Steve is our co-founder of Apple computer he's the product Visionary for this industry and it's my pleasure now to reintroduce Steve [Music] Jobs good evening I'm Steve Jobs from Apple computer we're very glad to be here tonight it is [Music] 1958 IBM passes up the chance to buy a young fledgling company that has just invented a new technology called xerography 2 years later Xerox is born and IBM has been kicking themselves ever since it is 10 years later the late 60s digital Equipment Corporation and others invent the mini computer IBM dismisses the mini computer as too small to series Computing and therefore unimportant to their business deck grows to become a multi hundred million Corporation before IBM finally enters the mini computer Market here is Apple's business model in a nutshell sell Hardware sell lots of it it is very simple and there are notable deviations away from that but bottom line that's what apple is trying to do sell Hardware sell lots of it take their hardware and put it in your hands this is notable in the tech industry because it's Unique no one else is doing it right in all of the platform battles that Apple has done in every era of computing no one else has replicated their completely vertically integrated model of selling their Hardware to you in the way that they do Microsoft sold software Google sold Services meta cell Services Apple sells Hardware so you might wonder then why Apple spends all this time working on software if that's the case I mean everyone else who's a hardware manufacturer they basically just make Hardware right they do it differently Dell just made Hardware you know uh compact just made hardware and for the most part Samsung just made Hardware they just make Hardware none of those companies make and maintain an operating system which is notoriously hard to do and so if Apple's competitors sell software why not just sell software and if Apple wants to sell Hardware then why spend all this time working on software the answer is that Apple makes software that differentiates their Hardware that sells their hardware for them and the best example of this is the platform battle that preceded all the other ones their platform battle with the IBM PC it is now 10 years later the late 70s in 1977 Apple a young fledgling company on the west coast invents the Apple 2 the first personal computer as we know it today IBM dismisses the personal computer as too small to do serious Computing and therefore unimportant to their business you know it's easy to forget that there was a time before computers being commonplace right but in the' 70s the spreadsheet was invented on and Apple 2 and it really caught on with small businesses and the rest is history the only problem for Apple was that in IBM's eyes they had gone from a cute startup to a real threat in the market that IBM competed in who were these guys who thought that they could take over the small business Market the early 1980s 1981 Apple 2 has become the world's most popular computer and Apple has grown to a $300 million Corporation becoming the fastest growing company in American Business history with over 50 competitors buying for a share IBM enters the personal computer Market in November of 1981 with the IBM PC so IBM finally enters the PC market in competition with a new threat that the Apple 2 represented to them in the business machine Market the interesting thing for our purposes is that IBM like apple was used to making money on hardware sales but but there was a difference which was that IBM didn't make their own PC operating system they kind of threw the computer together and so instead they opted to license their operating system from a small startup in Seattle Washington that you might know of but both the IBM PC and the Apple 2 used command lines as their primary interface and that meant that the IBM PC would initially compete with the Apple 2 on speeds and feeds and so it did 1983 apple and IBM emerge as the industry's strongest competitors each selling approximately $1 billion worth of personal computers in 1983 each will invest greater than $50 million for research and development and another $50 million for television advertising alone in 1984 totaling almost one qu of a billion dollar combined Apple had a head start when it came to the software library for the Apple 2 remember the spreadsheet was invented on and Apple 2 but developers immediately recognized that the the hit that the IBM PC was going to be with business buyers and you see developers were drawn to the PC for its hardware for its speeds and feeds but businesses were drawn to the IBM PC for IBM's brand and their brand recognition developers recognize that and pretty soon developers belief in the platform became this self-fulfilling prophecy in some ways as they developed more software for the PC the more attractive it became for business buyers and the more businesses that bought those PCS the more developers made software for the platform and round and round and round and round the ShakeOut is in full swing the first major firm goes bankrupt with others teetering on the brink total industry losses for 1983 out Shadow even the combined profits of apple and IBM for personal computers it's is now 1984 IBM made a ton of money selling lots of Hardware this way in fact by 1984 IBM's revenue from the PC market was $4 billion more than twice that of apples and it was clear at this point that Apple was going to need a second act if it was going to survive it appears IBM wants it all apple is perceived to be the only hope to offer IBM a run for its money dealers initi welcoming IBM with open arms now fear an IBM dominated and controlled future they are increasingly turning back to Apple as the only force that can ensure their future Freedom this all finally gets us to how Apple actually sells its Hardware amidst an industry collapsing into this IBM Singularity Apple knew that the only way to differentiate their Hardware was with better software at this point customers weren't buying computers because because of the hardware itself necessarily they were buying them because of the apps that the developer ecosystem was building for the PCS right remember that virtuous cycle that IBM had created with their Brand Apple knew that they couldn't compete in the old Paradigm anymore the command line so instead they put a lot of time and energy into creating a new paradigm for computing the graphical user interface there have only been two Milestone products in our industry the