it represents a power and a democratic ethic it does not possess. it seeks to perpetuate prosperity by borrowing trillions of dollars it can never repay. the absurd folly of trying to borrow our way out of the worst economic collapse since the '30s is the cruelest of all the recent tricks played on american citizens. we continue to place our faith in a phantom economy, one characterized by fraud and lies which sustains the wealthiest 10%. that's chris hedges writing in "empire of illusion." he is the author of nine nonfiction books, and he has been our guest for the last three hours here on "in depth." very quickly, here are his books. war is the force that gives us meaning, what every person should know about war, losing moses on the freeway, american fascists, i don't believe in atheists -- which is now when atheism becomes religion --

collateral damage came out in '08, empire of illusion, a bestseller in '09. another bestseller, death of the liberal class in 2010, and the world as it is in 2011. mr. hedges, thank you for being on booktv's .. isaacson speaks at the computer

history museum in california for about an hour and a half. >> welcome to the computer history museum in. i am john hollar. welcome on behalf of the trustees and our staff and members. everybody associated with the museum. we're delighted you are here. i want to thank our good friends at intel who sponsored the revolutionary ceres. season one as we are calling it provided support for this series. in connection with revolutionary i am delighted to announce tonight a very significant partnership with kqed. and the computer history museum have partnered to produce a 13 part series that will premiere on public television called c h m presents the revolutionary. the best of our speakers series featuring people you will have seen or heard personally at the museum or on our youtube channel

or kqed. kqed and c-span are here tonight. the letter on january 16th will go for 13 weeks. walter isaacson, mark zuckerberg and ibm chairman sam paul meson know and jeffrey katzenberg, david for richie, inventor of watson, paul allen, jane madonna goal, expert in gaming around the world, pulitzer prize winner james smiley, and a biography of google. ouster of blackhawk down who is here with microsoft x new book, the first digital world war with

john markof. bill draper with kqed's david irishman and microsoft, peter nor back of google, two of the leading aig experts of the world. this is quite a line of. we feel very privileged to have had every single one of these people on our stage in the last 12 months and we are looking forward to kicking off season 2 in january. keep an eye on your mailbox, e-mail and the museum news mail because we will talk about more about lecture series to come. now on to our program. steve jobs was on stage in san francisco making one of his legendary presentations. the kindle the reader comes up and steve jobs said this will go nowhere. being and characteristically blunt. he said it would go nowhere because americans have stopped reading. it doesn't matter how good or

bad the project is. people don't read anymore. 40% of people in the united states read one book or less last year. the whole concept is totally flawed. is it true that people are only read one book this year? we know which book it is. [applause] despite its late arrival on october 28th shortly after steve's tragic death it went immediately to number one on amazon. nearly a month before its release and ever since then it has dominated every bestseller list in many parts of the world. walter isaacson has been at this for a while. he is not only distinguished journalist, former chairman of cnn, managing editor of time, president and ceo of the aspen institute but next year will be the 20th anniversary of his first major biography, that of henry kissinger.

today he has added biographies of benjamin franklin, albert einstein and now this book on steve jobs. walter and i talked a few days ago about opening this evening with something special and featuring items from our landmark election which you can see here on stage. walter will introduce -- in lead be dressed in black turtlenecks. they have speakers underneath the podium here. we have 3,000 items in our collection from apple. it is one of the largest collection of its kind dealing with apple. after steve died when we were looking through the collection to find out what was the best of the best we discovered something amazing. it was a videotape that regis mckenna nejd in 1980 for 25-year-old steve jobs making the 22 minute presentation at stanford on the roots of apple and his vision for the company. we have digitized that and put it on our web site at

computerhistory.org. it has never been seen before and we will play two minutes of it tonight and i hope you will be amazed as we were when you see it. >> [inaudible] >> we liberated atari. designs for the last six months. at 4:00 in the morning we got it working. and in 20 or 40 -- and liberate the parts.

