Steve Wozniak1:35
Okay, first of all, I'd like to say that it's a great pleasure to attend club meetings like this, and it's a particular thrill because I don't take advantage of the opportunity to travel for business very often. Most of the traveling that I've done in the last few years has been to clubs around the country to chat. So I was really thrilled yesterday when I looked on the airplane map and realized that Cincinnati's just across the border from Kentucky, and I thought, what if I could get over there? Then I discovered last night that I was in three firsts: I was in Kentucky, Indiana, and Ohio for the first time, so it was quite a thrill. Then this morning I woke up about 3:00 a.m. California time, had some coffee at the coffee shop—you might know the one—I think I might be joining John Anderson in the hospital. So I'm plenty tired, but that's bad and it's good because you'll probably get me to say all sorts of stuff that I wouldn't normally say. I don't have a prepared talk, so I'm just going to figure it out in about a minute. First of all, I would like to say I enjoyed that last talk by Tom; that was just great. I think that was, you know, perfect Apple style, and I hope I can get a videotape of it to show around Apple.
Okay, I'm going to go back. A lot of times I talk about the origins of the Apple and how it was kind of developed in a club-type atmosphere, and I'm going to browse over that a little quickly and get into other early Apple folklore. It was mid-'75; I got interested in the club scene. It was just kicking off with the MITS computers, and I wanted to build a certain style computer for about 10 years. All I could do was do it on paper because I couldn't afford to realize it myself. Finally, the technology was in the right place, and I got the chance to do it. I designed the Apple, wrote the Integer BASIC, and the first Apple I monitor ROM at the Homebrew Computer Club. Essentially, every two weeks it was come down, show it off, get some feedback, help other people hand-wire them. My friend from high school days, Steve Jobs, proposed starting a company—just to kind of start a little company on our own, not knowing what a company was. He came up with the name Apple Computer, which was undeniably the best computer company name possible. So we kicked it off in March of '76. He sold his van, I sold my HP calculator, we laid out a PC board, we managed to pay the PC artist, and we thought we were going to sell blank boards for 40 bucks each at the club. Anyone wanted an Apple I board. Instead, it turned out Steve went out right away and started hustling for business. Since the design, the engineering, and the software was basically done, he hustled around, talked to a few store owners, and the only store in the area in those days was the Byte Shop in Mountain View. He sold Paul Terrell on 50 fully assembled Apple Is, which just blew us away and more or less put us in business at a level we had never thought possible. So we did about $100,000 of business the first year.
Okay, I'm going to go back a little bit further, even, which is about the time I was kicking around getting interested in what was possible with microprocessors. Of course, I had terminals in those days, and I'd call up the local time-sharing systems and play the games that I like to play and hop around on the ARPANET. It was really great fun, and I always thought how great it would be to be able to play games like LUNAR and whatnot just right in your own home. When the microprocessor came about, it was obvious that in a very small package you could put it all in one place and have total control over it. So that was more or less the initial kickoff concept for me. There was no idea of starting a company, selling a product, or anything; it was just being able to do what I had done before with the terminal and time-sharing computers. About the time that I started working on Apple I designs and ran into the 6502 microprocessor and wrote the Integer BASIC, another friend at HP, where I worked in the calculator division, we both got very interested in the possibilities of doing roughly a thousand-dollar Apple I-ish machine—maybe 4K of RAM, 4K of ROM with BASIC, simple video coming out that you'd play into your home TV set, and the keyboard. We approached the lab manager with the idea of building a completely built, ready-to-go machine for a thousand bucks. No color, none of the real fancy features, no disk—we hadn't really thought out too far. We just thought it would be nice to have a fun machine to program BASIC on, a small 9830. The lab manager at the time said that he was intrigued by the idea; it was a good idea for a startup company, but it didn't quite fit into the HP way. You know, what if there's a problem and the picture looks crummy—is it the TV set or is it the HP computer? He had a lot of objections and couldn't really allocate any resources to the project. But he continually came up to me and said he hadn't slept since we discussed it with him. In the meantime, he mentioned it to the Corvallis division, which built several thousand-dollar, three-thousand, five-thousand-dollar low-end of their 9830 BASIC machines. They were more or less scared of any $800 products, but they were especially scared if they grew into like $2,500 products that would come close to competing with what they had. So more or less, even though there was no go-ahead on a project or anything, there was a product split. Then Steve and I went into business with the Apple and went through a legal release process through HP. No division was interested, of course, and basically brought out the