>> oh, yeah, you can't sit there. >> why not? >> that's where sheldon sits. >> he can't sit somewhere else? >> oh, no, you see, in the winter that seat is close enough to the radiator so that he's warm yet not so close that he sweats. in the summer it's directly in the path of the cross-breeze created by opening windows there and there. it faces the television on the angle that isn't direct so he can still talk to everybody yet not so wide that the picture looks distorted. >> perhaps there's hope for you after all. hi, honey, it's me. >> 80 million people in the country now have cell phones. they're no longer a high-price luxury. >> today apple is going to reinvent the phone.

>> to google means to find out all there is to know. >> how many friends do you officially have now? >> 175 million. >> within four degrees of me are 700,000 people. >> who is barack obama? the answer is right there on my facebook page. >> if you like hilarious, shocking, embarrassing videos -- >> i like turtles. >> -- chances are you spend a lot time on youtube. >> leave britney alone! >> what we're creating is a stage for everyone to be seen. >> we're in a very wonderful time right now where the innovations really are driving the technology right into the center of our lives. >> this should be simpler, more powerful, faster. >> of course the big story tonight is i have an ipad. ♪ ♪ ♪ ♪

♪ ♪ ♪ ♪ in focus tonight, the communication innovations that await us as we head into the 21st century. >> we're in for the communications ride of our lives. the coming year sees cell phones small enough to hide in your pocket. the promise of videophones is coming true. tiny hand-size computers that know your favorite subjects. and internet everywhere. >> there have been technology revolutions in human history

before, but i think this one has been incredibly compressed in how fast it happened, how one thing led to the next thing, led to the next thing, and how quickly it began to penetrate all parts of our culture. >> this is my tivo. it automatically finds and records our favorite shows. >> tivo really, the dvr, was time shifting. >> i don't have time to watch silly things on tv. that's why i got tivo. >> the notion of living a digital life began to take hold on multiple levels of society. >> there's little doubt that the ubiquitous blackberry has become a vital tool in offices, in newsrooms, and in governments. >> it's a wireless information device, and of course it does e-mail. >> got it. and how reliable is the service? can you use it anywhere? >> this is an amazing tool. actually, i use this all over the country. >> the blackberry was the most amazing, magical invention in the history of things you can buy. >> i'll tell you this.

people here at cnn are so addicted to them, they jokingly refer to them as crackberries. >> the early 2000s was a time when people were really paying very close attention to new technology and the internet. >> at the dawn of the internet age, there is stunning new evidence of the growing power of the new medium. internet pioneer america online announced today it is buying big, sprawling time warner, creating the world's largest media conglomerate. >> the aol-time warner merger was the classic dotcom insanity. >> $160 billion. the biggest corporate takeover ever. >> this merger will launch the next internet revolution. >> the merger of time warner and aol wasn't really a merger. it was a purchase. >> i am struck by this image today of the upstart aol gobbling up this media institution, time warner. shouldn't it be the other way around? >> well, you know, it's sort of

startling that a company that couldn't even buy beer is now buying one of the oldest media companies in the country, that took a century to get this big. >> we're just scratching the surface in terms of how great these products can become. whether it's the internet, the way you communicate with people. software is in its early stage. there are some real advances that are going to make a big difference. >> microsoft in the beginning of the decade with their operating system and their productivity software was still very, very strong. >> microsoft chairman bill gates calls windows xp the most important tool that's ever been created. >> at the time, microsoft was 33 times larger than apple. apple was seen as a second or even third-tier technology player that had essentially lost the way. >> we have a 5% market share. and you could say that doesn't sound like too much. but we look at it as saying kind of 5 down, 95 to go. >> in 2000, steve jobs was just trying to save apple from death. >> apple computer chief executive steve jobs is rolling out new products he hopes will

reinvigorate the company and its bottom line. >> the thing about steve jobs that differentiates him from bill gates is he wasn't a programmer. he wasn't an engineer. he wasn't a designer. but he knew enough about programming and engineering and he had enough just innate design sense that he was the perfect curator. >> no stranger to innovation, apple, the company that brought you the personal computer, is opening stores across the country. this will be apple's first venture into direct retail, a bold move in this pretty sluggish economy. now, the question remains if apple builds them, will customers come? >> the common wisdom on the apple retail stores was that it was a stupid idea that would fail. plenty of computer companies had tried it. dell had stores. gateway had stores. nobody went to them. it was just an exercise in vanity. but this concept of open, airy places where they weren't going to try to sell you stuff but instead you could ask questions

