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Plotting a Coup7 p# Q) N/ s4 Y5 Q9 n/ H
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Jobs was not good at taking no for an answer. He went to Sculley’s office in early May2 |. ], M# P" ]0 B
1985 and asked for more time to show that he could manage the Macintosh division. He& u9 N$ z9 }# J
would prove himself as an operations guy, he promised. Sculley didn’t back down. Jobs
3 `0 Z3 y( ]- H3 o# h# F% anext tried a direct challenge: He asked Sculley to resign. “I think you really lost your
8 J7 Z5 s! W3 dstride,” Jobs told him. “You were really great the first year, and everything went wonderful.
6 L$ K- n9 d6 B, ]But something happened.” Sculley, who generally was even-tempered, lashed back,
% D! X# r2 s2 U4 i* [0 _pointing out that Jobs had been unable to get Macintosh software developed, come up with
# V0 s3 m" F: A; q/ enew models, or win customers. The meeting degenerated into a shouting match about who
- e3 Q! F% F' bwas the worse manager. After Jobs stalked out, Sculley turned away from the glass wall of% R I5 X! H$ {4 u# o7 G* x# p5 }
his office, where others had been looking in on the meeting, and wept.2 I/ e. ^! A* f" O# f
Matters began to come to a head on Tuesday, May 14, when the Macintosh team made, j4 I1 {- H; W+ y
its quarterly review presentation to Sculley and other Apple corporate leaders. Jobs still had
" q G$ E6 c; u r! F2 y1 T5 e# Inot relinquished control of the division, and he was defiant when he arrived in the
/ ^, ~( I/ l8 [; y% s0 I2 `7 h" Z5 Zcorporate boardroom with his team. He and Sculley began by clashing over what the
' V. `8 M6 [0 T: o$ ~! i" ldivision’s mission was. Jobs said it was to sell more Macintosh machines. Sculley said it
# n: h, O; S+ n3 l1 L; m6 mwas to serve the interests of the Apple company as a whole. As usual there was little8 z( x. k3 I# D9 ]
cooperation among the divisions; for one thing, the Macintosh team was planning new disk( G# u- s; x9 \6 S/ _5 m! U3 _
drives that were different from those being developed by the Apple II division. The debate,% O& t- d- a' n# w; x
according to the minutes, took a full hour.! z5 |; c8 ~1 h6 j
Jobs then described the projects under way: a more powerful Mac, which would take the2 I9 z, n4 G! E' o
place of the discontinued Lisa; and software called FileServer, which would allow4 n. K$ D4 F% B; K
Macintosh users to share files on a network. Sculley learned for the first time that these9 V2 q) E9 q, r8 d( q9 Q Z
projects were going to be late. He gave a cold critique of Murray’s marketing record,
; u2 V3 {2 J7 |Belleville’s missed engineering deadlines, and Jobs’s overall management. Despite all this,( X9 g: N# a: y& c/ a
Jobs ended the meeting with a plea to Sculley, in front of all the others there, to be given
& v5 I8 y; Q% k) xone more chance to prove he could run a division. Sculley refused.
: f, k4 d( _! T- Y% u6 X9 j7 qThat night Jobs took his Macintosh team out to dinner at Nina’s Café in Woodside. Jean-/ o9 N2 f" t7 P# F/ R' Z) ?9 u$ n
Louis Gassée was in town because Sculley wanted him to prepare to take over the
5 b0 x" P! x. h; d, ?/ KMacintosh division, and Jobs invited him to join them. Belleville proposed a toast “to those $ [, e' q; h7 _- l: j
& d: M0 M- L+ [: i" _
of us who really understand what the world according to Steve Jobs is all about.” That" a: `$ ?6 z4 j! r" [
phrase—“the world according to Steve”—had been used dismissively by others at Apple
) | ], h3 g; X; ~( i. x6 F9 Ewho belittled the reality warp he created. After the others left, Belleville sat with Jobs in his. a9 M2 R" q# S4 w7 c
Mercedes and urged him to organize a battle to the death with Sculley.) v$ k* C* n; O5 e' G' Y7 c
Months earlier, Apple had gotten the right to export computers to China, and Jobs had
Z- Q0 ?& [4 k& bbeen invited to sign a deal in the Great Hall of the People over the 1985 Memorial Day
% Z; o1 l+ Q4 \" |' O# I# oweekend. He had told Sculley, who decided he wanted to go himself, which was just fine
) _' }- G! J/ D9 D* ~with Jobs. Jobs decided to use Sculley’s absence to execute his coup. Throughout the week
4 h/ Y7 }/ R) Z/ v; F& Sleading up to Memorial Day, he took a lot of people on walks to share his plans. “I’m going/ K# A3 @: N2 D! w) T$ _# Q) k
to launch a coup while John is in China,” he told Mike Murray.$ }, n2 f0 L7 ?# H. h) V; H* D0 _
7 X) u8 O3 Y4 F3 M/ j( k
Seven Days in May
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Thursday, May 23: At his regular Thursday meeting with his top lieutenants in the
9 J, Z) x* I4 l* vMacintosh division, Jobs told his inner circle about his plan to oust Sculley. He also, P3 y. ]* l0 H! u3 i" j
confided in the corporate human resources director, Jay Elliot, who told him bluntly that4 x/ h' T) {$ a2 u9 Z
the proposed rebellion wouldn’t work. Elliot had talked to some board members and urged
& }! @/ c' {! B4 r- h/ a; f- Hthem to stand up for Jobs, but he discovered that most of the board was with Sculley, as5 g# L! F' u( C5 T) {4 z
were most members of Apple’s senior staff. Yet Jobs barreled ahead. He even revealed his
" q" v) L/ a" j7 X3 Gplans to Gassée on a walk around the parking lot, despite the fact that Gassée had come
! u1 t0 b: \9 h. Y+ c! i9 ?from Paris to take his job. “I made the mistake of telling Gassée,” Jobs wryly conceded
1 K7 t1 V5 \; F! W; w9 ^' b9 y3 vyears later.
6 }' f. M; E2 iThat evening Apple’s general counsel Al Eisenstat had a small barbecue at his home for6 ^& e( @9 A% Y1 w: k
Sculley, Gassée, and their wives. When Gassée told Eisenstat what Jobs was plotting, he! j5 v Q: A& r: D4 W0 b
recommended that Gassée inform Sculley. “Steve was trying to raise a cabal and have a
* x5 F2 [. K, Q* bcoup to get rid of John,” Gassée recalled. “In the den of Al Eisenstat’s house, I put my
3 i1 ^+ D) a9 Y) ]. R3 eindex finger lightly on John’s breastbone and said, ‘If you leave tomorrow for China, you. D5 |7 C2 j- ?1 A% l9 U
could be ousted. Steve’s plotting to get rid of you.’”
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Q) ^/ _7 H% x9 N: H- m4 q6 }" ?Friday, May 24: Sculley canceled his trip and decided to confront Jobs at the executive
. ]! t$ e# W5 ~& _' P' {7 X2 }/ vstaff meeting on Friday morning. Jobs arrived late, and he saw that his usual seat next to
$ K* m# x3 i. V& x+ d5 M9 xSculley, who sat at the head of the table, was taken. He sat instead at the far end. He was3 j9 l2 ^; C+ w. ^* G. P
dressed in a well-tailored suit and looked energized. Sculley looked pale. He announced9 R7 o7 ~" r; X# @, {( F$ E
that he was dispensing with the agenda to confront the issue on everyone’s mind. “It’s
: V; Y# B" g% @: u( d" tcome to my attention that you’d like to throw me out of the company,” he said, looking" i0 \' j/ q2 p8 |
directly at Jobs. “I’d like to ask you if that’s true.”
- S# I: ?/ |8 d$ r3 q* c( [Jobs was not expecting this. But he was never shy about indulging in brutal honesty. His
. S, g0 o) n x4 e1 Leyes narrowed, and he fixed Sculley with his unblinking stare. “I think you’re bad for& v& I3 T9 F' s
Apple, and I think you’re the wrong person to run the company,” he replied, coldly and6 N+ R8 P9 ?3 I
slowly. “You really should leave this company. You don’t know how to operate and never; {3 @3 A' w4 h5 B% b% c; m
have.” He accused Sculley of not understanding the product development process, and then+ u! v3 z3 P) r+ ^. \4 C, T
he added a self-centered swipe: “I wanted you here to help me grow, and you’ve been0 F% k) J$ X4 ?
ineffective in helping me.”
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: L& {+ a2 I& l; M& AAs the rest of the room sat frozen, Sculley finally lost his temper. A childhood stutter that
$ p% K- ?. Z5 P% Z; e! @( {. A2 c3 Chad not afflicted him for twenty years started to return. “I don’t trust you, and I won’t; Z+ r7 }, r) _2 a& d# H [
tolerate a lack of trust,” he stammered. When Jobs claimed that he would be better than
. k3 _7 [4 p) d8 XSculley at running the company, Sculley took a gamble. He decided to poll the room on
- K( \3 Y2 b' {that question. “He pulled off this clever maneuver,” Jobs recalled, still smarting thirty-five) X8 g% q1 v4 }" w4 X0 p4 s7 I: k
years later. “It was at the executive committee meeting, and he said, ‘It’s me or Steve, who
- ?' p" y. B+ Ado you vote for?’ He set the whole thing up so that you’d kind of have to be an idiot to vote
; c# `: U" S- q& G" Kfor me.”
