0:27:55.800
<v Speaker 1>But rather than switched to Intel, Apple executives decided to

0:27:55.800 --> 0:27:59.359
<v Speaker 1>go with power PC. Starting in nine with the power

0:27:59.480 --> 0:28:03.440
<v Speaker 1>macintoh and perform A six series, the company began using

0:28:03.480 --> 0:28:07.520
<v Speaker 1>power PC chips as CPUs. John Scully would later admit

0:28:07.560 --> 0:28:09.359
<v Speaker 1>that it would probably would have been a better idea

0:28:09.400 --> 0:28:12.440
<v Speaker 1>to go with Intel from the start. After two thousand five,

0:28:12.600 --> 0:28:15.360
<v Speaker 1>that's exactly what Apple did, they switched from power PC

0:28:15.560 --> 0:28:20.720
<v Speaker 1>to Intel processors. But during this power pc era, there

0:28:20.720 --> 0:28:24.080
<v Speaker 1>were many different lines of Macintosh computers on the market,

0:28:24.520 --> 0:28:27.439
<v Speaker 1>all of them on the high end spectrum for computers.

0:28:27.880 --> 0:28:31.720
<v Speaker 1>Macintosh accounted for about seven percent of the overall market

0:28:31.720 --> 0:28:36.080
<v Speaker 1>share for desktop computers. There were some unauthorized Macintosh clones

0:28:36.119 --> 0:28:39.520
<v Speaker 1>being sold in various places, and Apple executives decided it

0:28:39.560 --> 0:28:42.880
<v Speaker 1>was better to make some money off of official, licensed

0:28:42.880 --> 0:28:46.320
<v Speaker 1>Mac clones than to see these unlicensed ones pop up

0:28:46.320 --> 0:28:49.200
<v Speaker 1>with no benefit to Apple. The company began to offer

0:28:49.280 --> 0:28:52.440
<v Speaker 1>up a license to the Macintosh ROMs and operating system

0:28:52.480 --> 0:28:56.760
<v Speaker 1>to other manufacturers. This gave Apple a quick jolt of cash,

0:28:57.040 --> 0:29:00.320
<v Speaker 1>but before long Apple began to regret this this vision

0:29:00.400 --> 0:29:04.440
<v Speaker 1>because other companies were able to make McIntosh compatible computers

0:29:04.600 --> 0:29:08.480
<v Speaker 1>using power PC based machines for less than the official

0:29:08.560 --> 0:29:12.280
<v Speaker 1>Macintosh computers on the market, so Apple was undercutting its

0:29:12.320 --> 0:29:15.160
<v Speaker 1>own sales in other words, because it was allowing these

0:29:15.160 --> 0:29:19.840
<v Speaker 1>other companies to make Macintosh compatible machines. Michael Spindler would

0:29:19.840 --> 0:29:24.040
<v Speaker 1>step down as CEO and nine During his time at

0:29:24.080 --> 0:29:26.680
<v Speaker 1>the HELM, he was rumored to have held discussions with

0:29:26.720 --> 0:29:30.360
<v Speaker 1>big companies about possibly selling Apple to a competitor like

0:29:30.480 --> 0:29:35.360
<v Speaker 1>IBM or Sun Microsystems, that obviously didn't happen. His replacement

0:29:35.480 --> 0:29:39.480
<v Speaker 1>was Gil Emilio, who was only CEO from ninety six

0:29:39.560 --> 0:29:43.800
<v Speaker 1>to Amelio wanted to address some of the big problems

0:29:43.880 --> 0:29:46.880
<v Speaker 1>left in the wake of Scully and Spindler, namely some

0:29:47.000 --> 0:29:50.320
<v Speaker 1>pretty public failures like the Apple Newton and the less

0:29:50.360 --> 0:29:54.320
<v Speaker 1>public but perhaps more impactful failure of an operating system

0:29:54.400 --> 0:29:57.800
<v Speaker 1>upgrade called Copeland and in a moment I will talk

0:29:57.960 --> 0:30:01.440
<v Speaker 1>more about this would be successor to the macOS known

