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Speaker 1: Welcome to tech Stuff, a production from iHeartRadio. Hey there,

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Speaker 1: and welcome to tech Stuff. I'm your host, Jonathan Strickland.

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Speaker 1: I'm an executive producer with iHeart Podcasts and how the

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Speaker 1: tech are you? It is time for a classic episode. Now.

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Speaker 1: Last week we had the Macintosh Story Part one, so

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Speaker 1: today we're going to continue that with the McIntosh Story

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Speaker 1: Part two. If you have not heard part one, well

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Speaker 1: just check the publication from last Friday. You should be

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Speaker 1: able to pull that and listen to it. But originally

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Speaker 1: this episode published way back on June seventh, twenty seventeen.

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Speaker 2: Hope you enjoy.

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Speaker 1: We covered how the mac was born out of strife.

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Speaker 1: It was not an easy berth. As it turns out,

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Speaker 1: there was a lot of argument going on arguing, i

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Speaker 1: should say, going on behind the scenes. It started off

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Speaker 1: as a low priced comput that was the intent that

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Speaker 1: was supposed to make personal computers more accessible to the

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Speaker 1: average person. And then Steve Jobs effectively took over the

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Speaker 1: project and changed it significantly. Rather than having a cheap machine,

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Speaker 1: it became an expensive alternative to the IBM personal computer

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Speaker 1: that had just debuted in the early nineteen eighties. So

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Speaker 1: the IBM Personal computer came out and actually posed a

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Speaker 1: serious threat to Apple. The Macintosh was supposed to be

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Speaker 1: an answer to that. The Apple two and Apple three

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Speaker 1: lines were distinct, and more about them in a little bit,

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Speaker 1: But the Macintosh was really supposed to redefine computing and

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Speaker 1: to put Apple back on track to being ahead of

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Speaker 1: the game, as it were. But what actually happened next, Well,

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Speaker 1: we ended right around nineteen eighty five. Last time, nineteen

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Speaker 1: eighty four, nineteen eighty five. The Macintosh computer debuted in

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Speaker 1: nineteen eighty four, and Apple was trying to rebound from

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Speaker 1: a couple of bit blows. Now. That first one came

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Speaker 1: in nineteen eighty one. That's when IBM got involved in

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Speaker 1: the personal computer market with its own PC. Before long,

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Speaker 1: IBM PC sales were outpacing Apple to sales. And the

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Speaker 1: second blow came in nineteen eighty three. That's when Apple

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Speaker 1: launched Lisa. Lisa was a high end computer. It was

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Speaker 1: a project that was being pushed primarily by Steve Jobs,

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Speaker 1: one of the co founders of Apple. Steve Jobs and

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Speaker 1: Steve Wozniak were the two Steves who founded the company.

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Speaker 1: But Lisa was not a huge success. It had a

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Speaker 1: graphic user interface or gouey gui uh, and it had

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Speaker 1: a mouse, which was very innovative for the time. The

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Speaker 1: only other company that really played with graphic user interfaces

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Speaker 1: and a computer mouse was Xerox, and they had only

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Speaker 1: done it internally. They didn't make this a product that

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Speaker 1: other companies and consumers could go out and purchase. Apple

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Speaker 1: decided to change that. However, r Lisa had a really

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Speaker 1: hefty price tag. It was ten thousand dollars when it

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Speaker 1: went on sale, and it was meant for business applications,

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Speaker 1: but at that price, very few businesses were willing to

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Speaker 1: take the plunge. Remember those are nineteen eighty three dollars.

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Speaker 1: That's significant, even more so than ten thousand dollars is today.

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Speaker 1: Ten thousand dollars is already a huge amount of money.

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Speaker 1: If you adjust for inflation, you're talking around almost twenty

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Speaker 1: thousand dollars.

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Speaker 2: That's a lot.

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Speaker 1: So the GUI also ate up a lot of the

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Speaker 1: computer's processing power. So not only did it cost a lot,

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Speaker 1: but the operating system alone took up so much of

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Speaker 1: the computer's processing power that you couldn't run very many

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Speaker 1: applications on top of it. And that's not a great

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Speaker 1: selling point. Like this is expensive, but at least you

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Speaker 1: can't run much software on it. That doesn't make a

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Speaker 1: really good tagline if you're trying to sell a computer,

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Speaker 1: just an fyi in case you ever want to to

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Speaker 1: make and sell computers in the future. Then you also

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Speaker 1: had very few developers who were willing to put forth

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Speaker 1: the effort to create programs for a computer that was

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Speaker 1: so elite, so expensive that it had a very small market.

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Speaker 1: If you are in the business of making software and

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Speaker 1: you have a limited amount of time and money on

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Speaker 1: your hands, you want to dedicate that time and money

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Speaker 1: toward projects that are likely to give you the biggest profit.

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Speaker 1: And if you're talking about the types of organizations that

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Speaker 1: are willing to lay down ten grand per computer, that's

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Speaker 1: a very small market. So software developers were not eager.

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Speaker 2: To jump on the bandwagon there.

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Speaker 1: So Lisa was effectively a flop. It was kind of

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Speaker 1: doomed from the start. Now, as I mentioned right at

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Speaker 1: the beginning of this episode, Steve Jobs effectively took over

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Speaker 1: the Macintosh project.

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Speaker 2: Now, this was after.

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Speaker 1: The then CEO of Apple demanded that Steve Jobs stop

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Speaker 1: interfering with Lisa. Macintosh was a totally different project than

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Speaker 1: Steve Jobs once he was pulled off the Lisa project

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Speaker 1: and said, you can't bother them anymore, looked around, saw

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Speaker 1: the Macintosh project, which was completely independent, and said, I'm

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Speaker 1: going to make that my pet project. And so he

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Speaker 1: began to involve himself with, or, in the words of

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Speaker 1: some of his contemporaries at the time, interfere with the

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Speaker 1: Macintosh project. And as a result, McIntosh transformed from a

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Speaker 1: humble machine to an expensive consumer level device with a

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Speaker 1: guy and a mouse. It didn't have a graphic user

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Speaker 1: interface before Steve Jobs got involved. It was initially priced

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Speaker 1: at twenty four hundred and ninety five dollars, which is

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Speaker 1: expensive just for a basic computer today before you adjust

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Speaker 1: for inflation. If you do adjust for inflation, that's more

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Speaker 1: like five thousand, seven hundred bucks. That's a huge amount

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Speaker 1: of money.

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Speaker 2: To ask to pay for a PC.

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Speaker 1: So if you wanted a Macintosh in nineteen eighty four

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Speaker 1: when they first launched, you'd be plopping down the equivalent

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Speaker 1: of fifty seven hundred dollars in today's money.

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Speaker 2: And keep in mind that the.

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Speaker 1: Original plan was that this computer was supposed to cost

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Speaker 1: five hundred dollars, which would be closer to twelve hundred

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Speaker 1: bucks today, which is still expensive. Obviously, if you wanted

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Speaker 1: to pay for a brand new computer, twelve hundred dollars

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Speaker 1: is closer to the top end of your basic machines.

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Speaker 1: I mean, obviously, you can trick out a machine to

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Speaker 1: be much more expensive than that if you want top

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Speaker 1: of the line processors, graphics cards, cooling systems, all that

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Speaker 1: sort of stuff. But if you're just buying off the shelf,

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Speaker 1: twelve hundred dollars is already pretty expensive. It's not the

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Speaker 1: top end, but it's healthy.

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Speaker 2: Right Anyway.

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Speaker 1: That was the initial goal was a five hundred dollars

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Speaker 1: price point in nineteen eighty four dollars, which would be

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Speaker 1: about twelve hundred dollars today, and it.

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Speaker 2: Blew that out of the water.

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Speaker 1: I should point out, however, that this higher price tag

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Speaker 1: is not entirely the fault of Steve Jobs. I don't

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Speaker 1: want to give you that impression. It's true that Jobs

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Speaker 1: added a lot of features that necessitated a price hike.

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Speaker 1: No matter what, it was going to cost more than

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Speaker 1: five hundred dollars because of the changes Steve Jobs made.

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Speaker 1: But as for that price tag of twenty four hundred

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Speaker 1: ninety five dollars that credit really needs to go to

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Speaker 1: the then Apple CEO John Scully. Scully reportedly decided that

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Speaker 1: the initial price tag for the mac which was originally

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Speaker 1: going to be fifteen hundred dollars back in nineteen eighty four,

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Speaker 1: was too low. He actually said, fifteen hundred bucks, that's

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Speaker 1: that's not high enough for us to really see a

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Speaker 1: huge profit off that. So he knocked it up to

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Speaker 1: twenty four ninety five, and that way the Macintosh would

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Speaker 1: see a profit margin of fifty five percent, meaning you'd

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Speaker 1: make fifty five percent over what you paid to create

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Speaker 1: the computer. He didn't want to have a slim profit margin. However,

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Speaker 1: of course, if you increased the price of a machine dramatically,

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Speaker 1: then you're going to decrease the number of sales you make.

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Speaker 1: So it's a very delicate balance figuring out how much

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Speaker 1: to price a product so that you get the maximum

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Speaker 1: amount of profit from your investment. And Scully decided to

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Speaker 1: go pretty hard for that investment with that fifty five

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Speaker 1: percent profit margin. And this also began Apple's long history

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Speaker 1: of being a company associated with the idea that its

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Speaker 1: hardware is overpriced. You've probably heard that if you've ever

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Speaker 1: taken any look into Apple products, that you're paying a

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Speaker 1: premium just for the Apple brand name because the products

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Speaker 1: are priced more than what they would be priced by

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Speaker 1: a competitor for an equivalent machine. That's not always the case,

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Speaker 1: by the way, but it happened frequently enough in Apple's

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Speaker 1: past that it became associated with the company's identity. People

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Speaker 1: thought of Apple as being an elite company, that you

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Speaker 1: were paying that extra price, and that you could be

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Speaker 1: saving money if you just went with a different computer manufacturer,

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Speaker 1: which in some eras was absolutely true, just not in

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Speaker 1: all eras. Back in those earliest days of Macintosh, it

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Speaker 1: certainly was the case that is undeniable now. Initial reviews

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Speaker 1: of the Macintosh actually heaped a lot of praise on

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Speaker 1: the computer. Consumer Reports wrote an absolutely glowing review of

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Speaker 1: the original Macintosh, saying that the interface really transformed computing.

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Speaker 1: The reviews stated that the interface, including the windows that

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Speaker 1: it would use the mouse that you would use to

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Speaker 1: navigate the guy, were more than just gimmicks, which you know,

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Speaker 1: you could have easily seen them as just being gimmicks.

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Speaker 1: Everyone else was used to using text based interfaces and keyboards,

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Speaker 1: so this wasn't a guaranteed success right all of the gate.

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Speaker 1: But Consumer Reports said, no, they got it right. This

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Speaker 1: actually makes sense. They said that it actually transformed computing

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Speaker 1: from a system of Labrinthian rules to something that the

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Speaker 1: average per could easily grasp. A Macintosh wasn't a cryptic

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Speaker 1: machine that required the user to learn dozens of command

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Speaker 1: line terms, like you know, various file trees and ways

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Speaker 1: to navigate between different directories. You didn't have to do

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Speaker 1: that because it was all graphically presented for you and

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Speaker 1: you just click on whatever it was you needed. It

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Speaker 1: was a device that a novice could learn to navigate

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Speaker 1: within like half an hour of using it.

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Speaker 2: There were some drawbacks, however.

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Speaker 1: That same Consumer Reports review pointed out that the operating

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Speaker 1: system on the Macintosh took up an enormous amount of

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Speaker 1: the computer's processing power. The computer had enough memory to

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Speaker 1: store about eight and a half pages of text after

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Speaker 1: you factored in the operating system. That's text, not images

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Speaker 1: or video or audio. All of that stuff would come later.

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Speaker 1: Just eight and a half pages of text. That's all

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Speaker 1: the memory it could have after you ended up booting

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Speaker 1: up the operating system.

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Speaker 2: This was one of the reasons that I was.

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Speaker 1: A real snob about Guy interfaces or GUY based computers.

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Speaker 1: I hated the day that my dad decided to install

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Speaker 1: Windows on our IBM compatible machine, which was similar in

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Speaker 1: many ways to the Mac operating system. And the reason

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Speaker 1: I was upset about it was because the Windows operating

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Speaker 1: system required so much of our computer's ability to process

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Speaker 1: information that it limited the kind of software we could

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Speaker 1: run on it. If your software required more than what

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Speaker 1: the computer could supply, you ran into problems, and I

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Speaker 1: attributed a lot of that to the operating system. I

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Speaker 1: much preferred DOSS, which was so slimmed down by comparison

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Speaker 1: that you could run lots of different software on it. Well,

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Speaker 1: the same thing was true with the early Mac operating system.

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Speaker 1: It just hogged up a lot of the initial Macintosh's abilities.

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Speaker 1: And to be fair, the original Macintosh only had one

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Speaker 1: hundred and twenty eight kilobytes of memory, so it wasn't

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Speaker 1: exactly packing an enormous amount of memory into that package.

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Speaker 1: We're going to take a quick break talking about the

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Speaker 1: Macintosh in order to thank our sponsors.

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Speaker 2: More and more software.

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Speaker 1: Developers began to create programs that could only run in

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Speaker 1: GUI environments, which kind of forced the issue to switch

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Speaker 1: from the DOSS and other operating systems that involved command

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Speaker 1: lines to shift over to graphic user interfaces because a

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Speaker 1: lot of software ended up only being compatible with graphic

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Speaker 1: user interface systems, and that helped force the issue. I

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Speaker 1: still am bitter about that, even though today I probably

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Speaker 1: wouldn't be able to.

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Speaker 2: If you put me in.

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Speaker 1: From an Apple two E or an early IBM PC

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Speaker 1: that was just running DOSS, I wouldn't remember any of

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Speaker 1: the commands besides DR, which is directory DOS, I would

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Speaker 1: be lost. But I still am kind of bitter about

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Speaker 1: all this. Now, I also be fair. I'm an elitist

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Speaker 1: computer nerd type. I'm just an elitist computer nerd type

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Speaker 1: who lacks the information to be able to effectively be

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Speaker 1: an elitist, which is the saddest kind of nerd. Apple

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Speaker 1: obviously had really high hopes for that original Macintosh, but

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Speaker 1: they had also had really high hopes for Lisa, and

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Speaker 1: that didn't pan out back in nineteen eighty one, which

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Speaker 1: was back when the Macintosh was still in development. It

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Speaker 1: didn't debut till nineteen eighty four. Keep in mind, in

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Speaker 1: nineteen eighty one, Apple had a plan, and their plan

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Speaker 1: was that they would sell two point two million Macintosh

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Speaker 1: computers by nineteen eighty five by the end of nineteen

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Speaker 1: eighty five, but that plan was based upon a launch

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Speaker 1: date that would happen sometime in nineteen eighty two, because remember,

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Speaker 1: back then, they were still looking at creating a cheap

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Speaker 1: alternative to the other computers like the Apple two and

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Speaker 1: other competing computers on the market, so they had high

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Speaker 1: hopes that they would be able to sell two point

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Speaker 1: two million units by nineteen eighty five. The computer wasn't

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Speaker 1: even available for purchase until nineteen eighty four, so that

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Speaker 1: set them back, and even if they had launched in

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Speaker 1: nineteen eighty two, they would have had to sell around

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Speaker 1: fifty thousand computers every month to hit that two point

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Speaker 1: two million mark within the end of nineteen eighty five.

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Speaker 1: They did have an enormous start. The Macintosh marketing department

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Speaker 1: was great for the launch of the computer, and they

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Speaker 1: sold quite a bit when they first went on the

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Speaker 1: market because people were really excited about it. But after

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Speaker 1: that initial excitement, they weren't able to capitalize on creating

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Speaker 1: a momentum and it died off pretty quickly. The marketing

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Speaker 1: kind of failed after that initial launch. The Apple blew

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Speaker 1: too much money early on and didn't have enough to

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Speaker 1: support it throughout its an launch, So after a successful

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Speaker 1: couple of first months, sales dropped precipitously down to like

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Speaker 1: five thousand units a month, way below the number they

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Speaker 1: would need. So by the end of nineteen eighty five

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Speaker 1: they had not sold two point two million units as

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Speaker 1: they had originally planned. It was more like two hundred

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Speaker 1: and fifty thousand units, a huge shortfall. The Macintosh was

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Speaker 1: not quite a flop like Lisa, but it wasn't performing

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Speaker 1: as well in the market as Apple had hoped. Now

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Speaker 1: it was impressive, but it was suffering from a similar

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Speaker 1: issue as Lisa. It didn't have a lot of applications

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Speaker 1: available for it, not as many as the competing ibmpcs had.

