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TVTranscript
00:01One man was an engineer.
00:03All through high school and college,
00:04I was designing all these computers.
00:06One man was a dreamer.
00:08It doesn't matter whether you like or dislike Steve Jobs.
00:11Steve Jobs was making so many people miserable,
00:13and he said, this is .
00:15You would have to be certifiable to bet against him.
00:19And together they changed the world of computing,
00:22one home at a time.
00:26It really did launch the personal computer industry.
00:28No matter who you are, if you have a good idea
00:31and a little moxie, you can go out and change the world.
00:34This is the story behind The Apple II.
01:01From as early as grade school,
01:02Steve Wozniak has a fascination with technology.
01:06Back in elementary school,
01:07it was actually building incredible projects,
01:08starting out with little switches that play a game of tic-tac-toe,
01:11and then transitions that could do adding and subtracting.
01:14By high school, I actually discovered that I sort of knew logic,
01:18and I got some computer manuals,
01:19and I started putting the two together,
01:21and I started designing my own computers.
01:23So all through high school and college,
01:25I was designing all these computers.
01:26I didn't think I could ever be a job.
01:28I just did it for fun.
01:33Wozniak goes to college at UC Berkeley,
01:35but ends up getting sidetracked in 1973.
01:39I took a year off to work, and within less than a year,
01:41I had a job at Hewlett-Packard
01:42designing the greatest products in the world.
01:44The calculators, the first scientific calculators,
01:46and my career just kept going up and up and up,
01:48and I didn't get back to school.
01:50I mean, I was an engineer, so I didn't really need a degree.
01:53While working at Hewlett-Packard,
01:54the young engineer is introduced to an old classmate.
01:57A friend down the street, Bill Fernandes,
01:59worked in our group at Hewlett-Packard.
02:00He had introduced me to this guy, Steve Jobs,
02:02that he knew because Steve and I went to the same high school,
02:04and Bill said,
02:05you guys have something in common you have to meet.
02:07So Steve and I met, and we hit it off.
02:08We started talking about electronics, where it might go,
02:10what some of the new devices were.
02:12We just shared such a connection there.
02:14Their shared interest leads them both
02:16to the Homebrew Computer Club in Menlo Park, California.
02:19Remember that phrase, anarchists unite?
02:22That was the Homebrew Computer Club.
02:24There must have been 250 people there,
02:27and you couldn't get two of them to agree on any other name,
02:30on any name, on anything.
02:32The people who showed up were professional programmers
02:35with no hardware experience,
02:37who wanted to know about this new hardware machine
02:39that had just come out.
02:40Hardware people with no software experience
02:42who wanted to learn about software.
02:44It was a great match.
02:45I had drifted away from computers.
02:47I had lost track of things like microprocessors.
02:49I didn't really know they existed.
02:51And then a friend called up and said,
02:52there's this group starting up,
02:54a little meeting they're going to have,
02:55and you might want to go.
02:56I went to the club and discovered
02:58that everybody else was there for microprocessors.
03:00And these little low-cost computers
03:02built on microprocessors.
03:03The club was catalyzed by the appearance
03:07in the Bay Area of the very first model of the Altair,
03:12what we would now call personal computer.
03:14Right that night, late that night, maybe around midnight,
03:16I said, I'm back in business.
03:19Steve Wozniak always sat at the one seat there,
03:22which had an electrical outlet nearby it.
03:25He would always have something set up there.
03:27Now, there's another guy, Steve Jobs,
03:29who was at that time a very silent person.
03:32He would be sort of lurking around listening
03:35and just absorbing lots and lots of information.
03:38My initial impressions of Steve Jobs
03:40was that he was young, hippie, arrogant.
03:44There were a lot of us in the world
03:45that had sort of wanted our own computer,
03:47but all we had was our company's computer,
03:49and we couldn't really do our things on it.
03:51If you had asked me about the future of computers
03:54before 1974, I would have told you
03:57that I didn't think it had a future.
03:59At least not the way it was done in 1974
04:03with mainframes and Fortran and punch cards.
04:05We grew up with about 550 members every meeting,
04:09and, of course, right from the start,
04:10I sat down and said,
04:11I'm going to design a computer.
04:13I can finally afford one.
04:15I can buy a cheap microprocessor chip.
04:17I can buy some RAM from somebody in the club.
04:20I can attach my terminal that I designed at home,
04:22and I'll have a keyboard, a TV set, and a little computer.
04:25Wozniak teams with Steve Jobs
04:27to make his new idea a reality.
04:29At first it was just designed to show off at the club.
04:31I didn't have a company,
04:32so, of course, I passed out the schematics.
04:34Everybody at the club could just take it and build their own.
04:36And then, like, a whole bunch of things
04:37that I designed in my life.
04:38Steve Jobs came along and said,
04:39hey, let's sell it.