about your apple products, you could see demonstrations, you could get your hands on them, is just an unbelievably different approach to retail. and once again, steve jobs figured it out. >> what began the process of taking apple from a niche player to a leader that everyone had to race to catch up to, even microsoft, was the ipod. >> boom. that's ipod. i happen to have one right here in my pocket. there it is right there. >> the ipod was a classic apple device. a chrome mirrored back, a pure white acrylic front. that famous click wheel for dialing through lists and stuff. it was the first mp3 player that really worked and was so easy to use that you developed this instant sense of mastery. you're like, i'm good at this.

>> oh, my god. i could not believe that this little heavy-ass box with this wheel on the front of it could hold all of this music, and i could actually take my music with me. >> everybody would have their cds, and then the ipod came and we just chased that thing down immediately, like, this is going to change our lives. it did. >> i'm one of these people who walks around with these things in constantly. can't take it off. >> the ipod itself had to be loaded using a computer from music that you got from other means. you ripped from your cds or you downloaded illegally. so jobs' next idea was, let's have an online store where you can buy these things legally. >> we decided since no one else was doing this, that we were going to do it. and we started about a year and a half ago to create a music store. music downloads done right. >> apple knew exactly what it was doing. this was not about simply moving units of hardware.

this for them was the beginning of a multifaceted approach at dominating how we, the world, would consume technology. >> the most important thing, though, i think is, what do you do with these things? can we help you express yourself in richer ways? in your music, in your movies, in your photography. and these kinds of things that people want to do. i brought in ensure max protein with 30 grams of protein. those who tried me felt more energy in just two weeks. uhhhh... here, i'll take that. [woo hoo!] ensure max protein, with 30 grams of protein, one gram of sugar and nutrients for immune health. let me be direct. some people are paying more than double for teeth straightening with invisalign. and then there's smiledirectclub. you get a smile you love, directed by one of their doctors,

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nbc news in depth tonight. more on this dark day on wall street and this week's technology sector meltdown. it was just a few months back, if your company ended in dot com, it was a good thing. it meant enormous wealth in many cases, at least on paper. but at the end of this brutal week on wall street, a lot of analysts think the internet bubble is ready to burst and by this time next year, a huge number of those dot coms might be dot gone. >> in the spring of 2000, the stock market starts to decline slowly, and then it's a mass extinction event in silicon valley. >> some investors are licking their wounds today after a number of internet stocks took a hit on wall street. as reports of layoffs at dotcom companies and doubts about their ability to generate profits spread. >> they'll tell you one thing, everything will be fine, we're just going through transitions. the next week we're downsizing. the next week we're closing. >> once we started seeing a sell-off, even companies that

survived -- ebay, amazon -- they all suffered. >> amazon.com ceo jeff bezos. his company's stock price tumbling from $113 a share to less than $16 today. >> it's not the kind of stock that you can own and sleep well if you're a small investor. and i think by the way that's true of all internet stocks. >> there are plenty of people that said, this is just a dip, buy the dips, this is going to come back. i think by the spring of 2001, it was pretty clear that this was over. >> three, two, one. we put this baby to bed. >> shopping is now turned off. >> we know there's a lot of pain to go around in terms of the stock market these days, but aol stock's gotten beaten down even more than the rest of the market. >> aol and time warner was probably the worst deal in history. aol didn't really control the internet in the way they claimed to. >> everything is a lot easier and the internet is a lot more user-friendly. the internet moved towards what aol was doing, so now what is

aol's unique selling point, and are you going to pay $23.95 a month extra for that? >> i feel like my retirement's going up in smoke as we talk here. >> the web was skyrocketing in popularity, and internet users didn't want to live in the walled garden of aol services and all its media content. they wanted to range around on the internet and use new tools like google. >> searching for answers on google. a quirky california company has transformed the way the world finds things out. >> early on in web search engine history, there were actually editors who were trying to make a list of all the good websites. and that's why google's appearance on the scene changed everything. >> google scans over 4 billion web pages for matching results. google chooses these results through a mix of looking for the closest word match and judging a page's relevance by counting how many other pages link to it. >> google came up with a simple algorithm, and basically it decides for itself which are the most important sites, the most likely sites to have the answer you're looking for.