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Speaker 1: Apple's then CEO admitted as much later on John Scully.

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Speaker 1: He said, Yeah, we didn't do enough to develop software

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Speaker 1: to run this computer. So while the computer was nice

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Speaker 1: to look at, the graphic user interface was interesting, there

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Speaker 1: just wasn't a whole lot to do with it. You

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Speaker 1: didn't have things like spreadsheet programs. There was a severe

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Speaker 1: lack of utility with their computer. Really, they only had

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Speaker 1: two applications They had mac Wright which was a word

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Speaker 1: processing program, and they had mac Paint, which was a

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Speaker 1: simple graphics program, but that was about it.

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Speaker 2: They didn't have the other stuff you would associate with

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Speaker 2: other computers.

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Speaker 1: So while it was user friendly, it didn't have a

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Speaker 1: lot of usability to it, like there just wasn't enough

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Speaker 1: to do, so that also hurt Macintosh sales. Now you

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Speaker 1: might also remember from our last episode, Like I said,

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Speaker 1: the CEO of Apple at this time was John Scully,

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Speaker 1: whom Steve Jobs had lured away from Pepsi. The story

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Speaker 1: is that Scully was kind of in line to become

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Speaker 1: the chairman of the board over at Pepsi, but it

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Speaker 1: was on a much longer timeline than Scully wanted, and

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Speaker 1: that Steve Jobs was able to convince Scully to come

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Speaker 1: over by saying to him, do you want to spend

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Speaker 1: the rest of your life selling sugar water or do

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Speaker 1: you want a chance to change the world once again?

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Speaker 2: Steve Jobs master salesman.

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Speaker 1: He could really have a turn of phrase and get

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Speaker 1: you to believe in him even when the odds were

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Speaker 1: stacked against him. Scully himself would say that that phrase

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Speaker 1: really convinced him to come over to Apple, and he

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Speaker 1: said so in a documentary, so you can actually check

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Speaker 1: this out. It's a documentary titled Bloomberg Game Changers Steve Jobs,

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Speaker 1: so it's part of a series. It was a really

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Speaker 1: effective sales pitch, as it turns out, so Scully and

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Speaker 1: Jobs initially worked really well together leading up to the

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Speaker 1: Macintosh launch. Scully's predecessor was Mike Markula, which in the

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Speaker 1: last episode you might remember was the guy who stepped

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Speaker 1: in to remove Steve Jobs from the Lisa project. Markula

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Speaker 1: was an early investor in Apple and had transitioned from

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Speaker 1: CEO to board members, so he retired as CEO. He resigned,

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Speaker 1: transitioning over to the board. He had told his wife

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Speaker 1: that he wasn't going to stay on with Apple for

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Speaker 1: very long, although he stayed on much longer than he

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Speaker 1: initially meant to. He just stayed on in the capacity

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Speaker 1: of member of the board as opposed to the CEO,

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Speaker 1: and then John Scully took over the job as CEO. Now,

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Speaker 1: John Scully would serve as the CEO from about nineteen

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Speaker 1: eighty five to about nineteen ninety three ish. Ninety three

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Speaker 1: ninety four is really when we're looking at that transition. Effectively,

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Speaker 1: ninety three Scully initially got along well with Jobs, but

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Speaker 1: when the Macintosh sales began to drop off, new tensions

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Speaker 1: developed between the CEO and Apple's co founder, and that's

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Speaker 1: not great when you have kind of clashing personalities at

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Speaker 1: the top level of your company.

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Speaker 2: Now, John Scully also has the dubious.

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Speaker 1: Distinction of being on the Worst American CEO's List curated

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Speaker 1: by Conde Nas. He's actually number fourteen on that list

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Speaker 1: back when they published it a few years ago. Now

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Speaker 1: more on why John Scully made that list as this

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Speaker 1: episode progresses. Apple at the time had not completely switched

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Speaker 1: over to the Macintosh line as its primary product, so

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Speaker 1: you might think, oh, it went Apple two to Apple

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Speaker 1: three to Macintosh and they discontinued the other computers, but

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Speaker 1: that's not true. They were actually producing different lines of

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Speaker 1: computers simultaneously, and Apple's structure was designed around this, where

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Speaker 1: each product had its own division, so it wasn't like

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Speaker 1: you had one big division of all these different products

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Speaker 1: grouped together. You had an Apple two division, an Apple

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Speaker 1: three division, and a Macintosh division. You also had a

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Speaker 1: Lisa division until they discontinued that product. So the Apple

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Speaker 1: two and Apple three computers continued to be manufactured and

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Speaker 1: sold by Apple side by side with Macintosh computers. The

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Speaker 1: Apple three ended up being a failure. It was a flop,

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Speaker 1: very much like Lisa. It just didn't do so well.

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Speaker 1: It was meant to be, again, a business level machine,

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Speaker 1: not a personal computer, and it was priced as such,

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Speaker 1: and there just wasn't enough there for businesses to jump

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Speaker 1: on board with it. There were cheaper IBM computers coming out,

347
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Speaker 1: so that was more attractive from an expense side of things.

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Speaker 1: And like Lisa, there weren't a lot of developers creating

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Speaker 1: software for the Apple three, so it didn't make a

350
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Speaker 1: whole lot of sense to invest in the Apple three

351
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Speaker 1: platform if the IBM computer platform cost less and had

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Speaker 1: more development. So companies weren't adopting the Apple three. But

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Speaker 1: the Apple two continued to hold its own, so it

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Speaker 1: was still a big product even as the Macintosh came online.

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Speaker 2: The Apple two.

356
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Speaker 1: C computer debuted in nineteen eighty four. That was the

357
00:21:00,440 --> 00:21:03,920
Speaker 1: same year that the Macintosh came out, so Apple two

358
00:21:04,080 --> 00:21:08,960
Speaker 1: C stood for well, a more advanced Apple two computer. Actually,

359
00:21:08,960 --> 00:21:12,040
Speaker 1: the letter system for Apple two computers is really confusing,

360
00:21:12,640 --> 00:21:16,440
Speaker 1: because the Apple two E came out in nineteen eighty three,

361
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Speaker 1: and then the Apple to C came out in nineteen

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Speaker 1: eighty four, so they weren't going in alphabetical order, and

363
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Speaker 1: that is a bit more than a bit confusing. But

364
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Speaker 1: the Apple two C was Apple's first compact model, so

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00:21:30,560 --> 00:21:34,359
Speaker 1: the C kind of stood for compact. The computer's hardware

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Speaker 1: consisted of a case that had an incorporated keyboard and

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Speaker 1: a five and a quarter inch disk drive, and the

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Speaker 1: computer itself, which was separate from a monitor. It was

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Speaker 1: just the computer. You could slide that into a base

370
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Speaker 1: a stand essentially, and on top of the stand you

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Speaker 1: could put your monitor, so the computer would kind of

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00:21:52,200 --> 00:21:55,040
Speaker 1: slot in underneath where the monitor was. The monitor would

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Speaker 1: not sit directly on top of the computer case itself.

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Speaker 1: Apple would continue to make computers in the two C

375
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Speaker 1: line until nineteen ninety, so the Apple two continued to

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Speaker 1: go on sale to hit store shelves while the Macintosh

377
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Speaker 1: continued to evolve, so these separate products remained side by

378
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Speaker 1: side for quite some time. Apple launched an enhanced version

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Speaker 1: of the Apple Too E in nineteen eighty five, so

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Speaker 1: the two E continued as well.

381
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Speaker 2: It just got a bit of a beefier.

382
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Speaker 1: Version than the one that had launched a couple of

383
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Speaker 1: years earlier. It did not have a graphic user interface

384
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Speaker 1: like the Macintosh, and Apple would continue to make these

385
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Speaker 1: Apple Too computers available for quite some time. In fact,

386
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Speaker 1: that Advanced two E would continue to be on sale

387
00:22:48,560 --> 00:22:52,680
Speaker 1: until nineteen ninety three, so extending pretty far. Like you

388
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Speaker 1: would think that by ninety three you would have just

389
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Speaker 1: graphic user interface based computers, but you still had the

390
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Speaker 1: Apple two E Enhanced. And maybe one day I'll do

391
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Speaker 1: an episode dedicated just to those Apple line computers to

392
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Speaker 1: talk about the process of their evolution compared to Macintosh.

393
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Speaker 1: But that's not really what this episode's about. I just

394
00:23:13,720 --> 00:23:16,600
Speaker 1: went into touch base and explained that was going on

395
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Speaker 1: at the same time as the development for the mac Now,

396
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Speaker 1: in January nineteen eighty five, Apple tried to make the

397
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Speaker 1: best of a bad situation by launching the Macintosh Excel.

398
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Speaker 1: Only here's the thing. This was not the next Macintosh computer.

399
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Speaker 1: It was actually a rebranding of a different computer, namely

400
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Speaker 1: the Lisa Too. So remember the Lisa was a flop.

401
00:23:40,720 --> 00:23:43,679
Speaker 1: Then Apple decided to make a stripped down version of

402
00:23:43,720 --> 00:23:46,879
Speaker 1: the Lisa computer and sell it for a lower price

403
00:23:47,400 --> 00:23:52,360
Speaker 1: than that ten thousand dollars beast of a computer called Lisa.

404
00:23:53,600 --> 00:23:55,960
Speaker 1: Lisa too did not do well in sales either, so

405
00:23:56,000 --> 00:23:59,280
Speaker 1: then they rebranded it. They called it Macintosh. Xcel was

406
00:23:59,320 --> 00:24:04,760
Speaker 1: a Macintosh doing all right initially, but they weren't able

407
00:24:04,800 --> 00:24:07,159
Speaker 1: to move the Lisa two computers, so they rebranded it.

408
00:24:07,200 --> 00:24:11,120
Speaker 1: They called it the Excel, but it still didn't do

409
00:24:11,280 --> 00:24:14,919
Speaker 1: so well, and by April nineteen eighty five they discontinued it.

410
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Speaker 1: They stopped making the Macintosh Excel.

411
00:24:18,720 --> 00:24:21,359
Speaker 2: They still had a ton of inventory, but they weren't

412
00:24:21,400 --> 00:24:22,800
Speaker 2: making more of them.

413
00:24:23,280 --> 00:24:26,240
Speaker 1: They were able to offload some of the Macintosh Excel

414
00:24:26,359 --> 00:24:30,720
Speaker 1: devices with some big sales deals, so for example, they

415
00:24:30,760 --> 00:24:35,359
Speaker 1: sold five thousand of the Excel macintoshes to a company

416
00:24:35,400 --> 00:24:40,080
Speaker 1: called Sun Remarketing back in nineteen eighty seven. But ultimately

417
00:24:40,560 --> 00:24:44,240
Speaker 1: a lot of those units never left Apple warehouses.

418
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Speaker 2: They just sat there.

419
00:24:45,680 --> 00:24:48,360
Speaker 1: And so in nineteen eighty nine, they decided to take

420
00:24:48,400 --> 00:24:51,760
Speaker 1: a note from the video game crash of nineteen eighty three.

421
00:24:51,840 --> 00:24:54,639
Speaker 1: You might remember, Atari decided to get rid of a

422
00:24:54,680 --> 00:24:58,159
Speaker 1: lot of excess inventory by dumping them in landfills out

423
00:24:58,160 --> 00:25:00,840
Speaker 1: in the desert. Apple ended up doing the same thing,

424
00:25:00,880 --> 00:25:03,760
Speaker 1: only they dumped theirs in a landfill in Utah instead

425
00:25:03,800 --> 00:25:06,840
Speaker 1: of in a different state. So they all of those

426
00:25:07,680 --> 00:25:11,440
Speaker 1: Macintosh XL computers ended up in a landfill in Utah.

427
00:25:11,800 --> 00:25:15,880
Speaker 1: So somewhere in a Utah landfill, if you dig down,

428
00:25:16,400 --> 00:25:19,879
Speaker 1: you would be able to find old Macintosh XL Lisa

429
00:25:19,920 --> 00:25:25,160
Speaker 1: to computers. But don't do that. We'd be a colossally

430
00:25:25,359 --> 00:25:28,800
Speaker 1: bad idea and you could very easily injure yourself if

431
00:25:28,840 --> 00:25:31,480
Speaker 1: you dug in the wrong landfill. Phil, Plus you'd probably

432
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Speaker 1: be trespassing. So I'm officially telling you do not go

433
00:25:35,960 --> 00:25:39,639
Speaker 1: searching for the McIntosh XL because even if you.

434
00:25:39,720 --> 00:25:41,760
Speaker 2: Found one, it wouldn't work. At this point.

435
00:25:41,880 --> 00:25:46,199
Speaker 1: It's been exposed to elements since nineteen eighty nine, so

436
00:25:47,080 --> 00:25:47,920
Speaker 1: you don't want one.

437
00:25:48,840 --> 00:25:49,480
Speaker 2: Don't do it.

438
00:25:49,760 --> 00:25:52,440
Speaker 1: If I hear about you doing it will be very

439
00:25:52,480 --> 00:25:55,840
Speaker 1: put out. I've got a lot more to say about

440
00:25:55,920 --> 00:25:58,800
Speaker 1: the history of the Macintosh from nineteen eighty four to

441
00:25:58,920 --> 00:26:02,359
Speaker 1: nineteen ninety seven, but before I get into the next segment,

442
00:26:02,440 --> 00:26:13,919
Speaker 1: let's take a quick break to thank our sponsor. All Right, So,

443
00:26:14,320 --> 00:26:17,640
Speaker 1: a few months after the initial Macintosh hit store shelves,

444
00:26:17,720 --> 00:26:21,760
Speaker 1: Apple released an update called the Mac five twelve, also

445
00:26:21,840 --> 00:26:25,920
Speaker 1: known as the Fat Mac. This Macintosh had five hundred

446
00:26:25,920 --> 00:26:28,280
Speaker 1: and twelve kilobytes of memory, that's why it was called that,

447
00:26:28,520 --> 00:26:32,360
Speaker 1: so significantly more memory than the initial Macintosh, which remember,

448
00:26:32,600 --> 00:26:35,640
Speaker 1: only had one hundred and twenty eight kilobytes. That additional

449
00:26:35,680 --> 00:26:39,040
Speaker 1: memory made it easier to develop programs for the Macintosh

450
00:26:39,080 --> 00:26:42,600
Speaker 1: because the operating system no longer hogged nearly all of

451
00:26:42,640 --> 00:26:48,080
Speaker 1: the system's memory. But that extra memory came at a cost.

452
00:26:48,280 --> 00:26:52,040
Speaker 1: The fat max price tag was three thousand, three hundred

453
00:26:52,160 --> 00:26:56,760
Speaker 1: dollars in nineteen eighty five. That's equivalent to nearly eight

454
00:26:56,920 --> 00:27:03,080
Speaker 1: thousand dollars today. Incredibly expensive. Still, the fat mac had

455
00:27:03,119 --> 00:27:07,840
Speaker 1: a big advantage. It could actually do stuff pretty big

456
00:27:07,880 --> 00:27:10,320
Speaker 1: when you compare it to the original Mac and some

457
00:27:10,560 --> 00:27:14,680
Speaker 1: software and one additional piece of hardware really helped increase

458
00:27:14,760 --> 00:27:18,840
Speaker 1: the value of the Macintosh line. So on the software

459
00:27:18,880 --> 00:27:22,959
Speaker 1: side you had stuff like Aldice page Maker. It eventually

460
00:27:23,040 --> 00:27:26,480
Speaker 1: became Adobe page Maker, and it helped usher in a

461
00:27:26,520 --> 00:27:30,320
Speaker 1: new era of computing. This was the era of desktop publishing.

462
00:27:30,800 --> 00:27:34,320
Speaker 1: That was not a thing really before the Macintosh and

463
00:27:34,560 --> 00:27:38,680
Speaker 1: Aldie PageMaker made it a thing. So page Maker, if

464
00:27:38,680 --> 00:27:41,600
Speaker 1: you've never used it, it's sort of a layout program.

465
00:27:41,640 --> 00:27:46,560
Speaker 1: It allows you to lay out an attractive esthetic design

466
00:27:46,720 --> 00:27:50,439
Speaker 1: to stuff like newsletters, flyers.

467
00:27:49,960 --> 00:27:51,720
Speaker 2: That kind of thing. A program. If you wanted to

468
00:27:51,760 --> 00:27:52,880
Speaker 2: make a program.

469
00:27:52,480 --> 00:27:56,520
Speaker 1: For a play or some other event, you could use

470
00:27:56,560 --> 00:28:01,479
Speaker 1: page Maker to size everything and position properly so that

471
00:28:01,560 --> 00:28:05,040
Speaker 1: you had an attractive layout. And that meant that you

472
00:28:05,040 --> 00:28:08,239
Speaker 1: could suddenly do this at home, where if you had

473
00:28:08,280 --> 00:28:10,800
Speaker 1: the right equipment, or with a small business, you could

474
00:28:10,800 --> 00:28:13,280
Speaker 1: do it there. You didn't have to go to a

475
00:28:13,400 --> 00:28:18,360
Speaker 1: larger publishing house and contract with them to make your stuff.

