Engaging Dialogue Over Presentation:

Steve Jobs begins by mentioning that instead of a flashy presentation, he has opted for a “fireside chat” approach to discuss Apple and answer questions from the audience. He recognizes that Apple is an integral part of the higher education experience and acknowledges the company’s troubled times. He urges the audience to ask questions that would “wake him up” and promises to answer in a way that keeps them engaged.

Apple and Microsoft Partnership:

Jobs emphasizes the importance of Apple’s relationship with Microsoft, describing it as a key partnership. He refutes the notion that for Apple to succeed, Microsoft has to fail. Jobs praises the Microsoft software available on the Mac, including Internet Explorer and Microsoft Office, asserting that they are superior to their Windows counterparts. He admits that while they have differences, the companies resolve them professionally.

Software Options on Mac:

In response to a question about the lack of a database software like Access in Apple’s Office suite, Jobs recommends FileMaker. He asserts that FileMaker is generally rated higher than Access and suggests that it wouldn’t be in Microsoft’s interest to compete with a strong product like FileMaker on the Mac.

Through this dialogue, Jobs aims to shed light on Apple’s position, its collaborative approach with partners like Microsoft, and its commitment to delivering quality software options.

Apple’s Past and Future in Portables:

Steve Jobs highlighted Apple’s historical role in the portable computer industry, stating that Apple invented the modern portable computer with their PowerBook series. He mentioned that after a period of stagnation, Apple regained its footing with the PowerBook G3, the fastest and cost-effective portable of its time. Apple aims to announce a new, education-focused portable in the first half of 1999.

Affordability and Student Market:

Jobs acknowledged the cost barrier that keeps many students from owning Apple’s products. He emphasized that the company is working on a more affordable, education-centric portable that also appeals to general consumers. This move aims to fill the gap in the market for less expensive but still high-quality devices.

Challenges in Portable Computing:

Jobs discussed the tension between the desire for mobility and constant internet connectivity in portable computing. He suggested that solving this problem is critical for the future and that Apple is actively working on it.

Cost Competitiveness and Quality:

Addressing an IT manager’s concern about the cost of Apple products compared to cheaper Wintel machines, Jobs stated that Apple aims to lower the iMac’s cost to under $1,000. He distinguished Apple from ‘white box’ manufacturers, emphasizing that Apple focuses on high-quality, durable products rather than creating lower-quality, cheaper alternatives.

Improving the Cost-Quality Gap:

Steve Jobs concluded by saying that Apple is working on narrowing the cost gap between high-quality Apple products and lower-quality alternatives. He cited the iMac as a breakthrough in this regard, as it offers high functionality at a significantly reduced cost compared to previous Apple products.

Apple’s Pricing Strategy:

Steve Jobs emphasizes that Apple’s goal is to reduce the price gap between its products and those offered by “white box” manufacturers. By constantly innovating and adding features, the aim is to make Apple products irresistible, even if they carry a slight price premium.

Competition and Comparison:

Jobs asserts that Apple’s products, like the iMac, are already priced competitively when compared to equivalent-function computers from brands like Compaq and HP. He mentions that Apple’s G3 chips are faster than Pentium chips in rival products.

AOL-Netscape Acquisition:

Jobs discusses the acquisition of Netscape by AOL and its ramifications. AOL aims for rapid growth and acquired Netscape primarily for its NetCenter to gain more customers. He agrees with this approach, praising both AOL and Netscape for their strategic move.

The Future of Home Internet:

Jobs acknowledges the need for faster internet access at home. He highlights two emerging technologies, cable modems and DSL, that promise to deliver faster internet speeds for consumers, mentioning that these options might become mainstream soon.

Internet Balkanization Concern:

In response to a question about the possible ‘balkanization’ of the internet—where major players create closed networks—Jobs dismisses the idea. He sees such attempts as temporary crutches that will become obsolete as internet technology improves.

Education and the Internet:

When questioned about the role of the internet in education, Jobs mentions that most educational institutions have direct access to the internet. He believes that technological challenges hindering specific kinds of online activities will be resolved soon.

This segment offers a comprehensive look at Jobs’s thoughts on Apple’s pricing, industry shifts, and the future of internet technology.

Computing as a Solution to Illiteracy:

A speaker initially expresses the belief that computing has the potential to eradicate illiteracy. The speaker emphasizes how computing allows for control over content and its quality, and how these capabilities can be distributed widely. The speaker also states that this issue has social, political, and economic implications, underscoring its importance.

