Steve Jobs: The Man in the Machine (2015)

[bunniefuu]

After hours of getting this thing right...

God, look at that. Look, I'm on television.

Hey! Isn't that amazing? Yeah, it is.

You're on TV in New York, too. What's that?

You're on TV in New York, too. No, no.

Yes, you are. Am I really? Are you serious?

Yeah, they got you in New York. God.

I'm gonna let you put it in your own ear.

Really? It's a talk back.

They're going to talk to you. This is not the real thing, right?

You just want a picture of me now?

They're going to sit you here first. God.

You need to tell me where the restroom is, too, cos I'm deathly ill, actually, and ready to throw up at any moment, so...

It's right across the hall. Great. I'm not joking.

We're ready to go, gentlemen. New York's waiting for a shot of him.

If you see in my eyes, I've been crying just a little bit.

And it seems really ridiculous because I've never met the man.

I know life is ephemeral, but I just, you know, I expected him to be around a little longer.

Pretty sure everybody did, but, you know...

The thing I'm using right now, an iMac, he made.

He made the iMac. He made the Macbook.

He made the Macbook Pro. He made the Macbook Air.

He made the iPhone. He made the iPod.

Yeah, he's made the iPod Touch. He's made everything.

Hey, Mr Tambourine Man Play a song for me I'm not sleepy And there's no place I'm going to Hey, Mr Tambourine Man Play a song for me In the jingle jangle morning I'll come following you It's not often that the whole planet seems to feel a loss together, but after the death of Steve Jobs, co-founder of Apple and singular dreamer, all day, we watched as there was a kind of global wake.

On Facebook, millions changing their profiles to the Apple logo.

A kind of black armband, a gesture of gratitude.

We've been monitoring the hashtag "thankyousteve."

My favorite tweet last night was four simple letters simply saying, "iSad."

Hi.

When Steve Jobs died, I was mystified.

What accounted for the grief of millions of people who didn't know him?

I'd seen it with John Lennon and Martin Luther king, but Steve Jobs wasn't a singer or a civil-rights leader.

Many commentators were surprised by the intensity and the power of this wave of emotion.

What was it? And I think it was truly love.

Jobs has proven to be the one and only person in the world who can create technology products that people love.

Wall-E.

I love "Wall-E," a film Jobs's Pixar produced, and I love my iPhone, but the grief for Jobs seemed to go beyond the products he left behind.

We mourned the man himself, but why?

Behind the scenes, Jobs could be ruthless, deceitful and cruel.

Yet he won our hearts by convincing us that Apple represented a higher ideal.

It was not like other companies. It was different.

Good morning and welcome to Apple's 1984 annual shareholders' meeting.

I'd like to open the meeting with part of an old poem, about a 20-year-old poem, by Dylan. That's Bob Dylan.

"Come writers and critics who prophesize with your pens and keep your eyes wide, the chance won't come again."

"And don't speak too soon for the wheel's still in spin and there's no telling who that it's naming."

"For the loser now will be later to win, for the times, they are a-changing."

Jobs loved Dylan maybe because he wasn’t just one thing.

He was a storyteller who could be whatever we wanted him to be.

I don't even what know what All Along The Watchtower means.

I think it is one of the most beautiful, haunting, brilliant pieces of poetry ever. And to me, it's like Steve.

"There must be some way out of here, said the..."

What is it?

Said the Joker to the Thief.

He's both.

"There must be Some way out of here"

Said the joker to the thief There's too much confusion I can't get no relief Businessmen, they drink my wine Plowmen dig my earth None of them along the line Know what any of it is worth

There's something going on here in life beyond just a job and a family and career.

There's another side of the coin.

It's the same thing that causes people to want to be poets instead of bankers.

And I think that that same spirit can be put into products.

And those products can be manufactured and given to people, and they can sense that spirit.

A computer is a straightforward, everyday machine.

A simple way of studying the principle of how it works is that a computer is quite dead.

It can do nothing without someone to give instructions.

When I was growing up, computers weren't something to love.

They were something to fear.

They were huge, impersonal, made by faceless corporations.

But for Jobs, it was different.

I saw my first computer when I was 12 at NASA.

We had a local NASA center nearby. It was a terminal, which was connected to a big computer somewhere.

This is one of the consoles they might be using in the future.

It looks very much like just a regular typewriter.

Too often the equipment of the past has sort of been designed for other machines.

They're really not for people.

I saw my second computer a few years later, the Hewlett-Packard 9100.

The 9100 computing calculator.

It was very large. Had a very small cathode ray tube on it for display.

And I got a chance to play with one of those maybe in 1968.

I started going up to Hewlett-Packard's Palo Alto research lab every Tuesday night, and I spent every spare moment I had trying to write programs for it.

I was so fascinated by this.

We have a pointing device called a mouse.

I don't know why we call it a mouse.

By 1968, Stanford's Doug Engelbart, inventor of the mouse, was asking new questions about the essential nature of our changing relationship with computers.

If in your office, you as an intellectual worker were supplied with a computer display backed up by a computer that was alive for you all day and was instantly responsible, responsive, instantly responsive to every action you had, how much value could you derive from that?

We needed a guide to help us navigate this new relationship.

My whole adult life has been spent building personal computers.

So, the history of my vocation and my avocations and, you know, my growing up are all the same, and it's very hard to separate one from the other.

I come from a place called Silicon Valley, California, and you'll find there are a lot of electronics kits around.

My electronics teacher realized that I had a lot of computer ability that went beyond anything he could possibly teach me in school.

He knew that as long as I was in class, I was just going to sit around, playing pranks on the other students like wrapping little hair wires around certain circuits so when they plugged in their radio, it would blow up.

As hard as I think about it, I don't think I ever had one friend who was not one of the tech kids.

I met Woz when I was maybe 12 years old, 13 years old.

He was the first person I met that knew more electronics than I did.

And one of the things that Woz and I did was we built blue boxes.

One day I picked up a magazine, and I started reading a story about phone phreaks and blue boxes.

When phone phreaks have a convention, as they did in the ballroom of a seedy New York hotel lately, masks are given out at the door. People don't give their right names.

The blue box was a little device that put special tones into anybody's phone and those tones would connect you anywhere you wanted.

Halfway through reading this, I called Steve Jobs over and started reading it to him over the phone.

There's a way to fool the entire telephone system into thinking you were a telephone computer and to open up itself and let you call anywhere in the world for free.

You could call from a pay phone, go to White Plains, New York, take a satellite to Europe.

And you'd go around the world and call the pay phone next door.

Shout in the phone, be about 30 seconds, it'd come out the other end of the other phone.

And he's like, "Hello," There's a lag and, "Hello, how are you?"

"I'm fine." You know?

Why, one might wonder, would someone want to do that?

To rip off the phone company.

And these were illegal, I have to add.

In college, I had a blue box of my own. It was important because long-distance phone calls were really expensive back then.

It was also a way of sticking it to the man.

This would become an important selling point for Jobs, too, even as he left the technical work to others.

Well, I had this blue box design.

I did a trick in there that I've never done that good a trick in any other design in my life.

And Steve Jobs said, "Hey, why don't we sell them?"

You know, you rapidly run out of people you want to call, but it was the magic that two teenagers could build this box for $100 worth of parts and control hundreds of billions of dollars of infrastructure in the entire telephone network in the whole world.

We could sort of influence the world, you know?

Control it, in the case of blue boxes, but something much more powerful than controlling.

Influencing, in the case of Apple. And they're very closely related.

I really do, to this day, feel that if we hadn't had had those blue box experiences, there never would have been an Apple computer.

I think Jobs was always a storyteller.

There was always this sense that he was constructing a persona.

The first time I sat down with him to work on a story, he immediately asked me if I had read Thomas Kuhn's "The Structure of Scientific Revolutions."

I think he was assimilating into this personality, this notion that he had found in Kuhn.

The random result that eventually creates a paradigm shift where everybody one morning wakes up, and they think the new way.

And I believe that he thought that he was a paradigm shifter.

That was part of his story. He wanted to have a foot in both worlds.

He wanted to be the renegade, but he also wanted to be legit.

This is the video deposition of Steven P Jobs.

We are on the record at 9:22am.

Can we just sort of briefly go over your employment history after 1973?

I was employed by Atari, a maker of video games.

What time frame? I don't know. Early '70s.

Creativity is a lot about anarchy.

I had been in the video-game business two years and our corporate culture was really "work hard, play hard."

The true original sin of Apple literally takes place before the company is founded.

Jobs had left Reed College and now he was back in Silicon Valley.

Woz was working at HP.

I was such a nerd.

When I finished designing calculators at Hewlett-Packard in the daytime, I would work on my own little projects.

I saw "Pong" in a bowling alley, and I said, "I know logic design, and I know electronics of televisions."

"I'll use my home TV, snake a wire in," and I built myself a "Pong."

Steve came back from Reed College and saw that I had built my own Pong game.

And so that gave him the idea to go down to Atari.

And he went down, and he showed them the board and he wound up with a job.

Steve came in and said, in typical Steve Jobs fashion, "I'm not going to leave until you hire me."

And I really appreciated his intensity. He had one speed. Full on.

I had one little project that everyone kept turning down.

