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Steve Jobs

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Steve Jobs
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  • Born: 24 February 1955
  • Birthplace: San Francisco, California
  • Best Known As: The co-founder of Apple computers

Steve Jobs was a college dropout when he teamed up with Steve Wozniak in 1976 to sell personal computers assembled in Jobs' garage. That was the beginning of Apple Computers, which revolutionized the computing industry and made Jobs a multimillionaire before he was 30 years old. He was forced out of the company in 1985 and started the NeXT Corporation, but returned to his old company in 1996 when Apple bought NeXT. Jobs soon became Apple's chief executive officer and sparked a resurgence in the company with products like the colorful iMac computer and the iPod music player. Jobs is also the CEO of Pixar, the animation company responsible for movies like Toy Story and Monsters, Inc. Pixar was purchased by the Walt Disney Company in 2006 for $7.4 billion in stock; the deal made Jobs the largest individual shareholder of Disney stock.

Some sources list Los Altos, California as Jobs's place of birth. However, in a 1995 oral history interview with The Smithsonian, Jobs said, "I was born in San Francisco, California, USA, planet Earth, February 24, 1955." Jobs was given up for adoption after birth and raised by his adoptive parents in Silicon Valley... His biological sister is novelist Mona Simpson, author of Anywhere But Here.

 
 
(1955–)

Chief executive officer, Apple Computer, and chief executive officer and chairman of the board, Pixar Animation Studios

Nationality: American.

Born: February 24, 1955, in San Francisco, California.

Education: Attended Reed College, 1972.

Family: Adopted son of Paul (bill collector) and Clara (accountant) Jobs; married Laurene Powell; children: four.

Career: Atari, 1974, game designer; Apple Computer, 1975, co-founder; Apple Computer, 1975–1977, chairman of the board; 1977–1981, de facto chief executive officer; 1981–1984, chairman of the board; NeXT, 1985–1996, president and CEO; Pixar Animation Studios, 1986–, CEO and chairman of the board; Apple Computer, 1995–1997, consultant; 1997–2000, interim CEO; 2000–, CEO.

Awards: Technical Excellence Award and Lifetime Achievement, PC Magazine, 1997; Hall of Fame, Fortune, 2000.

Address: Apple, 1 Infinite Loop, Cupertino, California 95014; http://www.apple.com.

Steven Paul (Steve) Jobs was responsible for building Apple Computer twice, as well as for rescuing Pixar Animation Studios and turning it into one of the world's most successful motion picture studios. He also built NeXT, a good idea that did not catch on. He was a hands-on manager, who studied even the minutest details of his products, with the heart and eye of an artist. His insistence on high-quality, good-looking products struck a chord with many people who appreciated the beauty of Apple products, resulting in such fabulous successes as the Macintosh computer and the iPod portable music system. These successes often reshaped how consumers viewed technology and also reshaped the technology itself. Steve Jobs and Microsoft's Bill Gates are the two people most often credited with the development of the mass-market personal computer, perhaps decades before it might otherwise have evolved.

Rough Beginning

Jobs was adopted in February 1955 by Paul and Clara Jobs, who were indulgent parents. They were so focused on their son's needs that they even moved from Mountain View, California, to Los Altos, California, in 1968, to put Jobs in a new school because he said that he could not get along with the children in his old school. (One account says that he told his parents that he was not learning anything at his old school.) He was an odd student, out of step with both classmates and teachers, with a mind that looked at science from unusual angles. He preferred to spend his time with older students rather than ones his own age, including Stephen Wozniak, an electronics genius four years older than Jobs.

Jobs worked during the summers, spending one summer in an apple orchard; he was so happy there that he later named his first legitimate business "Apple." Even in grade school he had shown a great aptitude for electronics, and he had been fortunate to have an engineer for a neighbor, who answered his many questions about how electronic devices worked. While he was in high school, he built electronic devices. Once, he wanted for his projects some rare parts made by Hewlett-Packard; he wrote to William Hewlett, cofounder of Hewlett-Packard, and asked for the parts to be sent to him. Hewlett responded by giving Jobs a summer job in a Hewlett-Packard factory. Wozniak already worked there as an up-and-coming engineer.

In 1972 Jobs attended Reed College, in Portland, Oregon, dropping out after one semester. He hung around the school for about a year longer, before submitting a résumé that greatly inflated his electronics experience to Atari, a pioneer in video gaming. For part of 1974 he worked as a game designer, helping create Breakout. After saving up enough money to pay his way, he left Atari and journeyed with friends to India to search for enlightenment. He shaved his head and walked through what he saw to be appalling poverty. He soon left India believing that Thomas Edison had done more for the betterment of humanity than all the gurus in the world. Jobs lived briefly in a farm commune and then returned to his parents' home. In 1975 he joined the Homebrew computer club, which included Wozniak among its members. Wozniak had discovered that a toy in Cap'n Crunch cereal boxes made the same tones that telephone companies used for long-distance switching. Soon, with Jobs's help, he was making small blue boxes that could be used with telephones to circumvent the safeguards of telephone companies and make free long-distance calls. It was Jobs who turned this into a business venture by selling the boxes to college students.

Apple II

Wozniak was an electronics enthusiast. He enjoyed making gadgets and then sharing his inventions with anyone who was interested, without concern for patents or profit. It was Jobs who soon saw the potential marketability of Wozniak's circuit board combined with the microprocessor chips. In 1975 he and Wozniak became partners, and Jobs gave their enterprise the name "Apple." They designed their simple computer in Jobs's bedroom. When more space was needed, Jobs's father cleared out his home's garage, where Jobs and Wozniak cobbled together their combination of a circuit board, a microprocessor, a video screen, and Jobs's most important contribution, a typewriter-style keyboard. The inventors called it the Apple I.

Jobs had already discovered a local electronics store owner who wanted 50 personal computers to sell to college students, who were the bulk of electronics enthusiasts. Jobs and Wozniak gave the Apple I the whimsical price of $666.66 and ended up selling more than 600 of them, making $774,000. The Apple I was a hobbyist's machine, a clumsy-looking beast of wires and boards that invited tinkering. The partners wanted to build something more sophisticated and easier to use—making technology easier to use would become essential to Jobs's views for building his companies. In 1977 the former Intel executive Mike Markkula, a venture capitalist, invested in Apple, becoming its chairman of the board and bringing in outsiders to help govern the company. Jobs persuaded a successful publicist, Regis McKenna, to join Apple. That year the Apple II was introduced. It took only about four hours for a purchaser to set it up and have it running, and it could run some business programs, reducing to minutes from hours certain accounting tasks. With a canny sales campaign created by McKenna, and Jobs's own magnetic personality helping persuade corporate buyers, the Apple II became the first successful mass-market personal computer.