Apple I. It was not a real big seller, but we started taking out national ads and getting around. We went out to Atlantic City for PC '76, and that was a great thrill, you know, to travel and do things. We were kind of on top of the world, even though we really weren't making big money. You know, we had basically what we wanted, and I had what I wanted, which was a computer of my own, so I was quite happy. I was working at Hewlett-Packard in the day and doing the Apple stuff totally moonlight at night. I was the engineer; Steve was a 20-hour-a-day businessman setting up a company, doing the marketing, tracking down the parts, scheduling the construction of the PC boards, talking to all the vendors, just hustling every aspect of it, making sure the ads got written in the magazines, etc. So about that time, my real interest wasn't so much—Apple was not a real big deal. It wasn't a big company; it wasn't something that you're extremely attached to. It's like something we did that was fun. My real attachment was to the growing field of personal computing. In those days, a lot of the people that were in the clubs were talking using the phrase 'home computer,' and they were a little bit off-base because it really hasn't happened yet as a true home computer. The early people, the first people that were talking using the phrase 'home computer' or 'personal computer,' were just strictly hobbyists, technicians, the people who were building kits themselves. They were a little bit off-base, but they were the first ones to use the phrases, and I was interested in the entire field. I pursued it. I'd already pursued it once at HP, trying to push the Apple I concept along as an official project in the lab unsuccessfully. So then I thought, you know, HP was my real love; it was my security, it was my job. I looked about HP for other aspects of personal computing that I might be able to get into because I loved that more than calculator design. Oddly enough, after the Apple I was introduced and we started shipping them, kind of quietly, a project got started in the lab. Before you knew it, they assigned, you know, five programmers to work on the BASIC and a bunch of people looking into printers and CRT screens and CPU design, a custom CPU in CMOS, etc. So the approach was like a big-scale project, except it started slowly and piece by piece. It was kind of odd because it was a similar project to the Apple in a way, but no one ever admitted it. I thought, hey, you know, this is where my real interest is—an 8-bit machine and, you know, RAMs and video and graphics and whatnot. So I approached the group leader and mentioned I'd be interested in working on the project, any phase. I'm great at peripherals, CPU design, whatever—it didn't matter, software. I just wanted to participate on that kind of a product, and they were going to be the first group to move to Corvallis, Oregon, so I said I'm ready to go. I wound up talking to the section leader and basically got turned down. So strike out—that's two strikes. I didn't get into personal computing at that level. I wound up still working on calculator chips. About the same time, a project going on in HP Labs was going to turn into more or less a portable, handheld LCD display BASIC machine at the time. This was a very intriguing idea, especially the portability. It has never come to be quite the product concept; it goes back and forth, especially anything at HP Labs. But a lot of the people that were interested in this were some of the crucial people on the original HP-35 calculator, so they were really excited about getting me on the project because I'd done a lot of these things and I was really enthusiastic in person, you know, this kind of field. So I went over and interviewed, and I didn't really try to create a good impression of myself, didn't really try to push it, because I thought I was a shoo-in for the job, and they turned me down. So that was three strikes at HP, and I tried as hard as I could to get into personal computing there but didn't quite make it. So anyway, then we had this company selling Apple Is out of the garage, part-time on the side. This was really big time for us because we had a lot more going than most typical engineers. We started thinking the Apple II design came about very, very quickly. Sometimes it's been referred to as 'Woz's Law: do it right the second time' or such things. A lot of the original idea, like for color, was I wanted to enhance the Apple I and add color. To enhance it generally takes a lot more chips than to design it in, so I had to be very clever and think it out very carefully to get the number of chips down to something reasonable for the Apple I. By then we had at least a cassette interface for the Apple I after unsuccessfully hiring a consultant. Oh, backing up just a little, when we started the company, okay, we came up with the name, you got to go register the name, and you basically form a partnership and you sign some documents saying you're partners and here's how it's divided and here's what the general responsibilities are, here's what happens if you break up, etc. We had a third partner, and he came on. He wrote our first manuals; he composed them and he did a beautiful drawing of Newton under the apple tree for more or less our first—too complicated for a logo, but it eventually led to a concept that Carl Humber used on a Byte magazine article cover. So this person, at the time we started the company, Steve Jobs had 45 percent, I had 45, this person had 10 percent. I think he saw a VCR or something one day and he needed some money, so he sold out his 10 for $800.
