Early years

Jobs was born in San Francisco[1] and was adopted by Paul and Clara (née Hagopian) Jobs of Mountain View, Santa Clara County, California who named him Steven Paul. His biological parents, Joanne Carole Schieble and Syrian Abdulfattah Jandali —a graduate student who later became a political science professor[11]— later married and gave birth to Jobs' sister, the novelist Mona Simpson.

Jobs attended Cupertino Middle School and Homestead High School in Cupertino, California,[9] and frequented after-school lectures at the Hewlett-Packard Company in Palo Alto, California. He was soon hired there and worked with Steve Wozniak as a summer employee.[12] In 1972, Jobs graduated from high school and enrolled in Reed College in Portland, Oregon. Although he dropped out after only one semester,[13] he continued auditing classes at Reed, such as one in calligraphy. "If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts," he said.[14]

In the autumn of 1974, Jobs returned to California and began attending meetings of the Homebrew Computer Club with Steve Wozniak.[15] He took a job as a technician at Atari, a manufacturer of popular video games, with the primary intent of saving money for a spiritual retreat to India. During the 1960s, it had been discovered by phone phreakers (and popularized by John Draper) that a half taped-over toy-whistle included in every box of Cap'n Crunch breakfast cereal was able to reproduce the 2600 hertz supervision tone used by the AT&T long distance telephone system. After reading about it and later meeting with John Draper, Jobs and Wozniak went into business briefly in 1974 to build "blue boxes" that allowed illicit free long distance calls.

Jobs then backpacked around India with a Reed College friend (and, later, first Apple employee), Daniel Kottke, in search of philosophical enlightenment. He came back with his head shaved and wearing traditional Indian clothing. During this time, Jobs experimented with LSD, calling these experiences "one of the two or three most important things he has done in his life."[16] He has stated that people around him who did not share his countercultural roots could not understand certain aspects of his thinking.[16]

He returned to his previous job at Atari and was given the task of creating a circuit board for the game Breakout. According to Atari Founder Nolan Bushnell, Atari had offered US$100 for each chip that was reduced in the machine. Jobs had little interest or knowledge in circuit board design and made a deal with Wozniak to split the bonus evenly between them if Wozniak could minimize the number of chips. Much to the amazement of Atari, Wozniak reduced the number of chips by 50, a design so tight that it was impossible to reproduce on an assembly line. At the time, Jobs told Wozniak that Atari had only given them US$700 (instead of the actual US$5000) and that Wozniak's share was thus US$350.[17][18][19][20][21][22]
Steve Jobs and Bill Gates at D5
Steve Jobs and Bill Gates at D5

Beginnings of Apple Computer

See also: History of Apple

When twenty-one-year-old Jobs saw a computer that Wozniak had designed for his own use, he convinced Wozniak to assist him and started a company to market the computer. Apple Computer Co. was founded as a partnership on April 1, 1976. Though their initial plan was to sell just printed circuit boards, Jobs and Wozniak ended up creating a batch of completely assembled computers and thus entered the personal computer business. The first personal computer Jobs and Wozniak introduced, the Apple I, sold for US$666.66, a number Wozniak came up with because he liked repeating digits.[18] Its successor, the Apple II, was introduced the following year and became a huge success, turning Apple into an important player in the nascent personal computer industry. In December 1980, with a successful IPO, Apple Computer became a publicly traded corporation, making Jobs a multi-millionaire.

As Apple continued to expand, the company began looking for an experienced executive to help manage its expansion. In 1983, Jobs lured John Sculley away from Pepsi-Cola, to serve as Apple's CEO, challenging him, "Do you want to spend the rest of your life selling sugared water, or do you want a chance to change the world?"[23][24] The following year, Apple set out to do just that, starting with a Super Bowl television commercial titled, "1984." Two days later at Apple's annual shareholders meeting on January 24, 1984, an emotional Jobs introduced the Macintosh to a wildly enthusiastic audience; Andy Hertzfeld described the scene as "pandemonium."[25] The Macintosh became the first commercially successful computer with a graphical user interface, although it was heavily influenced by Xerox PARC. The development of the Mac was started by Jef Raskin, and eventually taken over by Jobs.