Apple 2 in 1977 and the IBM PC in 1981 today one year after Lisa we are introducing the third industry Milestone product Macintosh the point of the Mac was to escape competition with IBM by innovating by creating a better product and yes that meant making better Hardware but it also meant making better software too you see the Mac was positioned to be a revolution for users which would in theory make it a revolution for developers too and that in a nutshell is how Apple operates right they sell you great Hardware by making great hardware and differentiating it with great software it's part of their founding meth actually and it's Trea them very well as a company in the long run the interesting thing about this strategy though organizationally is that it encourages you to hold very strong core values that put your customer's best interests at heart because your whole business rests on the idea that the experience of using your product is that much better than your competitions and that customers are willing to pay a premium to be catered to in that way that that is why the Mac was so important because it was the first time that apple had its hand forced to completely rethink the user experience in the face of competitors that were hot on their heels well that what you were saying about like being adults and and like sort of could be phras as being less Hasty being more conservative but really what really what it is is they're their Apple's implementation of everything as they said it reflects a value system apple has a value system that that informs their products every company does but the thing is the value system of many companies is unattractive to customers so they don't talk about it like their value system may be we need as much of your information as possible because we can sell ads better to it and they don't want to say that to you because it doesn't make for it doesn't make you want to buy their products but that is their value system and it is embodied in their product right one piece of this interest alignment is why Apple actually values design so much by the way from accessibility to innovation in Simplicity Apple's design values directly make the experience of using their products better which customers value which sells more Hardware what's more puzzling to a lot of people is why Apple values these other things that don't seem like they have a direct effect on the bottom line or on the product experience and the best example of this in my eyes is Apple's Dogg commitment to privacy and so Apple's value system and again it's not because Apple's magnanimous or whatever Apple's business model does not involve selling advertisement and collecting information about you to sell to advertisers that's why they do this it's not because apple is good and you say well maybe you know because Apple does have ad type businesses or whatever and we've talked about Apple's conflicts with their services business versus other ones or whatever but Apple's value system is such that telling it to customers is advantageous for their business yeah and do they live up to their value system all the time no what you call them on right but they do have a value system and if you look at the amount of work and the amount of sort of Technology they put into trying to implement artificial intelligence stuff within the bounds of their value system you see that it's not it's not like BS they're not blowing smoke up your butt they did a lot of work that they didn't have to do to make these features exist and fit within their value system and the problem is this thing that's sweeping the industry this whole AI Trend with LM or whatever a lot about it is counter to their value system of privacy and useful approach and making it easy for everybody and so they had Apple had to figure out how we have to get in on this train because you know it's it's it's the trend or whatever and apple doesn't always follow Trends but Apple sees the value the excuse me value to much they see they see how good these features could be so they said we can't ignore this we have to do something here but how do we take this thing that by its very nature consumes information indiscriminately gives bogus answers to things potentially harmful offensive things that we don't want how do we figure out how to provide the benefit to people while still keeping it within our values and I was honestly very impressed with the lengths that they have gone to to try to do what everyone else is doing and they in their catchup in a way that like I bet other companies are looking at this like they did what for what reason why would they do all that work to preserve privacy that doesn't make any sense you know to go fast and break thing but data Brokers often take all the break crumbs that they have gathered about you pair them with other data they can obtain and then share all of it with businesses who want to Market to you and they will frame this as a win-win here is how Epsilon one of the biggest data broker firms positions itself this is a person so is this here's another and another they all look and act different but people are fundamentally the same they all want respect protection and an easier time getting the things they need from Brands right the big three it's all in maso's famous hierarchy of needs people want their physiological needs met their safety accounted for and their search history handed over directly to the afflac duck you know there's this sentiment that I often hear about priv see in the modern world and it goes something like this I don't care if they're tracking me if you've got nothing to hide you have nothing to fear but here's the truth everyone's got things that they want to keep secret that they want to keep to themselves maybe it's as simple as your social security number maybe it's your sexuality maybe it's an abortion or another medical procedure it doesn't matter what it matters that everyone deserves to have certain parts of their Liv stay private some companies can and do draw up even more narrowly targeted lists like people with certain ailments or sexual preferences and then sell those lists to anyone who wants to buy them and what they can buy is pretty troubling WL bought thousands of names and addresses of local people with serious illnesses this group living in the 27607 zip code have diabetes these people in 27608 have cancer these residents of 27609 have high blood pressure and all of these locals battle depression this list is moms to be so