Okay, a few months after we started shipping Apple Is, during—we started shipping them, I think, March, April, April or May of '76. By the end of that summer, the Apple II was being shown around at the club. It was being demoed for selected magazine editors as something that we were just working on. We didn't know what the final concept was going to be. It was a hand-wired breadboard; it didn't have a case. We were selling Apple Is in wood cases at the time, and we, of course, were selling Apple I, so we didn't want to talk too much about the Apple II because it turned out to be just one of those designs that you're really happy with. Everything is so small and well integrated. It did everything the Apple I did; it did a lot more. It did it cheaper, it did it faster. It had the color, it had the game facilities came along with it, the sound, the paddles. Basically, that was because I wanted to implement Breakout first, so a lot of the BASIC commands and the paddles, a lot of the features—there wasn't much software, and before there is much, you're kind of working in the blind as to what the eventual machine should be, what is the concept. The 40 characters across was a pretty easy decision because that was what would work on a standard home TV. That led to the concept of portability also, which when it got to Apple II days, Steve Jobs was instrumental in coming up with a product concept of the lightweight portable machine. He helped hustle things like a lightweight power supply, which was designed by Rod Holt at Atari, and just pushing the idea of a plastic, first plastic case computer, etc. So anyway, the Apple II features were kind of being developed piecemeal, and by the end of that summer, it was pretty clear that we had the product. We thought it was going to be a real hot seller compared to the Apple I, and we were really enthusiastic about it. We were fortunate to get two tries in such a short period of time because companies like MITS and IMSAI basically got in with one product and didn't—when you get to that second level, you've already been through all the timing diagrams and you've been through so many ways of trying it and thinking it out that it's generally a much improved version. We were so happy with the Apple II that when we went out to PC '76 in August, I think, we came down really late one night when all our competitors were gone. They had an Advent projector there, which we'd never really had access to before, and we put it on just to see what it would look like on the big screen. The Advent technician said, 'I want one of those.' Everything else in the world was around him and small computers in those days, and he said, 'I want one of those,' so he got serial number one. It happened to trade our president Mike Markkula a copy of Star Wars for it. So we started thinking about the Apple II. We only shipped in one year we shipped about 175 Apple Is, which isn't that much. We thought it was really surprising; we thought 30 would be great. In those days, 100 of any type of computer was significant. So we started thinking in terms of the Apple II as to the real potential of like a thousand computers a month, pretty easily, because we knew the market was there. In between the Apple I and the Apple II, the SOL computer was introduced, and it wasn't actually shipped until about nine months after introduction, which is typical in our business. But it was pretty obvious by the time it shipped, which was before we shipped Apple IIs, that it was the hot seller in all the computer stores. We thought that we could easily knock off a product like that just by virtue of having better design, easier to interface to, all the color built in, all the fancy features that we had. We thought we had the fun machine. So the problem is, how do you go out and build a run of a thousand of something when you're used to building a hundred? It takes some money, and up till that point in time, the only loan we got was $5,000 from a couple of friends for a couple of months in the beginning. We realized that we had to raise some capital, and one of the intriguing possibilities was finding some venture capital. So Steve started getting a hold of people because he's the businessman. I'm still designing, finishing the Apple II design, getting the PC board layout ready, etc. Steve started phoning around and bringing people into the garage that were around Silicon Valley, you know, in the electronics industry. Ex-company presidents would pop by, and one thing led to another. We ran into a venture capitalist; it was the wrong sort of thing for him, but he got us onto this guy, Mike Markkula, who had been product marketing manager at Intel and had retired on a stock option that was worth like a million bucks or something. So he was pretty comfortably retired, keeping up with the electronics industry, very bright, very sensitive, very ethical type of guy. So we met with him, and originally he was just going to help us write a business plan to get venture money from a couple of venture places that he knew or he knew people that worked in them. By the time he got done, he was so turned on to what we had and the market possibilities, and it was just the sort of thing he had always wanted to do. In a fast-growing market like this is the one opportunity for a company to come on and grow to the size that Apple's grown to in a very short period of time. Business-wise, Steve and I didn't know what we were doing; we were just a couple kids floating around. Mike knew what he was doing, and he knew where he'd take us, and decided to join us as a third, roughly equal partner. That kind of launched—so we launched the company with the Apple II, made a big splash at the first computer fair we went to, picked up a lot of dealer orders. We grew steadily, steadily, steadily. After a while, sales cooled off; we came out with the disk, sales shot sky-high, and it's been growth ever since. The story's told so many times I'm not going to get into that one. What I am going to do is, since I haven't thought out what I'm going to talk about, I'll let you make suggestions by asking questions at this point, and I'll just answer questions all day. And if I can't answer them, I can't answer them.
