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.