" h1 r2 O& z$ z1 K5 kSuddenly the frozen onlookers began to squirm. Del Yocam had to go first. He said he2 L7 w s( x7 _( I, }5 [$ Z
loved Jobs, wanted him to continue to play some role in the company, but he worked up the
6 k( V- y; p. w5 X5 `& a8 jnerve to conclude, with Jobs staring at him, that he “respected” Sculley and would support+ Q5 l1 Z: J2 ^# B, M' }5 U+ }) L
him to run the company. Eisenstat faced Jobs directly and said much the same thing: He
' O, `# D i9 ]6 D! f( d2 Zliked Jobs but was supporting Sculley. Regis McKenna, who sat in on senior staff meetings
6 M: q( ^! I/ Qas an outside consultant, was more direct. He looked at Jobs and told him he was not yet7 x8 S& m; i$ v; \0 Z+ g* Q( h
ready to run the company, something he had told him before. Others sided with Sculley as
' F; R7 l6 P& P* a* mwell. For Bill Campbell, it was particularly tough. He was fond of Jobs and didn’t
$ V a% Q$ ?9 I3 O# q( n0 w( x1 Xparticularly like Sculley. His voice quavered a bit as he told Jobs he had decided to support8 A) b2 x& _' X" R* u$ O' H
Sculley, and he urged the two of them to work it out and find some role for Jobs to play in4 p& J/ }, g) J/ f9 U+ [5 n1 @
the company. “You can’t let Steve leave this company,” he told Sculley.
# Z( e) T$ f' g- [* D' J* EJobs looked shattered. “I guess I know where things stand,” he said, and bolted out of the
+ U5 j, P% D0 [! f1 K- o! p% croom. No one followed.3 c% R/ c5 k0 c$ P5 n0 ~' u
He went back to his office, gathered his longtime loyalists on the Macintosh staff, and
: U8 \+ O# N5 k1 P% Z' H ~2 g# \1 Qstarted to cry. He would have to leave Apple, he said. As he started to walk out the door,5 ?+ c d& k, j3 }1 k
Debi Coleman restrained him. She and the others urged him to settle down and not do# g3 W* J9 A0 b; J. T0 R0 S1 ^
anything hasty. He should take the weekend to regroup. Perhaps there was a way to prevent M3 e: M/ J. H
the company from being torn apart.
! T# c, X* t% s$ t. g% DSculley was devastated by his victory. Like a wounded warrior, he retreated to/ o+ A& v: V4 n6 c( D( l1 b
Eisenstat’s office and asked the corporate counsel to go for a ride. When they got into
( ^/ l* A0 J1 \, V( e5 UEisenstat’s Porsche, Sculley lamented, “I don’t know whether I can go through with this.”8 S( e# X2 l% X! F6 q
When Eisenstat asked what he meant, Sculley responded, “I think I’m going to resign.”/ w z: H0 R5 M$ O& ?0 V8 d4 ]
“You can’t,” Eisenstat protested. “Apple will fall apart.”. P; i! P9 q4 P) A* m: k
“I’m going to resign,” Sculley declared. “I don’t think I’m right for the company.”
; p* K! r& [+ ~- X“I think you’re copping out,” Eisenstat replied. “You’ve got to stand up to him.” Then he+ D* O8 j/ K ]1 ?
drove Sculley home.
, b4 t8 o) D# N( d9 CSculley’s wife was surprised to see him back in the middle of the day. “I’ve failed,” he8 }3 y* e0 j' q6 a4 N9 j
said to her forlornly. She was a volatile woman who had never liked Jobs or appreciated her$ M$ F4 ~! [/ \6 I
husband’s infatuation with him. So when she heard what had happened, she jumped into
9 D$ j% f8 }- B# [5 Dher car and sped over to Jobs’s office. Informed that he had gone to the Good Earth: S0 G* Z2 t8 |1 _) e( ?2 v \. N
restaurant, she marched over there and confronted him in the parking lot as he was coming) C0 w3 C+ e% Y6 u, n) p
out with loyalists on his Macintosh team.
; S D; b: ?- V7 a“Steve, can I talk to you?” she said. His jaw dropped. “Do you have any idea what a
- R `. T$ p" |9 [4 s' hprivilege it has been even to know someone as fine as John Sculley?” she demanded. He
& K1 S9 [" n- i8 @averted his gaze. “Can’t you look me in the eyes when I’m talking to you?” she asked. But
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when Jobs did so—giving her his practiced, unblinking stare—she recoiled. “Never mind," q2 f' Y( k& {' k
don’t look at me,” she said. “When I look into most people’s eyes, I see a soul. When I look7 k) H N6 E, t. s6 m6 [( G
into your eyes, I see a bottomless pit, an empty hole, a dead zone.” Then she walked away.$ L- R- c# z. P$ V# I
# y1 E& m' p# x+ x% ]5 |
Saturday, May 25: Mike Murray drove to Jobs’s house in Woodside to offer some advice:
/ T) c1 N* T, `+ o) J% P! YHe should consider accepting the role of being a new product visionary, starting
" j. l; T' \6 o) A/ X( WAppleLabs, and getting away from headquarters. Jobs seemed willing to consider it. But
/ T$ t8 \) T( e( j3 b( ?. y, xfirst he would have to restore peace with Sculley. So he picked up the telephone and
$ L% ?5 D& b5 c' k$ [surprised Sculley with an olive branch. Could they meet the following afternoon, Jobs
7 R$ c# n2 `$ K/ ^asked, and take a walk together in the hills above Stanford University. They had walked
" ~ a( s7 E) H6 L, Kthere in the past, in happier times, and maybe on such a walk they could work things out.0 r( V" I5 N" l2 i7 D! Z
Jobs did not know that Sculley had told Eisenstat he wanted to quit, but by then it didn’t- Q) H8 v: J0 G) o/ i& d* l' |
matter. Overnight, he had changed his mind and decided to stay. Despite the blowup the
5 {) y1 J6 s+ {& H+ o: eday before, he was still eager for Jobs to like him. So he agreed to meet the next afternoon. u# ]% P! i# ?, g1 C
If Jobs was prepping for conciliation, it didn’t show in the choice of movie he wanted to4 D) [! j q& I' E1 l
see with Murray that night. He picked Patton, the epic of the never-surrender general. But) `# ^9 S9 N3 m4 |/ g
he had lent his copy of the tape to his father, who had once ferried troops for the general, so$ _, b3 a8 v# P' b* _4 [2 e" C! H
he drove to his childhood home with Murray to retrieve it. His parents weren’t there, and5 D: t6 V: S+ ?; r! j
he didn’t have a key. They walked around the back, checked for unlocked doors or6 D2 I: ?. F1 n/ h
windows, and finally gave up. The video store didn’t have a copy of Patton in stock, so in# B; U8 c0 r, c" V" |' B
the end he had to settle for watching the 1983 film adaptation of Harold Pinter’s Betrayal.3 K; n3 ^8 U C5 p# L$ q
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Sunday, May 26: As planned, Jobs and Sculley met in back of the Stanford campus on
4 r* K3 N# `0 F) {% JSunday afternoon and walked for several hours amid the rolling hills and horse pastures.6 z4 c% ^6 ^+ S; U0 ?- E' Z
Jobs reiterated his plea that he should have an operational role at Apple. This time Sculley
& A# ?+ Z, i/ o7 Cstood firm. It won’t work, he kept saying. Sculley urged him to take the role of being a# d# V; |7 R2 I* B
product visionary with a lab of his own, but Jobs rejected this as making him into a mere0 z& J% w O) h
“figurehead.” Defying all connection to reality, he countered with the proposal that Sculley( y G X0 s: W7 D L" _, Y `( B
give up control of the entire company to him. “Why don’t you become chairman and I’ll3 c6 j# C# K" I: V2 J0 U
become president and chief executive officer?” he suggested. Sculley was struck by how
/ ~5 Q) x( C: [( ?- zearnest he seemed.
2 M! c# A" P* I! m5 o“Steve, that doesn’t make any sense,” Sculley replied. Jobs then proposed that they split5 s0 k0 t8 f, D( _* D# K8 F9 {% y
the duties of running the company, with him handling the product side and Sculley
% o+ E! b1 c- ?% \8 W phandling marketing and business. But the board had not only emboldened Sculley, it had
! Q7 W( b, O4 M4 fordered him to bring Jobs to heel. “One person has got to run the company,” he replied.
3 ^# M5 g$ | D+ c“I’ve got the support and you don’t.”
* H5 w- M$ A5 }% D5 S- k5 Q' K2 J& @) aOn his way home, Jobs stopped at Mike Markkula’s house. He wasn’t there, so Jobs left
u- C" c) J* Aa message asking him to come to dinner the following evening. He would also invite the
7 F/ A2 o$ t; u1 q; [! e; h) Ocore of loyalists from his Macintosh team. He hoped that they could persuade Markkula of
- |, P5 l- h9 \" ~6 tthe folly of siding with Sculley.
