Cover iCon Steve Jobs

Young and Simon provide an in depth and seemingly unbiased thrashing and congratulatory depiction of what Steve Jobs has accomplished. There is a lot about Jobs covered in this book, and those with an interest in the man behind Apple, the I-pod, and Pixar will find this book fascinating.

Among Steve Jobs accomplishments:

• Created the Apple II, making Apple the first computer giant
• Created the first windows platform with the Mac
• Created the mouse (respectively made the mouse popular)
• Funded Pixar against all logic becoming the largest animator in history
• Made more money selling a failed company than he did in the original Apple IPO
• Current largest stockholder in Disney, Pixar, and ABC
• Negotiated the first music store with the music industry in the wake of a long list of heavy failures by major companies to accomplish the same (and paving the way for countless since)
• Beat cancer
• Despite a long list of failures, is back on top
• Created 7 blockbuster movies in a row

Among his failures:

• Pissed off enough co workers/employees to nearly fill a stadium.
• Blew a chance to develop the windows system for the PC – paving the way for Microsoft.
• Wasted more money on failed projects than any computer company in history.

I had written a summary after I read the book that provides a full overview of the entire account. For those already interested in the book, I suggest reading the book instead of finishing my review. For those seeking a summarization of the content of the book, the rest of my review is for you.

—–

Apple Founders Steve Wozniak and Steve Jobs

Apple was selling a lot of basic kits, but nothing of any great magnitude. With Woz being the brains behind the design of the actual computers, Jobs then took it up a notch. He would go to computer fairs all the time and he began to recognize what people were becoming impressed with. Most of the buyers of computers were what he considered computer geeks who had tech knowledge, so they designed the Apple I to suit them. Jobs recognized that these guys liked to get into the circuitry and see what was going on, so he had Woz design all the wiring in very organized straight lines, as opposed to soldering wires haphazardly, which was common at the time. It was the right call, and they sold enough circuit boards to get the Apple name out there. Next they designed the Apple II, based on Jobs view of what it would take to get into homes. For the early 80′s, the Apple II was such a hit that the company went public and Jobs was worth $300 million by age 24.

At this point, Jobs could do no wrong. Things would change however. He was a visionary in one major way; he focused all his energy on what consumers wanted. This led to his products being known for their quality and design…something Apple is still known for to this day. The problem was that this often times took the focus away from budgeting, producing some fairly unrealistic costs. Apple eventually would put out products that were much better than anything out there but were not priced for the market they aimed at, thus becoming failures. This was evident in the next two huge leaps Apple made at Job’s direction. He was so shrewd that he made a deal with Xerox to view what they were doing behind closed doors in exchange for some big discounts on services Apple was working on for Xerox (Xerox was also an investor/owner). What they discovered was a user interface that inspired Jobs to come up with what we now know today as windows and a mouse. This was revolutionary.

Apple Lisa

Apple went ahead with a windows style computer…two of them. The first, the Lisa, was the beginning of problems with Jobs. He was a visionary, but he also was at times a complete disaster when dealing with people. He was so convinced that what he was working on was the future of computers (which in hindsight is interesting) and thus refused to accept anyone else’s opinion about anything. This resulted in two revolutionary computers being developed, and two total flops. The Lisa had a sales price of $10,000 and never sold. The Macintosh, the computer that is still revered as the most revolutionary breakthrough in computers, although a big seller, never sold what it needed to live up to its reputation as a smashing success. Essentially, the computer was viewed by the public as the best thing since sliced bread, but the cost prevented it from outselling more than IBM PC’s.

“1984” – The famous Super Bowl Ad

Job’s had been spot on about what the computer meant to Apple and the computer industry, but as a result had totally blew the cost analysis of what it would take to become profitable. At this point, people in Apple disagreed so vehemently with him that the board was split about what to do to, and he was eventually voted out. This was the same board of course that was 100% against his view on using the Superbowl commercial Jobs liked to much to present the Mac, which is still the most famous SB commercial ever. Again, Jobs was right, but his total inability to give any focus to cost analysis or people skills got him ousted.

Jobs then went on to start Next. At this point, his net worth was about $90 million (because Apple stock had dropped). He cashed out and used it to fund Next and eventually to buy Pixar, a failing computer company trying to sell computers for artistic design. Both companies were trying to create new computers, something Jobs did at Apple. For years he poured money into both companies, with neither ever developing any notable profit. Early on at Next, IBM approached him about using their operating system to run on IBM computers. They had been negotiating and were coming to an agreement, but Jobs was so difficult to deal with that it caused significant delays. Eventually, the exec at IBM that was interested in Next’s system left the company, and IBM chose to look elsewhere. They went with Microsoft, and the rest of that story is history. This was an eye opener for Jobs, a lesson he would not easily forget.

