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and he actually liked our team’s version better. It stunned us.”
The Daily, which was neither tabloidy nor serious, but instead a rather midmarket product like USA Today, was not very successful. But it did help create an odd-couple bonding between Jobs and Murdoch. When Murdoch asked him to speak at his June 2010 News Corp. annual management retreat, Jobs made an exception to his rule of never doing such appearances.
James Murdoch led him in an after-dinner interview that lasted almost two hours. “He was very blunt and critical of what newspapers were doing in technology,”
Murdoch recalled. “He told us we were going to find it hard to get things right, because you’re in New York, and anyone who’s any good at tech works in Silicon Valley.” This did not go down very well with the president of the Wall Street Journal Digital Network, Gordon McLeod, who pushed back a bit. At the end, McLeod came up to Jobs and said, “Thanks, it was a wonderful evening, but you probably just cost me my job.” Murdoch chuckled a bit when he described the scene to me. “It ended up being true,” he said. McLeod was out within three months.
In return for speaking at the retreat, Jobs got Murdoch to hear him out on Fox News, which he believed was destructive, harmful to the nation, and a blot on Murdoch’s reputation. “You’re blowing it with Fox News,” Jobs told him over dinner. “The axis today is not liberal and conservative, the axis is constructive-destructive, and you’ve cast your lot with the destructive people. Fox has become an incredibly destructive force in our society. You can be better, and this is going to be your legacy if you’re not careful.” Jobs said he thought Murdoch did not really like how far Fox had gone.
“Rupert’s a builder, not a tearer-downer,” he said. “I’ve had some meetings with James, and I think he agrees
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with me. I can just tell.”
Murdoch later said he was used to people like Jobs complaining about Fox. “He’s got sort of a left-wing view on this,” he said. Jobs asked him to have his folks make a reel of a week of Sean Hannity and Glenn Beck shows—he thought that they were more destructive than Bill O’Reilly—and Murdoch agreed to do so. Jobs later told me that he was going to ask Jon Stewart’s team to put together a similar reel for Murdoch to watch. “I’d be happy to see it,” Murdoch said, “but he hasn’t sent it to me.”
Murdoch and Jobs hit it off well enough that Murdoch went to his Palo Alto house for dinner twice more during the next year. Jobs joked that he had to hide the dinner knives on such occasions, because he was afraid that his liberal wife was going to eviscerate Murdoch when he walked in. For his part, Murdoch was reported to have uttered a great line about the organic vegan dishes typically served: “Eating dinner at Steve’s is a great experience, as long as you get out before the local restaurants close.” Alas, when I asked Murdoch if he had ever said that, he didn’t recall it.
One visit came early in 2011. Murdoch was due to pass through Palo Alto on February 24, and he texted Jobs to tell him so. He didn’t know it was Jobs’s fifty-sixth birthday, and Jobs didn’t mention it when he texted back inviting him to dinner. “It was my way of making sure Laurene didn’t veto the plan,” Jobs joked.
“It was my birthday, so she had to let me have Rupert over.” Erin and Eve were there, and Reed jogged over from Stanford near the end of the dinner. Jobs showed off the designs for his planned boat, which Murdoch thought looked beautiful on the inside but “a bit plain”
on the outside. “It certainly shows great optimism about his health that he was talking so much about building it,” Murdoch later said.
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At dinner they talked about the importance of infusing an entrepreneurial and nimble culture into a company. Sony failed to do that, Murdoch said. Jobs agreed. “I used to believe that a really big company couldn’t have a clear corporate culture,” Jobs said. “But I now believe it can be done. Murdoch’s done it. I think I’ve done it at Apple.”
Most of the dinner conversation was about education. Murdoch had just hired Joel Klein, the former chancellor of the New York City Department of Education, to start a digital curriculum division. Murdoch recalled that Jobs was somewhat dismissive of the idea that technology could transform education. But Jobs agreed with Murdoch that the paper textbook business would be blown away by digital learning materials.
In fact Jobs had his sights set on textbooks as the next business he wanted to transform. He believed it was an $8 billion a year industry ripe for digital destruction. He was also struck by the fact that many schools, for security reasons, don’t have lockers, so kids have to lug a heavy backpack around. “The iPad would solve that,” he said. His idea was to hire great textbook writers to create digital versions, and make them a feature of the iPad. In addition, he held meetings with the major publishers, such as Pearson Education, about partnering with Apple. “The process by which states certify textbooks is corrupt,” he said. “But if we can make the textbooks free, and they come with the iPad, then they don’t have to be certified. The crappy economy at the state level will last for a decade, and we can give them an opportunity to circumvent that whole process and save money.”
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CHAPTER THIRTY-NINE
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NEW BATTLES
And Echoes of Old Ones
Google: Open versus Closed
A few days after he unveiled the iPad in January 2010, Jobs held a “town hall” meeting with employees at Apple’s campus. Instead of exulting about their transformative new product, however, he went into a rant against Google for producing the rival Android operating system. Jobs was furious that Google had decided to compete with Apple in the phone business.
“We did not enter the search business,” he said. “They entered the phone business. Make no mistake. They want to kill the iPhone. We won’t let them.” A few minutes later, after the meeting moved on to another topic, Jobs returned to his tirade to attack Google’s famous values slogan. “I want to go back to that other question first and say one more thing. This ‘Don’t be evil’ mantra, it’s bullshit.”