talking about building computers. we got the idea one day that we could make a printed circuit board. bringing circuit boards to our friends and cut the assembly and find out. so -- the calculator -- got $1,300 together. this pc board way out, $1,300, we would sell circuit boards twice and hopefully the calculator and transportation. that is what we did. i was trying to peddle pc boards one day and -- paul terrell said he would like to take 50 computers and ice are $ in front of my eyes. the catch was he wanted them tested and ready to go which was

a new twist. we spend five days on the phone with distributors with distributors to give us $10,000 worth of parts. so we got the parts -- we sold 50 of them for cash and we got started. >> ladies and gentlemen, please join me in welcoming walter isaacson. [applause] >> how great it is to be here. [talking over each other] >> can i give a shout out to steve was neck and his wife joyce? stand up. anti hartsfield. all the history is here. totally intimidating me because

i keep looking over at people nodding were shaking their head. wasn't that way exactly. i look over there. that is my cue. >> this is silicon valley. they won't be that played. >> we are so happy to have you here. let me ask you about your very first meeting with steve jobs in 1984. you describe yourself as junior editor of time. he comes to new york to demonstrate the mcintosh. >> you see both sides of steve. absolutely passionate side. there he is with the or original mac sitting there, auld it looks like it is smiling at you to make sure that the strip shows it looks like a friendly face. not 8 neanderthal face and shows as the icon and you can tell he is passionate about every pixel. he is also furious at time magazine. we are not nearly as good as newsweek.

won't name his name because he lives here had written a horrible story about him and so i saw the petulant side. that is when i'm started to realize that the impatience and petulance and you sometimes saw in steve jobs was connecting to the passion. >> you were meeting incredible people at 1/2 incredible people during your career. was there something special about that encounter? did he make a particular impression on you? >> i was a member of -- mesmerized by him. he is a compelling person. that is what he was. he is telling you these stories. he was up -- had not been made man of the year in 1982. i have been an idiot and a wrong side and voted for par la volcker. none of you remember who par volcker was but we had done low machine mosaic, machine of the year. but you could tell the first time you met steve jobs that

there was something compelling about him. flash forward 20 years in 2004, he gets in touch, give me a call and i just go in and we talk a little while. wants to come and speak? i want to take a walk with you and after a while he says why don't you do a biography of me? suggests that i had -- just finishing albert einstein. i thought okay. franklin, einstein, steve. a logical progression. >> i am sure that was on his mind. >> i said you are a really great subject but let's wait 30 years until you retire. it wasn't until 2009 when he had his liver transplant and went on medical leave that it sunk in he was fighting cancer, he had transformed a wide friday for

home computing and personal computing but by 2009 transformed the music industry with ituness andy ipod. the way we listen to music. the phone industry tablet computing. that is when i said this is too good to pass up. >> do you have a theory about him going into this? >> i had a theory because his very first phone call when we started talking about it, he told me something edwin land said to him which is that you always want to stand at the intersection of liberal arts and sciences. right there between the he manatees and the humanities and technology or engineering. that is something we kind of lost in the cp snow either a. you are either in the senate -- humanities or the sciences. my theory among others was that

connecting creativity to wonderful feat of engineering was what made him so magical. >> you wrote something in the book, a quote. his passion for perfection led him to an instant to control. i want to talk about the editorial control question because you must have had that fairly early on. how did you do that? >> i was stunned because it never really came up. and then after a while he kept saying it is your book, it is your book. i am not even going to read it. people don't read books. bearded is yours. bar where i wanted to be honest. i want you to interview people who didn't like me as well as people who did. he said he was brutally honest his whole life. he said he did not want it to feel like an in-house book. he wanted to feel like an independent book and therefore

he was going to exercise no editorial control. >> has that ever change? >> one time he did which fits into the theory that people don't read books but look at them. simon shuster a year ago put into the catalog the cover design that was a place holder and it was a cover of steve and an apple with i see as the title. i landed in san francisco airport coming to product launch he was going to do. can't remember which one. maybe the ipad. i saw the thing you least like to see on your iphone which is six or seven missed calls from steve jobs. you know san francisco airport i am standing in the concourse and he starts yelling at me. you have no taste. the title is gimmicky and it is ugly and i don't want you to come to the demonstration. i am holding the phone and finally he says i am not going