0:30:01.480 --> 0:30:05.600
<v Speaker 1>as System seven. But first, let's take another quick break

0:30:05.720 --> 0:30:16.240
<v Speaker 1>to thank our sponsor. Okay. So, by the mid nineties,

0:30:16.320 --> 0:30:18.920
<v Speaker 1>it was clear that the Macintosh line was going to

0:30:19.000 --> 0:30:22.920
<v Speaker 1>need a new operating system. System seven, which was introduced

0:30:22.920 --> 0:30:25.920
<v Speaker 1>in was a good OS and had a lot of

0:30:26.000 --> 0:30:29.680
<v Speaker 1>useful features and support, but it was showing its age.

0:30:30.080 --> 0:30:33.160
<v Speaker 1>The original intent was to do a huge overhaul to

0:30:33.200 --> 0:30:35.200
<v Speaker 1>the operating system and come up with something that was

0:30:35.240 --> 0:30:39.400
<v Speaker 1>more future proofed. This project was called Copeland. It was

0:30:39.400 --> 0:30:42.960
<v Speaker 1>supposed to have several next generation features that would push

0:30:43.080 --> 0:30:46.840
<v Speaker 1>Macintosh into a new era of sophistication. It was born

0:30:46.960 --> 0:30:49.640
<v Speaker 1>out of a practice Apple was following that has the

0:30:49.680 --> 0:30:55.000
<v Speaker 1>informal name of blue or pink. During brainstorming sessions, developers

0:30:55.040 --> 0:30:58.760
<v Speaker 1>would propose upgrades to existing operating systems features that they

0:30:58.800 --> 0:31:01.240
<v Speaker 1>thought it should have. So ideas that were considered to

0:31:01.280 --> 0:31:04.720
<v Speaker 1>be relatively easy to implement would go on blue cards.

0:31:05.040 --> 0:31:07.320
<v Speaker 1>Ideas that were a little more difficult and perhaps a

0:31:07.360 --> 0:31:10.800
<v Speaker 1>bit further off would go on Pink cards. Ideas that

0:31:10.800 --> 0:31:14.080
<v Speaker 1>were really tricky but considered to be worth doing would

0:31:14.120 --> 0:31:17.600
<v Speaker 1>go down on Red cards. Then developers would essentially divide

0:31:17.640 --> 0:31:19.640
<v Speaker 1>up into a couple of teams the Blue team would

0:31:19.680 --> 0:31:22.600
<v Speaker 1>go to work on the near term upgrades to whatever

0:31:22.760 --> 0:31:25.800
<v Speaker 1>operating system they were working on. The Pink team would

0:31:25.840 --> 0:31:29.520
<v Speaker 1>concentrate on something a bit more revolutionary. Copeland started out

0:31:29.600 --> 0:31:33.000
<v Speaker 1>as a Pink Team project. However, as time went on,

0:31:33.160 --> 0:31:35.959
<v Speaker 1>managers began to pull ideas from the Red cards and

0:31:36.000 --> 0:31:39.080
<v Speaker 1>put them in with the Pink team's plans. So this

0:31:39.120 --> 0:31:42.360
<v Speaker 1>is another case of feature creep, something Apple had struggled

0:31:42.400 --> 0:31:45.360
<v Speaker 1>with many times in its past. As new features were

0:31:45.360 --> 0:31:48.600
<v Speaker 1>added to the specs of the operating system, the development

0:31:48.640 --> 0:31:52.280
<v Speaker 1>time grew longer and the project fell further behind schedule.