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2 r' G: n8 d" U8 b7 E, s# sMonday, May 27: Memorial Day was sunny and warm. The Macintosh team loyalists—! _) i& C- v+ b1 J7 F
Debi Coleman, Mike Murray, Susan Barnes, and Bob Belleville—got to Jobs’s Woodside
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home an hour before the scheduled dinner so they could plot strategy. Sitting on the patio, x# n+ o" P8 o+ s
as the sun set, Coleman told Jobs that he should accept Sculley’s offer to be a product* P$ T h4 l8 S, Q
visionary and help start up AppleLabs. Of all the inner circle, Coleman was the most
. e+ b/ E& Z* ~; N" w: q/ ^willing to be realistic. In the new organization plan, Sculley had tapped her to run the( z5 a I4 n; S8 L9 Q7 V( R, M
manufacturing division because he knew that her loyalty was to Apple and not just to Jobs./ U3 ]- B2 v% l+ M4 d
Some of the others were more hawkish. They wanted to urge Markkula to support a! y) { }: y" k8 U$ [, v
reorganization plan that put Jobs in charge. I- X. G( a+ _2 m
When Markkula showed up, he agreed to listen with one proviso: Jobs had to keep quiet.- D7 h: d# y4 x- q, c
“I seriously wanted to hear the thoughts of the Macintosh team, not watch Jobs enlist them+ Z' [7 o8 U6 L1 z: J
in a rebellion,” he recalled. As it turned cooler, they went inside the sparsely furnished$ w# C, t5 |1 r6 Y7 V9 D( j* w
mansion and sat by a fireplace. Instead of letting it turn into a gripe session, Markkula
. T0 A( i" z8 P; n2 P$ Q0 D: V, _$ hmade them focus on very specific management issues, such as what had caused the, E( q+ e4 V3 U4 Z
problem in producing the FileServer software and why the Macintosh distribution system
5 T, e3 F: Z( T. Thad not responded well to the change in demand. When they were finished, Markkula
]! H$ I3 H, O( n- N, Fbluntly declined to back Jobs. “I said I wouldn’t support his plan, and that was the end of1 d' e6 M' P. u) ^
that,” Markkula recalled. “Sculley was the boss. They were mad and emotional and putting+ _: C6 t2 E& o/ M' _
together a revolt, but that’s not how you do things.”
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! t- e8 S7 V2 P/ L! D/ P+ B |Tuesday, May 28: His ire stoked by hearing from Markkula that Jobs had spent the previous& L9 V* h1 V% a
evening trying to subvert him, Sculley walked over to Jobs’s office on Tuesday morning.
! a. N9 W0 A; K: }% ~# _He had talked to the board, he said, and he had its support. He wanted Jobs out. Then he
! ]7 g$ I1 ]" @- A. _% ndrove to Markkula’s house, where he gave a presentation of his reorganization plans.
; C8 I3 D$ D7 O' R% r1 [( o4 EMarkkula asked detailed questions, and at the end he gave Sculley his blessing. When he2 `9 u$ x: g% n
got back to his office, Sculley called the other members of the board, just to make sure he& N" Q* J: B- W. t3 E) `+ D$ j. n
still had their backing. He did.
8 _9 h6 ~; i8 X, uAt that point he called Jobs to make sure he understood. The board had given final6 x5 o; [0 Y4 _+ ]/ |. k
approval of his reorganization plan, which would proceed that week. Gassée would take+ A2 G$ Z- ~6 [
over control of Jobs’s beloved Macintosh as well as other products, and there was no other
+ z( V9 g7 o; E6 E# Pdivision for Jobs to run. Sculley was still somewhat conciliatory. He told Jobs that he could: V% D: k/ S* z! f# N/ q) ^# w, O) L
stay on with the title of board chairman and be a product visionary with no operational- L1 S. K* @3 R4 {- y. f. Y
duties. But by this point, even the idea of starting a skunkworks such as AppleLabs was no0 N) K* k* d% a$ X e. X; B
longer on the table.
0 _7 ^7 K* F4 S+ j! NIt finally sank in. Jobs realized there was no appeal, no way to warp the reality. He broke- D( E+ Y1 A, I) F
down in tears and started making phone calls—to Bill Campbell, Jay Elliot, Mike Murray,
$ g8 f# q7 A* x6 p( xand others. Murray’s wife, Joyce, was on an overseas call when Jobs phoned, and the
) G# [/ a0 p1 M/ I$ @1 boperator broke in saying it was an emergency. It better be important, she told the operator., ]! A2 c' y( o& h
“It is,” she heard Jobs say. When her husband got on the phone, Jobs was crying. “It’s) o) W' l5 D7 m. A9 e1 U9 n
over,” he said. Then he hung up.! X3 u2 t& ]4 \
Murray was worried that Jobs was so despondent he might do something rash, so he
$ n( r7 n8 Y4 kcalled back. There was no answer, so he drove to Woodside. No one came to the door when* h$ _, c( i0 [+ ?
he knocked, so he went around back and climbed up some exterior steps and looked in the: X0 \/ C% g9 \. t1 T2 I y3 s
bedroom. Jobs was lying there on a mattress in his unfurnished room. He let Murray in and# [; ^: [" [! d" d; H+ X
they talked until almost dawn.
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, f" e# b Z, d; vWednesday, May 29: Jobs finally got hold of a tape of Patton, which he watched% e4 d: Q/ G0 U4 H) W
Wednesday evening, but Murray prevented him from getting stoked up for another battle.5 h- O. J, L4 @
Instead he urged Jobs to come in on Friday for Sculley’s announcement of the
* R/ _! U9 c/ v: ^. ?reorganization plan. There was no option left other than to play the good soldier rather than* t+ o5 G: c6 K) Y) _2 Y
the renegade commander.3 \( h3 @* ~+ Y/ Y5 [
$ z" E) `7 F7 {. E& z W8 q: _+ }4 oLike a Rolling Stone
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Jobs slipped quietly into the back row of the auditorium to listen to Sculley explain to the
8 G# i* d( Y" C' c _troops the new order of battle. There were a lot of sideways glances, but few people& J0 I9 `" C$ W+ s+ o# \
acknowledged him and none came over to provide public displays of affection. He stared
" E0 H7 U5 P' Xwithout blinking at Sculley, who would remember “Steve’s look of contempt” years later.
- b! Y9 ?+ `2 Q$ @) O“It’s unyielding,” Sculley recalled, “like an X-ray boring inside your bones, down to where# X# u: y/ }) {! B
you’re soft and destructibly mortal.” For a moment, standing onstage while pretending not. i, J9 S2 r6 C# p. F4 _3 A2 Y
to notice Jobs, Sculley thought back to a friendly trip they had taken a year earlier to
, Y I! [/ k" iCambridge, Massachusetts, to visit Jobs’s hero, Edwin Land. He had been dethroned from
* w8 t- `+ i1 h: d5 y) Othe company he created, Polaroid, and Jobs had said to Sculley in disgust, “All he did was
+ e4 G' T/ v( h$ e: I. O% Y- Dblow a lousy few million and they took his company away from him.” Now, Sculley' i2 @: [$ d& `* C
reflected, he was taking Jobs’s company away from him.8 T& r& V/ I+ b: N2 J
As Sculley went over the organizational chart, he introduced Gassée as the new head of a
' C0 o1 Z6 u8 \9 S1 Hcombined Macintosh and Apple II product group. On the chart was a small box labeled
9 A8 C3 F5 v: }" u% ^“chairman” with no lines connecting to it, not to Sculley or to anyone else. Sculley briefly+ y5 L- m! Y: C: v
noted that in that role, Jobs would play the part of “global visionary.” But he didn’t8 q8 h T6 u ?) |% |% ]
acknowledge Jobs’s presence. There was a smattering of awkward applause.; i6 G" A4 j! u% [2 _
Jobs stayed home for the next few days, blinds drawn, his answering machine on, seeing- H$ ~; j5 f1 c0 X9 a) n7 t
only his girlfriend, Tina Redse. For hours on end he sat there playing his Bob Dylan tapes,
( j, m7 E; @) respecially “The Times They Are a-Changin.’” He had recited the second verse the day he
9 F2 ~# P9 w" o: H6 G6 nunveiled the Macintosh to the Apple shareholders sixteen months earlier. That verse ended
0 \+ m8 o. z8 I& enicely: “For the loser now / Will be later to win. . . .”- L* j! `& G: N) r! Y9 B( B
A rescue squad from his former Macintosh posse arrived to dispel the gloom on Sunday% V0 @! m9 \* x; l0 j2 e4 `
night, led by Andy Hertzfeld and Bill Atkinson. Jobs took a while to answer their knock,8 `3 L' L( u, E: U% r
and then he led them to a room next to the kitchen that was one of the few places with any
2 X( n& f- q0 z' zfurniture. With Redse’s help, he served some vegetarian food he had ordered. “So what
& J* G/ v" I) o# H. x, Freally happened?” Hertzfeld asked. “Is it really as bad as it looks?”