476
00:28:18,760 --> 00:28:22,600
Speaker 1: This was revolutionary. It was one of the reasons why computers,

477
00:28:22,760 --> 00:28:27,800
Speaker 1: personal computers and small computers that businesses used were so popular.

478
00:28:28,040 --> 00:28:32,080
Speaker 1: It meant that they gave these entities, whether they were

479
00:28:32,160 --> 00:28:35,840
Speaker 1: individuals or small businesses, greater opportunities.

480
00:28:37,680 --> 00:28:39,640
Speaker 2: So that was very popular.

481
00:28:40,160 --> 00:28:44,120
Speaker 1: But there was also some other software that was helping out.

482
00:28:44,160 --> 00:28:47,480
Speaker 1: In nineteen eighty five, Microsoft began to publish software for

483
00:28:47,520 --> 00:28:52,040
Speaker 1: the Macintosh. So Microsoft and Apple haven't always had a

484
00:28:52,080 --> 00:28:58,160
Speaker 1: contentious relationship. In fact, Microsoft has often in Apple's past

485
00:28:58,360 --> 00:29:02,520
Speaker 1: helped the other company out with loans or with investments.

486
00:29:03,240 --> 00:29:06,240
Speaker 1: It hasn't always been a I hate you, no, I

487
00:29:06,320 --> 00:29:10,120
Speaker 1: hate you more kind of relationship. One of the earliest

488
00:29:10,160 --> 00:29:14,120
Speaker 1: programs Microsoft made available for the Macintosh was Word one

489
00:29:14,200 --> 00:29:17,520
Speaker 1: point oh, which was the first real competitor to Apple's

490
00:29:17,560 --> 00:29:22,680
Speaker 1: own Macwright software and eventually overtook Macwright. People began to

491
00:29:22,720 --> 00:29:26,480
Speaker 1: prefer Word one point oh and its later versions to

492
00:29:26,600 --> 00:29:31,560
Speaker 1: the Macwright word processing program. Another program that came over

493
00:29:31,640 --> 00:29:35,640
Speaker 1: to mac was the Excel one point oh software, the

494
00:29:35,720 --> 00:29:39,320
Speaker 1: spreadsheet program. In fact, it came to the Macintosh first.

495
00:29:39,320 --> 00:29:42,720
Speaker 1: It was a Macintosh exclusive for a while in the

496
00:29:42,760 --> 00:29:45,560
Speaker 1: early days. That was just the case because it wouldn't

497
00:29:45,600 --> 00:29:49,600
Speaker 1: even come to Windows until late nineteen eighty seven. So

498
00:29:49,720 --> 00:29:52,840
Speaker 1: Apple had a head start on Windows when it came

499
00:29:52,880 --> 00:29:55,720
Speaker 1: to Excel. But there's a whole story that I've talked

500
00:29:55,720 --> 00:29:59,000
Speaker 1: about in a previous episode about why that is, so

501
00:29:59,040 --> 00:30:01,240
Speaker 1: I'm not going to go into it here. On the

502
00:30:01,280 --> 00:30:06,120
Speaker 1: hardware side was a device called the Laser Writer. This

503
00:30:06,280 --> 00:30:11,000
Speaker 1: was a printer, a monstrously heavy printer. It weighed seventy

504
00:30:11,200 --> 00:30:15,800
Speaker 1: seven pounds that's about thirty five kilograms, and it had

505
00:30:15,840 --> 00:30:19,680
Speaker 1: a three hundred dots per inch resolution, pretty standard for

506
00:30:19,960 --> 00:30:23,080
Speaker 1: printers of the day, and it cost a hefty amount

507
00:30:23,720 --> 00:30:29,000
Speaker 1: seven thousand dollars. And let's adjust for inflation because I

508
00:30:29,080 --> 00:30:33,040
Speaker 1: like to do that. That's about sixteen grand in today's dollars,

509
00:30:33,080 --> 00:30:37,760
Speaker 1: sixteen thousand dollars for a printer. But you could network

510
00:30:38,160 --> 00:30:42,120
Speaker 1: multiple Macintosh computers to this one printer, so that increased

511
00:30:42,120 --> 00:30:44,200
Speaker 1: its value. You didn't have to buy a printer for

512
00:30:44,280 --> 00:30:48,360
Speaker 1: every computer. If you had several computer workstations at your office,

513
00:30:48,680 --> 00:30:52,040
Speaker 1: you could network them together to this printer and they

514
00:30:52,040 --> 00:30:54,280
Speaker 1: could all print from the same printer. That was a

515
00:30:54,280 --> 00:30:58,640
Speaker 1: pretty big deal, very novel concept when it came to

516
00:30:58,680 --> 00:31:02,000
Speaker 1: this level of computer enterprise. Normally, you'd be paying a

517
00:31:02,040 --> 00:31:05,840
Speaker 1: lot more money for a networked system that was created

518
00:31:06,360 --> 00:31:10,320
Speaker 1: pretty much by contract for your company. So it meant

519
00:31:10,360 --> 00:31:15,080
Speaker 1: that Apple could actually compete in that space, and they

520
00:31:15,080 --> 00:31:18,760
Speaker 1: could also print in different fonts. The earliest laser writer

521
00:31:18,920 --> 00:31:21,760
Speaker 1: only a few different fonts, but that was still a

522
00:31:21,840 --> 00:31:25,680
Speaker 1: huge advantage over older printers, remember like daisy wheel printers.

523
00:31:25,840 --> 00:31:28,880
Speaker 1: Actually you may not remember daisy will printers. I do

524
00:31:29,000 --> 00:31:32,160
Speaker 1: because I grew up with them. Those had a physical

525
00:31:32,240 --> 00:31:35,560
Speaker 1: font on the device itself, so you couldn't really change it,

526
00:31:36,240 --> 00:31:40,760
Speaker 1: but the laser writer could reproduce a few different fonts,

527
00:31:40,840 --> 00:31:43,320
Speaker 1: giving you some options. And later versions of the laser

528
00:31:43,360 --> 00:31:47,360
Speaker 1: writer and later versions of the operating system and the

529
00:31:47,360 --> 00:31:51,960
Speaker 1: accompanying software would allow even more fonts, so that made

530
00:31:52,000 --> 00:31:55,880
Speaker 1: desktop publishing even more attractive. So this combination of software

531
00:31:55,880 --> 00:32:00,640
Speaker 1: and hardware suddenly made the Macintosh a more attractive device

532
00:32:00,800 --> 00:32:03,760
Speaker 1: if you wanted to go into publishing. And this really

533
00:32:03,800 --> 00:32:10,080
Speaker 1: begins the relationship Apple has with creators, people who are

534
00:32:10,080 --> 00:32:16,800
Speaker 1: into graphics, eventually into film and audio. Apple kind of

535
00:32:16,920 --> 00:32:22,000
Speaker 1: established that relationship with people at this stage, this early stage,

536
00:32:22,000 --> 00:32:23,040
Speaker 1: with the fat Mac.

537
00:32:23,800 --> 00:32:26,760
Speaker 2: It meant that you were catering.

538
00:32:26,360 --> 00:32:32,080
Speaker 1: To people who didn't really feel comfortable with the IBM

539
00:32:32,120 --> 00:32:36,040
Speaker 1: compatible approach to computing. They found it more intuitive to

540
00:32:36,040 --> 00:32:39,720
Speaker 1: go to the Mac system and that would remain true

541
00:32:39,800 --> 00:32:44,120
Speaker 1: for decades. In fact, for a long long time, Apple

542
00:32:44,240 --> 00:32:49,160
Speaker 1: dominated when it came to production, particularly video and audio production.

543
00:32:49,280 --> 00:32:52,040
Speaker 2: Here at how Stuff Works, our video.

544
00:32:51,760 --> 00:32:57,720
Speaker 1: Department works almost exclusively on Macintosh computers. So even though

545
00:32:58,040 --> 00:33:01,080
Speaker 1: I would argue PCs have caught up in a large

546
00:33:01,080 --> 00:33:03,680
Speaker 1: part and software for the PCs have cut up in

547
00:33:03,760 --> 00:33:08,840
Speaker 1: large part to Apple's dominant place in that market, there's

548
00:33:08,880 --> 00:33:13,000
Speaker 1: still people who prefer the Apple approach, and to be honest,

549
00:33:13,000 --> 00:33:16,400
Speaker 1: depending upon what format you're working in, Apple still.

550
00:33:16,200 --> 00:33:18,840
Speaker 2: Does it better than PCs do.

551
00:33:20,000 --> 00:33:22,960
Speaker 1: All of that began way back in nineteen eighty five,

552
00:33:23,400 --> 00:33:26,480
Speaker 1: with the Fat Mac and the launch of the Laser Writer,

553
00:33:27,000 --> 00:33:29,960
Speaker 1: and the launch of these software programs I've been talking about.

554
00:33:30,680 --> 00:33:32,320
Speaker 2: On the corporate side.

555
00:33:32,200 --> 00:33:35,160
Speaker 1: Nineteen eighty five was when Apple said goodbye to the

556
00:33:35,160 --> 00:33:40,320
Speaker 1: co founders, but under very different circumstances. Steve Wozniak, who

557
00:33:40,360 --> 00:33:43,840
Speaker 1: had mostly been away from Apple ever since he had

558
00:33:44,000 --> 00:33:47,760
Speaker 1: suffered injuries in an airplane crash and had been working

559
00:33:47,840 --> 00:33:51,200
Speaker 1: hard to recover from them. He left on his own

560
00:33:51,240 --> 00:33:54,320
Speaker 1: accord in February nineteen eighty five, and he went back

561
00:33:54,360 --> 00:33:57,960
Speaker 1: to college. Eventually he went into teaching and then began

562
00:33:58,000 --> 00:34:01,720
Speaker 1: to do other stuff as well. Steve Jobs, however, didn't

563
00:34:01,720 --> 00:34:04,080
Speaker 1: really have a choice in the matter, not really when

564
00:34:04,080 --> 00:34:08,800
Speaker 1: you get down to it. After numerous teams reported being

565
00:34:08,920 --> 00:34:15,960
Speaker 1: incredibly frustrated with Steve Jobs' managerial style, the executives of

566
00:34:16,000 --> 00:34:20,760
Speaker 1: the company, primarily CEO John Scully, decided to effectively strip

567
00:34:20,800 --> 00:34:24,080
Speaker 1: Steve Jobs of all of his power. They removed him

568
00:34:24,080 --> 00:34:27,000
Speaker 1: from all the projects. They put him in an office

569
00:34:27,080 --> 00:34:31,320
Speaker 1: in a building that was mostly deserted. Steve Jobs himself

570
00:34:31,320 --> 00:34:35,200
Speaker 1: referred to it as Siberia and of course Steve Jobs

571
00:34:35,239 --> 00:34:38,680
Speaker 1: is not one known for making melodramatic statements like that,

572
00:34:39,040 --> 00:34:41,719
Speaker 1: so you know it had to be awful. But the

573
00:34:41,760 --> 00:34:44,000
Speaker 1: point being the Steve Jobs had really very little to

574
00:34:44,000 --> 00:34:47,400
Speaker 1: do with the company that he had helped create. He

575
00:34:47,440 --> 00:34:50,520
Speaker 1: had been pulled away from it and removed more or

576
00:34:50,600 --> 00:34:54,680
Speaker 1: less from power. Not everyone was upset about that, because

577
00:34:54,719 --> 00:34:57,280
Speaker 1: so many people had had issues with his management style,

578
00:34:58,000 --> 00:35:02,280
Speaker 1: but it still was a difficult story, right to say,

579
00:35:02,719 --> 00:35:06,960
Speaker 1: we've decided this founder of our company shouldn't be involved

580
00:35:06,960 --> 00:35:12,160
Speaker 1: in any of the company's projects, but was still effectively

581
00:35:12,200 --> 00:35:14,600
Speaker 1: an employee of the company. He was still drawing a

582
00:35:14,640 --> 00:35:17,560
Speaker 1: salary at that point. But Jobs decided he didn't want

583
00:35:17,600 --> 00:35:21,000
Speaker 1: to just sit at a desk in an empty building

584
00:35:21,600 --> 00:35:24,960
Speaker 1: and pull a salary from a company. He wanted to

585
00:35:24,960 --> 00:35:29,480
Speaker 1: see if he could perhaps regain control of Apple, and

586
00:35:29,560 --> 00:35:31,600
Speaker 1: so he went to some of the executives of Apple

587
00:35:31,640 --> 00:35:33,200
Speaker 1: to see if any of them would support him and

588
00:35:33,200 --> 00:35:36,120
Speaker 1: what would effectively be a coup to go to the

589
00:35:36,120 --> 00:35:39,200
Speaker 1: board of directors demand that John Scully be removed as

590
00:35:39,239 --> 00:35:44,080
Speaker 1: CEO and perhaps Steve Jobs would take his place. But

591
00:35:44,200 --> 00:35:47,440
Speaker 1: one of the executives he went to felt very strongly

592
00:35:47,640 --> 00:35:51,520
Speaker 1: that this was the bad decision. That person was Jean

593
00:35:51,640 --> 00:35:57,880
Speaker 1: Louis Gaess. Now, Jean Louis Gassy was someone who had

594
00:35:58,200 --> 00:36:00,600
Speaker 1: risen up in the Apple ranks. He was a manager

595
00:36:01,680 --> 00:36:04,880
Speaker 1: in their various product division lines, and he did not

596
00:36:05,239 --> 00:36:09,239
Speaker 1: like Jobs. Jobs and guess did not get along. So

597
00:36:09,560 --> 00:36:13,399
Speaker 1: Guessay ended up going over to John Scully and tattletaled

598
00:36:13,840 --> 00:36:16,960
Speaker 1: on Steve Jobs. He essentially told John Scully, who was

599
00:36:17,440 --> 00:36:19,920
Speaker 1: off on a business trip, Hey, you should know this.

600
00:36:20,400 --> 00:36:24,240
Speaker 1: Steve is going around stirring up trouble and he wants

601
00:36:24,320 --> 00:36:27,520
Speaker 1: to try and go to the Board of directors and

602
00:36:27,560 --> 00:36:31,560
Speaker 1: go over your head and replace you. John Scully rushed

603
00:36:31,600 --> 00:36:34,879
Speaker 1: back to Apple. He called a meeting of the Board

604
00:36:34,880 --> 00:36:38,480
Speaker 1: of directors. He was furious with Steve Jobs for what

605
00:36:38,640 --> 00:36:43,920
Speaker 1: he saw as an act of disloyalty and dishonesty, and

606
00:36:44,120 --> 00:36:47,319
Speaker 1: so they had it out in front of the Board

607
00:36:47,320 --> 00:36:51,680
Speaker 1: of Directors. It was, by all accounts, an ugly confrontation,

608
00:36:52,560 --> 00:36:56,200
Speaker 1: and ultimately John Scully was asking the Board of directors

609
00:36:56,200 --> 00:36:59,239
Speaker 1: for essentially a vote of confidence and to say, you

610
00:36:59,280 --> 00:37:01,480
Speaker 1: know who would they go. Would they side with Jobs

611
00:37:01,560 --> 00:37:07,920
Speaker 1: or would they side with Scully? And then the board

612
00:37:08,080 --> 00:37:13,360
Speaker 1: sided unanimously with John Scully. Every member of the board,

613
00:37:13,400 --> 00:37:18,040
Speaker 1: including the people I've already mentioned in this episode, were

614
00:37:18,080 --> 00:37:22,040
Speaker 1: on John Scully's side, and they effectively pushed Steve Jobs

615
00:37:22,040 --> 00:37:27,959
Speaker 1: out of his company. Obviously, the story with Steve Jobs

616
00:37:28,000 --> 00:37:32,960
Speaker 1: and Apple doesn't end here in nineteen eighty five. Will

617
00:37:33,080 --> 00:37:36,120
Speaker 1: actually revisit Steve Jobs later on in this episode, but

618
00:37:36,160 --> 00:37:39,680
Speaker 1: we've also covered this story in other episodes of Tech Stuff.

619
00:37:39,719 --> 00:37:42,800
Speaker 1: So if you want to hear a really deep discussion

620
00:37:42,800 --> 00:37:46,120
Speaker 1: about what Steve Jobs did in his years away from Apple,

621
00:37:46,560 --> 00:37:48,520
Speaker 1: there are a couple of different places you can check out,

622
00:37:48,600 --> 00:37:50,399
Speaker 1: or a couple different episodes you can check out. There's

623
00:37:50,440 --> 00:37:54,399
Speaker 1: a two parter called How Bill Gates and Steve Jobs Work.

