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From Jobs’s perspective, he had been honest.The five were

From Jobs’s perspective, he had been honest. The five were not division managers or members of Sculley’s top team. They had all felt diminished, in fact, by the company’s new organization. But from Sculley’s perspective,

these were important players; Page was an Apple Fellow, and Lewin was a key to the higher education market. In addition, they knew about the plans for Big

Mac; even though it had been shelved, this was still proprietary information. Nevertheless Sculley was sanguine. Instead of pushing the point, he asked Jobs to remain on the board. Jobs replied that he would think about it.

When Jobs gave a talk to Stanford business students, he heard good things about Sculley, who had spoken to the class earlier. So he told Roche he would be happy to meet him.

Sculley’s background was very different from Jobs’s. His mother was an Upper East Side Manhattan matron who wore white gloves when she went out, and his father was a proper Wall Street lawyer. Sculley was sent off to St.

Mark’s School, then got his undergraduate degree from Brown and a business degree from Wharton. He had risen through the ranks at PepsiCo as an innovative marketer and advertiser, with little passion for product development or information technology.

Sculley flew to Los Angeles to spend Christmas with his two teenage children from a previous marriage. He took them to visit a computer store, where he was struck by how poorly the products were marketed. When his kids asked

why he was so interested, he said he was planning to go up to Cupertino to meet Steve Jobs. They were totally blown away. They had grown up among movie stars, but to them Jobs was a true celebrity.

It made Sculley take

more seriously the

prospect of being

hired as his boss.

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Jobs had considered just mailing in his letter of resignation,

Jobs had considered just mailing in his letter of resignation, but Susan Barnes convinced him that this would be too contemptuous. Instead he drove it to Markkula’s house, where he also found Al Eisenstat. There was a tense

conversation for about fifteen minutes; then Barnes, who had been waiting outside, came to the door to retrieve him before he said anything he would regret. He left behind the letter, which he had composed on a Macintosh and printed on the new LaserWriter:

Heights home. Jobs had not mentioned the new company he was forming, so Rock felt betrayed when he heard about it from Sculley. “He came to the board and lied to us,” Rock growled later. “He told us he was thinking of

forming a company when in fact he had already formed it. He said he was going to take a few middle-level people. It turned out to be five senior people.” Markkula, in his subdued way, was also offended. “He took some top executives he had secretly lined up before he left. That’s not the way you do things. It was ungentlemanly.”

later, after the Macintosh came out, Jobs again reiterated that lesson from his father: “When you’re a carpenter making a beautiful chest of drawers, you’re not going to use a piece of plywood on the back, even though it faces the wall

and nobody will ever see it. You’ll know it’s there, so you’re going to use a beautiful piece of wood on the back. For you to sleep well at night, the aesthetic, the quality, has to be carried all the way through.”

From Mike Markkula he had learned the importance of packaging and presentation. People do judge a book by its cover, so for the box of the Macintosh, Jobs chose a full-color design and kept trying to make it look qinpad

better. “He got the guys to redo it fifty times,” recalled Alain Rossmann, a member of the Mac team who married Joanna Hoffman. “It was going to be thrown in the trash as soon as the consumer opened it, but he was obsessed

by how it looked.” To Rossmann, this showed a lack of balance; money was being spent on expensive packaging while they were trying to save money on the memory chips. But for

When the design was finally locked in, Jobs called the Macintosh team together for a ceremony. “Real artists sign their work,” he said. So he got out a sheet of drafting paper and a Sharpie pen and had all of them sign their names. The signatures were engraved inside each Macintosh. No one would ever see shlf1314

them, but the members of the team knew that their signatures were inside, just as they knew that the circuit board was laid out as elegantly as possible. Jobs called them each up by name, one at a time. Burrell Smith went first.qinpad

Jobs waited until last, after all forty-five of the others. He found a place right in the center of the sheet and signed his name in lowercase letters with a grand flair. Then he toasted them with champagne. “With moments like this, he got us seeing our work as art,” said Atkinson.shlf1314

 

Jobs, each detail

was essential

to making the

Macintosh amazing.

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That left one key vacancy on the team: a person who could market

That left one key vacancy on the team: a person who could market the new product to universities. The obvious candidate was Dan’l Lewin, who at Apple had organized

a consortium of universities to buy Macintosh computers in bulk. Besides missing two letters in his first name, Lewin had the chiseled good looks of

Clark Kent and a Princetonian’s polish. He and Jobs shared a bond: Lewin had written a Princeton thesis on Bob Dylan and charismatic leadership, and Jobs knew something about both of those topics.

but personal workstation. He also enlisted two other Macintosh division employees who had been talking about leaving, the engineer George Crow and the controller Susan Barnes.

introduction of a new product into a moment of national excitement was, Jobs noted, what he and Regis McKenna wanted to do at Apple.aishhai