Jobs felt personally betrayed. Google’s CEO Eric Schmidt had been on the Apple board during the development of the iPhone and iPad, and Google’s founders, Larry Page and Sergey Brin, had treated him as a mentor. He felt ripped off. Android’s touchscreen interface was adopting more and more of the features—
multi-touch, swiping, a grid of app icons—that Apple had created.
Jobs had tried to dissuade Google from developing Android. He had gone to Google’s headquarters near Palo Alto in 2008 and gotten into a shouting match with Page, Brin, and the head of the Android development team, Andy Rubin. (Because Schmidt was then on the Apple board, he recused himself from discussions involving the iPhone.) “I said
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we would, if we had good relations, guarantee Google access to the iPhone and guarantee it one or two icons on the home screen,” he recalled. But he also threatened that if Google continued to develop Android and used any iPhone features, such as multi-touch, he would sue. At first Google avoided copying certain features, but in January 2010 HTC introduced an Android phone that boasted multi-touch and many other aspects of the iPhone’s look and feel. That was the context for Jobs’s pronouncement that Google’s “Don’t be evil” slogan was “bullshit.”
So Apple filed suit against HTC (and, by extension, Android), alleging infringement of twenty of its patents. Among them were patents covering various multi-touch gestures, swipe to open, double-tap to zoom, pinch and expand, and the sensors that determined how a device was being held. As he sat in his house in Palo Alto the week the lawsuit was filed, he became angrier than I had ever seen him: Our lawsuit is saying, “Google, you fucking ripped off the iPhone, wholesale ripped us off.” Grand theft. I will spend my last dying breath if I need to, and I will spend every penny of Apple’s $40 billion in the bank, to right this wrong. I’m going to destroy Android, because it’s a stolen product. I’m willing to go to thermonuclear war on this. They are scared to death, because they know they are guilty. Outside of Search, Google’s products—Android, Google Docs—are shit.
A few days after this rant, Jobs got a call from Schmidt, who had resigned from the Apple board the previous summer. He suggested they get together for coffee, and they met at a café in a Palo Alto shopping center. “We spent half the time talking about personal matters, then half the time on his perception that Google had stolen Apple’s user interface designs,” recalled Schmidt. When it came to the latter subject, Jobs did
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most of the talking. Google had ripped him off, he said in colorful language. “We’ve got you red-handed,” he told Schmidt. “I’m not interested in settling. I don’t want your money. If you offer me $5 billion, I won’t want it.
I’ve got plenty of money. I want you to stop using our ideas in Android, that’s all I want.” They resolved nothing.
Underlying the dispute was an even more fundamental issue, one that had unnerving historical resonance. Google presented Android as an “open”
platform; its open-source code was freely available for multiple hardware makers to use on whatever phones or tablets they built. Jobs, of course, had a dogmatic belief that Apple should closely integrate its operating systems with its hardware. In the 1980s Apple had not licensed out its Macintosh operating system, and Microsoft eventually gained dominant market share by licensing its system to multiple hardware makers and, in Jobs’s mind, ripping off Apple’s interface.
The comparison between what Microsoft wrought in the 1980s and what Google was trying to do in 2010
was not exact, but it was close enough to be unsettling
—and infuriating. It exemplified the great debate of the digital age: closed versus open, or as Jobs framed it, integrated versus fragmented. Was it better, as Apple believed and as Jobs’s own controlling perfectionism almost compelled, to tie the hardware and software and content handling into one tidy system that assured a simple user experience? Or was it better to give users and manufacturers more choice and free up avenues for more innovation, by creating software systems that could be modified and used on different devices?
“Steve has a particular way that he wants to run Apple, and it’s the same as it was twenty years ago, which is that Apple is a brilliant innovator of closed systems,”
Schmidt later told me. “They don’t want people to be on
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their platform without permission. The benefits of a closed platform is control. But Google has a specific belief that open is the better approach, because it leads to more options and competition and consumer choice.”
So what did Bill Gates think as he watched Jobs, with his closed strategy, go into battle against Google, as he had done against Microsoft twenty-five years earlier? “There are some benefits to being more closed, in terms of how much you control the experience, and certainly at times he’s had the benefit of that,” Gates told me. But refusing to license the Apple iOS, he added, gave competitors like Android the chance to gain greater volume. In addition, he argued, competition among a variety of devices and manufacturers leads to greater consumer choice and more innovation. “These companies are not all building pyramids next to Central Park,” he said, poking fun at Apple’s Fifth Avenue store,
“but they are coming up with innovations based on competing for consumers.” Most of the improvements in PCs, Gates pointed out, came because consumers had a lot of choices, and that would someday be the case in the world of mobile devices. “Eventually, I think, open will succeed, but that’s where I come from. In the long run, the coherence thing, you can’t stay with that.”
Jobs believed in “the coherence thing.” His faith in a controlled and closed environment remained unwavering, even as Android gained market share.
“Google says we exert more control than they do, that we are closed and they are open,” he railed when I told him what Schmidt had said. “Well, look at the results—
Android’s a mess. It has different screen sizes and versions, over a hundred permutations.” Even if Google’s approach might eventually win in the marketplace, Jobs found it repellent. “I like being responsible for the whole user experience. We do it not to make money. We do it because we want to make