Jobs eventually was finally willing to admit temporary defeat, and that neither company was producing a computer that was going to challenge on the market. Although Next sold hundreds of millions of dollars in revenue, this was nothing compared to what Apple and leading PC retailers were doing, so while considered a success to most, this was a failure for Jobs who was known as a revolutionary. Thus, Jobs stopped all computer sales in both companies and focused on software. This changed everything.

With Next, the company was in the brink of bankruptcy when Jobs decided he would make an effort to sell the software to Apple (the software what Mac OS X today is based on). When he went to Apple, he found them surprising receptive because the software was very good, and one of Job’s biggest strengths was presentation. Jobs identified that Apple was interested and took the negotiation up a notch. He said that if Apple was interested in the software, they would best be served by gaining all the technology and staff of the whole company, essentially they should buy Next. They did, and paid nearly $1 billion which put half a billion in profit right into Job’s pocket. This was remarkable considering the company didn’t have enough revenue to support itself. In terms of sales, this was among the greatest of all time. But it worked out for Apple as well, because that software was the future of the industry.

With Pixar, Jobs was putting up to a million a month into the company to keep it afloat. He was making so many cuts that the only thing left in the company was its division on animation with 3D graphics. Jobs eventually pressed Disney to do a movie for them, at Disney’s cost. This was the beginning of what became the most profitable venture in Job’s life. After creating Toy Story, they went on to develop seven blockbusters in a row, bringing the company public, and making Job’s far richer than Apple or Next ever did. He was finally a billionaire.

Pixar Blockbuster: Toy Story

Back at Apple, they were facing serious issues ever since the failure of the Mac. Nothing had worked out, and they decided to try giving Jobs another shot. They never looked back. He cut so many Apple projects that he made the company profitable in six months. However, they were no longer a dominant in the market, taking a huge backseat to other major players. Job’s sold the Next software to Microsoft to get some profits back and Microsoft went on to use it to design Windows 95. Steve was so focused on quality though, that eventually Apple would regain its reputation. He focused on giving to schools, and got all the kids in the current generation using Macs…what would be a brilliant move for the future. Every school in California was given countless Macs and thus all the kids these days using are Macs…as are the teachers.

The hand held market was taking off in the early 2000′s and Job’s had to decide what direction to go. He made an unprecedented move by totally discontinuing all Apple’s interest in the hand help market. He said he just didn’t see a future in it and decided he wanted to go in the direction of music applications. At this point, there were many companies in music that were announcing failures. The invention of Napster had upset the music community so badly that it was near impossible to create anything profitable. Jobs had a different idea. He assessed what the music industry wanted and decided it was a good point to begin negotiations. The music industry feared losing its ability to make residuals because of theft and duplication. They were proposing some of the most ridiculous software which had chased out weaker negotiators, but not Jobs. The music industry wanted features such as monthly subscriptions but no downloads, or, downloads but only onto a single computer, or, downloads that would expire meaning music you bought disappeared after a while. Essentially, the concept of a music store with this type of guidelines would be a ridiculous venture. Steve took the initiative and went to all the top producers and many major labels and bands and presented his case for being able to offer the store with downloads that would have protection, meaning they could not be copied on to other computers or shared, but could be downloaded onto a single music player. In addition, if there was an attempt to transfer the music, it would automatically delete all music on that computer (a feature long gone). This was what Jobs had to doin order for the music industry to agree, and the only way he could offer this was to develop his own software with all these protections. Counter to what is believed to be manipulative marketing strategy to sell his I-pods, this was the reason I-tunes was designed in the limiting manner.

What would happen next changed the industry. Selling music for 99 cents each created billions for the industry, and the music industry eased up considerably as they saw internet sales as a viable way to sell their music and still make a lot of money on residuals. Essentially, Job’s had negotiated so hard with so many restrictions that initially the success of I-tunes meant that the music industry would lessen their desire to have so many restrictions, setting the table for many other music stores with FAR less restrictions.

The first iPod (2001)

At this point, he has been spot on for many projects in a row. Surprisingly, it was Pixar that made Job’s the most money, but his comeback at Apple making it one of the major players and viable competition for Microsoft’s dominance may end up being the ultimate story.