While Jobs was a persuasive and charismatic evangelist for Apple, some of his employees from that time had described him as an erratic and tempestuous manager. An industry-wide sales slump towards the end of 1984 caused a deterioration in Jobs' working relationship with Sculley, and at the end of May 1985 – following an internal power struggle and an announcement of significant layoffs – Sculley relieved Jobs of his duties as head of the Macintosh division.[26]

NeXT

In 1986, finding himself sidelined by the company he had founded, Jobs sold all but one of his shares in Apple. The single share may have been for symbolic and sentimental reasons or to ensure that he would receive stock reports (as some biography books have stated) and attend shareholder meetings.

Around the same time, Jobs founded another computer company, NeXT Computer. Like the Apple Lisa, the NeXT workstation was technologically advanced, but was never able to break into the mainstream mainly owing to its high cost. Among those who could afford it, however, the NeXT workstation garnered a strong following because of its technical strengths, chief among them its object-oriented software development system. Jobs marketed NeXT products to the scientific and academic fields because of the innovative, experimental new technologies it incorporated (such as the Mach kernel, the digital signal processor chip, and the built-in Ethernet port).

The NeXT Cube was described by Jobs as an "interpersonal" computer, which he believed was the next step after "personal" computing. That is, if computers could allow people to communicate and collaborate together in an easy way, it would solve a lot of the problems that "personal" computing had come up against. During a time when e-mail for most people was plain text, Jobs loved to demo the NeXT's e-mail system, NeXTMail, as an example of his "interpersonal" philosophy. NeXTMail was one of the first to support universally visible, clickable embedded graphics and audio within e-mail.

Jobs ran NeXT with an obsession for aesthetic perfection, as evidenced by such things as the NeXT Cube's magnesium case. This put considerable strain on NeXT's hardware division, and in 1993, after having sold only 50,000 machines, NeXT transitioned fully to software development with the release of NeXTSTEP/Intel.

NeXT technology played a large role in catalyzing three unrelated events:

* The World Wide Web. Tim Berners-Lee developed the original World Wide Web system at CERN on a NeXT workstation. Jean-Marie Hullot's 'SOS Interface' became the basic for Interface Builder which Hullot built for NeXT and which Berners-Lee also used in his project the program 'WorldWideWeb'.
* NeXT computers were used in the development of the computer game Doom.[2]
* The return of Apple Computer. Apple's reliance on outdated software and internal mismanagement, particularly its inability to release a major operating system upgrade, had brought it near bankruptcy in the early-to-mid 1990s. Jobs' progressive stance on Unix and open source underpinnings was considered overly ambitious and somewhat backward in the 1980s but ultimately became an expandable solid foundation for an operating system. Apple would later acquire this software and under Jobs' leadership experience a renaissance.

Return to Apple

See also: "1998 to 2005: New beginnings" in Apple Inc.

In 1996, Apple announced that it would buy NeXT for US$429 million. The deal was finalized in late 1996,[27] bringing Jobs back to the company he founded. He soon became Apple's interim CEO after the directors lost confidence in and ousted then-CEO Gil Amelio in a boardroom coup. In March of 1998, in order to concentrate Apple's efforts on returning to profitability, Jobs immediately terminated a number of projects such as Newton, Cyberdog, and OpenDoc. In the coming months, many employees developed a fear of encountering Jobs while riding in the elevator, "afraid that they might not have a job when the doors opened. The reality was that Jobs's summary executions were rare, but a handful of victims was enough to terrorize a whole company."[28]

With the purchase of NeXT, much of the company's technology found its way into Apple products, notably NeXTSTEP, which evolved into Mac OS X. Under Jobs's guidance the company increased sales significantly with the introduction of the iMac and other new products; since then, appealing designs and powerful branding have worked well for Apple. At the 2000 Macworld Expo, Jobs officially dropped the "interim" modifier from his title at Apple and became permanent CEO, a job he still holds to date.