& S( t, `( h+ x( B1 ]0 D5 |“No, it’s worse.” Jobs grimaced. “It’s much worse than you can imagine.” He blamed( q% j& X( @% ^- _; r; d% C
Sculley for betraying him, and said that Apple would not be able to manage without him.
2 {+ B/ y3 h% \, u, W3 b9 M+ }His role as chairman, he complained, was completely ceremonial. He was being ejected- z' f- J- Y2 T' }# @% O* }& ?$ X9 ]
from his Bandley 3 office to a small and almost empty building he nicknamed “Siberia.”* G0 E4 a/ u4 r) i% I" J% L
Hertzfeld turned the topic to happier days, and they began to reminisce about the past.3 k& J5 |, l( f) q9 K
Earlier that week, Dylan had released a new album, Empire Burlesque, and Hertzfeld
9 A Y+ j2 F4 i/ B6 Nbrought a copy that they played on Jobs’s high-tech turntable. The most notable track,
& j" z( C8 p! D“When the Night Comes Falling from the Sky,” with its apocalyptic message, seemed
* ]3 Q6 `8 _! N, }+ r8 dappropriate for the evening, but Jobs didn’t like it. It sounded almost disco, and he . X/ w! w/ C" O+ [4 l+ [! |
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3 u6 C$ V0 s- o4 h/ t' B7 X/ ]gloomily argued that Dylan had been going downhill since Blood on the Tracks. So* _; d0 y; T0 G, Q( s2 \5 t# U, j
Hertzfeld moved the needle to the last song on the album, “Dark Eyes,” which was a
4 U/ K: j3 v+ U/ r$ Osimple acoustic number featuring Dylan alone on guitar and harmonica. It was slow and
3 a! e( x8 }3 u1 P' \; Qmournful and, Hertzfeld hoped, would remind Jobs of the earlier Dylan tracks he so loved.1 h9 E! ^ x$ r% F4 e8 [
But Jobs didn’t like that song either and had no desire to hear the rest of the album.0 L& v3 c# e: ~* [2 ^% N
Jobs’s overwrought reaction was understandable. Sculley had once been a father figure
6 p( y$ |9 i5 Wto him. So had Mike Markkula. So had Arthur Rock. That week all three had abandoned: v( V+ o) j$ c9 n9 C! E
him. “It gets back to the deep feeling of being rejected at an early age,” his friend and
# W4 S8 R: R0 q, G( C2 mlawyer George Riley later said. “It’s a deep part of his own mythology, and it defines to
5 W' W. E8 V( D' z1 uhimself who he is.” Jobs recalled years later, “I felt like I’d been punched, the air knocked
2 {7 L [6 I& e- l# L" J' U9 M: L Yout of me and I couldn’t breathe.”
% p1 y. X* B* u0 c; NLosing the support of Arthur Rock was especially painful. “Arthur had been like a father% c3 Y) n3 [1 H5 g$ X
to me,” Jobs said. “He took me under his wing.” Rock had taught him about opera, and he
7 d6 I& m0 D# P8 ~& j% Dand his wife, Toni, had been his hosts in San Francisco and Aspen. “I remember driving
% Y7 x; i$ x: H7 Zinto San Francisco one time, and I said to him, ‘God, that Bank of America building is
. u: W4 V* [! g) qugly,’ and he said, ‘No, it’s the best,’ and he proceeded to lecture me, and he was right of
s4 `+ Y: ]# v* b1 W vcourse.” Years later Jobs’s eyes welled with tears as he recounted the story: “He chose8 x6 @" X0 b0 W! v- ^$ ^- N+ j
Sculley over me. That really threw me for a loop. I never thought he would abandon me.”
* `4 E' v7 N( `2 c% h4 `4 s) D0 fMaking matters worse was that his beloved company was now in the hands of a man he
* y3 e- D$ O5 bconsidered a bozo. “The board felt that I couldn’t run a company, and that was their
8 Z, u# J) o8 _2 _$ p% sdecision to make,” he said. “But they made one mistake. They should have separated the
: L4 X% o' D4 ~decision of what to do with me and what to do with Sculley. They should have fired4 A% O0 r" R9 u# J9 B( j
Sculley, even if they didn’t think I was ready to run Apple.” Even as his personal gloom
0 S: e c: T& o4 p6 L( Vslowly lifted, his anger at Sculley, his feeling of betrayal, deepened.
0 x0 L8 p! K0 l% oThe situation worsened when Sculley told a group of analysts that he considered Jobs: U- G! R9 W5 k' y* @; ?: K U6 z
irrelevant to the company, despite his title as chairman. “From an operations standpoint,. o7 _9 R) p; Y9 h
there is no role either today or in the future for Steve Jobs,” he said. “I don’t know what( G0 n/ Q: S7 Y, L n% T& M, A4 t: w2 a
he’ll do.” The blunt comment shocked the group, and a gasp went through the auditorium.
( \2 u/ h$ G8 p2 ^1 B' }( v2 ]Perhaps getting away to Europe would help, Jobs thought. So in June he went to Paris,
! [4 U8 v( M* s$ n# @+ Ywhere he spoke at an Apple event and went to a dinner honoring Vice President George H.
) r+ E* d6 o8 q3 @9 \2 s; u6 R3 eW. Bush. From there he went to Italy, where he drove the hills of Tuscany with Redse and! `3 }* R s4 I8 l
bought a bike so he could spend time riding by himself. In Florence he soaked in the
3 @" v% f8 g( r( s1 B% U G barchitecture of the city and the texture of the building materials. Particularly memorable
8 T5 X5 o! @, l( R' z& ^" c3 ^were the paving stones, which came from Il Casone quarry near the Tuscan town of3 z* ?2 V: c, A6 a: X, B6 z
Firenzuola. They were a calming bluish gray. Twenty years later he would decide that the
& G$ h) ? Q& S: a0 V( ]2 Vfloors of most major Apple stores would be made of this sandstone.
! V* j K5 \3 ]: F. z8 w. N5 w, \The Apple II was just going on sale in Russia, so Jobs headed off to Moscow, where he) N) r- ~/ M! u0 A4 \; ]/ ~2 M+ ~. Q
met up with Al Eisenstat. Because there was a problem getting Washington’s approval for
; M# t: C# f/ k# Y% |/ j' f" [some of the required export licenses, they visited the commercial attaché at the American, {8 Z1 z) f7 L# {7 l. b3 l
embassy in Moscow, Mike Merwin. He warned them that there were strict laws against
1 I* b9 p- h) n: }/ I7 lsharing technology with the Soviets. Jobs was annoyed. At the Paris trade show, Vice- n0 f& J$ J- {5 `$ J* u
President Bush had encouraged him to get computers into Russia in order to “foment
8 I. a3 y! M3 B- R. T: erevolution from below.” Over dinner at a Georgian restaurant that specialized in shish
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I( M+ P. _& A. b" F% B* Ckebab, Jobs continued his rant. “How could you suggest this violates American law when it7 X* k5 R, v6 w! V) B/ `
so obviously benefits our interests?” he asked Merwin. “By putting Macs in the hands of! Z1 F0 d: a0 c8 I4 r2 F. B
Russians, they could print all their newspapers.”" N) \, A# ]: P! A7 }: K
Jobs also showed his feisty side in Moscow by insisting on talking about Trotsky, the
% a o; U3 j- `( l: K5 p; Qcharismatic revolutionary who fell out of favor and was ordered assassinated by Stalin. At1 ~/ v, V1 A7 y6 V
one point the KGB agent assigned to him suggested he tone down his fervor. “You don’t, h3 S+ Z; t( F4 f
want to talk about Trotsky,” he said. “Our historians have studied the situation, and we7 t7 x* u+ c# _8 n, f2 n
don’t believe he’s a great man anymore.” That didn’t help. When they got to the state
% b2 Z0 h2 c5 O4 luniversity in Moscow to speak to computer students, Jobs began his speech by praising
. i6 p3 E; S# o- v0 E1 _Trotsky. He was a revolutionary Jobs could identify with.$ P1 k5 s4 K, @) G( |
Jobs and Eisenstat attended the July Fourth party at the American embassy, and in his
0 G. `2 b# d: V, a" W" B/ G" Zthank-you letter to Ambassador Arthur Hartman, Eisenstat noted that Jobs planned to3 W7 S3 `- J, ]/ I- c
pursue Apple’s ventures in Russia more vigorously in the coming year. “We are tentatively" H. @9 G( B5 J6 t- N
planning on returning to Moscow in September.” For a moment it looked as if Sculley’s6 j' ]6 G, C/ W3 y( S
hope that Jobs would turn into a “global visionary” for the company might come to pass.