Text by Todd Arone (Thanks for the kind permission)

iCon Steve Jobs: The Greatest Second Act in the History of Business (Paperback)
by Jeffrey S. Young (Author), William L. Simon (Author)
Paperback: 368 pages
Publisher: Wiley; 1 edition (April 14, 2006)
Language: English
ISBN-10: 0471787841
ISBN-13: 978-0471787846

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The Apple Macintosh computer

Few computers – indeed, few consumer items of any kind – have generated such a wide range of opinions as the Macintosh. Criticized as an expensive gimmick and hailed as the liberator of the masses, the Mac is a potentially great system. Whether it lives up to that potential remains to be seen.

The Apple Macintosh

The Macintosh is not without its problems. Resources are tight – it needs more memory and disk space – and software has been slow in coming to market. Many have criticized its price ($2495). In fact, there are indications that Apple considered a lower price ($1995) and then rejected it. It doesn’t seem to have hurt the Mac’s market – people are still buying them faster than Apple can make them – but there’s the potential for backlash if the machine doesn’t deliver on all its promises.

Whatever its problems and limitations, the Mac represents a breakthrough in adapting computers to work with people instead of vice versa. Time and again, I’ve seen individuals with little or no computer experience sit down in front of a Mac and accomplish useful tasks with it in a matter of minutes. Invariably, they use the same words to describe it: “amazing” and “fun.” The question is whether “powerful” can be added to that list.

The Macintosh dot-matrix printer

The Display

The display is small (9-inch diagonal), but it has very high resolution (512 by 342 pixels). Every pixel is crisp. Several things make the display unusual. First, the Macintosh has no “text mode.” Instead, the display is always bit-mapped graphics. Second, the display is black-on-white rather than amber-, green- or color-on-black, giving it an ink-on-paper effect. Third, the pixels are equally dense both horizontally and vertically, eliminating the “aspect ratio” problem that plagues other graphic systems. (In other words, a box 20 pixels wide and 20 pixels high will be a square.)

A sample printout from the Macintosh using its printer and the MacWrite word-processing program. The printout was obtained using MacWrite’s high-quality output mode, as opposed to the draft and ordinary quality modes. The output here is shown at 100 percent of actual size.

The Mac’s display does create a problem. Computer graphics are memory-intensive, once you start drawing pictures, you start using up lots of memory. The video display itself consumes about 22K bytes (or about one-sixth) of the total RAM. Any off-screen manipulation (windows) or information (fonts) chews up additional memory quickly.

The Keyboard

The Macintosh keyboard.

All in all, I like the keyboard. I’m a fast touch-typist and occasionally I overrun the two-key “rollover” (the number of keys you can press down simultaneously), but I never lose characters because of buffer overflow. The keyboard’s layout is compact, so I can easily reach any key – well, almost any key. The Command key, located between the left Option key and the space bar, is in an awkward position. often hit the Shift key or Option key instead. I don’t like function or cursor keys and the mouse renders them fairly useless, so their absence doesn’t bother me at all. A separate numeric keypad is available for $99 (it plugs in between the keyboard and the Mac). This keypad has cursor keys on it, but I wonder how many applications will recognize them.

The Mouse

The rear of the Mac. Note the icon labels. The bottom row of connectors is for (from left) the mouse, second floppy disk, printer, modem and speaker.

Of course, the mouse isn’t always a perfect solution. Some commands can be tedious to perform via the mouse and pull-down menu. For example, deleting text to the right of the cursor in MacWrite can only be done with the mouse. This is a nuisance if you have only one or two characters to delete. I’d also like the mouse’s cord to be a little longer and sometimes I have trouble finding enough surface area to work the mouse, but these are minor complaints. The mouse is an excellent feature of the Macintosh.

User Interface

User interface Macintosh 1.1

In creating the Macintosh’s unique user interface, Apple has attempted to make the abstract seem concrete. Few things are as abstract as the data and programs stored and used on a computer. The Mac takes that abstraction and presents it as something familiar a desktop cluttered with pencils, papers manila folders, and even a wastebasket. Do you want to put a document in a folder? Pick it up with the mouse and put it in the folder. Do you want to throw something away? Pick it up and put it in the wastebasket. Abstractions take on real forms that we can understand and use without obscure commands or bizarre syntax.

Another important aspect of this user interface is the way in which the Macintosh makes commands available to the user. As I write this review with MacWrite, the top of my screen has an Apple symbol and six words (File, Edit Search, Format, Font, and Style) written across the top. If I point at any of the items with the mouse and press the button, a menu of options appears on the screen. When I release the button, the menu disappears. All available commands appear in the menus. I haven’t had to memorize or learn much; in fact, I opened my MacWrite manual only once or twice, briefly. The same is true at the “desktop” level. Any actions can be performed via the pull-down menus or by direct “physical” manipulation of the objects shown. The best feature of the Mac documentation is that I almost never have to refer to it.

