No technological advance has more quickly captured the imagination and opened the pocket books of Americans than personal computers. Like the space program that initially nurtured computer research, these new information appliances have come to symbolize Americaâs return to technological superiorityâa place seemingly lost in the past decade to imported televisions, cameras, digital watches and Walkmen.
Mirroring this resurgence, a new lifestyle has grown up around the personal computer industry, nowhere more visible than in Silicon Valley, 45 miles south of San Francisco, where prune orchards have been transformed into a fertile crescent of research and development. The Valley is a strange blend of workaholism and conspicuous consumption, hot tubs and traffic jams. Technological vision and rivalry are so intertwined that local residents call the place Silicon Gulch.
No individual has become more a symbol of this land of opportunity than Steven Paul Jobs, the 29-year-old cofounder and chairman of the board of Apple Computer. Jobs, adopted at birth by a middle-class couple in Mountain View, California, was raised on Little Richard, Bob Dylan and technology. In many ways he was a typicalâalbeit youngâproduct of the counterculture of the '60s. He experimented with drugs, dropped out of Reed College his freshman year, and only settled down to work after answering a help wanted ad for Atari that promised, âHave fun and make money.â Still in search of higher truths, Jobs quit Atari after a brief stay, journeyed to India and shaved his head. In 1975 he returned to the States and set about building home computers with the brilliant Stephen Wozniak, a friend who had been working as an engineer at Hewlett-Packard.

In early 1977, they founded Apple Computer which quickly became one of the dominant forces in the personal-computer field. In 1981 IBM entered the market and the struggle between what Jobs calls âthe innovators and the blue suitsâ was joined. So great was the competition that Appleâs stock plummeted almost 50 points last year, as IBM seemed to be defining the standard in the personal-computer marketplace.
In January, however, with the introduction of Macintosh, Apple began an aggressive counterattack, heralded by its â1984â TV commercial that portrayed a woman hurling a hammer through a screen image modeled after Orwellâs Big Brother. Jobs claims Apple will sell a half-billion dollars worthâ250,000âof Macs this year, a number considerably less than demand, which has exceeded even Appleâs original hopes. Equally inspiring for Jobs is the fate of Apple II, the companyâs tried-and-true product, which has walloped IBMâs PC jr. Two million Apple IIs have been sold in the companyâs seven-year history, and last April, at a party with the theme "Apple II forever,â the company introduced its new IIcâa portable version of the Apple II that can be operated without a battery pack. Not to be outdone, IBM recently introduced a portable version of its own PC. Once again, the chips will fly.
Is the computer business as ruthless as it appears to be?
No, not at this point. To me, the situation is like a river. When the river is moving swiftly there isnât a lot of moss and algae in it, but when it slows down and becomes stagnant, a lot of stuff grows in the river and it gets very murky. I view the cutthroat political nature of things very much like that. And right now our business is moving very swiftly. The waterâs pretty clear and thereâs not a lot of ruthlessness. Thereâs a lot of room for innovation.
Do you consider yourself the new astronaut, the new American hero?
No, no, no. Iâm just a guy who probably should have been a semi-talented poet on the Left Bank. I sort of got sidetracked here. The space guys, the astronauts, were techies to start with. John Glenn didnât read Rimbaud, you know; but you talk to some of the people in the computer business now and theyâre very well grounded in the philosophical traditions of the last 100 years and the sociological traditions of the '60s.
Thereâs something going on here, thereâs something that is changing the world and this is the epicenter. Itâs probably closest to Washington during the Kennedy era or something like that. Now I start sounding like Gary Hart.
You donât like him?
Hart? I donât dislike him. I met him about a year ago and my impression was that there was not a great deal of substance there.
So who do you want to seeâŚ
Iâve never voted for a presidential candidate. Iâve never voted in my whole life.
Do you think itâs unfair that people out here in Silicon Valley are generally labeled nerds?