to continue to cooperate unless you allow me to have input into the cover art. it took me somewhere between a second at a second and a half to station or. the greatest design or something like that and he spent a lot of time just trying to make it a very simple, clean cover. so that was the one time i felt his wrath and also the one time when he had editorial influence. >> you talk a lot about -- you quote his friends who coined the term reality distortion. did you find yourself getting sucked into that from time to time as you started working with him? >> you would be the last to know. reality distortion is about -- talk to me about it and revolution in the valley but it was -- the engineer comes from a star trek theory which is simply

by thinking something and being convinced of something even if it is impossible you can convince other people and the secret of the reality distortion is it sometimes works. that you convince people they can do the impossible. he talked about that to me in his own book about steve saying you have to do this in four days. one of the atari games they were doing and it can't be done and steve said you can do it and that was the reality distortion field and four days at had been done. the question of whether i got sucked into it, i found myself deeply emotionally vested with him. i tried very hard to be honest in the book, to put 0 fingers and all sides in the book.

there will be people in this audience who no more than most. if you read the book and say this guy got caught in a reality distortion field, and guess the answer would be yes. >> one final question about the process of writing this book and we will move on. >> whatever you want. >> you had the luxury of a long historical attachment from einstein, benjamin franklin, here you are suddenly writing a biography of a very compelling living person a close and personal with him in 40 interviews. how does -- maintain the necessary detachments you can enjoy spending time with einstein or franklin? >> a couple things. when steve did his stanford speech he said let me tell you three stories. you become a story teller. you don't try to breached.

i tried to let the story tell themselves. one of the things i discovered by having so much time with 150 other people who worked with him was how much more we know or i could know about him is and i did about benjamin franklin or einstein. benjamin franklin wrote a lot of letters. 40 volumes of papers. einstein they're still compiling his papers so we should know more but like the -- flying the kite in the rain. one little journal entry be delayed newspaper clip but with steve, everything that happened i would hear about it at great length and other people's versions of it and i probably ended up knowing 100 or 1,000 times more about him and each story in the book than you would doing somebody who you are doing through letters and journals. >> let's talk about the

storytelling. the place i would like to begin is his partnership with what the act --wozniak. >> it starts at atari doing games where steve is on the night shift and they find it easier to work with him when he is on the night shift and he learns a lot at atari including the notion of how to juice up checks and do amazing things. you have to remember games like pong and breakout and star trek had to be so simple that a freshman could figure them out. the instructions were in sort quarter, avoid calling guns - l --klingo --klingons. that simplicity that embedded in him. one of the few copies at the history museum of the blue box which was started, i think, when

esquire magazine wrote about the phone for readers who could replicate the bell system's town and make free phone calls so wozniak and steve jobs that we have to do this. they went to a linear accelerator laboratory, found the bell system manual and made an analog version of that that didn't quite work. wozniak goes to berkeley but he is able to make the first digital version of it and you see the partnership. i can't see whether he is shaking his head or not but woz comes up with this amazing circuit board but loves to show it off. we can package it and we can sell it and make money. they start going door to door in rooms at berkeley selling this thing. at one point testing it out by

calling the vatican and woz pretended to be henry kissinger saying he was at a summit meeting and needed to speak to the public. i can see woz nodding at this one. as far as i can tell they never really got the pope on the phone. the college of cardinals was smart enough to figure out it was not henry kissinger calling but they should this thing off and steve told me when he described as that story and the blue box story that if it was not for the blue box it wouldn't have been apple. that is pretty profound. >> why did he feel that way? what did they do together? >> very complementary meaning they complemented each other well. he would say to woz that 50 times better than an engineer, define great circuit boards. woz had been taught being an engineer is the highest calling so he never thought about putting it in a package or maybe we should get the good power