My one complaint about the user interface is that it’s slow. Sometimes running a program or opening a file seems to take longer than it should. File copying on a one-drive system is also tedious.

A special disk-copy utility is now available that lets you copy an entire disk in just four swaps – not too shabby when you realize that this utility uses nearly 80 percent of the total RAM just to hold the data. Unfortunately, this utility won’t solve the problem of copying several files onto a disk that’s already formatted and in use. There is a simple solution: more RAM.

Memory Limitations

The top of the Mac with the cover removed. The disk drive and digital circuitry are below the cathode-ray tube; the analog circuitry is to its left.

So the question arises: why did the Macintosh design team so limit their machine? The most common reason I’ve come across is that the Macintosh team wanted to provide a standard environment for software developers and users (although the latter is less often cited). In other words, software developers know that a Mac will always have 128K bytes of RAM and users will never have to worry about software requiring more RAM than they have. The idea is sound, but it causes two problems. First, 128K bytes is not enough RAM for a standard, especially in the Macintosh environment, where graphics chew away at your free space. Second, there will be no standard for software developers when the 512K-byte upgrade becomes available. Many software developers are ignoring (or unable to use) the 128K-byte machine and will release the packages for 512K-byte machines only. Unless Apple plans a free update to all Mac owners, the standard environment will no longer be standard.

Another argument I’ve heard to support the concept of such limited memory is that the expansion slots were dropped to avoid power and cooling problems and to keep the user out of the machine. Again, this is a good idea if you provide sufficient resources in the unexpandable model. I have no complaints with Apple’s choice of two RS-422A ports, an external disk port, the mouse port, and audio output. External video would be nice, but it isn’t critical. But there’s just not enough memory.

Others argue that 128K bytes of RAM is enough because so much of the work is done for you in the 64K-byte ROM. The ROM toolbox (the optimized 68000 machine-language routines that handles all aspects of the user interface) is truly a marvelous thing, but it doesn’t change the fact that large, complex programs need lots of memory, especially if the displays are all graphical. A supporting argument points to MacPaint and MacWrite, saying, “See, these work fine!” Yes, they do, but both have easily reached limits. Furthermore, these programs were developed over a long period of time, concurrently with the Macintosh. The authors of these programs knew a lot about optimizing code for the Mac. Software developers with less time and more ambitious designs will find the lack of RAM a serious roadblock.

I also have heard that the upgrade to 512K bytes will eliminate all such problems because there will be more than enough RAM for any application. Again, I disagree. You can never have enough RAM. I think it’s no accident that the Commodore 64, with 64K bytes, has dominated the low-end market over machines that have (or had) 8K, 16K, or 24K bytes. Apple gave the IIc, which uses an 8-bit 6502 chip, 128K bytes of RAM. Why the company limited the 68000, a 32-bit chip, to the same initial amount of memory is beyond me. Even the fourfold upgrade is too limiting. Apple delights in stating how much better the 68000 is than the 8086/8088 chips used in the IBM PC and compatibles, yet most of those systems can use more RAM than the Mac. Where’s the advantage?

Obviously, I think that 128K bytes is not enough RAM to make the Macintosh a truly powerful machine. My attempt to run the Sieve of Eratosthenes benchmark on the Mac provides one indication of its RAM limitations. Once BASIC was loaded into the Mac, there was too little space left in memory for the Sieve program. To fit the program into memory, I had to declare all variables integer. This will, of course, speed the execution time considerably. Thus, the speed of the Mac Sieve is not commensurable to the other two systems. (If you are curious, the modified benchmark took 96.4 seconds on the Mac.) The upgrade to 512K bytes will help considerably, but it’s still an inexcusable limit. I am convinced that this limited RAM has held up the release of Mac software. As I write this, it has been three months since the Macintosh was released, and all the Apple dealers in town have only three software packages for the Mac besides MacPaint and MacWrite, which are still bundled. Mac should have had at least double the initial and upgrade RAM, i.e., 256K bytes and 1 megabyte, respectively. It may be that Apple will release yet another upgrade when 1-megabit chips become available in mass quantities, or they may just release a new machine.

