♪ >> he worked alongside steve jobs and became known as the godfather of the ipod. apple, thenecade at started a company of his own, , where he promised to invent every unloved product in the home. snapped it up for three point -- $3.2 billion.

tony fadell, so great to have you here. you were born in michigan, but you moved around a lot. 12 schools in 15 years? tony: there is a lot of positive impact, right? i was able to learn about different types of people. midwest, human, nature is the same, but the way that this is displayed is different. kid, youing the new are always distant from what is going on around you. waiting,nalyzing, if i and seeing what people are doing it, but you're not in it. you are an observer. that helps because it allows me to step back and analyze the situation, not just in the company, but from a product perspective. your grandfather had a big influence on you.

he was a carpenter, right? you guys used to build stuff together. tony: he would hold classes like woodshop or metal shop. when he retired, he still did that with my brother and i. three years old or four years old how things work, how to use tools. i did not know what a computer was until i saw my first one in 1979 or so. studied computer engineering. in 1991, you moved to silicon valley. tony: i worked with another guy to build a startup in high school. we were designing software and writing it for apple ii. i was frustrated because we did not have the internet. i thought i had to get to silicon via you -- valley as quickly as possible. emily: even back then, you are obsessed with apple? tony: i was obsessed with all

things computing in the 1980's. it started with apple to. you worked on some of the precursor devices. decade, youf the probably knew more about mobile devices than literally anybody on the planet. emily: i kept doing -- tony: i kept doing the things i love to do. emily: tell me about when you met steve jobs. partythere was a birthday where i made for the first time. the next time was to give the pitch for what would become the ipod. emily: you gave the pitch for the original ipod? tony: i was leading the charge in talking about what it was. layout oferally a what digital music of the, what the challenges were. there were three different concepts or it the one we

thought the best was the most expensive, the risk is one, and steve was very engaged in very much driving. , but he presentation flips through the deck and jumps around. there was no linear format. you just braced yourself for impact. you throughout conjectures and rolled with it. emily: where did it in? tony: we were going to do this and tony, we want you to lead it. i had been in other executive presentations of where it would take four months to decide. it, commit.f we have to deal with sony. is number one in every audio category, how are we going to beat it. emily: you have become known as the godfather of the ipod. which mak you the father of

the entire product line. , the ipod itself had such a dramatic impact on everything that apple has done since. turning point big , going from computers to consumer electronics. emily: what was your relationship with the stephen leicht? tony: it was professional. friendly, but it was tough at times. a great mentor type of relationship, and there were other times when he would call --on my the best thingt for the customer experience, which is what i loved. i would never trade that for anything. emily: i read that it was kind of like father and son. tony: there were times when we were like ok, we are going to take on the world.

intention, there is an creation. you really need creative tension. emily: you quit a couple of times. tony: it was a dramatic relationship. emily: there is a modern mythology of johnny isakson as the apple design guide. how do you remember it? was it more of a team effort? leadsmes the mythology people to believe -- tony: when it comes to design, there is no right or wrong. there are opinions. different people had different opinions and let the charge for certain decisions. there was an effort between myself, johnny eyes, the marketing team, we would talk about the future and what it looks like, grappling with those things, and there were certain decisions i can make myself, but there were certain things about what it might look like, and johnny had a big opinion on that.

regardless of whether it was me, johnny, or mark, steve always rendered the final opinion on almost anything that involved the customer. it was very much a team oriented thing. tony: is this a mythology that pits you and johnny against it -- each other. as or any truth to that? times when weere saw eye to eye, and there were times that we didn't. a better product. whether tensions? sure. as a personal? no. it was all about making the product, and that is what made the magic happen. emily: -- tony: they come from two different backgrounds. larry less technology and to see beyond the horizon. he is an aficionado of product. steve is a marketing person. he has a local product.

he would look at it through that i. i'm in the middle. i'm a product guy. emily: is tony the next steve jobs or the next larry page. tony: i am just tony fadell. emily: what is different between how you run nest and how steve jobs runs apple -- ran apple? your trying to understand customers as best as possible. it is giving more credit to the team and trying to be more inclusive with getting ideas from people and trying to mold those things and listening to them and not trying to get involved in every little detail. ♪ emily: you ended up coaching some apple employees? tony: i did get a call from steve about that. emily♪

2008, you left apple.

2010, nest was born. tell me how the plan was hatched. tony: i learned a lot about houses with my grandfather. i was fixing them before nest. when he came to designing a home, i wanted to get into every detail. that is when i found all the problems in the home, specifically heating and cooling. when i told my wife that she wanted to make a thermostat, she looked at me like i was nuts. no, let me just explain that this is not just a thermostat. they perked up and said you should do it. cameras,me security and google snaps you up. three $.2o google for

billion. -- $3.2 billion. tony: the first question was whether we should allow google to invest in the company before the acquisition. through building a relationship and getting to know larry and circuit and various people inside the team, we got more comfortable with the executives and the people we were working with her that. , as welltment process as the preceding two and a half years, so we have been dating for a while. we were dating before we got married for two and a half years and got to know each other. the final part was the last , it was this, maybe we should getting gauged the session. should we get engaged? should we have kids? where do you want to live? what should we tell the kids and what should our last names be? of youas there any part that said this is my baby.