It was a project called "Breakout."

And finally I said, "Steve, hey, do this for me."

In the back of my mind, I knew that Woz was coming over all the time after working at HP all day, and I thought, "OK, I'll put Steve on the night shift."

"Woz will come over. I'll get two Steves for the price of one."

Steve said, "Nolan Bushnell of Atari wants another game built."

But we only had four days, Steve said.

When a game is made out of chips and it's not a program, four days is, like, impossible. This is months' worth of work.

I did the entire design, and then Steve would breadboard my design for a little while.

We were up four days and nights non-stop. Both got mononucleosis.

And we got "Breakout" delivered to Atari, and they paid for it.

Later on, Woz and I were out to dinner.

He was talking about Breakout, and I said, "Well, you know, you guys got paid pretty well for it."

He looked at me puzzled, and I said, "Yeah, I mean, you did such a good job."

"I think there was at least a $5,000 bonus that you guys got."

So, yeah, he was paid $7,000, and he told me that we were paid $700, and he wrote me a check for $350.

You know, and that hurts because we were friends.

And do you do that to a friend?

If he'd said, "I need the money," I would have said, "Take it all."

I was happy to be on the project.

I think that Steve...

...was very driven and would very often take shortcuts to achieve his goals.

Then in time we'll tell who has fell And who's been left behind When you go your way And I go mine

Apple was a sitcom. It was a 30-year sitcom.

And Steve was the main character.

This was written in December 1976.

In fact it starts out saying, "Who's Apple," so that was very early.

He and Woz came in. Steve had long hair down his back.

He had a Ho Chi Minh beard, cutoffs, Birkenstocks.

And Wozniak was maybe a little bit upscale from that, but not much.

I used to like Intel's advertising, So I called them up one day, and I said, "Who does your advertising?"

They said, "Well, Regis McKenna." "What's a Regis McKenna?"

They said, "No, it's a person."

Wozniak had a technical article on the Apple II.

He wanted us to try to get it placed into a magazine.

Nobody could read it. It was all technical jargon and so forth.

And so I told him I'd have to rewrite it, and he wasn't happy about that.

He said, "No one's going to rewrite my stuff."

I said, "Well, then there's nothing I can do for you, so you might as well leave."

Steve called back, and he pretty much convinced me that he would be the person that we'd be dealing with and that Wozniak would be designing and building things, which is the way it happens in most businesses.

The engineers are more back room and you work with either the entrepreneur or the marketing people.

Did you think early on that Steve could be the guy?

Oh, definitely. You just had to spend a few minutes with him and you knew it.

He had the ability to talk about the possibility of what this computer could be.

And I think the key is not just talking about the product, but giving you an idea of what is possible using this product and what the next generation is going to be like.

So he gives people this feeling of forward movement.

How many calculators do you own? Two, maybe.

Right, and do you use the a*t*matic bank-telling machines?

Sure. Life is already seducing you into learning this stuff. It's not going to happen at once, and it's certainly not a 1984-ish vision at all.

It's just going to be very gradual and very human and will seduce you into learning how to use it.

Transitioning from a hobby to a personal computer, that whole idea was driven by Steve.

He was trying to say we need to differentiate ourselves and really move out of this hobbyist realm.

It ended up coming out of the room saying, "We're going to call ourselves the personal computer."

Industry experts say we're no longer on the verge of the personal computer revolution.

We're right in the midst of it, thank you.

And it's gathering steam with more and more people jumping aboard every day.

I use my computer right now for mostly word processing.

I use it for solar evaluation programs.

We put our entire accounting system on it.

The wife can use it to store recipes.

To balance my checkbook for me.

We do the computer club's bulletin.

Playing games. Shopping by mail.

Budgeting. Bowling-league type scores.

Electronic mail. A guy can be creative on it.

I mean, he can use it for whatever he can dream up.

This is a 21st-century bicycle that amplifies a certain intellectual ability that man has.

The effects that it's going to have on society are actually going to far outstrip even those that the petrochemical revolution has had.

Time magazine, I think, said single-handedly he created the industry because he was relentless.

The powers that be of "Time" magazine decided that they would make the Man of the Year that particular year the Computer of the Year.

I was transferred to the bureau in San Francisco.

And gradually I began to cotton on to the fact that there were a lot of stories in this part of California between San Jose and San Francisco about these odd, little companies that people on the East Coast at that point hadn't heard about and really didn't care about.

And then I got very interested in Apple and Steve was, of the early characters in the company, the most articulate and the most interesting and the oddest.

Steven Jobs helped build the first Apple computer in his garage.

He is now 26 years old and is chairman of the board.

There was some debate over whether or not they should use the name "Apple."

You know, the whole model of the computer industry and the computer business was IBM.

Another business service of tomorrow made possible today by IBM.

IBM was an anonymous organization.

No one knew who the president was. They probably had no idea.

The IBM logo looked like it was carved out of Roman marble, you know?

It was just this monolithic kind of thing.

And we took just the opposite, which was, "Let's make Steve very high profile. Let's tell our story."

Working in this garage, Jobs and a high-school classmate quit their positions at large electronic companies, and using tiny silicon chips, built this small computer board.

Funny, the garage story was less of a feature in those early days.

It later on became more of a look back when people started doing stories on the background, and so forth.

You know, I told Steve this, and most of my clients in fact, there's a song in Fiddler on the Roof that Tevye sings.

He says, "If I were a rich man." And he said, "I'd sit in the temple, and I'd lecture to the wise men all day long, and it wouldn't matter if you're right or wrong."

"When you're rich, they think you know."

So, in a technology business, you have to show that you are successful in order to have a platform.

It led to a quarter-billion-dollar business and the most popular typewriter-sized computer on the market today.

Steve Jobs, I realize this is your baby, and you've made a career out of it, but you're also something of a philosopher.

Do you see the inherent possibility of bad coming out of all of this?

Well, I think one of the things you really have to look at is you have to go watch some kids using these things.

And what you find is far from something quite harmful.

In effect, what you see is an instantaneous reflection of a part of themselves, the creative part of themselves being expressed.

He was going for a computer that really felt like an extension of the self.

That's what people wanted, and I think he sensed that. He knew that.

My first book on the computer culture was called "The Second Self."

The key quote that gave me the title was, "When you think of a computer, you put a little piece of your mind into the computer's mind, and you come to think of yourself differently."

Our whole company, our whole philosophical base, is founded on one principle. And that one principle is that there's something very special and very historically different that takes place when you have one computer and one person.

Did you have an opportunity to meet Jobs?

Yes, I met him on several occasions.

And did you sense from talking to him that he really did understand what he was doing?

I think he understood what he was doing.

He knew he had created something intimate and that could be sold as something intimate.

And it would be you. I mean, it would be for you.

It wasn't just for you. It was you.

Can you just show me the front of it?

That's the part that most people would recognize.

This is a piece that everybody remembers from the ads, from the Time magazine cover with Steve holding it in his lap.

And this is the famous beige that we're never going to have any more of.

He hated this even at this time, but we were kind of stuck with it by the time we got there.

It was a fun little machine.

He called me just out of the blue. I was working at Xerox.

And I picked up the phone, and it was Steve Jobs.

And he said, "I hear you're a good guy, but everything you've done so far is crap. Come work for me."

I told my wife at the time. I said, "Well, what could happen?"

"How bad could this be?"

I didn't realize how bad it could be.

First trip Steve ever made to Japan was to see what we could do about getting a disc drive for the machine.

And we saw the Sony disc facility in Atsugi, Japan.

He had a lot of affection for Sony because the Walkman was a machine that he just thought was the bee's knees.

You really feel the music with a Sony Walkman The Sony Walkman is a tiny stereo cassette player with truly incredible sound.

You really feel the music You really feel it I think it was the first product in human history that went over a billion units. That he liked.

One of things that Steve thought was important, and Jerry Manock facilitated it, was this is where all the signatures are.

And they're all the people, the original group, that actually signed the machine. There's Steve Jobs right in the middle.

My name is over here.

Why did you do that?

Because the people that worked on it consider themselves, and I certainly consider them, artists.

These are the people that under different circumstances would be painters and poets, but, because of the time that we live in, this new medium has appeared in which to express oneself to one's fellow species.

And that's a medium of computing.

We would sit in the temples in Kyoto, just taking off our shoes at the door and sitting.

Did he take from that any kind of aesthetic vision, do you think?

I think certainly. A simplicity.

Just feeling that inner calm that's so available at some places in Japan.

He was a very much a person who was comfortable in silence.

Steve ruled by a kind of a chaos. And it's easy to make chaos, and if you're comfortable with it, you can use it as a tool.

And he used a vast number of really irritating tools to get other people involved in his schemes.

He's seducing you, he's vilifying you and he's ignoring you.

You're in one of those three states.

When you get a core group of, you know, ten great people, it becomes self-policing as to who they let into that group.

So, I consider the most important job of someone like myself is recruiting.

Steve Jobs brought us all together in a place that had no rules.

He's a maniac. He's a maniacal genius. His job is to stir up everything.

Most places in life are continuously telling you that your dreams aren't possible or practical.

You don't want to hear that when you're under 30.

What you want to do is race after them.