Double-sided disk for the Apple III? Not announced yet. We're working on it. It was in MicroMation—well, you know, a lot of the stuff, especially the stuff in InfoWorld, is—I don't know, you know as much as I do probably.
Okay, imagine this if you will. First of all, as an officer of the company, some subjects are taboo. But also, imagine if you will that imagine a person that is really interested in the latest PROM code that he's writing, or goes home and works with the Apple, tries out a new piece of software every night, gets all the hardware cards he can, learn how to use them, and doesn't really have that much interest in the big financial operation and how many buildings we've got overseas and how many employees and what the management structure is. And it really doesn't read the Wall Street Journal and probably doesn't know any more than you.
Why the 6502? Okay, at the point in time there were two processors to consider: there was the 8080 and the 6800. The 8080 was extremely expensive to come by in single quantities, and for just a person who likes to go down to the grocery store to buy a can of Coke, you don't—how do you buy an 8080? There was no real distribution to individuals. The 6800 was a popular processor that had been sort of selected by a couple divisions at HP as a sort of standard, and HP came out with an offering whereby you could buy a processor and a PIA for roughly, I think, 40 bucks or 80 bucks or something. I strongly considered it and designed the Apple I for the 6800. At that time, I'd already finished a video terminal design which I used for myself, and I just popped the video terminal and interfaced it to a 6800, and that was the design. It was on paper before I ever bought the 6800. A little company in Pennsylvania introduced the 6502, announced intentions to sell it over the counter at WestCon for 20 bucks, and this was just totally unheard of. It was like, you know, processors are going to be as cheap as any chip, and we're going to sell it cheap and not make a ton of money going in because it's going to be such a huge market. But that marketing direction largely came from Chuck Peddle, who was one of the designers of that processor. So I thought, well, this is great. I went up to WestCon with my friends; we all threw over our 20 bucks or 25 bucks and bought the 6501, 6502, bought the manuals. Riding home on BART, we flipped through the manuals and discovered that, contrary to claims, it really wasn't all that more than a 6800. It had a lot of nice addressing modes and a lot of nice tricks of its own, but it was missing things like increment the accumulator. So basically, it was the way it was sold. By the time you get the 6502, you think, well, I've been writing compilers and whatnot on machines that I never had in my hand for years just for the fun of it, and that's where I was. I thought, well, first of all, I want to write the first BASIC compiler for the 6502; it'll be really fun, and I'll be way ahead of everything. The only hang-up was there were no assemblers, so I did it all by hand. But it was really exciting. Remember, there was no company; there was no decision saying what are people buying, what would people want to buy. There was nothing like this. The Apple I was running the BASIC about four months before we even decided to start a company. So the development cycle was more like user-oriented: what do I want, what do you really want to use? I had just enough experience to know what I wanted to use. The 6502 was plenty adequate and was the new kid on the block, and it was kind of like the exciting thing to do rather than just pick up a processor that tons of other people already had and were running lots of software on. It was fun to start from scratch. So it came about, and to be frank, we really haven't regretted it.
Why apply the 6502 in the Apple III instead of one of the 16-bit processors? The Apple II has become enough of a standard and a very popular machine, well-liked by people outside of Apple, that we wanted to build in an emulation mode. It wasn't that a lot of software would transfer over directly, but a lot of software experience from our developers would. We built in emulation mode where it emulates an Apple II, and this required the 6502. We evaluated performance of various processors; a lot of people were heavily in favor of the 6809. Basically, we took the 6502 and built with TTL some features around it that extended it to 6502 Plus, if you will, and let us do a machine with the addressability and whatnot that the Apple III has.
Status of the Apple III? I'm not going to comment. It's in the box. I try not to keep aware, especially of schedules on shipments of products, because I find that within a two-day period it will change if it was supposed to be out within two days. Every time I open my mouth and say it's in the stores, it turns out it isn't. So until I see it there myself, I usually don't say.
Okay, any questions? Apple then, Apple now, me, whatever, I don't care. Go ahead.
