Steve Jobs

As Jobs walked the floor of the Personal Computer Festival, he came to the realization that Paul Terrell of the Byte Shop had been right: Personal computers should come in a complete package. The next Apple, he decided, needed to have a great case and a built-in keyboard, and be integrated end to end, from the power supply to the software. “My vision was to create the first fully packaged computer,” he recalled. “We were no longer aiming for the handful of hobbyists who liked to assemble their own computers, who knew how to buy transformers and keyboards. For every one of them there were a thousand people who would want the machine to be ready to run.”

In their hotel room on that Labor Day weekend of 1976, Wozniak tinkered with the prototype of the new machine, to be named the Apple II, that Jobs hoped would take them to this next level. They brought the prototype out only once, late at night, to test it on the color projection television in one of the conference rooms. Wozniak had come up with an ingenious way to goose the machine’s chips into creating color, and he wanted to see if it would work on the type of television that uses a projector to display on a movie-like screen. “I figured a projector might have a different color circuitry that would choke on my color method,” he recalled. “So I hooked up the Apple II to this projector and it worked perfectly.” As he typed on his keyboard, colorful lines and swirls burst on the screen across the room. The only outsider who saw this first Apple II was the hotel’s technician. He said he had looked at all the machines, and this was the one he would be buying.

To produce the fully packaged Apple II would require significant capital, so they considered selling the rights to a larger company. Jobs went to Al Alcorn and asked for the chance to pitch it to Atari’s management. He set up a meeting with the company’s president, Joe Keenan, who was a lot more conservative than Alcorn and Bushnell. “Steve goes in to pitch him, but Joe couldn’t stand him,” Alcorn recalled. “He didn’t appreciate Steve’s hygiene.” Jobs was barefoot, and at one point put his feet up on a desk. “Not only are we not going to buy this thing,” Keenan shouted, “but get your feet off my desk!” Alcorn recalled thinking, “Oh, well. There goes that possibility.”

In September Chuck Peddle of the Commodore computer company came by the Jobs house to get a demo. “We’d opened Steve’s garage to the sunlight, and he came in wearing a suit and a cowboy hat,” Wozniak recalled. Peddle loved the Apple II, and he arranged a presentation for his top brass a few weeks later at Commodore headquarters. “You might want to buy us for a few hundred thousand dollars,” Jobs said when they got there. Wozniak was stunned by this “ridiculous” suggestion, but Jobs persisted. The Commodore honchos called a few days later to say they had decided it would be cheaper to build their own machine. Jobs was not upset. He had checked out Commodore and decided that its leadership was “sleazy.” Wozniak did not rue the lost money, but his engineering sensibilities were offended when the company came out with the Commodore PET nine months later. “It kind of sickened me. They made a real crappy product by doing it so quick. They could have had Apple.”

The Commodore flirtation brought to the surface a potential conflict between Jobs and Wozniak: Were they truly equal in what they contributed to Apple and what they should get out of it? Jerry Wozniak, who exalted the value of engineers over mere entrepreneurs and marketers, thought most of the money should be going to his son. He confronted Jobs personally when he came by the Wozniak house. “You don’t deserve shit,” he told Jobs. “You haven’t produced anything.” Jobs began to cry, which was not unusual. He had never been, and would never be, adept at containing his emotions. He told Steve Wozniak that he was willing to call off the partnership. “If we’re not fifty-fifty,” he said to his friend, “you can have the whole thing.” Wozniak, however, understood better than his father the symbiosis they had. If it had not been for Jobs, he might still be handing out schematics of his boards for free at the back of Homebrew meetings. It was Jobs who had turned his ingenious designs into a budding business, just as he had with the Blue Box. He agreed they should remain partners.

It was a smart call. To make the Apple II successful required more than just Wozniak’s awesome circuit design. It would need to be packaged into a fully integrated consumer product, and that was Jobs’s role.

He began by asking their erstwhile partner Ron Wayne to design a case. “I assumed they had no money, so I did one that didn’t require any tooling and could be fabricated in a standard metal shop,” he said. His design called for a Plexiglas cover attached by metal straps and a rolltop door that slid down over the keyboard.