624
00:37:54,880 --> 00:37:57,279
Speaker 1: They published in two thousand and eight, so they were

625
00:37:57,360 --> 00:38:01,000
Speaker 1: very early episodes of Tech Stuff Tech Stuff in two

626
00:38:01,000 --> 00:38:03,600
Speaker 1: thousand and eight, so Chris Pollette and I talked about

627
00:38:03,600 --> 00:38:05,759
Speaker 1: Bill Gates and Steve Jobs, who had a lot of

628
00:38:06,200 --> 00:38:08,800
Speaker 1: not just similarities, but a lot of they worked a

629
00:38:08,840 --> 00:38:12,120
Speaker 1: lot together in those early days of Apple and Microsoft.

630
00:38:13,280 --> 00:38:14,640
Speaker 2: So you can check out that two parter.

631
00:38:15,200 --> 00:38:18,080
Speaker 1: And there's also a very sad episode titled One More

632
00:38:18,239 --> 00:38:22,080
Speaker 1: Thing and that published in twenty eleven. Shortly after Steve

633
00:38:22,160 --> 00:38:25,759
Speaker 1: Jobs passed away, and in those episodes, I really talk

634
00:38:25,840 --> 00:38:27,200
Speaker 1: about what Steve Jobs.

635
00:38:26,920 --> 00:38:29,120
Speaker 2: Did in his years away from Apple.

636
00:38:29,239 --> 00:38:31,160
Speaker 1: So I'm not going to cover it here, but we

637
00:38:31,200 --> 00:38:34,680
Speaker 1: will revisit Steve Jobs because he does factor back into

638
00:38:34,719 --> 00:38:37,840
Speaker 1: Apple's history a bit later on. If you want to

639
00:38:37,880 --> 00:38:41,200
Speaker 1: know more, check out those episodes I just mentioned. Now,

640
00:38:41,320 --> 00:38:45,960
Speaker 1: Jobs would end up publishing letters of resignation. He sent

641
00:38:46,480 --> 00:38:49,920
Speaker 1: letters of resignation to the press after he had effectively

642
00:38:49,920 --> 00:38:52,879
Speaker 1: been forced out of his own company, so it's more

643
00:38:52,960 --> 00:38:56,600
Speaker 1: like you can't fire me, I quit sort of thing.

644
00:38:57,600 --> 00:38:59,840
Speaker 1: Presumably he did this in order to get the media

645
00:39:00,080 --> 00:39:03,200
Speaker 1: on his side, but it did not have the effect

646
00:39:03,360 --> 00:39:07,480
Speaker 1: that he was hoping for. In fact, Apple stocks rallied

647
00:39:08,320 --> 00:39:11,560
Speaker 1: as a result of Steve Jobs being pushed aside and

648
00:39:11,600 --> 00:39:16,360
Speaker 1: sending out these resignation letters. Effectively, the market was saying, whew,

649
00:39:17,000 --> 00:39:18,680
Speaker 1: we sure are glad you got rid of that guy.

650
00:39:19,880 --> 00:39:23,000
Speaker 1: Not a great message to receive, not this big blow

651
00:39:23,080 --> 00:39:26,840
Speaker 1: to the ego, I'm sure, but it gave Scully more

652
00:39:28,280 --> 00:39:32,920
Speaker 1: confidence in his decisions, which would emerge in physical form

653
00:39:32,960 --> 00:39:36,719
Speaker 1: with the evolution of the Macintosh line. Now, one of

654
00:39:36,880 --> 00:39:40,719
Speaker 1: the CEO's first acts once he had been confirmed as

655
00:39:40,760 --> 00:39:43,920
Speaker 1: being the head of Apple, was to lead a massive

656
00:39:43,960 --> 00:39:46,879
Speaker 1: reorganization at the company, and a lot of people say

657
00:39:46,880 --> 00:39:50,200
Speaker 1: it was long overdue. So again, up to that point,

658
00:39:50,320 --> 00:39:53,880
Speaker 1: Apple's org charts were based on products. If you worked

659
00:39:53,880 --> 00:39:56,160
Speaker 1: in the Apple two line, you were in one division.

660
00:39:56,200 --> 00:39:57,759
Speaker 1: If you worked on the Apple three line, you were

661
00:39:57,760 --> 00:40:00,080
Speaker 1: in another division. If you worked on the Macintosh you

662
00:40:00,120 --> 00:40:02,600
Speaker 1: were in yet another division, and so on and so forth.

663
00:40:03,320 --> 00:40:05,920
Speaker 1: Each department was separate from all the others.

664
00:40:05,960 --> 00:40:08,280
Speaker 2: And John Scully said, this doesn't make any sense.

665
00:40:08,640 --> 00:40:12,040
Speaker 1: What we should do is have a big product development

666
00:40:12,120 --> 00:40:15,400
Speaker 1: department and everyone who works on various products will be

667
00:40:16,040 --> 00:40:22,040
Speaker 1: inside this structured department with a manager overseeing that product

668
00:40:22,280 --> 00:40:24,040
Speaker 1: or product development overall.

669
00:40:24,520 --> 00:40:27,720
Speaker 2: So everyone would have a single boss.

670
00:40:27,840 --> 00:40:30,520
Speaker 1: They would report to, who in turn would report to

671
00:40:30,600 --> 00:40:33,319
Speaker 1: John Scully as CEO. Then you would also have a

672
00:40:33,360 --> 00:40:36,360
Speaker 1: department just for sales. You would have a department just

673
00:40:36,400 --> 00:40:39,759
Speaker 1: for marketing, and these departments would work together, but they

674
00:40:39,760 --> 00:40:43,440
Speaker 1: wouldn't be dependent upon individual products. It would largely be

675
00:40:43,640 --> 00:40:49,160
Speaker 1: these big divisions within Apple. So essentially he was saying,

676
00:40:49,320 --> 00:40:53,400
Speaker 1: let's go to your traditional corporate structure. It wasn't like

677
00:40:53,440 --> 00:40:55,840
Speaker 1: he was inventing a new type of leadership. This is

678
00:40:55,880 --> 00:40:59,319
Speaker 1: something that's common across corporations all over the world.

679
00:41:00,160 --> 00:41:02,239
Speaker 2: So he was just saying, let's.

680
00:41:02,120 --> 00:41:05,120
Speaker 1: Go to that because it makes more sense. It streamlines things,

681
00:41:05,400 --> 00:41:10,640
Speaker 1: people know who they report to. There's not this compartmentalized

682
00:41:12,320 --> 00:41:15,799
Speaker 1: structure between different products. People can actually communicate with each other.

683
00:41:16,160 --> 00:41:19,000
Speaker 1: We can make sure that people working on one product

684
00:41:19,280 --> 00:41:21,440
Speaker 1: are not stepping on the toes of people who were

685
00:41:21,440 --> 00:41:23,879
Speaker 1: working on another product. Everyone can talk to each other,

686
00:41:25,080 --> 00:41:28,399
Speaker 1: and then ended up being viewed as a positive move

687
00:41:28,680 --> 00:41:31,400
Speaker 1: in the market. Again, people thought this guy knows what

688
00:41:31,440 --> 00:41:35,480
Speaker 1: he's doing, and they felt confident in Apple's performance because

689
00:41:35,520 --> 00:41:41,120
Speaker 1: of this restructuring, Apple stocks would end up performing really

690
00:41:41,160 --> 00:41:44,880
Speaker 1: well over the next few years. Meanwhile, Jean Luis Gesay

691
00:41:45,360 --> 00:41:48,760
Speaker 1: that manager I was talking about who tattletaled on, Steve Jobs,

692
00:41:49,040 --> 00:41:51,080
Speaker 1: became the manager for the product's division.

693
00:41:51,120 --> 00:41:52,200
Speaker 2: Effectively, he took.

694
00:41:52,120 --> 00:41:56,239
Speaker 1: Over the position that Steve Jobs was inhabiting before he

695
00:41:56,360 --> 00:42:00,359
Speaker 1: was stripped of all of his responsibilities. So Guess became

696
00:42:00,400 --> 00:42:02,960
Speaker 1: the manager for product division and decided to make a

697
00:42:03,000 --> 00:42:05,400
Speaker 1: major change to the Macintosh line.

698
00:42:05,840 --> 00:42:07,239
Speaker 2: So remember that last.

699
00:42:06,960 --> 00:42:10,360
Speaker 1: Mac was the Fat Mac or the Mac five twelve.

700
00:42:10,960 --> 00:42:15,239
Speaker 1: The next computer in that line was the Mac Plus. Now,

701
00:42:15,280 --> 00:42:18,320
Speaker 1: Apple introduced this in nineteen eighty six, and it looked

702
00:42:18,480 --> 00:42:21,359
Speaker 1: identical to the Fat Mac. If you were to put

703
00:42:21,360 --> 00:42:23,279
Speaker 1: two side by side, you probably wouldn't be able to

704
00:42:23,320 --> 00:42:26,040
Speaker 1: immediately tell them apart unless you could actually read the

705
00:42:26,080 --> 00:42:31,080
Speaker 1: designation on the case. But inside it was actually quite

706
00:42:31,120 --> 00:42:35,080
Speaker 1: different from the fat Fat Mac. So, for one thing,

707
00:42:36,000 --> 00:42:38,960
Speaker 1: the Fat Mac was not meant to be expandable. Steve

708
00:42:39,040 --> 00:42:42,760
Speaker 1: Jobs hated the idea of users being able to alter

709
00:42:43,080 --> 00:42:47,759
Speaker 1: the computers that Apple designed. He wanted to have closed systems,

710
00:42:48,239 --> 00:42:51,960
Speaker 1: meaning that you bought a computer, that's the computer you

711
00:42:52,040 --> 00:42:52,640
Speaker 1: got to use.

712
00:42:52,960 --> 00:42:54,799
Speaker 2: You didn't get to expand it in.

713
00:42:54,719 --> 00:42:57,880
Speaker 1: Any way unless you were to go to a third party,

714
00:42:57,920 --> 00:43:03,360
Speaker 1: and that would violate your warranty. The Macplus was different,

715
00:43:03,360 --> 00:43:07,400
Speaker 1: and it was actually expandable. You could upgrade your machine

716
00:43:07,400 --> 00:43:09,600
Speaker 1: if you wanted to. It was the first Macintosh to

717
00:43:09,760 --> 00:43:13,840
Speaker 1: feature a small computer system interface, also known as a

718
00:43:13,920 --> 00:43:19,000
Speaker 1: scuzzy drive SCSI. But people call it scuzzy, not that

719
00:43:19,080 --> 00:43:23,480
Speaker 1: it was scuzzy, it's just how we pronounce it. It's

720
00:43:23,520 --> 00:43:27,000
Speaker 1: actually a set of parallel interface standards that allow you

721
00:43:27,040 --> 00:43:30,920
Speaker 1: to connect other devices to a computer. So a scanner

722
00:43:31,400 --> 00:43:34,839
Speaker 1: an external hard drive printer's that sort of thing.

723
00:43:35,160 --> 00:43:36,920
Speaker 2: It's just meant to be kind of a.

724
00:43:36,920 --> 00:43:43,920
Speaker 1: Universal plug for certain types of computer peripherals. I talked

725
00:43:43,920 --> 00:43:46,200
Speaker 1: a little bit about it in a recent episode about

726
00:43:46,280 --> 00:43:50,800
Speaker 1: USB's when I was comparing USBs to serial and parallel ports. Anyway,

727
00:43:52,200 --> 00:43:55,279
Speaker 1: the scuzzy would remain a feature in every Mac that

728
00:43:55,320 --> 00:44:01,319
Speaker 1: would follow from that point until nineteen ninety eight. You

729
00:44:01,320 --> 00:44:06,000
Speaker 1: could also upgrade the memory of the Macplus. The Macplus

730
00:44:06,000 --> 00:44:09,160
Speaker 1: would come with a whole megabyte of memory. Remember, the

731
00:44:09,200 --> 00:44:12,440
Speaker 1: previous fat Mac had five or twelve kilobytes. Megabyte was

732
00:44:12,480 --> 00:44:15,440
Speaker 1: another big jump up, but you could expand that to

733
00:44:15,640 --> 00:44:19,840
Speaker 1: up to four megabytes using a thirty pen memory module

734
00:44:20,239 --> 00:44:25,879
Speaker 1: that was easily pluggable into the Macintosh system. You didn't

735
00:44:25,960 --> 00:44:28,600
Speaker 1: have to do any crazy soldering or anything like that.

736
00:44:28,760 --> 00:44:32,640
Speaker 1: It had an expansion slot you could plug these chips into.

737
00:44:32,800 --> 00:44:35,640
Speaker 1: Previous Apple devices didn't allow you to upgrade your memory,

738
00:44:35,680 --> 00:44:37,719
Speaker 1: so what you bought was what you got, unless you

739
00:44:38,000 --> 00:44:41,200
Speaker 1: again went to a third party and had it professionally altered.

740
00:44:42,760 --> 00:44:46,400
Speaker 1: So this was a huge departure from Steve Jobs's philosophy.

741
00:44:46,920 --> 00:44:51,800
Speaker 1: Guessay's approach was almost one hundred eighty degrees different from jobs,

742
00:44:51,800 --> 00:44:54,960
Speaker 1: and would continue to be different from jobs over the

743
00:44:55,040 --> 00:44:58,600
Speaker 1: next few years. The Macplus also included a keyboard with

744
00:44:58,640 --> 00:45:01,120
Speaker 1: some features that we now consider to be pretty much

745
00:45:01,239 --> 00:45:06,360
Speaker 1: standard for keyboards, like arrow keys and a number pad. Obviously,

746
00:45:06,400 --> 00:45:08,920
Speaker 1: not all keyboards have those, especially for things like laptops.

747
00:45:08,960 --> 00:45:11,040
Speaker 1: You might not have a number pad on all laptops,

748
00:45:11,400 --> 00:45:16,080
Speaker 1: but for your standard PC keyboards, the kinds for desktops,

749
00:45:16,800 --> 00:45:19,640
Speaker 1: you pretty much find arrow keys and number pads on

750
00:45:19,680 --> 00:45:24,200
Speaker 1: most of those these days. But this was novel thinking

751
00:45:24,360 --> 00:45:26,600
Speaker 1: back in nineteen eighty six, so it was something that

752
00:45:26,640 --> 00:45:29,680
Speaker 1: differentiated the Mac Plus from other computers on the market.

753
00:45:29,960 --> 00:45:33,320
Speaker 1: And it also ran the third generation of Max operating system,

754
00:45:33,360 --> 00:45:37,720
Speaker 1: which was then called System three. This was before Apple

755
00:45:37,800 --> 00:45:41,759
Speaker 1: started calling the operating system mac os, they just called

756
00:45:41,800 --> 00:45:45,560
Speaker 1: it System and you could use double sided floppy discs

757
00:45:45,719 --> 00:45:48,160
Speaker 1: with this device, which allowed you to store a wopping

758
00:45:48,239 --> 00:45:53,400
Speaker 1: eight hundred kilobytes of data per disc. I remember those days,

759
00:45:54,480 --> 00:45:56,520
Speaker 1: but anyway, that was a big thing back then. Having

760
00:45:56,520 --> 00:46:00,000
Speaker 1: a double sided disc effectively doubling the amount of information

761
00:46:00,120 --> 00:46:01,359
Speaker 1: you could save on a disc.

762
00:46:01,840 --> 00:46:03,600
Speaker 2: That was a huge space saver.

763
00:46:03,840 --> 00:46:06,359
Speaker 1: Otherwise you had to have twice as many of those

764
00:46:06,680 --> 00:46:11,120
Speaker 1: stupid discs, and that was a pain in the butt. Later,

765
00:46:11,200 --> 00:46:15,080
Speaker 1: in nineteen eighty six, Apple discontinued the Fat Mac and

766
00:46:15,200 --> 00:46:18,800
Speaker 1: replaced it with the five twelve K, which was similar

767
00:46:18,800 --> 00:46:21,560
Speaker 1: to the Mac Plus. So you had the Macplus, which

768
00:46:21,600 --> 00:46:24,319
Speaker 1: was sort of the high end machine, and then they said, well,

769
00:46:24,320 --> 00:46:26,560
Speaker 1: the Fat Mac doesn't really measure up to the Macplus.

770
00:46:26,600 --> 00:46:29,080
Speaker 1: We'll make a new version of the Fat Mac called

771
00:46:29,160 --> 00:46:32,839
Speaker 1: Mac five twelve K. It did not have some of

772
00:46:32,880 --> 00:46:35,440
Speaker 1: the elements that the Macplus had. It didn't have the

773
00:46:35,440 --> 00:46:40,160
Speaker 1: scuzy port, and it didn't have the expandable memory capability.

