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This point. it's much more chaotic. this rise and fall, bubble and fall back. it is a confluence of developments that are all happening at the same time. >> small and portable are the watch words for the '90s for manufacturers showing their wares in chicago this week. sony has a new camcorder that fits in your hand and a combination tv/vcr that fits into your purse or briefcase. >> if you have one of these and one of these but you don't have one of these you are missing half the fun of owning a computer. this is a modem, with it you can turn your computer into a window on the world. >> i remem...

The mindset was the computer as the brain. and it was a threatening concept. >> the 1980s is a period of time when the big, impersonal, giant machine that lives in a huge, air-conditioned room someplace suddenly becomes something that sits on your desk. >> something is happening out there, something that's expanding your world. small computers are happening. >> as soon as we have intelligent machines creeping into our daily lives, into our factories, into our hospitals, into our businesses, then it's going to be a new world out there. >> computer stores have become the neighborhood soda shops ...

Electronic gadgets from wristwatches to microwave ovens. >> the mushrooming industry gives birth to a new high-tech cult and a place called silicon valley. >> the magic part of silicon valley is that there was this boiling pot of people who were involved in technology, involved in science. >> silicon valley was hp, sri, xerox park, and stanford university. that was a hell of a powerful combination. >> there was these two cultures, engineers with phds and hobbyists. >> it was a time when there was a lot of social ferment in and around the bay area. there was a lot of counterculture people. so y...

Macintosh is designed for simplicity. using a palm-sized unit called a mouse. >> it was the first time that a machine was personal, it was simple, it was friendly. >> it took the computer out of the exclusive domain of geeks and nerds and people who had memorized the commands and put it on the desk of everybody. untrained, nontechnical people. >> stores around the country put them on sale today, and analysts say it's a good bet that macintosh could soon be the biggest apple of the industry's eye. >> it's got its best years ahead of it, eventually i want to be able to carry my mac around with m...

Technophobia. fear of these bloodless little wizards. the manufacturers are trying to overcome it by making them what they call user-friendly. >> isn't that pretty? now what do i do? >> making computers easy enough to use for a beginner, it wasn't always true. people had never encountered this stuff. >> hold down shift and press -- >> so there was a great disconnect between the ambitions of the apples and microsofts and the realities of people trying to use these things for the first time. >> right now, if you buy a computer system and you want to solve one of your problems, we immediately thr...