. d8 |; e) o) ?4 l) c/ [But it was not to be. Something much different was in store for September.6 D _; N& }4 u. x/ N
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/ Z4 [5 n& K1 \1 t) E) q+ n8 OCHAPTER EIGHTEEN
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NeXT
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P& V( F8 `9 e7 x/ y# ?, H0 m$ n& g9 G' s, t; n
Prometheus Unbound
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3 V* ^7 O o! A7 @2 J. K' b' U: @7 KThe Pirates Abandon Ship1 D1 {% \ L; `1 A. I8 W' U
G% A3 I# Y. \: g+ U& D P! N% P# sUpon his return from Europe in August 1985, while he was casting about for what to do
! S p& J5 z2 S, gnext, Jobs called the Stanford biochemist Paul Berg to discuss the advances that were being- A! `4 P( O1 z
made in gene splicing and recombinant DNA. Berg described how difficult it was to do
& b: W% S6 q( Hexperiments in a biology lab, where it could take weeks to nurture an experiment and get a5 \' k, i+ o1 k+ M" S5 ?
result. “Why don’t you simulate them on a computer?” Jobs asked. Berg replied that
% V1 M! O/ a" b: p# V& qcomputers with such capacities were too expensive for university labs. “Suddenly, he was/ D: k- [8 ?9 b! z8 x5 `
excited about the possibilities,” Berg recalled. “He had it in his mind to start a new& Y+ }4 I# X( F: C) ^" C- s
company. He was young and rich, and had to find something to do with the rest of his life.”
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6 {' L8 q* }$ eJobs had already been canvassing academics to ask what their workstation needs were. It
8 F7 Z+ ?5 q6 Mwas something he had been interested in since 1983, when he had visited the computer: Z+ X6 i, f, \
science department at Brown to show off the Macintosh, only to be told that it would take a
0 f& W! b; m3 \; N/ Xfar more powerful machine to do anything useful in a university lab. The dream of+ M' p$ f' E. A$ @/ \) ?
academic researchers was to have a workstation that was both powerful and personal. As
" f u1 ?' x( ~, \8 Ohead of the Macintosh division, Jobs had launched a project to build such a machine, which' @2 i- t- b! w4 w9 q+ N6 l
was dubbed the Big Mac. It would have a UNIX operating system but with the friendly. d* P. i3 t% v$ U5 m
Macintosh interface. But after Jobs was ousted from the Macintosh division, his
" j" S: ~5 n" r: treplacement, Jean-Louis Gassée, canceled the Big Mac.0 a. B: N3 f9 X3 C a4 o
When that happened, Jobs got a distressed call from Rich Page, who had been: ~# d3 K" E2 J" f8 F, `; a
engineering the Big Mac’s chip set. It was the latest in a series of conversations that Jobs+ g) o: J6 c" I
was having with disgruntled Apple employees urging him to start a new company and
" W/ M, Y7 f3 C1 ~2 k- Y( L. |! Grescue them. Plans to do so began to jell over Labor Day weekend, when Jobs spoke to Bud# j' @2 y& P( S
Tribble, the original Macintosh software chief, and floated the idea of starting a company to1 x$ D7 |. F t! c
build a powerful but personal workstation. He also enlisted two other Macintosh division, z% Y P6 Y/ D; q& b0 N$ }" ~) N6 |
employees who had been talking about leaving, the engineer George Crow and the/ S0 c+ ]4 P7 ?9 y
controller Susan Barnes." P8 ?- e& y% ?8 N' @" O
That left one key vacancy on the team: a person who could market the new product to
5 N' x; l9 D/ B/ n) x4 g$ L; ~universities. The obvious candidate was Dan’l Lewin, who at Apple had organized a
1 O/ A% G, |9 v0 ]! K0 V3 nconsortium of universities to buy Macintosh computers in bulk. Besides missing two letters
9 w" v' O5 b) i' r* F' y4 C0 [in his first name, Lewin had the chiseled good looks of Clark Kent and a Princetonian’s3 q6 r$ u# [$ O$ j' E" @; Q5 |5 |( u
polish. He and Jobs shared a bond: Lewin had written a Princeton thesis on Bob Dylan and
# i( J! K& r4 ]7 v0 N7 E' b& _+ Y kcharismatic leadership, and Jobs knew something about both of those topics.* G( C, V; n3 ^: k
Lewin’s university consortium had been a godsend to the Macintosh group, but he had) ~ |% ~7 ]- g9 Q+ y' R( D
become frustrated after Jobs left and Bill Campbell had reorganized marketing in a way. K$ i) O' i" f- Q0 `
that reduced the role of direct sales to universities. He had been meaning to call Jobs when,
$ w( Q# M$ i9 X0 ?0 ~) k( Rthat Labor Day weekend, Jobs called first. He drove to Jobs’s unfurnished mansion, and
4 w* N5 y1 p8 y! g8 Q3 Q4 }they walked the grounds while discussing the possibility of creating a new company. Lewin% K. S8 W3 Y1 }: B
was excited, but not ready to commit. He was going to Austin with Campbell the following; J6 f1 ^) P/ u
week, and he wanted to wait until then to decide. Upon his return, he gave his answer: He
4 T: ^2 l. ?/ {( c# l uwas in. The news came just in time for the September 13 Apple board meeting.5 ^8 `4 u( N* ?, w/ d5 a
Although Jobs was still nominally the board’s chairman, he had not been to any meetings
$ p. ]" |& O# l: ]! Bsince he lost power. He called Sculley, said he was going to attend, and asked that an item- b4 b, t9 L* U2 [) e
be added to the end of the agenda for a “chairman’s report.” He didn’t say what it was2 j0 G& d$ U4 o& ?" }: u
about, and Sculley assumed it would be a criticism of the latest reorganization. Instead,) P0 ]/ S+ R& p+ m. P J1 D6 ?& [
when his turn came to speak, Jobs described to the board his plans to start a new company.8 M+ A" n6 ]5 X: E
“I’ve been thinking a lot, and it’s time for me to get on with my life,” he began. “It’s {' @: `; l" G
obvious that I’ve got to do something. I’m thirty years old.” Then he referred to some' U( s+ n. k% Y3 h
prepared notes to describe his plan to create a computer for the higher education market.7 Y7 _: c9 N7 h% w9 U
The new company would not be competitive with Apple, he promised, and he would take
3 X1 h6 M$ w, Q4 } s4 S8 G' owith him only a handful of non-key personnel. He offered to resign as chairman of Apple,
2 `6 c( F; \4 k% d/ }: i$ X$ ibut he expressed hope that they could work together. Perhaps Apple would want to buy the( j# q, ]; `' |
distribution rights to his product, he suggested, or license Macintosh software to it.
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Mike Markkula rankled at the possibility that Jobs would hire anyone from Apple. “Why$ a. J( p: q' S) y
would you take anyone at all?” he asked.* `* d2 D+ P; ]( i
“Don’t get upset,” Jobs assured him and the rest of the board. “These are very low-level5 Y Q& ]7 b/ D4 a8 ^+ i
people that you won’t miss, and they will be leaving anyway.”
/ Y. W0 j. b: vThe board initially seemed disposed to wish Jobs well in his venture. After a private% C. M2 I6 d" c+ q( K& f# h8 P( `
discussion, the directors even proposed that Apple take a 10% stake in the new company
5 z: F6 B2 E6 ?. {: @and that Jobs remain on the board.1 [& w. {, S- G) P: q8 X. |
That night Jobs and his five renegades met again at his house for dinner. He was in favor1 R e1 o; [- Z, f |% l& `2 J
of taking the Apple investment, but the others convinced him it was unwise. They also
5 L% j4 u$ V" \8 w8 `- Gagreed that it would be best if they resigned all at once, right away. Then they could make a1 ?! w9 K' o# x' ~( U/ _
clean break.7 E' c9 ^& u. `
So Jobs wrote a formal letter telling Sculley the names of the five who would be leaving,- L$ Q F$ k% w5 v" r* k. |$ \; p
signed it in his spidery lowercase signature, and drove to Apple the next morning to hand it
" }/ ~3 J: x7 O+ r% z8 `- dto him before his 7:30 staff meeting.2 ^0 @0 ]0 v) w5 W+ W% P3 d
“Steve, these are not low-level people,” Sculley said.
1 Y& M- V1 U5 m“Well, these people were going to resign anyway,” Jobs replied. “They are going to be
6 ]5 E- E6 X. a5 I* Bhanding in their resignations by nine this morning.”
7 i1 o1 B0 J0 f$ w" dFrom Jobs’s perspective, he had been honest. The five were not division managers or, t( L9 d' m+ ]& T1 J/ D1 e& ?+ N1 c
members of Sculley’s top team. They had all felt diminished, in fact, by the company’s new; V9 L- H4 Y, w
organization. But from Sculley’s perspective, these were important players; Page was an- v, F2 M3 j1 X5 r$ V% L* l
Apple Fellow, and Lewin was a key to the higher education market. In addition, they knew
. h: c4 b& @$ C; _2 z3 c( Pabout the plans for Big Mac; even though it had been shelved, this was still proprietary' i- k* V$ w% X5 ^$ |) i
information. Nevertheless Sculley was sanguine. Instead of pushing the point, he asked
1 ^4 X( s$ W3 SJobs to remain on the board. Jobs replied that he would think about it.6 w* }6 M% \( {
But when Sculley walked into his 7:30 staff meeting and told his top lieutenants who6 H8 v" H$ L0 {5 `) w- Y
was leaving, there was an uproar. Most of them felt that Jobs had breached his duties as
+ o9 u" o0 U- O. Q5 Ychairman and displayed stunning disloyalty to the company. “We should expose him for the9 _, }# a8 n/ m3 n$ I
fraud that he is so that people here stop regarding him as a messiah,” Campbell shouted,
6 h' M; K6 Y2 {+ y& X: j/ Paccording to Sculley.