774
00:46:40,200 --> 00:46:44,799
Speaker 1: It had those older traditional Apple style memory chips, and

775
00:46:44,880 --> 00:46:47,680
Speaker 1: as you might imagine, that didn't measure up well with

776
00:46:47,719 --> 00:46:51,000
Speaker 1: the Macplus in the market. So you had consumers or

777
00:46:51,040 --> 00:46:55,840
Speaker 1: small businesses mainly and larger looking at the Macplus versus

778
00:46:55,920 --> 00:46:58,399
Speaker 1: the Mac five twelve k E and they said, why

779
00:46:58,400 --> 00:47:00,279
Speaker 1: would I go with the five twelve K E which

780
00:47:00,320 --> 00:47:03,799
Speaker 1: has fewer features than the Macplus. So ultimately the five

781
00:47:03,920 --> 00:47:08,000
Speaker 1: twelve KE did not sell very well. The Macplus, however,

782
00:47:08,400 --> 00:47:12,479
Speaker 1: was a very popular product within the Apple line, in fact,

783
00:47:12,520 --> 00:47:16,800
Speaker 1: so much so that it would become the longest lived

784
00:47:17,000 --> 00:47:20,359
Speaker 1: computer in the Macintosh line, meaning it was the one

785
00:47:20,400 --> 00:47:26,040
Speaker 1: that Apple produced the longest amount of time, from nineteen

786
00:47:26,080 --> 00:47:29,920
Speaker 1: eighty six to nineteen ninety, so four years of producing

787
00:47:29,960 --> 00:47:32,520
Speaker 1: the same computer. That's a long time in computer terms,

788
00:47:32,520 --> 00:47:37,280
Speaker 1: because parts become obsolete so quickly, right processors get faster,

789
00:47:37,640 --> 00:47:40,440
Speaker 1: we can put more memory into these machines, but the

790
00:47:40,480 --> 00:47:45,640
Speaker 1: Macplus would stay on store shelves largely unchanged from nineteen

791
00:47:45,680 --> 00:47:50,279
Speaker 1: eighty six to nineteen ninety. Now at this stage, I

792
00:47:50,280 --> 00:47:52,960
Speaker 1: should mention that I'm not going to cover every single

793
00:47:53,800 --> 00:47:56,719
Speaker 1: variation of the Macintosh in this episode.

794
00:47:56,760 --> 00:47:58,600
Speaker 2: I know it sounds like it because.

795
00:47:58,320 --> 00:48:02,000
Speaker 1: I've started with the big one so early on, but

796
00:48:02,080 --> 00:48:03,399
Speaker 1: that would just be ridiculous.

797
00:48:03,560 --> 00:48:05,680
Speaker 2: If I were to do that, it would eventually just.

798
00:48:05,719 --> 00:48:09,680
Speaker 1: Lead to me reading off specs for different computers, and

799
00:48:09,680 --> 00:48:13,640
Speaker 1: that would get incredibly boring incredibly fast. I do want

800
00:48:13,680 --> 00:48:16,800
Speaker 1: to cover some of the big changes that happened throughout

801
00:48:17,000 --> 00:48:20,399
Speaker 1: Apple's history and the history of the Macintosh, but I'm

802
00:48:20,400 --> 00:48:25,120
Speaker 1: not going to cover every variation of every entry into

803
00:48:25,120 --> 00:48:29,120
Speaker 1: the Macintosh line. There are lots of them, so many

804
00:48:29,160 --> 00:48:31,000
Speaker 1: that it actually became a problem for Apple.

805
00:48:31,040 --> 00:48:32,520
Speaker 2: But I'll go into that in a little bit.

806
00:48:33,600 --> 00:48:35,680
Speaker 1: I'm just going to try and get a deeper understanding

807
00:48:35,719 --> 00:48:37,719
Speaker 1: of not just the growth of the personal computer market,

808
00:48:37,800 --> 00:48:40,560
Speaker 1: but the evolution of Apple as a company. So that

809
00:48:40,600 --> 00:48:44,440
Speaker 1: being said, nineteen eighty seven saw some milestones in Apple history.

810
00:48:44,520 --> 00:48:48,799
Speaker 1: For one thing, Apple built the one millionth Macintosh in

811
00:48:48,880 --> 00:48:51,880
Speaker 1: nineteen eighty seven. Now that was a bit behind schedule,

812
00:48:51,920 --> 00:48:54,839
Speaker 1: because you remember, way back in nineteen eighty one, they

813
00:48:54,840 --> 00:48:58,000
Speaker 1: were hoping to sell two point two million Macintosh computers

814
00:48:58,120 --> 00:49:00,600
Speaker 1: by the end of nineteen eighty five. It is nineteen

815
00:49:00,600 --> 00:49:04,240
Speaker 1: eighty seven, and they've just built the one millionth Macintosh,

816
00:49:04,560 --> 00:49:07,080
Speaker 1: so they're well behind what they were hoping for back

817
00:49:07,120 --> 00:49:10,560
Speaker 1: in nineteen eighty one. However, that being said, this was

818
00:49:10,560 --> 00:49:14,200
Speaker 1: a totally different world nineteen eighty seven. You saw massive

819
00:49:14,239 --> 00:49:17,839
Speaker 1: competition in the market. Not only did IBM have its

820
00:49:17,920 --> 00:49:20,000
Speaker 1: own personal computers out there, but you had all the

821
00:49:20,080 --> 00:49:25,480
Speaker 1: clones of IBM computers, the IBM compatible computers, because IBM

822
00:49:25,600 --> 00:49:29,080
Speaker 1: licensed that technology to other companies. So there was a

823
00:49:29,080 --> 00:49:31,759
Speaker 1: lot of competition in the space. So hitting that one

824
00:49:31,800 --> 00:49:35,279
Speaker 1: million mark was still impressive, even though it was much

825
00:49:35,400 --> 00:49:41,080
Speaker 1: later than what they had hoped for, and it was significant.

826
00:49:41,320 --> 00:49:45,320
Speaker 1: So that year Apple introduced new computers in the Macintosh line.

827
00:49:45,680 --> 00:49:48,319
Speaker 1: In nineteen eighty seven, they launched the Mac se and

828
00:49:48,360 --> 00:49:53,200
Speaker 1: the Mac two. As in the Part two son of Mac,

829
00:49:53,920 --> 00:49:55,880
Speaker 1: it was the Roman numeral two as well, kind of

830
00:49:55,880 --> 00:49:58,839
Speaker 1: similar to how they did Apple one, Apple two, Apple three.

831
00:50:00,080 --> 00:50:03,240
Speaker 1: We start seeing the Macintosh regularly shortened to just Mac.

832
00:50:03,719 --> 00:50:06,920
Speaker 1: At this point, very few people started referring to them

833
00:50:06,920 --> 00:50:08,160
Speaker 1: as Macintosh computers.

834
00:50:08,200 --> 00:50:09,600
Speaker 2: They just called a max really.

835
00:50:09,680 --> 00:50:13,799
Speaker 1: After the first Macintosh, that became pretty standard, and the

836
00:50:13,840 --> 00:50:16,960
Speaker 1: Mac two marked another big departure from the original Macintosh

837
00:50:16,960 --> 00:50:20,480
Speaker 1: design jobs and wanted the mac to be that closed system.

838
00:50:20,520 --> 00:50:25,040
Speaker 1: Like I mentioned, the Mac two had six expansion slots

839
00:50:25,080 --> 00:50:28,400
Speaker 1: that could support all sorts of stuff, including different types

840
00:50:28,440 --> 00:50:31,440
Speaker 1: of video cards, which was a huge departure for Apple,

841
00:50:31,880 --> 00:50:35,279
Speaker 1: plus different types of network cards, scuzzy drives, that sort

842
00:50:35,320 --> 00:50:40,440
Speaker 1: of stuff. It could also display color the video cards.

843
00:50:40,640 --> 00:50:42,560
Speaker 1: If you had the right video card in the right monitor,

844
00:50:42,600 --> 00:50:44,640
Speaker 1: you could have a color display, which was a first

845
00:50:44,640 --> 00:50:48,080
Speaker 1: for Macintosh computers, and it pushed the Macintosh from the

846
00:50:48,400 --> 00:50:52,080
Speaker 1: monochromatic world to the world of glorious color, with up

847
00:50:52,160 --> 00:50:56,160
Speaker 1: to sixteen million different colors that could be displayed, which

848
00:50:56,200 --> 00:51:00,719
Speaker 1: was actually pretty impressive back in the mid eighties. Later on,

849
00:51:00,920 --> 00:51:03,640
Speaker 1: that would be dwarfed by what you could achieve with

850
00:51:04,400 --> 00:51:08,799
Speaker 1: high end video cards and monitors. In nineteen eighty eight,

851
00:51:08,960 --> 00:51:12,520
Speaker 1: Apple's Macintosh line continued to evolve, but there weren't really

852
00:51:12,560 --> 00:51:16,080
Speaker 1: any major developments like the ones I just mentioned. Instead,

853
00:51:16,280 --> 00:51:19,840
Speaker 1: it was mostly revisions and evolutions of the line, but

854
00:51:19,920 --> 00:51:24,560
Speaker 1: not revolutions on the software side. The operating system grew,

855
00:51:24,680 --> 00:51:27,080
Speaker 1: with System six coming out toward the end of nineteen

856
00:51:27,120 --> 00:51:30,240
Speaker 1: eighty eight, but apart from the first Apple CD ROM

857
00:51:30,360 --> 00:51:34,279
Speaker 1: drive launching, nothing huge really happened in the macline in

858
00:51:34,360 --> 00:51:36,319
Speaker 1: eighty eight, and the same is true for eighty nine,

859
00:51:36,440 --> 00:51:39,200
Speaker 1: with one major exception. That was the year that Apple

860
00:51:39,239 --> 00:51:44,120
Speaker 1: introduced the mac Portable. So this wasn't really a laptop computer.

861
00:51:44,600 --> 00:51:46,799
Speaker 1: I mean, you could call it a laptop computer, but

862
00:51:46,840 --> 00:51:51,000
Speaker 1: really it was more of a portable Macintosh computer. In

863
00:51:51,120 --> 00:51:54,080
Speaker 1: theory you could call it laptop, but only in theory

864
00:51:54,200 --> 00:51:57,760
Speaker 1: because the thing weighed nearly sixteen pounds or about seven

865
00:51:57,840 --> 00:52:01,840
Speaker 1: point two six kilograms, which is a pretty weighty machine

866
00:52:01,840 --> 00:52:05,880
Speaker 1: to call a laptop. It was also bulky and was

867
00:52:05,920 --> 00:52:09,440
Speaker 1: about the size of a standard briefcase. In other words,

868
00:52:09,480 --> 00:52:12,319
Speaker 1: it was a giant compared to the Mac Air that

869
00:52:12,360 --> 00:52:15,080
Speaker 1: you could find today. The Mac Portable had a lead

870
00:52:15,239 --> 00:52:18,239
Speaker 1: acid battery, which is the same sort of battery you

871
00:52:18,280 --> 00:52:22,400
Speaker 1: can find in your standard gas powered automobile, like a

872
00:52:22,480 --> 00:52:25,880
Speaker 1: car battery that's also lead acid. That's the type of

873
00:52:25,880 --> 00:52:29,600
Speaker 1: battery the first Mac Portable had. Now, it did allow

874
00:52:29,640 --> 00:52:31,920
Speaker 1: you to have about ten hours of battery life, so

875
00:52:32,000 --> 00:52:35,120
Speaker 1: that's nice. But it added to that significant weight where

876
00:52:35,160 --> 00:52:37,680
Speaker 1: it was a rather i should say it made up

877
00:52:37,680 --> 00:52:39,759
Speaker 1: a significant portion of that weight.

878
00:52:41,200 --> 00:52:43,760
Speaker 2: There were two main keyboard layouts you could get.

879
00:52:44,280 --> 00:52:46,719
Speaker 1: One had a numeric keypad and the other one had

880
00:52:46,760 --> 00:52:49,760
Speaker 1: a track ball which would replace the need for a mouse.

881
00:52:50,000 --> 00:52:53,360
Speaker 1: So track ball sort of like the old centipede arcade machines,

882
00:52:53,400 --> 00:52:56,440
Speaker 1: And if you don't know what that is, ask your parents.

883
00:52:57,200 --> 00:53:00,600
Speaker 1: There were This was another one of the ideas of

884
00:53:01,160 --> 00:53:06,960
Speaker 1: Jean Louis Gassay, so he decided that the portable computer

885
00:53:07,040 --> 00:53:09,920
Speaker 1: was an interesting approach. He had already made a decision

886
00:53:09,960 --> 00:53:12,880
Speaker 1: to stick with Apple. He had received an order an

887
00:53:12,880 --> 00:53:17,680
Speaker 1: offer rather from Commodore. Commodore was making the Amiga line

888
00:53:17,719 --> 00:53:21,040
Speaker 1: of computers and they wanted Guess to come over as

889
00:53:21,080 --> 00:53:23,880
Speaker 1: the new head of Commodore. But he actually turned the

890
00:53:23,880 --> 00:53:27,200
Speaker 1: company down initially and said that he wanted to stick

891
00:53:27,239 --> 00:53:30,400
Speaker 1: with Apple, and so he really pushed for the portable Mac.

892
00:53:32,719 --> 00:53:36,480
Speaker 1: It had pretty impressive specs for the time. Apple said

893
00:53:36,480 --> 00:53:40,279
Speaker 1: they spared no expense, they made no accommodation for the

894
00:53:40,280 --> 00:53:45,680
Speaker 1: fact that was portable. They didn't want to compromise on quality,

895
00:53:46,239 --> 00:53:48,880
Speaker 1: and in fact, the specs were pretty impressive even for

896
00:53:49,000 --> 00:53:52,720
Speaker 1: just a regular desktop machine. However, it meant that the

897
00:53:52,760 --> 00:53:57,120
Speaker 1: device was incredibly expensive. Again not as surprise with Apple, right.

898
00:53:57,239 --> 00:54:00,560
Speaker 1: So its price tag was six thousand, five one hundred

899
00:54:00,640 --> 00:54:04,960
Speaker 1: dollars for this portable machine in nineteen eighty nine, So

900
00:54:05,000 --> 00:54:08,240
Speaker 1: if we look at inflation, that's about thirteen thousand dollars.

901
00:54:08,480 --> 00:54:11,000
Speaker 2: He would have to pay thirteen grand to get this

902
00:54:11,080 --> 00:54:11,719
Speaker 2: portable Mac.

903
00:54:12,200 --> 00:54:16,000
Speaker 1: Now, there was a call for portable machines because more

904
00:54:16,040 --> 00:54:19,000
Speaker 1: and more companies wanted people to be able to take

905
00:54:19,120 --> 00:54:21,880
Speaker 1: a machine into the field. You might work for a

906
00:54:21,880 --> 00:54:26,200
Speaker 1: company like a utility company, and having a computer that

907
00:54:26,280 --> 00:54:29,440
Speaker 1: your employee could take with him or her on a

908
00:54:29,480 --> 00:54:33,719
Speaker 1: service call was incredibly valuable. So there was a need

909
00:54:33,760 --> 00:54:36,960
Speaker 1: for portable machines. People had a desire for them. There

910
00:54:37,000 --> 00:54:40,800
Speaker 1: was a market there, But thirteen thousand dollars.

911
00:54:40,360 --> 00:54:42,160
Speaker 2: For a portable mac.

912
00:54:43,320 --> 00:54:45,880
Speaker 1: Was a super steep price, and you might not be

913
00:54:45,960 --> 00:54:48,920
Speaker 1: surprised to hear that not very many of them were

914
00:54:48,960 --> 00:54:52,480
Speaker 1: sold as a result. In fact, Apple sales in general

915
00:54:52,520 --> 00:54:55,400
Speaker 1: were not doing well that year. It marked the first

916
00:54:55,440 --> 00:55:00,040
Speaker 1: time Apple had an actual drop in sales figures. We

917
00:55:00,080 --> 00:55:04,120
Speaker 1: were selling fewer computers than they had in the previous year.

918
00:55:04,920 --> 00:55:08,360
Speaker 1: The following year, Gasse announced his retirement from Apple and

919
00:55:08,480 --> 00:55:12,760
Speaker 1: vacated the head of product development, So he only lasted

920
00:55:13,080 --> 00:55:16,719
Speaker 1: a little bit longer than Steve Jobs himself did. Now,

921
00:55:16,840 --> 00:55:20,000
Speaker 1: nineteen ninety also saw a big shift due to outside competition.