0:31:52.520 --> 0:31:56.600
<v Speaker 1>After gill Emilio replaced Michael Spindler as CEO, he brought

0:31:56.640 --> 0:32:00.400
<v Speaker 1>on Ellen Hancock from National Semiconductor to come men and

0:32:00.440 --> 0:32:03.160
<v Speaker 1>review the operating system in development to see if it

0:32:03.200 --> 0:32:06.520
<v Speaker 1>was actually close to where it needed to be. Hancock

0:32:06.840 --> 0:32:10.160
<v Speaker 1>did a full review and she concluded that the operating

0:32:10.160 --> 0:32:13.040
<v Speaker 1>system was in a total shambles. She said that while

0:32:13.120 --> 0:32:17.360
<v Speaker 1>parts of the development process were fairly well along, others

0:32:17.360 --> 0:32:20.160
<v Speaker 1>were lagging way behind, and there was little hope that

0:32:20.240 --> 0:32:23.400
<v Speaker 1>all these various pieces would be able to come together

0:32:23.520 --> 0:32:28.000
<v Speaker 1>into a cohesive operating system. Amilio was then left in

0:32:28.000 --> 0:32:30.840
<v Speaker 1>a really bad position. The company had put a ton

0:32:30.960 --> 0:32:34.000
<v Speaker 1>of effort into developing this new operating system, and it

0:32:34.240 --> 0:32:37.080
<v Speaker 1>just wasn't where it needed to be. He made the

0:32:37.120 --> 0:32:40.960
<v Speaker 1>call to purchase a new operating system rather than continued

0:32:41.000 --> 0:32:44.360
<v Speaker 1>down the path of trying to develop Copeland. His decision

0:32:44.440 --> 0:32:49.160
<v Speaker 1>led him to purchase a fledgling computer company called Next. Now,

0:32:49.200 --> 0:32:51.080
<v Speaker 1>this was a company that been founded by a very

0:32:51.120 --> 0:32:55.880
<v Speaker 1>special person. That person was Steve Jobs. Emilio announced that

0:32:55.920 --> 0:32:59.680
<v Speaker 1>Apple would acquire Next and that Jobs himself would come

0:32:59.720 --> 0:33:03.280
<v Speaker 1>over to Apple in an advisory position. Amelio made this

0:33:03.320 --> 0:33:06.920
<v Speaker 1>move in an effort to right the corporate ship. Jobs

0:33:06.920 --> 0:33:09.520
<v Speaker 1>would end up contacting the Board of directors and he

0:33:09.720 --> 0:33:13.520
<v Speaker 1>argued that Amelio should be removed as CEO, that Apple

0:33:13.600 --> 0:33:15.800
<v Speaker 1>was on the verge of collapse and that a series

0:33:15.840 --> 0:33:19.200
<v Speaker 1>of bad decisions made by the last three CEOs had

0:33:19.200 --> 0:33:22.480
<v Speaker 1>put the company in a terrible position. The board agreed

0:33:22.560 --> 0:33:25.800
<v Speaker 1>with Jobs. They removed Amelio, and then Jobs took over

0:33:25.840 --> 0:33:29.920
<v Speaker 1>as interim CEO. He would become the official CEO of

0:33:29.960 --> 0:33:34.080
<v Speaker 1>Apple by two thousand. Jobs made some really big changes

0:33:34.320 --> 0:33:37.400
<v Speaker 1>soon after his arrival, which included canceling a lot of

0:33:37.400 --> 0:33:41.000
<v Speaker 1>projects that were in development. And also firing people. It

0:33:41.080 --> 0:33:44.400
<v Speaker 1>was around this time that the term getting jobs emerged,

0:33:44.480 --> 0:33:46.560
<v Speaker 1>meaning you didn't want to find yourself alone in a

0:33:46.640 --> 0:33:48.960
<v Speaker 1>room with Steve Jobs for fear of getting fired on

0:33:49.000 --> 0:33:52.560
<v Speaker 1>the spot. Jobs called for an end of the licensing

0:33:52.600 --> 0:33:56.280
<v Speaker 1>program for Macintosh technologies. He wanted to see no more

0:33:56.360 --> 0:34:00.440
<v Speaker 1>Mac clones on the market, and he wanted everything to

0:34:00.560 --> 0:34:04.040
<v Speaker 1>fall fully under the control of the company. Again, no

0:34:05.080 --> 0:34:07.920
<v Speaker 1>version of Macintosh should ever come from anyone other than Apple,

0:34:08.440 --> 0:34:11.120
<v Speaker 1>and while Apple developers continue to go down the legacy