04:40On April Fool's Day, 1976,
04:42Jobs and Wozniak create the Apple Computer Company
04:46and release their new PC as the Apple One.
04:49The computers are priced at exactly $666.66.
04:54The name Apple originally came from Newton's Apple.
04:58As a matter of fact,
04:59Apple's first logo was Isaac Newton sitting under an apple tree,
05:03and the apple gave him inspiration.
05:06Then I realized that was a little too esoteric for most people.
05:10So they made it more just apple to fruit.
05:14Steve wanted a company, wanted to change the world,
05:16and get these products sold to people.
05:19The two Steve's from Silicon Valley are just getting started.
05:23Little do they know that what they do next
05:25will surpass their wildest dreams.
05:35By 1976, Apple is up and running.
05:39The company's first computer, the Apple One,
05:42makes a small splash in the computing industry.
05:44Even in the earliest days, the Apple One, you know,
05:47you couldn't have made money if you were a real company
05:49and had expenses, you know, and salaries.
05:52But all we had was ourselves working at home for free.
05:54I had a job at Hewlett Packard, and Steve lived at home,
05:57and we could just sort of do just enough to get some sales going.
06:00We got a bank account up to about $10,000, nothing real big.
06:03We sold about 150 of those Apple One computers,
06:06and we were just a little partnership, not a corporation.
06:09It wasn't the big product that was going to change the world.
06:11I saw the Apple One, and I thought it was a little bit unwieldy.
06:17It seemed like a good first effort.
06:20Within a year, two competitors are released,
06:22the Tandy TRS-80, and the Commodore PET.
06:25But Steve Jobs and Steve Wozniak have a new product of their own,
06:29the Apple II.
06:30The Apple II was much more of an attempted commercial computer,
06:35something that could actually be sold and used by hobbyists,
06:38as opposed to the Apple One, which was really for hardcore geeks.
06:43Steve Wozniak, with his partner Steve Jobs, embarked together on this project,
06:47and it really benefited from both their talents.
06:50Steve started working on the Apple II around January of 1976.
06:56An amazing designer, could design incredible things with almost no circuitry.
07:02I had this computer that was half as many chips as an Apple One,
07:05and it was doing color.
07:08At the time, everybody was designing with the 8080s.
07:11Woz chose the 6502 because 6502 was selling for $25,
07:16and he could afford that.
07:18And the 8080 was actually very expensive.
07:20We went to the Wescon show, and they were handing out 6502s as a promotion.
07:26So he took one and said, hey, I'll design a computer around this.
07:29Wozniak envisions the Apple II as a computer that will revolutionize
07:33both the home PC market and the game industry.
07:41You need sound for games, so I put in a little speaker, and you need paddles.
07:46I came up with a very clever approach where one little chip
07:48worked four different paddles at once.
07:52I sat down, and I was going to program it on my microprocessor
07:55to play the game Breakout, which was one that I designed in hardware for Atari.
07:59And as I sat there and was about to start writing, I said, I wonder if it's possible to write
08:04a game in BASIC,
08:05the language that normal people can use.
08:08So I added the commands to put color on your TV set in the right places,
08:12and to put lines of color and blocks of color.
08:15And then I said, I'll make a little white ball.
08:17Then I got a little paddle.
08:19And all of a sudden, I had my game done.
08:21It was Breakout done BASIC, and it only took half an hour.
08:23We were going to move from games being hardware that take half a year to design to a year
08:27to becoming software programs that could be done in ten days for a simple game.
08:33In the first West Coast Computer Fair in 1977, I saw the Apple II for the first time.
08:39The Apple II showed up.
08:41It says color.
08:43Oh.
08:44It has a plastic molded case.
08:46No one else had that.
08:47It had a bus structure for cards, and it also had two-port memory.
08:52It was being sold as fully assembled.
08:54The appearance of the Apple II was purely Steve Jobs, and that was so critically important,
09:00because now you had a computer that didn't look scary.
09:04Up until that time, every computer came in this military-looking square boxes.
09:13The Apple II came.
09:15It was sleek.
09:15It was sexy.
09:17That helped it to gain acceptance into a lot of people's homes.
09:22It was incredibly flexible.
09:24It had a lot of input-output slots inside the case.
09:27It had a very open architecture.
09:30It was very easy for people to program.
09:34Apple II had all that stuff in it.
09:37It had a power supply.
09:38It had the connection for a monitor, which you'd buy.
09:40It had the keyboard, which was built-in.
09:43How cool.
09:43All the stuff you needed to just turn it on and pow.
09:47Up there on the screen, you were ready to run BASIC,
09:49which was the way people used computers back then.
09:52The first thing you'd see was a prompt into the BASIC computer language.
09:55You know, it was an all-in-one package, really easy to use for the time.
09:58In Jonathan Wozniak's circle of friends, the Apple II is a marvel.
