Steve Jobs on Apple's Product Line: iMac, iBook, and G4

Here's to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes, the ones who see things differently. They're not fond of rules and they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them, but the only thing you can't do is ignore them, because they change things, they push the human race forward. And while some may see them as the crazy ones, we see genius, because the people who are crazy enough to think they can change the world are the ones who do.

So... Thank you. So... It's... Thank you for the kind welcome. It's great to be here in Europe. We've got a lot to show you today. We had a little mishap last night over at the exhibit hall, where we'll all be going after this keynote. We had a water main break, and it flooded the floor of the exhibit hall, but everything's been cleaned up, and the exhibit should be perfect by the time we get there this morning.

The two one-liners I've heard is, well, something had to leak, and the other is, how fitting, since you're introducing aqua today. So, let's get going. I'd like to go through some of the new products we introduced less than eight weeks ago today, and maybe a few new things here today as well. So, to start off with, some of you... We heard some of you didn't love our old mouse, and so we made a new one. It's fantastic, if you haven't seen it. It's optical technology. There's no moving parts. It's very high precision. It works on any surface without a mouse pad, and you never have to clean it.

It's really great. And some people have asked, where's the button? Well, the entire surface is the button. And it fits any hand, big or small, adult or child, right or left. It accommodates any style. Some people like to push with their finger. Some people like to push with their whole hand. It works with any style, and you can adjust the force on it. And it is now standard on every desktop Macintosh. It comes for free included. To go along with the new mouse, we have a new keyboard. The new keyboard has the same layout as the very famous Apple keyboard that everybody loved, and it's got 108 keys. It's got full-size function keys. It has volume control keys. It has a key to eject the disk. It's very nice.

And this new keyboard is also standard on every Macintosh now with the mouse. So I hope you love these. So let's look now at the products that they come with. This was our product line, of course, until eight weeks ago when we added the G4 Cube. Now all three of our desktop computers are new. We changed our entire desktop line. So let's take a look at each of these. The new Macintoshes, we introduced four new models of Macintoshes. And they all have those things that make an iMac an iMac. And those things are award-winning design. iMacs won almost every international design competition in the last two years.

You can take an iMac out of the box and get onto the Internet in less than ten minutes. And we now have millions of users to prove this, over 90% of them on the Internet. iMac is the fastest consumer computer out there with very fast G3 chip. It's got every type of interface you'd want, a modem, Ethernet built-in, USB, and FireWire on all but the lowest-end model. It's got a great Harman Kardon sound system, the best sound system built-in to any consumer computer. And it's got a slot-load drive, either a CD or a DVD drive, which is really nice. You don't have a tray, which kids love to use as cup holders and things like that. And there's no fan. The brilliant engineering that our team did to allow this to cool with just air, without a fan, means that it's really, really quiet.

And because these machines are so quiet, you never turn them off. They just go to sleep when you walk away from them in a minute or two. And then you come back and you hit any key and they wake up in less than 15 seconds. So you don't have to turn them off and reboot them every time. Because they're so quiet, you just leave them on. We also introduced four new colors. Indigo. Ruby. Sage. And snow. Sapphite, actually, a little bit different. And snow. All new colors. And with all these new colors, faster Macintoshes, all these great features, and the new optical mouse and keyboard included in each one, we also introduced a very new low price point of $799 in the U.S., or these prices in U.K. pounds, French francs, and German deutschmarks, all with VAT included.

So these are the lowest price iMacs ever. And we're working to make them even lower cost in the future. So we're very, very proud of this. Now, we wanted people to know that we have these great new colors. So we did four new commercials to show off the new colors. And we also did a commercial on the mouse, an advertisement for the mouse. So if you'd like, I can show them to you. Would you like to see them? Yeah? Okay. Well, let me go ahead and run them right now. Well, it's one for the money, two for the show, three to get ready. Now, go, Pat, go, but don't you step on my blue suede shoes.

Well, you can do anything but take over my blue suede shoes. Well, you can knock me down, step in my face, slam the money all over the place. Well, do anything that you want to do. Honey, lay off them shoes and don't you step on my blue suede shoes. I said I love a girl and Ruby is her name. Hear me talking, this girl don't love me, but I love her just the same. What I say, oh, Ruby, Ruby, I will want you like a ghost.

I'm going to haunt you. Ruby, Ruby, Ruby, will you be mine? It's not easy being green. Having to spend each day the color of the leaves. When I think it could be nicer being red or yellow or gold or something much more colorful like that. Oh, oh, oh, oh, oh, oh, oh, oh, oh, oh.

In a white room with black curtains near the station. Get your motor running, head out on the highway. Looking for adventure in whatever comes our way. Yeah, I gotta go make it happen. The world ain't enough. So, this is one of the coolest things I've ever seen in my life, and it's why we do what we do.

We, of course, we're great at spreadsheets and databases, but I think one of the things that really distinguishes Apple is being at the intersection of technology and creative expression. And I think it's products like this, combined with IMAX and Cubes and all the products that we make, that allow people to express themselves in ways they never could before. And this is an example of that. You can also take your iMovies now, and you can compress them, and using our homepage web tool, you can actually put them on our website, and we'll host them for you, and anyone can come in and stream them from any computer now. So you can actually take your movies and put them on the web, and anyone can come and take a look at them if you want.

