Becoming Steve Jobs Read online

  Copyright © 2015 by Brent Schlender and Rick Tetzeli

  All rights reserved.

  Published in the United States by Crown Business, an imprint of the Crown Publishing Group, a division of Penguin Random House LLC, New York.

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  Library of Congress Cataloging-in-Publication Data

  Schlender, Brent.

  Becoming Steve Jobs: the evolution of a reckless upstart into a visionary leader / Brent Schlender and Rick Tetzeli. —First edition.

  pages cm

  1. Jobs, Steve, 1955–2011. 2. Computer engineers—United States—Biography. 3. Businesspeople—United States—Biography. 4. Apple Computer, Inc.—Management. 5. Leadership. I. Tetzeli, Rick. II. Title.

  QA76.2.J63S35 2015

  338.7′6100416092—dc23

  [B] 2014031660

  ISBN 978-0-385-34740-2

  Ebook ISBN 978-0-385-34741-9

  Jacket design by Michael Nagin

  Jacket photograph: Doug Menuez/Contour by Getty from Fearless Genius: The Digital Revolution in Silicon Valley 1985–2000

  v3.1_r4

  For Lorna, my lifesaver, many times over

  —BS

  For Mari, forever

  “It is not often that someone comes along who is a true friend and a good writer.”

  —RT

  Contents

  Cover

  Title Page

  Copyright

  Dedication

  AUTHORS’ NOTE

  PROLOGUE

  Chapter 1

  Steve Jobs in the Garden of Allah

  Chapter 2

  “I Didn’t Want to Be a Businessman”

  Chapter 3

  Breakthrough and Breakdown

  Chapter 4

  What’s Next?

  Chapter 5

  A Side Bet

  Photo Insert 1

  Chapter 6

  Bill Gates Pays a Visit

  Chapter 7

  Luck

  Chapter 8

  Bozos, Bastards, and Keepers

  Chapter 9

  Maybe They Had to Be Crazy

  Chapter 10

  Following Your Nose

  Photo Insert 2

  Chapter 11

  Do Your Level Best

  Chapter 12

  Two Decisions

  Chapter 13

  Stanford

  Chapter 14

  A Safe Haven for Pixar

  Chapter 15

  The Whole Widget

  Chapter 16

  Blind Spots, Grudges, and Sharp Elbows

  Chapter 17

  “Just Tell Them I’m Being an Asshole”

  SOURCE NOTES

  BIBLIOGRAPHY

  ACKNOWLEDGMENTS

  Authors’ Note

  The reporting and writing of this book is the work of two authors. The two of us have worked together for years, going back to our time together at Fortune magazine. For Becoming Steve Jobs, we spent three years researching, interviewing, reporting, writing, and editing together. That said, in the narrative you’re about to read, we decided, for convenience’s sake, to use the first-person singular throughout to refer to Brent. Brent is the one who had a relationship of almost a quarter century with Steve Jobs, so using the word I made it much easier to tell our story.

  Prologue

  “You’re new here, aren’t you?” Those were his first words to me. (His last, twenty-five years later, would be “I’m sorry.”) Already he had turned the tables on me. After all, I was the reporter. The one who was supposed to be asking the questions.

  I had been warned about the unique challenges of interviewing Steve Jobs. The night before, over beers, my new colleagues at the San Francisco bureau of the Wall Street Journal had told me to bring a flak jacket to this first meeting. One of them said, only half jokingly, that interviewing Jobs was often more combat than questioning. It was April 1986, and Jobs was already a Journal legend. Bureau lore had it that he had dressed down another Journal reporter by posing this straightforward question: “Do you understand anything at all, anything at all about what we’re discussing?”

