Steve Jobs

one such session. Jobs would apologize and say he understood. But then he would lapse again. “It’s simply who I am,” he would say.
    One thing that did mellow was his attitude toward Bill Gates. Microsoft had kept its end of the bargain it made in 1997, when it agreed to continue developing great software for the Macintosh. Also, it was becoming less relevant as a competitor, having failed thus far to replicate Apple’s digital hub strategy. Gates and Jobs had very different approaches to products and innovation, but their rivalry had produced in each a surprising self-awareness.
    For their All Things Digital conference in May 2007, the
Wall Street Journal
columnists Walt Mossberg and Kara Swisher worked to get them together for a joint interview. Mossberg first invited Jobs, who didn’t go to many such conferences, and was surprised when he said he would do it if Gates would. On hearing that, Gates accepted as well.
    Mossberg wanted the evening joint appearance to be a cordial discussion, not a debate, but that seemed less likely when Jobs unleashed a swipe at Microsoft during a solo interview earlier that day. Asked about the fact that Apple’s iTunes software for Windows computers was extremely popular, Jobs joked, “It’s like giving a glass of ice water to somebody in hell.”
    So when it was time for Gates and Jobs to meet in the green room before their joint session that evening, Mossberg was worried. Gates got there first, with his aide Larry Cohen, who had briefed him about Jobs’s remark earlier that day. When Jobs ambled in a few minutes later, he grabbed a bottle of water from the ice bucket and sat down. After a moment or two of silence, Gates said, “So I guess I’m the representative from hell.” He wasn’t smiling. Jobs paused, gave him one of his impish grins, and handed him the ice water. Gates relaxed, and the tension dissipated.
    The result was a fascinating duet, in which each wunderkind of the digital age spoke warily, and then warmly, about the other. Most memorably they gave candid answers when the technology strategist Lise Buyer, who was in the audience, asked what each had learned fromobserving the other. “Well, I’d give a lot to have Steve’s taste,” Gates answered. There was a bit of nervous laughter; Jobs had famously said, ten years earlier, that his problem with Microsoft was that it had absolutely no taste. But Gates insisted he was serious. Jobs was a “natural in terms of intuitive taste.” He recalled how he and Jobs used to sit together reviewing the software that Microsoft was making for the Macintosh. “I’d see Steve make the decision based on a sense of people and product that, you know, is hard for me to explain. The way he does things is just different and I think it’s magical. And in that case, wow.”
    Jobs stared at the floor. Later he told me that he was blown away by how honest and gracious Gates had just been. Jobs was equally honest, though not quite as gracious, when his turn came. He described the great divide between the Apple theology of building end-to-end integrated products and Microsoft’s openness to licensing its software to competing hardware makers. In the music market, the integrated approach, as manifested in his iTunes-iPod package, was proving to be the better, he noted, but Microsoft’s decoupled approach was faring better in the personal computer market. One question he raised in an offhand way was: Which approach might work better for mobile phones?
    Then he went on to make an insightful point: This difference in design philosophy, he said, led him and Apple to be less good at collaborating with other companies. “Because Woz and I started the company based on doing the whole banana, we weren’t so good at partnering with people,” he said. “And I think if Apple could have had a little more of that in its DNA, it would have served it extremely well.”

CHAPTER THIRTY-SIX

     

THE iPHONE
     
    Three Revolutionary Products in One
     
    An iPod That Makes Calls
    By 2005 iPod sales were skyrocketing. An astonishing twenty million were sold that year, quadruple the number of the year before. The product was becoming more important to the company’s bottom line, accounting for 45% of the revenue that year, and it was also burnishing the hipness of the company’s image in a way that drove sales of Macs.
    That is why Jobs was worried. “He was always obsessing about what could mess us up,” board member Art Levinson