“He came to the board and lied to us,” Rock growled later.

“He came to the board and lied to us,” Rock growled later. “He told us he was thinking of forming a company when in fact he had already formed it. He said he was going to take a few middle-level people. It turned out to be five senior

people.” Markkula, in his subdued way, was also offended. “He took some top executives he had secretly lined up before he left. That’s not the way you do things. It was ungentlemanly.”

Over the weekend both the board and the executive staff convinced Sculley that Apple would have to declare war on its cofounder. Markkula issued a formal statement accusing Jobs of acting “in direct contradiction to his statements that he wouldn’t recruit any key Apple personnel for his

company.” He added ominously, “We are evaluating what possible actions should be taken.” Campbell was quoted in the Wall Street Journal as saying he “was stunned and shocked” by Jobs’s behavior.

Jobs had left his meeting with Sculley thinking that things might proceed smoothly, so he had kept quiet. But after reading the newspapers, he felt that he had to respond. He phoned a few favored reporters and invited them to his

home for private briefings the next day. Then he called Andy Cunningham, who had handled his publicity at Regis McKenna. “I went over to his unfurnished mansiony place in Woodside,” she recalled, “and I found him

huddled in the kitchen with his five colleagues and a few reporters hanging outside on the lawn.” Jobs told her that he was going to do a full-fledged press conference and started spewing some of the derogatory things he was going to say. Cunningham was appalled. “This is going to reflect badly on you,” she

told him. Finally he backed down. He decided that he would give the reporters a copy of the resignation letter and limit any on-the-record comments to a few bland statements.

Jobs had considered just mailing in his letter of resignation, but Susan Barnes convinced him that this would be too contemptuous. Instead he drove it to Markkula’s house, where he also found Al Eisenstat. There was a tense

conversation for about fifteen minutes; then Barnes, who had been waiting outside, came to the door to retrieve him before he said anything he would regret. He left behind the letter, which he had

composed on a

Macintosh and

printed on the new

LaserWriter:

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“Steve, these are not low-level people,” Sculley said.“Well, these

“Steve, these are not low-level people,” Sculley said.“Well, these people were going to resign anyway,” Jobs replied. “They are going to be handing in their resignations by nine this morning.”

From Jobs’s perspective, he had been honest. The five were not division managers or members of Sculley’s top team. They had all felt diminished, in fact, by the company’s new organization. But from Sculley’s perspective,

these were important players; Page was an Apple Fellow, and Lewin was a key to the higher education market. In addition, they knew about the plans for Big Mac; even though it had been shelved, this was still proprietary information.

Nevertheless Sculley was sanguine. Instead of pushing the point, he asked Jobs to remain on the board. Jobs replied that he would think about it.

But when Sculley walked into his 7:30 staff meeting and told his top lieutenants who was leaving, there was an uproar. Most of them felt that Jobs had breached his duties as chairman and displayed stunning disloyalty to the

company. “We should expose him for the fraud that he is so that people here stop regarding him as a messiah,” Campbell shouted, according to Sculley.

Campbell admitted that, although he later became a great Jobs defender and supportive board member, he was ballistic that morning. “I was fucking furious, especially about him taking Dan’l Lewin,” he recalled. “Dan’l had built

the relationships with the universities. He was always muttering about how hard it was to work with Steve, and then he left.” Campbell was so angry that he walked out of the meeting to call Lewin at home. When his wife said he was

in the shower, Campbell said, “I’ll wait.” A few minutes later, when she said he was still in the shower, Campbell again said, “I’ll wait.” When Lewin finally came on the phone, Campbell asked him if it was true. Lewin ackno

wledged it was.

Campbell hung up

without saying

another word.