Technology’s Limitations in Education:

Steve Jobs challenges the notion that technology is a one-stop solution for issues like illiteracy. He argues that although there are software solutions aimed at improving literacy, and Apple has sold many computers for this purpose, he doesn’t believe technology alone can resolve the problem. His perspective is that the issue requires a human-centric solution.

The Importance of Human Interaction:

Jobs places considerable weight on human interaction, particularly between parents and children, as well as between teachers and students. He argues that society assumed technology could substitute for these relationships, especially in the context of K-12 education, but ultimately the basics of human interaction cannot be replaced.

Challenges of a Technological Fix:

Jobs warns against over-simplifying complex problems like literacy by expecting technology to provide an easy fix. He cites his own experiences visiting various parts of the world, mentioning villages in India with higher literacy rates than some American cities, to reinforce his point that the issue is not fundamentally technological.

Technology as an Augment, Not a Substitute:

According to Jobs, once the basic issues around human interaction and educational resources are addressed, technology can then play a pivotal role in enhancing educational outcomes. However, he emphasizes that technology will not replace the essential human elements that form the foundation of effective learning and problem-solving.

Thinking Differently as a Survival Mechanism:

Steve Jobs emphasizes that Apple’s “Think Different” motto emerged from a near-death experience for the company. This led to a reevaluation of the company’s values and priorities, shedding unimportant aspects to focus on what mattered most.

The Core Mission: Making Great Computer Tools:

Jobs states that Apple’s central mission is to create great computer tools that span hardware, software, and communications. He mentions that the term “great” is complex; it doesn’t mean greatness at any cost but involves a balance.

Industry at Infancy:

Jobs underlines that the computer industry, often thought to be mature, is actually just beginning. Existing products like Windows and Macintosh are seen as merely “okay,” but Apple aims to make them much better, starting with the physical computers themselves because hardware is quicker to change than software.

Emphasis on Communication:

Acknowledging Apple’s initial shortcomings in built-in communications, Jobs is optimistic about the company’s future in this arena. Computers are seen as enablers of communication, and Apple aims to lead in this department within a year.

Design and Ease of Use:

Jobs points out that Apple believes in the importance of aesthetic and functional design, as well as ease of use. He criticizes the industry’s stalling on user-interface innovation and sees an opportunity for Apple to revitalize the ease-of-use revolution.

Affordability and Operational Excellence:

Apple is focusing on making computers affordable and efficient. Jobs boasts about Apple’s inventory management, claiming it surpassed Dell, considered the best in the industry.

Quality Over Profit:

Jobs reflects on a shift in Apple’s goals over the years. Originally, the aim was to make the best computers and to make a profit as a means to that end. However, at some point, profit became the goal, and quality suffered. Jobs states that this subtle shift had a significant impact over time, and Apple has since realigned its priorities.

Strategic Partnerships:

Apple is working collaboratively with partners like Microsoft and Adobe to make the best computational products. According to Jobs, focusing on the top line, which includes quality of people, partners, and strategy, will naturally lead to a strong bottom line.

This conversation with Steve Jobs offers a candid look into Apple’s past challenges, present focus, and future ambitions. Jobs reiterates that Apple’s goal is not just to survive but to excel by creating exceptional computer tools while keeping an eye on design, ease of use, and affordability.

Dynamic Range of Talent:

Steve Jobs addresses the notion that the range between average and best performances in most fields of life is relatively small—perhaps 30 to 50%. He contrasts this with his experience in technology, where he found that the best engineers can be 50 times better than the average.

The 10x-50x Talent Pool:

Jobs explains that while it is difficult, it’s possible to hire people who are 10 to 50 times better than average. This elite group, he mentions, tends to get along well, as they are all highly creative and self-motivated. These extraordinary people make the work environment more stimulating and even self-policing, as they do not want to let anyone in the group that could potentially lessen the experience.

Types of Creativity:

Steve Jobs emphasizes that creativity is not just limited to visual artistry. He believes that creativity spans across multiple domains including technical fields. At Pixar, they categorize them as creative artists and technical artists. Jobs prefers to seek out these highly creative individuals rather than trying to cultivate something that may not inherently be there.