>> that makes for a very efficient search, and word of how it works is getting around. >> when you make a big leap like that, you immediately become the winner. >> obviously, everybody wants to be successful. but i want to look back on making a big difference in the world. >> google's goal is to really organize the world's information and make it universally accessible and useful. >> larry and sergey, they were idealistic. they loved what they were building. and they had this corporate motto of, don't be evil. >> i guess it's your unofficial motto, don't be evil. what does that mean? >> the idea is just that we should be thinking about what we're doing all the time and make sure that, you know, we're doing good, basically. we thought it was really important as google grows in scope and influence on the world to have a philanthropic part of the company. >> the culture of google was very freewheeling. anyone could do anything. >> larry page and sergey brin

said, let's give them 20% of their time they can work on anything they want. >> we'll put that link there. could be the first link. >> if you come here at 9:00 in the morning, the parking lot's still half empty. it's because it's up to the individual and the teams they work with to figure out what's the best way for them to work together. >> you guys finished work? >> no. we're going to go back. >> you're going to go back and work? >> we're working till night. >> they really worked hard to create a community of people. but where they're interacting and they're spurring each other's ideas. >> if you give them freedom, they will amaze you. they'll surprise you with what they come up with. >> the venture capitalists said, you need to bring in a professional ceo. you guys are geniuses, you have all these ideas, but you don't know how to manage anything. so they hired eric schmidt, and he became the grownup in the room. >> what's the one thing each of you worry about most? >> in my case, larry and sergey. no, just kidding. go -- go ahead. >> eric and larry?

>> i don't think any of us expected google to become as big and as dominant as they did. >> google has become more than a verb. it's become part of our culture. >> one day you're using yahoo! to search things, and then who even knows how it changed and then you started using google and it became so easy. >> it came up yahoo!. why did you switch to google? >> i pick google all the time when i look for something. i don't know why. >> one decision, i'm going to google it. every individual who made it contributed to a multibillion-dollar decision. >> now this privately owned popular search engine is going public, and you can buy a piece of it. the company announced it will be selling $2.7 billion in stock in the most highly anticipated initial public offering in years. >> if the ipo of google goes well, that could open the door for a lot of other ipos. >> in the early 2000s, silicon valley was recovering from the dotcom bust. it was a wasteland. but google going public changed that. and you really saw the rebirth of silicon valley.

>> i think their story reminds us of the magic of the internet. and that magic is that an and that magic is that an underdog can become an overlord. right? uhh...nope. intuit quickbooks helps you manage your payroll taxes, cheers! with 100% accurate tax calculations guaranteed. an all-star menu of delicious subs. like #4 supreme meats. black forest ham and genoa salami. you can't stop that much meat. you can only hope to contain it - in freshly baked bread. try subway's tastiest menu upgrade yet.

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everything's changing so quickly. before the xfinity 10g network, we didn't have internet that let us play all at once. every device? in every room? why are you up here? when i was your age, we couldn't stream a movie when the power went out. you're only a year older than me. you have no idea how good you've got it.

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it is one of the fastest-growing sites on the internet with millions of registered users so far. why so popular? because it shows the world is not such a big and unfriendly place after all. >> social media didn't exist in the '90s at all. it really started in the 2000s with friendster. >> we've all heard that everybody on earth is connected, but now there's a website called friendster. >> it's a new internet service that people can access for free at our website at friendster.com that allows people to network online with their friends. >> within four degrees of me are 700,000 people. it's crazy. >> there are 2 million people on this site. what you do is you put in bios of yourself and pictures of your friends, and then you look to see who is connected to whom. >> social media relies on this really ingenious premise called web 2.0. and what that means is that instead of the owner of the website composing the words and

the pictures, we the people do that. >> there are many social networking sites on the web, but in just a year's time, myspace.com has outpaced all the others. >> now with myspace, it's based on what your friends recommend or what other myspace members recommend, and that's how the discovery of content and culture is taking place. >> this younger generation got that what was magical about the internet was connection. >> myspace.com is now the fastest-growing site on the web with 110 million monthly users worldwide. >> you would logon to myspace, and there were your top eight friends, and i remember there being drama between people about why am i not in your top eight? and everybody, no matter how lonely, had at least one friend. tom. >> how many friends do you officially have now? >> i think we're up to 175 million. >> for your official friends? >> yeah. >> i think because myspace allows people to be anonymous, it is also more open to people who are a little bit weird, a

