You grew up in an odd place here, surrounded by all this technology. Yes. The guy next door to my parents’ place was doing some of the foundation research on solar cells. Actually, I had a pretty normal childhood. It’s nice growing up here. I mean the air was very clean; it was a little like being out in the country. As a kid, were you already conscious of some sort of social structure forming, that there were people who were in the silicon business and there were people who weren’t? Hmmm, no. See, there wasn’t such a thing as the silicon business back in the early '60s when I was between the ages of 5 and 10. There was electronics. Silicon, as a distinct item from the whole of electronics, didn’t really occur until the '70s. How did it affect the culture here? Well, Silicon Valley has evolved into the heart of the electronics industry—which is the second largest industry in the world and will soon pass agriculture and become the largest. So Silicon Valley is destined to become a technological metropolis and there are pluses and minuses to that. It’s very sad in a way because this valley was probably the closest thing to the Garden of Eden at one point in time. No more. Why? Because now there are too many square miles of concrete and asphalt. Does that have something to do with the ruthlessness of the business? No. Then was it because a lot of people realized they could make a fast buck here? First of all, things happen in increments, right? They don’t happen all at once. But people didn’t start these companies just to make a buck. I mean they started businesses with very romantic notions. It wasn’t just money. Nobody would say to himself, “Jesus, I think next Monday my friend and I are going to start a company so we can make lots of money.” No, but you think you’d be the same person today if your aggregate wealth consisted of one Volkswagen van? Obviously not. But that’s sort of a meaningless question. No, what I’m suggesting is that some people started companies because they were fascinated by the technology and a lot of other people started companies because they thought they could make a buck. Not the really great ones. Then what, if not money, defines the social pecking order out there? A combination of having pioneered something significant, and having built a thriving organization. The right company, that’s very important. In other words, even though some people have come out with neat products, if their company is perceived as a sweatshop or a revolving door, it’s not considered much of a success. Remember, the role models were Hewlett and Packard. Their main achievement was that they built a company. Nobody remembers their first frequency-counter, their first audio oscillator, their first this or that. And they sell so many products now that no one person really symbolizes the company.But what does symbolize Hewlett-Packard is a revolutionary attitude toward people, a belief that people should be treated fairly, that the differentiation between labor and management should go away. And they built a company and they lived that philosophy for 35 or 40 years and that’s why they’re heroes. Hewlett and Packard started what became the Valley. What skill do you think you have that allowed you to succeed? Well, you know, there were probably a lot of guys out there sitting in garages who thought, “Hmmm, let’s make a computer.” Why did we succeed? I think we were very good at what we did and we surrounded ourselves by very fine people. See, one of the things you have to remember is that we started off with a very idealistic perspective—that doing something with the highest quality, doing it right the first time, would really be cheaper than having to go back and do it again. Ideas like that. Can you be more specific? No, because that’s as specific as you get. Just general feelings about things, without any experience to back them up. They’re not based on, say, “Gee, look what happened to Hewlett-Packard”? No, no, no. We just sort of had these feelings. We started to run the company our way and it turned out things we were doing worked. We never lost sight of how our idealism could translate into tangible results that were also acceptable in a more traditional sense. You seem to have postured Apple’s image as the last crusade against the IBM-ization of the world. You know, that’s not quite right. If you froze technology today, it would be like freezing the automobile in 1915: you wouldn’t have automatic transmissions, you wouldn’t have electric starters. You don’t want to see IBM freeze the standards.But the flip side of that is that this industry has matured more rapidly than any other industry in the history of business and there are suddenly things that billion-dollar class companies can do that $100 million or $10 million class companies can’t do. For example, Apple will spend the better part of $100 million this year on research and development, and will spend the better part of $100 million on advertising. Now, IBM will spend that on personal computers alone. And if IBM and Apple invest that money wisely, it will be very difficult for the $10 million or even the $100 million class companies to keep up. Is there any company besides Apple and IBM that could keep up? AT&T obviously could choose to invest $200 million. General Electric could obviously choose to invest $200 million. The question is will they? Will they take the risk? Do they see promise? Do they have the passion to innovate? Out here there are traffic jams at 7:30 in the morning, even though people in the Valley have this reputation of being laid back… Oh right, people work very hard here. And I think you have to differentiate between a true workaholic, and somebody who loves his work and wants to work because he gets true satisfaction and enjoyment out of it. The perfect example is the software people who don’t get in until noon but they work