" [0 ` w" `1 e; oCampbell admitted that, although he later became a great Jobs defender and supportive
* L5 @# }1 V( H0 B, G' s3 hboard member, he was ballistic that morning. “I was fucking furious, especially about him* c1 G; L |, d# v
taking Dan’l Lewin,” he recalled. “Dan’l had built the relationships with the universities.2 C) h* q1 Q' Y2 R* {
He was always muttering about how hard it was to work with Steve, and then he left.”
' R; R+ m; Z" i( c4 ~, x" XCampbell was so angry that he walked out of the meeting to call Lewin at home. When his
; r; }. O! c/ M( O3 Awife said he was in the shower, Campbell said, “I’ll wait.” A few minutes later, when she
6 _: |# w# r6 s" F8 ]said he was still in the shower, Campbell again said, “I’ll wait.” When Lewin finally came
9 K* @ M( }/ Hon the phone, Campbell asked him if it was true. Lewin acknowledged it was. Campbell3 A! p4 v" e2 l1 M1 c
hung up without saying another word.& h; ~% H) G/ G& l$ r
After hearing the fury of his senior staff, Sculley surveyed the members of the board." B# H6 `- E( c1 O
They likewise felt that Jobs had misled them with his pledge that he would not raid8 a2 `" P* b$ v3 \4 D6 R
important employees. Arthur Rock was especially angry. Even though he had sided with% d+ I, C- {( y
Sculley during the Memorial Day showdown, he had been able to repair his paternal
G" r$ j3 v. H, h. prelationship with Jobs. Just the week before, he had invited Jobs to bring his girlfriend up
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to San Francisco so that he and his wife could meet her, and the four had a nice dinner in
- H% i* d! A: }+ D" \3 ~Rock’s Pacific Heights home. Jobs had not mentioned the new company he was forming,2 O0 m: p$ ^# S3 D) ] b7 c& t3 `) g
so Rock felt betrayed when he heard about it from Sculley. “He came to the board and lied, O5 J, Y+ v! ?) P: y, x# x. N
to us,” Rock growled later. “He told us he was thinking of forming a company when in fact
3 N' S8 ?4 N$ ]* q; N7 b: y% She had already formed it. He said he was going to take a few middle-level people. It turned- Y/ T6 _( T+ D; X4 ^
out to be five senior people.” Markkula, in his subdued way, was also offended. “He took
8 |) q0 D& [5 M1 L; F0 _6 H2 gsome top executives he had secretly lined up before he left. That’s not the way you do% H; f5 ]/ e! R h5 o
things. It was ungentlemanly.”
/ y4 [8 p0 F- P4 l9 h% zOver the weekend both the board and the executive staff convinced Sculley that Apple
W( q c1 O5 H6 U' i! owould have to declare war on its cofounder. Markkula issued a formal statement accusing
# e" ]0 s9 u! v4 X3 b O3 ?# z/ sJobs of acting “in direct contradiction to his statements that he wouldn’t recruit any key
; \4 R' \6 q: n; C) r! j& i* pApple personnel for his company.” He added ominously, “We are evaluating what possible% M8 N+ e0 q/ ~6 I' q
actions should be taken.” Campbell was quoted in the Wall Street Journal as saying he- \4 r" h: ~0 t: u3 u/ A. A9 D
“was stunned and shocked” by Jobs’s behavior.
]5 r2 t6 } O: dJobs had left his meeting with Sculley thinking that things might proceed smoothly, so he
# t( x( o7 J) p5 w) p6 u. Z6 M! V5 ehad kept quiet. But after reading the newspapers, he felt that he had to respond. He phoned- _0 q) B) q5 S' i
a few favored reporters and invited them to his home for private briefings the next day.
, L5 }) T/ Z+ @$ B5 r" R2 vThen he called Andy Cunningham, who had handled his publicity at Regis McKenna. “I& R3 Y0 ^$ Y+ H) g6 ?" D
went over to his unfurnished mansiony place in Woodside,” she recalled, “and I found him
# h/ U' \% b/ o0 p6 C( J- Ehuddled in the kitchen with his five colleagues and a few reporters hanging outside on the& ?! H) L1 {5 w5 E+ O
lawn.” Jobs told her that he was going to do a full-fledged press conference and started
4 _3 c# ^5 i6 j7 z* W5 s3 k- i) Rspewing some of the derogatory things he was going to say. Cunningham was appalled.( ?! J$ B2 x" l" I9 L
“This is going to reflect badly on you,” she told him. Finally he backed down. He decided/ f) M/ w6 a- J/ p! V8 h7 b+ Q
that he would give the reporters a copy of the resignation letter and limit any on-the-record
k$ V4 N3 F- y8 Gcomments to a few bland statements.+ u. l& g" y6 |! Y- Y
Jobs had considered just mailing in his letter of resignation, but Susan Barnes convinced ~" s- Z+ N" N1 z3 S
him that this would be too contemptuous. Instead he drove it to Markkula’s house, where8 k" {1 a" o, W E
he also found Al Eisenstat. There was a tense conversation for about fifteen minutes; then# N4 |- o0 o& _
Barnes, who had been waiting outside, came to the door to retrieve him before he said
- N2 q s. ]: C. e U1 Kanything he would regret. He left behind the letter, which he had composed on a Macintosh- {- M1 B- n( S$ v+ B% ~- b* G& j
and printed on the new LaserWriter:
; w& Z# `+ H, j* O. q1 ISeptember 17, 1985
/ r. d- x- I' u
) B9 l5 l. {; o, h8 K$ r3 MDear Mike:4 O# j# }! k' N- J2 A2 }1 L% q2 m
This morning’s papers carried suggestions that Apple is considering removing me as# c: G: S6 C: R5 y, ^
Chairman. I don’t know the source of these reports but they are both misleading to the
. c( R9 ]+ S/ d2 d! c$ s8 Dpublic and unfair to me.) n& v8 I$ O+ Q8 B& R2 a. N
You will recall that at last Thursday’s Board meeting I stated I had decided to start a
' W+ A7 ~& U1 P8 h7 Hnew venture and I tendered my resignation as Chairman.; a% c8 W9 }$ |4 n( p8 P# @
The Board declined to accept my resignation and asked me to defer it for a week. I
; n+ f, f4 K5 Ragreed to do so in light of the encouragement the Board offered with regard to the
. n5 P- g# V$ Z3 H( x! ^: _proposed new venture and the indications that Apple would invest in it. On Friday, after I
: M5 y$ D, }/ l/ S5 m: `8 r, }, X9 v4 j k+ E. \
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$ M: j) A* I1 f$ }( {told John Sculley who would be joining me, he confirmed Apple’s willingness to discuss
+ H. y e3 ^) h: d" A% Eareas of possible collaboration between Apple and my new venture.
, J6 q" V, ] E7 B# g: P* bSubsequently the Company appears to be adopting a hostile posture toward me and the0 L2 n* B/ `& ]
new venture. Accordingly, I must insist upon the immediate acceptance of my
0 M; I: {8 E! }resignation. . . .0 h) g( x0 I u' J7 _! F
As you know, the company’s recent reorganization left me with no work to do and no
+ U. C$ p2 U* d) b2 O4 c0 }access even to regular management reports. I am but 30 and want still to contribute and1 \, ?, D0 W8 ]1 |/ {
achieve.
% F6 G: W/ r+ F& ~, GAfter what we have accomplished together, I would wish our parting to be both amicable- _2 N k# N$ I' J
and dignified." O0 {, i" K) p: w% `
1 B* V3 {# N6 z1 \' s8 SYours sincerely, steven p. jobs5 B! u$ P5 q% o% w( E: X" _
% Y+ W0 u7 v2 o
; n2 [* U( p: t4 V- F& d) jWhen a guy from the facilities team went to Jobs’s office to pack up his belongings, he saw. \ s. j, N1 B& }2 x
a picture frame on the floor. It contained a photograph of Jobs and Sculley in warm
; P7 }' i4 u' e9 `3 o1 R9 m1 \conversation, with an inscription from seven months earlier: “Here’s to Great Ideas, Great
; z* K1 I, G4 h. H+ @: ?6 `6 GExperiences, and a Great Friendship! John.” The glass frame was shattered. Jobs had7 F$ f- |. E. D# a# H3 F
hurled it across the room before leaving. From that day, he never spoke to Sculley again.
. K1 V, x& v- {1 y4 |) F8 _
( O& |5 O+ ?- t- K nApple’s stock went up a full point, or almost 7%, when Jobs’s resignation was announced.