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Lewin’s university consortium had been a godsend to the

Lewin’s university consortium had been a godsend to the Macintosh group, but he had become frustrated after Jobs left and Bill Campbell had reorganized marketing in a way that reduced the role of direct sales to universities. He had been meaning to call Jobs when, that Labor Day

weekend, Jobs called first. He drove to Jobs’s unfurnished mansion, and they walked the grounds while discussing the possibility of creating a new company. Lewin was excited, but not ready to commit. He was going to

Austin with Campbell the following week, and he wanted to wait until then to decide. Upon his return, he gave his answer: He was in. The news came just in time for the September 13 Apple board meeting.

Although Jobs was still nominally the board’s chairman, he had not been to any meetings since he lost power. He called Sculley, said he was going to attend, and asked that an item be added to the end of the agenda for a

“chairman’s report.” He didn’t say what it was about, and Sculley assumed it would be a criticism of the latest reorganization. Instead, when his turn came to speak, Jobs described to the board his plans to start a new company. “I’ve

been thinking a lot, and it’s time for me to get on with my life,” he began. “It’s obvious that I’ve got to do something. I’m thirty years old.” Then he referred to some prepared notes to describe his plan to create a computer for the

higher education market. The new company would not be competitive with Apple, he promised, and he would take with him only a handful of non-key

personnel. He offered to resign as chairman of Apple, but he expressed hope that they could work together. Perhaps Apple would want to buy the distribution rights to his product, he suggested, or license Macintosh software to it.

Mike Markkula rankled at the possibility that Jobs would hire anyone from Apple. “Why would you take anyone at all?” he asked.

“Don’t get upset,” Jobs assured him and the rest of the board. “These are very low-level people that you won’t miss, and they will be leaving anyway.”

The board initially seemed disposed to wish Jobs well in his venture. After a private discussion, the directors even proposed that Apple

take a 10% stake

in the new company

and that Jobs

remain on the board.

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“Well, Yuan Shao then. The highest offices of state have been

“Well, Yuan Shao then. The highest offices of state have been held in his family for four generations, and his clients are many in the empire. He is firmly posted in Jizhou, and he commands the services of many able people. Surely he is one.”

“A bully, but a coward. He is fond of grandiose schemes, but is devoid of decision. He makes for GREat things but grudges the necessary sacrifice. He loses sight of everything else in view of a little present advantage. He is not one.”

“there is Liu Biao of Jingzhou. He is renowned as a man of perfection, whose fame has spread on all sides. Surely he is a hero.”

“He is a mere semblance, a man of vain reputation. No; not he.”

“Sun Ce is a sturdy sort, the chief of all in the South Land. Is he a hero?”

“He has profited by the reputation of his father Sun Jian. Sun Ce is not a real hero.”

“What of Liu Zhang of Yizhou?”

“Though he is of the reigning family, he is nothing more than a watch dog. How could you make a hero of him?”

“What about Zhang Xiu, Zhang Lu, Han Sui, and all those leaders?”

Cao Cao clapped his hands and laughed very loudly, saying, “Paltry people like them are not worth mentioning.”

“With these exceptions I really know none.”

“Now heroes are the ones who cherish lofty

designs in their bosoms and have plans to achieve them.

They have all-embracing schemes,

and the whole world is at their mercy.”

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Then Dong Cheng produced the pledge. There were only

At this Dong Cheng drew out the decree he had received and showed it. His host was deeply moved. Then Dong Cheng produced the pledge. There were only six names to it, and these were Dong Cheng, Wang Zifu, Chong Ji, Wu Shi, Wu Zilan, and Ma Teng.

“Since you have a decree like this, I cannot but do my share,” said Liu Bei, and at Dong Cheng’s request he added his name and signature to the others and handed it back.

  “Now let us but get three more, which will make ten, and we shall be ready to act.”

  “But you must move with GREat caution and not let this get abroad,” said Liu Bei.

  the two remained talking till an early hour in the morning when the visitor left.

  Now in order to put Cao Cao quite off the scent that any plot against him was in proGREss, Liu Bei began to devote himself to gardening, planting vegetables, and watering them with his own hands. Guan Yu and Zhang Fei ventured to remonstrate with him for taking to such an occupation when great matters needed attention.

  “the reason for this you may not know,” replied he.

