Historical Overview:

Steve Jobs traces the history of missed opportunities in the tech industry, starting with IBM passing up the chance to buy Xerox in 1958. This set the stage for Xerox’s growth. In the late ’60s, IBM underestimated the minicomputer, allowing Digital Equipment Corporation (DEC) to grow substantially. These anecdotes highlight that underestimating emerging technology can lead to missed opportunities.

Apple’s Emergence:

Jobs notes that Apple introduced the Apple II in 1977, which IBM also dismissed as “too small for serious computing.” This miscalculation allowed Apple to grow into a $300 million corporation and become the fastest-growing company in American business history by the early 1980s.

The Battle for Market Share:

By 1983, both Apple and IBM became titans in the industry, each selling about $1 billion worth of personal computers. Both companies invested heavily in R&D and advertising. Jobs suggests that the industry is undergoing a “shakeout,” with smaller firms going bankrupt and the larger profits of Apple and IBM unable to cover the industry’s overall losses.

1984: A Critical Year:

Jobs concludes by stating it’s 1984 and IBM seems to want to dominate the computer industry. Dealers who initially welcomed IBM now fear a future controlled by them and are looking back to Apple as the only hope for an open ecosystem. IBM is positioned as the final obstacle to a diverse industry, invoking George Orwell’s dystopian vision. This highlights the high stakes involved in the competition between IBM and Apple.

Macintosh Introduction Tease:

The talk ends on a cryptic note, teasing the introduction of the Apple Macintosh on January 24th as a game-changing event, implying that the year 1984 would not confirm George Orwell’s dire predictions, at least in the context of the computing industry.

Industry Milestones:

Steve Jobs begins by noting that there have only been two milestone products in the computing industry so far: the Apple II in 1977 and the IBM PC in 1981. He asserts that the Macintosh aims to be the third such milestone product.

Technical Specifications:

Jobs dives into the technical details of the Macintosh, highlighting its use of Lisa technology for a user-friendly interface. It runs on a 68,000 microprocessor at 8 MHz, with 192K bytes of memory divided into 64K ROM and 128K RAM. The operating system, graphics foundation, and entire user interface are all contained within the 64K ROM.

Hardware Features:

Jobs discusses hardware innovations like the 3.5-inch floppy disk that stores 400k bytes, two built-in serial ports supporting speeds up to a megabit per second, and four-voice sound and speech. The Macintosh features a 9-inch black-and-white high-definition screen and is designed to be portable.

Target Markets:

The Macintosh is aimed at knowledge workers in small to medium offices and college students, with the goal of becoming a “desk appliance” much like the telephone. It’s intended to be “the computer for the rest of us,” with a significant advertising campaign planned.

Advertising Campaign:

Jobs previews an upcoming series of advertisements, emphasizing the ease-of-use of the Macintosh and its power-to-price ratio. The ads position Macintosh as a computer that requires minimal technical know-how, making it accessible to the masses.

Education Sector:

In education, Apple leads with 70% of computers used. Jobs announces the Apple University Consortium with 24 major colleges and universities, including all seven Ivy League schools, which have placed orders for Macintoshes exceeding $50 million. These institutions plan to develop courseware and indicate that Macintosh is ideal for college campuses.

Manufacturing Scale:

Lastly, Jobs reflects on the evolution from the Apple II, which was originally designed to be built in a garage, to the Macintosh, which was designed to be produced on a mass scale. Macintosh is the first personal computer designed from the outset to be built in the millions.

Through this presentation, Steve Jobs positions the Macintosh as a revolutionary product aiming to reshape the personal computing landscape with its technical innovation, focus on user experience, and broad market applicability.

Production Scale and Team Spirit:

Steve Jobs mentions that Apple is currently producing over 500 Macintosh computers per day, with plans to increase this rate. A small team of fewer than 100 people, who Jobs describes as more like artists than engineers, developed the Macintosh. This team is not focused on careers but on achieving something “insanely great” and leveraging their collective energy to impact the world.

Resource Leverage:

The Macintosh team leveraged the resources of a billion-dollar company, according to Jobs. This reflects a strong symbiosis between the small team’s agility and the substantial resources of Apple as a whole. Jobs expresses deep admiration for the team he worked with and believes the Macintosh has the potential to change lives.