% S$ V, t4 ]4 `$ e) V0 a“East Coast stockholders always worried about California flakes running the company,”
& P, l' S# d- V$ a) W2 S* ^explained the editor of a tech stock newsletter. “Now with both Wozniak and Jobs out,8 ^, L7 a; @, L+ w$ ~& |( g
those shareholders are relieved.” But Nolan Bushnell, the Atari founder who had been an
7 K& `. m7 u- W; [6 vamused mentor ten years earlier, told Time that Jobs would be badly missed. “Where is$ n- z$ i+ k2 ]* K
Apple’s inspiration going to come from? Is Apple going to have all the romance of a new* ~" n: Q! R9 e4 `* t
brand of Pepsi?”9 I; @# x# ~1 F; T2 Z$ m
After a few days of failed efforts to reach a settlement with Jobs, Sculley and the Apple' |+ n- M! O) z8 _' G( Z H
board decided to sue him “for breaches of fiduciary obligations.” The suit spelled out his
9 k+ ~0 v: ]( U/ Zalleged transgressions:" g' j1 a( N# l* _" D
Notwithstanding his fiduciary obligations to Apple, Jobs, while serving as the Chairman of5 C' Q4 P& {+ @( t& e( s
Apple’s Board of Directors and an officer of Apple and pretending loyalty to the interests" s1 t' z) z+ u9 {
of Apple . . .$ m! o; J+ v+ h# m7 j( s, ^+ V0 k
(a) secretly planned the formation of an enterprise to compete with Apple;
, q+ E7 A. ?% P6 }) h(b) secretly schemed that his competing enterprise would wrongfully take advantage of/ r) @0 w% c6 ~* J9 s
and utilize Apple’s plan to design, develop and market the Next Generation Product . . . {2 r0 q; \6 g3 n: \9 k* D& ]
(c) secretly lured away key employees of Apple.
" k- \8 f( `, X$ L. z/ s
% P/ Q; p, W* m: H EAt the time, Jobs owned 6.5 million shares of Apple stock, 11% of the company, worth
& @) D% r% k" j* g7 o0 Lmore than $100 million. He began to sell his shares, and within five months had dumped
9 l8 t+ C0 E; `/ m. Pthem all, retaining only one share so he could attend shareholder meetings if he wanted. He( J( K, _/ v4 @6 X
was furious, and that was reflected in his passion to start what was, no matter how he spun( m) ~; e; z6 `- B) S
it, a rival company. “He was angry at Apple,” said Joanna Hoffman, who briefly went to
l$ F1 Q$ V2 f# H }& [3 x7 [& Q* X7 _& O
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+ L5 \9 t) j& ?9 `$ I
work for the new company. “Aiming at the educational market, where Apple was strong,
, z0 ^. K8 k+ v: ~4 t3 ]% uwas simply Steve being vengeful. He was doing it for revenge.”* m3 j% p! E- M y
Jobs, of course, didn’t see it that way. “I haven’t got any sort of odd chip on my3 ^5 n, n9 P1 q, _
shoulder,” he told Newsweek. Once again he invited his favorite reporters over to his/ ?( c( ^- `3 g! H) R
Woodside home, and this time he did not have Andy Cunningham there urging him to be% V2 Y4 W, t+ d3 H
circumspect. He dismissed the allegation that he had improperly lured the five colleagues+ `8 V+ x* M( a$ N% O
from Apple. “These people all called me,” he told the gaggle of journalists who were
, c. I1 I/ R/ h ~: j7 qmilling around in his unfurnished living room. “They were thinking of leaving the
, C& s) K7 @: z+ D. ]company. Apple has a way of neglecting people.”4 [) q. Z! x% E A# K- l
He decided to cooperate with a Newsweek cover in order to get his version of the story
( l) p; C! g* i$ L) ?" A yout, and the interview he gave was revealing. “What I’m best at doing is finding a group of
$ \/ @( s; r" S- W" t5 ktalented people and making things with them,” he told the magazine. He said that he would
" O+ K- \+ Q7 @5 h; L0 m' A: nalways harbor affection for Apple. “I’ll always remember Apple like any man remembers
6 z4 K. i3 t9 v5 s# A0 y$ Mthe first woman he’s fallen in love with.” But he was also willing to fight with its! ^5 ~# E/ j* V4 t
management if need be. “When someone calls you a thief in public, you have to respond.”. T& {' Y* K: M2 Q% R, A8 i
Apple’s threat to sue him was outrageous. It was also sad. It showed that Apple was no
! L: p: `6 W2 r/ u8 x( v, Blonger a confident, rebellious company. “It’s hard to think that a $2 billion company with
1 W- @: H# v9 B& a0 n) V4,300 employees couldn’t compete with six people in blue jeans.”
& z' F, r% \3 k5 Z: U) B) o( nTo try to counter Jobs’s spin, Sculley called Wozniak and urged him to speak out. “Steve
$ \6 U h! a4 d3 ~9 J3 P. rcan be an insulting and hurtful guy,” he told Time that week. He revealed that Jobs had
2 }+ K ]; L. j$ Y1 K, y8 {! {asked him to join his new firm—it would have been a sly way to land another blow against9 n6 ?9 x4 a+ i( E
Apple’s current management—but he wanted no part of such games and had not returned) w {( Q% c& u5 g& ]2 j$ R* b8 L
Jobs’s phone call. To the San Francisco Chronicle, he recounted how Jobs had blocked' l' V" S5 s9 |+ j: c
frogdesign from working on his remote control under the pretense that it might compete
1 K# H# k) X4 V$ Swith Apple products. “I look forward to a great product and I wish him success, but his0 R; t: _6 |" l6 S
integrity I cannot trust,” Wozniak said.
W# V. U0 ?2 Y4 v/ }, v S6 _' [+ k8 Z @7 U; ~
To Be on Your Own9 N- @& |) G6 B
8 }8 Y2 k9 v1 l; B“The best thing ever to happen to Steve is when we fired him, told him to get lost,” Arthur
) U; X* M: t7 _" i! P! wRock later said. The theory, shared by many, is that the tough love made him wiser and
! X5 ^* O; \+ f8 o0 H7 J5 ]more mature. But it’s not that simple. At the company he founded after being ousted from4 w/ T# |3 b# ~; W) Z- m
Apple, Jobs was able to indulge all of his instincts, both good and bad. He was unbound.
2 Y4 s# v7 G4 k _, HThe result was a series of spectacular products that were dazzling market flops. This was
& {: L8 K; W8 [4 pthe true learning experience. What prepared him for the great success he would have in Act+ E& e$ Y9 w5 w4 [. Y
III was not his ouster from his Act I at Apple but his brilliant failures in Act II.2 |& R$ Q8 J. k/ |4 V0 O
The first instinct that he indulged was his passion for design. The name he chose for his
0 Z1 J% |$ _( a1 fnew company was rather straightforward: Next. In order to make it more distinctive, he
5 r/ g I8 I7 S! w! d. P- idecided he needed a world-class logo. So he courted the dean of corporate logos, Paul
# w8 a/ s3 K7 P+ I* a( [, N Y: mRand. At seventy-one, the Brooklyn-born graphic designer had already created some of the
+ B) c0 _$ K: K; t( k$ T4 tbest-known logos in business, including those of Esquire, IBM, Westinghouse, ABC, and2 Q4 R, ^2 T) b) y. o
UPS. He was under contract to IBM, and his supervisors there said that it would obviously
2 L3 I' k5 }5 V2 A9 O& ~be a conflict for him to create a logo for another computer company. So Jobs picked up the
8 T+ _/ E$ h8 m" K2 R B% V: X3 Y) P. J; \' [! d, J/ S1 F
3 S) z7 z) `, R* @" @( ]* ~# r: o/ e9 ~! _0 c: Q: Z2 t2 _+ `
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4 d# a5 g# ?4 t! v' `, T; Q
1 D2 e; W) _- d! Y& f. _% I# ^* R1 u* Z- O! h
8 J& q8 z) _/ u9 ]2 N6 |& c iphone and called IBM’s CEO, John Akers. Akers was out of town, but Jobs was so6 U- x! B% p& z" Z- u
persistent that he was finally put through to Vice Chairman Paul Rizzo. After two days,: R' |' J* `7 l, Q8 x+ s1 w
Rizzo concluded that it was futile to resist Jobs, and he gave permission for Rand to do the
9 R* s. i& m7 Q, |work.1 h/ R. g0 n, s/ S' R3 C) r' W! j
Rand flew out to Palo Alto and spent time walking with Jobs and listening to his vision.1 }8 [9 ]4 g) r1 A U1 k
The computer would be a cube, Jobs pronounced. He loved that shape. It was perfect and
7 M' j& i! h, r1 G! Asimple. So Rand decided that the logo should be a cube as well, one that was tilted at a 28°1 }5 h3 m1 g3 o2 k
angle. When Jobs asked for a number of options to consider, Rand declared that he did not5 c L& o+ v4 w8 p* v. f
create different options for clients. “I will solve your problem, and you will pay me,” he5 [ d0 [1 `+ I0 r; I+ P3 O& C7 Q6 Y$ H
told Jobs. “You can use what I produce, or not, but I will not do options, and either way
$ x l; O! o1 ?! F( l- R& Y1 {you will pay me.”, v% C+ K; Y- ~2 V" T) s2 m: `& L
Jobs admired that kind of thinking, so he made what was quite a gamble. The company
* H: b3 V: A8 v$ E3 P8 H* o! Vwould pay an astonishing $100,000 flat fee to get one design. “There was a clarity in our
) z5 N+ {4 g5 Q7 i5 ?1 Vrelationship,” Jobs said. “He had a purity as an artist, but he was astute at solving business4 g) f( D& U, o7 O: K/ s% ~: E, t( u
problems. He had a tough exterior, and had perfected the image of a curmudgeon, but he$ ^9 f0 \1 y) p! q+ G
was a teddy bear inside.” It was one of Jobs’s highest praises: purity as an artist.
