We could complete each other’s sentences because we were on the same wavelength. Steve would rouse me from sleep at 2 a.m. with a phone call to chat about an idea that suddenly crossed his mind. “Hi! It’s me,” he’d harmlessly say to the dazed listener, totally unaware of the time. I curiously had done the same in my Pepsi days. Steve would rip apart a presentation he had to give the next morning, throwing out slides and text. So had I as I struggled to turn public speaking into an important management tool during my early days at Pepsi. As a young executive, I was always impatient to get things done and often felt I could do them better myself. So did Steve. Sometimes I felt as if I was watching Steve playing me in a movie. The similarities were uncanny, and they were behind the amazing symbiosis we developed.
This was self-delusion, and it was a recipe for disaster. Jobs began to sense it early on. “We had different ways of looking at the world, different views on people, different values,” Jobs recalled. “I began to realize this a few months after he arrived. He didn’t learn things very quickly, and the people he wanted to promote were usually bozos.”
Yet Jobs knew that he could manipulate Sculley by encouraging his belief that they were so alike. And the more he manipulated Sculley, the more contemptuous of him he became. Canny observers in the Mac group, such as Joanna Hoffman, soon realized what was happening and knew that it would make the inevitable breakup more explosive. “Steve made Sculley feel like he was exceptional,” she said. “Sculley had never felt that. Sculley became infatuated, because Steve projected on him a whole bunch of attributes that he didn’t really have. When it became clear that Sculley didn’t match all of these projections, Steve’s distortion of reality had created an explosive situation.”
The ardor eventually began to cool on Sculley’s side as well. Part of his weakness in trying to manage a dysfunctional company was his desire to please other people, one of many traits that he did not share with Jobs. He was a polite person; this caused him to recoil at Jobs’s rudeness to their fellow workers. “We would go to the Mac building at eleven at night,” he recalled, “and they would bring him code to show. In some cases he wouldn’t even look at it. He would just take it and throw it back at them. I’d say, ‘How can you turn it down?’ And he would say, ‘I know they can do better.’” Sculley tried to coach him. “You’ve got to learn to hold things back,” he told him at one point. Jobs would agree, but it was not in his nature to filter his feelings through a gauze.
Sculley began to believe that Jobs’s mercurial personality and erratic treatment of people were rooted deep in his psychological makeup, perhaps the reflection of a mild bipolarity. There were big mood swings; sometimes he would be ecstatic, at other times he was depressed. At times he would launch into brutal tirades without warning, and Sculley would have to calm him down. “Twenty minutes later, I would get another call and be told to come over because Steve is losing it again,” he said.
Their first substantive disagreement was over how to price the Macintosh. It had been conceived as a $1,000 machine, but Jobs’s design changes had pushed up the cost so that the plan was to sell it at $1,995. However, when Jobs and Sculley began making plans for a huge launch and marketing push, Sculley decided that they needed to charge $500 more. To him, the marketing costs were like any other production cost and needed to be factored into the price. Jobs resisted, furiously. “It will destroy everything we stand for,” he said. “I want to make this a revolution, not an effort to squeeze out profits.” Sculley said it was a simple choice: He could have the $1,995 price or he could have the marketing budget for a big launch, but not both.
“You’re not going to like this,” Jobs told Hertzfeld and the other engineers, “but Sculley is insisting that we charge $2,495 for the Mac instead of $1,995.” Indeed the engineers were horrified. Hertzfeld pointed out that they were designing the Mac for people like themselves, and overpricing it would be a “betrayal” of what they stood for. So Jobs promised them, “Don’t worry, I’m not going to let him get away with it!” But in the end, Sculley prevailed. Even twenty-five years later Jobs seethed when recalling the decision: “It’s the main reason the Macintosh sales slowed and Microsoft got to dominate the market.” The decision made him feel that he was losing control of his product and company, and this was as dangerous as making a tiger feel cornered.
CHAPTER FIFTEEN
THE LAUNCH
A Dent in the Universe