10:04But is the public ready to accept a computer into their homes?
10:08Marketing computers back in 1976, 1977 was a virgin territory.
10:13To most people, it is a ridiculous thing.
10:16What would you possibly have to need for a computer sitting on your desk?
10:28The first Apple IIs are shipped out in June 1977.
10:33The slick new computers sell for $1,298 each.
10:37That same year, Apple creates a new logo and moves out of Steve Jobs' garage
10:41into a real office in Silicon Valley.
10:43Sales of the Apple II aren't bad.
10:46But two new features will skyrocket demand for the new system.
10:49The first is the introduction of an affordable disk drive.
10:53Well, cassette loading programs really sucked.
10:58That, you know, was the technology that was much cheaper than disk drives at that point.
11:01Now, disk drives were a pretty pricey item.
11:02You put in the tape and you had to rewind it and then play it while it read in all
11:07the data serially.
11:09And it took a really long time to do that.
11:11So it was very, very slow.
11:13Quite often you get tape errors and you'd have to start the load all over again.
11:17When we first started Apple in the office in January of 77,
11:22Woz would tell me about these ideas he had for doing a disk drive.
11:27He'd had the idea for years before making it a simple state machine.
11:31He started bringing it up and, by God, it worked.
11:36It was incredible.
11:37No one could believe that the disk was just controlled by these six little chips.
11:41Up to that time, everything had been like 40 or 50 chips.
11:44So we were going to be able to offer the disk at a price that no one had ever seen
11:48before.
11:49Not only was he able to make a cheaper disk drive from a competitive standpoint,
11:55but he was actually able to put about 30% more data on the disk
11:58because of a technique that he invented for storing the data on the disk.
12:02And he did all of that work in his head.
12:04The introduction of the disk, I think, is the single largest event that made Apple a real company.
12:11It allowed us to actually mass-produce media.
12:15It gave the computer a level of storage that was hard to believe in those days.
12:21And especially for a machine that was priced as inexpensively as it was.
12:25At that point, Apple began pulling ahead of all of its competitors.
12:29The Apple Disc 2 is released in July 1978.
12:33The drive cost only $140 to make, but retails for $595.
12:38Still, it's one of the most affordable disk drives of its time.
12:41There were two things that accelerated the sale of the Apple II.
12:45One was the floppy drive, and the other was a program called VisiCalc.
12:51When the Apple II was first introduced, there was, like, almost no software for it.
12:55Then, as time went on, a lot of hobbyists, who just loved writing software because they could,
13:02started writing software.
13:04The first major program for the Apple II that really burned like wildfire was VisiCalc from Dan Bricklin.
13:12That was an amazing advance. No one had ever seen anything like it.
13:15It was a brilliant concept and executed very well.
13:18VisiCalc put Apple on the map, not just as a personal computer, but as a business computer.
13:24For a period of about a year, a year and a half, it was the only spreadsheet.
13:29Nearly everyone today who's in business uses a spreadsheet.
13:33But try and think about the time before there was a spreadsheet.
13:37Spreadsheets existed. Oh, yeah, they existed.
13:39It was a piece of accounting paper, a pencil, and a very large eraser
13:43because you had to do it all by hand.
13:46Accountants, finance people wanted that program.
13:50They wanted that capability, and they bought it.
13:54And they brought it into work, and that's how the first computers ended up in the workplace.
13:59The combination of the disk 2 drive and VisiCalc
14:02rocket the Apple II into the mainstream market.
14:05The company went from garage to offices, and then they expanded out of that building,
14:09and then they expanded again, and the next thing I knew,
14:10they had purchased their own corporate headquarters.
14:12You know, I mean, it was bang, bang, bang.
14:16Apple was so successful so rapidly.
14:18We had so many good people covering the bases from marketing to business, operations, engineering,
14:24and Steve himself basically covering the globe,
14:27making sure everything was being attended to that needed attending to.
14:31The Apple II was a pivotal event.
14:33It was the first financially successful personal computer.
14:38This was the first computer to show the business world that there was actually an industry there.
14:44And we were making money hand over fist.
14:46It was wildly successful, and everybody was having a great time.
14:51We're talking about Apple going from zero to $2 billion in, what, five years.
14:55And that was just continuous growth.
14:59We went from practically no computers to everybody having a computer.
15:04If you didn't have a computer, you probably used one at work.
15:07The Apple II is riding high, both in the workplace and at home.
15:11But the company isn't unchallenged.
15:13There's always been a certain amount of religious wars between different flavors of computers.
15:17At the time, it was really Apple users, Commodore PET users, and the TRS-80 users
15:23for the three-day kind of groups.
15:25And all those computers were, of course, completely incompatible.
15:28As more competitors up the ante, the Apple II faces rough waters,
15:32and its ultimate undoing will come from the most unlikely place.