supply and integrate and may be sell it twice or three times the cost of our materials. so what steve did as he did his whole life leaders will take really great ideas and come up with a great vision and pull it all together to do something amazing and i think that was the perfect partnership for somebody who could design a circuit board with one quarter of the number of chips that any other engineer would take to make it work. >> we were talking earlier about the process of invention is not singular endeavour. it is not one person sitting in a room finding out -- >> talking about the james smiley book. >> it really is about that collaboration. when you think of einstein was there a relationship? you found through history as a journalist that these relationships occur over and over? you find wozniak and jobs --

>> with einstein it was a true solo act. especially the greatest of most elegant of theories, general relativity. he is pacing alone in his apartment in berlin for months on end and unlike most other physicists at the time, max plank and neils bohr he was not collaborative. even though steve was sometimes tough on people, through the created teams like the or original macintosh team of which anti was a part they bonded together like pirates and steve was able with his inspiring way and demanding way to create collaborative teams and he had done that until -- his whole life. even now, the past eight or nine years at apple you have had an intensely loyal, great collaborative team. >> so apple gets up and running.

>> they start with just to give a shout out to everyone in the whole product. >> all our friends here. >> the apple i showing that was what you heard on the tape where they go to paul terrell at the bike shop. it gets up and running when they create that circuit board and they put it all together. steve the side they have to incorporate like subsidies or 1.-- 1.$6 million. steve jobs and wozniak designed when they put together apple. the way steve tells me the story he had worked on the all one farm leaders they commune run by people at college, dropped out of the apple farm. he was tending -- seeing apples and come back from the apple farm and says ok, we are going to create a company and get all

excited that not all we are we going to make a product but we will have our own company. they couldn't figure out what to name it. matrix and personal computers and everything but steve says what about just apple? apple computer's. counterintuitive. makes your head snap a bit. the wish of the counterculture but also as american as pie. we can't think of a better name within a day we will register as apple computer and by the way it is in front of atari in the phone book. >> important marketing angle. >> they begin to work on the apple i. they put together this team in the early history of the period but there's another ingredient that has to come along to make it work. >> first of all you need money.

what they are doing is going from the apple i to the apple ii. notice among the differences jerry mani -- vanik and others create beautiful casing and plastic molding. it is going to cost a lot of money. you can't just cella vw bug and hp calculator the way they did apple i. they need investment capital. mike mark cohen of. s a long and signed a line of credit and also gives steve a great piece of advice which is a marketing document with three concept on it. one is to focus. really keep your focus. the other is empathy. not the perfect word for it but basically make an emotional connection with people who are going to buy your product and

the third is not a great word. the words in cute. it means cast an aura around whatever you do so that the minute -- steve throughout his career had his own personal name on the patents for the boxers. the packaging of the apple products. when you open up and they always had the ipod cradle, was something really cool just the way it was. that is what the apple ii does. it is a really cool machine. >> as primitive as it looks to us today he obsessed with the curve of the corners on the edges. >> and all the design elements. he had been fascinated by the sony style. when they moved out of the garage they were in the little office and next door is a sony show room and he would fondle the brochures and he went to

aspen design company and having grown up in the joseph eichler house and joseph eichler average citizen and the books with kepler but those homes were sort of mass marketed frank lloyd wright style homes for the everyman but it was simplicity. that style. make it simple but the simplicity is the ultimate sophistication. so clean, what, simple become the style for apple. >> it is about this time as apple grows as the company and the apple ii takes off and selling hundreds of thousands of units, the phrase in the book surfaces temperamental and brady and it seems at this point there is an almost -- there's a kind of break out, very particular kind of breakout where that side of steve jobs is very petulant and temperamental and brassy is