You ask yourself, why are you doing it?

I'm certainly not doing it for Steve Jobs.

I'm doing it for what I think is a much greater good than that.

Everybody just wanted to work, not because it was work that had to be done, but it was because it was something that we really believed in.

Here is how we see personal computers. Here is how we want the world to be.

And here's how we're going to change it.

We have a vision of what we want it to be.

We want to convert people. We want to make converts.

I felt my job at Macintosh was to make the division work smoothly enough that we could actually get this thing from really a mess of kids playing around with a bunch of hardware and software into something that would be a commercial product.

And that's what I did. I got that machine finished.

It is now 1984.

IBM became the apparent visible threat.

IBM wants it all, and is aiming its g*ns on its last obstacle to industry control. Apple.

Will Big Blue dominate the entire computer industry?

The entire information age? Was George Orwell right?

Today, we celebrate the first glorious anniversary over the information purification directives.

That ad was again a juxtaposition with IBM.

- That's what it was about. - Yeah.

The people in the audience were mindless IBM users.

Yes. You know, for Steve it was great because he had this bad guy/good guy, and he loved playing that role.

We shall prevail!

Looking back, behind the scenes, it's easy to see the irony in the ad.

Today, Apple is Goliath.

Rolling. Rolling.

But even in 1984, when Apple cast itself as the counterculture company, working at Apple was a lot tougher than IBM.

I think if you talk to a lot of people on the Mac team, they will tell you it was the hardest they've ever worked in their life.

Some of them will tell you it was, you know, the happiest they've ever been in their life, but I think all of them will tell you that it is certainly one of the most intense and cherished experiences they will ever have in their life.

Mm-hmm. Yeah, they did. So...

You know...

Some of those things are not sustainable for some people.

I ended up changing my entire life.

I lost my wife in that process.

I lost my children in that process. I lost...

The whole structure of my life was just changed forever by going and working on the Mac.

Because the work became so intense?

The work was intense.

The commitment needed to do it was intense.

I would go into work on a Tuesday morning and half the people would hate me, and I'd come back on Wednesday morning, and half the people would hate me, but it was the other half.

There were an awful lot of prima Donnas in that outfit, so I was always in conflict.

Here's the piece you wrote. You want to read it?

"Steve's passing did come as a bit of a shock for me."

"For a bit more than three years, 1982 to 1985, we were together a lot of the time."

"We made a dozen trips to Japan together. We were close."

"After that, I only saw him a few times."

"I haven't seen him in many years."

"He was an extraordinary person in many ways and quite normal in others."

"The outpouring of feelings from people all over the world was a bit of a surprise to me at first, and then it seemed natural."

"He was for them a combination of James Dean, Princess Diana and John Lennon and maybe Santa Claus."

"What is in that bag of goodies?"

"The iPod, the iPhone and the iPad are so personal."

"They are warm in your hand. They sing to you when you're alone."

"They are caressed."

"In those three years together, I packed in a decade or two of experience."

"Steve packed in a couple of centuries in his 56 years."

"He did everything he wanted, and all on his own terms."

"It was a life well and fully lived, even if it was a bit expensive for those of us who were close."

You do have friends, you know?

Even if they're bizarre people.

Yes. He is. He's one of those mythic characters.

Yeah, and they're not that much fun on the ground most of the time, but there are those moments when suddenly...

They're the only person who could've ever done it.

Right.

Yeah, and they change us. Right.

Without death, there would be very little progress.

I'm sure that life evolved without death at first and found that without death, life didn't work very well.

Because it didn't make room for the young who didn't know how the world was, you know, 50 years ago, but who saw it as it is today without any preconceptions and dreamed how it could be based on that.

The minute that you understand that you can poke life, you can change it, you can mold it, you'll want to change life and make it better cos it's kind of messed up in a lot of ways.

Once you learn that, you'll never be the same again.

Just be here.

Don't judge, don't try, don't stop, don't start. Just be here.

It's all just enough.

It's enough to know that I love you.

Steve and I met two weeks into our freshman year at Reed College.

We had both happened to buy "Be Here Now."

And it was such an unusual book. I just wanted...

I was carrying it around and wanted somebody to talk to about it, and Steve was the one person who also had read it.

When we went to India, we were looking for remarkable experiences.

We didn't have a guru. We didn't have a particular school.

And so we traveled around for four months.

Had some interesting experiences. No major enlightenment experiences.

Steve's quote later was, "We had figured out that we weren't going to meet somebody who was going to make us enlightened."

If you think about Hindu spirituality, you think of Mother Teresa feeding the poor.

That's not really the path that Steve took.

Those weren't Steve's values.

It was the next year, after India, when he connected with the Zen Center in Los Altos.

Zen is about clarity, simplicity, cleanliness.

Ending the duality of your ego and simplifying your life.

And that really appealed to Steve.

It's based on taking off and creating something for yourself.

You know, giving life to your own life in whatever way you wish to do it.

At the time he was starting Apple, Steve was very actively looking for a mentor.

Kobun Chino would become Jobs's spiritual advisor.

Kobun encouraged Jobs not to retreat into a monastery, but instead to find Zen in his life and work.

But they would argue over the path to enlightenment.

Steve always says, "Make me monk. Please make me monk."

I say, "Not until proof."

When I was living in California, 23 years ago...

Midnight...

I answered the doorbell and there he is.

18 years old, he was.

And he wanted to see me.

And I looked into his eyes, and...

They looked terrible, but he is not crazy.

I must talk with him.

I took him for a walk through the downtown of Los Altos.

All stores closed.

One bar called The Teacup was open.

We sat down at the counter.

I had Irish coffee and he had juice.

After sipping, he started to talk.

He said, "I feel I'm enlightened."

"I don't know what to do with this."

That's wonderful. That is very wonderful.

I need proof of it.

A week later he came back with a little metal sheet in his hand.

Many things were going, wires going around...

I didn't know what it was.

It was a chip of a personal computer.

He said, "I designed it. My friend Woz helped me."

"This is called Lisa."

"I named it Lisa."

Which is the name of his daughter.

That was the origin of Apple Computer.

And I'm still not quite sure that was a true proof or not.

He's brilliant, but too smart, I think.

When you broke the Lisa story, why was that important?

There was a computer called "Lisa."

And everybody wondered who the computer was named after.

I didn't choose to name the computer "Lisa."

I was obviously curious about why it was named "Lisa".

Fair or unfair, I think that was, to me, that was a germane part of the story.

With your mercury mouth In the missionary times And your eyes like smoke I was 17, sitting in the quad.

Early spring, warm and cold at the same time.

And I look over, and there's this guy I have never seen.

I've been there for three years. I can't believe how gorgeous he is.

And he starts to walk out of the quad, and I followed him cos I thought, "I've got to introduce myself to him."

And I'm going, "What do I say?" I had no idea what to say.

A few months later, I was working on a film.

We worked all night long, and he walks up out of the dark.

He was confident and awkward. He was a study in contrasts.

And he had jeans on that drooped because they had so many holes in them.

And he was very intentional, very intense.

And then he handed me a poem by Bob Dylan.

"Sad-Eyed Lady of the Lowlands."

He would re-write Dylan's songs to fit his life.

And then he... he just scanned the quad and the darkness that went over his face...

The edge, the worry, the dissonance, was shocking to me.

And I was young enough where I thought, "Did I say something wrong?"

But later I realized that wasn't what it was.

That was part of who he was.

And I mean, that was one of the things that I was attracted to, is that he had a lot going on inside him.

Steve was a romantic, and he really loved Chrisann.

I think she was a seductive force in his life, and there was a part of Steve that didn't want to push that away.

But the main thing in Steve's life, number one, was getting Apple off the ground.

And he just really could not focus on anything else.

I came out in June of '77, and the three of us went and rented a house in Cupertino.

Apple is beginning. Steve and I are falling in love again.

But we're going back and forth big time now.

It's just like I'm insecure because he's so unkind, and then we connect.

But I don't know how to handle how fast Steve's mind is and how fast he throws negative stuff at me.

And by the time I figure out, "I've got to get out of here..."

Um...

"This is not working."

Um... "I don't want to be in their club, Daniel's or just even with Steve."

"It's just not working." That's when I got pregnant.

What happened when you told Steve that you were pregnant?

Um...

I told Steve in the dining room.

Steve's jaw clenched.

And searing anger...

And he runs out the door, kind of like a teenager, slams the door.

She got pregnant.

And Steve just was, "Not... not... not me."

"It's not me. It's not me," right?

Even though that was not a reasonable thing to say.

After Lisa was born, Steve came up three days later.

And we're sitting in a field, and he...

We're like, trying to negotiate...

...what name we both feel good about for her.

He knows he's the father.

He comes with the idea of wanting to call her Claire, and I don't want Claire because it's too much like Clara, his mother's name.

So, we're looking through the book, and we're thinking and going back and forth, trying different names, and finally I go, "Lisa!"

He said, "Yeah!" We both loved that name.

But later I realized he wanted to name a line of computers or the next computer the "Claire."

I only knew this later.

He went back to Apple and changed it to the "Lisa."

It says a lot about somebody that they would have the wit, the imagination, the audacity, to name a computer in the fashion that Steve named this and believe that you're going to be able to get away with it.