15:44In 1980, there are close to 300,000 Apple II users.
15:48The company now employs more than 1,000 people, and an improved Apple II Plus is on store shelves.
15:54Once again, the young company looks ahead to the future.
15:58Well, the Apple went through a whole series of Apple IIs.
16:00There was the Apple II, there was the Apple IIe, there was the Apple IIc,
16:04which was the smaller, white-boxed Apple.
16:06In each case, they were repackaging essentially the same machine
16:09to try to make it more friendly to the consumers in one way or another.
16:14Apple was very good at marketing and stole some of the slickest software,
16:17especially like a business application that was on the Apple.
16:19But not all the new ideas are good ones.
16:22The company started hiring a bunch of MBAs who came in and said,
16:26wow, really cute company you've built here, we'll show you how to do it right.
16:31A consequence, an example of what they produced was the Apple III.
16:36It was not a brilliant engineer working through design,
16:40it was not even a brilliant idea.
16:43The Apple III was designed more as a direct competitor to the IBM PC.
16:48The Apple III was deliberately positioned to be a business machine.
16:53And a lot of people thought that was really a great design
16:55and something that really could stand toe-to-toe with the IBM PC,
16:58but it really wasn't as powerful as the IBM.
17:01The very first units they had had a flaw in them, they had to recall them.
17:04And the thing got off to a really bad start.
17:06It was so disappointing that the company could produce something so bad.
17:11And that was a major failing for them.
17:13Never really recovered from that.
17:15Steve Jobs was still with the company when Apple III came out,
17:18and he hated it.
17:20But despite Apple's failures, the Apple II still manages to perform.
17:27The Apple line lasted a really long time
17:29because it had a huge install base of software,
17:32which was built up really in the very early 80s.
17:35And that really carried it a really long way.
17:38However, it's Apple that does what none of their competitors could do.
17:41Bring an end to the Apple II.
17:45After the Apple III came out, a lot of people realized,
17:48hey, wait a minute, maybe we should still be promoting the Apple II.
17:51So they started promoting the Apple II.
17:53Then the MBAs and other large corporate citizens said,
17:57well, let's build a better computer, and we'll call it LISA.
18:02Steve Jobs saw the LISA, and he said, wow, this is not going to work.
18:07This is .
18:07That was Steve's favorite saying.
18:10Basically, the board and management said,
18:12stay away from LISA.
18:13You're basically banned from over there.
18:15Steve said, can I go take over this Macintosh project instead?
18:20And they said, well, sure, whatever.
18:22So Steve went over and took over the Macintosh group and said,
18:25we're going to do things differently here.
18:28It's going to be an all-in-one box.
18:30It is going to be sleek and sexy.
18:32And so that's how the Macintosh project really took off.
18:39One of the bad things that Jobs did when we introduced the Mac
18:42is he wanted the Macintosh to succeed,
18:46and he wanted everything else to fail.
18:48So he did everything he could to basically eliminate Apple II sales.
18:54But despite all of that, the Apple II continued to generate
18:58an enormous amount of money for several years
19:01until the Macintosh family did catch on.
19:03Waz's original invention was just so hard to beat.
19:09Today, the impact of the Apple II and its creators
19:12is still felt in the world of computing.
19:14But you find Macintosh users, and they love their machine.
19:17Apple was so successful so rapidly,
19:20and there are people just enjoying what they're doing
19:22and happy, and they're smiling.
19:24I think the Apple II will be remembered
19:27as the first computer that was attractive and was all-in-one.
19:32It really did launch the personal computer industry.
19:37The key figures like Wozniak and Steve Jobs were just iconic to us.
19:42They were the people that we looked up to to say,
19:45oh, you know, no matter who you are, you know,
19:48if you have a good idea and a little moxie, you know,
19:51you can go out and change the world.
19:53It doesn't matter whether you like or dislike Steve Jobs.
19:57You would have to be certifiable to bet against him.
20:01He has done things that no one else has ever done.
20:05He has had his failures, but his successes are spectacular.
20:12You know what? Everything that ever happened in Apple,
20:14the jokes, the friends I have, the people that work there,
20:16how they fought, how we talked, just the best memories of my life.
20:20You know what?
20:26Phone, 1.2 megapixel camera, and holds 5,000 MP3s.
20:31Wow, that's really impressive.
20:34Hold on a second, sorry.
20:37Hello?
20:38Yeah, hey, I'm in the middle of lunch. Can I call you back?
20:40All right, cool, thanks.
20:42So that's a lot of MP3s.
20:44Yeah.
20:44See the best, greatest, biggest, shiniest, coolest,
20:47and blinkiest new stuff coming next year
20:49when The Screen Savers goes live at the Consumer Electronics Show,
20:52coming up next.
20:53Hold on, let me put you on speakerphone.
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