until two in the morning. And they like it. Don’t you ever wake up in the morning and say to yourself, “There’s no reason for me to work another day for the rest of my life. I’ve made enough money so that I can just have a good time, do anything I want…” Well yeah, I suppose some people say that. But the question ignores all the reasons why people do things here. The money is literally a 25 percent factor, at most. The journey is the reward. It’s not just the accomplishment of something incredible. It’s the actual doing of something incredible, day in and day out, getting the chance to participate in something really incredible. I mean that’s the feeling we’ve had. I think everyone on the Mac team would have paid to come to work every day. I don’t say this snidely, but that’s a very easy thing for somebody to say who owns 6.9 million shares of Apple stock. Then go ask the rest of them. Do you know how many places Burrell [Smith, Mac’s hardware designer] and Andy [Hertzfeld, the operating-system designer] could go to tomorrow if they wanted to? Sure, they have a lot of money, and they could go work anywhere else they wanted to. But here you have a guy like Andy who spends I don’t know how many thousands of dollars renovating his kitchen, and he never cooks a meal in it! So what? What’s the point? Well, I’m talking about quality of life. One of the things that strikes me about Silicon Valley is that nobody seems to do anything but work. A lot of people will probably take this analogy wrong, but there are a good number of people who would have loved to have had even the most menial job on the Manhattan Project in Los Alamos and watch those brilliant people work together for that period of time. There are also a lot of people who want to join the Marines. No, no. There are moments in history which are significant and to be a part of those moments is an incredible experience. In other words, there are more important things than cooking in your own kitchen. I’m simply suggesting there’s a very interesting relationship in this Valley between work, money and personal life. Well, I don’t know what this Valley is. I work at Apple. I’m there so many hours a day and I don’t visit other places; I’m not an expert on Silicon Valley. What I do see is a small group of people who are artists and care more about their art than they do about almost anything else. It’s more important than finding a girlfriend, it’s more important… than cooking a meal, it’s more important than joining the Marines, it’s more important than whatever. Look at the way artists work. They’re not typically the most “balanced” people in the world. Now, yes, we have a few workaholics here who are trying to escape other things, of course. But the majority of people out here have made very conscious decisions; they really have. How quickly did you become a millionaire? When I was 23, I had a net worth of over a million dollars. At 24, it was over $10 million, and at 25, it was over $100 million. How did that affect the quality of your dates? My dates? Nothing really changed, because I don’t think about it that much. The people who think about those things a lot I never meet. Sometimes it’s got to be overwhelming to you that about 10 years ago you were at some festival on the Ganges river and now you’re running a billion-dollar corporation. Yeah, well, OK. What do you want me to say? Give me the possible responses, I’ll pick one. Well, I think there are an infinite number of responses. I’m simply suggesting that it somehow relates to Andy Hertzfeld never cooking a meal in his own kitchen. I don’t know what it relates to. Andy and I are roughly the same age, right? There’s a whole set of things that neither of us has ever done before, you know: neither of us has ever been married before; neither of us has come home at 5 o’clock and hung out by the pool. I mean, there’s a whole set of things. And we’ve chosen, at least in part, to spend a large number of hours and a large amount of our energy in a different way, making a computer.Now other people make things too. Other people put their energy into having a family, which I think is wonderful—I’d love to do it myself—or they put their energy into making a career or making this or making that. We’ve put our energy into making Macintosh over the last two years, which we thought would make a difference to a group of people that we wouldn’t ever really know, but we’ll walk into classrooms and see 50 Macintoshes and we’ll feel good. When Apple was starting up, were people always conscious of stock options? Oh sure. Well, not as much as they are now. Apple was the first company that gave stock options to almost everybody, every engineer, every middle-level marketing guy and so on. It strikes me that very few people cash in their chips here. Some do and some don’t. One of the trends I’ve seen is that once things seem a little stable, once the company has made it over some critical hurdles, some of the people will sell enough of their stock to buy a house or do something which may not mean that much to them, but will mean something, let’s say, to their spouse or to their family, which hasn’t seen enough of them for the last two years. They’ll want to do something to sort of say, “Hey, you know, what I’ve been working on really has been valuable, it really has been worth it and besides my loving it, it has produced something for the family or for both of us." A lot of analysts and venture capitalists I’ve talked to think you’re absolutely crazy to still have as much Apple stock as you have. Is it a matter of pride? Well, it’s a lot of things. Certainly, a year ago the stuff was worth, you know, more than twice as much as it’s worth now. Last year, it decreased by about $200 million. I’m the only person I know that’s lost a quarter of a billion dollars in one year. How does that make you feel? It’s very character building!