out. it starts to rain on people. >> it was temperamental. that is why he was on the night shift at atari. doing something new. temperamental people also have the temperament of an artist which is why you have a passion to have end to end control of a product and make it perfect. that temperamental less -- fair regional president like scott, scotty tried to temper jobs and didn't work too well and they bring in john scully who is a very polite gentleman to try to handle steve. with steve you got the whole package. temperamental was a part of it and it showed in how he cared. i told a story in the book with steve walking me by his house he grew up in when he was very young and his dad, build a fence

and showed me the fence and my dad taught me to make the back of the fence as beautiful as the front. i ask why? no one will ever know. my dad said but you will know. and that is why even on the apple ii he wants a circuit board to be beautiful. when they get to the macintosh the next one over, even though you cannot open at he holds it up for a while because the chips on the circuit board are not neatly aligned. nobody can open it. nobody will know. he says you will know. the other thing that is interesting talking about steve wozniak and steve jobs and those things is steve jobs had the passion of an artist to have end to end control. hardware, integrated with software, don't open it up. woz was much more open. license out the software but on

the apple ii it had a slot. you could check into it. you could open it up. you could get to the circuit board. steve jobs was against having slots. he wanted as an artist would, wouldn't want bob dylan saying let's have and work opens force on the lyrics for everyone to put words in. he didn't like people jacking and opening up. woz insists he wants the apple ii have these lots but mcintosh doesn't. mcintosh doesn't have screws you can use to open it up and that was very steve jobs-like. all the way through his career really believing in tightly controlling like the gardens of kyoto that he loved to visit, carefully curated, carefully tended by one artist's sensibility. >> let's move to the macintosh era. so much is going on, so much growth. his personal courtship of john

scully begins. talk a little bit about that. >> it was a bad mistake. it was almost like he saw john scully as a father figure or a mentor. john scully really wanted to be cool and hip and wanted steve's approval. for a while, the famous line in the san remo apartment that steve is thinking of buying and brings john scully off of central park and john scully is demureing and steve says the want to spend the rest of your life selling sugar water or do you want to change the world? john scully comes and john scully is a man of perhaps cool sensibility, great matters, very kind, but it is hard to deal

with conflict. steve -- why were you -- the price of admission to being with me as i got to be able to tell you you are full of it with two more letters. and you have to tell me i am full of it and we are going to really do care it out and john scully was not that way. secondly john scully was basically a marketer. having run pepsi u.s. he didn't sit there worrying about the product. he was not fiddling with the formula for dorr rios and saying i can make this insanely great. it was shelf space marketing. i think steve after a while felt that john scully just didn't get in to how awesome the mac was and it didn't help that the mac even though it was insanely great john scully priced it at $2,500. it did not solve very well.

microsoft started licensing out its copied version and dominating the computer business. i think their relationship was doing fine as long as apple was doing fine and the apple ii was a workhorse. it was making money for the company but the mac didn't. there was a horrible falling out that culminates in 1985. >> before we talk more about the falling out in the post 85 period let's talk about the invention of the macintosh, the design itself. this is the point in the book where you insert the famous quote from steve jobs, good artists copy. great artists feel which he took from picasso. he would that we have always been shameless about stealing great ideas. that quote is often associated with the genesis of the macintosh. the interface -- >> take two visits to xerox park

and as you know xerox will come up with the concept of the desktop metaphor, graphical interface. the bitmap design, each pixel can be mapped to the microprocessor. so you can make a beautiful machine. we are -- if you can go into this museum here to remember those green fossil letters, c prompt with c:\ whatever command. it was awful. and suddenly time magazine we get the mac and you can click on the document and the rag and a drop. i do a whole big section on the visit to xerox park and the misconception that they just talk. graphical interface -- it takes two years of the most amazing designers including andy and others on the team to take the

metaphor that xerox used and to really make it great. xerox came out with a star two years beforey came out. it sold seven copies with all of america. it was a bad machine. what they did when they took that metaphor was to say we will take the missiles with three buttons and totally simplify it and you will click and drag and drop and double click and open things up and invent pull down menus and bill atkinson clipping where you have documents looking like the top of other documents so it looks like a messy desk top. none of that was in the original graphical interface. i think first of all they take the xerox metaphor and make it insanely great. secondly, t. s. eliot's line their fault the shadow between the conception and the reality they were able to execute on it