0:34:11.160 --> 0:34:14.439
<v Speaker 1>operating system route for a couple of versions, Jobs helped

0:34:14.480 --> 0:34:18.319
<v Speaker 1>foster in the mac os ten build, sometimes called mac

0:34:18.360 --> 0:34:22.680
<v Speaker 1>os X because it's Roman numeral ten. This introduced many

0:34:22.680 --> 0:34:26.600
<v Speaker 1>of the features that were originally promised in Copeland, so

0:34:26.640 --> 0:34:28.840
<v Speaker 1>it wasn't exactly the same as the one that was

0:34:28.880 --> 0:34:30.800
<v Speaker 1>in development, but it had a lot of the elements

0:34:31.360 --> 0:34:34.160
<v Speaker 1>that were in development from a few years back. Jobs

0:34:34.160 --> 0:34:37.839
<v Speaker 1>even presented at a Macworld conference and he included a

0:34:37.880 --> 0:34:42.440
<v Speaker 1>live streamed message from the rival, you know, the the

0:34:42.480 --> 0:34:46.680
<v Speaker 1>anti Apple, the big adversary, Bill Gates, keeping in a

0:34:46.760 --> 0:34:48.839
<v Speaker 1>mind that Apple and Microsoft had had a very long

0:34:48.880 --> 0:34:53.680
<v Speaker 1>relationship with each other, sometimes adversarial, but Bill Gates live

0:34:53.760 --> 0:34:57.680
<v Speaker 1>streamed a presentation at Macworld, and he announced that he

0:34:57.760 --> 0:35:00.680
<v Speaker 1>was making a one fifty million dollar our investment in

0:35:00.719 --> 0:35:05.120
<v Speaker 1>Apple on behalf of Microsoft, which got a rousing round

0:35:05.160 --> 0:35:08.040
<v Speaker 1>of booze from the crowd, who were all very much,

0:35:08.800 --> 0:35:14.879
<v Speaker 1>very passionate Apple supporters and thus a little biased against Microsoft.

0:35:15.360 --> 0:35:19.200
<v Speaker 1>Apple introduced an all in one computer called the iMac.

0:35:19.440 --> 0:35:23.400
<v Speaker 1>The iMac represented a return to Apple's focus on home users.

0:35:23.920 --> 0:35:27.040
<v Speaker 1>It was aesthetically pleasing, it was available in various colors

0:35:27.040 --> 0:35:30.400
<v Speaker 1>after its initial launch, and it seemed to go back

0:35:30.440 --> 0:35:32.880
<v Speaker 1>to what set Apple apart in the first place, this

0:35:33.000 --> 0:35:36.640
<v Speaker 1>idea of a friendly looking machine that's meant for the

0:35:36.680 --> 0:35:42.120
<v Speaker 1>average person, not something that is cold and calculating or intimidating.

0:35:42.600 --> 0:35:46.640
<v Speaker 1>The iMac also adopted universal standards like USB and got

0:35:46.719 --> 0:35:49.239
<v Speaker 1>rid of those proprietary connectors Apple I've been using for

0:35:49.280 --> 0:35:53.080
<v Speaker 1>more than a decade. So that bus that Apple had developed,

0:35:53.120 --> 0:35:56.440
<v Speaker 1>which was useful for the Macintosh, was abandoned for the

0:35:56.520 --> 0:36:03.000
<v Speaker 1>more standardized universal Cereal bus. The USB in Apple retired

0:36:03.040 --> 0:36:07.000
<v Speaker 1>the Macintosh name when it discontinued the Power Macintosh. That

0:36:07.080 --> 0:36:09.880
<v Speaker 1>was the last machine to actually be called a Macintosh

0:36:10.000 --> 0:36:12.640
<v Speaker 1>from that point forward. The computers in this line were

0:36:12.640 --> 0:36:16.239
<v Speaker 1>just referred to as MAX, not Macintosh Is. A couple

0:36:16.280 --> 0:36:19.040
<v Speaker 1>of years later, Max began to include hardware that had

0:36:19.080 --> 0:36:24.040
<v Speaker 1>been standard in BCS for a while, like CD rewriteable drives,