Feedback on QuickTime Support:

A query about the seemingly inadequate support for QuickTime arises. Jobs seems unaware of the issue but assures that it will be addressed. He also hints at the upcoming release of QuickTime 4, which would include enhanced live internet streaming capabilities.

Through this discussion, Steve Jobs highlights the importance of hiring not just competent but extraordinarily talented individuals. He believes that nurturing such a talent pool is key to fostering creativity and advancing technology.

Concept of Convergence:

Steve Jobs was asked about the trending idea of convergence in media and technology sectors. He humorously responded that by the term’s logic, a TV would eventually make toast. He was skeptical about the generalized notion of convergence, doubting the meaningfulness of the term.

Most Successful Consumer Product:

Jobs argued that the most successful consumer product in recent years is the personal computer (PC), contrary to audience guesses of microwaves, cell phones, and VCRs. He points out that PC companies are already creating consumer products and questions the need for these to converge with other technologies like television.

TV vs. PC: Different Functions:

Jobs elaborated on the fundamental difference between televisions and PCs. According to him, people go to their television to “turn their brain off,” seeking passive entertainment. In contrast, people use PCs to “turn their brain on,” looking for interactive engagement. He sees these functions as too divergent to be combined effectively.

Technical Limitations:

Jobs mentioned the different ways people interact with TVs and PCs, indicating that one is for close-up interactions requiring keyboards and mice, while the other is for sitting back and watching. This, according to Jobs, is another reason why attempts like Web TV have been unsuccessful.

Internet-Enabled TV Guide:

While he conceded that certain features like an internet-enabled TV guide could be useful, he didn’t consider this to be the kind of ‘digital convergence’ that people were talking about.

Overall, Steve Jobs expressed skepticism about the notion of convergence, highlighting the distinct roles that different technologies play in people’s lives.

Intellectual Property Concerns:

Steve Jobs starts by emphasizing the value of intellectual property, stating that depriving creators of intellectual property protections would result in a lack of investment. He mentions that Thomas Jefferson and Edwin Land provide compelling arguments on the philosophy of patents.

Education and Intellectual Property:

Jobs says that while he believes young people should be allowed some leniency in using intellectual property for educational purposes, he draws a line when it comes to monetizing or broadly distributing such material. He stresses that this freedom shouldn’t extend to companies or other entities looking to profit from it.

Copyright Issues:

When the topic shifts to copyright, Jobs mentions that the absence of a clearinghouse mechanism to manage small transactions is a primary issue. He suggests that people would be less inclined to restrict the use of their intellectual property if there were an efficient way to collect small fees.

The Clearinghouse Solution:

According to Jobs, a clearinghouse mechanism would reduce hostility and contention in intellectual property disputes, especially in educational settings. He cites the ASCAP model for music rights as a potential template.

Value of Intellectual Effort:

Jobs concludes by emphasizing that creators who invest time and effort into generating content of value should be fairly compensated. He sees the problem as a “constipation” in the transaction process for small amounts of intellectual property rather than a fundamental issue with the concept of intellectual property itself.

Computing Client Evolution:

Steve Jobs discusses the evolution of computing clients from dumb terminals to desktops to thin clients. He notes that as technology has evolved, there has been a shift back and forth between centralized server-side computing and localized client-side computing.

User-Client Interaction:

Jobs highlights the trade-off between server-side and client-side computing: a thinner client might reduce administrative overhead but may also lack dynamic interactivity. This limits the types of applications that can run effectively on such platforms.

The ‘Thin’ Becomes ‘Thick’:

As the need for more dynamic user interfaces increases, Jobs observes that thin clients are gradually becoming thicker. For instance, newer releases of Java aimed at making thin clients more dynamic have grown substantially in size, almost negating the ‘thin’ aspect.

Applicability in Corporate Environments:

Jobs believes that the appropriateness of thin or thick clients depends on the use-case. In corporate settings, administrative applications that are straightforward and used repetitively could work well on a thin client. However, for most contemporary applications that require rich user interaction, thin clients are insufficient.

Technology and Learning:

The dialogue briefly shifts to the subject of learning. Jobs endorses the idea that computers aren’t the best way to learn to read; books serve that purpose better. However, the complementary role of the Internet is acknowledged for adults and children who wish to pursue interests further.

Future of Internet Gateways:

Although not elaborated by Jobs, the topic of how gateways and shopping mall-style interfaces will play in the future of Internet navigation is briefly mentioned. This suggests a broader question about how technology interfaces will evolve to help users find information.