Center in the diskette fix? Yeah, I think we got one large batch of drives that had a centering problem that we discovered. Some brands of diskettes centered better than other brands of diskettes, and the diskettes that we're shipping now with the Apple logo on have a little plastic insert around the hole that helps that problem. Aside from that, I haven't really talked to the people working on this problem over in the disk division recently, so I don't know what the final solution is.
Hard disks? We're very interested in both the eight-inch and five-inch Winchester-type hard disks, applying them to the Apple II as well as other Apple products. We're going to basically, at the moment, our approach is buy the Winchester drive and build the controller ourselves—pretty much the standard up to now, the Apple approach. You know, like our floppy, we buy the mechanism outside and design our own controller because we're not mature enough yet that we're actually doing a lot of electromech design. We are working on a couple products, but they're like our first step down into that technology. It is possible that at some time, and not too far in the future, we would consider something like building disk drives. We're getting to that size that that's one of the first things you think of: we'll build it ourselves, we'll buy them out.
How soon? No comment, because chances are I'd never be right in the end.
How big is Apple Computer today? I don't know, roughly around, I think, a thousand employees pretty much is a close approximation. It's hard to tell by badge number these days because we've lost enough; you can't just look at the last badge number and say how many there are, plus the number of badge numbers that were reserved for Dallas and North Carolina and wherever else. So that's just an estimate.
Okay, my education background and when did I first become interested in computers? Okay, well, back in high school I was, you know, top math science student, all A's, real high college entrance scores. I was really bright. But unlike most math types, I was also interested in electronics, which was usually considered a shop-type course. So I wound up being very fortunate that in high school—I mean, I built my first computer out of transistors in like sixth grade, okay? And this was back before anyone was doing it. Ham radio license, I was very much in electronics, largely spurred on by my father, etc. In high school, I was the only one in the school who knew anything about computers. We didn't have computers in the school. What the teachers thought was a computer was a bunch of switches and patch cords and relays. I got interested, I started reading small computer manuals. The PDP-8 manual was my big guide, and I started practicing designing first with transistors and then with low-scale integration and MSIs. My designs got better and better, and of course I couldn't build anything because I couldn't get the parts, but I just went through it for the practice. I was excited about instruction sets and computers. That, and basically probably a lot of you in this room have gone through a similar thing with the Apple manuals—you just learn it from the manual. So it was all self-taught; there were no courses. I managed to get into a special project where I could learn programming over at Sylvania, and that was probably the most exciting thing my senior year of high school. So I went off to school, one year, one year college in Colorado. I was still designing computers by then. I was in love with the Nova instruction set; I could never get enough chips to build one. Came back, went my second year of school at a local college. I had good grades in school; I was doing well, very good grades, especially in computer courses. Went off to Berkeley my third year. After Berkeley, I worked at a computer company called Tenet in between. Has anyone ever heard of Tenet? Okay, well, they went bankrupt because they had a great product. It was a 24-bit machine—it was a 32-bit machine. It was absolutely outstanding, and HP would have been wise to buy it instead of developing the 3000. It was supporting 32 users, BASIC, FORTRAN, everything, and this was 1969. Gorgeous machine, much better price than anything else going. The problem is they sold two to the state of California, which are still being used by the DMV today, and they wish they could buy more. We went into a recession, and one of the major owners of the company decided he needed a tax write-off, so basically they shut down instead of trying to stick it out. Just kind of unfortunate because those people from Tenet are still all over Silicon Valley today, and they're all heavily involved in the scene. Went to Berkeley, computer science curriculum. Came out of Berkeley after three years and just got into so many projects, mostly designing stuff that I wanted and couldn't afford—things like Pong games to the first design of Breakout for Atari for the arcade game. I worked up to video terminals and into the Apple stuff. Through a bunch of—I just got into so much stuff, I didn't go back to school. I didn't really drop out like the magazines say; I took courses in the meantime, so I'm roughly a half a year away from a degree if I really wanted to go back and get it, which I may. So pretty much my educational background is not like—I wasn't a student, I was a dropout. Unlike Steve, he went to school for about a week, and he's much brighter than I am. The second part of the question was my computer experience. Okay, well, I've been heavily involved in computers for a long time. The only one I ever got the chips to build was toggle switches and lights, and I wrote some programs of my own. It was a lot of fun; it was kind of like the early mid-computer approach, only it was like 10 years before. It was just a ton of fun, but I realized right away I wanted video, so I designed a video for it. I wanted a keyboard and designed a keyboard interface. Knew what I wanted but couldn't afford anything, but it was all sitting around in my mind. When the technology finally came and it was affordable, it was just like I'd already done it. I knew what I wanted, so it wasn't like sitting back at that time and saying, well, how should you do it? It was just something you know.