Jobs had to have been a concern for McKenna: Jobs had long hair and a scruffy beard, and he usually wore jeans when meeting the conservatively dressed businessmen who had the power to order dozens of Apple IIs at a time. But Jobs was charismatic. When he spoke of what his machines could do and of the future the machines would shape, he created what came to be known as his "reality distortion field." His power to persuade was remarkable, and he often had potential customers vying for his attention. He was soon perceived to be a visionary genius who foresaw how to marry high-technology electronics and everyday business.

Changing the World

The Xerox Palo Alto Research Center, known as PARC, attracted some of the best engineers in the world. It was a secretive place, but after years of trying, in 1979 Jobs was allowed to visit PARC with a few of his Apple colleagues. Legend has it that he saw Xerox's graphical interface, featuring drop-down menus and pictures that could be clicked on with arrows to start programs, and he was gripped by the potential marketability to which Xerox's employees seemed oblivious. The truth is more complex: The interface at Xerox was one of several that various computer developers had been toying with for several years, and Jobs was already very familiar with them. What he may have picked up from PARC was the utility of a little handheld device called a "mouse."

In December 1980 Apple had its initial public offering of stock, becoming Apple Computer. Shares opened at $22 but rose to $29, making Apple's value $1.2 billion. Jobs was the company's leading shareholder, with 15 percent of the stock. His shares were soon worth $239 million. In 1980 the Apple III was introduced, but the first 14,000 units were recalled be cause of defects. The Apple II remained the machine preferred by customers. In 1981 IBM introduced a personal computer. Whereas Apple made all of its machines proprietary, not allowing anyone to even license the technology, IBM made its machine an open architecture, meaning that outsiders were welcome to write programs for it and to build their own variations of it.

Jobs set about waging war for personal computer supremacy. A striking feature of his work over the next five years was that he had no official corporate authority; he ruled by force of personality, making numerous enemies with his ridiculing of the ideas of others, his unwillingness to hear views contrary to his own, and his outbursts of bad temper. In 1982 he hired the executive John Sculley away from PepsiCo to become CEO of Apple. In 1982 Apple for the first time grossed $1 billion.

In 1983 the Lisa computer was introduced. It had a 32-bit microprocessor as well as an inexpensive mouse. Jobs had worked on Lisa obsessively, demanding that it be easy to use, attractive to look at, and more powerful than any other personal computer. In the process, he pushed Lisa's costs too high; the machine was too expensive and flopped. Still, Jobs and Sculley already had put Apple to work developing a machine that would be called the Macintosh. It would use much of Lisa's internal architecture, but it would be simpler. In 1984 the machine debuted with a spectacular television commercial during the Super Bowl, showing a gallant woman athlete defying a monolithic, oppressive government by hurling her hammer into a screen that represented, without actually saying so, IBM. The first Macintosh was small and beige, featuring the style of graphical interface that would become the world's standard. It sold for $2,495 and was a hit.

Jobs was great recruiter of talent, but he tended to belittle and mock employees after he recruited them; Sculley, for one, had had enough of Jobs's bizarre behavior. He persuaded the board of directors to make Jobs chairman of the board but without any authority over anything. Too many of his colleagues avoided him, and Jobs found himself with no work to do. In 1985 he quit Apple and sold all but one share of his Apple stock, losing about $500 million by selling shares when the stock was low but still leaving with about $250 million.

Next

In 1986 Jobs founded NeXT in Redwood City, California, investing $15 million of his own money to start the company. He discovered that he was held in high regard by most of the high-technology businesses in California's Silicon Valley, and his charisma was still magical. After seeing Jobs in a PBS documentary, the billionaire H. Ross Perot offered to help fund NeXT. Major businesses soon followed. In a couple of years, Jobs had raised over $250 million, mostly on his word alone.

Also in 1986 Jobs bought a computer animation studio from the motion picture magnate George Lucas, saving it from dissolution. Named Pixar Animation Studios, the newly independent company found in Jobs a CEO and chairman of the board who understood the creative process very well and who could combine his artistic nature with a sound understanding of computers. Further, Jobs financed the company himself and gave his new employees freedom to explore what they could do. It was part of Jobs's evolving vision of computers: he became an advocate of the technology as enhancing creativity, telling people that computers were not important but that what could be done with them was important. By 1988 Pixar had done well enough to win an Oscar for its computeranimated short film Tin Toy.

In October 1989 the NeXT computer was introduced. It was beautiful, with careful attention paid to the looks of every detail inside and out. To meet FCC rules on electronic interference, Jobs had the entire case made of magnesium poured into a single mold and then carefully sanded to remove sharp edges. The magnesium was good at containing electronic emissions and was strong, but it was hard to work with and drove manufacturing costs up. Repeatedly, Jobs had made workers redo work, trying to incorporate great power into NeXT while making it easy to use. It cost $9,950, too much for the mass market that might have appreciated it best. From 1989 to 1992 only 50,000 were sold.

In 1989 Jobs gave a lecture at Stanford University. While there, he met Laurene Powell, an MBA student. In 1991 they married, and they would have three children over the next dozen years. In May 1991 Jobs negotiated a contract with Walt Disney Pictures, under the terms of which Disney would pay for half the production costs of three computer-animated feature films and would receive half the income plus distribution fees for each motion picture. Pixar began work on Toy Story.

By 1993 NeXT was doing badly. Jobs was harshly criticized for supposedly wasting money and for bad management, even though those who worked for NeXT still believed that he knew what he was doing. He had spent much of his career defying criticism and insisting that he knew better than anyone else which choices were the best, but in February 1993, he closed NeXT's Fremont factory, laid off half of NeXT's employees, and stopped making computers, focusing instead on software. NeXT's computer had dazzled with its programming, and Jobs put the company's future in the open programming of Unix and the object-based programming of NeXT, which made programming simple enough that consumers could write their own programs to work with NeXT. In 1994 Digital Equipment Corporation, Hewlett-Packard, and Sun Microsystems contracted with NeXT to put NeXT operating software in their workstations.