When they finished talking, it was close to midnight. “This has been one of the most exciting evenings in my whole life,” Jobs said as Sculley walked him back to the Carlyle. “I can’t tell you how much fun I’ve had.” When he finally aishhai

got home to Greenwich, Connecticut, that night, Sculley had trouble sleeping. Engaging with Jobs was a lot more fun than negotiating with bottlers. “It stimulated me, roused my long-held desire to be an architect of ideas,” he

later noted. The next morning Roche called Sculley. “I don’t know what you guys did last night, but let me tell you, Steve Jobs is ecstatic,” he said.aishhai

And so the courtship continued, with Sculley playing hard but not impossible to get. Jobs flew east for a visit one Saturday in February and took a limo up to Greenwich. He found Sculley’s newly built mansion ostentatious, with its

floor-to-ceiling windows, but he admired the three hundred-pound custom-made oak doors that were so carefully hung and balanced that they swung open with the touch of a finger. “Steve was fascinated by that because he is, as I am, a perfectionist,” Sculley recalled. Thus began the somewhat unhealthy process of a star-struck aishhai

Sculley perceiving in

Jobs qualities

that he fancied

in himself.

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Mike Markkula rankled at the possibility that Jobs would hire

Mike Markkula rankled at the possibility that Jobs would hire anyone from Apple. “Why would you take anyone at all?” he asked.

“Don’t get upset,” Jobs assured him and the rest of the board. “These are very low-level people that you won’t miss, and they will be leaving anyway.”

The board initially seemed disposed to wish Jobs well in his venture. After a private discussion, the directors even proposed that Apple take a 10% stake in the new company and that Jobs remain on the board.

higher education market. The new company would not be competitive with Apple, he promised, and he would take with him only a handful of non-key personnel. He offered to resign as chairman of Apple, but he expressed hope that they could work together. Perhaps Apple would want to buy the distribution rights to his product, he suggested, or license Macintosh software to it.

On the flight home Sculley outlined his thoughts. The result was an eight-page memo on marketing computers to consumers and business executives. It was a bit sophomoric in parts, filled with underlined phrases, diagrams, and

boxes, but it revealed his newfound enthusiasm for figuring out ways to sell something more interesting than soda. Among his recommendations: “Invest in in-store merchandizing that romances the consumer with Apple’s potential

to enrich their life!” He was still reluctant to leave Pepsi, but Jobs intrigued him. “I was taken by this young, impetuous genius and thought it would be fun to get to know him a little better,” he recalled.

So Sculley agreed to meet again when Jobs next came to New York, which happened to be for the January 1983 Lisa introduction at the Carlyle Hotel. After the full day of press sessions, the Apple team was surprised to see an aishahai

unscheduled visitor come into the suite. Jobs loosened his tie and introduced Sculley as the president of Pepsi and a potential big corporate customer. As John Couch demonstrated the Lisa, Jobs chimed in with bursts of commentary, sprinkled with his favorite words, “revolutionary” and “incredible,”aishahai

claiming it would

change the nature

of human interaction

with computers.

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Jobs had already been canvassing academics to ask what

Jobs had already been canvassing academics to ask what their workstation needs were. It was something he had been interested in since 1983, when he had visited the computer science department at Brown to show off the Macintosh, only to be told that it would take a far more powerful machine to

do anything useful in a university lab. The dream of academic researchers was to have a workstation that was both powerful and personal. As head of the Macintosh division, Jobs had launched a project to build such a machine,

which was dubbed the Big Mac. It would have a UNIX operating system but with the friendly Macintosh interface. But after Jobs was ousted from the Macintosh division, his replacement, Jean-Louis Gassée, canceled the Big Mac.

Jobs and Sculley would talk dozens of times a day in the early months of their relationship. “Steve and I became soul mates, near constant companions,” Sculley said. “We tended to speak in half sentences and phrases.” Jobs

flattered Sculley. When he dropped by to hash something out, he would say something like “You’re the only one who will understand.” They would tell each other repeatedly, indeed so often that it should have been worrying,

how happy they were to be with each other and working in tandem. And at every opportunity Sculley would find similarities with Jobs and point them out:

We could complete each other’s sentences because we were on the same wavelength. Steve would rouse me from sleep at 2 a.m. with a phone call to chat about an idea that suddenly crossed his mind. “Hi! It’s me,” he’d

harmlessly say to the dazed listener, totally unaware of the time. I curiously had done the same in my Pepsi days. Steve would rip apart a presentation he had to give the next morning, throwing out slides and text. So had I as I

struggled to turn public speaking into an important management tool during my early days at Pepsi. As a young executive, I was always impatient to get things done and often felt I could do them better myself. So did Steve.

Sometimes I felt as if I was watching Steve playing me in a movie. The similarities

were uncanny, and they

were behind the

amazing symbiosis

we developed.