Product Evolution:

Jobs acknowledges that the Macintosh was poorly kept as a secret but reveals a lesser-known fact: it is part of a larger family of 32-bit products. This family includes four new Lisa products compatible with the Macintosh, covering a range of features and prices. Jobs refers to these workstations collectively as the “Apple 32 Supermicros.”

Industry Trends and Lisa:

Jobs states that Apple’s Lisa set the “technical direction of the industry,” introducing features like mice, windows, and icons. Even if Lisa did not capture as many desks as hoped, the industry is following its direction.

Customer Loyalty and Compatibility:

Jobs emphasizes the company’s commitment to its existing Lisa 1 owners by offering them free upgrades to Lisa 2.5. He notes that all the new Lisa models and existing ones would be 100% Macintosh software compatible. This strategy ensures that early adopters are not penalized but are brought along in the company’s technological advancement.

Range and Future Plans:

Finally, Jobs hints at future developments, including something called “Applebus,” presumably another building block in the Apple 32 Supermicros family. This suggests a broader, more cohesive technology strategy that spans various products and price points.

Networking Landscape:

Steve Jobs describes the state of local area networks as unsatisfactory, mentioning the failure of Ethernet to take off and IBM’s unfulfilled promises. Rather than create another network, Apple plans to wait for industry standards to emerge.

AppleBus Introduction:

Jobs announces the integration of AppleBus into Lisa 1, Lisa 2, and Macintosh computers. The AppleBus can connect up to 32 Macintoshes, Lisas, and peripherals together at low cost. It’s intended as a stopgap until the local networking industry matures.

Printing Capabilities:

Jobs introduces the ImageWriter printer, priced at $595, which can print high-quality graphics. He also hints at a breakthrough in laser xerographic printing for under $5,000 to be launched by the end of 1984.

Connecting to IBM Mainframes:

To interact with IBM mainframes, Apple is offering the Apple line box, enabling 3278 Datacom compatibility between Macintoshes, Lisas, and IBM mainframes.

File Servers and Unix:

Jobs discusses plans for small, affordable file servers to connect via AppleBus. He also outlines Apple’s intention to launch a Unix server for multi-user environments, despite criticizing Unix for workstation use.

IBM Compatibility Strategy:

Rather than releasing an IBM PC compatible product, Apple aims to establish a second standard in offices based on radical ease of use. Jobs identifies three ‘bridges’ to IBM: better software versions for Apple workstations, local area network support, and 3278 data communications compatibility.

The talk illustrates Apple’s tactical approach to challenges like networking, printing, and IBM compatibility, revealing a blend of immediate solutions and long-term strategies.

Historical Perspective:

Steve Jobs opens by drawing parallels between the telegraph and telephone revolutions of the late 19th century. He notes that while telegraphs were groundbreaking, the idea of placing a telegraph on every desk was impractical due to the steep learning curve associated with Morse code.

Telephone as a Metaphor:

Jobs likens the advent of the telephone to the development of user-friendly computing. The telephone became ubiquitous because it was easy to use. It offered the same basic function as the telegraph but with “radical ease of use.” Moreover, it allowed for more nuanced communication, like singing or intonation.

Current Industry Junction:

Jobs claims that the computer industry is at a similar crossroads, where some advocate for placing complicated, hard-to-use “telegraphs” (complex computers) on every desk. He argues that such an approach is flawed, as people will not invest the time to navigate steep learning curves.

Apple’s Vision:

Apple’s goal is to bring computing to tens of millions of people through ease of use. Jobs posits that Apple has finally created the “first telephone” of computing. This system doesn’t just allow for traditional tasks like spreadsheets and word processing but also offers creative freedom in graphics and document design.

Broader Reach:

Apple aims to extend beyond just Fortune 500 companies, targeting a much broader audience. The company believes that the time has never been riper for a more accessible, 32-bit technology platform.

Steve Jobs closes by inviting questions about Apple’s direction, emphasizing that the company is committed to making technology easily accessible to a large audience.

Introduction and Team Members:

The segment is from a presentation where members of the Macintosh development team introduce themselves. Bill Atkinson takes center stage to demonstrate MacPaint, a graphics editor on the Macintosh.

Tool Palettes in MacPaint:

Bill Atkinson discusses three primary tool palettes: tools, patterns, and border thicknesses. Users can select various options with a point and click interface. These tools allow for simple lines, varying thicknesses, and complex shapes.

Structured and Free-form Tools:

MacPaint offers both structured and free-form tools. Structured tools let users create shapes like rectangles and ovals. The free-form tools, such as brushes, allow more freedom and can be used in conjunction with patterns.