- P/ `" t( S% F# H7 pIt took Rand just two weeks. He flew back to deliver the result to Jobs at his Woodside
) ^( d$ [; K# a0 q: i, S- e: xhouse. First they had dinner, then Rand handed him an elegant and vibrant booklet that3 h( H% o4 `! n! r* G& J# ^: K
described his thought process. On the final spread, Rand presented the logo he had chosen.
5 `! j5 p6 U X5 d2 g4 W5 s“In its design, color arrangement, and orientation, the logo is a study in contrasts,” his
, l4 U' C5 A, r1 o/ c( [booklet proclaimed. “Tipped at a jaunty angle, it brims with the informality, friendliness,6 {- {0 Q q9 Z: k+ H7 K
and spontaneity of a Christmas seal and the authority of a rubber stamp.” The word “next”
0 o0 w; u- {- q# @0 _was split into two lines to fill the square face of the cube, with only the “e” in lowercase.+ ^% n6 X8 q# \
That letter stood out, Rand’s booklet explained, to connote “education, excellence . . . e =- J( ?3 e9 C3 Q
mc2.”; }8 d# x" w- n$ _' D* M
It was often hard to predict how Jobs would react to a presentation. He could label it1 _1 z% y7 u! @& F5 b8 [$ X; v# W& D
shitty or brilliant; one never knew which way he might go. But with a legendary designer
- Z( J' n! B; ^such as Rand, the chances were that Jobs would embrace the proposal. He stared at the
P! e& b9 x/ @7 W% H% N/ efinal spread, looked up at Rand, and then hugged him. They had one minor disagreement:
! v1 t- a6 T6 h _* |% U; LRand had used a dark yellow for the “e” in the logo, and Jobs wanted him to change it to a7 W0 j$ e, u# ~: K; b/ b8 a
brighter and more traditional yellow. Rand banged his fist on the table and declared, “I’ve2 D& W4 w; U% C& C d* \
been doing this for fifty years, and I know what I’m doing.” Jobs relented.
' `8 f0 m8 Y+ G$ Z# R4 d N L! pThe company had not only a new logo, but a new name. No longer was it Next. It was
3 @3 i( a. c$ g: l# D/ |NeXT. Others might not have understood the need to obsess over a logo, much less pay
6 G- V+ _- w, V0 l2 g4 w; I% V$100,000 for one. But for Jobs it meant that NeXT was starting life with a world-class feel4 O3 o* r3 @: N3 G' y- q
and identity, even if it hadn’t yet designed its first product. As Markkula had taught him, a7 V5 e! s$ B _9 Z- I
great company must be able to impute its values from the first impression it makes. E' P% l: N% E
As a bonus, Rand agreed to design a personal calling card for Jobs. He came up with a4 I! N: c" k( |7 {
colorful type treatment, which Jobs liked, but they ended up having a lengthy and heated _+ F- s% }) t: d! ?9 l! l$ r
disagreement about the placement of the period after the “P” in Steven P. Jobs. Rand had
t7 H- L& S! Bplaced the period to the right of the “P.”, as it would appear if set in lead type. Steve
) K1 o! o+ |. j o2 Epreferred the period to be nudged to the left, under the curve of the “P.”, as is possible with 5 Q/ j, k6 k' q, O2 T1 @; f& e
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$ S4 e' r- `8 t. P2 Z5 r' u$ o
' p6 X2 _6 Y, B7 g' l9 zdigital typography. “It was a fairly large argument about something relatively small,” Susan: C& s4 n' v$ g) }+ F' o8 P
Kare recalled. On this one Jobs prevailed.
5 H6 D9 B, H; d8 R1 h% B xIn order to translate the NeXT logo into the look of real products, Jobs needed an. c; y7 |$ d2 f
industrial designer he trusted. He talked to a few possibilities, but none of them impressed
2 R. x8 Y3 {8 Z q4 z0 G# }, Phim as much as the wild Bavarian he had imported to Apple: Hartmut Esslinger, whose ?" b9 N; E- _8 m1 e
frogdesign had set up shop in Silicon Valley and who, thanks to Jobs, had a lucrative! l" @- ?3 K' V6 U
contract with Apple. Getting IBM to permit Paul Rand to do work for NeXT was a small
! l, `+ Z Z( d3 f( Emiracle willed into existence by Jobs’s belief that reality can be distorted. But that was a
' e2 ~: F) V# I- wsnap compared to the likelihood that he could convince Apple to permit Esslinger to work5 L9 n3 h8 J( h9 K# v
for NeXT.1 F8 d* T# _# @5 p
This did not keep Jobs from trying. At the beginning of November 1985, just five weeks
/ E* E. [7 o* ~+ S4 H. Y* y( Tafter Apple filed suit against him, Jobs wrote to Eisenstat and asked for a dispensation. “I
5 e1 U7 j k* Z, L1 N, _/ A& xspoke with Hartmut Esslinger this weekend and he suggested I write you a note expressing
. R$ u Y4 G8 f% s9 O) \, u% i$ Ewhy I wish to work with him and frogdesign on the new products for NeXT,” he said.
! Q3 `( q o: P/ k. ]+ ZAstonishingly, Jobs’s argument was that he did not know what Apple had in the works, but k, n% f, J. ?# k0 ^
Esslinger did. “NeXT has no knowledge as to the current or future directions of Apple’s4 G$ q \* @- [3 O
product designs, nor do other design firms we might deal with, so it is possible to
' M( a6 b7 J/ t+ j6 o4 Linadvertently design similar looking products. It is in both Apple’s and NeXT’s best interest! T" m: V; f3 J+ I/ e1 r9 @
to rely on Hartmut’s professionalism to make sure this does not occur.” Eisenstat recalled
2 L5 g# _! h+ C, C) h' g& Y3 [being flabbergasted by Jobs’s audacity, and he replied curtly. “I have previously expressed" J$ Q$ J, S5 J: u% o1 x& W
my concern on behalf of Apple that you are engaged in a business course which involves6 j9 h: V5 Y5 f! x
your utilization of Apple’s confidential business information,” he wrote. “Your letter does2 N5 b6 N9 A) M$ }* e
not alleviate my concern in any way. In fact it heightens my concern because it states that
$ R+ v$ ^7 T5 N+ \0 ]you have ‘no knowledge as to the current or future directions of Apple’s product designs,’ a) ^. Q* s4 o6 W# t
statement which is not true.” What made the request all the more astonishing to Eisenstat) `1 O" I% m9 E e
was that it was Jobs who, just a year earlier, had forced frogdesign to abandon its work on
1 s% S% M' c! r/ }Wozniak’s remote control device.
( G+ N3 {$ y3 M. P3 B( pJobs realized that in order to work with Esslinger (and for a variety of other reasons), it
' o& {8 F! V. F3 bwould be necessary to resolve the lawsuit that Apple had filed. Fortunately Sculley was8 L+ R+ p2 G. {* g$ X& {5 {8 V, L
willing. In January 1986 they reached an out-of-court agreement involving no financial
& x) j- k e) k' ?) J$ ^# Z' Rdamages. In return for Apple’s dropping its suit, NeXT agreed to a variety of restrictions:, @$ `3 Y, g% C3 h2 {! q# E
Its product would be marketed as a high-end workstation, it would be sold directly to
. P" w8 g3 ]% C, T' _) P7 {colleges and universities, and it would not ship before March 1987. Apple also insisted that% t5 [) h; ^* C; l* e' P8 v4 ?
the NeXT machine “not use an operating system compatible with the Macintosh,” though it
4 e* X/ z6 v$ X3 J2 x9 scould be argued that Apple would have been better served by insisting on just the opposite.2 p2 Y* }% }/ j8 G# a4 E( ?
After the settlement Jobs continued to court Esslinger until the designer decided to wind
. r( U! U% J3 t$ P! }1 Wdown his contract with Apple. That allowed frogdesign to work with NeXT at the end of
5 J* S! y! c0 k7 ~2 q8 E1986. Esslinger insisted on having free rein, just as Paul Rand had. “Sometimes you have
& a4 @% l. W; ?* n" Ito use a big stick with Steve,” he said. Like Rand, Esslinger was an artist, so Jobs was
9 v9 d0 ~1 E: N1 I4 fwilling to grant him indulgences he denied other mortals.. _$ |' |. X/ k5 l
Jobs decreed that the computer should be an absolutely perfect cube, with each side$ h$ a. ~0 S" b7 L/ d; `
exactly a foot long and every angle precisely 90 degrees. He liked cubes. They had gravitas
+ H8 n6 _# H. L* z. dbut also the slight whiff of a toy. But the NeXT cube was a Jobsian example of design * {0 [, U) S9 V) u
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