little different, a little bit maybe who want to play games with their identity. >> move over, myspace. college students across the country are, quote, facebooking their classmates. >> mark, if somebody was to put the question to you about the magnitude of what you think you've launched, how big do you think your product or your service is? >> well, it's impossible to tell. when we first launched, we were hoping for, you know, maybe 400, 500 people. now we're at 100,000 people. so who knows where we're going next? >> mark zuckerberg started this company when he was 19. the culture at facebook was very bro' y. there were people in the facebook offices doing keg stands and mark zuckerberg doing an interview in his bare feet. >> chug a beer down. >> no, i didn't mention the beer. >> what are we celebrating? >> 3 million users. >> 3 million users. >> yeah. >> and how long has facebook been around? >> not that long. a little more than a year. >> this is a 19-year-old kid who had dropped out of school and was basically just trying to build something that college students would use.

>> i just threw it together one week in january and launched it for harvard. >> this was in your dorm room? >> yeah. >> you launched facebook in your dorm room. >> yeah. >> there was something about facebook that just took off like wildfire. >> for three years the phenomenally popular website facebook operated as a raucous college dorm limited to those in school and recent graduates. but late last year, the gates were thrown open and older folks, people like me, were allowed in. >> facebook evolved into a way for you to keep in touch with all the people that you want to connect with. essentially, you could describe the internet in that same way. the real value is helping us to connect with each other more richly. >> do you have a budding entertainment star sitting at the breakfast table with you right now? well, thousands of people are getting their 15 minutes of fame thanks to a hot new website called youtube. >> there are all these services to share photos with one another, but when we tried to share videos, you know, we tried to e-mail them, they kept bouncing back. so we thought a lot of people

were going to have the same problem. >> watching videos online was hard. sometimes you didn't have the right plug-in to watch the video. and youtube kind of ingeniously fixed all that, and it did it by just hosting the video. >> it was such a simple thing. all right, let's have a repository online where people can post videos. i think they just executed it a little better than anyone else. >> what we're creating is a stage for everyone to be seen. >> in other words, broadcast yourself. >> and they benefited from viral videos. >> i can't do it. we'll do it live. >> okay. >> we'll do it live! [ bleep ]! >> suddenly we can see into other people's lives in ways that never would have been possible before. ♪ chocolate rain ♪ >> and it's not just each other's home movies. >> alan, alan, alan, alan! >> it's each other's great moments of comedy or tragedy. >> stop.

oh! stop. >> oh, oh, oh, oh! >> oh, no. oh, dear. >> i think she's actually hurt there. >> no, i think she is. >> yeah, she's hurt. >> for a long time the most viewed video on youtube was a baby biting a 3-year-old's finger. >> ow! charlie. that really hurt. >> a billion people watched that. >> youtube was kind of the primordial ooze from which some of the great popular icons of internet culture emerged. ♪ >> you've been rick-rolled. >> it wasn't so much web 2.0. it was the beginning of world 2.0. >> by the mid 2000s, we were dependent on the internet like we were dependent on food.

>> how often are kayla, haley, and lonnie on the computer, on the cell phone, or texting? >> the question should be, how often aren't they? >> with the growing popularity of personal digital assistants, blackberries and the ilk there, people can be reached anywhere, anytime. is that a good thing? >> all kinds of things have changed because of the smartphone. so there are new rules. are you allowed to have your phone at the dinner table? should you be looking at your phone on the sidewalk on a busy street? people are looking at their cell phones while they're driving. >> there is a price that you pay with respect to that accessibility and that is it's always there, it's always available. you never really unplug. >> with all these new technologies, we've become a society of instant gratification. >> i want to download this movie now. i want this song now. i want to read the news now. >> instant gratification has changed our social etiquette, too. we now unfriend people. we follow people. we write on their wall. in the '90s, that was considered

graffiti. >> the more time people spend on the internet in front of their computer, the less contact they have with other human beings. >> every new technology through history has been called the doomsday for our children. our grandparents were told that the radio would rot their brains. our parents were told that the tv would rot their brains. we tell our kids that the internet and their smartphones will rot their brains. it doesn't. so things change, but that doesn't mean things are worse. putting the most advanced technology into people's hands. generation after generation. tool after tool. again and again. bringing you the broadest and most reliable network of service dealers. always moving forward. we lead. others follow. ♪ what will you do? will you make something better? create something new?