That is the sort of very telling anecdote that helps illuminate somebody's personality.

My biological mother was a young, unwed graduate student, and she decided to put me up for adoption.

So, everything was all set for me to be adopted at birth by a lawyer and his wife.

Except that when I popped out, they decided at the last minute that they really wanted a girl.

So, my parents, who were on a waiting list, got a call in the middle of the night, asking, "We've got an unexpected baby boy. Do you want him?"

They said, "Of course."

My biological mother found out later that my mother had never graduated from college and that my father had never graduated from high school.

She refused to sign the final adoption papers.

She only relented a few months later when my parents promised that I would go to college.

This was the start in my life.

You know, another paradox for him, you know, here's a guy, you know, being pissed off that he was left for adoption, and when he has a child, he wants to run the other way.

Yes, that's a huge paradox.

Even when I first met Steve, the fact that he was given up for adoption was a huge emotional issue in his life.

I was, I remember, right here on the lawn telling Lisa McMoyler, who lived across the street, that I was adopted, and she said, "So, does that mean your real parents didn't want you?"

Ooh, lightening bolt. I remember running into the house.

I think I started crying, asking my parents, and they sat me down.

They said, "No, you don't understand."

They said, "We specifically picked you."

That was clearly a very defining image in his life, both that he was rejected and that he was special.

The IPO was November 1980.

By the summer of 1980, it was clear it was going to happen, and so Steve's net worth was going to go from $10 million to around $200 million.

And I think he had the opportunity to completely reinvent himself.

In his reinvention, some people who helped him were left behind.

Woz had no taste for management, so he left Apple with a big stock package and a lifetime stipend.

Daniel Kottke had been one of Apple's first employees.

In the run-up to the IPO, an Apple executive offered to give Daniel the same amount of stock that Steve would give.

Steve replied, "Fine. I'll give him zero."

Jobs also saw an opportunity to rewrite his history with Chrisann.

He composed a fiction which implied she had many sexual partners, and he claimed he was sterile and therefore did not have the physical capacity to procreate a child.

A woman with a baby, and I was that threatening to them.

If he'd said, "I can't do this, but let me help because I can be practical here," that would have been...

...made for so much.

But it almost seemed that the point was to be out of integrity.

When a court-ordered DNA test proved Jobs's paternity, he stopped fighting Chrisann in court.

She was on welfare at the time, so Jobs reluctantly agreed to pay $500 a month in child support.

When Apple went public, he was worth nearly $200 million.

Steve is so hugely successful, and yet he treated so many people so badly.

How much of an assh*le do you have to be to be successful?

What is the moral of the story here?

Hello. I am Macintosh.

It is with considerable pride that I introduce a man who's been like a father to me. Steve Jobs.

He didn't know what real connection was.

So he was a part of the technology that connected the world.

Does that make sense?

He made up another kind of connection.

You know, I didn't sleep a wink last night.

There's a version of Steve Jobs presenting the iPhone where you can see his own feeling of "I love this object."

Isn't this awesome?

His stuff was beloved, but it wasn't that he was beloved.

He wasn't a nice guy.

First, he had a reputation as a womanizer, and then he had a reputation as sort of not caring about anybody and as being kind of a tough guy.

People are not connected to him because of his character.

That is not people's connection to him.

In Be Here Now by Ram Dass, one of the memories I still have after all these years was when someone goes into a state of enlightenment...

...but they do it while they're still attached to their ego...

They call that, as I recall him saying it, "the golden chain."

And that's what I feel happened to Steve.

He went into magnificence and into enlightenment, but he...

He just...

He blew it.

Steve Jobs blew it?

How many people in the world believe that?

He made products everyone loved.

He was the computer era's most successful entrepreneur.

How could anyone think he blew it?

The entrepreneur's a person who wants to shake things up, who wants to change things, who sees a better way of doing that.

But he or she tends to be a royal pain in the neck.

Apple computer has sued its co-founder and former chairman, Steven Jobs, to stop him from starting a rival company.

Jobs quit Apple last week in a bitter fight with his board and management.

So, Apple is reorganizing.

John Sculley is taking control from Steven Jobs.

Tell us about your departure from Apple.

Oh, it was very painful. I'm not even sure I want to talk about it. Um...

What can I say? I hired the wrong guy.

That was Sculley? Yeah.

And... he destroyed everything I'd spent ten years working for.

What did you do after you left Apple in 1985?

I started two companies.

One was started by buying the computer-graphics division of Lucasfilm.

We christened it Pixar.

Pixar was acquired by Disney.

I'm on the board of directors of the Walt Disney Company.

And the other was called NeXT.

From having left or been bounced from Apple, did he have a kind of a chip on his shoulder?

Was there some... Was this Steve in the wilderness?

I don't think he felt he was in the wilderness at all.

I think he felt he was on a path. He was on a mission.

Where are we going to?

In 1986, after he had left Apple and was in the process of starting this new company, "Esquire" convinced him to give a journalist a week of his time.

So, I basically spent that week with him, talked to him a lot, went to dinner, sat in on meetings, and got to see Jobs as he was at that moment in his life.

But, I mean, I agree that... Let me back up a bit.

So, somebody's got to say, "Here's what we can do, and we can make it happen, and here's the level of thing we can ship in 16 months."

And what I hear him saying is, "Well, anything more than a port of Mac author, forget it."

And boy, that just makes me smoke.

If he was in a meeting and somebody said, "Here's a great idea," and put the idea out there and he didn't like it, he'd just chop the person into mincemeat.

The problem I've got, though, is one, will everybody believe that the stake is in fact in the ground, and, secondly, when software comes back and says what they can do by summer or spring of '87, will they be telling us the truth?

Well, George, I can't change the world, you know.

What do you want me to do? What's the solution?

But you see, what we can learn is...

What I want is probably irrelevant.

I mean, there are certain realities here, both psychological and market, that are going to come into play, in my own personal judgment.

And I think this is a window that we've got. We've been given it.

And thank God we've been given it. Nobody else has done this.

It's a wonderful window. We have 18 months.

The article was about people who are maniacal about work.

And Steve Jobs was the most maniacal person I could think of, which is why I wanted to write about him.

You made the connection in that first piece a bunch of times, you know, the monk among priests.

What was the relationship between that extreme of working 24/7 and that monastic life?

I mean, he did seem to have that rather interesting dedication.

OK, so, a monomaniacal commitment to something is something that most people don't have.

And that, like the monk, requires you to kind of shed extraneous things, and Steve Jobs absolutely, positively had that.

Jobs talked about becoming a monk at this remote Zen temple where Kobun Chino had studied.

I wonder what he liked about the idea of it.

Was it the discipline of the monks? Their unwavering focus?

In meditation, Jobs loved inspecting his own mind and changing the way it worked.

He focused on the spirit of things and sought perfection in the machines he made.

But Kobun thought Jobs was missing the point.

A search for perfection would never bring him peace or harmony with those around him.

But maybe harmony is what Jobs was looking for in Japan.

He went there dozens of times, and not just for business.

He stayed in fancy hotels, not Zen temples, but right to the end, he kept going back.

After he met and later married Laurene Powell, he would take three of his four children there, including Lisa.

Jobs's relationship with Lisa remained full of conflict, but a few years before Jobs's death, Lisa wrote about a moment of peace.

I didn't live with him, but he would stop by our house some days, a deity among us for a few tingly moments or hours.

He was a more extreme vegetarian than my mother and I and sharp-focused.

One day, he spit out a mouthful of soup after hearing it contained butter.

With him, one ate a variety of salads.

He believed that great harvests came from arid sources.

Pleasure from restraint.

He knew the equations that most people didn't know.

Things led to their opposites.

But once, he took me with him on a business trip to Tokyo where we went to a sushi bar in the basement of the Okura hotel with its high ceilings and low couches, like a Hitchcock set.

He ordered great trays of unagi sushi, cooked eel on rice.

He ordered too many pieces, knowing we wouldn't be able to finish them, but that we didn't want to feel they would run out.

It was the first time I'd felt, with him, so relaxed and content over those trays of meat.

The excess, the permission and warmth after the cold salads meant a once inaccessible space had opened.

He was less rigid with himself, even human under the great ceilings with the little chairs, with the meat and me.

But the event was not self-sustaining. We went back home to salads.

They satisfied me less now that I knew the alternative.

What eventually happened to NeXT? Apple purchased it.

OK, when? I believe 1997.

When Apple bought NeXT, Apple was pretty messed up.

It was pretty easy to see.

Apple Computer, a pioneer in the personal computers and software business, has fallen on hard times.

Over a three-month period, Apple's profits plunged by more than $50 million.

With big losses in the last quarter, with profit margins shrinking, Apple seems destined for a takeover.

Steve Jobs co-founded Apple with Steve Wozniak, and on Friday, Apple went to the well once again, bringing Jobs back as a consultant, writing one of the most unlikely chapters ever in the lore that is Silicon Valley.

Steve.

I joined the company in February '97.

After a couple of days there, I was in complete shock.

The company was close to bankruptcy, and it was total chaos.

The NeXT acquisition had just occurred, and there were major changes going on.