  And they said no more.

  One day when the two brothers were absent, and Liu Bei was busy in his garden, two generals of Cao Cao, Xu Chu and Zhang Liao, with an escort came from Cao Cao, saying, “The command of the Prime Minister is that you come at once.”

  “What important affair is afoot?” asked Liu Bei nervously.

  “We know nothing. We were ordered to come and request your presence.”

  All he could do was to follow.

  When Liu Bei arrived, Cao Cao met him and laughingly said, “That is a big business you have in hand at home.”

  This remark made Liu Bei turn the color of clay.

Cao Cao took him by the hand and led him straight to the private garden, saying, “

The growth of vegetables that you are trying to learn is very difficult.”

Liu Bei breathed again. He said,

“That is hardly a business. It is only a solace.”

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Ma Teng’s reply was, “the Imperial Protector of Yuzhou, Liu Bei.

In A Plum Garden, Cao Cao Discusses Heroes;
Using The Host’s Forces, Guan Yu Takes Xuzhou.

“Who is it?” was the question on the lips of the conspirators.

Ma Teng’s reply was, “the Imperial Protector of Yuzhou, Liu Bei. He is here and we will ask him to help.”

“Though he is an uncle of the Emperor, he is at present a partisan of our enemy, and he will not join,” said Dong Cheng.

  “But I saw something at the hunt,” said Ma Teng. “When Cao Cao advanced to acknowledge the congratulations due to the Emperor, Liu Bei’s sworn brother Guan Yu was behind him, and grasped his sword as if to cut down Cao Cao. However, Liu Bei signed to him to hold his hand and Guan Yu did. Liu Bei would willingly destroy Cao Cao, only he thinks Cao Cao’s teeth and claws are too many. You must ask Liu Bei, and he will surely consent.”

  Here Wu Shi urged caution, saying, “Do not go too fast. Let us consider the thing most carefully.”

  they dispersed. Next day after dark Dong Cheng went to Liu Bei’s lodging taking with him the decree. As soon as Dong Cheng was announced, Liu Bei came to GREet him and led him into a private room where they could talk freely. The two younger brothers were there as well.

  “It must be something unusually important that has brought Uncle Dong Cheng here tonight,” said Liu Bei.

  “If I had ridden forth by daylight, Cao Cao might have suspected something, so I came by night.”

  Wine was brought in, and while they were drinking, Dong Cheng said, “Why did you check your brother the other day at the hunt, when he was going to attack Cao Cao?”

  Liu Bei was startled and said, “How did you know?”

  “Nobody noticed but I saw.”

  Liu Bei could not prevaricate and said, “It was the presumption of the man that made my brother so angry. Guan Yu could not help it.”

  the visitor covered his face and wept.

  “Ah,” said he, “if all the court ministers were like Guan Yu, there would be no sighs for lack of tranquillity.”

  Now Liu Bei felt that possibly Cao Cao had sent his visitor to try him, so he cautiously replied, “Where are the sighs for lack of tranquillity while Cao Cao is at the head of affairs?”

Dong Cheng changed color and rose from his seat.

“You, Sir, are a relative of His Majesty,

and so I showed you my inmost feelings. Why did you mislead me?”

But Liu Bei said, “Because I feared you might be misleading me,

and I wanted to find out.”

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Cao Cao said, “I happened to notice the GREen plums on the

Cao Cao said, “I happened to notice the GREen plums on the trees today, and suddenly my thoughts went back to a year ago when we were thrashing Zhang Xiu. We were marching through a parched county,

and everyone was suffering from thirst. Suddenly I lifted my whip, and pointing at something in the distance I said,

‘Look at those fruitful plum trees in the forest ahead.’ The soldiers heard it, and it made their mouths water. Seeing the plums kindles my appreciation. I owe something to the plums, and we will repay it today. I ordered the servants to heat some wine very hot and sent to invite you to share it.”