we bought this data and it and it tells us you're pregnant yes and you are I am yeah I am 18 weeks that's pretty creepy isn't it I honestly did not think there could be a worse thing to ask a woman you don't know than are you pregnant but you are pregnant want to know who I paid to find out has certainly entered the chat and you know I get it I get it I get how it can feel hopeless I guess to maintain privacy in an economy that is so obsessed with tracking your every move but my hope here is to motivate you if just a little bit to understand how you're being tracked and why you might care about that even in the face of hopelessness more subtly I hope I'm giving you a little bit of an understanding of why Apple might care about your privacy remember Apple's business model is all about selling Hardware not ads their whole job is to differentiate that hardware and they see protecting your privacy as a great way to do that in a world where everyone else is willing to make a buck uh using your data especially with ads to Target you and you know how I know that actually because Tim Cook he never dropped bangers he never says anything like that that Steve Jobs would say in terms of like his animosity but when he does it's almost always about privacy right now users may not know whether the apps they use to pass the time to check in with their friends or to find a place to eat May in fact be passing on information about the photos they've taken the people in their contact list or location data that reflects where they eat sleep or pray privacy is hely important to us it's a it's a key value of our company as the paper shows it seems no piece of information is too private or personal to be surveilled monetized and aggregated into a 360 degree view of your life and we think that it will become increasingly important to more more people over time as they realize that intimate parts of their lives are are sort of in the open and being used for all sorts of things the end result of all of this is that you are no longer the customer you are the product the the big difference that we're doing is that we're holding that information on your device encrypted so it is yours I don't need to know what time you go to bed at night I don't want to read your email I don't want to read your text this is not information that we need to know that we want to know that we should know and it has never been so clear how it degrades our fundamental right to privacy first and our social fabric by consequence and so all of those things are held on your device and if and you're in assuming you want to you can encrypt those yourself and I don't have access to them as I've said before if we accept as normal and unavoidable that everything in our lives can be aggregated in Soul then we lose so much more than data we lose the freedom to be human and it's that last one that actually sticks out to me in particular because there's another more nihilistic statement that I often hear about privacy in the modern world one that goes like this privacy he is dead everything about us is already out there so why bother trying to protect him you know it feels impossible to stay private with all of these companies working so hard to get as deal detailed a picture of you as they can on your own it's basically you versus thousands of very smart Engineers working as hard as they can to track your every MO to me though that's the reason why I love that Apple cares about my privacy I trust their extremely smart Engineers to do the best that they can to protect me because they've made it their best business interest to do so after all your phone is one of the most personal things that you own it contains vast amounts of uh very sensitive information about you and it tells you what's in store for tomorrow and I want my data to be mine and we're here today because the path of least resistance is rarely the path of wisdom if a business is built on misleading users on data exploitation on choices that are no choices at all then it does not deserve our praise it deserves reform we should not look away from the bigger picture at a moment of rampant disinformation and conspiracy theories Juiced by algorithms we can no longer turn a blind eye to a theory of technology that says all engagement is good engagement the longer the better and all with the goal of collecting as much data as possible too many are still asking the question how much can we get away away with when they need to be asking what are the consequences what are the consequences of prioritizing conspiracy theories and violent incitement simply because of the high rates of Engagement what are the consequences of not just tolerating but rewarding content that undermines public trust in life-saving vaccinations what are the consequences of seeing thousands of users join extremist groups and then perpetuating an algorithm that recommends even more it is long past time to stop pretending that this approach doesn't come with a cost of polarization of lost trust and yes of violence a social dilemma cannot be allowed to become a social catastrophy you know I didn't start off with all of the fuzzy stuff but here's the the real thesis of this whole thing Apple's commitment to privacy runs much much deeper than the bottom line I began to realize that there is in the text that we have the 10 amendments that we have a deep structure the same kind of deep structure that you'd find in a poem take for example the First Amendment First Amendment freedom of religion speech press assembly and petition it consists of six ideas Congress shall make no law respecting an establishment of religion one or prohibiting the free exercise thereof two or Bridging the freedom of speech or of the press or the right of the people peaceably to assemble five and to petition the government for a redress of grievances six it's only 45 words long could have been written on the back of an envelope these days the first amendment is wrapped up in all kinds of thorny stuff like kneeling at football games and hate speech and money in politics but if you just step back from all of that and you read the text of the First Amendment and you really try to think about what the words are trying to say you find that the logic behind it is kind of beautiful at its core 1984 is a book about independent thought it was no accident that Apple chose it as a theme for the launch of the match IBM wants it all and is aiming its guns on its last obstacle to Industry control Apple will