  I’d had plenty of experience with real flak jackets during my years reporting in Central America in the early 1980s. I’d spent much of that time in El Salvador and Nicaragua, where I’d interviewed everyone from truck drivers motoring through war zones, to American military advisers in the jungle, to Contra commandantes in their hideouts, to presidents in their palaces. On other assignments I’d met with obstreperous billionaires like T. Boone Pickens and H. Ross Perot and Li Ka-shing, with Nobel Prize winners like Jack Kilby, with rock stars and movie idols, renegade polygamists, and even the grandmothers of would-be assassins. I wasn’t easily intimidated. Yet for the full twenty-minute drive from my home in San Mateo, California, to the headquarters of NeXT Computer in Palo Alto, I brooded and fretted about how best to interview Jobs.

  Part of my unease came from the fact that, for the first time in my experience as a journalist, I would be calling on a prominent business leader who was younger than I. I was thirty-two years old; Jobs was thirty-one and already a global celebrity, hailed, along with Bill Gates, for having invented the personal computer industry. Long before Internet mania started churning out wunderkinds of the week, Jobs was technology’s original superstar, the real deal with an astounding, substantial record. The circuit boards he and Steve Wozniak had assembled in a garage in Los Altos had spawned a billion-dollar company. The personal computer seemed to have unlimited potential, and as the cofounder of Apple Computer, Steve Jobs had been the face of all those possibilities. But then, in September of 1985, he had resigned under pressure, shortly after telling the company’s board of directors that he was courting some key Apple employees to join him in a new venture to build computer “workstations.” The fascinated media had thoroughly dissected his departure, with both Fortune and Newsweek putting the ignominious saga on their covers.

  In the six months since, the details of his new startup had been kept hush-hush, in part because Apple had filed lawsuits trying to prevent Jobs from hiring away its employees. But Apple had finally dropped those suits. And now, according to the publicist from Jobs’s PR agency who called my boss at the Journal, Steve was willing to do a handful of interviews with major business publications. He was ready to start the public fan-dance that would begin to reveal in detail what exactly NeXT was up to. I was thoroughly fascinated, and equally wary; I didn’t want to get taken in by the notoriously charismatic Mr. Jobs.

  THE DRIVE SOUTH to Palo Alto is a trip through the history of Silicon Valley. From Route 92 in San Mateo over to Interstate 280, a “bucolic” eight-laner skirting San Andreas Lake and Crystal Springs Reservoir, which store drinking water for San Francisco piped in from the Sierras; past the blandly ostentatious venture-capitalist habitat along Sand Hill Road in Menlo Park and traversing the oblique, mile-long Stanford Linear Accelerator, which slashes like a hairline fracture through the landscape and beneath the freeway; past the “Stanford Dish” radio telescope, and the white-faced Herefords and ornate oak trees dotting the expansive greenbelt behind the university campus. The winter and spring rains had resurrected the prairie grass on the hills, turning them briefly as green as a
golf course from their usual dull yellow, and peppering them with patches of orange, purple, and yellow wildflowers. I was so new to the Bay Area that I didn’t yet realize that this was the most beautiful time of year to make this drive.

  My exit—Page Mill Road—was the home street address of Hewlett-Packard, early biotech pioneer ALZA Corporation, Silicon Valley “facilitators” like Andersen Consulting (now called Accenture), and the law firm Wilson Sonsini Goodrich & Rosati. But first you hit the university-owned Stanford Research Park, with its groves of low-slung corporate research-and-development labs situated with lots of grassy elbow room. Xerox’s famed Palo Alto Research Center (PARC), where Steve first saw a computer with a mouse and a graphical “bitmapped” screen interface, resides here. This was where he had chosen to headquarter NeXT.

  A young woman from NeXT’s PR firm, Allison Thomas Associates, escorted me through the boxy, two-story, concrete-and-glass office building to a small conference room with a view of a half-filled parking lot and not much more. Steve was waiting there. He greeted me with a nod, dismissed the flack, and, before I could get seated, popped that first question.

  I wasn’t sure if Steve wanted a monosyllabic answer, or if he was genuinely curious about who I was and where I came from. I assumed the latter, so I started ticking off the places and industries I’d written about for the Journal. Right after leaving graduate school at the University of Kansas, I’d moved to Dallas for the paper, where I’d written about aviation, airlines, and electronics, since Texas Instruments and Radio Shack were based there. Along the way I had won some notoriety for a profile of John Hinckley, the privileged son of a Texas oilman who shot President Reagan in 1981.