which xerox and others warned. it is true that part of steve's genius was looking at 1,000 ideas at any given point and say that was great and this one sucks and this we can ignore but flowing together ideas including ideas from xerox park. >> this is one of the times he is pushing this team incredibly hard. >> reality distortion field is then cleaned. one of the engineers -- >> the boot up machine. steve says it is taking too long. have to shave ten second off of the boot up sign. he says you can't. it is a really elegant piece of code. i can't change and steve said if you could saving human life would you shave ten seconds off? and he goes yes. so steve goes -- say there are 1

million macintoshes and ten seconds every time somebody boots up and in given year, multiplies this out, you can save this number of lives every year if you shave off ten seconds. an example of the reality distortion field working. within 4 weeks he shaved off 28 seconds. everything about that, you see the screen. it is a rounded rectangle. bill atkinson -- i will get corrected -- he is doing what is called the primitives that you can easily put on the screen. he does a square which is easy and a rectangle and that he does a circle which is hard because the microprocessor doesn't do square roots but figured out a way to do a circle and steve says you need not only a rectangle and a circle but rectangle with rounded edges. the guy says no. that can't be done. why do we need it?

steve makes him walk around a parking lot and the neighborhood pointing to things like windshields and billboards and no parking signs and screens of computers saying rounded rectangles are what people see every day. they are more beautiful to look at. actions in came up with a primitive -- even those thin pinstripes on the pull down menu. even the susan care doing of the funds. steve was there taking that calligraphy course when he dropped out of read caring about the spacing on each one of those funds. >> the perfection that he was seeking at that point and the almost impossible task he was asking people to perform engendered in the book as you

reported two completely different camps it seems to me of people who work for jobs at that point. the people who -- he would push you and you would be better for it. and then there are others who say the worst experience of my life. if you balance not only in this case but in other cases the number of people you encounter who felt one way, tremendous affection and the other people who felt another way. would you say -- >> there are three categories. lot of people felt both. it was a really agonizing experience and the best experience but he especially with the macintosh and even with the team today. the overwhelming number say he pushed me to do things i never thought i would do. he drove me nuts at times. it was the greatest experience in my life.

>> premier the great commercial -- talk a little bit about his view of the creation. >> 1984 ad is interesting because steve jobs's sold, you do have the heart or soul of a member of the counterculture. rebel. misfit. think different at a feels to the misfits and those who think different. the 1984 ad is an incredible cultural landmark and icon. because of the orwell novel we had been thinking up until then have computers as being centralizing and controlling and the province of the pentagon and the power structure and big corporations. phone notion that a computer could be personal and empowering to the individual had grown up a bit in opposition to that. the storage brand whole earth catalog few of computers for the

people and steve was in that mentality. he also liked to think of himself as part of the hacker as those. the problem with that is as i said he doesn't want slot. doesn't want it to be open. doesn't want you to be able to hack in. in some ways he violated the hacker ito's by creating an appliance you can't open up as opposed to put your own software in here and plugs things in. but he wants to a search that i am still part of that hacker ito's fighting the establishment and that amazing end, release got who had just done blade runner, in london, the woman being chased by the thought police and all of that, big brother on the screen and she finally -- decimates big brother

and then says apple introduced mcintosh. 1984 won't be like 1984. so they show it at a board meeting and all the board members are like this at the end. i think it was phil show line of macy's, california who said who make the motion we find a new ad agency? john scully is suffering of that he decides he is going to water them to sell back the advertising time on the super bowl and not run the ad. steve is furious. at one point showed the ad to woz and woz says why not japan and pay for the ad? on those super bowl -- they don't need to because the wonderful people who would become giants they -- changes to name every few years -- lee cloud, brilliant genius who helped do the ad and the guru of

advertising at apple ever since sort of says we can sell the time back. they sort of the phi and somehow don't selva time back so the ad runs and runs only ones nationally, but it becomes by many estimates including tv guide and advertising age the best advertisement of all time. >> it doesn't sell well. >> which it does. [talking over each other] >> it should be on youtube. >> we can play it on youtube. >> wonderful commercial. great premier. doesn't sell well. remove from running the macintosh division. that begin the end for him, his relationship with john scully. there's a massive blow up at the end. you go in the book day by day. >> seven days in may. >> fateful week. >> talking to everybody there.