Regional Midwest? I thought we had the country pretty well covered, but okay, I will walk over a few steps and see what I can do.
What is the Apple II Plus? Next question. Apple II Plus—I don't know, what will we call it? Maybe the Apple III, IV, I don't know. Go ahead.
Another question right there. Can you say anything about bubble memory? Can I say anything about bubble memory? Yeah, it never quite—it's been hanging around for a long time talking about various applications. It was far too expensive to consider. Even if we cut the cost to the bones by ordering really high quantity, like the million-bit chip from Intel, you could get roughly the density of a floppy disk on one nice little small solid-state card, and it's great. It's just right there in your hand; you plug it in, it works, virtually no interface hardware, no mechanics. The problem is it's not removable. You aren't going to spend 500 bucks for each floppy disk worth of data. It may come about someday that it comes like a built-in system-type drive system-type parameter, but it was just outrageously expensive for a personal computing product at the time, and so hasn't found it yet. There was no real reason that the chips were going to get really cheap because it was a very large die and it was subject to the same yield curves as silicon, and the yield problem was very significant. So there was no reason to expect the price to really come down that we could see, and haven't heard anything different since.
Does the Apple III use 64K RAM chips? Yes, the Apple III can use 64K RAM chips. There's a plug-in RAM card; there will be a card available someday, probably with 256K of RAM. Easily, it's supported. Go ahead.
Bridge between Apple DOS and Pascal? Yes. We've done a few things inside, not officially, not as a product, but the people that wanted to transfer files over—it happens all the time, especially assembly files from one environment to the other. The approach was generally to study both of the disk formats. As far as DOS 3.3 and Pascal, they used the same sectoring format, but the catalogs, the directories, are laid out differently. It was basically a matter of understanding both of those and then going through a sector at a time and following catalogs, picking out where the files were on the disk, and moving them over character to character. The programs have been written in Pascal; they've been written in BASIC calling RWTs. Pascal just calls read unit or write unit. So that was the technique: just looking at how all the directories are set up and doing it raw from a very low level.
Not enough money for an Apple computer? In that case, a KIM, a SYM, or a AIM. These are all 6502-based machines, and a lot of people move up from that to an Apple someday. It's a good place, especially if you consider that you might move into an Apple II or an Apple III at a future date. It's a really good machine to start with. It's quite expandable; people have come up with amazing expansions from video to lots of—I forget how many K of RAM, but it's a good machine. The concept is it doesn't come in a case like this; it comes on a PC board, and it's much simpler, very low cost. The companies that make those are Synertek, Rockwell, and MOS Technology. Anything that ends in 'M'—that's the one. They're all so similar.
As someone who both produces software and, I presume, consumes software, could you comment on a recent trend of software producers to protect their software by making it uncomfortable? Okay, as a software producer and a software consumer, got a comment on the problem that software producers have of protecting their software. Yeah, I purchase all my software, every bit of it, and I try to get all the good stuff. Anything good that's out, I try to get; it's almost like a collection. I also have developed some sophisticated copy programs that will copy them for free that I don't use, so I'm kind of on a two-sided approach. Most of the protection techniques get bothersome after a while; you just hate the crap. One of the problems with protected software is you can't take the program and adapt it over to DOS 3.3 or put it on a Corvus; it makes life difficult. So what that calls for is like a VisiCalc liberator—not to steal it, but to make it usable. Some of the techniques that have been used have ranged from studying the diskette format, looking at the marks, changing the marks around, going to different checksum schemes, different checksum schemes only on certain tracks, leaving out a track or two, using track 36—not quite reliable, they stopped doing that one. There have been so many schemes, and almost all of them using the odd tracks is probably the best. It turns out there's some way if you go and modify those to get in between tracks on a half-track basis; that's probably been the stickiest to get around. There are programs called nibble copies—I don't know how many there are around the country at the moment—but originally I was really happy because I thought I had the only one. Basically, it just skims off a track nibble-wise by going out and reading directly off the controller, very simple program, figuring out where a gap is, and then writing from that gap a track on another drive. That's been the best of all; it copies everything, you never have to crack a scheme, but you only wind up with a copy, not a usable copy. I wish that they weren't necessary. I hope we get to the point that it just isn't necessary to protect software, but in some cases it is. We have a couple of general approaches that we use around Apple. I think we have an in-house and an outhouse one. No further comment. You're really interested, John Arkley could confirm you as to what our general approach is. We protect—like we just came out with the FORTRAN system, and we did protect it, which is kind of unfortunate. I really like to just pick up a piece of software and it runs under a standard operating system and pull it over, whatever. So until then, it gives a lot of people, a lot of younger people especially, some of the specific clubs, have a lot of fun cracking the disk formats. I'm sure that Cliff Howard is from out east here somewhere; he does a lot of that. Until then, it's really a sticky question. I've got mixed emotions about it myself and no real advice. It's just that there are a lot of techniques that have been developed, and you can usually find someone else that's done one. Most of them are 95% successful from the people that would have—nobody really—most of the techniques are pretty decent; people just don't spend the time trying to do it. There's very few people that really can read the nibbles off and look at the formats and figure out how you protected it. So I think it's working out pretty well as it is. Almost all the good software nowadays, though, is copy-protected, which is unfortunate, and they've got a point.