0:36:24.440 --> 0:36:26.200
<v Speaker 1>so those are optical drives that would allow you to

0:36:26.200 --> 0:36:29.680
<v Speaker 1>write data to c d s. Until about two thousand

0:36:29.719 --> 0:36:32.840
<v Speaker 1>two thousand one, you couldn't find that in MAX. And

0:36:32.880 --> 0:36:36.279
<v Speaker 1>then Apple also began including DVD drives on machines. The

0:36:36.320 --> 0:36:39.280
<v Speaker 1>Mac was now getting position not just as a computer,

0:36:39.880 --> 0:36:43.960
<v Speaker 1>but as a media device. This also helped boost sales

0:36:44.160 --> 0:36:47.480
<v Speaker 1>and launches of other products like the iPod and iTunes.

0:36:47.800 --> 0:36:52.400
<v Speaker 1>Helped even more because Apple products worked really, really well together,

0:36:53.120 --> 0:36:55.719
<v Speaker 1>and now you could get Apple devices to communicate with

0:36:55.760 --> 0:36:59.080
<v Speaker 1>stuff made from other manufacturers, but the experience was never

0:36:59.120 --> 0:37:01.680
<v Speaker 1>as seamless or easy. A good example of this is

0:37:01.719 --> 0:37:05.080
<v Speaker 1>iPods and iTunes. I had an iPod, I did not

0:37:05.200 --> 0:37:08.000
<v Speaker 1>have a Mac, and I found it really frustrating to

0:37:08.239 --> 0:37:12.640
<v Speaker 1>update my iPod to transfer music over the iTunes build

0:37:12.640 --> 0:37:16.279
<v Speaker 1>for Windows just didn't work as well as what I

0:37:16.360 --> 0:37:18.839
<v Speaker 1>kept hearing about, because again I didn't have a Mac.

0:37:18.880 --> 0:37:21.400
<v Speaker 1>I finally got a Mac and then the experience was

0:37:21.400 --> 0:37:24.279
<v Speaker 1>incredible and I realized, oh, this is a very nice

0:37:24.320 --> 0:37:26.719
<v Speaker 1>design approach where you make sure that all of your

0:37:26.719 --> 0:37:31.000
<v Speaker 1>stuff works seamlessly, and maybe you make sure it doesn't

0:37:31.040 --> 0:37:34.839
<v Speaker 1>work quite as well if you're using other people's stuff.

0:37:35.280 --> 0:37:39.080
<v Speaker 1>I can't say for certain that the decisions were conscious

0:37:39.120 --> 0:37:42.440
<v Speaker 1>to make that happen, or that it all was purposeful,

0:37:43.239 --> 0:37:46.320
<v Speaker 1>but it was certainly convenient and in favor of Apple

0:37:46.480 --> 0:37:49.080
<v Speaker 1>because it meant that you were much more likely to

0:37:49.120 --> 0:37:52.640
<v Speaker 1>go with a full Apple ecosystem because everything just worked

0:37:52.640 --> 0:37:55.359
<v Speaker 1>with each other, as opposed to mixing and matching where

0:37:55.360 --> 0:37:58.680
<v Speaker 1>things may not work so smoothly. Oh and Jobs also

0:37:58.760 --> 0:38:02.720
<v Speaker 1>oversaw the transition for power PC machines to Intel powered

0:38:02.760 --> 0:38:07.440
<v Speaker 1>Mac computers, and to this day Mac uses Intel chips.

0:38:07.480 --> 0:38:10.880
<v Speaker 1>So that's kind of how Apple survived the PC wars.

0:38:11.000 --> 0:38:14.760
<v Speaker 1>For a really long time. The company was just largely

0:38:15.160 --> 0:38:19.560
<v Speaker 1>dependent upon a proven but aging technology in the form

0:38:19.600 --> 0:38:23.760
<v Speaker 1>of the Apple two platform. It's it's hard to stress

0:38:23.840 --> 0:38:27.400
<v Speaker 1>how important the Apple two was to Apple the company.