Spray Can and Shading:

Another tool is the spray can, which allows for smooth shading. The longer you spray, the darker the area becomes. This feature enables a level of three-dimensionality in designs.

Pixel-level Control:

User-Friendliness:

The speaker highlights that the driving philosophy behind MacWrite is to make software visually oriented and easy to use. MacWrite is designed to be simple, eschewing complex commands. The “What You See Is What You Get” (WYSIWYG) approach means that the screen display closely matches the printed output.

Basic Operations:

Typing in MacWrite is straightforward: users simply point the mouse where they want to type, click, and start typing. This intuitive approach is contrasted against other software requiring command sequences.

Font Styles and Sizes:

MacWrite offers a variety of fonts and allows users to easily switch between them. Sizes can be changed as well, offering a high level of customization. All fonts are bundled with each software disc.

Document Formatting:

MacWrite employs rulers to guide the formatting of text, allowing users to set margins and tab stops. Spacing options are also available, ranging from single to double spacing. The software also features justifications including center, right, and fill.

Advanced Features:

Beyond text, MacWrite supports features like tables and numerical data. It offers two types of tabs: normal and decimal. The latter aligns text based on decimal points, useful for tabulating numerical data.

Graphics Integration:

MacWrite allows users to integrate pictures into documents, enabling a more comprehensive approach to document creation. Pictures can be resized and moved easily within the text.

Edit and Undo:

Editing text is uncomplicated, requiring users to simply select and type over the text to be replaced. An undo feature is also available for correcting mistakes.

Contribution Acknowledgment:

Although not directly related to MacWrite’s features, the speaker acknowledges the contributions of others like Bill and Owen Densmore for their roles in creating the software’s quick-draw routines and printing functions, respectively.

Undo Functionality:

The presentation elaborates on Mac’s advanced undo feature, designed to be user-friendly and forgiving. It allows users to reverse actions easily, even if accidental keystrokes are made, such as when a pet walks on the keyboard. The speaker emphasizes that the goal is to make the software as forgiving as possible to avoid user frustration.

Sound Generation Hardware:

In response to a query on sound generation, the speaker indicates that there isn’t a specific integrated circuit for sound. Instead, the sound generation hardware is seamlessly integrated with the logic and timings of the machine. This provides up to four voices of sound with 24-bit pitch control or speech.

Sound Generation Software:

The sound driver works by fetching an 8-bit value every 44 microseconds and converting it into an analog signal. The system can calculate the next set of 370 values to fill the sound buffer in various ways, offering versatility in sound generation. It supports four completely independent waveforms, each with a 24-bit pitch value, for generating musical tones.

Music and Speech:

The software is capable of more than just generating periodic-type sounds like music; it can also generate speech. This is achieved by pumping long waveforms through the speaker at any frequency rate, thereby allowing for a wide range of sound options, including speech.

Question & Answer Segment:

The segment concludes with an invitation for further questions from the audience, indicating an interactive aspect to the presentation and a willingness to engage with user inquiries.

Intermediate Printers:

Steve Jobs addresses a query about intermediate letter quality printers. He states that Apple doesn’t support them because they believe in achieving letter quality output through higher resolution dot printing, like laser printers. The Macintosh hardware is capable of supporting this, but certain third-party companies may also support daisy wheel printers.

Challenges in Printing:

Owen Densmore, who worked on the Macintosh’s printing interface, explains that the design allows for configurable printing. This allows for a more varied set of applications, even accommodating needs for daisy wheel printers, despite them not being as fun or as capable as higher-resolution printers.

Quality and Font:

Jobs speaks on the quality of a $500 image writer printer, admitting it isn’t something a legal office would use for formal documents but insisting that for most applications, it is surprisingly good. The attractiveness of the fonts compensates for the lack of higher resolution.

Software Development:

The development environment for the Macintosh is touched upon. Initially, software is developed on Lisa, with a future shift to Macintosh-based development expected. They offer support for multiple programming languages, including Pascal and 68,000 assembly languages.

Commitment to Apple II:

Jobs reiterates Apple’s commitment to the Apple II series, saying it is the most popular serious personal computer of all time and that it will continue to be supported. Apple is investing as much in the Apple II series in terms of R&D as they are in their 32-bit family.

Third-Party Software:

Microsoft and Lotus are confirmed to be working on spreadsheet software for Macintosh, showcasing Apple’s open approach to third-party software integration.