922
00:55:20,200 --> 00:55:26,279
Speaker 1: That's because in nineteen ninety Microsoft launched Windows three point zero. Now,

923
00:55:26,320 --> 00:55:29,600
Speaker 1: the previous incarnation of Windows had really not made a

924
00:55:29,680 --> 00:55:34,800
Speaker 1: huge impact on Macintosh sales. Consumers had not really adapted

925
00:55:34,840 --> 00:55:38,960
Speaker 1: and adopted the Windows platform. But Windows three was a

926
00:55:38,960 --> 00:55:44,400
Speaker 1: different story. Windows three and IBM compatible machines were starting

927
00:55:44,400 --> 00:55:47,520
Speaker 1: to become more popular, and from this point forward, I'm

928
00:55:47,560 --> 00:55:50,760
Speaker 1: just going to call those PCs. We'll talk about max

929
00:55:50,880 --> 00:55:54,320
Speaker 1: versus PCs. I don't like that because I think personal

930
00:55:54,360 --> 00:55:57,560
Speaker 1: computer is too broad a term to just refer to

931
00:55:57,640 --> 00:56:01,759
Speaker 1: Windows based machines. But just for simplicity's sake, We're going

932
00:56:01,840 --> 00:56:03,799
Speaker 1: to do that for the rest of this episode. So

933
00:56:04,560 --> 00:56:08,200
Speaker 1: PCs were really selling well, and Windows three point zero

934
00:56:09,239 --> 00:56:13,520
Speaker 1: was a dominant operating system, again a graphic user interface

935
00:56:13,920 --> 00:56:17,000
Speaker 1: similar to what you would find on the Macintosh. There

936
00:56:17,000 --> 00:56:21,960
Speaker 1: were even people arguing that Microsoft was copying no Macintosh,

937
00:56:21,960 --> 00:56:25,120
Speaker 1: but the development of Windows was happening at around the

938
00:56:25,160 --> 00:56:28,880
Speaker 1: same time as the development of the Macintosh guy, And

939
00:56:29,320 --> 00:56:32,920
Speaker 1: to be honest, both companies really owed a huge debt

940
00:56:33,120 --> 00:56:37,480
Speaker 1: to Xerox because it was Xerox's Park, the R and

941
00:56:37,560 --> 00:56:41,560
Speaker 1: D arm of Xerox that developed the graphic user interface. Anyway,

942
00:56:42,960 --> 00:56:45,880
Speaker 1: the ibmpcs had a huge advantage over Macintosh in that

943
00:56:45,880 --> 00:56:49,080
Speaker 1: they were less expensive. You could buy an IBMPC for

944
00:56:49,120 --> 00:56:51,719
Speaker 1: a fraction of what it cost to buy a Macintosh.

945
00:56:51,880 --> 00:56:54,400
Speaker 1: Then you can get your graphic user interface with Windows

946
00:56:54,440 --> 00:56:55,240
Speaker 1: three point zero.

947
00:56:56,280 --> 00:56:57,239
Speaker 2: In fact, within a.

948
00:56:57,160 --> 00:57:00,560
Speaker 1: Couple of years, you would have about five copies of

949
00:57:00,600 --> 00:57:03,840
Speaker 1: Windows three point zero for every Macintosh that was being sold.

950
00:57:04,719 --> 00:57:10,399
Speaker 1: That's not great if you're Apple. I should also point

951
00:57:10,440 --> 00:57:13,720
Speaker 1: out that even at this point, as late as nineteen ninety,

952
00:57:13,800 --> 00:57:17,920
Speaker 1: I still hated Windows because I still hated the idea

953
00:57:17,920 --> 00:57:20,480
Speaker 1: of having to surrender so much of my computer's operating

954
00:57:20,520 --> 00:57:24,480
Speaker 1: system or so much of my computer's processing power to

955
00:57:24,640 --> 00:57:28,040
Speaker 1: the operating system. So I was still being an elitist

956
00:57:28,080 --> 00:57:30,400
Speaker 1: computer snob in those days, although I had to give

957
00:57:30,400 --> 00:57:33,400
Speaker 1: in because more and more games were only Windows compatible,

958
00:57:33,400 --> 00:57:35,240
Speaker 1: and if I'm going to be honest, that was my

959
00:57:35,400 --> 00:57:38,960
Speaker 1: main concern with PCs back in the day. Wasn't so

960
00:57:39,080 --> 00:57:42,000
Speaker 1: much concerned about the productivity software. But if I couldn't

961
00:57:42,040 --> 00:57:48,080
Speaker 1: play my Ultima series of games, I got grouchy anyway.

962
00:57:48,480 --> 00:57:50,600
Speaker 1: Nineteen ninety remember it was also the year that the

963
00:57:50,640 --> 00:57:54,600
Speaker 1: Macplus finally got discontinued from Apple. They decided to stop

964
00:57:54,640 --> 00:57:56,720
Speaker 1: selling it, to stop making it, but it had a

965
00:57:56,800 --> 00:57:59,680
Speaker 1: four year run, so that was really strong. Now I've

966
00:57:59,680 --> 00:58:03,200
Speaker 1: got or to say about this period in Apple and

967
00:58:03,280 --> 00:58:06,080
Speaker 1: Macintosh history, but before I get to that, let's take

968
00:58:06,080 --> 00:58:08,560
Speaker 1: another quick break to thank our sponsor.

969
00:58:18,000 --> 00:58:19,720
Speaker 2: Within two years, so.

970
00:58:19,760 --> 00:58:22,080
Speaker 1: Essentially, by the time it gets to nineteen ninety two,

971
00:58:22,080 --> 00:58:25,280
Speaker 1: Windows machines were outnumbering McIntosh machines by that factor of

972
00:58:25,320 --> 00:58:28,600
Speaker 1: five to one, and that was super bad news for Apple.

973
00:58:28,760 --> 00:58:33,520
Speaker 1: Apple stock price suffered dropping twenty percent, so the value

974
00:58:33,520 --> 00:58:37,640
Speaker 1: of the company decreased by one fifth. Because of this

975
00:58:37,800 --> 00:58:41,400
Speaker 1: issue and other issues going on in Apple, so the

976
00:58:41,400 --> 00:58:42,040
Speaker 1: company was.

977
00:58:41,960 --> 00:58:45,360
Speaker 2: In a dangerous time in its history.

978
00:58:45,480 --> 00:58:48,120
Speaker 1: It really led to an overall operational loss and it

979
00:58:48,200 --> 00:58:54,120
Speaker 1: was pretty ugly. Stockholders were demanding that something change. So

980
00:58:54,240 --> 00:58:56,600
Speaker 1: John Scully was on the way out at this point

981
00:58:56,720 --> 00:59:01,480
Speaker 1: because the performance of the company was suffering. He was

982
00:59:01,560 --> 00:59:05,080
Speaker 1: being blamed for a lot of that, and so he

983
00:59:05,200 --> 00:59:08,680
Speaker 1: left in nineteen ninety three. But just before he left,

984
00:59:09,360 --> 00:59:13,120
Speaker 1: Apple was still trying to right the ship.

985
00:59:13,560 --> 00:59:13,720
Speaker 2: Right.

986
00:59:13,800 --> 00:59:15,720
Speaker 1: The ship was starting to list. They were trying to

987
00:59:15,720 --> 00:59:20,240
Speaker 1: get it back on track. I'm mixing metaphors, sue me.

988
00:59:20,880 --> 00:59:24,520
Speaker 1: Apple introduced System seven, so this was the next generation

989
00:59:24,560 --> 00:59:28,800
Speaker 1: of its operating system, and it introduced AutoMac support from

990
00:59:28,840 --> 00:59:33,880
Speaker 1: multiple simultaneous applications, so you could run numerous programs at

991
00:59:33,880 --> 00:59:39,680
Speaker 1: the same time. It also introduced its QuickTime software in

992
00:59:39,760 --> 00:59:42,960
Speaker 1: nineteen ninety one, and Apple Max began to run on

993
00:59:43,120 --> 00:59:47,160
Speaker 1: the Motorola six eight zero three zero processors. And I'm

994
00:59:47,200 --> 00:59:49,200
Speaker 1: sure there's an easier way of saying that, and I'm

995
00:59:49,240 --> 00:59:51,760
Speaker 1: sure the computer geeks out there in the audience who

996
00:59:51,760 --> 00:59:54,160
Speaker 1: are familiar with these processors, these are the ones that

997
00:59:54,960 --> 00:59:58,640
Speaker 1: Max ran on the sixty eight thousand processors that Motorola

998
00:59:58,720 --> 01:00:01,800
Speaker 1: made since the beginning. I'm sure there's an easier way

999
01:00:01,800 --> 01:00:04,280
Speaker 1: of saying them, and I apologize for not knowing that,

1000
01:00:04,680 --> 01:00:07,760
Speaker 1: but I'm just going to stay them the long way anyway.

1001
01:00:09,680 --> 01:00:12,920
Speaker 1: The Apple introduced the Macintosh Quadra seven hundred and the

1002
01:00:12,960 --> 01:00:16,400
Speaker 1: Quadra nine hundred computers in ninety one, which were meant

1003
01:00:16,480 --> 01:00:19,400
Speaker 1: to be new product lines within Macintosh, although they didn't

1004
01:00:19,440 --> 01:00:22,880
Speaker 1: last very long. They ran on Motorola six to eight

1005
01:00:23,000 --> 01:00:26,560
Speaker 1: zero four zero processors, which are comparable to the four

1006
01:00:26,600 --> 01:00:30,000
Speaker 1: eighty six processors that Intel was producing at the time.

1007
01:00:30,400 --> 01:00:34,240
Speaker 1: So you had Microsoft and Windows that were paired up

1008
01:00:34,240 --> 01:00:37,640
Speaker 1: with Intel, and you had Apple pairing up with Motorola,

1009
01:00:37,840 --> 01:00:40,880
Speaker 1: trying to make sure that its computers were of a

1010
01:00:41,000 --> 01:00:47,720
Speaker 1: comparable comparable level of quality to the top of the

1011
01:00:47,720 --> 01:00:52,960
Speaker 1: line IBM compatible machines. Apple introduced a new type of

1012
01:00:52,960 --> 01:00:56,400
Speaker 1: computer called the PowerBook, which was a line of truly

1013
01:00:56,480 --> 01:00:59,480
Speaker 1: portable computers. These were more These were closer to being

1014
01:00:59,560 --> 01:01:02,960
Speaker 1: laptop than that portable Mac was. Remember the portable Mac

1015
01:01:03,040 --> 01:01:06,439
Speaker 1: was really just a portable Mac, but the power Book

1016
01:01:06,480 --> 01:01:07,280
Speaker 1: was meant to be more.

1017
01:01:07,200 --> 01:01:07,840
Speaker 2: Of a laptop.

1018
01:01:08,280 --> 01:01:12,120
Speaker 1: The first of the power Books, or rather the lowest

1019
01:01:12,280 --> 01:01:16,080
Speaker 1: in the whole line. The cheapest was not actually made

1020
01:01:16,120 --> 01:01:20,160
Speaker 1: by Apple. Apple contracted with Sony, and Sony made the

1021
01:01:20,200 --> 01:01:23,640
Speaker 1: power Book one hundred. This is unusual because most Apple

1022
01:01:23,680 --> 01:01:27,480
Speaker 1: products are manufactured by Apple itself, but that wasn't true

1023
01:01:27,480 --> 01:01:30,640
Speaker 1: for the power Book one hundred. The battery on the

1024
01:01:30,640 --> 01:01:33,520
Speaker 1: power Book one hundred would last a whole two hours

1025
01:01:33,880 --> 01:01:37,040
Speaker 1: without being plugged in. It didn't sell as well as

1026
01:01:37,040 --> 01:01:38,880
Speaker 1: some of the higher end models because it just didn't

1027
01:01:38,920 --> 01:01:41,640
Speaker 1: have the features. The power Book one forty and the

1028
01:01:41,680 --> 01:01:44,720
Speaker 1: one seventy were launched at around the same time, and

1029
01:01:44,760 --> 01:01:47,520
Speaker 1: they sold better than the power Book one hundred did.

1030
01:01:47,960 --> 01:01:50,360
Speaker 1: The form factor of these ended up kind of defining

1031
01:01:50,440 --> 01:01:53,280
Speaker 1: the look of laptops in the future. So if you

1032
01:01:53,400 --> 01:01:57,440
Speaker 1: unfolded the screen, the keyboard sat back toward the screen,

1033
01:01:58,000 --> 01:02:00,760
Speaker 1: so typically the way you would open up laptop, and

1034
01:02:00,800 --> 01:02:02,920
Speaker 1: you know how the keyboard is back in the back section.

1035
01:02:03,200 --> 01:02:06,520
Speaker 1: In the front section there was space for a first

1036
01:02:06,520 --> 01:02:09,440
Speaker 1: of track ball, so again kind of like centipede ask

1037
01:02:09,480 --> 01:02:12,560
Speaker 1: your parents, and then later on a trackpad, which is

1038
01:02:12,560 --> 01:02:15,240
Speaker 1: what you find standard on most laptops today.

1039
01:02:15,680 --> 01:02:16,760
Speaker 2: Well, it was the power.

1040
01:02:16,520 --> 01:02:19,760
Speaker 1: Book that kind of defined that form factor and most

1041
01:02:19,840 --> 01:02:22,880
Speaker 1: laptops following followed along behind it.

1042
01:02:22,920 --> 01:02:26,600
Speaker 2: They didn't really change that up because it just made sense,

1043
01:02:27,120 --> 01:02:28,920
Speaker 2: but it was the power book that really introduced that.

1044
01:02:31,040 --> 01:02:36,919
Speaker 1: Now beyond this, you also had in nineteen ninety one

1045
01:02:37,200 --> 01:02:42,800
Speaker 1: an alliance between Apple, IBM, and Motorola. They called it

1046
01:02:42,840 --> 01:02:48,800
Speaker 1: the AIM Alliance, AIM standing for Apple, IBM, Motorola cute right.

1047
01:02:49,400 --> 01:02:53,040
Speaker 2: The aim of aim yakidishmacaee doo.

1048
01:02:53,640 --> 01:02:56,480
Speaker 1: Was building new hardware and software to act as a

1049
01:02:56,480 --> 01:03:00,160
Speaker 1: platform for the next generation of computers and to and

1050
01:03:00,720 --> 01:03:05,720
Speaker 1: as a direct competitor with Windows and Intel. So they

1051
01:03:05,760 --> 01:03:09,600
Speaker 1: wanted to make their own version of the partnership that

1052
01:03:09,680 --> 01:03:13,720
Speaker 1: Microsoft had with Intel and make it a competing standard.

1053
01:03:14,000 --> 01:03:16,480
Speaker 2: They called it PREP, which added.

1054
01:03:16,280 --> 01:03:19,440
Speaker 1: In uppercase P and uppercase are a lowercase E and

1055
01:03:19,480 --> 01:03:24,160
Speaker 1: an uppercase P. It stood for power PC Reference Platform.

1056
01:03:24,240 --> 01:03:26,960
Speaker 1: It was intended to serve as that competitor, and the

1057
01:03:26,960 --> 01:03:29,880
Speaker 1: goal was to create a new operating system that Apple

1058
01:03:29,880 --> 01:03:32,720
Speaker 1: would be in charge of. So Apple would provide the

1059
01:03:32,760 --> 01:03:36,760
Speaker 1: operating system and it would run on Risk based processors

1060
01:03:36,760 --> 01:03:41,400
Speaker 1: that's RISC, and those would come from IBM and Motorola.

1061
01:03:41,960 --> 01:03:47,080
Speaker 1: Apple's code named operating system was called PINK and why Well,

1062
01:03:47,080 --> 01:03:49,400
Speaker 1: that goes back a little bit earlier in Apple's history.

1063
01:03:49,440 --> 01:03:53,560
Speaker 1: So when Apple was planning out future projects several years

1064
01:03:53,960 --> 01:03:58,160
Speaker 1: before this happened, they would write down ideas on one

1065
01:03:58,240 --> 01:04:02,520
Speaker 1: of two different colors of note cards. If the ideal

1066
01:04:02,640 --> 01:04:05,640
Speaker 1: was considered to be easy to implement, If engineer said, yeah,

1067
01:04:05,680 --> 01:04:07,880
Speaker 1: we can knock that out and it won't cost too

1068
01:04:07,960 --> 01:04:10,400
Speaker 1: much and it won't take up too much time, those

1069
01:04:10,440 --> 01:04:13,280
Speaker 1: ideas went on blue note cards, meaning these are going

1070
01:04:13,320 --> 01:04:16,040
Speaker 1: to be easy for us to do. If it was

1071
01:04:16,120 --> 01:04:19,360
Speaker 1: considered a challenging idea that was going to require more time,

1072
01:04:19,640 --> 01:04:22,760
Speaker 1: more effort, and therefore it was going to cost more internally,

1073
01:04:23,200 --> 01:04:27,040
Speaker 1: they would write it down on a pink note card, saying, yeah,

1074
01:04:27,040 --> 01:04:28,880
Speaker 1: this is going to be harder to do. It might

1075
01:04:28,920 --> 01:04:31,720
Speaker 1: still be worth it, but it's going to be hard.