steve twice during that week tries to counter coup, brings people to his house. they all sort of plot that they know steve should not take over the company and it is one of the great learning experiences but he feels abandoned. he was going through a period of undoing because he had been adopted. that abandonment and father figure. parter rock was a father figure. john john scully and they go around a room and vote against him and abandon him and he really takes a hard. >> how did you recover from that? when he talked to you about that period, that pretty dark time, what did he say? >> he described vividly every single day of that week including where the food came from when he was serving it on the patio when they brought mike

marshall around. still seared into his mind. >> almost 25 years later. >> memorial day weekend of 1985. the goes to europe for a while. bicycles around. he then talked to some people and comes accounts of the next computer. by the end of 85 has recruited a handful of people from apple causing a lawsuit. this is really bad at this point because the board and john scully thank you are stealing our people and create that. he says in the stanford speech and said to me being fired at apple was the best thing that happened to me. liberated me and helped me change. i think it was the experience that in some ways liberated him and matured him more. >> why was that? >> there was no board of directors and no ceo brought in. he could indulge every instinct.

>> his instinct against paul rand, grand old designer of logos. $100,000 to do the next low go before they have anything to get a beautiful headquarters with a patented staircase. you can see in apple stores, he wanted his own -- he wanted the next to be a perfect cube. those who have been involved -- usually draft angle means 91 degrees or so so you can actually pull it out of the mold. exactly 90 degrees is harder. exactly 90 degrees. and had to do a special -- had to be matched black. everything about it was him in solving this -- indulging this drive for perfection including building a factory in pure white and robotic. it is a glorious machine that is

an absolute market failure. at the very first macintosh of sight, he does a series on the white board and the first one is don't compromise. that is a great inspiring maximum. it is also not really a great way to run a business. as ben franklin said compromises may not make great heroes but they make great democracy. at a certain point you have to learn how to make trade offs. don't compromise mentality, he had it for a while until he realized you don't have to compromise your principles but you have to have some sense of balance. that is what he learned. simultaneously was doing picks are. picks are is a wonderful example of what we said at the very beginning, the intersection of art and technology. friend of his brought him to george lucas's to meet some of

george lucas's people. lucas was getting rid of the digital animation software and hardware division that he had. steve thought that was really cool. he thought he could make consumers and the ability to do digital rendering. that never really took off. one guy working there was in charge of showing off how cool the machines were. he made a couple -- and one called ken cory and caressed as they say is biography if not history. it least toy story so it is the transformative thing. >> he said something profound to you in the book about that period. which is the string that running piexare, the strain on him has something to do with eventually

getting cancer. >> i don't think that is the case. i don't think you get cancer from working hard or stress. [talking over each other] >> he felt that way and it was great stress. he was driving up to highxare an ends of going back to apple. i think that was a time of great stress in his life and also some unhappiness. those machines are not selling. pixar was a hardware software company and no one is buying it at, disney bought a few imaging machines but it is not selling that well. so for a while he is hemorrhaging money at both companies. >> and also one of the most widely created at pixar was producing these phenomenal -- >> by the time they produced toys story they no longer were

hemorrhaging money. >> did he long for apple during this period? did he ever fully give up on the notion -- >> apple was his baby. apple was his child. i don't know that the long for it but he was deeply frustrated that it was being screwed up. after a while they weren't inventing new products and they kept coming up with more lines of mcintosh. couldn't even create an operating system, and so a i think he is watching people screw up the baby created. they can create an operating system. at a certain point, amelia who was then running apple's as i got to buy an operating system. dos and even microsoft.