Triumphant Return

Meanwhile, Apple was ailing. In 1993 Apple's share of the personal computer market was 8 percent; it had fallen to the status of an also-ran, becoming almost irrelevant to the future of computers. Sculley was fired and replaced by Michael Spindler as CEO. In 1995 Spindler left Apple and was replaced by Gilbert F. Amelio, who also became chairman of the board. Amelio found a company in disarray; the corporate culture was one of indifference and depression. When he would call meetings, people would not show up; his orders were ignored; and employees refused to cooperate with each other. Apple's share of the market had fallen to 5.3 percent. It may have been desperation or exasperation that led Amelio to ask Jobs to join the board of directors and become a consultant to management.

The year 1995 was good for Jobs. For the first time, NeXT turned a profit. He and his antagonist Bill Gates contracted for NeXT and Microsoft to collaborate on the designing of object-oriented software for Windows NT. On November 22, 1995, Toy Story was released to acclaim; by then Jobs had invested $60 million in Pixar. In its first release, Toy Story grossed $360 million worldwide. On November 29, 1995, Pixar had its initial public offering. Shares were offered at $22 but rose to $39. Jobs owned 80 million shares and had become a billionaire. In December 1995 Apple bought NeXT for $400 million.

By 1996 Apple's sales were in free fall. That year it shipped 3.7 million computers, for a 5.2 percent market share; in 1997 it was 2.6 million units for a 3.2 percent share. In 1997 Jobs was named "interim" CEO, at a salary of $1 per year, and Amelio left Apple. Jobs dropped the NeXT operating system that Apple had purchased. On August 6, 1997, Apple and Microsoft announced that Microsoft would invest $150 million for a minority stake in Apple. Many in the audience at the MacWorld convention in Boston booed the announcement. Although he was still certain that his vision for Apple was the only right one, Jobs's management style had radically changed from what it had been in 1985; he seemed more relaxed and open to ideas. In fact, he seemed to relish other people's ideas; perhaps his work at Pixar had improved his ability to work with the creative people at Apple. He wisely surrounded himself with top-notch executives in all the key corporate positions, and he held on to them rather than driving them away. Almost by willing it, he transformed the corporate culture into one in which employees wanted to come to work and where they saw themselves as part of a great company that had a mission to change the world for the better. Moreover, Jobs, the hobbyist of old, brought the fun back into tinkering with electronics.

In August 1998 one of Jobs's big risks, the iMac was released. It was sleek, with elegant lines, and the "i" was for "Internet"—that is, it was designed to work well with the Internet. Selling 278,000 units in its first six weeks, the iMac at first did not seem to be enough to pull Apple out of the doldrums, but then it took off, selling six million units and making Apple an important player in computers again. In 1999 Jobs had the iMac released in a choice of several colors, which proved popular. In January 2000 he was made CEO without the "interim" addition to the title. In March 2000 Apple shares peaked at $75 each. Apple grossed $7.98 billion and netted $786 million for fiscal 2000.

In 2001 Jobs began opening a chain of Apple retail stores, where customers could try out the computers, making multimedia shows and playing with the software, with unobtrusive salespeople ready to help, if asked. It was a big risk, but the idea was that if people had the opportunity to use Apple's goods, they would find them worth a higher price than competing brands. In 2003 the stores began turning a profit. Another event in 2001 launched Apple into a broader world of consumer electronics: in October, Apple introduced the iPod. So shiny and attractive that owners delighted in showing it off, it downloaded and played thousands of MP3 files, at first only from Apple computers but, in a year, from IBM compatibles as well. The iPod was pricey at $399 and a risk, but Apple had a cash reserve of $4.1 billion to fall back on, up from $280 million at the time Jobs had returned to the company. Even so, Apple shares dropped to about $25 for 2001.

In what may have been the most brilliant salesmanship of his career, Jobs persuaded every major record company to sell Apple the rights to market their songs on the Internet, even though the companies were suspicious of the Internet, viewing it as a haven for thieves of their music. In April 2003 Apple opened the online store iTunes, at first only for Macintoshes but soon for Windows operating system computers as well. At 99 cents per song, with 65 cents going to the music companies, 25 cents to overhead, and only 10 cents to Apple, iTunes seemed fated to lose money. But as Jobs pointed out, the idea was to sell iPods, which could download music from iTunes. By 2004 iPod was the world's dominant portable music player, with iTunes owning 70 percent of the market of downloaded music.

Sources for Further Information

Landrum, Gene N., "Steven Jobs (Apple)–Autocratic," Profiles of Genius: Thirteen Men Who Changed the World. Buffalo, NY: Prometheus Books, 1993.

Langer, Andy, "The God of Music? If Apple's Brash and Bold New Digital-Music Venture Works, That's Pretty Much What He'll Be: A Conversation with Steve Jobs," Esquire, July 2003, pp. 82–85.

Quittner, Josh, "Steve Jobs: The Fountain of Fresh Ideas," Time, April 26, 2004, p. 75.

Stross, Randall E., Steve Jobs and the NeXT Big Thing. New York: Atheneum, 1993.

—Kirk H. Beetz

 
Scientist: Steven Paul Jobs

[b. Los Altos, California, February 24, 1955]

After teaming with Steve Wozniak to build a device to make long-distance calls from pay phones without paying, Jobs and Wozniak created one of the first personal computers and, in 1977, the Apple II, the first home computer in a case with the ability to display color and record data using a disk drive. Jobs's specialty was in directing innovation -- seeing what was needed and making it available. This led to computers that included the use of icons and a mouse, neither of which Jobs invented, but which he brought successfully to market.


 
Modern Science: Steve Jobs
Jobs, Steven

The founder of Apple Computer and the man often given credit for the wide availability of personal computers. Jobs is often cited as an example of the new type of entrepreneur associated with the information age.

 
Biography: Steven Jobs

Computer designer and corporate executive Steven Jobs (born 1955) is cofounder of Apple Computers. With his vision of affordable personal computers, he launched one of the largest industries of the past decades while still in his early twenties and remains one of the most inventive and energetic minds in American technology.

Born in 1955, Steven Jobs was adopted shortly thereafter by a California couple, Paul and Clara Jobs. Jobs showed an early interest in electronics and gadgetry. As a high school student, he boldly asked William Hewlett, co-founder and president of the Hewlett-Packard computer firm, for some parts he needed to complete a class project. Hewlett was impressed enough to give Jobs the parts and offer him a summer internship at Hewlett-Packard.

