Introductions are really funny.

They paid me $60 so I wore a tie.

How many people, how many of you are 36 years, older than 36 years old?

Yeah.

You were born pre-computer.

The computer is 36 years old.

And there's something sort of, I think that there's going to be a little slice in the timeline of history as we look back.

Pretty meaningful slice right there.

A lot of you are products of the television generation.

I'm pretty much a product of the television generation.

But to some extent starting to be a product of the computer generation.

And the kids growing up now are definitely products of the computer generation.

And in their lifetimes the computer will become the predominant medium of communication just as the television took over from the radio, took over from even the book.

Boy, I'll talk about anything you want to talk about today.

I have about 15 or 20 minutes of stuff that I just wanted to cover really quickly.

And then whatever you want to talk about we can talk about.

How's that?

Yeah?

How many of you own an Apple?

Any?

Or just any personal computer?

Uh-oh.

How many of you have used one or seen one?

Anything like that?

Good.

Okay.

Let's start off with what is a computer?

What is a computer?

It's really simple.

It's just a simple machine.

But it's a new type of machine.

The gears, the pistons have been replaced with electrons.

How many of you have ever seen an electron?

That's the problem with computers.

Is that you can't get your hands on the actual things that are moving around.

You can't see them.

And so they tend to be very intimidating because in a very small space there's billions of electrons running around and we can't really get a hold on exactly what they look like.

Computers are very adaptive.

It's a very adaptive machine.

We can move the electrons around differently to different places depending upon the current state of affairs, the results of the last time we moved the electrons around.

So if you were here last night and you heard about the brain and how it's very adaptive, a computer is in the same way very, very adaptive.

Second thing about a computer, it's very new.

It was invented 36 years ago in 1947.

The world's first degree in computer science offered by a university, which was the University of California at Berkeley, and it was a master's degree, was offered in 1968, which means the oldest person that has a degree in computer science is 39 years old and the average age of professionals at Apple is under 30.

So it's a field that's dominated by fairly young people.

Third thing about computers, they're really dumb.

They're exceptionally simple, but they're really fast.

The raw instructions that we have to feed these little microprocessors, even the raw instructions that we have to feed these giant Cray-1 supercomputers are the most trivial of instructions.

They're get some data from here, get a number from here, fetch a number, add two numbers together, test to see if it's bigger than zero, go put it over there.

It's the most mundane thing you could ever imagine.

But the key thing about it is that let's say I could move 100 times faster than anyone in here.

In the blink of your eye, I could run out there and I could grab a bouquet of fresh spring flowers or something and I could run back in here and I could snap my fingers and you'd all think I was a magician or something.

And yet I was basically doing a series of really simple instructions, moving, running out there, grabbing some flowers, running back, snapping my fingers, but I could just do them so fast that you would think that there was something magical going on.

It's the exact same way with the computer.

It can go grab these numbers and add them together and throw them over here at the rate of about a million instructions per second.

And so we tend to think there's something magical going on when in reality there's just a series of these simple instructions.

Now, what we do is we take these very, very simple instructions and we, by building a collection of these things, build a higher level instruction.

So instead of saying turn right, left foot, right foot, left foot, right foot, extend hand, grab flowers, run back, I can say, could you go get some flowers?

Could you pour a cup of coffee?

And we have started in the last 20 years to deal with computers in higher and higher levels of abstraction.

But ultimately these levels of abstraction get translated down into these stupid instructions that run really fast.

Let's look at the brief history of computers.

The best way to understand it is probably an analogy.

Take the electric motor.

The electric motor was first invented in the late 1800s.

And when it was first invented, it was only possible to build a very, very large one, which meant that it could only be cost justified for very large applications.

And therefore electric motors did not proliferate very fast at all.

But the next breakthrough was when somebody took one of these large electric motors and they ran a shaft through the middle of a factory and through a series of belts and pulleys shared the horsepower of this one large electric motor on 15 or 20 medium-sized workstations, thereby allowing one electric motor to be cost justified on some medium-scale tasks.

And electric motors proliferated even further then.

But the real breakthrough was the invention of the fractional horsepower electric motor.

We could then bring the horsepower directly to where it was needed and cost justify it on a totally individual application.

And I think there's about 55 or so fractional horsepower motors now in every household.

If we look at the development of computers, we see a real parallel.

The first computer was called the ENIAC in 1947.

It was developed particularly for ballistic military calculations.

It was giant.

Hardly anyone got a chance to use it.

The real breakthrough, the next real breakthrough was in the 60s with the invention of what was called time sharing.

And what we did was we took one of these very large computers and we shared it.

Since it could execute so many instructions so quickly, we'd run some on Fred's job over here and then we'd run some on Sally's job and we'd run some on Don's job and we'd run some on Susie's job.

And we'd share this thing and it was so fast that everyone would think they had the whole computer to themselves.

Time sharing was what really started to proliferate computers in the 60s.

And most of you, if you've used computer terminals connected with some umbilical cord to some large computer somewhere else, that's time sharing.

That's what got computers on college campuses in large numbers.

The reason Apple exists is because we stumbled on to fractional horsepower computing five years before anybody else.

That's the reason we exist.

We took these microprocessor chips, which is sort of a computer on a chip, and we surrounded it with all the other stuff you need to interact with a computer.

And we made a computer that was about 13 pounds.