adopting windows would have been weird. and then there is this amazing operating system that steve jobs had done with -- a unit colonel to which is what apple needed. so apple decided to buy next to get the operating system. but to get the operating system you also have to get steve jobs. i am not sure -- i think it was bill amelia at meets steve jobs, game over as soon as steve jobs is back in the saddle. >> you tell that story. amelia tried to resist that but found himself -- >> game over. >> reality distortion field kicks in. >> then begin arguably one of the greatest decades any corporation -- >> totally stunning. first of all he creates with the

new operating system he brings bill gates, his doppelganger, binary star system, love-hate relationship, bill gates makes an investment and starts making microsoft word and excel and others for the new mac os but he truly focuss on design. you remember and probably have it here but not on stage the first imac. he meets johnny when he goes back to "the death of the liberal class" 97 and they form this bonding and create the imac -- looks like a rabbit on your desk. steve says that is not good but they keep playing with the model. they make it translucent beyond the blue. they go to a jellybean factory to say how the make it look right? let's you see the circuit board inside to see how neat that

circuit board is. downie i've comes up with the option of putting a recessed candle and the engineers say that will cost so much money. don't need a handle. you are not supposed to pick it up. with steve and johnny understood was computers were still intimidating to people. but the handle gives you permission to touch it. it says i am at your service. by having that recessed handle even if you didn't use it you felt that the computer was being deferential to you. that beautiful design and when they have flat screens they take the imac and johnny design and steve says no. integrity to be flat screen. you screwed it up. he goes home. on the comes back to steve's house in the backyard. plan to all these sunflowers. they walk around trying to figure out what to do and finally you get that beautiful imac with the little dome with the sunflower so that it has

integrity. and everything they do weather airplane with plastic or titanium or metal is distinguishing apple from those commodity machines that dell and h p and compaq were turning out. >> once he writes the ship with that strategy he makes incredibly bold decision which is in 2001 it is not going to be a computer company anymore. >> they used to take the top 100 and the law on the trees and say here's what we do next. everyone would fight to get on that list and finally the list ten and steve would cross off the bottom six for seven and say we could only do four. it was stay focused. when he went back to apple, focus on four things. desktop, laptop, homan, professional. we won't make 20 lines. we will make four. when he nails it and get that

right. the top of the list is a consumer devices, product. what he does is he realizes you can create a digital hub where you can put your video camera, fire wire connected your computer and manipulate your video, create dvds. one thing he screwed up slightly was he wanted a tray slot in the new imac. he was furious -- he wanted one of those pure slots and when they put a tray in he was furious and made them change it to just a slot but it meant you couldn't burn music cds when panasonic and others came out and he was so focused he was focused on video. doing dvd and that sort of thing. he called up adobe and said you got to make your video editing

software for the new mac. i am like bill gates to says he came down and made microsoft for us and the people left adobe said too small market share. he never quite for gave adobe which is why it worked on your ipad. but the mark of a true genius of the company is not when you think of things first but when you actually fail to think of something first can you leapfrog. can you catch up. he realizes he got out of the music business that others were making cd burner trays and people -- all of us were making -- downloading music from the nectar and making play lists and you couldn't do it that well so he had to leapfrog and he says we will do it by making a perfect end to end thing with a jukebox software which is

itunes, the store in which you get your music. device itself. when they start making the ipod, he makes it so simple because it is end to end integrated with the old saying. you can take the complexity and put it on the mac or itunes software so the device itself is not one of these complicated and the 3 players that you have to figure out how to do it. you can just look at it with that track we landed is intuitive and kept saying i want to get to wherever i want, whatever songs i want and whatever function i want in three clinics and i want it to be intuitive. he drove them and drove them until the ipod becomes perfect. that is when he wheat frogs and does the music but that takes leapfrogged from being apple computer into being in the digital hub business with dvds and video and with the ipod and music and the ipod is h