  Liu Bei was quite composed by this time and no longer suspected any sinister design. He went with his host to a small spring pavilion in a plum garden, where the wine cups were already laid out and GREen plums filled the dishes. They sat down to a confidential talk and free enjoyment of their wine.

  As they drank, the weather gradually changed, clouds gathering and threatening rain. The servants pointed out a mass of cloud that looked like a dragon hung in the sky. Both host and guest leaned over the balcony looking at it.

  “Do you understand the evolution of dragons?” asked Cao Cao of the guest.

  “Not in detail.”

  “A dragon can assume any size, can rise in glory or hide from sight. Bulky, it generates clouds and evolves mist; attenuated, it can scarcely hide a mustard stalk or conceal a shadow. Mounting, it can soar to the empyrean; subsiding, it lurks in the uttermost depths of the ocean.

This is the midspring season, and the dragon chooses this moment for its transformations like a person realizing his own desires and overrunning the world. The dragon among animals compares with the hero among people. You, General, have traveled all lakes and rivers. You must know who are the heroes of the present day, and I wish you would say who they are.”

  “I am just a common dullard. How can I know such things?”

  “Do not be so modest,” said Cao Cao.

  “Thanks to your kindly protection I have a post at court. But as to heroes I really do not know who they are.”

  “You may not have looked upon their faces, but you must have heard their names.”

“Yuan Shu of the South of River Huai,

with his strong army and abundant resources: Is he one?” asked Liu Bei.

His host laughed,

“A rotting skeleton in a graveyard. I shall put him out of the way shortly.”

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The Pirates Abandon ShipUpon his return from Europe in August

The Pirates Abandon ShipUpon his return from Europe in August 1985, while he was casting about for what to do next, Jobs called the Stanford biochemist Paul Berg to discuss the advances that were being made in gene splicing and recombinant DNA. Berg

described how difficult it was to do experiments in a biology lab, where it could take weeks to nurture an experiment and get a result. “Why don’t you simulate them on a computer?” Jobs asked. Berg replied that computers with such capacities were too expensive for university labs. “Suddenly, he was

excited about the possibilities,” Berg recalled. “He had it in his mind to start a new company. He was young and rich, and had to find something to do with the rest of his life.”

Jobs had already been canvassing academics to ask what their workstation needs were. It was something he had been interested in since 1983, when he had visited the computer science department at Brown to show off the

Macintosh, only to be told that it would take a far more powerful machine to do anything useful in a university lab. The dream of academic researchers was to have a workstation that was both powerful and personal. As head of the

Macintosh division, Jobs had launched a project to build such a machine, which was dubbed the Big Mac. It would have a UNIX operating system but with the friendly Macintosh interface. But after Jobs was ousted from the

Macintosh division, his replacement, Jean-Louis Gassée, canceled the Big Mac.

When that happened, Jobs got a distressed call from Rich Page, who had been engineering the Big Mac’s chip set. It was the latest in a series of

conversations that Jobs was having with disgruntled Apple employees urging him to start a new company and rescue them. Plans to do so began to jell over Labor Day weekend, when Jobs spoke to Bud Tribble, the original Macintosh

software chief, and floated the idea of starting a company to build a powerful but personal workstation. He also enlisted two other Macintosh division employees who had been talking about leaving,

That left one key vacancy on the team: a person who could market the new product to universities. The obvious candidate was Dan’l Lewin, who at Apple had organized a consortium of universities to buy Macintosh computers in bulk. Besides missing two letters in his first name, Lewin had the chiseled

good looks of Clark Kent and a Princetonian’s polish. He and Jobs shared a bond: Lewin had written a Princeton thesis on Bob Dylan and charismatic leadership, and Jobs knew something about both of those topics.

 

the engineer

George Crow

and the controller

Susan Barnes.