Dropped Out of College

After graduating from high school in 1972, Jobs attended Reed College in Portland, Oregon, for two years before dropping out, partly to ease his family's financial burden and partly to find himself. He hoped to visit India and study eastern spiritualism, but lacking necessary funds, went to work part-time for Atari Computers. He was able to save enough money to finance a trip to India in the summer of 1974. While there, he practiced meditation, studied eastern culture and religion, and even shaved his head. But by the fall, he became ill with dysentery and was forced to return to the United States.

For a short time, Jobs lived in a California commune but soon became disenchanted with the lifestyle. In 1975, he began associating with a group of computer aficionados known as the Homebrew Computer Club. One member, a technical whiz named Steve Wosniak, whom Jobs had first met at Hewlett-Packard, was trying to build a small computer. Jobs became fascinated with the marketing potential of such a computer, and in 1976 he and Wosniak formed their own company. The team was content to sell circuit boards designed by Wosniak until the computer prototype was complete. That same year, Wosniak succeeded in designing a small computer, and using Jobs's parents' garage, the two men worked to refine and market the product.

Cofounded Apple Computer Co

Jobs saw a huge gap in the existing computer market, as no product was targeted for home use. Wosniak improved his initial computer while Jobs lined up investors and bank financing. Marketing manager A. C. Markkula eventually invested $250,000 and became an equal partner in the Apple Computer Company. With new capital, Jobs and Wosniak refined the prototype. The redesigned computer - christened the "Apple II" - hit the market in 1977, with impressive first year sales of $2.7 million. In one of the most phenomenal cases of corporate growth in U.S. history, the company's sales grew to $200 million within three years. Jobs and Wosniak had opened an entirely new market, that of personal computers, bringing the computational speed of business systems into people's homes and beginning a new era in information processing.

By 1980, the personal computer era was well underway. Apple was forced to continually improve its products to remain ahead in a growing marketplace. Competitors such as Radio Shack, Commodore, and IBM were gaining sales from Apple's market. In 1980, Apple introduced the Apple III computer, and improved version of the Apple II, but the new model suffered technical and marketing problems. It was withdrawn from the market, but was later reworked and reintroduced.

Jobs continued to be the marketing force behind Apple. He admitted that mistakes were made with the Apple III, but looked for innovative ways to meet new and existing consumer needs. Early in 1983, Jobs unveiled Lisa, another new computer, aimed this time at business executives. Lisa was designed for people possessing minimal computer experience. The model did not sell well, however, because of its high price and increased competition from IBM personal computers. By 1983, it was estimated that Apple lost half of its market share to IBM.

Macintosh falls, Jobs resigns

Faced with a declining market share, Apple introduced the Macintosh in 1984. In designing the model, Jobs apparently paid more attention to appearances than function. Although the Macintosh had "user-friendly" software and on-screen displays, Jobs failed to equip it with either a letter-quality printer or a hard disk drive. Lacking these features, the Macintosh did not sell well to businesses. The failure of the Macintosh signalled the beginning of Jobs's downfall at Apple Computer Company. In 1985, following a highly publicized showdown at Apple, Jobs resigned from the company he had founded, though he retained his title as chairman of its board of directors.

It was not long before Steve Jobs resurfaced, however. Soon after leaving Apple, he hired some of his former employees to begin a new computer company. The company was called NeXT, and Jobs invested $7 million of his own money to get it started. For three years, Jobs and his employees worked to produce the first NeXT computer, which was aimed at the educational market. Late in 1988, the NeXT computer was introduced at a large gala event in San Francisco. Initial reactions were generally good; the product was user-friendly, with very fast processing speed, excellent graphics displays, and an outstanding sound system. Other innovations included an optical disk drive instead of floppy disks, and a special sound chip to provide the fidelity of a compact disc. Judging from initial reactions, many critics were convinced that Steve Jobs had brought another revolutionary product to American consumers.

Despite the warm reception, however, the NeXT machine never caught on. It was too costly, had a black-and-white screen, and couldn't be linked to other computers or run common software, Joseph Nocera wrote in a biting profile of Jobs in Gentleman's Quarterly. Nocera argued that Jobs's charisma and persuasive charm duped his employees, the press, and Jobs himself into believing he could not fail - despite strong evidence to the contrary. "Jobs started NeXT with an unshakable faith in his own press clips, in which his mistakes were always overlooked while his supposed triumphs were always wildly oversold," Nocera wrote.

Nocera said he also fell victim to the Jobs myth when he visited NeXT in 1986. He witnessed Jobs brutalize employees who worshipped him, obsess over mindless details, and indulge his expensive tastes - yet Nocera reported none of the contradictions. "The point is," he wrote in 1993, "my willingness to be seduced by Steve Jobs caused me to miss what I was seeing with my own eyes. Even in 1986, the evidence strongly suggested that lightning was not going to strike twice. The incongruities were too severe, the dreams too farfetched…. You'd ask the people at NeXT how, exactly, their computer was going to change the world and they would lapse into gobbledygook; they really had no idea what they were trying to accomplish with this new machine."

Bought Pixar, Made Toy Story

NeXT was not, however, the end of Steve Jobs. Lightning, indeed, struck a second time. In 1986, Jobs paid filmmaker George Lucas $10 million for a small firm called Pixar that specialized in computer animation. "Over the next six years Jobs poured another $40 million of his own money into the company … as it set out to make the first-ever computer-animated feature film," Time magazine reported in February 1996. That film was Toy Story, a huge box office hit. Pixar's initial public stock offering was an enormous success. The share price climbed dramatically, and Jobs's 80 percent stake in Pixar suddenly was worth $1 billion.

"Jobs makes the point that Pixar, like other (initial public offering) overnight successes, was really anything but an overnight success," said the Time article. "-The things I've done in my life have required a lot of years of work before they took off,' he says. He and Wosniak started work on Apple in 1975. -So it was really six years of work before we went public. And Pixar has been 10 years…. The thing that drives me and my colleagues … is that you see something very compelling to you, and you don't quite know how to get it, but you know, sometimes intuitively, it's within your grasp. And it's worth putting in years of your life to make it come into existence."'

