Welcome to Macintosh Page #5

to distinguished themselves...

...as the company that isn't Microsoft.

And I think there's a lot of Mac users

who choose to use a Mac...

...for that reason,

that isn't a Windows machine.

I've used Windows to the extent

that I've had to use Windows.

And I just cannot understand

some stuff there.

I've hated Windows

for a number of years...

...and I could never figure out why.

And about three years ago, it finally

hit me that the reason I hated it...

...was because

it always makes me feel stupid.

I go to do something...

...it gives me a warning

that I don't understand, it's cryptic.

But, you know, Microsoft was one of

the first big developers for Apple.

I mean, they made a fortune

developing software for Apple.

And also for the Mac. They're one

of the first big Mac developers as well.

As far as the PC users...

...and Mac users being compared?

I really feel that there is a lot of

give-and-take in the PC users' world...

...but that the PC users really get off

on how complicated it is.

It makes them feel superior...

...when they sit down with somebody

and totally confuse them.

And, you know,

not every PC user is like that...

...but the ones that I have talked to...

...basically just love to rattle on

technical information...

...at a mile a minute

because it makes them look good.

Everything that, you know,

went into Office, I think were initially...

...purchased from other companies

and developed for the Mac.

And then, of course, you know,

rolled into Windows.

And then they... You know, I mean...

...Bill Gates saw that the Mac

operating system was the way to go.

And Windows, you know, 3.1

borrowed heavily from that...

...and then Windows 95, 10 years later.

The rest is history.

To start us off in the right direction

is an individual...

...who really needs little introduction.

After all... After all...

Steve Jobs has been around

since the very first Macintosh.

So please join with me now

and welcome, from Apple Computer...

...Steve Jobs.

Thank you.

The last several weeks, we have

looked at some of the relationships.

And I'd like to announce

one of our first partnerships today...

...a very, very meaningful one.

And that is one with Microsoft.

One of the things that I hear

over and over again...

...always from Windows people,

of course...

...is that Microsoft saved Apple

from certain doom...

...by giving them $150 million.

Well, if you look at the whole story,

Steve negotiated agreement...

...where Microsoft agreed to produce

Office for another five years.

Apple wasrt gonna compete

with them.

At the same time,

Microsoft made an investment...

...of $150 million in Apple stock

that particular day.

That served two purposes:

One, it made it look like Microsoft

was confident in Apple's survival...

...because they wouldn't have

bought stock if they didn't.

And secondly,

it kind of cemented the agreement that...

...we're not only sure you're

gonna be successful with this product...

...we're gonna back it up

by buying some stock so we're part of it.

We're not only a competitor

in producing software...

...we're a partner and owning stock.

What most people don't tell you...

...is that they didn't need the money

for Microsoft to survive...

...this was all a marketing game.

And a lot of Windows people

don't understand that.

Microsoft didn't save Apple.

And if we wanna move forward...

...and see Apple healthy

and prospering again...

...we have to let go of a few things here.

We have to let go of this notion

that for Apple to win...

...Microsoft has to lose, okay?

We have to embrace the notion

that for Apple to win...

...Apple has to do a really good job.

What makes companies

very successful...

...and what makes companies fail

is the same thing.

It's sort of the passionate adherence

to a strategy.

People who are passionately involved

in a concept or philosophy...

...a design, a product, all right,

will put everything of themselves into it.

And you don't want somebody designing

a product who isn't passionate about it.

Innovation is...

It's really the only interesting thing.

If you're not innovating, what's the point?

When Apple creates through engineering

something very cool...

...that people want to buy, it does well.

And when it doesn't, it doesn't.

So, you know, guess what.

Newton didn't succeed.

Apple III didn't succeed.

Lisa didn't succeed.

If you stand back and you look at

the Macintosh, the Macintosh line...

...everything they implement

into their computers has personality.

It's like the difference

between owning a Ferrari...

...versus owning, you know,

just a Ford Taurus.

You know, it's sleeker style, design,

it's fun to drive...

...you know, versus one

that you just use to get to work.

So Macintosh was the mega hit,

but what was the first company...

...that really made CD-ROM drives

on every computer?

Guess what. It was Apple.

Guess who democratized 802.11.

AirPort and Apple, right?

And so how about FireWire?

Who made that a standard?

How about USB?

Some companies can think

you can innovate too fast...

...because you don't sort of

milk the cash cow...

...to the maximum before moving on.

That's not the way Apple usually thinks.

So after a while, it's not just the big hit,

it's also...

You know, you can say

that these revolutions...

...were caused by little uprisings

that Apple, you know, made successful.

The mouse.

Now, someone could say,

"Well, PARC had the mouse"...

...and all that, but, you know, PARC

didn't make it a commercial success.

Apple sort of...

And it basically comes from

both Steve Jobs and Steve Wozniak.

They don't really care about that.

Sure, they wanna make money,

but that's not what it's about.

It's artistic values.

Apple wants to do

the greatest thing possible.

They don't compare themselves

to someone else. Who cares about...?

Other people can do great things too.

That's great.

It's more, like, you know,

being transcendently brilliant.

No matter how well you've done it,

how can you make it better?

I would like to hear

what Jonathan lve would say.

His design is so inspired.

It's like it's divine providence

or something.

He has a team of, like,

phenomenally talented people...

...and they keep working on a problem...

...until they come up

with something fresh and new.

You know, like the scroll wheel

on the iPod or that Luxo-looking iMac.

If you look at what Apple does,

after it does it...

...one thing you always have to say is:

"How come nobody else

did this before?" Right?

There's nothing, like, mythical

about the iPod and the wheel, right?

Anybody could have done that.

You know, the colored iMacs

changed design in everything.

You know

even on the lids of PowerBooks...

...you know,

they open up very smoothly...

...because they have

this weird counterbalancing system...

...and no one is ever gonna see this.

It's not something that consumers

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