1076
01:04:32,280 --> 01:04:32,680
Speaker 2: Well.

1077
01:04:32,920 --> 01:04:36,000
Speaker 1: The operating system was code named Pink because it was

1078
01:04:36,040 --> 01:04:39,360
Speaker 1: written down on a pink note card. Creating the next

1079
01:04:39,400 --> 01:04:44,600
Speaker 1: generation operating system, one that wasn't rooted in the system

1080
01:04:44,800 --> 01:04:47,440
Speaker 1: versions that had been on Macintosh up to that point

1081
01:04:47,880 --> 01:04:50,720
Speaker 1: was going to take a lot of development time and effort,

1082
01:04:51,360 --> 01:04:55,919
Speaker 1: so it was code named Pink. Now, sadly, prep never

1083
01:04:56,040 --> 01:04:58,600
Speaker 1: really meshed you never got a point where you had

1084
01:04:58,600 --> 01:05:00,960
Speaker 1: the hardware and software married to together to make this

1085
01:05:01,600 --> 01:05:02,960
Speaker 1: rival to Windows Intel.

1086
01:05:03,920 --> 01:05:06,440
Speaker 2: So ultimately the project was a failure.

1087
01:05:06,520 --> 01:05:08,840
Speaker 1: But one thing that did come out of it was

1088
01:05:08,880 --> 01:05:12,320
Speaker 1: a new type of processor called the power PC processor,

1089
01:05:12,560 --> 01:05:16,200
Speaker 1: and those would eventually find their way into mac computers.

1090
01:05:17,080 --> 01:05:19,800
Speaker 1: In nineteen ninety two, Apple introduced a line of Macintosh

1091
01:05:19,840 --> 01:05:23,840
Speaker 1: computers called the Performa line, and this was McIntosh's effort

1092
01:05:23,840 --> 01:05:27,680
Speaker 1: to actually say, hey, let's make something for the average consumer.

1093
01:05:28,040 --> 01:05:32,320
Speaker 1: Most Macintosh computers were so expensive and so specialized that

1094
01:05:32,360 --> 01:05:35,680
Speaker 1: they were just going to a narrow niche market. We're

1095
01:05:35,680 --> 01:05:39,280
Speaker 1: talking about those creators I mentioned earlier and small businesses,

1096
01:05:39,680 --> 01:05:42,240
Speaker 1: but that meant they were passing up the opportunity to

1097
01:05:42,360 --> 01:05:46,160
Speaker 1: really target personal computer owners. They had mostly targeted those

1098
01:05:46,200 --> 01:05:48,640
Speaker 1: through the Apple two line. But now the Apple two

1099
01:05:48,680 --> 01:05:53,120
Speaker 1: line was dead. It had discontinued, and really it ended

1100
01:05:53,120 --> 01:05:56,480
Speaker 1: in nineteen ninety three when Apple two E Enhanced stopped

1101
01:05:56,480 --> 01:05:59,200
Speaker 1: being made, although there were a couple of other variations

1102
01:05:59,200 --> 01:06:01,640
Speaker 1: in the Apple two that lasted a bit longer. But

1103
01:06:01,720 --> 01:06:04,720
Speaker 1: they wanted to tackle that same market with the Macintosh line,

1104
01:06:05,280 --> 01:06:06,960
Speaker 1: so they launched the Performa series.

1105
01:06:07,200 --> 01:06:07,960
Speaker 2: So what was it.

1106
01:06:08,800 --> 01:06:12,600
Speaker 1: The Performance Series was really just rebranded older models of

1107
01:06:12,680 --> 01:06:13,880
Speaker 1: Macintosh computers.

1108
01:06:14,320 --> 01:06:15,760
Speaker 2: So the Macintosh.

1109
01:06:15,320 --> 01:06:18,040
Speaker 1: Computers that debuted a couple of years earlier but now

1110
01:06:18,160 --> 01:06:22,480
Speaker 1: had slower processors compared to the most up to date models,

1111
01:06:22,920 --> 01:06:27,479
Speaker 1: they got rebranded as Performa models of Macintosh and put

1112
01:06:27,480 --> 01:06:31,520
Speaker 1: on the market. However, Apple dumped a whole bunch of

1113
01:06:31,560 --> 01:06:35,000
Speaker 1: different models at the same time, and that really confused

1114
01:06:35,040 --> 01:06:38,720
Speaker 1: consumers in the marketplace. Imagine going to a store and

1115
01:06:38,800 --> 01:06:43,080
Speaker 1: seeing eight different variations of the same basic computer and

1116
01:06:43,120 --> 01:06:48,040
Speaker 1: not really understanding what differentiated one from another. That's kind

1117
01:06:48,040 --> 01:06:50,880
Speaker 1: of what happened with the Performa series. It just added

1118
01:06:50,920 --> 01:06:55,280
Speaker 1: more confusion in the marketplace, and ultimately consumers just weren't

1119
01:06:55,360 --> 01:06:58,440
Speaker 1: sure about which computer they should pie, and not a

1120
01:06:58,480 --> 01:07:02,720
Speaker 1: lot of them got sold. So Apple decided, hey, let's

1121
01:07:02,960 --> 01:07:06,360
Speaker 1: clear up the confusion, and they produced a half hour

1122
01:07:06,600 --> 01:07:12,120
Speaker 1: infomercial explaining the different Performa models, and you can find

1123
01:07:12,120 --> 01:07:15,200
Speaker 1: it online. So if you've got half an hour to

1124
01:07:15,280 --> 01:07:18,320
Speaker 1: kill and you want to see how Apple tried to

1125
01:07:18,400 --> 01:07:23,000
Speaker 1: explain this Performa series to consumers, search for it online.

1126
01:07:23,040 --> 01:07:23,640
Speaker 2: You can find it.

1127
01:07:23,640 --> 01:07:26,520
Speaker 1: It's usually divided up into multiple parts, but you can

1128
01:07:26,520 --> 01:07:30,320
Speaker 1: find the performa series of videos that made up a

1129
01:07:30,360 --> 01:07:34,160
Speaker 1: half hour infomercial. Now, the next person to step in

1130
01:07:34,280 --> 01:07:36,960
Speaker 1: as leader of the company, remember Scully had left in

1131
01:07:37,040 --> 01:07:41,160
Speaker 1: ninety three, was Michael Spindler. He came from Apple's European

1132
01:07:41,240 --> 01:07:45,240
Speaker 1: operations division and he worked his way up the chain there.

1133
01:07:46,600 --> 01:07:51,000
Speaker 1: His term was one of real controversy. It wasn't as

1134
01:07:51,280 --> 01:07:54,680
Speaker 1: a smooth transition, and it wasn't without issues.

1135
01:07:55,320 --> 01:07:58,240
Speaker 2: In fact, there were rumors that he was discussing.

1136
01:07:57,720 --> 01:08:01,400
Speaker 1: The possibilities of a takeover with other companies like Sun

1137
01:08:01,400 --> 01:08:05,840
Speaker 1: Microsystems or IBM, and he also oversaw projects at Apple

1138
01:08:05,880 --> 01:08:10,480
Speaker 1: that ultimately failed, like Apple's Newton project. I know I've

1139
01:08:10,560 --> 01:08:14,160
Speaker 1: mentioned Newton in previous episodes of Tech Stuff. I think

1140
01:08:14,160 --> 01:08:16,439
Speaker 1: we might have even done a full episode about the Newton,

1141
01:08:17,120 --> 01:08:21,040
Speaker 1: which is kind of a sad and comical story simultaneously.

1142
01:08:21,560 --> 01:08:23,960
Speaker 1: But that was the little handheld device that was meant

1143
01:08:24,000 --> 01:08:26,800
Speaker 1: to be able to recognize handwriting and other and have

1144
01:08:26,880 --> 01:08:33,960
Speaker 1: other features as well, that ultimately had its ambitions were

1145
01:08:34,000 --> 01:08:37,160
Speaker 1: beyond its own grasp. Let's be kind and call it that.

1146
01:08:37,600 --> 01:08:44,360
Speaker 1: But that's another story. So the nickname for Michael Spindler

1147
01:08:44,520 --> 01:08:48,559
Speaker 1: was the Diesel. I don't know what that says about

1148
01:08:48,600 --> 01:08:51,120
Speaker 1: his character, but I have a feeling that I probably

1149
01:08:51,400 --> 01:08:56,200
Speaker 1: wouldn't be compatible with someone whose nickname is the Diesel,

1150
01:08:56,560 --> 01:09:01,960
Speaker 1: unless it was Kevin Nash, because we have a mutual

1151
01:09:02,040 --> 01:09:06,679
Speaker 1: love of professional wrestling. Now, Spindler would end up being

1152
01:09:06,800 --> 01:09:09,800
Speaker 1: replaced by the Board of directors a few years later

1153
01:09:09,880 --> 01:09:12,759
Speaker 1: in nineteen ninety six, and the board of directors chose

1154
01:09:12,880 --> 01:09:17,639
Speaker 1: Gil Emilio to step in as CEO. Gill Emilio had

1155
01:09:17,680 --> 01:09:22,520
Speaker 1: come from National Semiconductor before joining Apple, and Emilio himself

1156
01:09:22,800 --> 01:09:25,479
Speaker 1: would also get replaced by the Board of directors in

1157
01:09:25,560 --> 01:09:28,400
Speaker 1: nineteen ninety seven. But more on that in a little bit.

1158
01:09:28,479 --> 01:09:31,880
Speaker 1: Let's get back to the timeline of Macintosh. So we

1159
01:09:32,000 --> 01:09:35,000
Speaker 1: left off in nineteen ninety four, just took a break

1160
01:09:35,040 --> 01:09:38,360
Speaker 1: to talk about the shuffle at the CEO level over

1161
01:09:38,360 --> 01:09:40,800
Speaker 1: the next couple of years, which really tells you that

1162
01:09:40,840 --> 01:09:42,679
Speaker 1: Apple was in trouble.

1163
01:09:43,200 --> 01:09:45,960
Speaker 2: When you see a company changing CEO.

1164
01:09:45,760 --> 01:09:49,000
Speaker 1: So rapidly because the board keeps replacing it, that's not

1165
01:09:49,120 --> 01:09:52,320
Speaker 1: a great sign. Doesn't show a lot of confidence at

1166
01:09:52,320 --> 01:09:55,000
Speaker 1: the Board of directors level, and it probably reflects a

1167
01:09:55,080 --> 01:09:58,360
Speaker 1: lack of confidence at the shareholder level. But the show

1168
01:09:58,439 --> 01:10:02,160
Speaker 1: had to go on. So what was happening Macintosh. Well,

1169
01:10:02,160 --> 01:10:06,000
Speaker 1: in nineteen ninety four, Apple made a big move that

1170
01:10:06,640 --> 01:10:10,679
Speaker 1: was a defining moment in the Macintosh line. They decided

1171
01:10:10,680 --> 01:10:13,519
Speaker 1: to move away from those Motorola processors I talked about

1172
01:10:13,560 --> 01:10:17,080
Speaker 1: a minute ago, and switched to the power PC processors,

1173
01:10:17,080 --> 01:10:21,920
Speaker 1: which remember were still developed partially by Motorola in partnership

1174
01:10:21,960 --> 01:10:24,519
Speaker 1: with IBM. So it's not like they were turning their

1175
01:10:24,560 --> 01:10:27,960
Speaker 1: back on Motorola. Rather they said, from this point forward,

1176
01:10:28,000 --> 01:10:30,720
Speaker 1: our architecture is going to depend upon this type of

1177
01:10:30,760 --> 01:10:34,840
Speaker 1: computer processor instead of this other type of computer processor.

1178
01:10:35,280 --> 01:10:38,439
Speaker 1: But that meant big changes all down the line of

1179
01:10:38,479 --> 01:10:42,360
Speaker 1: the Macintosh. Now, they were hoping that the power PC

1180
01:10:42,600 --> 01:10:47,679
Speaker 1: processors would be able to rival Intel's x eighty six chips.

1181
01:10:48,040 --> 01:10:50,720
Speaker 1: Those are the for eighty six's, the pendums and so on,

1182
01:10:51,800 --> 01:10:55,000
Speaker 1: So that was the hope, and they actually stuck with

1183
01:10:55,040 --> 01:10:59,000
Speaker 1: power PC processors all the way from nineteen ninety four

1184
01:10:59,040 --> 01:11:01,840
Speaker 1: to two thousand and six, and then they changed again.

1185
01:11:02,520 --> 01:11:05,000
Speaker 2: That's a story for later now.

1186
01:11:05,040 --> 01:11:07,960
Speaker 1: The first mac to feature a power PC processor was

1187
01:11:08,000 --> 01:11:13,240
Speaker 1: the Macintosh sixty one hundred, which also ran macOS nine.

1188
01:11:13,400 --> 01:11:15,920
Speaker 1: It was the latest version of Apple's operating system. Although

1189
01:11:15,960 --> 01:11:18,759
Speaker 1: it wasn't called macOS nine, it was really System nine.

1190
01:11:19,080 --> 01:11:21,960
Speaker 1: It was the first computer to actually run System nine.

1191
01:11:22,680 --> 01:11:27,920
Speaker 1: Oddly enough, Apple also released a second version of this

1192
01:11:28,320 --> 01:11:32,920
Speaker 1: specific computer with a completely different chip architecture.

1193
01:11:33,439 --> 01:11:35,400
Speaker 2: So you had the power Pc version.

1194
01:11:35,479 --> 01:11:37,920
Speaker 1: Of the sixty one hundred, but you also had an

1195
01:11:38,000 --> 01:11:41,360
Speaker 1: Intel for eighty six version of the sixty one hundred.

1196
01:11:41,960 --> 01:11:44,400
Speaker 1: For the first time, Apple decided to try and go

1197
01:11:44,560 --> 01:11:49,160
Speaker 1: with an IBM compatible route, So this version of the

1198
01:11:49,200 --> 01:11:53,720
Speaker 1: Mac sixty one hundred had an Intel forty forty six microprocessor.

1199
01:11:53,800 --> 01:11:57,320
Speaker 1: It was DOS compatible. It could run both mac OS

1200
01:11:57,320 --> 01:12:01,439
Speaker 1: and Windows simultaneously. Later on on Macintosh users would have

1201
01:12:01,479 --> 01:12:04,160
Speaker 1: to do this by setting up a virtual machine that

1202
01:12:04,200 --> 01:12:07,840
Speaker 1: would run an instance of Windows over on top of

1203
01:12:07,880 --> 01:12:11,400
Speaker 1: the Mac hardware. This was also a time when Apple

1204
01:12:11,439 --> 01:12:13,559
Speaker 1: began to stray further away from the concept of making

1205
01:12:13,680 --> 01:12:17,200
Speaker 1: as much in house as it could, and it was

1206
01:12:17,240 --> 01:12:19,479
Speaker 1: a big departure from the way Steve Jobs had run

1207
01:12:19,560 --> 01:12:22,720
Speaker 1: things back when he was still part of the company. Now,

1208
01:12:22,720 --> 01:12:26,000
Speaker 1: the power Pc hardware was incompatible with software that was

1209
01:12:26,040 --> 01:12:29,840
Speaker 1: written for Macintosh computers running the older Motorola chips. You

1210
01:12:29,920 --> 01:12:33,960
Speaker 1: often find this if you change processor types. That change

1211
01:12:33,960 --> 01:12:37,880
Speaker 1: in architecture requires software to behave a different way in

1212
01:12:38,000 --> 01:12:41,200
Speaker 1: order for stuff to get done. So if you were

1213
01:12:41,200 --> 01:12:45,240
Speaker 1: trying to run an older Macintosh program on a power

1214
01:12:45,360 --> 01:12:49,479
Speaker 1: PC Macintosh, you had to have an emulator. This is

1215
01:12:49,520 --> 01:12:54,759
Speaker 1: a piece of software that simulates the way other hardware runs.