Of course. I think itâs an antiquated notion. There were people in the '60s who were like that and even in the early '70s, but now theyâre not that way. Now theyâre the people who would have been poets had they lived in the '60s. And theyâre looking at computers as their medium of expression rather than language, rather than being a mathematician and using mathematics, rather than, you know, writing social theories.
What do people do for fun out here? Iâve noticed that an awful lot of those who work for you either play music or are extremely interested in it.
Oh yes. And most of them are also left-handed, whatever that means. Almost all of the really great technical people in computers that Iâve known are left-handed. Isnât that odd?
Are you left-handed?
Iâm ambidextrous.
But why music?
When you want to understand something thatâs never been understood before, what you have to do is construct conceptual scaffolding. And if youâre trying to design a computer you will literally immerse yourself in the thousands of details necessary; all of a sudden, as the scaffolding gets set up high enough, it will all become clearer and clearer and thatâs when the breakthrough starts. It is a rhythmic experience, or it is an experience where everythingâs related to everything else and itâs all intertwined. And itâs such a fragile, delicate experience that itâs very much like music. But you could never describe it to anyone.
In 1977 you said that computers were answers in search of questions. Has that changed?
Well, the types of computers we have today are tools. Theyâre responders: you ask a computer to do something and it will do it. The next stage is going to be computers as âagents.â In other words, it will be as if thereâs a little person inside that box who starts to anticipate what you want. Rather than help you, it will start to guide you through large amounts of information. It will almost be like you have a little friend inside that box. I think the computer as an agent will start to mature in the late '80s, early '90s.
You once talked about wanting to have a computer that could sit in a childâs playroom and be the childâs playmate.
Forget about the childâIâd like one myself! Iâve always thought it would be really wonderful to have a little box, a sort of slate that you could carry along with you. Youâd get one of these things maybe when you were 10 years old, and somehow youâd turn it on and it would say, you know, âWhere am I?â And youâd somehow tell it you were in California and it would say, âOh, who are you?â
âMy nameâs Steven.ââReally? How old are you?ââIâm 10.ââWhat are we doing here?ââWell, weâre in recess and we have to go back to class.ââWhatâs class?â
Youâd start to teach it about yourself. And it would just keep storing all this information about you and maybe it would recognize that every Friday afternoon you like to do something special, and maybe youâd like it to help you with this routine. So about the third time it asks you: âWell, would you like me to do this for you every Friday?â You say, âYes,â and before long it becomes an incredibly powerful helper. It goes with you everywhere you go. It knows most of the raw information in your life that youâd like to keep, but then starts to make connections between things, and one day when youâre 18 and youâve just split up with your girlfriend it says: âYou know, Steve, the same thing has happened three times in a row.â
You grew up in an odd place here, surrounded by all this technology.Yes. The guy next door to my parentsâ place was doing some of the foundation research on solar cells. Actually, I had a pretty normal childhood. Itâs nice growing up here. I mean the air was very clean; it was a little like being out in the country.As a kid, were you already conscious of some sort of social structure forming, that there were people who were in the silicon business and there were people who werenât?Hmmm, no. See, there wasnât such a thing as the silicon business back in the early '60s when I was between the ages of 5 and 10. There was electronics. Silicon, as a distinct item from the whole of electronics, didnât really occur until the '70s.How did it affect the culture here?Well, Silicon Valley has evolved into the heart of the electronics industryâwhich is the second largest industry in the world and will soon pass agriculture and become the largest. So Silicon Valley is destined to become a technological metropolis and there are pluses and minuses to that. Itâs very sad in a way because this valley was probably the closest thing to the Garden of Eden at one point in time. No more.Why?Because now there are too many square miles of concrete and asphalt.Does that have something to do with the ruthlessness of the business?No.Then was it because a lot of people realized they could make a fast buck here?First of all, things happen in increments, right? They donât happen all at once. But people didnât start these companies just to make a buck. I mean they started businesses with very romantic notions. It wasnât just money. Nobody would say to himself, âJesus, I think next Monday my friend and I are going to start a company so we can make lots of money.