big blue dominate the entire computer industry the entire Information Age was George Orwell right Orwell was a Democratic Socialist which is why so many of his Works addressed totalitarianism and uh why 1984 was concerned with mass surveillance privacy it turns out is a necessary prere it to Independent thought and independent thought is a necessary prerequisite to a healthy democracy but the order of the words in the first amendment is the life cycle of a democratic idea so those first two Clauses Congress shall make no longw respecting an establishment of religion or prohibiting the free exercise thereof create a free space inside your mind to think and believe and should wish that's the founder saying that space inside your head where you think your thought that's sacred the government can't touch that without their free space there can be no self-government so that's the first idea the freedom of your thoughts Apple came into being around the radical countercultural ideas of the 60s and70s its DNA is wound around the idea that computers were meant to be great tools of individualism and Rebellion that computers needed to be easy to use so that everyone could harness their power that a computer needed to break free from the centralized systems of control and surveillance that previously existed and that a comp if a computer wasn't yours it was dangerous that a personal computer was profound because it was just that personal hello I am magos it sure is great to get out of that bag and customed as I am to public speaking i' like to share with you a maxim I thought of the first I am and I am never trust a computer you can't but right now I my to sit back and listen so it is with consider a v ride that I introduce a man who's been like a father to be Steve Jobs they're with me here but there is a long and storyed history of handles on Apple Computers the very first Mac had one the iMac the computer that literally saved the company and cemented Johnny I as a design Visionary that would define literally the entire Tech design for many decades to come had one later Mac Pros would also have them too and Johnny I once explained the reason for the handle he said this back then people weren't comfortable with technology if you're scared of something then you won't touch it I could see my mom being scared scared to touch it so I thought if there's this handle on it it makes a relationship possible it's approachable it's intuitive wait wait ah damn you're always sneaking up on surprise it's your new computer W it's blue yeah and it's a lot more fun than your old one it's got this handle so it's like a little purse and let me tell you a few other really great things about this one of the most incredible it has a handle and I got you one of these Z jobs so you start backing up your work now well I don't even know how to use that and I don't need it I have a i my own system works just fine oh yeah right you sure about that yeah I am I'm not ready for a new computer I'm still waiting to hear back about my old one my my my whole life is on that computer and that's just it isn't it Apple's whole mission is about making a computer that's for the rest us a computer that's so approachable that you'll carry it around a computer that's yours a computer you can lift but notably most of the other big Tech Giants out there once you using computers that are theirs I guess is the best way I can put it Microsoft wants you to use and write software that runs on their main frame Google does too so does Amazon so does Facebook Facebook and Oracle the world we live in is one of computers that we can't lift and that it turns out is emblematic of the Privacy landscape that we live in as well I think that gets at the core of the whole thing in my eyes all of these other companies have built businesses whose core interests are in keeping computing power centralized rather than Distributing that power to the individual and apple on the other hand has it the exact opposite way their core interest is getting computing power to you and then protecting your trust in the computer as it fits deeper and deeper into your life will the future belong to the innovations that make our lives better more fulfilled and more human or will it belong to those tools that prize our attention to the exclusion of everything else compounding our fear and aggregating extremism to serve ever more invasively targeted ads over all other Ambitions at Apple we made our choice a long time ago we believe that ethical technology is technology that works for you it's technology that helps you sleep not keeps you up that tells you when you've had enough that gives you space to create or draw or write or learn not fres just one more time it's technology that can fade into the background when you're on a hike or going for a swim but is there to warn you when your heart rate spikes or help you when you've had a nasty fall and that all of this always puts privacy and security first because no one needs to trade away the rights of their users to deliver a great [Music] product call us naive but we still believe that technology made by people for people and with people's well-being in mind is too valuable a tool to abandon we still believe that the best measure of technology is the lives it improves we are not perfect we will make mistakes that's what makes us human but our commitment to you now and always is that we will keep Faith with the values that have inspired our Pro products from the very beginning because what we share with the world is nothing without the trust our users have in it so that's why the Mac has a handle to help you invite the computer into your life to make the computer approachable but more importantly to remind you about how your computer was independent from the main frame how it was radically as radically individual as you are the idea of powering users to Express themselves to get more done to have a place to explore their thoughts is not just some slick marketing slogan it is as foundational a value to the company as it is to America itself and honoring individuality was what the personal computer movement was for in the first place it's why the Mac was created in the first place too to escape the tyranny of big blue to preserve freedom of thought the most precious part of individuality to amplify that indiv individuality to the point where the best ideas are shared and shared into a world and maybe make a little dent in our democracy if not the universe [Music]
2024-06-28