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hello. i'm a mac. >> and i'm a pc. gesundheit. are you okay? >> no. i have that virus that's going around. >> during the 2000s, there was the long-running ad campaign of apple that i'm a mac, i'm a pc. and it was the cool versus the sort of anal. >> i'm going to be doing fun stuff like movies, music, podcasts, stuff like that. >> i also do fun stuff like time sheets and spreadsheets and pie charts. >> the idea was that pc was stuck in its old ways and corporate, and that was the thing that inflamed you when you watched. i want to be like justin long. i want to be like the mac. i want to be fun and young and hip. i don't want to be like john hodgman. who was hilarious. >> you never saw me. >> never saw who? >> me. pc. >> oh. >> part of apple's marketing success was steve jobs, who cared a lot about advertising and what those commercials looked like.

>> so that ad got a certain amount of attention. >> steve jobs turned apple from a computer company into a consumer products company. and the consumer products is what not only saved apple but made it the hottest thing in the history of the world, practically. >> all eyes are on apple computers and steve jobs this morning. in just a few hours, jobs will make a very big announcement, and that's all we know. >> this is a day i've been looking forward to for 2 1/2 years. >> steve jobs took the stage and said, today at the apple keynote we're going to unveil three products. >> three things. a widescreen ipod with touch controls, a revolutionary mobile phone, and a breakthrough internet communications device. >> and the crowd is going yay, three new products. he said, "let me say that again." >> an ipod, a phone, and an internet communicator. >> these are not three products.

>> are you getting it? this is one device. and we are calling it iphone. >> i remember my brain was just exploding. i'm like, how -- wait, how can you -- what? explain this. >> let's take a look at a revolutionary phone. >> in decades past, technology had moved in relatively predictable generational cycles. so you'd have a good sense of what the next generation of cell phones, what features they would have. >> we call it the pinch to make it bigger or smaller. >> the iphone seemed like a device that had been beamed into your hands from 10 or 15 years in the future. it skipped an entire generation of technology. maybe even two generations. >> it's the iphone. a new generation of gadget that's a phone, ipod, computer, even a camera, all rolled up in one. i don't know what it is, but i want it. >> take a look at this picture.

at first blush it looks something like rescue workers being applauded. but as the camera widens out, we see it is simply the apple store. >> iday finally arrived. and at the appointed hour the faithful streamed into apple stores across the country. >> yeah, he's a winner winner chicken dinner. did you get one, laura ingle? >> not -- >> failure. that's a failure. >> here it is, the object of all the attention, all the affection, and all the hype. and those umbrellas behind me, people waiting in the hot california sun to get their hands on one. >> the iphone was so transformative. it gave people the sense of what they got when they first saw the internet. it was like a magic trick. >> look how beautiful and small it is. >> apple makes it seamless, makes it feel good, makes you feel cool, and that's what this thing is. you can get everything this thing does already, probably for less money, but apple has made it hot. >> it quickly became the category killer for phones. >> 700,000 iphones were sold

just in the first week. now, you may think spending 500 or 600 bucks on a cell phone slash ipod is crazy. >> $500? fully subsidized with a plan? i said, that is the most expensive phone in the world and it doesn't appeal to business customers because it doesn't have a keyboard. >> microsoft thought the iphone was stupid. they didn't get it. they weren't google. >> the internet is abuzz with word google is looking to expand into the cell phone business. >> you guys may have heard also that yesterday we made an interesting announcement about a little phone. so i thought i'd just show that. >> a year later, google unveils the android phone, which was google's attempt to capitalize on the success of apple's formula. >> the very first one comes out next week from t-mobile, and it's called -- the t-mobile g-1.

so what's it like? well, it's like the iphone. >> they had striking similarities in terms of both use a touch interface. both had a big, wide screen on the front there. both had google maps. both had a way to download apps that worked very similarly, and some of the apps were kind of the same. >> google hopes it will take over the whole mobile market, just as it has done the internet. >> given their relationship, steve jobs felt he had been betrayed by google. >> you're on the board of apple. any tension on the board around the fact you guys are starting to get in each other's business? >> as a board member at apple, eric schmidt was privy to meetings where the iphone was discussed, and steve jobs was pissed. >> the battle between apple ceo steve jobs and google ceo eric schmidt getting personal. >> steve jobs simply hates eric schmidt right now. that's how bitter this rivalry has gotten. >> eventually, eric schmidt had to leave the apple board. the competition was on. >> if google did not act, we