1216
01:12:54,880 --> 01:12:58,040
Speaker 1: You might remember I did an episode all about video

1217
01:12:58,040 --> 01:13:01,799
Speaker 1: game emulators. The same thing is true for operating system

1218
01:13:01,800 --> 01:13:06,439
Speaker 1: emulators or chip emulators. So you had this software that

1219
01:13:06,600 --> 01:13:10,760
Speaker 1: was replicating the way old Motorola chips ran, but it

1220
01:13:10,800 --> 01:13:14,120
Speaker 1: would allow the software to run on a power PC

1221
01:13:14,479 --> 01:13:18,200
Speaker 1: processor computer. In other words, you just had to have

1222
01:13:18,280 --> 01:13:20,439
Speaker 1: this other piece of software to kind of act as

1223
01:13:20,439 --> 01:13:23,800
Speaker 1: an interpreter so that you could get stuff done on

1224
01:13:23,840 --> 01:13:26,800
Speaker 1: your new machine. Now, the good news was the power

1225
01:13:26,800 --> 01:13:30,280
Speaker 1: PCs were so powerful, these power macs as they came

1226
01:13:30,360 --> 01:13:34,559
Speaker 1: to be called, were so powerful that it didn't slow

1227
01:13:34,760 --> 01:13:38,760
Speaker 1: down the processing of these older mac programs. So the

1228
01:13:38,800 --> 01:13:44,120
Speaker 1: emulator wasn't so processor heavy that it was impacting the

1229
01:13:44,160 --> 01:13:46,799
Speaker 1: way the program ran. It would actually run more smoothly

1230
01:13:47,240 --> 01:13:50,599
Speaker 1: on these power PC programs or power pc machines than

1231
01:13:50,600 --> 01:13:53,000
Speaker 1: they would on the older Motorola machines. So that was

1232
01:13:53,040 --> 01:13:56,400
Speaker 1: a good story, right. You don't want your emulator to

1233
01:13:56,400 --> 01:13:59,639
Speaker 1: slow stuff down, because then people get the implication that

1234
01:13:59,840 --> 01:14:02,760
Speaker 1: the brand new computer they just bought is slower than

1235
01:14:02,760 --> 01:14:07,320
Speaker 1: their old computer. That's a bad thing. So luckily the

1236
01:14:07,360 --> 01:14:11,000
Speaker 1: emulator ran really efficiently and it didn't slow things down.

1237
01:14:12,280 --> 01:14:14,400
Speaker 1: In nineteen ninety five, that's when things kind of went

1238
01:14:14,439 --> 01:14:17,759
Speaker 1: bonkers over at Apple. For the first time ever, Apple

1239
01:14:17,880 --> 01:14:23,600
Speaker 1: licensed other companies to allow them to bring Macintosh compatible

1240
01:14:23,680 --> 01:14:27,720
Speaker 1: machines to market, So this was the era of the Macclone.

1241
01:14:28,600 --> 01:14:32,120
Speaker 1: They allowed other companies to license the hardware and software

1242
01:14:32,320 --> 01:14:35,559
Speaker 1: and make their own versions of the Macintosh computer, although

1243
01:14:35,560 --> 01:14:38,800
Speaker 1: they would be called different things. This, by the way,

1244
01:14:38,840 --> 01:14:41,599
Speaker 1: ignores the fact that PowerBook one hundred was built by Sony,

1245
01:14:41,640 --> 01:14:45,000
Speaker 1: but that was built by Sony for Apple. In this case,

1246
01:14:45,160 --> 01:14:48,400
Speaker 1: I'm not talking about companies that were building machines for Apple.

1247
01:14:48,720 --> 01:14:51,320
Speaker 1: I'm talking about companies that would license the technology to

1248
01:14:51,360 --> 01:14:54,720
Speaker 1: build their own version of the Macintosh and sell it

1249
01:14:54,760 --> 01:14:59,400
Speaker 1: to consumers. The first was the Radius System one hundred

1250
01:14:59,640 --> 01:15:02,160
Speaker 1: from a company called Radius, and it was similar to

1251
01:15:02,520 --> 01:15:06,599
Speaker 1: Apple's own PowerMac eighty one hundred. The specs were very close,

1252
01:15:07,080 --> 01:15:10,960
Speaker 1: but the computer itself was housed in a tower style case,

1253
01:15:11,360 --> 01:15:13,679
Speaker 1: so very different from Apple's approach where they would try

1254
01:15:13,720 --> 01:15:16,800
Speaker 1: and put the monitor and the computer case all in

1255
01:15:16,880 --> 01:15:20,000
Speaker 1: one unit. That was typical for most of Apple's computers.

1256
01:15:20,080 --> 01:15:21,920
Speaker 1: Not all of them, but a lot of them.

1257
01:15:22,360 --> 01:15:23,639
Speaker 2: This was totally different.

1258
01:15:23,680 --> 01:15:26,360
Speaker 1: It was more like your standard IBM compatible where you

1259
01:15:26,400 --> 01:15:30,759
Speaker 1: had a tower desktop. So it was a big departure

1260
01:15:30,800 --> 01:15:36,679
Speaker 1: from Apple's esthetic. There were other computers that also launched

1261
01:15:36,720 --> 01:15:39,120
Speaker 1: at this time that were clones the Macintosh, because there

1262
01:15:39,120 --> 01:15:42,760
Speaker 1: were other companies that licensed the technology from Apple, and

1263
01:15:43,240 --> 01:15:46,479
Speaker 1: perhaps Apple was hoping to dominate the market again and

1264
01:15:46,520 --> 01:15:50,600
Speaker 1: make enough money off the licenses to justify their use. Unfortunately,

1265
01:15:51,320 --> 01:15:55,080
Speaker 1: Apple ended up cutting off its nose to spite its face.

1266
01:15:55,680 --> 01:16:01,280
Speaker 1: In this case, they licensed the technology manufacturers, but that

1267
01:16:01,400 --> 01:16:06,320
Speaker 1: gave companies the opportunity to produce cheaper machines running Apple

1268
01:16:06,360 --> 01:16:09,680
Speaker 1: hardware and software. So you could run Macintosh programs on

1269
01:16:09,720 --> 01:16:13,680
Speaker 1: these computers because they were clones of the mac not physically,

1270
01:16:13,920 --> 01:16:17,880
Speaker 1: but from a hardware and software standpoint, they were, and

1271
01:16:18,000 --> 01:16:20,519
Speaker 1: they were able to sell them for less expensive prices

1272
01:16:20,560 --> 01:16:24,280
Speaker 1: than what Apple was demanding. So Apple ended up undercutting

1273
01:16:24,320 --> 01:16:27,880
Speaker 1: its own sales because it authorized these other users. These

1274
01:16:27,880 --> 01:16:35,360
Speaker 1: other manufacturers to make Macintosh compatible computers. So why would

1275
01:16:35,439 --> 01:16:37,880
Speaker 1: you go and buy what appears to be an overpriced

1276
01:16:37,920 --> 01:16:40,439
Speaker 1: machine from Apple if you can go to one of

1277
01:16:40,439 --> 01:16:45,040
Speaker 1: its competitors and buy a comparable machine for much less money.

1278
01:16:45,320 --> 01:16:48,040
Speaker 1: If you are a consumer or a business, it makes

1279
01:16:48,080 --> 01:16:50,320
Speaker 1: more sense to go the other route, to go the

1280
01:16:50,400 --> 01:16:54,519
Speaker 1: cheaper route. As long as you're reasonably sure that the

1281
01:16:54,560 --> 01:16:57,200
Speaker 1: machine is a good one, that's what you're gonna do.

1282
01:16:57,240 --> 01:16:59,600
Speaker 1: And in fact, that's what Apple saw. They saw a

1283
01:16:59,600 --> 01:17:02,880
Speaker 1: lot of consumers going to these competitors rather than going

1284
01:17:02,920 --> 01:17:06,439
Speaker 1: to Apple. Now, one benefit was that they had a

1285
01:17:06,479 --> 01:17:11,519
Speaker 1: lot more people buying into the Apple ecosystem, But because

1286
01:17:11,560 --> 01:17:15,439
Speaker 1: Apple wasn't controlling that hardware, they weren't seeing any money

1287
01:17:15,479 --> 01:17:18,519
Speaker 1: off of it, besides that initial licensing fee that they

1288
01:17:18,640 --> 01:17:24,040
Speaker 1: charged companies in order to produce these clones. So in

1289
01:17:24,080 --> 01:17:27,920
Speaker 1: the long run it ended up hurting Apple. It was

1290
01:17:28,320 --> 01:17:31,840
Speaker 1: hurting their sales, although it did mean that more people

1291
01:17:31,880 --> 01:17:35,160
Speaker 1: were getting familiar with the Macintosh program and the Macintosh

1292
01:17:35,200 --> 01:17:40,400
Speaker 1: platform because suddenly they could afford a Macintosh, even though

1293
01:17:40,400 --> 01:17:44,120
Speaker 1: it wasn't an official Apple Macintosh.

1294
01:17:44,320 --> 01:17:46,679
Speaker 2: This is one of those decisions.

1295
01:17:46,080 --> 01:17:50,240
Speaker 1: That Apple executives today probably look back on and shake

1296
01:17:50,320 --> 01:17:53,879
Speaker 1: their heads and mumble about it, because it really affected

1297
01:17:53,920 --> 01:17:57,439
Speaker 1: profits over at Apple. By nineteen ninety six, Apple was

1298
01:17:57,479 --> 01:18:00,160
Speaker 1: looking for the next generation of operating systems because in

1299
01:18:00,360 --> 01:18:03,160
Speaker 1: didn't work out. So they said, we need a next

1300
01:18:03,200 --> 01:18:06,800
Speaker 1: generation operating system. Our system series is starting to show

1301
01:18:06,800 --> 01:18:10,320
Speaker 1: its age. We need a new operating system. But to

1302
01:18:10,439 --> 01:18:12,799
Speaker 1: spend the money in time to develop an in house

1303
01:18:13,280 --> 01:18:15,800
Speaker 1: is not really practical. So they started looking outside the

1304
01:18:15,800 --> 01:18:18,599
Speaker 1: company and saying, well, what else is out there that

1305
01:18:18,640 --> 01:18:23,680
Speaker 1: maybe we could acquire and then use in future Macintosh computers.

1306
01:18:24,920 --> 01:18:28,599
Speaker 1: They looked at two different companies, and here's the funny thing.

1307
01:18:29,280 --> 01:18:34,200
Speaker 1: Each of those companies was founded by a former Apple executive.

1308
01:18:34,880 --> 01:18:40,640
Speaker 1: The first company was B Incorporated. That's b Inc. And

1309
01:18:40,720 --> 01:18:45,360
Speaker 1: they created the BOS or BOS if you prefer. This

1310
01:18:45,479 --> 01:18:49,920
Speaker 1: company was founded by Jean Louis Gassa, so remember the

1311
01:18:49,960 --> 01:18:52,400
Speaker 1: head of product development from a few years ago who

1312
01:18:52,479 --> 01:18:57,920
Speaker 1: stepped down. The other big contender was next Step, the

1313
01:18:57,920 --> 01:19:00,599
Speaker 1: next Step operating system, which was from a company called

1314
01:19:00,680 --> 01:19:04,759
Speaker 1: next and that company was founded by drum roll please

1315
01:19:06,520 --> 01:19:11,120
Speaker 1: Steve Jobs. So once again you had guess a versus Jobs.

1316
01:19:11,600 --> 01:19:15,200
Speaker 1: With the two operating systems that could potentially power the

1317
01:19:15,240 --> 01:19:21,360
Speaker 1: next generation of Macintosh computers. Now ultimately, spoiler alert, Apple

1318
01:19:21,400 --> 01:19:24,799
Speaker 1: decided that they would go with Next. They decided against

1319
01:19:24,800 --> 01:19:28,320
Speaker 1: bios and decided the next step was the operating system

1320
01:19:28,360 --> 01:19:31,880
Speaker 1: they wanted. So instead of setting up a licensing deal,

1321
01:19:32,160 --> 01:19:35,599
Speaker 1: they did something a little different. They didn't just license

1322
01:19:35,640 --> 01:19:40,880
Speaker 1: the technology from Next. They acquired Next. They spent a

1323
01:19:40,880 --> 01:19:44,679
Speaker 1: lot of money doing it too. They spent nearly four

1324
01:19:44,720 --> 01:19:48,519
Speaker 1: hundred and thirty million dollars on the purchase, and they

1325
01:19:48,520 --> 01:19:51,120
Speaker 1: threw in one and a half million shares of Apple

1326
01:19:51,240 --> 01:19:54,760
Speaker 1: stock as well. Now keep in mind Apple stock at

1327
01:19:54,800 --> 01:19:57,519
Speaker 1: this point was suffering, but it was one and a

1328
01:19:57,560 --> 01:20:00,280
Speaker 1: half million shares. If they could turn things around, and then,

1329
01:20:00,320 --> 01:20:03,839
Speaker 1: spoiler alert, they totally did that, million and a half

1330
01:20:04,040 --> 01:20:08,320
Speaker 1: shares of Apple would be worth way more money. So

1331
01:20:08,479 --> 01:20:10,680
Speaker 1: Steve Jobs came along as part of this part of

1332
01:20:10,680 --> 01:20:13,960
Speaker 1: the deal, They essentially bought Steve Jobs back to Apple

1333
01:20:14,200 --> 01:20:16,600
Speaker 1: because he was the founder of Next and he was

1334
01:20:16,640 --> 01:20:19,280
Speaker 1: part of that company, so they acquired the company. Steve

1335
01:20:19,360 --> 01:20:23,120
Speaker 1: Jobs comes on, so he would return to Apple in

1336
01:20:23,200 --> 01:20:26,880
Speaker 1: nineteen ninety seven after a very long hiatus or as

1337
01:20:26,960 --> 01:20:31,320
Speaker 1: he might refer to it as banishment, and he returned

1338
01:20:31,360 --> 01:20:34,800
Speaker 1: initially as a consultant, but Apple was reeling. The stock

1339
01:20:34,880 --> 01:20:35,679
Speaker 1: price had hit.

1340
01:20:35,600 --> 01:20:38,439
Speaker 2: A twelve year low, and the board of.

1341
01:20:38,400 --> 01:20:43,000
Speaker 1: Directors had decided eventually that they needed to replace gil Emilio.

1342
01:20:43,479 --> 01:20:45,880
Speaker 1: And in fact, there was one person who was really

1343
01:20:46,000 --> 01:20:50,040
Speaker 1: arguing for this, and that person was a Steve Jobs.

1344
01:20:50,840 --> 01:20:53,160
Speaker 1: So Steve Jobs goes to the board directors and says, hey,

1345
01:20:53,200 --> 01:20:56,080
Speaker 1: you are in real trouble. The decisions that have been

1346
01:20:56,160 --> 01:20:58,280
Speaker 1: made over the past few years have been disastrous for

1347
01:20:58,320 --> 01:21:00,679
Speaker 1: this company and they are leading it to the brink

1348
01:21:00,760 --> 01:21:01,600
Speaker 1: of bankruptcy.

1349
01:21:02,160 --> 01:21:04,200
Speaker 2: You got to get rid of gill Emilio. And the

1350
01:21:04,240 --> 01:21:04,519
Speaker 2: board of.

1351
01:21:04,520 --> 01:21:07,439
Speaker 1: Directors agreed and they put Steve Jobs in charge as

1352
01:21:07,560 --> 01:21:11,759
Speaker 1: interim CEO. But that's that's what and last Steve Jobs

1353
01:21:11,800 --> 01:21:15,920
Speaker 1: would eventually become the actual CEO, not just an interim CEO,

1354
01:21:16,680 --> 01:21:19,320
Speaker 1: and would end up taking control of the company he

1355
01:21:19,360 --> 01:21:21,400
Speaker 1: had co founded a.

1356
01:21:21,360 --> 01:21:22,479
Speaker 2: Couple of decades earlier.

1357
01:21:23,479 --> 01:21:26,720
Speaker 1: And uh yeah, it was a total different story for

1358
01:21:26,800 --> 01:21:30,439
Speaker 1: Apple from that point forward. But that's the tale for

1359
01:21:30,520 --> 01:21:35,000
Speaker 1: another episode. All right. That concludes this text of classic

1360
01:21:35,040 --> 01:21:39,200
Speaker 1: episode The Macintosh Story Part two. Next Friday we will

1361
01:21:39,240 --> 01:21:40,400
Speaker 1: continue with part three.

1362
01:21:40,600 --> 01:21:42,880
Speaker 2: Then we'll be all up.

1363
01:21:42,720 --> 01:21:46,280
Speaker 1: To date as of twenty seventeen, and nothing's happened since then, Right,

1364
01:21:46,360 --> 01:21:49,760
Speaker 1: so we're good. I'm kidding, of course, but I hope

1365
01:21:49,760 --> 01:21:52,120
Speaker 1: you enjoyed this classic episode, and I'll talk to you

1366
01:21:52,160 --> 01:22:02,760
Speaker 1: again really soon. Tech Stuff is an iHeartRadio production. For

1367
01:22:02,880 --> 01:22:07,720
Speaker 1: more podcasts from iHeartRadio, visit the iHeartRadio app, Apple Podcasts,

1368
01:22:07,840 --> 01:22:09,839
Speaker 1: or wherever you listen to your favorite shows.