they could be far bigger than $3.2 billion. tony: this was an amount money. the number was nice. this was about a 10-15 your vision. i knew we would need big arms to help us get there. toemember how long it took go from ipod to iphone, and you need a lot of research to do it. , peoplebe standalone would say you need to go public or raise funding. i did not want to go public. when you have the gut feeling, you just had to with it. it is like when you get married. you trust your got to you have done the analysis. it is and of the day, emotional decision, not a rational one. emily: you worked at apple, it feels like apple, was apple an option? tony: we considered all possible acquisition targets.

through that, they were on the list. at the end of the day, been there done that, google has massive computing power and research around where we are headed. it is a huge part of server technology and software that we need to pull it off. you continue to run nest is a semi-independent company. how has your role changed? how have the goals of nest changed since this transition? faster. we lay out a 2-3 your roadmap. larry says implement it as fast as you can. i'm not going to go changing it. we believe in this, go. how do you decide what the next new product will ultimately be? tony: sure. first, we each every day run into frustrations, things around the home, why is it that way?

whynext piece is, hey, don't you guys make your roadmap and i will make my roadmap, so we have 5-10 different groups that are making roadmaps, and then we compare notes. emily: would you say you're working on 10 different ideas at any given time? tony: there are new products, services, and marketing, i would take you there are 50-70 things in some state of gestation. how much do you see nest as a consumer technology company versus enterprise solutions? you see potentially emperor structure as a better way to get into homes? tony: this is something i really learned from steve jobs. be a company -- you have to believe what the customers want to buy. b-to-b marketplace, you

have to what they want. emily: you ended up poaching some apple employees. from i did get a call steve jobs on that. i told him that they are coming to us. times, like i said, the love-hate relationship. would steve jobs say about apple if he were here today? tony: he said the iphone would be the legacy product that lives beyond him. right? the iphone is that. that legacy product will take apple for another decade or two decades, right? emily: you are not wearing your apple watch. what do you think so far? tony: i think they did a brilliant job with the hardware.

it's just getting started. emily: it is something you could see yourself wearing everyday? tony: i can see myself wearing it. i just won't charge it every day. emily: so they need to work on battery life? tony: everybody has to work on battery life. ♪

emily: so you volunteered to glass. fixing google why? tony: why not? seriously. we were glasses, it rings, we put on headphones, to think that all of a sudden that nothing on her head is imbued with connectivity is shortsighted. we're seeing it on that recent

-- risk, feet, head, chest. -- we can't toss it away. i think i understand a little bit of the space. wasn't like i threw myself on the fire and said i would do this regardless. process before getting married again. emily: there are some reports foldable, water resistant, more rugged design, any truth to that? all i can say is don't believe everything you read. they will not be for industries, medical, it will also be for consumers.

that is what that you will be wearing. i will not ship anything that i will not wear. tony: you are also a car guy. you are one of the first owners of the bmw i-8. from the carsg you have? termsthe accessibility in of the price points, but we are still 7-10 years away from a mass which over. emily: what can apple do for the car market? tony: a car has batteries, a computer, a motor, and mechanical structure. if you look at an iphone, it has all the same things. scale thatto say in i can make car with the same components, there is some truth to that. the hard stuff is th connectivity and how cars can be

self driving. it is all software and services. when you look at either google self driving car program or the alleged apple thing, it is all through the lens of software first. emily: did you talk to steve about building a car? tony: yes. this was in 2008, what would we build? crazy looking at what a dashboard would be, what would bisbee, what would seats be, how would you feel it or power it. at the end, we were so busy and constrained, it would be great to do it, but we can't. emily: was this something that he was like, we are not doing this? tony: there were a lot of things that he said. didn'tf people said why the ipad turn into a great video camera. tvs are the other one. at the end of the day, what had

the biggest room at impact on the world, cell phones. will focus all of our energy on that. forget those other things. those are interesting. let's focus on a really big market that could incredibly impact well beyond steve's rayna ceo. emily: google is taking on self driving cars as well. my mind every time i go over there and see what is going on. it feels like i am being driven around by a professional driver. regardless of whether it is a taxi or anything, i love those services. most people who drive do not know how to drive. they just don't. they are not professional drivers. emily: tony: how do they tony: make these car safe and well designed and desirable? self driving cars have caught up with consumers. that is what uber is. as far as i'm concerned, they have made this choice. now the question is how to make

it better and more pleasurable. emily: what is next for you? do you see staying at google? tony: i got married. and volunteered and await for google glass. i'm not going anywhere. i love what i do. emily: you said that you regret not being able to tell steve about nest or show steve. what would you say to steve if he were here today? tony: i would just say thank you , thank you for putting up with me. i definitely needed him to help with the mentoring. we needed all the team and all the people who came and joined when there were dark days of apple and there wasn't a lot of money because there were tons of death and nobody buying are things. -- throughme soon that experience together, you have to step back and go, ok emily:. , thank you for doing

this. it was great to have you. tony: thank you. ♪

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♪ rishaad: a look at our top stories, another 20% in tokyo after it's a bce says it may switch to other airbag suppliers. mitsubishi says it may switch to other airbag suppliers. the very survival of the company is in serious doubt. --ing is more likely end then tightening in the near term.

stevens said that while australia was halfway through a decline in mining investments, companies outside the resources industry have generated respectable growth and employment. the taiwanese and president says he intends to remain tainted the status quo with china. the first ever meeting between leaders of taiwan and china. they say it will set a precedent for future meetings. meeting, president xi jinping is in vietnam. the first visit and more than a decade. ofcomes against the backdrop relations strained by maritime disputes in the south china sea. john, what is the significance of this visit right now? 's visitdent xi jinping comes