âNo, but you think youâd be the same person today if your aggregate wealth consisted of one Volkswagen van?Obviously not. But thatâs sort of a meaningless question.No, what Iâm suggesting is that some people started companies because they were fascinated by the technology and a lot of other people started companies because they thought they could make a buck.Not the really great ones.Then what, if not money, defines the social pecking order out there?A combination of having pioneered something significant, and having built a thriving organization. The right company, thatâs very important. In other words, even though some people have come out with neat products, if their company is perceived as a sweatshop or a revolving door, itâs not considered much of a success. Remember, the role models were Hewlett and Packard. Their main achievement was that they built a company. Nobody remembers their first frequency-counter, their first audio oscillator, their first this or that. And they sell so many products now that no one person really symbolizes the company.But what does symbolize Hewlett-Packard is a revolutionary attitude toward people, a belief that people should be treated fairly, that the differentiation between labor and management should go away. And they built a company and they lived that philosophy for 35 or 40 years and thatâs why theyâre heroes. Hewlett and Packard started what became the Valley.What skill do you think you have that allowed you to succeed?Well, you know, there were probably a lot of guys out there sitting in garages who thought, âHmmm, letâs make a computer.â Why did we succeed? I think we were very good at what we did and we surrounded ourselves by very fine people. See, one of the things you have to remember is that we started off with a very idealistic perspectiveâthat doing something with the highest quality, doing it right the first time, would really be cheaper than having to go back and do it again. Ideas like that.Can you be more specific?No, because thatâs as specific as you get. Just general feelings about things, without any experience to back them up.Theyâre not based on, say, âGee, look what happened to Hewlett-Packardâ?No, no, no. We just sort of had these feelings. We started to run the company our way and it turned out things we were doing worked. We never lost sight of how our idealism could translate into tangible results that were also acceptable in a more traditional sense.You seem to have postured Appleâs image as the last crusade against the IBM-ization of the world.You know, thatâs not quite right. If you froze technology today, it would be like freezing the automobile in 1915: you wouldnât have automatic transmissions, you wouldnât have electric starters. You donât want to see IBM freeze the standards.But the flip side of that is that this industry has matured more rapidly than any other industry in the history of business and there are suddenly things that billion-dollar class companies can do that $100 million or $10 million class companies canât do. For example, Apple will spend the better part of $100 million this year on research and development, and will spend the better part of $100 million on advertising. Now, IBM will spend that on personal computers alone. And if IBM and Apple invest that money wisely, it will be very difficult for the $10 million or even the $100 million class companies to keep up.Is there any company besides Apple and IBM that could keep up?AT&T obviously could choose to invest $200 million. General Electric could obviously choose to invest $200 million. The question is will they? Will they take the risk? Do they see promise? Do they have the passion to innovate?Out here there are traffic jams at 7:30 in the morning, even though people in the Valley have this reputation of being laid backâŚOh right, people work very hard here. And I think you have to differentiate between a true workaholic, and somebody who loves his work and wants to work because he gets true satisfaction and enjoyment out of it. The perfect example is the software people who donât get in until noon but they work until two in the morning. And they like it.Donât you ever wake up in the morning and say to yourself, âThereâs no reason for me to work another day for the rest of my life. Iâve made enough money so that I can just have a good time, do anything I wantâŚâWell yeah, I suppose some people say that. But the question ignores all the reasons why people do things here. The money is literally a 25 percent factor, at most. The journey is the reward. Itâs not just the accomplishment of something incredible. Itâs the actual doing of something incredible, day in and day out, getting the chance to participate in something really incredible. I mean thatâs the feeling weâve had. I think everyone on the Mac team would have paid to come to work every day.I donât say this snidely, but thatâs a very easy thing for somebody to