And Steve was involved at that point in time, but on the margins.

I haven't been back here in over ten years, so, yeah, it's an interesting feeling.

It's a little strange, but not too strange.

At some point in time, the process was started to look for a full-time CEO.

And at that point in time, Steve got much more involved.

Now, he still wasn't the CEO.

I don't think he was 100% sure the company was savable yet, and so I think he was hedging his bets a little bit.

He had to make a decision whether he really wanted to take on that role because being CEO of Apple is an all-consuming role, and I'm not sure Steve thought that that's something that he wanted to do for what turned out to be the rest of his life.

I took the title of Interim CEO and agreed to come back for 90 days to help recruit a full-time CEO.

How did that recruitment effort go?

I failed.

You know, the real hero of that early part of the story is Fred Anderson.

Fred restructured the company financially and bought us the time to build the foundation for today's Apple.

And then Fred even had an impact on the product strategy because when Steve came back, the first major project we started was a network computer.

That was kind of the rage at the time, but it wasn't a consumer product at all.

Fred kept going, "You know, wait a minute, we got to have a consumer product."

"You guys have to focus on a low-end Mac because that's what's going to turn the company around."

So, the executive team and Steve decided that we would switch from doing the network computer and make that the iMac.

There you go, right here. Can you see it?

She comes in colors everywhere In the world of computers, it's k*ll or be k*lled.

And the original whiz kid was thought to be dying an early death.

We went for colors that really expressed the spirit of the machine.

And that is... you know, it's powerful, but fun.

And the first thing I thought I'd do is give you an update.

We've managed to go from losing a billion dollars the year before to actually making over $200 million during the first three quarters.

Boy, what a difference a year makes.

Guess what? Mac is back.

She comes in colors everywhere She combs her hair She's like a rainbow He was the kind of person that could convince himself of things that weren't necessarily true.

He could go to people and ask them to do something that they thought was impossible.

Steve did create reality distortion around him.

You know, if he told you the sky was green, for a while, you'd kind of go, "Yeah, OK. Yeah, the sky's green."

To me... marketing is about values.

This is a very complicated world. It's a very noisy world.

And we're not going to get a chance to get people to remember much about us. No company is.

And so, we have to be really clear on what we want them to know about us.

Our customers want to know who is Apple and what is it that we stand for.

What we have is something that I am...

...I am very moved by.

Here's to the crazy ones.

Jobs was so moved by the ad he'd commissioned that he produced a version where he did the voiceover himself.

The round pegs in the square holes.

The ones who see things differently.

They're not fond of rules, and they have no respect for the status quo.

You can quote them, disagree with them, glorify or vilify them.

About the only thing you can't do is ignore them because they change things.

While some may see them as the crazy ones, we see genius.

Because the people who are crazy enough to think they can change the world...

...are the ones who do.

It honors those people who have changed the world.

Some of them are living, some of them are not.

But the ones that aren't, you know that if they ever used a computer, it would have been a Mac.

The theme of the campaign is "Think different."

Think different.

In one brilliant, ungrammatical phrase, Jobs told a story of rebellion, the triumph of the iconoclastic genius.

With "Think different," was Jobs trying to frame his own story?

More than a CEO, he positioned himself as an oracle, a man who could tell the future of technology.

You know, a lot of times, great products are sort of convergence of the right set of technologies.

And Steve was brilliant at getting to a fork in the road and choosing the right fork.

We got a chance to play with a variety of music players, and they sucked.

So, we decided, Steve said, you know, "Go build a music player."

So, I assembled a small team to take a look at what it would take to do it, and the conclusion was the technology really wasn't ready yet.

Then in February of 2001, the Toshiba guys brought out the 1.8-inch hard drive.

So, as soon as I saw that I go, "That's what we need to build the iPod."

So, I went to Steve, and I go, "OK, I know how to do it now."

"I need $10 million."

And Steve goes, "OK, I'll write you a $10 million check."

I went to Fred to make sure the check wouldn't bounce, and Fred said, "Yeah, you know, go."

And so I started ramping the team up, and, you know, we delivered the iPod later that year.

One, two, three, four Tell me that you love me more Sleepless long nights That is what my youth was for Oh, oh, oh You're changing your heart Oh, oh, oh You know who you are One, two, three, four Tell me that you love me more Sleepless long nights That is what my youth was for Oh, teenage hopes

Jobs's genius was how he sold the iPod.

It wasn't a machine for you. It was you.

People sometimes forget that they're very unique and that they have very unique feelings and perspectives.

You know, the whole computer industry wants to forget about the humanist side and just focus on the technology, but we think there's a whole other side to the coin, which is what do you do with these things?

Can we do more than just spreadsheets and word processors?

Can we help you express yourself in richer ways?

Apple at the core, its core value, is that we believe that people with passion can change the world for the better.

That's what we believe.

Steve talks a lot about the values of the company.

And said that Apple was a company that was designed to make the world a better place.

Was that a heartfelt thing for Steve?

I believe it was a heartfelt thing for Steve.

I think that he did want to make the world a better place.

I think that he felt by delivering great products that were easy to use and beautiful, that it would make people's lives better.

Is that enough?

Is making and selling products, even if they're good, even if they're the best, enough to make the world a better place?

Apple's a business.

And we've somehow attached this emotion to a business, which is just there to make money for its shareholders, right?

That's all it is. Nothing more.

You know, creating that association was probably one of Steve's greatest accomplishments.

It's queued up to play. Awesome.

I remember at this point, when the music plays in the beginning, there's just this energy, right?

You have on the one side this huge bank of photographers, and I remember looking at all these guys with their cameras trained on Steve, thinking, "You guys have no idea what's about to happen."

And to be fair, neither did we.

Thank you for coming.

We're going to make some history together today.

Any time you see an Apple event, know that there's a team of people in the audience who are just sick.

We are calling it "iPhone."

Today... Today, Apple is going to reinvent the phone.

And so, rather than talk about this some more, let me show it to you.

So, if you're giving a demo, and you deviate off the script, well, lots of bad things can go wrong.

When Steve comes up with, "Here's what I want to show," everything is dissected.

The message that he's trying to say is then dissected into very specific actions.

And let me go ahead and get that picture within picture up.

I'm going to go ahead and just push the "sleep wake" button.

There we go, right there.

And to unlock the phone, I just take my finger and slide it across.

All right, you want to see that again?

So, he's got, you know, several discrete parts of the demo.

We had a flask of Scotch with us, and after every little part, the person who was responsible for that portion, you know, took a hit.

I want to make a call to Jony Ive.

I can just push here, and I see Jony Ive's contacts with all his information.

The Jony Ive call, oh, my God.

There's all sorts of ways that this could have gone sideways.

Hey, Jony, how you doing? - I'm good. How you doing?

Well, it's been two-and-a-half years, and I can't tell you how thrilled I am to make the first public phone call with iPhone.

He goes to the music.

Let's go into Dylan here.

Let's play Like a Rolling Stone.

He gets the web browser up there.

I want to show you Safari running on a mobile device.

So, let's go to the web. Boom.

Unbelievable.

And then at the end, he has that moment where he swizzles it all together.

At the end, where he orders thousands of lattes from some, you know, poor woman at a Starbucks down the road.

Good morning. This is Starbucks and how can I help you?

Yes, I'd liked to order 4,000 lattes to go, please.

No, just kidding.

Wrong number. Thank you. Bye-bye.

OK.

As soon as the demo was over, we left.

And we just turned San Francisco into a... It was a shit show.

That was a night to remember.

Man, you just had this release of years of anxiety.

And then we got up tomorrow, the next day, and did it all over again.

And we had to finish the product at this point.

And that was tough, especially with a raging hangover, but it was a lot of fun.

The biggest thing he made was the iPhone, definitely.

He made the iPhone, which shocked the world with its touch screen and stuff.

So, what are we down to? 13 minutes and...

Whoo-hoo!

It's go time! Oh, yeah.

Oh, yeah. Swipe to unlock. Sweet!

All my life Is changing every day There she is.

In every possible way iPhone's been shipping for exactly 200 days today.

And I'm extraordinarily pleased to report that we have sold four million iPhones to date.

Never quite as it seems And then I open up and see The person falling here is me Today we're introducing the iPhone 3G.

In a little over two years, we have sold 30 million iPhones.

And with a swipe, you have changed your life.

Yes!

How may I help you? iPhone 4. Where is the iPhone 4?

Oh, I'm very sorry, but we are currently sold out.

However, we did finally get some more HTC Evos in.

What? What is that? Is it an iPhone?

No, it is that 4G phone on Sprint.

If it's not an iPhone, why would I want it?

Well, it's similar to an iPhone, but has a bigger screen.

I don't care.

The internet speeds are around three times faster.

I don't care. It f*cking prints money.

I don't care. It can grant up to three wishes.

Even if one of those wishes is for an iPhone.

I don't care about any of that. OK, fine.

Then what the hell entices you about the iPhone 4, if you don't mind me asking?

It is an iPhone.

I remember the first set of people I interviewed about the iPhone.

I've been interviewing people about their computers for, you know, decades.

I've never seen this kind of connection before with an object.

In the beginning, the impulse was to sit you down and to show you everything on their iPhone.