  “What year did you graduate from high school?” he interjected. “Nineteen seventy-two,” I replied, “and I spent seven years in college but never quite got my master’s degree.” “That’s when I graduated from high school,” he interjected. “So we’re about the same age.” (I found out later that he had skipped a grade.)

  I then explained that I’d spent two years each in Central America and Hong Kong writing and reporting on geopolitical issues for the Journal, and a year in Los Angeles, before finally wangling my dream job in San Francisco. At this point, it really was beginning to feel like a job interview. Except that Jobs wasn’t reacting much to any of my answers.

  “So do you know anything about computers?” he asked, interrupting again. “Nobody who writes for the major national publications knows shit about computers,” he added, shaking his head with a practiced air of condescension. “The last person who wrote about me for the Wall Street Journal didn’t even know the difference between machine memory and a floppy!”

  Now I felt on somewhat firmer footing. “Well, I was an English major, formally, but I programmed some simple games and designed relational databases on a mainframe in college.” He rolled his eyes. “For a couple of years, I worked nights as a computer operator processing the daily transactions for four banks on an NCR minicomputer.” He was staring out the window now. “And I bought an IBM PC the very first day they were available. At Businessland. In Dallas. Its serial number started out with eight zeroes. And I installed CP/M first. I only installed MS-DOS when I sold it before we moved to Hong Kong, because that’s what the buyer wanted.”

  At the mention of those early operating systems and a competitor’s product he perked up. “Why didn’t you get an Apple II?” he asked.

  Good question, but seriously … why was I letting this guy interview me?

  “I never had one,” I allowed, “but now that I’m here, I got the Journal to buy me a Fat Mac.” I had convinced the big guys in New York that if I was going to be writing about Apple, I’d better be familiar with their latest machines. “I’ve been using it for a couple of weeks. So far, I do like it better than a PC.”

  I had picked the lock. “Wait till you see what we’re going to build here,” he told me. “You’ll want to get rid of your Fat Mac.” We’d finally reached the point of the interview, the destination Steve had wanted all along—the place where he could tell me how he was going to outdo the company he had founded, and best the people, most notably Apple CEO John Sculley, who had effectively banished him from that kingdom.

  Now he would take my questions, although he didn’t always respond to them directly. I was curious, for example, about his eerily empty headquarters. Were they really going to assemble computers here? It sure didn’t look like manufacturing space. Was he bankrolling the whole thing, or was he lining up some investors? He’d sold all his Apple shares save one, netting him about $70 million, but that wasn’t enough to fund a company this ambitious. At times he veered off into completely unexpected terrain. As we talked, he drank steaming hot water from a pint beer glass. He explained that when he ran out of tea one day, it dawned on him that he liked plain old hot water, too. “It’s soothing in the very same way,” he said. Eventually he would steer the conversation back to his main pitch: higher education needed better computers, and only NeXT could deliver them. The company was working closely with both Stanford and Carnegie Mellon—universities with highly respected computer science departments. “They’ll be our first customers.”

  Despite his evasiveness and his determination to hew to a single message, Jobs was a vivid presence. The intensity of his self-confidence made me hang on his every word. He spoke in carefully constructed sentences, even when trying to answer an unexpected question. Twenty-five years later, at his memorial service, Steve’s widow, Laurene, testified to the “fully formed aesthetic” he possessed from a very young age. That confidence in his own judgment and taste came through in his answers. It also came through in the fact, as I realized over the course of our conversation, that he really was interviewing me, testing me to see if I “grokked”—understood—what was special about what he had done and what he planned to do at NeXT. Later, I came to realize that this was because Steve wanted whatever was written about him and his work to measure up to his own high standard of quality. At this stage of his life, he thought he could probably do anybody’s job better than they could—it was an attitude that gnawed at his employees, of course.