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so in 2007, kara swisher and i were lucky enough to get bill gates and steve jobs on a stage together. it was an interview. >> you know, bill built the first software company, before anybody really knew what a software company was. >> if you were going to pick two people who basically started the personal tech revolution, they were the right two people to pick. >> what's the greatest misunderstanding in your relationship about each other? the idea of catfight, this idea of -- which of the many? >> we've kept our marriage secret for over a decade now. >> these two people were the most significant forces in technology through our era. and to see them together praising each other and jabbing each other a little in the ribs -- >> i know steve's going to announce his transporter. >> it was really a great moment.

and i was lucky to have seen it. >> you are competitors in certain ways. >> we watch the commercials. >> and you get annoyed at each other from time to time. >> i have to confess, i like pc guy. >> yeah, he's great. >> i like him. >> the art of those commercials is not to be mean, but it's actually for the guys to like each other. >> it was always a tension between them. >> pc guy's great. he's got a big heart. his mother loves him. >> his mother loves him. >> i'm telling you. >> the companies were always going to be competitors. but when they got on stage, they were both sweethearts. >> there's that one line in that one beatles song, "you and i have memories longer than the road that stretches out ahead." and that's clearly true here. >> it was a great moment for the two of us and for the people in the room and for the people who got to see it. that was really the beginning of the end of the personal computer era. >> when we heard today that the usually unemotional bill gates

was in tears when he said his final farewell to microsoft, it wasn't surprising. after all, he was present at the creation. >> i love working with smart people. i love working with steve. i love working with all the incredible people here. we've been given an enormous, enormous opportunity. and bill gave us that opportunity. i want to thank bill for that, and i want you to too. >> it was the lost decade for microsoft. they just lost a lot of their clout. they still were a big, important company, but some of these other companies like facebook or google or maybe amazon just accelerated colossally. >> it is quarterly earnings season in corporate america. today amazon.com, the online bookseller, reported that its earnings more than doubled in the last three months.

>> the economy seems to be crashing all around us. what can the people who are now trying to fix what's broken learn from your experience at amazon? >> i would say, think long-term. >> i think the reason that these companies like amazon, apple and google survived was because they unlocked this whole new engine of innovation. >> one of the big motivating factors for us is just creating something that we all want ourselves. >> technology and technology companies became the preeminent force in the business world. something that had started small really started to fulfill its destiny as a major disruptive change across many different industries. >> now with more than a billion searches performed every day plus google images, google maps, google books, google finance, gmail and youtube, the company share of the market is huge. >> when google bought youtube, it was a big deal, especially

for a lot of youtubers. because up until this point you were just making stuff for fun. there was no option or even in our heads like a possibility to make money from it. >> it's no secret that americans love to watch videos on the internet. but who knew you could get rich making them? >> with google's power behind it, youtube was able to grow in a way the startup never could. >> youtube's now so influential, it co-hosted last night's democratic presidential debate. the questions came from users of the site. >> if you were elected president of the united states, would you allow us to be married? >> i don't think that any of us could have possibly predicted the role that social networks would play in the u.s. presidential elections. >> candidates are gaining political supporters the way social networkers find friends. the potential voting audience is immense. myspace.com sees up to 56 million unique visitors a month, and about 80% are voting age. >> while both campaigns hope their supporters spread the word, obama is friended almost

seven times more than mccain. >> the obama campaign happened around a time when social media was experiencing a coming of age. >> barack obama created a movement behind him. he's the first candidate we've ever seen who had an organization that brought together, the internet and community organizing. >> the obama had the internet. he had myspace and facebook. it certainly changed the way that candidates communicated with their base. it changed the way that we thought about how we could communicate and influence candidates. >> one of the most enduring images of campaign '08 is this one of barack obama. >> that barack obama image, it's here, there, everywhere, it seems, this year. >> when i met obama, he said, "i love this image, and how did you get it spread around so fast?" >> seeing the hope poster as a digital phenomenon was pretty amazing. it really made me realize the power of social media to democratize and proliferate. >> we're trying to translate all of that online enthusiasm and

energy to success. >> in three simple words, yes, we can. thank you, south carolina. i love you. >> if not for social media, barack obama would never have been elected president. it gave us the ability to connect to a new generation of voters. >> barack obama will be the 44th president of the united states . this party, and everyone from silicon valley was there, cheering and screaming. it felt like an internet victory. it felt like our world was finally being recognized as something that could change the rest of the world. and it did. wait what?