0:38:27.480 --> 0:38:32.000
<v Speaker 1>Without the Apple two platform and it's long long life

0:38:32.000 --> 0:38:35.560
<v Speaker 1>cycle and the fact that it was relevant or managed

0:38:35.560 --> 0:38:38.959
<v Speaker 1>to remain relevant for so long, Without that, Apple would

0:38:39.000 --> 0:38:43.439
<v Speaker 1>not have lasted because it was really putting its neck

0:38:43.440 --> 0:38:48.719
<v Speaker 1>out with some high risk projects like Lisa and the

0:38:48.760 --> 0:38:53.680
<v Speaker 1>Apple three that ultimately failed. Without that Apple to safety net,

0:38:53.960 --> 0:38:56.160
<v Speaker 1>the company probably would not have existed. It wouldn't have

0:38:56.160 --> 0:38:58.120
<v Speaker 1>it wouldn't have lasted, and all we would have at

0:38:58.160 --> 0:39:01.680
<v Speaker 1>this point would be IBM compare doable windows based machines

0:39:01.880 --> 0:39:04.440
<v Speaker 1>after the Apple two platform is all about leaning heavily

0:39:04.560 --> 0:39:08.720
<v Speaker 1>on high end, high profit margin computers in the Macintosh era,

0:39:08.960 --> 0:39:11.560
<v Speaker 1>which ended up being unsustainable in the long run and

0:39:11.640 --> 0:39:15.000
<v Speaker 1>nearly led to the company's collapse. Only when Steve Jobs

0:39:15.040 --> 0:39:17.520
<v Speaker 1>came back and laid down the law did the company

0:39:17.600 --> 0:39:20.799
<v Speaker 1>seem to get its footing again. Would Apple have survived

0:39:21.000 --> 0:39:24.799
<v Speaker 1>without Steve Jobs returning to the company, Well, it's hard

0:39:24.840 --> 0:39:27.960
<v Speaker 1>to say, because obviously we can only see what has happened,

0:39:28.000 --> 0:39:31.319
<v Speaker 1>not what would have happened. But Jobs certainly had a

0:39:31.400 --> 0:39:34.960
<v Speaker 1>major impact on the performance of Apple, even if it

0:39:35.080 --> 0:39:39.520
<v Speaker 1>was just through what people called his reality distortion field. Today,

0:39:39.800 --> 0:39:46.879
<v Speaker 1>Apple is an insanely successful and valuable company. It's constantly

0:39:47.000 --> 0:39:50.239
<v Speaker 1>right there on the verge of becoming a trillion dollar company,

0:39:50.239 --> 0:39:52.959
<v Speaker 1>But there were times in its history when it could

0:39:52.960 --> 0:39:56.320
<v Speaker 1>have joined the ranks of Commodore or Tandy or Atari.

0:39:56.960 --> 0:39:59.160
<v Speaker 1>It's kind of amazing it survived long enough to become

0:39:59.200 --> 0:40:02.200
<v Speaker 1>the powerhouse that is now, and also amazing that much

0:40:02.200 --> 0:40:04.960
<v Speaker 1>of its success is due to stuff that isn't a

0:40:04.960 --> 0:40:07.960
<v Speaker 1>computer at all, like the iPod or the iPhone or

0:40:08.000 --> 0:40:12.960
<v Speaker 1>the iTunes suite. That's pretty phenomenal. In our next episode,

0:40:12.960 --> 0:40:16.200
<v Speaker 1>i'll explore how IBM got into the personal computer market

0:40:16.520 --> 0:40:19.080
<v Speaker 1>and why the company made the decision to get out

0:40:19.120 --> 0:40:21.759
<v Speaker 1>of it. We'll also learn how tons of companies were

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<v Speaker 1>able to create machines that emulated IBM's design and to

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<v Speaker 1>find the PC market as it stands today. If you

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<v Speaker 1>guys have suggestions for future topics of tech stuff, maybe

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<v Speaker 1>time I covered it. Maybe there's a brand new technology

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<v Speaker 1>or a company or a person in tech that you

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<v Speaker 1>think I should cover. Or maybe there's someone you would

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