As time's gone on, there's been less of that and more of what I call the "alone together phenomenon."

It has turned out to be an isolating technology.

Did you ever see that Wim Wenders film, "Until the End of the World"?

Yes, I love that. People fall in love with their dreams, and they walk around with hoods over their head and screens in front of them, fascinated by their dreams.

By the time I came to rescue Claire, the only thing she cared about was having fresh batteries for her video monitor.

It's a little bit like that.

It's a dream machine, and you become fascinated by the world that you can find on these screens.

And the face of that technology was Steve Jobs.

What would you say about the responsibilities of power once you've achieved a certain level of success?

Power? What is that?

Your daddy, he's an outlaw He found a loophole where if you lease a car, you have a six-month grace period to put license plates on.

And so he leased the same car every six months, to avoid putting license plates at all.

I think he told people that it's because he didn't want people to identify him.

Well, there's nothing more identifiable than a silver Mercedes with no license plate.

I mean, it screams "Steve Jobs" in the Valley.

Riding to work with Steve Jobs.

Riding to work with the good old Stevie.

Oh, look at that, he's in the carpool lane.

And it does give you a glimpse of how he thought he was above the law.

He oversees his kingdom Where no stranger does intrude His voice It trembles as he calls out For another plate of food One more cup of coffee for the road Jobs also made it a habit to park his plateless Mercedes Benz in handicap parking spots around the Apple campus.

It even became something of a pastime in the Valley, to take a picture next to Steve's car.

One more cup of coffee before I go To the valley below

He was a hero in the Valley because he made buckets of money, but unlike Bill Gates, Jobs told people that giving away money was a waste of time.

Under Jobs, Apple terminated its philanthropic programs.

Jobs kept acting as if Apple was a start-up, but by 2010, it was one of the most valuable companies in the world.

Among the rich and famous, Jobs was a compelling character.

A counter-culture businessman. But what were his values as a citizen?

Was he interested in power to change the world or the right to have power without responsibility?

There was an experience where actually a couple of people were fighting over you, were they not?

Oh, man. I went to Palm. Then a bunch of people went to Palm.

Yeah. Yeah.

Was Steve pissed off? Oh, man. Yeah.

I gave my resignation. It went up the chain, like you do.

And just sure as hell, like 20 minutes later, I get a call from Steve's admin, "Steve wants to see you."

He sits down. He just kind of sits there, and he looks at me.

And I start to kind of launch into my little spiel that I had planned, and he says, "You know you f*cked up Bluetooth, right?"

I just stopped. I'm like...

And then we go through this half-hour mind f*ck.

It becomes very "Godfather" - esque.

You know, "You're part of my family, and Apple's my family, and you don't want to leave my family."

And at the end, he says, "If you choose to leave my family, should you decide to take so much as one member of my family away from me, I will personally take you down."

To keep his family together, Jobs was willing to let Apple bend or even break the law.

In 2011, a class-action lawsuit filed by more than 64,000 Silicon Valley workers revealed that Jobs, along with the CEOs of Google, Intel and Adobe had colluded not to recruit each other's employees.

If you're working there at Apple, or wherever you're working, you've got another company that you might move to and take your expertise with you and earn more money at that company.

They won't accept your résumé. They won't return your phone calls.

Right. Because they won't let them poach each other.

Correct. That's not a legitimate situation.

You know what some of the strongest evidence was?

E-mails of the late, great Steve Jobs.

Really? Tons of them, yes.

Less than a month after Google co-founder Sergey Brin received this threat from Jobs, Google circulated a "do not cold call" list that included Apple.

Two years later, Google tried again, and Jobs e-mailed Google CEO Eric Schmidt to remind him of their gentlemen's agreement.

Schmidt placated Jobs by assuring him that the culprit would be fired within the hour.

When Jobs learned that the woman had been canned, he showed his pleasure in two efficient keystrokes.

Someone's going to come out of the door. Do we want a shot of that?

Are you taking a picture of the inside?

We're taking a picture of the Apple logo on the door.

OK, we cannot have people taking pictures.

Tonight, a Wall Street scandal has reached deep into an iconic American company, the Apple Corporation.

It all centers on an alleged scheme to under-report Apple's expenses by $40 million, including $20 million that went straight to the company's celebrity CEO Steve Jobs, in the form of what are known as backdated options.

I first met Steve Jobs shortly after I became editor of Fortune magazine.

And I said, "Listen, we'd love to have a good relationship with Apple and do stories about you."

And he said, "Look, this is how it's going to work."

"You know, you want to do a story about us, you call us up, propose it, you know, we'll think about it."

"We'll basically come up with the ideas with you, or come up with the ideas, we'll call you, we'll figure out who the writer is going to be on your staff to do the story."

And I said, "Well, you know, Steve, that's not really how we do things."

And he goes, "That's how you do things with Apple."

So I say to myself, "Why don't we do a story about the stock options?"

"Because no one's really figured it out."

So, I decided to put one of our top investigative reporters on the story, Peter Elkind.

Steve Jobs had a very talented group of key lieutenants around him.

And he wanted give his people stock option grants that were so big, that they wouldn't even think about going somewhere else because the upside was so enormous.

The key thing is if the stock goes up, which we always hope it does, then the golden handcuffs are dramatically increased, which is what I was hoping would happen.

To make those option deals even sweeter, companies would allow executives to buy stock on dates in the past when the price was low so executives could make millions in the blink of an eye.

This was called "backdating."

And it seemed like the perfect solution, except for one thing.

If not properly reported, backdating is illegal.

200 US public companies are under investigation over charges of backdated stock options for their senior executives.

Backdating was a dicey game, and it landed several executives in jail for fraud, but it became a frequent practice at Apple under Jobs.

Apple eventually conducted an internal investigation and found thousands of cases where stock options had been handled inappropriately.

None of that had taken place according to the company's own report before Steve Jobs had returned there.

A key advisor on many of the troubled backdating schemes was a powerful Silicon Valley attorney, Larry Sonsini.

Larry Sonsini had kind of spread this dark art in the world of Silicon Valley.

He's the guy who whispered to the CEOs of all the top tech companies, "Here's how you can do this."

He was certainly very close to Steve Jobs.

Sonsini had known Jobs since Apple went public in 1980 and had been a board member at Pixar when it created a vast program of brazenly backdated options for top executives.

Yet despite Jobs's long history with backdating, Apple's own investigation, led by Al Gore, absolved Jobs of any wrongdoing.

Their conclusion was that Steve Jobs didn't appreciate the accounting implications of the issue.

I know you're not an accountant, but do you have an understanding as to what generally accepted accounting principles are?

Not really.

Jobs's accounting naiveté would be challenged by his own CFO, Fred Anderson.

A hero during Apple's comeback, Anderson was one exec who took the fall for backdating.

As Apple's chief financial officer, Mr Anderson, you had overall responsibility to ensure that the company complied with all financial reporting requirements, true?

On advice of council, I decline to answer based on my Fifth Amendment rights.

When the SEC investigated, Apple effectively threw Anderson under the bus.

He was forced to resign from Apple's board and to pay $3.6 million in penalties.

But in a very unusual statement, Anderson's lawyer made it clear that Fred had relied on statements by Jobs that turned out to be false and that Anderson had explained the dangers of backdating to Jobs.

Now, this contradicted exactly what Jobs and the company had maintained which was that Steve Jobs didn't appreciate why this was a problem.

I think the notion that Steve Jobs knew nothing and Fred Anderson and Nancy Heinen were entirely responsible is ridiculous.

The company has confirmed that Jobs himself was awarded backdated options that carried a false date in October 2001.

According to Apple's own report to the SEC, The award was "improperly recorded as occurring at a special board meeting when in fact such a board meeting did not occur."

A fictitious board meeting that awarded Jobs 7.5 million options.

Just what was going on?

At first, all fingers pointed to another member of the Apple comeback team, General Counsel Nancy Heinen, who had certified the minutes of the phony board meeting.

Like Anderson, Heinen would settle with the SEC without admitting or denying guilt.

But her silence raised questions. Would she have just decided on her own to fake a board meeting in order to enrich Steve Jobs?

Who wanted this done?

As we've seen in the discussions of the past hour, I spent a lot of time trying to take care of people at Apple and to, you know, surprise and delight them with what a career at Apple could mean to them and their families.

And I felt that the board wasn't really doing the same with me.

Right. So I was...

...hurt, I suppose would be the most accurate word.

I'd been working, you know, I don't know, four years, five years of my life, and not seeing my family very much and stuff.

And I just felt like there's nobody looking out for me here, you know?

Right. OK.

So, I wanted them to do something, and so we talked about it.

There's no question that the directives came from him.

Yet, when the SEC investigated, it was as if he was immune.

I'd wished they'd have come to me and said, "Steve, we've got this new grant for you," without me having to suggest anything or be involved in anything or negotiate anything.

That would have been much better from the company's point of view because it would have made me feel better at that time.

According to one analyst, if Jobs had gone to jail for backdating, the company's value would have dropped by $22 billion.

But Jobs was Apple's indispensable man, and Apple, Silicon Valley's indispensable company.

A cornerstone of the entire American economy.

But just how American was Apple?