Although the RAM is a limitation of the Macintosh, the ROM is a tremendous strength. In what is undoubtedly one of the marvels of modern programming, the Macintosh design team crammed an unbelievable amount of power into the 64K bytes of ROM in the form of tightly written, highly optimized machine code. In doing so, the team provided standard user interfaces, so that most application programs on the Mac will be used in similar forms. I tried some prerelease programs with no documentation and I was able to use them almost immediately. Try that under CP/M or MS-DOS. The ROM toolbox is a vital facet of the overall amazing nature of the Macintosh.

The Macintosh also lacks adequate mass storage. At first, it doesn’t look bad: it consists of one single-sided 3½-inch built-in disk drive (made by Sony) holding 400K bytes. Having only one disk drive can be a nuisance, but it’s acceptable if the drive holds enough data and if you can copy it easily. However, the system files on a Macintosh disk take up over 200K bytes, or half the disk. Even with trimming, you only have about 220K bytes of usable space on a bootable disk. If any other company marketed a CP/M or MS-DOS system with a single disk drive with only 220K bytes of free space, no one would buy it. It takes a lot of time and disk swapping to copy files or to back up a disk. The Mac’s only saving grace on this point is that it automatically ejects the disk and prompts you for a new one.

The 128K-byte Macintosh with one single-sided drive is not a powerful machine. You can do useful work with it, and the user interface beats all other cold. But for the same price or less you could go out and buy, for example, a Compaq with 256K bytes of RAM and two 360K-byte disk drives. And I could get lots of software for it – programs that can handle larger, more difficult tasks than the Mac currently can. The upshot is this: a $3000 Macintosh with 128K bytes of RAM, a 400K-byte disk drive, and an Imagewriter printer, is an amazing machine but not really a powerful one. A 512K-byte Mac with two 400K-byte disk drives is both amazing and powerful, but it is also expensive ($3500, including printer and not counting any cost for the RAM upgrade). In the two-and-a-half months that I’ve owned my Mac, I’ve often wondered if I should have bought one so quickly. However, the arrival of MacFORTH (see the text box “Software for the Mac” on this page) has done much to quell my reservations. I can now create my own windows, graphics, and pull-down menus, and the “fun quotient” of my Mac has made a quantum leap. Besides, I suspect that by the time this sees print, prices will have dropped and the software base will have expanded considerably.

Conclusion

You won’t find another machine that’s as easy to use or as much fun as the Macintosh. In the right configuration, it can do as much as any microcomputer on the market. However, you should go for a 512K-byte system with two disk drives and a printer. Anything less and you’ll find yourself frustrated by the machine’s limits.

I have no doubt that I would have bought a Macintosh sooner or later, and I have no intention of getting rid of the one I own. The Mac’s a gem – rough, slightly flawed, but a gem nonetheless.

by Bruce F. Webster

Bruce F. Webster (7909 Ostrow St., Suite F, San Diego, CA 92111) is vice-president of FTL Games and Oasis Systems. He received his B.S. in computer science from Brigham Young University and did graduate work at the University of Houston. His hobbies include reading and war-gaming, especially science-fiction and fantasy war games.

At a glance

Apple Macintosh Review Byte

Manufacturer
Apple Computer Inc.
20525 Mariani Ave.
Cupertino, CA 95014
(408) 996-1010

Components
Size: 13.5 by 9.7 by 10.9 inches (main unit)
2.6 by 13.2 by 5.8 inches (keyboard)
Weight: 19.5 pounds
Processor: Motorola 68000 (7,8336 MHz)
Memory: 128K bytes of RAM; 64K bytes of ROM
Display: 9-inch built-in monitor; high-resolution bit-mapped display (512 by 342 pixels); adjustable
Keyboard: 58 keys, detached, standard layout, no function keys, software-mapped
Mouse: single button, mechanical tracking, optical shaft encoding
Mass storage: built-in single-sided 3½-inch Sony drive (400K bytes)
Sound generator: four-voice sound
Interfaces: two RS-422A serial ports (230.4K bps transfer rate); external-disk interface for second (optional) disk drive; mouse interface; synchronous serial keyboard bus

Operating System
Proprietary unnamed

Optional Hardware
Imagewriter dot-matrix printer: $595
Numeric keypad: $99
Carrying case: $99
Modem (300 bps): $225
(300/1200 bps): $495
Security Accessory Kit: $49
Second floppy-disk drive: $495

Optional Software
See text box

Documentation
160-page user’s manual

Price
$2495 ($2990 with Imagewriter)

Apple Macintosh Review Byte - Benchmark 1

Apple Macintosh Review Byte - Benchmark 2

* The Sieve benchmark couldn’t be run on the Mac (see text for details).
** The new Disk Copy program was not available at press time.