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As would become his standard practice, Jobs offered to provide

As would become his standard practice, Jobs offered to provide “exclusive” interviews to anointed publications in return for their promising to put the story on the cover. This time he went one “exclusive” too far, though it didn’t

really hurt. He agreed to a request from Business Week’s Katie Hafner for exclusive access to him before the launch, but he also made a similar deal with Newsweek and then with Fortune. What he didn’t consider was that one

of Fortune’s top editors, Susan Fraker, was married to Newsweek’s editor Maynard Parker. At the Fortune story conference, when they were talking excitedly about their exclusive, Fraker mentioned that she happened to know

that Newsweek had also been promised an exclusive, and it would be coming out a few days before Fortune. So Jobs ended up that week on only two magazine covers. Newsweek used the cover line “Mr. Chips” and showed him

leaning on a beautiful NeXT, which it proclaimed to be “the most exciting machine in years.” Business Week showed him looking angelic in a dark suit, fingertips pressed together like a preacher or professor. But Hafner pointedly

reported on the manipulation that surrounded her exclusive. “NeXT carefully parceled out interviews with its staff and suppliers, monitoring them with a censor’s eye,” she wrote. “That strategy worked, but at a price: Such

maneuvering—self-serving and relentless—displayed the side of Steve Jobs that so hurt him at Apple. The trait that most stands out is Jobs’s need to control events.”

When the hype died down, the reaction to the NeXT computer was muted, especially since it was not yet commercially available. Bill Joy, the brilliant and wry chief scientist at rival Sun Microsystems, called it “the first Yuppie

workstation,” which was not an unalloyed compliment. Bill Gates, as might be expected, continued to be publicly dismissive. “Frankly, I’m disappointed,” he told the Wall Street Journal. “Back in 1981, we were truly excited by the

Macintosh when Steve showed it to us, because when you put it side-by-side with another computer, it was unlike anything anybody had ever seen before.” The NeXT machine was not like that. “In the grand scope of things,

most of these features are truly trivial.” He said that Microsoft would continue its plans not to write software for the NeXT. Right after the announcement event, Gates wrote a parody email to his staff. “All reality has

been completely suspended,” it began. Looking back at it, Gates laughs that it may have been “the best email I ever wrote.”

When the NeXT computer finally went on sale in mid-1989, the factory was primed to churn out ten thousand units a month. As it turned out, sales were about four hundred a month. The beautiful factory robots, so nicely

 

painted, remained

mostly idle, and

NeXT continued to

hemorrhage cash.

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All of the good cheer served to sugarcoat, or distract attention

All of the good cheer served to sugarcoat, or distract attention from, the bad news. When it came time to announce the price of the new machine, Jobs did what he would often do in product demonstrations: reel off the features,

describe them as being “worth thousands and thousands of dollars,” and get the audience to imagine how expensive it really should be. Then he announced what he hoped would seem like a low price: “We’re going to be

charging higher education a single price of $6,500.” From the faithful, there was scattered applause. But his panel of academic advisors had long pushed to keep the price to between $2,000 and $3,000, and they thought that Jobs

had promised to do so. Some of them were appalled. This was especially true once they discovered that the optional printer would cost another $2,000, and the slowness of the optical disk would make the purchase of a $2,500 external hard disk advisable.

There was another disappointment that he tried to downplay: “Early next year, we will have our 0.9 release, which is for software developers and aggressive end users.” There was a bit of nervous laughter. What he was

saying was that the real release of the machine and its software, known as the 1.0 release, would not actually be happening in early 1989. In fact he didn’t set a hard date. He merely suggested it would be sometime in the second

quarter of that year. At the first NeXT retreat back in late 1985, he had refused to budge, despite Joanna Hoffman’s pushback, from his commitment to have the machine finished in early 1987. Now it was clear it would be more than two years later.qinpad

The event ended on a more upbeat note, literally. Jobs brought onstage a violinist from the San Francisco Symphony who played Bach’s A Minor Violin Concerto in a duet with the NeXT computer onstage. People erupted in

jubilant applause. The price and the delayed release were forgotten in the frenzy. When one reporter asked him immediately afterward why the machine was qinpad

going to be so late, Jobs

replied, “It’s not late.

It’s five years ahead

of its time.”

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