Impact of the Internet:

Steve Jobs praises the transformative nature of the Internet, calling it the most important development in computing and possibly even beyond, in the last two decades of the century. He describes the Internet as “wonderful chaos,” acknowledging that despite the clutter, it’s a great resource, especially for educational activities with children.

Lack of Editorial Guidance:

Jobs observes that the Internet, in its vastness, lacks trusted advisors. He contrasts this with traditional media outlets like The New York Times or The Wall Street Journal, which not only curate but also judge what’s important for the reader. Jobs believes that the absence of these editorial points of view on the Internet is a gap that will eventually be filled, as people see value in curation and trusted sources.

Internet Portals and Uniformity:

In response to a question about the future of Internet gateways like Yahoo and AOL, Jobs expresses his concern about the boring homogeneity of portal sites. He suggests that as the Internet matures, there will be opportunities for more unique and innovative approaches, comparing the current state to the computer industry where all products began to look and function the same.

Opportunity for Differentiation:

Jobs predicts that the first wave of Internet portals will consolidate, leading to a period of uniformity much like the computer industry faced when all computers looked alike. He anticipates that this will create an opening for more interesting and unique platforms to emerge. Jobs suggests that the world doesn’t need more of the same, hinting at the untapped potential for innovation in this space.

CEO Title Not a Priority:

Steve Jobs emphasizes that he doesn’t hold an official title as the CEO of Apple and is not overly concerned with formalizing it. He shares that he has decided not to think about this issue for a year, labeling it as someone else’s problem, as he has other pressing challenges to deal with.

The Importance of Teamwork:

Jobs highlights that his career success is attributable to teamwork rather than individual brilliance. He contrasts this with striving to be a solo genius like Michelangelo. He also speaks positively about the team at Apple, mentioning that he found a considerable percentage of exceptional talent (“A to A+ players”) when he joined.

Streamlining Talent:

Jobs explains that when he arrived at Apple, he found that the company had a mix of extremely talented individuals and others who weren’t contributing as much (“barnacles”). Steps were taken to help the latter group find jobs elsewhere, allowing the former group to shine and lead the company.

Addressing Customer Concerns:

When a concern is raised about the availability of display options for the G3 Mac in the education price list, Jobs reacts candidly. He admits the mistake and vows to fix it, appreciating the feedback as essential for improvement.

Role of Passion and Talent in Success:

Jobs notes that the achievements of Apple are due almost entirely to the efforts of the team, emphasizing the importance of both talent and passion in driving the company forward. He minimizes the significance of titles and symbolism, shifting focus to the collective capability of the people working at Apple.

This segment of Steve Jobs’ longer presentation provides valuable insights into his thoughts on leadership, the importance of teamwork, and his approach to problem-solving and customer feedback.

Content Development and Future Plans:

Steve Jobs addresses questions about the development of high-end content tools, particularly those related to multimedia and streaming. While he avoids specific details, he assures the audience that exciting advancements are on the horizon, backed by some of his “best people.”

Connection Between Pixar and Software Commercialization:

Jobs discusses Pixar’s A Bug’s Life, highlighting how the film took four years to make and used powerful, proprietary software. He mentions that many people ask about commercializing Pixar’s tools for broader use. However, he notes the massive computing power required, such as five terabytes of data and 1.5-gigabyte workstations, indicating these are not easily adaptable to consumer-level technology.

Evolution of Software and Hardware:

The conversation shifts to broader issues in software and hardware evolution. Jobs concurs with Alan Kay’s assertion that the real essence of object-oriented programming hasn’t yet been fully grasped by the industry. He indicates that Apple is committed to advancing this area but cautions that software tends to evolve more slowly than hardware.

Challenges in Technological Shifts:

Jobs emphasizes that any new technology must offer a bridge to existing applications to gain acceptance. He argues that although it’s difficult to introduce something radically new, there are instances where it has succeeded, citing the Macintosh as an example.

Fair Use and Content:

Regarding questions about fair use and using screen grabs from A Bug’s Life, Jobs points out that free screen grabs are available on Disney’s website for the movie, suggesting accessibility for those looking to critique or study the film.

In summary, Steve Jobs covers a range of topics from multimedia tool development, the intricacies of content creation at Pixar, to the evolution and challenges in software technology.