Do you swear that the testimony you're about to give will be...

When the US Senate questioned Jobs's successor, Tim Cook, about the company's tax practices, many of the subcommittee members took a moment to state, for the record, just how tough they were willing to be.

I love Apple, and I'm very proud of Apple as an American company.

Apple is an American success story.

Its products are justifiably well-known and used throughout the world.

Just like millions around the world, I carry an iPhone in my pocket.

What may not be so well-known is that Apple also has a highly developed tax-avoidance system, a system through which it has amassed more than $100 billion in off-shore cash in a tax haven.

Apple found its tax haven in the green fields of Ireland where Jobs and his team set up holding companies in the early 1980s.

The scheme is known as a "Double Irish".

Holly Hill industrial estate can scarcely be compared to California's Silicon Valley.

There is the feeling that Apple of Cork may become something of a Silicon Hill.

Today, Apple holds more than $137 billion of its profits overseas.

Much of it in two small Irish companies, one with no employees.

While the actual cash is held and invested by New York banks, the paper profits are steered through an office park in Reno, Nevada, and then back to the Emerald Isle where it's taxed at rates less than 1%.

Senator, we're proud that all of our R&D, or the vast majority of it, is in the United States.

I know, but the profits that result from it are sitting in Ireland in corporations that you control that don't pay taxes.

Part of the mythology of these new companies was that they in some way reflected something about America.

Both Google and Apple have played on the idea of political virtue as part of selling their company.

So then to find out they weren't about political virtue is distressing.

Steve Jobs said he wanted to change the world, but into what?

Companies all over the world make choices on how to treat workers, what to give back and where to put their money.

What were Steve's choices?

In meditation, he found simplicity.

He loved the idea of "Be Here Now." But where was "here?"

Ladies and gentlemen, we have just landed at Beijing International Airport.

I thought it was important to cover China because Apple has all of its products made there.

I mean, they design their own products, but the manufacturing is done in China, and so it's caught up in another country's industrial revolution.

And a lot of that is out of Apple's control.

Four workers died and 77 were wounded in explosions at two Apple supplier factories caused by careless safety procedures.

The solvents used to sparkle Apple's touch screens were powerful but dangerous, causing nerve damage that led to weakness and loss of touch in workers.

They complained about low wages and pressure to meet Apple's deadlines.

In the Chinese factories of many tech companies, copper, chromium and other heavy metals saturate the run-off that flows into local waterways.

Sometimes chemical levels are so high that sewage treatment plants can't adequately clean the water for it ever to be used again.

In 2010, Chinese activist Ma Jun contacted all the tech manufacturers to discuss the issue and even wrote to Jobs personally.

All the companies ultimately responded except one. Apple.

It wasn't until Jobs left the company that Apple even agreed to speak to Ma Jun.

Foxconn is Apple's top supplier, so it all goes downhill from there in terms of the standards, in terms of everything.

These young people come from the countryside under unimaginably poor conditions, looking for a better life.

Sun Danyong, nicknamed Yong, came to Foxconn from a small mountain village.

Placed in the product communications department, he was responsible for the security of iPhone prototypes bound for Apple's headquarters in Silicon Valley.

In 2009, an iPhone 4 prototype went missing on Yong's watch.

Sun Danyong was the first factory worker who came under the spotlight.

What makes his story incredibly vivid is that in today's day and age, there's CCTV cameras recording where his movements were.

He had a conversation with his friends on the Chinese Twitter site, and you could really track what had happened.

Yong searched high and low for the prototype before reporting it missing to Foxconn security.

That evening, officials took him into an interrogation room where he was assaulted and was told police would arrive the next morning to question him.

Yong was finally permitted to leave the factory at 10:41pm.

He wandered to an internet cafe where he chatted online with his friends.

He logged off around 1:30 in the morning.

Soon after, security cameras spotted him in an elevator in his apartment complex.

He got out on the 12th floor and texted his girlfriend.

At 3:33am, security cameras recorded Sun Danyong jumping to his death.

Over a period of two years or so, there were 18 suicides.

Foxconn set up these nets to catch people who fall off.

People were jumping off of the buildings, so they were going to prevent people from dying by having safety nets to catch them.

You know, they've had, if you count the attempted suicides, 13 so far this year.

And while that is still... They have 400,000 people at this place.

So, 13 out of 400,000 is 26 per year so far.

For 400,000 people or, you know, let's say seven per 100,000 people, that's still under the US su1c1de rate of 11 per 100,000 people, but it's really troubling.

Right. It's in one place, too.

Well, you measure it by number of people.

You measure it by numbers of people. So, we're all over this.

And it's... It's very troubling.

So, we're over there trying to understand what's happening, and more importantly, trying to understand how we can help.

Apple isn't the only company to manufacture in China, but it is different in one way. Its enormous profit margin.

The profit on every iPhone 4 was over $300.

Yet Apple paid its Chinese workforce less than $12 per phone.

If Jobs had really "thought different," shouldn't he have cared more about the people who touched the iPhones before they appeared in the hands of Apple's customers?

When I was writing critical stories about Apple, the mail would be 80% hate mail.

Even the most reasoned, judicious criticism about labor practices in China, for crying out loud, it didn't matter.

People didn't want to hear it.

They loved this company. They loved its products.

They loved the status symbol of having these things in their hand and looking at it all the time, and it just felt cool, and they'd stood in line for two days to buy one, and they didn't want to hear it.

I was one of those people who had to have an iPhone.

I didn't want to hear about other products, and I believed against all reason that owning an iPhone made me part of something better.

And when it was in my pocket, for every idle moment, my hand was drawn to it, like Frodo's hand to the ring.

The real magic of it is that these myths are surrounding a company that makes phones.

A phone is not a mythical device.

Um...

And it sort of makes you wonder less about Apple than about us.

The myth-making around technology in general allows the technologist to do things that would be viewed as heinous if they were done by other kinds of companies.

This is a story that's amazing.

It's got theft, it's got buying stolen property, it's got extortion.

I'm sure there's sex in there somewhere, you know?

Really?

So somebody should make a movie out of this.

If you were to make a movie about it, the first scene would be set in a beer garden in Silicon Valley.

As he swilled a few steins of Pilsner, Apple's Gray Powell was testing out a new iPhone prototype.

But when Powell staggered out of the bar, he forgot one thing.

The iPhone.

It was found on a bar stool by a college student named Brian Hogan.

And this e-mail comes into our tip box, and there was this guy claiming that he had this new iPhone prototype.

Getting inside Apple's security fort, and look at something that is under wrap.

But back then, when Steve Jobs was at the helm and in his full power, it was impossible to get anything from them.

It was incredibly exciting.

At that point, Apple didn't have a whole lot of leaks.

And then I go to Nick and I say, "We think it's the real thing, and they want their money."

And Nick said, "Anything you want."

For us, there's no question as to whether we write the story or not.

That's what was so disturbing, I think, to Steve Jobs, was that he'd been used to having a much more controlled relationship with the press.

Our plan was to take pictures of it, write about it, and then return it back to Apple.

Hey, I'm Jason Chen. This is the new iPhone.

Here are some of the new features.

In the beginning, it was OK. Only nerds looking at it, I guess.

And then the story started to pick up.

You know, it was the biggest scoop in tech in history.

"Hi, this is Steve Jobs. I want my phone back."

And it was in a really charming voice.

And it's same way you'd ask for, you know, a hat you'd lent a friend.

I'd met him a couple of times before. It was his voice, unmistakably.

He said, "You know, I'm not mad at you."

"It's someone we worked with who lost it."

"But you've had your fun, and we need this phone back before it gets into the wrong hands."

And at that point, I was thinking, "Isn't it already in the wrong hands?"

Nick at that moment said, "Ask for a letter."

"Ask for an official letter asking for it."

"We need the actual confirmation that this is the real thing."

The next call, he said he didn't want to claim it.

He really changed his tone at that point, because it would affect the sales of the current model, which is kind of disappointing, you know?

You hear all these stories about this guy not caring about money.

And he goes, "This is some serious shit."

"If I have to serve you papers, I'm coming for something, and it's going to mean someone in your organization is going to go to jail."

For a reporter who's got a chip on his shoulder against corporations, that's like, "Martyr me. Please, martyr me."

"I'll go to jail for an iPhone. Like, really."

He called back later and he said, "OK, we'll get you the letter," and he was just resigned and cold.

So, they sent us the letter, and they sent a lawyer from Apple to Jason's house to pick up the phone.

It was a very cold exchange.

He said, "I believe you have something of mine," or something.

And I handed it to him, and he said, "Thank you very much," and he left.

Was that the end of it, as far as Apple was concerned?

No, of course not.

Then all the nightmares started.

The cops had to bash in the guy's door?

Don't they know there's an app for that?

Anyone who'd worked with Jobs before would know of other instances where he'd been a bully.

But this was probably the most public evidence of bullying.

My wife and I went out for dinner. We came back home, and we noticed the garage door was slightly opened.

You know, and I was wondering, "What's going on?"

And I opened it all the way, and I noticed there were people inside.

And I thought, you know, "Holy crap, I'm being robbed."

And then I looked closer and realized it was cops.

