book.chapter Next computer evolution

In 1985, Steve Jobs faced a significant turning point when he was ousted from Apple Computer, the company he co-founded. Despite his young age of thirty, Jobs had already made a name for himself in the personal computer revolution. With over $100 million in Apple stock to his name, he briefly entertained the idea of retirement, even considering a space shuttle adventure with NASA. However, Jobs was determined to prove that his success at Apple was not a stroke of luck and that he could make a significant impact once more. This led him to establish NeXT Computer Inc. in September 1985, investing $7 million of his own funds from selling $70 million worth of Apple stock. NeXT began with a bang, with Jobs assembling a team of Apple veterans who shared his ambition to transform the world. The company's mission was to create exceptional computers for the education sector, and the excitement was palpable. NeXT's high-profile launch included a $100,000 logo design and lavish office spaces. Apple took notice and sued for intellectual property theft, but dropped the case after four months, realizing it only heightened NeXT's profile. Jobs' recruitment strategy focused on attracting top talent, even if it meant overqualified individuals in entry-level positions, like a Harvard-educated receptionist. The company culture was charged with a sense of mission, as echoed by company consultant Allison Thomas. NeXT aimed to release its first computer by spring 1987, but Jobs' relentless pursuit of innovation led to delays. He envisioned a computer that was a breakthrough in design and a fully automated factory that mirrored his high standards. The initial $7 million was quickly spent, prompting Jobs to seek external investors. H. Ross Perot, founder of Electronic Data Systems, invested $20 million for a 16% stake in NeXT. Jobs' leadership style was a mix of charm and intensity, often pushing his team to their limits. While this approach sometimes led to exceptional results, it also resulted in a reputation for being difficult to work with. CFO Susan Barnes acknowledged Jobs' ability to generate numerous ideas, with the occasional gem among them. Jobs' chutzpah was legendary, often leading to a confrontational work environment where neutrality was not an option. His candidness and unconventional behavior gave him an edge in negotiations. Meanwhile, Apple's stock price soared, and had Jobs held onto his shares, his net worth would have been significantly higher. Instead, he watched as his fortune dwindled with NeXT's high expenditure. Despite these challenges, Jobs' ambition and drive remained undeterred as he continued to strive for excellence and innovation.