In recent years, the company has branched out. With the introduction of the iPod portable music player, iTunes digital music software, and the iTunes Store, the company is making forays into consumer electronics and music distribution. Most recently, Apple entered the cellular phone business with the introduction of the iPhone, a multi-touch display cell phone, iPod, and internet device. While stimulating innovation, Jobs also reminds his employees that "real artists ship",[29] by which he means that delivering working products on time is as important as innovation and attractive design.

Jobs works at Apple for an annual salary of US$1,[3] and this earned him a listing in Guinness World Records as the "Lowest Paid Chief Executive Officer." His current salary at Apple officially remains US$1 per year, although he has traditionally been the recipient of a number of lucrative "executive gifts" from the board, including a US$46 million jet in 1999 and just under 30 million shares of restricted stock in 2000–2002[30]. As such, Jobs is well compensated for his efforts at Apple despite the nominal one-dollar salary. This approach reduces his personal tax liability because, under current U.S. tax law, salary income is taxed at a significantly higher rate (currently up to 35%) than the capital gains tax (currently a maximum of 15%) applied to profits arising from the sale of stock grants. Obtaining remuneration through stock instead of salary is a common extrinsic rewarding technique which ties management performance to financial benefits. Furthermore, it acts as a tax minimization strategy.

Jobs is both admired and criticized for his consummate skill at persuasion and salesmanship, which has been dubbed the "reality distortion field" and is particularly evident during his keynote speeches (colloquially known as "Stevenotes") at Macworld Expos and at Apple's own World Wide Developers Conferences.

In 2005, Jobs responded to criticism of Apple's poor recycling programs for e-waste in the U.S. by lashing out at environmental and other advocates at Apple's Annual Meeting in Cupertino in April. When asked by a representative of a liberal investment fund why Apple's programs lagged behind Dell's and HP's, Jobs wound up his critic by calling the advocates' complaints "poo-poo head." However, a few weeks later, Apple announced it would take back iPods for free at its retail stores. The Computer TakeBack Campaign responded by flying a banner from a plane over the Stanford University graduation at which Jobs was the commencement speaker. The banner read "Steve — Don't be a mini-player recycle all e-waste". In 2006 he further expanded Apple's recycling programs to any U.S. customer who buys a new Mac. This program includes shipping and "environmentally friendly disposal" of their old systems.[31]

Jobs began 2007 with Macworld Expo at the Moscone Center in San Francisco. He began the episodic keynote address by reviewing Apple's music business through iTunes music and video highlights, mentioning that rumors of the decline in Internet music business were false. Highlights included the long-awaited iPhone mobile device as well as the rebranding and official introduction of Apple TV. After the long-awaited introduction of these two products, Jobs announced on January 9, 2007 that "Apple Computer, Inc" would be now known as "Apple Inc."

Jobs was also involved in 2007 in an attempt to persuade former Vice President of the United States Al Gore, a member of Apple's board of directors, to run for President in 2008.[32]

Stock options issue

In 2001, Steve Jobs was granted stock options in the amount of 7,500,000 shares of Apple with an exercise price of US$18.30, which allegedly should have been US$21.10, thereby incurring taxable income of $20,000,000 that he did not report as income. Apple overstated its earnings by that same amount. If found liable, Jobs may face a number of criminal charges and civil penalties. Apple claimed that the options were originally granted at a special board meeting that may never have taken place. Furthermore, the investigation is focusing on false dating of the options resulting in a retroactive US$20 million increase in the exercise price. The case is the subject of active criminal and civil government investigations,[33] though an independent internal Apple investigation completed on December 29, 2006 found that Jobs was unaware of these issues and that the options granted to him were returned without being exercised in 2003.