The cops seized boxes of Chen's personal property including four computers, two cellphones and a box of his business cards.

For the Gizmodo movie, this raised questions of plot and motivation.

Why break down Chen's door after he returned the iPhone?

They showed me the warrant to search the premises and said, "We're part of the REACT team."

After they searched the house, obviously I went and Googled it.

The officers who raided Chen's apartment were part of a little-known criminal task force called REACT, composed of local, state and federal officials on the lookout for corporate espionage in Silicon Valley.

My initial response was, "This is cool. It's Apple."

Chris Feasel was the deputy DA advising REACT on the case.

After the raid on Chen's apartment, Feasel was received at Apple by Jobs himself.

He was very, very nice, very high-energy.

We had a back-and-forth about what he wanted to see happen versus what some of the realities were about doing a prosecution.

He was very supportive about whatever choices that we made on the case.

Where do people come down on this?

Where do you come down on it? Well, I can just tell you what...

There is an ongoing investigation by the DA, and I'm not current on it.

He was very involved in it and very interested in it and wanted to be kept abreast about what was going on in the investigation.

Jobs had every reason to expect that he would be kept informed because REACT wasn't a purely government agency.

It had a steering committee composed of many of the major companies in the Valley.

In a town so completely dominated by the tech industry, had law enforcement become the muscle for the largest corporations in the world?

He was very, very adamant and very passionate about his creation.

And the only analogy I can think of is if somebody stole your baby, you would be very upset about it.

That's how Mr Jobs felt. Somebody had taken his baby.

In spite of pressure from Apple, the DA decided not to pursue the charges against Chen because he hadn't received stolen property.

He was a journalist doing a story.

When this whole thing with Gizmodo happened, I got a lot of advice from people that said, "You shouldn't go after a journalist because they bought stolen property, and they tried to extort you. You should let it slide."

"Apple's a big company now. You don't want the PR."

"You should let it slide."

And I thought deeply about this, and I ended up concluding that the worst thing that could possibly happen as we get big and we get a little more influence in the world, is if we change our core values and start letting it slide.

I can't do that. I'd rather quit.

What values was Jobs talking about?

When Apple was taking on IBM, it was David versus Goliath.

But when Apple became Goliath, to whom was Jobs giving the finger?

The sad thing is that how many months did he have left after that?

This was a guy who knew, who knew at the time, he was dying, and he dedicated, what, ten minutes of his life to talk about these guys who found a phone in a bar and then published a story about it? Isn't that a little bit strange?

My third story is about death.

About a year ago, I was diagnosed with cancer.

I had a scan at 7:30 in the morning, and it clearly showed a tumor on my pancreas.

I didn't even know what a pancreas was.

The doctors told me this was almost certainly a type of cancer that is incurable, and that I should expect to live no longer than three to six months.

My doctor advised me to go home and get my affairs in order, which is doctor's code for "prepare to die."

It means to try and tell your kids everything you thought you'd have the next ten years to tell them in just a few months.

I lived with that diagnosis all day. Later that evening, I had a biopsy.

I was sedated, but my wife, who was there, told me that when they viewed the cells under a microscope, the doctors started crying because it turned out to be a very rare form of pancreatic cancer that is curable with surgery.

I had the surgery and, thankfully, I'm fine now.

Steve Jobs talked about his cancer very emotionally at the Stanford graduation ceremony in 2005.

And he very clearly told the story to make it sound as though he had been diagnosed and moved immediately to surgery, and been cured.

That simply wasn't true.

What I found out, over a period of months of reporting, was that Steve Jobs actually had been diagnosed with cancer nine months earlier, and that for a period of nine months, he had refused to have the surgery that every medical expert said was necessary to increase his prospects for survival.

Instead of having the surgery, he had sought alternative medicine approaches to try to cure himself of cancer.

Entrepreneurs have an almost pathological need to control their own fate.

They'll take any suffering if they can just be in charge of their destiny and not have it in somebody else's hands.

Apple's stock has been volatile on rumors about Jobs's health.

The company's stock was halted for a time, then took a big hit when it re-opened in after-hours trading.

Apple's share prices have dropped with every pound that Jobs has lost in recent months.

Apple really landed into a dicey situation when Steve decided to issue a letter saying, "Well, you know, nothing's wrong with me."

"It's just a minor problem," And it wasn't a minor problem.

Steve Jobs made a point of withholding from the world that he faced this illness.

That's something investors want to know, because when you bought Apple stock then, you were buying into Steve Jobs.

He was obligated to tell shareholders right away about this serious illness.

You do personally want to give Steve the privacy, but Steve put the spotlight on him, and you can't turn that off just because it's inconvenient.

After the story came out, I saw Steve.

He started talking about Apple, and he said, "You know, Apple is really a company that doesn't have any divisions."

"We don't have all this bureaucracy."

And I said, "Steve, that would be a great story for Fortune."

And he looked at me, and he said, "No."

"I don't think we can do that story with you. Not now."

"Not now."

And then he said, and the whole room went quiet, and he said, "you know, we used to..."

"We used to really be friends with Fortune, I used to be friends with Fortune, but not anymore. Not anymore."

And then I remember these tears came out of his eyes, and one was on his glasses, and then one, I remember it rolling off his cheek and hitting his shirt, and he was just crying, and the whole room was silent.

Apple CEO Steve Jobs today made his first public appearance since getting a new liver five months ago.

For the first time, the 54-year-old CEO publicly acknowledged the liver transplant this spring that saved his life.

Well, I now have the liver of a mid-20s person.

I'd like to take a moment and thank everybody in the Apple community for the heartfelt support I got, too. It really meant a lot.

And I'd also like to especially thank Tim Cook and the entire executive team of Apple.

They really rose to the occasion and ran the company very ably in that difficult period.

So, thank you, guys. Let's give them a round of applause.

He loved what he did.

I do have an e-mail from him saying that.

He said, you know, "Both of us were fortunate," he said, in that we loved what we did and we were able to do it for a long time.

And he said, "What else could you ask for?"

We're maybe a little more experienced, certainly more beat-up, but the core values are the same.

I don't see why you have to change if you get big.

Straightforward to me.

Apple was big.

By this time, one of the biggest corporations in the world.

But each time we saw Jobs, he seemed smaller.

As his devices got stronger, Jobs got weaker.

It's so much more intimate than a laptop, and it's so much more capable than a smartphone with this gorgeous, large display.

I think that a lot of the grief at Jobs's death was a fear that we had been very comfortable for the last decade in his hands.

It's phenomenal to hold the internet in your hand.

That he was going to keep doing these amazing things.

Now he's gone, and there's no indication that anyone's going to replace him.

Welcome.

Thank you.

Thank you very much.

It always helps... We love you!

Thank you.

It always helps, and I appreciate it very much.

He resigned officially in August. Two weeks earlier, Apple had become the highest-valued corporation on Earth.

And thank you for coming so much.

We've got a great week planned for you.

This is a field where one does not write a principia which holds up for 200 years or paints a painting that'll be looked at for centuries, or builds a church that will be admired and looked at in astonishment for centuries.

No, this is a field where one does one's work, and in ten years, it's obsolete and really will not be useable within ten or 20 years.

I mean, you can't go back and use an Apple I, cos there's no software for it.

In another ten years or so, you won't be able to use an Apple II.

You won't even be able to fire it up and see what it was like.

It's sort of like sediment of rocks.

You're building up a mountain, and you get to contribute your little layer of sedimentary rock to make the mountain that much higher.

But no one on the surface will, unless they have x-ray vision, will see your sediment.

In Japan, there's an idea called "mono no aware," meaning "the deep awareness of things".

It celebrates the melancholy of the passing of life and sees more beauty in the fallen leaf than the one on the branch.

Maybe that's what Japan held for Jobs.

The sadness of the soul as expressed in the beauty of things.

In the end, I was left with the same question with which I began this journey.

"Why did so many strangers weep for Steve Jobs?"

It's too simple to say it was because he gave us products we love without asking why we love them the way we do.

It's too simple even to conclude that we love them because they connect us to a wider world and the people in our lives that are far away, because these machines isolate us, too.

Perhaps the contradictory nature of our experience with these gadgets mirrors the contradictions in Jobs himself.

He was an artist who sought perfection, but could never find peace.

He had the focus of a monk, but none of the empathy.

He offered us freedom, but only within a closed garden, to which he held the key.

To reconcile these contradictions, I think we have to look to the other half of our relationship with Jobs.

To ourselves.

As Jobs wanted it, the screen of my iPhone is dark.

A Zen landscape of the unseen.

If I stare into it, I see an obscure reflection of myself, but this impression lasts just a fleeting moment before I press the home key and the screen lights up.

But perhaps I should spend a moment regarding that reflection, asking myself what, in buying and using this product, I am doing?

What is the full nature of my transaction with the maker of this magical and intimate machine?

Once I wanted to be the greatest Greatest, greatest, greatest No wind or waterfall could stall me And then came the rush of the flood Stars at night turned deep to dust Melt me down into big, black armor

Leave no trace of grace Just in your honor

Lower me down to culprit south Make 'em wash a space in town For the lead and the dregs of my bed I've been sleeping Lower me down Pin me in, secure the grounds

For the later parade