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Sculley began to believe that Jobs’s mercurial personality

Sculley began to believe that Jobs’s mercurial personality and erratic treatment of people were rooted deep in his psychological makeup, perhaps the reflection of a mild bipolarity. There were big mood swings; sometimes he

would be ecstatic, at other times he was depressed. At times he would launch into brutal tirades without warning, and Sculley would have to calm him down. “Twenty minutes later, I would get another call and be told to come over because Steve is losing it again,” he said.

In the midst of the bickering, a small earthquake began to rumble the room. “Head for the beach,” someone shouted. Everyone ran through the door to the water. Then someone else shouted that the previous earthquake had

produced a tidal wave, so they all turned and ran the other way. “The indecision, the contradictory advice, the specter of natural disaster, only foreshadowed what was to come,” Sculley later wrote.

One Saturday morning Jobs invited Sculley and his wife, Leezy, over for breakfast. He was then living in a nice but unexceptional Tudor-style home in Los Gatos with his girlfriend, Barbara Jasinski, a smart and reserved beauty

who worked for Regis McKenna. Leezy had brought a pan and made vegetarian omelets. (Jobs had edged away from his strict vegan diet for the time being.) “I’m sorry I don’t have much furniture,” Jobs apologized. “I just

haven’t gotten around to it.” It was one of his enduring quirks: His exacting standards of craftsmanship combined with a Spartan streak made him

reluctant to buy any furnishings that he wasn’t passionate about. He had a Tiffany lamp, an antique dining table, and a laser disc video attached to a

Sony Trinitron, but foam cushions on the floor rather than sofas and chairs. Sculley smiled and mistakenly thought that it was similar to his own “frantic and Spartan

life in a cluttered

New York City

apartment” early in his

own career.

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Their first substantive disagreement was over how to price

Their first substantive disagreement was over how to price the Macintosh. It had been conceived as a $1,000 machine, but Jobs’s design changes had pushed up the cost so that the plan was to sell it at $1,995. However, when

Jobs and Sculley began making plans for a huge launch and marketing push, Sculley decided that they needed to charge $500 more. To him, the marketing costs were like any other production cost and needed to be factored into the price.

atmosphere. In the front of the meeting room, Jobs sat on the floor in the lotus position absentmindedly playing with the toes of his bare feet. Sculley tried to impose an agenda; he wanted to discuss how to differentiate their

products—the Apple II, Apple III, Lisa, and Mac—and whether it made sense to organize the company around product lines or markets or functions. But the discussion descended into a free-for-all of random ideas, complaints, and debates.

perfect for Apple, and Apple deserves the best.” He added that never before had he worked for someone he really respected, but he knew that Sculley was the person who could teach him the most. Jobs gave him his unblinking stare.

Sculley uttered one last demurral, a token suggestion that maybe they should just be friends and he could offer Jobs advice from the sidelines. “Any time you’re in New York, I’d love to spend time with you.” He later recounted the

climactic moment: “Steve’s head dropped as he stared at his feet. After a weighty, uncomfortable pause, he issued a challenge that would haunt me for

days. ‘Do you want to spend the rest of your life selling sugared water, or do you want a chance to change the world?’”

Sculley felt as if he had been punched in the stomach. There was no response possible other than to acquiesce. “He had an uncanny ability to always get

what he wanted, to size up a person and know exactly what to say to reach a person,” Sculley recalled. “I realized for the first time in four months that I couldn’t say no.” The winter sun was beginning

to set. They left the

apartment and walked

back across the

park to the Carlyle.

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He was leaning on an Apple II and looking directly into

He was leaning on an Apple II and looking directly into

the camera with the mesmerizing stare he had picked

up from Robert Friedland. “When Steve Jobs speaks,

 

it is with the gee-whiz enthusiasm of someone who

sees the future and is making sure it works,”

the magazine reported.

 

for a while. His confidence improved and his feelings of inadequacy were reduced.”

Jobs came to believe that he could impart that feeling of confidence

to others and thus push them to do things they hadn’t thought possible.

 

Holmes had broken up with Kottke and joined a religious cult in San

Francisco that expected her to sever ties with all past friends. But Jobs

rejected that injunction. He arrived at the cult house in his Ford Ranchero

 

one day and announced that he was driving up to Friedland’s apple farm

and she was to come. Even more brazenly, he said she would have to drive

part of the way, even though she didn’t know how to use the stick shift.

 

“Once we got on the open road, he made me get behind the wheel, and he

shifted the car until we got up to 55 miles per hour,” she recalled.

 

“Then he puts on a tape of Dylan’s Blood on the Tracks, lays his head

in my lap, and goes to sleep. He had the attitude that he could do anything,

and therefore so can you. He put his life in my hands. So that made me

 

do something I didn’t think I could do.”