  The interview lasted forty-five minutes. The plans he laid out for NeXT were sketchy; as it turned out, this was an early sign of the troubles the company would experience over the years. There was, however, one tangible thing he did want to discuss: the NeXT logo. He gave me a fancy brochure explaining the creative evolution of the snazzy corporate symbol Paul Rand had designed. The booklet itself had been designed by Rand personally, with expensive translucent leaves separating thick, creamy pages embossed with a step-by-step guide to how he had settled upon an image that spoke in “multiple visual languages.” The logo was a simple cube with NeXT spelled out in “vermillion against cerise and green, and yellow against black (the most intense color contrast possible),” and “poised at a twenty-eight degree angle,” according to the pamphlet. At that time, Rand was noteworthy as one of America’s leading graphic designers; he was famous for dreaming up the visual identities of IBM, ABC Television, UPS, and Westinghouse, among others. For this pamphlet, and for a single, take-it-or-leave-it draft of a corporate logo, Jobs had happily parted with $100,000 of his money. That extravagance, albeit in the pursuit of perfection, was a quality that would not serve him well at NeXT.

  I DID NOT write a story after that first meeting. A fancy logo for an infant company didn’t qualify as news, no matter who had commissioned it, no matter who had designed it. (Besides, back then the Wall Street Journal never published photographs; in fact, it never printed anything in color. So even if I had wanted to write about Steve’s shiny new bauble, its subtle and impractical beauty would have been doubly lost on the Journal’s readers, who cared little for design at the time.)

  Not writing a feature was the first salvo in the twenty-five-yearlong negotiation that marked our relationship. As with most journalist/source relationships, there was one main reason Steve and I wanted to connect: we each had some
thing the other needed. I could deliver the front page of the Wall Street Journal and, later, the cover of Fortune magazine; he had a story that my readers wanted, and that I wanted to tell better and earlier than any other journalist. He usually wanted me to write about a new product of his; my readers wanted to know about him as much as the product—if not more. He wanted to point out all the glories of the product and the genius and beauty of its creation; I wanted to get behind the scenes, and to cover the competitive ups and downs of his company. This was the subtext of most of our interactions: a transaction in which we each hoped to cajole the other into some sort of advantageous deal. With Steve, this could be like a card game where one day I’d feel we were partners playing bridge and the next I’d feel like a sucker holding eight-high in poker. More often than not, he made me feel like he had the edge—whether or not that was true.

  Despite the fact that the Journal didn’t publish anything at the time, Steve told Cathy Cook, a Silicon Valley vet then working for Allison Thomas, that the interview went fine and that he thought I was “okay.” From time to time, he would have Cathy invite me over to NeXT for updates. There wasn’t much worth covering, frankly, at least in the eyes of the Journal—I didn’t write my first big piece about NeXT until 1988, when Steve finally unveiled the company’s first computer workstation. But the visits were always intriguing and invigorating.

  One time he called me in to crow about persuading Ross Perot to invest $20 million in NeXT. On the face of it, they were the oddest couple: Perot, the crew-cut, buttoned-down, uber-patriotic, navy veteran bankrolling a former hippie who still preferred to go barefoot, was a vegetarian, and didn’t believe in using deodorant. And yet I now knew Steve well enough to understand that he and Perot, whom I’d interviewed a few times, were actually kindred spirits: both were idiosyncratic, idealistic autodidacts. I told him that he absolutely had to visit Perot in his office at Electronic Data Systems (EDS) in Dallas, if for no other reason than to see his over-the-top collection of histrionic eagle sculptures and the colonnade of U.S. flags lining the headquarters driveway. Steve laughed, and rolled his eyes in amusement: “Been there, done that.” He asked if I thought he was crazy for liking Perot. “How could anyone not like Perot at least a little after meeting him?” I replied. “He’s funny.” Steve cackled in agreement, and then added, “Seriously, I think there’s a lot I can learn from him.”