Introduction and Query:

The conversation includes multiple speakers but focuses on Steve Jobs’ response to a question. The query was about a discrepancy in Mac usage among university students and its declining adoption. Despite being a “major Macintosh site,” the university saw a decrease in Mac usage among its freshman students and overall low sales of the iMac.

Apple’s Past Mistakes:

Steve Jobs admits that Apple forgot fundamental aspects for several years. The company neglected to produce good computers under $2,000 and overlooked the importance of video games in the consumer market. He mentions that none of the top 10 games were available on Mac during the last Christmas season, making the platform unattractive to younger users.

The Intestine Metaphor:

Jobs uses an analogy to explain Apple’s situation, likening it to a snake that has eaten a rat. The process of getting the “rat” through the “snake” (Apple’s challenges through the company) cannot be expedited. He admits that Apple is going through a phase where it became “unhip with kids.”

Current Efforts and Future Plans:

Despite the challenges, Jobs asserts that Apple is selling more computers in higher education than ever before. Massive efforts are underway to improve the product range. He promises that by the next Christmas, around four of the top 10 video games will be available on Mac, with superior graphics compared to PCs.

Product-Centric Rejuvenation:

According to Jobs, the solution isn’t better marketing but better products. He assures that if they make better products, Apple will regain its status as the “cool computer” among kids within a few years.

Steve Jobs’ primary message is that Apple is aware of its shortcomings and is actively working to rectify them. His emphasis is on product quality, assuring that with improved offerings, Apple will reclaim its popularity among younger users.

Masking Complexity:

Steve Jobs acknowledges the Mac OS’s strength in masking the underlying technological complexities, aligning with the consistent vision for the Macintosh. He agrees that even during challenging times, this aspect of the Mac has not faltered.

Product Development:

Regarding specific Apple software like Apple Works, Jobs reveals that Apple is making a sustained investment in its development. Future releases are expected to make users very happy. He also notes that Apple is collaborating with Microsoft to make the Office suite more affordable for users.

Clarifications:

Jobs states that he is not familiar with the future of the Emailer software. He also refutes rumors about Apple canceling HyperCard, calling the rumors “totally bullshit.”

Collaboration with Microsoft:

Jobs mentions that Apple is working closely with Microsoft. Although he acknowledges that Microsoft Office is superior to Apple Works, he emphasizes that both companies are trying to make Office more accessible.

Think Different Campaign:

Jobs concludes by discussing the rationale behind the “Think Different” campaign. The campaign was initiated to remind both the company and its customers of Apple’s core identity, which had been somewhat forgotten. He mentions that books related to the campaign’s heroes will be available for attendees.

Unaddressed Queries:

He avoids giving a direct answer regarding what to do with Newton devices, suggesting that he could provide advice later.

The discussion focuses on both product-specific queries and Apple’s overarching vision, suggesting that the company is conscious of its historical strengths while also being open to collaboration and future development.

Understanding Apple’s Identity:

Steve Jobs discusses the challenge of conveying Apple’s identity and values to the public. He says that knowing someone’s heroes can reveal a lot about their values. Hence, Apple decided to tell people who their heroes are to elucidate what the company stands for.

Think Different Campaign:

Jobs elaborates on the “Think Different” campaign, sharing that it features the heroes Apple admires. He mentions the special permissions they obtained for using images of iconic figures like Mahatma Gandhi, Jim Henson, and John Lennon. The campaign is a vehicle for Apple to share its values by spotlighting the figures it respects.

Education as Opportunity:

Steve Jobs speaks about Apple’s relationship with education, emphasizing that they don’t see it merely as a market but as an opportunity for innovation and partnership. Apple aims to re-engage with the educational sector, stating that many of the great ideas in computing have originated from higher education.

Future Collaborations:

Jobs highlights Apple’s keen interest in working closely with educational institutions for product development. He invites the institutions to collaborate on “cool projects” and to hire their best students. He suggests that Apple wants to create the best computers specifically tailored for educational needs.

Customer Relations:

Jobs assures the audience that Apple will be more receptive to feedback and more involved in solving problems. He stresses that the company’s driving force isn’t just profit; it’s the aspiration to create the best computers in the world.

The talk reinforces Apple’s commitment to defining its corporate identity, valuing innovation, and nurturing relationships with educational institutions for mutual growth.