And people would look at it and they'd say, well, where's the computer?

This is just the terminal.

And we'd say, no, that is the computer.

And after about five minutes of repeating this, finally a light bulb would go on in their minds.

And they'd decide if they didn't like it, they could throw it out the window or run over it with their car.

But that this was the entire computer.

That's why we exist.

Fractional horsepower computing.

This fractional horsepower computing has created a revolution.

It was invented in 1976, the first personal computer.

This year, in 1983, the industry is going to ship over three million of the little buggers.

Three million.

By 1986, we're going to ship more computers than automobiles in this country.

And let me digress for a minute.

One of the reasons I'm here is because I need your help.

If you've looked at computers, they look like garbage.

All the great product designers are off designing automobiles or they're off designing buildings.

But hardly any of them are designing computers.

And if we take a look, we're going to sell those three million computers this year.

We're going to sell those ten million computers in 1986, whether they look like a piece of shit or they look great.

It doesn't really matter because people are going to just suck this stuff up so fast that they're going to do it no matter what it looks like.

And it doesn't cost any more money to make it look great.

There are going to be these objects, this new object, that's going to be in everyone's working environment and is going to be in everyone's educational environment and is going to be in everyone's home environment.

And we have a shot at putting a great object there.

Or if we don't, we're going to put one more piece of junk object there.

By an 86, 87 pick a year, people are going to be spending more time interacting with these machines than they do interacting with their big automobile machines today.

People are going to be spending two, three hours a day sometimes interacting with these machines, longer than they spend in a car.

And so the industrial design, the software design, and how people interact with these things certainly must be given the consideration that we give automobiles today, if not a lot more.

And if you take a look, what we've got is we've got a situation where most of the automobiles are not being designed in the United States, Europe, Japan.

Televisions, audio electronics, watches, cameras, bicycles, calculators, you name it, most of the objects of our life are not designed in America.

We've blown it.

We've blown it from an industrial point of view because we've lost the markets to the foreign competitors.

We've also blown it in a design point of view.

And I think we have a chance, focusing on this new computing technology, meeting people in the 80s, the fact that computers and society are out on a first date in the 80s, we have a chance to make these things beautiful and we have a chance to communicate something through the design of the objects themselves.

In addition to that, we're going to spend over $100 million in the next 12 months on media advertising.

Apple alone, IBM will spend at least an equivalent amount.

And we generate tens of millions of dollars' worth of brochures, posters, more than the auto industry, again, as a comparison.

And this stuff can either be great or it can be lousy.

And we need help.

We really, really need your help.

Okay, let's go back to this revolution.

What is happening?

What's happening is the personal computer is a new medium of communication, one of the media.

So what's a media?

It's a technology of communication.

A book is a medium, telephone, radio, television.

These are mediums of communication.

And each medium has pitfalls to it, has shortcomings, has boundaries which you can't cross, but it also generally has some new unique opportunities.

The neat thing is that each medium shapes not only the communication that goes through it, but it shapes the process of communication.

Perfect example.

If you compare the telephone to what we're seeing now in electronic mail, where we link a bunch of computers together and we can send messages to an electronic mailbox, which people can then receive at their leisure, we see that, indeed, in one sense we're sending voice through these wires and in another sense we're sending ones and zeros through these wires.

So the content that's traveling through the medium is certainly different.

But the most interesting thing that's different is the process of communication.

When I talk on a telephone with anyone, we both have to be on the phone at the same time.

When I'm working or when I want to send something to somebody with a computer terminal, I want to do a drawing and zip it over and put it in their mailbox, they don't need to be there.

They can retrieve it at 12 a.m. in the morning.

They can retrieve it three days later.

They can be in New York and retrieve it.

One of these days when we have portable computers with radio links, they can be walking around Aspen and retrieve it.

And so the process of communication itself changes as the mediums evolve.

So what I'm claiming is that computers are a medium and that personal computers are a new and different medium from large computers.

What happens when a new medium enters the scene is that we tend to fall back into old media habits.

And let's look at a few transitions from one medium to another.

Radio to television, television to this incredible new interactive medium of the video disc.

If you go back and you look at the first television shows, they're basically radio shows with a television camera pointed at them.

And it took us the better part of the 50s to really understand how television was going to come into its own as its own medium.

And I really think the first time that a lot of people were shook into realizing that television had come of age was the JFK funeral.

The nation, a lot of the world, experienced the JFK funeral in their living room at a level of intensity that wouldn't have been possible with radio.

I think another more upbeat example was the Apollo landing.

That experience was not possible with the previous medium.

And yet it took us the better part of 20 years for that one to really evolve.

Let's look at the next transition.

We have this optical video disc which can store 55,000 images on a side or an hour of video randomly accessible.

What are we using it for?

Movies.

We're dropping back into the old media habits.

And there's a few experiments, though, that are starting to happen and you start to believe that five years, ten years from now, that's going to come into its own.

A neat experiment happened right here in Aspen.

MIT came out to Aspen about four or five years, I think about four years ago.

And they had this truck with this camera on it and they went down every single street, photographed every single intersection in every single street in Aspen.

They photographed all the buildings.

And they've got this computer and this video disc hooked up together and on the screen you see yourself looking down a street and you can touch the screen and there's some arrows on the screen and you can touch walk forward.

And all of a sudden it's just like you're walking forward in the street.