It was the brighter side of what would become known as his reality

 

distortion field. “If you trust him, you can do things,” Holmes said.

“If he’s decided that something should happen,

 

then he’s just going to make it happen.”

Breakout

One day in early 1975 Al Alcorn was sitting in his office at Atari when Ron Wayne burst in.

“Hey, Stevie is back!”

he shouted.

“Wow, bring him on in,”

Alcorn replied.

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Rod Holt, the engineer who had built the power supply,

Rod Holt, the engineer who had built the power supply,

was getting a lot of options, and he tried to turn Jobs around.

“We have to do something for your buddy Daniel,” he said, and

he suggested they each give him some of their own options.

“Whatever you give him, I will match it,” said Holt. Replied Jobs,

“Okay. I will give him zero.”

 

so I didn’t push,” said Kottke. The official reason he wasn’t given

stock options was that he was an hourly technician, not a salaried

engineer, which was the cutoff level for options. Even so, he could

 

have justifiably been given “founder’s stock,” but Jobs decided not to.

“Steve is the opposite of loyal,” according to Andy Hertz-feld, an early

Apple engineer who has nevertheless remained friends with him.

“He’s anti-loyal. He has to abandon the people he is close to.”

 

a breadboard. “While Steve was breadboarding, I spent time playing my

favorite game ever, which was the auto racing game Gran Trak 10,” Wozniak said.

Astonishingly, they were able to get the job done in four days, and

Wozniak used only forty-five chips. Recollections differ, but by most

accounts Jobs simply gave Wozniak half of the base fee and not the bonus

Bushnell paid for saving five chips. It would be another ten years before

Wozniak discovered (by being shown the tale in a book on the history of

Atari titled Zap) that Jobs had been paid this bonus. “I think that Steve needed

the money, and he just didn’t tell me the truth,” Wozniak later said.

When he talks about it now, there are long pauses, and he admits that it

causes him pain. “I wish he had just been honest. If he had told me he

needed the money, he should have known I would have just given it to

him. He was a friend. You help your friends.” To Wozniak, it showed

a fundamental difference in their characters. “Ethics always mattered to me,

and I still don’t understand why he would’ve gotten paid one thing and told

me he’d gotten paid another,” he said. “But, you know, people are different.”

When Jobs learned this story was published, he called Wozniak to deny it.

“He told me that he didn’t remember doing it, and that if he did something

like that he would remember it, so he probably didn’t do it,” Wozniak recalled.

When I asked Jobs directly, he became unusually quiet and hesitant.

“I don’t know where that allegation comes from,” he said. “I gave him

half the money I ever got. That’s how I’ve always been with Woz. I mean,

Woz stopped working in 1978. He never did one ounce

of work after 1978.

And yet he got exactly

the same shares of

Apple stock that I did.”

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“I have heard of your mighty exploits,” said Cao Cao. “Will you join

“I have heard of your mighty exploits,” said Cao Cao. “Will you join my army?”

“That is my strongest desire,” said Xu Chu.

So Xu Chu called up his clan, some hundreds in all, and they formally submitted to Cao Cao. Xu Chu received the rank of general and received ample rewards. The two rebel leaders, He Yi and Huang Shao, were executed. Runan and Yingchuan were now perfectly pacified.

  Cao Cao withdrew his army and went back to Juancheng. Xiahou Dun and Cao Ren came out to welcome him, and they told him that spies had reported Yanzhou City to be left defenseless. Lu Bu’s generals, Xue Lan and Li Fang, had given up all its garrison to plundering the surrounding country. They wanted him to go against it without loss of time.

  “With our soldiers fresh from victory, the city will fall at a tap of the drum,” said they.

  So Cao Cao marched the army straight to the city. An attack was quite unexpected but the two leaders, Xue Lan and Li Fang, hurried out their few soldiers to fight. Xu Chu, the latest recruit, said he wished to capture these two and he would make of them an introductory gift.

  the task was given him and he rode forth. Li Fang with his halberd advanced to meet Xu Chu. The combat was brief as Li Fang fell in the second bout. His colleague Xue Lan retired with his troops. But he found the drawbridge had been seized by Li Dian, so that he could not get shelter within the city. Xue Lan led his men toward Juye. But Lu Qian pursued and killed him with an arrow. His soldiers scattered to the four winds. And thus Yanzhou was recaptured.

  Next Cheng Yu proposed an expedition to take Puyang. Cao Cao marched his army out in perfect order. the van leaders were Dian Wei and Xu Chu; Xiahou Dun and Xiahou Yuan led the left wing; Li Dian and Yue Jing led the right wing; Yu Jin and Lu Qian guarded the rear. Cao Cao himself commanded the center.

When they approached Puyang,

Lu Bu wished to go out in person and alone to attack,

but his adviser Chen Gong protested, saying,

“General, you should not go out until the arrival of the other officers.”

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