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i wouldn't know a twitter from a tweeter, but it is very important. >> i don't know what that is. what does that mean? >> tell me, what exactly is a twitter? >> by the end of the decade, there were a lot of companies trying to be the back next big social network. >> twitter is an instant messaging system that allows users to text thousands of other users at once.

messages, nicknamed tweets always begin by answering the question what are you doing? >> when i first joined twitter, it really was people talking about what they ate for lunch. i was on it for 3 days and i thought i don't need to hear about my friends sandwiches. >> do i really need to know that joe in seattle is having oatmeal for breakfast? is there too much information? >> it was really about cutting out the middleman, the middleman in media. it has given me a chance for people to really get to know the real me. >> the conciseness by that 140 character limit was attractive, you didn't have to read and scroll. >> in the past year, the number of twitter users grew 343%, with nearly 2 and half million people on the site now. and i am one of them. >> twitter became, for many of us, a dominant platform for communication, day in and day out. part of the magic of working on the internet, you just never really know how this stuff will play out.

>> deep big news in the computer world, steve jobs, who turned apple from a boutique computer company into a technology behemoth announced today he is taking a leave of absence until june. dobbs job says his decision is due to health issues, which he says, are more complex than he originally thought. >> steve was always a lot sicker towards the end of his life, than he wanted to acknowledge. >> it has frankly been a battle with investors, where he said it is not of your business, i am doing fine, then, when he does give updates, 10 days ago, he says he will be staying on with the company for the foreseeable future. 10 days later, that completely changed. that is the real concern on wall street. >> there was national economic importance tied to steve jobs, and, at that point, stockholders were beginning to ask what was going on. >> the city of san francisco today, apple ceo, steve jobs returned to the spotlight. he appeared on stage at a company event after a six-month medical leave. >> when he came back to work, his voice wasn't weak or anything, i mean, he was drinking more water, but

essentially it was just as it was, when he looked physically normal. >> he has wowed the world, time and again, with his bold inventions, and this week he did it again. >> the ipad. >> to be at the front of the line at the san francisco apple store, you had to camp out, starting at 10:30, last night. and that is just what max ackerman did. >> the ipad. >> i'm really impressed by it. i haven't let it out of my hands, pretty much for the entire time. >> the ipad wasn't the first tablet. but it was the best. >> steve jobs turned a dying company into, possibly the greatest company america has ever seen. >> where do you fit in the american family of thinkers and inventors? >> you know, i don't really think that way.

>> steve jobs is kind of like the thomas edison, crossed with pablo picasso, with a touch of pt barnum, of american history. he has the style, he has the flare, he has the genius, the creativity, the technology, he has the vision. >> a few weeks ago, we sold our 250 million ipod. >> a couple of the machines that steve jobs created, you have access to absolutely everything in the world. that takes a brand of visionary, who was always asking why not? >> 70 once called me the ico a year ago and i like that, so i'm going to choose that is my title if it's okay with you. to remind myself of what is really important, which is, of course, the internet. >> when the internet first became available to the public, i think a lot of people could easily see that the possibilities were so vast that your brain just went into sparks.

>> i think facebook is more valuable as you get older. you have interacted with more people, maybe you have lived in more places. >> we all grew up in the same neighborhood, and we found each other again on facebook. >> it makes me feel connected. i go on that site, and i am home. >> the technology existed. what we needed were visionaries who understand how technology could be put to use for the consumer. >> how has a change the world? always work hard on something in comfortably exciting. >> the people who can connect, the can-do of technology on the want of consumers, they were the people that we would be talking about for years, afterwards. >> no problem. >> if you were to ask someone, what is the great innovation of the world, silicon valley is the first, and what is the second? people would be muted, i don't know. >> during the 2000, there was an explosion of ideas. >> this is the new ipod mini. >> we had an acceleration of

evolution. that just got going faster and faster and faster and faster. and in the course of a decade, the world was changed forever. >> i assumed you had nothing, you are just people sitting by a phone. or a computer, and people would be like i want a bicycle and it would come to amazon and you'd be like we need to go find a bicycle and then you would run out and get a bicycle and you would write amazon on it, and you would send it to people's houses. i didn't know you actually made things. >> well, we started working on this four years ago, but we pretty much do what you described. >> thank you. >> let me ask you this. why is it if i wanted delivered in three days it's a dollar 50, but in today's it is $85. >> you need-- hey. video killed the radio star, now has the internet killed the record du