I don't really—a lot of people run around Apple and they get really excited whenever somebody's discounting it. There isn't really much we can do about it. The excitement is more or less—it creates a problem for legitimate dealers who are giving very good service, so the dealers are more worried about it than anyone else. I don't really get concerned at all; it's just not one of my interests.
Are you implying that the mail-order are not legitimate? No, actually, no, I was poorly phrased. I meant the guy who's got a storefront day in, day out is dealing with customers on a one-to-one basis. He brings them in, he spends an hour going over their needs, gives them demos, shows them what the computer can do, assures them that it will solve the problem that they want to solve before they buy it. A lot of special attention, which keeps people from making mistakes. Aside from that, a mail order—if I was ordering one, I might order it from a mail house if it was the better price. So really don't know what to say. I just—you just buy it from a mail-order house and hope it doesn't break. No, my brother's going to kill me, strangle me. Go ahead.
The software aspect—okay, the Apple software development, how did the Apple software philosophy develop? Okay, I'm going to try to do the best I can. This is really difficult because the major computer manufacturers really haven't done a heck of a job as far as application software. None of them really quite made it. It's still the individual, pioneering type of sphere—people like Bill Budge and Bob Bishop. Plenty of room for creative people in the software world, and the companies haven't really done that well. We started out with our only software was some simple system software. We had the monitor that comes in the Apple II, and we had Integer BASIC on cassette tape and on ROM. On cassette tape, we had Breakout and Star Trek, as I recall. That was the extent of the software. We hired one—I was up to that point in time I'd written virtually all the software there was for the Apple II, all the demos, everything myself. So we hired one applications software person, Dana Reddington. He interfaced with the outside world and got to know a lot of the people that later on became very active in some of the clubs, helped them out with their problems, learned how to program everything from graphics to whatnot.
And we still didn't have it. It wasn't like an application software department, so to write a good program takes several man-months and there's only so much one person can do. So we didn't have six tapes a month becoming available. It's really difficult to trace the evolution. We got interested in doing some application software. We wound up buying a lot of our offerings on the outside, like the controller, going out and arranging for it to be written, and some of the games, Apple Rider, etc. Most of it just somebody else had done, brought up to show us, and we decided we needed that to fill out our catalog more than anything else and purchased it. Right now we have more people working on software than on hardware, but the large majority of them are working on system software for existing and new machines, anything from the raw assembly language driver programs to certain higher-level editors and whatnot for the Apple II and other machines. We have an application software group that's working on like unified tools at the moment that might be applied eventually to database and other business-type programs, but nothing extremely... it's not like that's our main business. We had a lot of problems getting software out, making it available, and we came up with the idea of the software catalog, which is going to be marketed through International Apple Core, through the Orchard, whatever. And that catalog is going to be for user-contributed software where the user documents it and we make it available, but we give limited support on it. We just try to make sure that the documentation is as adequate as can be, and it'll be low-cost software as opposed to our major packages that we put a big investment into, you know, the Apple Riders and Fortran and whatnot. I wish our Vice President of Software were here because he has a lot of other concepts. He was very much in the compiler-writing world and has a lot of good ideas, but they go into another product line somewhere else downstream, and I'll leave that to him someday.