In December of 1996, Apple announced that it was purchasing Next Software for over $400 million. Jobs returned to Apple as a part-time consultant to CEO Gilbert Amelio. The following year, in August, Apple entered into a partnership with archrival Microsoft, in which the two companies, according to the New York Times, "agreed to cooperate on several sales and technology fronts." The alliance was an unprecedented one for the industry, but analysts predicted that Microsoft's support will ultimately save Apple, a company that had in the late 1990s come to serve a much more niche market than Microsoft. "We want to let go of this notion that for Apple to win, Microsoft has to lose," Jobs said. In September of 1997, Jobs was named interim CEO of Apple while a replacement for the ousted Amelio was sought.

Further Reading

Butcher, Lee, Accidental Millionaire: The Rise and Fall of Steven Jobs at Apple Computer, Paragon House, 1987.

Young, Jeffrey S., Steve Jobs: The Journey Is the Reward, Scott, Foresman, 1988.

Esquire, December, 1986, pp. 84-101.

Fortune, February 20, 1984, pp. 86-88.

Gentleman's Quarterly, October 1993, pp. 105-111.

Newsweek, January 30, 1984, pp. 54-57; September 30, 1985, pp. 46-50; October 24, 1988, pp. 46-51.

Rolling Stone, April 4, 1996, pp. 51 °.

Time, February 15, 1982, pp. 40-41; January 3, 1983, pp. 25-27; January 30, 1984, pp. 68-69; February 19, 1996, pp. 43-47.

Business Week March 17, 1997, pp. 116.

 

(born Feb. 24, 1955, San Francisco, Cal., U.S.) U.S. businessman. Adopted in infancy, he grew up in Los Altos. He dropped out of Reed College and went to work for Atari Corp. designing video games. In 1976 he cofounded (with Stephen Wozniak) Apple Computer (incorporated in 1977; now Apple Inc.). The first Apple computer, created when Jobs was only 21, changed the public's idea of a computer from a huge machine for scientific use to a home appliance that could be used by anyone. Apple's Macintosh computer, which appeared in 1984, introduced a graphical user interface and mouse technology that became the standard for all applications interfaces. In 1980 Apple became a public corporation, and Jobs became the company's chairman. Management conflicts led him to leave Apple in 1985 to form NeXT Computer Inc., but he returned to Apple in 1996 and became CEO in 1997. The striking new iMac computer (1998) revived the company's flagging fortunes.

For more information on Steven Paul Jobs, visit Britannica.com.

 
Columbia Encyclopedia: Jobs, Steven Paul
(jŏbz) , 1955–, American businessman, b. San Francisco. Working with Stephen Wozniak, Jobs helped launch the personal-computer revolution by introducing the first Apple computer in 1976. Jobs later successfully established Apple's line as a user-friendly, graphically oriented alternative to the IBM-Microsoft personal computer and an important factor in desktop publishing. He resigned in 1985 after losing a corporate power struggle. In 1985 he founded the NeXT Computer Company and in 1986 bought Pixar Animation Studios, a computer animation firm founded by George Lucas. When Pixar went public in 1995, Jobs became an overnight billionaire; in 2006 Pixar was purchased by the Walt Disney Company, making Jobs the largest shareholder in Disney. In 1997, Jobs returned to Apple as chief executive and since has helped revive the financially ailing company while reestablishing his own reputation as an industry visionary.

Bibliography

See L. Butcher, Accidental Millionaire (1988); J. Young, Steve Jobs (1988); A. Deutschman, The Second Coming of Steve Jobs (2000).

 
Quotes By: Steve Jobs

Quotes:

"I want to put a ding in the universe."

"Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations."

 
Wikipedia: Steve Jobs


Steve Jobs
Stevejobs_Macworld2005.jpg
Born February 24 1955 (1955--) (age 52)[1]
Flag of the United States Flag of California San Francisco, California, U.S.A.[1]
Occupation CEO of Apple Inc.[2]
Salary US$1[3][4][5]
Net worth Green_Arrow_Up_Darker.svgUS$5.7 billion (2007)[6]
Spouse Laurene Powell (1991-present)
Children 4

Steven Paul Jobs (born February 24 1955) is the co-founder and CEO of Apple and was the CEO of Pixar until its acquisition by Disney.[2] He is currently the largest Disney shareholder[7] and a member of Disney's Board of Directors. He is considered a leading figure in both the computer and entertainment industries.[8]

Jobs's history in business has contributed greatly to the myths of the quirky, individualistic Silicon Valley entrepreneur, emphasizing the importance of design while understanding the crucial role aesthetics play in public appeal. His work driving forward the development of products that are both functional and elegant has earned him a devoted following.[9]

Together with Apple co-founder Steve Wozniak, Jobs helped popularize the personal computer in the late '70s. In the early '80s, still at Apple, Jobs was among the first to see the commercial potential of the mouse-driven GUI.[10] After losing a power struggle with the board of directors in 1985, Jobs resigned from Apple and founded NeXT, a computer platform development company specializing in the higher education and business markets. NeXT's subsequent 1997 buyout by Apple brought Jobs back to the company he co-founded, and he has served as its chief executive officer since shortly after his return.

Biography

Early years

Steve Jobs was born on February 24, 1955 in San Francisco[1] to American Joanne Carole Schieble and Syrian Abdulfattah John Jandali, a graduate student who later became a political science professor.[11] One week after birth, Jobs was put up for adoption by his unmarried mother, who was also in graduate school. He was adopted by Paul and Clara (née Hagopian) Jobs of Mountain View, Santa Clara County, California.[12] They gave him the name Steven Paul Jobs. His biological parents later married and gave birth to Jobs' sister, the novelist Mona Simpson, whom Jobs did not meet until they were adults. The marriage of his biological parents ended in divorce years later. Jobs dislikes hearing the "adoptive parents" appellation applied to Paul and Clara Jobs and refers to them as his only parents. He attended Cupertino Middle School and Homestead High School in Cupertino, California,[9] and frequented after-school lectures at the Hewlett-Packard Company in Palo Alto, California. He was soon hired there and worked with Steve Wozniak as a summer employee.[13] In 1972, Jobs graduated from high school and enrolled in Reed College in Portland, Oregon. Although he dropped out after only one semester,[14] he continued auditing classes at Reed, such as one in calligraphy. "If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts," he said.[15]

In the autumn of 1974, Jobs returned to California and began attending meetings of the Homebrew Computer Club with Steve Wozniak.[16] He took a job as a technician at Atari, a manufacturer of popular video games, with the primary intent of saving money for a spiritual retreat to India. During the 1960s, it had been discovered by phone phreakers (and popularized by John Draper) that a half taped-over toy-whistle included in every box of Cap'n Crunch breakfast cereal was able to reproduce the 2600 hertz supervision tone used by the AT&T long distance telephone system. After reading about it and later meeting with John Draper, Jobs and Wozniak went into business briefly in 1974 to build "blue boxes" that allowed illicit free long distance calls.