These points collectively give a snapshot of Apple’s stance on hardware capabilities, software development, and future commitments during this period.

Software Availability:

Steve Jobs discusses the forthcoming availability of various software applications for Apple computers. A word processor and a paint program are already on the market. A terminal program is expected in February, Mac Pascal in March, and other offerings such as a Basic program are slated for May or June. Microsoft’s version of Basic will be available within a month. The timeline suggests Apple’s focus on expanding its software ecosystem.

Diskette Storage:

Jobs addresses a question about the 3 and 1/2-inch diskette, stating it’s not a handicap in a 5-inch world. These smaller diskettes can hold 400k bytes of data, are more durable, and do not require special jackets. Jobs stands by the decision to use these for storage, revealing that all future 32-bit Apple products will employ this technology.

Color Monitor Vs. High-Definition Black and White:

On the subject of display technology, Jobs talks about the challenge of choosing between low-resolution color and high-definition black and white. He explains that Apple had a breakthrough in high-definition black and white technology but hasn’t yet found a way to provide high-definition color at an affordable price. Hence, Apple opted for high-definition black and white displays to offer better quality.

Black and White vs. Color:

Steve Jobs discusses the strategic decision to opt for high-definition black and white displays over color. He sees several technologies converging around black and white, such as high-definition CRT, flat-panel technology for future Mac-in-a-book, and monochromatic laser printing technology. These will be the focus for the next 24 months, although color is built into Quick Draw for future implementation.

Animation and Software:

Jobs and another speaker mention the capabilities of the Mac in handling animation. The Mac is expected to run powerful animation editors, and some upcoming games are noted for their potential to “blow your mind.” This suggests Apple’s interest in not just productivity software but also in the creative and entertainment sectors.

Mouse vs. Keyboard Commands:

In a discussion about user experience, Jobs argues that the mouse remains beneficial even for expert users. Although initially, the mouse might seem slower as it requires a shift from the keyboard, it eventually proves faster and more versatile. He uses the example of drawing a fish to illustrate tasks that are impossible with cursor keys.

Education Pricing:

Jobs addresses the availability of discounted Macintosh computers for students. The discounts are initially available only for schools in a specific consortium, as offering it broadly would financially impact Apple. However, Apple is in the process of broadening this program to include more schools, aiming to make technology accessible to students who can’t afford the full price.

Future of Apple II:

Although not elaborated upon, the question about the future of the Apple II is raised, indicating that there are ongoing conversations and interest in the broader Apple product lineup, beyond just the Macintosh.

Upcoming Products:

Steve Wozniak indicates that Apple’s personal computer systems division is working on revolutionary products, not limited to computers. However, he refrains from disclosing specifics.

Apple II to IIE Upgrades:

When asked about upgrading Apple IIs to IIEs, Jobs states that the feature-rich IIE hasn’t been fully utilized by software developers yet. He suggests that there might be a need for an upgrade card once software taking advantage of IIE features becomes available.

Display and Smalltalk on Macintosh:

Responding to questions about the Macintosh, the team reveals that a special internal board is required for video output. On the software side, they do not have a version of Smalltalk but do recommend an upcoming Pascal version with similar features.

Apple 3 Longevity:

The presentation highlights that the Apple 3 is a niche but well-liked product, with the majority of units sold to existing owners. The Apple 3 software environment is expected to converge more closely with the Apple 2’s, implying a long product lifespan.

Macintosh’s Limited Multitasking:

The Macintosh is described as having a “sort of limited form of multitasking,” mostly due to memory constraints. It can run small desk accessory programs concurrently but cannot handle larger programs simultaneously.

Future Hardware Upgrades:

The Macintosh board is designed for future expansion, potentially doubling its memory when 256K RAM chips become widely available. However, adding a second built-in disk drive is not planned to maintain the system’s lightweight and affordability.

Database Management System:

The presentation concludes without directly addressing plans for a database management system, although other software capabilities like graphics, word processing, and spreadsheets are acknowledged.

This summary captures the anticipation surrounding Apple’s upcoming products, the nuances of hardware and software upgrades, and the company’s strategic decisions for sustaining product lines.

Database Management System on Macintosh:

Steve Jobs notes that many have plans for developing a database management system for the Macintosh. He predicts that there will be around half a dozen such systems available by fall.