say who owns 6.9 million shares of Apple stock.Then go ask the rest of them. Do you know how many places Burrell [Smith, Macâs hardware designer] and Andy [Hertzfeld, the operating-system designer] could go to tomorrow if they wanted to? Sure, they have a lot of money, and they could go work anywhere else they wanted to.But here you have a guy like Andy who spends I donât know how many thousands of dollars renovating his kitchen, and he never cooks a meal in it!So what? Whatâs the point?Well, Iâm talking about quality of life. One of the things that strikes me about Silicon Valley is that nobody seems to do anything but work.A lot of people will probably take this analogy wrong, but there are a good number of people who would have loved to have had even the most menial job on the Manhattan Project in Los Alamos and watch those brilliant people work together for that period of time.There are also a lot of people who want to join the Marines.No, no. There are moments in history which are significant and to be a part of those moments is an incredible experience. In other words, there are more important things than cooking in your own kitchen.Iâm simply suggesting thereâs a very interesting relationship in this Valley between work, money and personal life.Well, I donât know what this Valley is. I work at Apple. Iâm there so many hours a day and I donât visit other places; Iâm not an expert on Silicon Valley. What I do see is a small group of people who are artists and care more about their art than they do about almost anything else. Itâs more important than finding a girlfriend, itâs more important⌠than cooking a meal, itâs more important than joining the Marines, itâs more important than whatever. Look at the way artists work. Theyâre not typically the most âbalancedâ people in the world. Now, yes, we have a few workaholics here who are trying to escape other things, of course. But the majority of people out here have made very conscious decisions; they really have.How quickly did you become a millionaire?When I was 23, I had a net worth of over a million dollars. At 24, it was over $10 million, and at 25, it was over $100 million.How did that affect the quality of your dates?My dates? Nothing really changed, because I donât think about it that much. The people who think about those things a lot I never meet.Sometimes itâs got to be overwhelming to you that about 10 years ago you were at some festival on the Ganges river and now youâre running a billion-dollar corporation.Yeah, well, OK. What do you want me to say? Give me the possible responses, Iâll pick one.Well, I think there are an infinite number of responses. Iâm simply suggesting that it somehow relates to Andy Hertzfeld never cooking a meal in his own kitchen.I donât know what it relates to. Andy and I are roughly the same age, right? Thereâs a whole set of things that neither of us has ever done before, you know: neither of us has ever been married before; neither of us has come home at 5 oâclock and hung out by the pool. I mean, thereâs a whole set of things. And weâve chosen, at least in part, to spend a large number of hours and a large amount of our energy in a different way, making a computer.Now other people make things too. Other people put their energy into having a family, which I think is wonderfulâIâd love to do it myselfâor they put their energy into making a career or making this or making that. Weâve put our energy into making Macintosh over the last two years, which we thought would make a difference to a group of people that we wouldnât ever really know, but weâll walk into classrooms and see 50 Macintoshes and weâll feel good.When Apple was starting up, were people always conscious of stock options?Oh sure. Well, not as much as they are now. Apple was the first company that gave stock options to almost everybody, every engineer, every middle-level marketing guy and so on.It strikes me that very few people cash in their chips here.Some do and some donât. One of the trends Iâve seen is that once things seem a little stable, once the company has made it over some critical hurdles, some of the people will sell enough of their stock to buy a house or do something which may not mean that much to them, but will mean something, letâs say, to their spouse or to their family, which hasnât seen enough of them for the last two years. Theyâll want to do something to sort of say, âHey, you know, what Iâve been working on really has been valuable, it really has been worth it and besides my loving it, it has produced something for the family or for both of us." A lot of analysts and venture capitalists Iâve talked to think youâre absolutely crazy to still have as much Apple stock as you have. Is it a matter of pride?Well, itâs a lot of things. Certainly, a year ago the stuff was worth, you know, more than twice as much as itâs worth now. Last year, it decreased by about $200 million. Iâm the only person I know thatâs lost a quarter of a billion dollars in one year.How does that make you feel?Itâs very character building!