Jobs then backpacked around India with a Reed College friend (and, later, first Apple employee), Daniel Kottke, in search of philosophical enlightenment. He came back with his head shaved and wearing traditional Indian clothing. He returned to his previous job at Atari and was given the task of creating a circuit board for the game Breakout. According to Atari Founder Nolan Bushnell, Atari had offered US$100 for each chip that was reduced in the machine. Jobs had little interest or knowledge in circuit board design and made a deal with Wozniak to split the bonus evenly between them if Wozniak could minimize the number of chips. Much to the amazement of Atari, Wozniak reduced the number of chips by 50, a design so tight that it was impossible to reproduce on an assembly line. At the time, Jobs told Wozniak that Atari had only given them US$700 (instead of the actual US$5000) and that Wozniak's share was thus US$350.[17][18][19][20][21][22]

Steve Jobs and Bill Gates at D5
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Steve Jobs and Bill Gates at D5

Beginnings of Apple Computer

See also: History of Apple

When twenty-one-year-old Jobs saw a computer that Wozniak had designed for his own use, he convinced Wozniak to assist him and started a company to market the computer. Apple Computer Co. was founded as a partnership on April 1 1976. Though their initial plan was to sell just printed circuit boards, Jobs and Wozniak ended up creating a batch of completely assembled computers and thus entered the personal computer business. The first personal computer Jobs and Wozniak introduced, the Apple I, sold for US$666.66, a number Wozniak came up with because he liked repeating digits.[18] Its successor, the Apple II, was introduced the following year and became a huge success, turning Apple into an important player in the nascent personal computer industry. In December 1980, with a successful IPO, Apple Computer became a publicly traded corporation, making Jobs a multi-millionaire.

As Apple continued to expand, the company began looking for an experienced executive to help manage its expansion. In 1983, Jobs lured John Sculley away from Pepsi-Cola, to serve as Apple's CEO, challenging him, "Do you want to spend the rest of your life selling sugared water, or do you want a chance to change the world?"[23][24] The following year, Apple set out to do just that, starting with a Super Bowl television commercial titled, "1984." Two days later at Apple's annual shareholders meeting on January 24 1984, an emotional Jobs introduced the Macintosh to a wildly enthusiastic audience; Andy Hertzfeld described the scene as "pandemonium."[25] The Macintosh became the first commercially successful computer with a graphical user interface, although it was heavily influenced by Xerox PARC. The development of the Mac was started by Jef Raskin, and eventually taken over by Jobs.

While Jobs was a persuasive and charismatic evangelist for Apple, some of his employees from that time had described him as an erratic and tempestuous manager. An industry-wide sales slump towards the end of 1984 caused a deterioration in Jobs' working relationship with Sculley, and at the end of May 1985 – following an internal power struggle and an announcement of significant layoffs – Sculley relieved Jobs of his duties as head of the Macintosh division.[26]

NeXT

In 1986, finding himself sidelined by the company he had founded, Jobs sold all but one of his shares in Apple. The single share may have been for symbolic and sentimental reasons or to ensure that he would receive stock reports (as some biography books have stated) and attend shareholder meetings.

Around the same time, Jobs founded another computer company, NeXT Computer. Like the Apple Lisa, the NeXT workstation was technologically advanced, but was never able to break into the mainstream mainly owing to its high cost. Among those who could afford it, however, the NeXT workstation garnered a strong following because of its technical strengths, chief among them its object-oriented software development system. Jobs marketed NeXT products to the scientific and academic fields because of the innovative, experimental new technologies it incorporated (such as the Mach kernel, the digital signal processor chip, and the built-in Ethernet port).

The NeXT Cube was described by Jobs as an "interpersonal" computer, which he believed was the next step after "personal" computing. That is, if computers could allow people to communicate and collaborate together in an easy way, it would solve a lot of the problems that "personal" computing had come up against. During a time when e-mail for most people was plain text, Jobs loved to demo the NeXT's e-mail system, NeXTMail, as an example of his "interpersonal" philosophy. NeXTMail was one of the first to support universally visible, clickable embedded graphics and audio within e-mail.

Jobs ran NeXT with an obsession for aesthetic perfection, as evidenced by such things as the NeXT Cube's magnesium case. This put considerable strain on NeXT's hardware division, and in 1993, after having sold only 50,000 machines, NeXT transitioned fully to software development with the release of NeXTSTEP/Intel.

NeXT technology played a large role in catalyzing three unrelated events:

  • The World Wide Web. Tim Berners-Lee developed the original World Wide Web system at CERN on a NeXT workstation. Jobs' insistence that average people should be able to write custom "mission-critical" applications formed the basis of Interface Builder, which Berners-Lee utilized to do just that — by writing a program entitled "WorldWideWeb 1.0".
  • NeXT computers were used in the development of the computer game Doom.[2]
  • The return of Apple Computer. Apple's reliance on outdated software and internal mismanagement, particularly its inability to release a major operating system upgrade, had brought it near bankruptcy in the early-to-mid 1990s. Jobs' progressive stance on Unix underpinnings was considered overly ambitious and somewhat backward in the 1980s, but his choice ultimately became an expandable, solid foundation for an operating system. Apple would later acquire this software and, under Jobs' leadership, experience a renaissance.

Return to Apple

See also: "1998 to 2005: New beginnings" in Apple Inc.