Regional Differences in Software Marketing:

Another speaker observes that the marketing of software varies by region, pointing out that some software available on the West Coast might not be found in other parts of the country.

User Excitement Across Regions:

When asked about where the most excited Apple users are located, the speaker responds that enthusiasm for Apple is ubiquitous, present even in rural areas like Kansas.

Apple’s Grassroots and Compatibility:

The speaker discusses how Apple originated from a club-like gathering of like-minded individuals. When questioned about possible hardware updates, he emphasizes Apple’s cautious approach to ensure backward compatibility.

Font Capabilities:

A discussion ensues about Apple’s font editor, which allows users to design their own fonts. These fonts are kept in resource files and are accessible to all programs. The speaker confirms that future word processors will support columnar wraparound, although the current one does not.

Resource Editor and Application Customization:

A speaker outlines the power of Apple’s resource editor, which allows for menu customization and even translation to different languages. It’s available to developers but requires a knowledgeable user to operate without errors.

Icon Management:

The conversation turns to how icons are stored in applications. When the Finder recognizes a new application, it pulls the icons from the application into an internal file. This allows the icons to be displayed even when the disk is not inserted.

Multi-Disk Software:

A speaker explains that software designed for two drives can also run on a single drive if the user is willing to swap disks. The system asks the user to insert the necessary disk when required, allowing for a degree of flexibility.

The transcript gives an insightful look into the early considerations and philosophies that shaped Apple’s products, from hardware compatibility to software capabilities.

Emphasis on Ease of Development:

The speakers discuss the idea that game development can be more straightforward due to the capabilities of the system in question. The speaker mentions that instead of struggling to “sweat your brain out” trying to extract every last bit of performance, the system allows for more effortless game development. This is largely attributed to pre-built routines by Bill Atkinson, which ease the process.

Technical Capabilities:

The system’s technical prowess is highlighted, especially in its graphics and animation capabilities. The speaker points out that they’ve done all the “hard graphics work,” making it easier for developers to focus on game design and mechanics. The system is described as capable of handling high frame rates and large numbers of polygons, making it more powerful than traditional game systems.

The Role of Artistry:

While the system simplifies the technical aspects of game development, The speaker emphasizes that artistic skill remains crucial. To create visually appealing games, developers still need to have or find someone with artistic talents. They suggest that someone may eventually market a picture library to aid in this.

Flexibility and Limitations:

The system is described as more flexible than conventional gaming systems that use sprites for graphics. It is software-based and not confined to the limitations inherent in hardware-based sprite systems. The speaker states, “Just your imagination is the only thing that really limits you,” underscoring the system’s flexibility.

Real-Time Screen Switching:

The speaker describes a feature that allows developers to work on an alternate screen while one is being displayed, enabling a seamless transition and a smoother visual experience for the user. The switch happens “faster than the eye can see,” contributing to the system’s robust capabilities.

Despite the text mentioning Steve Jobs as the primary speaker, he is not directly quoted in the segment. The focus remains on the system’s capabilities and how it could revolutionize game development.

Frame-Rate Management:

The speakers discuss the system’s ability to manage display frames efficiently. The system uses two screens to maintain smooth animations: one for display and the other for editing. The quick ‘flip’ between the screens eliminates glitches, ensuring a seamless visual experience.

System Interrupts:

The speaker addresses the system’s interrupt-driven capabilities, cautioning that knowledge and attention to detail are crucial. Errors in this area could lead to crashes. The speaker humorously notes that disabling interrupts will make the mouse stop working, which serves as a subtle lesson on the system’s inner workings.

Bitmap and Processor Speed:

The speaker is enthusiastic about the system’s use of bitmap graphics, as it makes the technical limitations almost non-existent. They are excited about the fast processor, which allows the system to surpass traditional hardware restrictions.

Video Digitization and Clip Art:

The speaker mentions an interesting feature: video digitizers that can capture any image and allow it to be edited or integrated into games. The conversation moves to the potential of offering disks full of clip art that can be used freely, sparking a new wave of digital art sharing and commerce.

Casual Banter:

The conversation ends on a light note, shifting from technology to fashion. The speakers discuss their preference for Vans shoes, marking a casual departure from the tech-heavy conversation. The speaker also mentions the current fashion trend of wearing white high-top sneakers that are laced but not tied.

Despite the indication that Steve Jobs is the primary speaker, he doesn’t contribute to this segment. The focus remains on technical features and casual conversations among the participants.