In 1996, Apple announced that it would buy NeXT for US$402 million. The deal was finalized in early 1997[27], bringing Jobs back to the company he founded. He soon became Apple's interim CEO after the directors lost confidence in and ousted then-CEO Gil Amelio in a boardroom coup. In March of 1998, in order to concentrate Apple's efforts on returning to profitability, Jobs immediately terminated a number of projects such as Newton, Cyberdog, and OpenDoc. In the coming months, many employees developed a fear of encountering Jobs while riding in the elevator, "afraid that they might not have a job when the doors opened. The reality was that Jobs's summary executions were rare, but a handful of victims was enough to terrorize a whole company."[28]

With the purchase of NeXT, much of the company's technology found its way into Apple products, notably NeXTSTEP, which evolved into Mac OS X. Under Jobs's guidance the company increased sales significantly with the introduction of the iMac and other new products; since then, appealing designs and powerful branding have worked well for Apple. At the 2000 Macworld Expo, Jobs officially dropped the "interim" modifier from his title at Apple and became permanent CEO, a job he still holds today.

In recent years, the company has branched out. With the introduction of the iPod portable music player, iTunes digital music software, and the iTunes Store, the company is making forays into consumer electronics and music distribution. Most recently, Apple entered the cellular phone business with the introduction of the iPhone, a multi-touch display cell phone, iPod, and internet device. While stimulating innovation, Jobs also reminds his employees that "real artists ship",[29] by which he means that delivering working products on time is as important as innovation and attractive design.

Jobs works at Apple for an annual salary of US$1,[3] and this earned him a listing in Guinness World Records as the "Lowest Paid Chief Executive Officer." His current salary at Apple officially remains US$1 per year, although he has traditionally been the recipient of a number of lucrative "executive gifts" from the board, including a US$46 million jet in 1999 and just under 30 million shares of restricted stock in 2000–2002. As such, Jobs is well compensated for his efforts at Apple despite the nominal one-dollar salary. This approach reduces his personal tax liability because, under current U.S. tax law, salary income is taxed at a significantly higher rate (currently up to 35%) than the capital gains tax (currently a maximum of 15%) applied to profits arising from the sale of stock grants. Obtaining remuneration through stock instead of salary is a common extrinsic rewarding technique which ties management performance to financial benefits. Furthermore, it acts as a tax minimization strategy.

Jobs is both admired and criticized for his consummate skill at persuasion and salesmanship, which has been dubbed the "reality distortion field" and is particularly evident during his keynote speeches (colloquially known as "Stevenotes") at Macworld Expos.

In 2005, Jobs responded to criticism of Apple's poor recycling programs for e-waste in the U.S. by lashing out at environmental and other advocates at Apple's Annual Meeting in Cupertino in April. When asked by a representative of a liberal investment fund why Apple's programs lagged behind Dell's and HP's, Jobs wound up his critic by calling the advocates' complaints "bullshit." However, a few weeks later, Apple announced it would take back iPods for free at its retail stores. The Computer TakeBack Campaign responded by flying a banner from a plane over the Stanford University graduation at which Jobs was the commencement speaker. The banner read "Steve — Don't be a mini-player recycle all e-waste". In 2006 he further expanded Apple's recycling programs to any U.S. customer who buys a new Mac. This program includes shipping and "environmentally friendly disposal" of their old systems.[30]

Jobs began 2007 with Macworld Expo at the Moscone Center in San Francisco. He began the episodic keynote address by reviewing Apple's music business through iTunes music and video highlights, mentioning that rumors of the decline in Internet music business were false. Highlights included the long-awaited iPhone mobile device as well as the rebranding and official introduction of Apple TV. After the long-awaited introduction of these two products, Jobs announced on January 9 2007 that "Apple Computer, Inc" would be now known as "Apple Inc."

Jobs was also involved in 2007 in an attempt to persuade former Vice President of the United States Al Gore, a member of Apple's board of directors, to run for President in 2008.[31]

Stock options scandal

In 2001, Steve Jobs was granted stock options in the amount of 7,500,000 shares of Apple with an exercise price of US$18.30, which allegedly should have been US$21.10, thereby incurring taxable income of $20,000,000 that he did not report as income. Apple overstated its earnings by that same amount. If found liable, Jobs may face a number of criminal charges and civil penalties. Apple claimed that the options were originally granted at a special board meeting that may never have taken place. Furthermore, the investigation is focusing on false dating of the options resulting in a retroactive US$20 million increase in the exercise price. The case is the subject of active criminal and civil government investigations,[32] though an independent internal Apple investigation completed on December 29 2006 found that Jobs was unaware of these issues and that the options granted to him were returned without being exercised in 2003.[33]

Pixar and Disney

In 1986 Steve Jobs bought The Graphics Group (later renamed Pixar) from Lucasfilm's computer graphics division for the price of US$10 million, US$5 million of which was given to the company as capital.[34]. The major cause of the low purchase price was George Lucas' need to finance his 1983 divorce without significantly reducing his stock and control of the Star Wars enterprises

The new company, which was originally based in Point Richmond, California, but has since relocated to Emeryville, California, contracted with Disney to produce a number of computer-animated feature films, which Disney would co-finance and distribute.

The first film produced by the partnership, Toy Story, brought fame and critical acclaim to the studio when it was released in 1995. Over the next ten years, under Pixar's creative chief John Lasseter, the company would produce the box-office hits A Bug's Life (1998), Toy Story 2 (1999), Monsters, Inc. (2001), Finding Nemo (2003), The Incredibles (2004), Cars (2006), and Ratatouille (2007). Both Finding Nemo and The Incredibles received the Academy Award for Best Animated Feature, an award introduced in 2001.

In the years 2003 and 2004, as Pixar's contract with Disney was running out, Jobs and Disney chief executive Michael Eisner tried but failed to negotiate a new partnership, and in early 2004 Jobs announced that Pixar would seek a new partner to distribute its films once its contract with Disney expired. Personal animosity between the two executives was largely blamed for the companies' failure to renew their partnership.

In October 2005, Bob Iger replaced Eisner at Disney, and Iger quickly worked to patch up relations with Jobs and Pixar. On January 24 2006, Jobs and Iger announced that Disney had agreed to purchase Pixar in an all-stock transaction worth US$7.4 billion. Once the deal closed, Jobs became The Walt Disney Company's largest single shareholder with approximately 7% of the company's stock.[35] Jobs' holdings in Disney far exceed those of Eisner, who holds 1.7%, and Disney family member Roy E. Disney, who holds about 1% of the company's stock and whose criticisms of Eisner included the soured Pixar relationship and accelerated his ousting. Jobs joined the company's board of directors upon completion of the merger.

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Jobs also helps oversee Disney and Pixar's combined animation businesses with a seat on a special six-man steering committee. One of the committee's first decisions was to discontinue the production of so-called "cheapquels" (cheap direct-to-video sequels). Many also see Jobs as a valuable and influential advisor to Iger and Disney on technology matters.

Managerial style

Much has been made of Jobs's aggressive and demanding personality. Fortune noted that he "is considered one of Silicon Valley's leading egomaniacs."[36] Commentaries on his temperamental style can be found in Mike Moritz’s The Little Kingdom, one of the few authorized biographies of Jobs; Jeffrey S. Young’s unauthorized Steve Jobs: The Journey Is the Reward; The Second Coming of Steve Jobs, by Alan Deutschman; and iCon: Steve Jobs, by Jeffrey S. Young & William L. Simon.

In iCon: Steve Jobs the authors point out that Paul Jobs, his father by adoption, was also known for his aggressive side: "Paul was soon hired as a kind of strongarm man by a finance company that sought help collecting on auto loans — an early repo man. Both his bulk and his aggressive personality were well suited to this somewhat dangerous pursuit, and his mechanical bent enabled him to pick the locks of the cars he had to repossess and hot-wire them if necessary."

In the documentary Triumph of the Nerds, the reaction to Jobs' famous firing from Apple by CEO John Sculley and the Apple Board of Directors was talked about by various people:


The grandiose plans of what Macintosh was gonna be was just so far out of whack with the truth of what the product was doing. And the truth of what the product was doing was not horrible, it was salvageable. But the gap between the two was just so unthinkable that somebody had to do something, and that somebody was John Sculley.

Chris Espinosa


The board had to make a choice and I said look, it's Steve's company, I was brought in here to help. If you want him to run it, that's fine by me. But we gotta at least decide what we're gonna do and everybody's got to get behind it … and ultimately after the board talked with Steve and talked with me, the decision was that we would go forward with my plans and Steve left.

John Sculley


What can I say? I hired the wrong guy. He destroyed everything I spent 10 years working for; starting with me, but that wasn't the saddest part. I would have gladly left Apple if Apple would have turned out like I wanted it to.

—Steve Jobs


People in the company had very mixed feelings about it, everyone had been terrorized by Steve Jobs at some point or another, and so there was a certain relief that the terrorist would be gone. And on the other hand I think there was incredible respect for Steve Jobs by the very same people, and we were all very worried what would happen to this company without the visionary, without the founder, without the charisma.

Larry Tesler


He took it as a personal attack, started attacking Sculley, in which, you know, backed himself into a corner. Because he was sure that the board would support him and not Sculley … Apple never recovered from losing Steve; Steve was the heart and soul and driving force; it would be quite a different place today; they lost their soul.

Andy Hertzfeld

Personal life

Jobs married Laurene Powell, nine years his junior, on March 18 1991 and has had three children with her.[12] He also had a daughter named Lisa Brennan-Jobs with Chris-Ann Brennan, whom he did not marry. Lisa (born May 17 1978) is a journalist who wrote for The Harvard Crimson.

In the unauthorized biography The Second Coming of Steve Jobs, author Alan Deutschman reports that Jobs once dated Joan Baez. Deutschman quotes Elizabeth Holmes, a friend of Jobs from his time at Reed College, as saying she "believed that Steve became the lover of Joan Baez in large measure because Baez had been the lover of Bob Dylan." In another unauthorized biography, iCon: Steve Jobs by Jeffrey S. Young & William L. Simon, the authors suggest that Jobs might have married Baez, but her age at the time (41) meant it was unlikely the couple could have children. Baez included a mention of Jobs in the acknowledgments of her 1987 memoir And A Voice To Sing With.

Steve Jobs is also a devoted Beatles fan. He has referenced them on more than one occasion at Keynotes and also was interviewed on a showing of a Paul McCartney concert. He also enjoys Bach and other classical music.

Jobs is not a vegetarian or vegan as is often claimed. Although he does not eat mammalian meat or fowl, he eats fish from time to time. This is known as pescetarianism.[37]

In 1982, Jobs bought an apartment in The San Remo, an apartment building in New York City with a politically progressive reputation, where Demi Moore, Steven Spielberg, Steve Martin, and Princess Yasmin Aga Khan, daughter of Rita Hayworth, also had apartments. With the help of I.M. Pei, Jobs spent years renovating his apartment in the top two floors of the building's north tower, only to sell it almost two decades later to U2 frontman Bono. Jobs had never moved in.[38][39]

In 1984, Jobs purchased a 17,000 square foot, 14 bedroom Spanish Colonial mansion, designed by George Washington Smith in Woodside, California, also known as Jackling House. Jobs lived in the mansion for ten years, it was, reportedly, in an almost unfurnished state; he kept an old BMW motorcycle in the living room, and let Bill Clinton use it in 1998. He allowed the mansion to fall into a state of disrepair, planning to demolish the house and build a smaller home on the property; but he met with complaints from local preservationists over his plans. In June 2004, the Woodside Town Council gave Jobs approval to demolish the mansion, on the condition that he advertise the property for a year to see if someone would move it to another location and restore it. A number of people expressed interest, including several with experience in restoring old property, but no agreements to that effect were reached. Later that same year, a local preservationist group began seeking legal action to prevent demolition. In January 2007 Jobs was denied the right to demolish the property, by a court decision.[40]

Jobs had a public war of words with Dell Computer CEO Michael Dell, starting when Jobs first criticized Dell for making "un-innovative beige boxes." On October 6 1997, when Michael Dell was asked what he would do if he owned then-troubled Apple Computer, he said "I'd shut it down and give the money back to the shareholders."[41] In 2006, Steve Jobs sent an email to all employees when Apple's market cap rose above Dell's. The email read:

Team, it turned out that Michael Dell wasn't perfect at predicting the future. Based on today's stock market close, Apple is worth more than Dell. Stocks go up and down, and things may be different tomorrow, but I thought it was worth a moment of reflection today. Steve."[42]

In 2005, Steve Jobs banned all books published by John Wiley & Sons from the Apple retail stores in response to their publishing an unauthorized biography, iCon: Steve Jobs.[43]

When Jobs spoke at the Stanford Commencement, he spoke frankly about his opinions on entrepreneurship, work, and life. He reflected on what kept him going through challenging times: "I’m convinced that the only thing that kept me going is that I loved what I did. You’ve