It's wonderful. So, iMovie 2, new on all the new IMAX, and that's what's new with IMAX. So now, let's take a look at the G4 tower. Power Mac G4. Power Mac G4 is an incredible product. As you know, you can open it up and get to any component in a matter of a few seconds. And it's powered by the incredible G4 chip. The G4 chip, inside it has what's called a velocity engine. And this velocity engine runs at over three and a half gigaflops. This is really fast. Gigaflop is a billion instructions per second. Now, we supply G4s running at 500 megahertz.

And some people have asked, well, how fast is that relative to 1,000 megahertz or gigahertz Pentium III? It would seem like it would be slower, wouldn't it? But it's not. And so what we'd like to do now is show you how fast a 500 megahertz G4 chip is. I'd like to ask Phil Schiller, who's our vice president of worldwide product marketing. Hey, everyone. Hey, Steve. What have we got here, Phil? Oh, we have some great machines to set up in a little side-by-side battle shootout here for you. Up on your left-hand side of the screen, we have a Power Mac G4 running with a G4 chip at 500 megahertz, running Mac OS 9.

On the right, we have an Intel Pentium III 1 gigahertz class machine running the brand-new Windows 2000 Pro. And we're going to exercise these systems and really show what the processors can each do. And to do that, we use Adobe Photoshop. We do this for a couple reasons. First, Photoshop is what's used by most of our creative professionals to get their work done. This is a serious application and really needs the maximum performance any computer can deliver. Second, Adobe works really hard to take maximum advantage of these chips. They work to enhance it for the velocity engine inside the G4, and they work to enhance it for the instructions inside the Pentium III, so they get everything they can out of both of these systems. And third, we can actually take an image and a set of steps from an artist and run it, the same image, the same steps, on both machines and see how they do.

So that's what we've done. We've gotten a Photoshop image, a large graphic with a lot of steps created by a professional artist who uses Photoshop every day to get his work done. In fact, this image was used to create a poster for a movie introduction. So we've brought them both on both machines. So, Steve, if you can help me, if you can help drive the Mac, and I'll drive the PC. And we're going to bring up Adobe Photoshop. And on the count of three, we're going to launch the same set of actions on both machines and see how they do. So on the count of three, three, two, one, go. So we're bringing in some images. We're going to transform those images. We're going to scale them and skew them and rotate them and bring them around the screen.

Pentium is thinking. It is working. We have an hourglass. And that will help us to know that it's hard at work. Again, this is an actual file created by an artist. It's got over 200 actions in it. We're using gradients, brush strokes. We're using fills and transforms to actually construct this movie poster. A lot of our customers do this many, many, many times every day. So using masks, selecting regions, we're using lighting effects. Now we're bringing more layers to the front with brush strokes.

You can see the Power Mac has begun a radio blur effect on the left. All right, the Power Mac is done. The Power Mac is done.

Pentium is still working there. It doesn't give you much feedback, but you have the hourglass. It's calculating probably the radio blur right about now. Pentium is done, ladies and gentlemen. Okay. Now, what we see here is 500 megahertz G4, 1 gigahertz Pentium. Yes. There we go. And it took 108 seconds for the Power Mac to complete this task.

The same task took 124 seconds on the Pentium 3 running at a gigahertz. And if you calculate this, it yields the result that the Power Mac G4 running at 500 megahertz is the equivalent of a 1.1 gigahertz Pentium. 1.1 gigahertz Pentium in performance. So we thought this was great, but we got to thinking. If one G4 was this fast, two brains are better than one. So what if we took two G4s running at 500 megahertz and said, how does that compare to one Pentium 3 running at a gigahertz?

Well, let's find out. So we happen to have another Power Mac with dual processor G4s right here. So now what you'll have up on your screen on the left is a new Power Mac G4 with two 500 megahertz G4 chips in it. On the right, that Pentium 3 with the fastest 1 gigahertz Pentium class processor in it. Again, we'll bring Photoshop to the front. Three, two, one, go. So the same image file, the same actions. Now, of course, we can take that same file and run it from the single G4 now on dual G4s, and Photoshop automatically has built-in support for the dual processor G4 chip.

And so you'll see much faster speeds now as it's breaking up its tasks across the two processors. So the Power Mac is laid in its background with its transforms and its gradients, grading its gear. And on these lighting effects and radio blurs and the things that really push the processor performance, the Power Mac just zooms far ahead.

And the Power Mac is done. The Pentium 3, ladies and gentlemen. OK, we're not going to wait for it to be done. We know how long it will take. So what we have here is the same 124 seconds for the gigahertz Pentium 3, but only 61 seconds for the dual processor G4. And if you do the math, what that says is 2 G4s running at 500 megahertz each equals a 2 gigahertz Pentium. You can't buy such a thing, but when you can, it will be equal. So it's amazing.

And what are we going to do with this? Well, it's running at over... Seven gigaflops and we want to get this performance out to everybody. So as you know, we make three models of power max and What we're going to do is take the foreigner megahertz model and keep it a single processor But we've now made the 450 and the 500 megahertz models dual processors standard built-in Standard you can't even buy them with one processor anymore and These are incredible machines. We've gone even further. We've built in gigabit Ethernet on the motherboard now It does not even take a slot. So you have gigabit Ethernet built into every one of these three power Mac models We've also increased the mass storage to 20 30 and 40 gigabytes we've included the new optical mouse and pro keyboard and These incredible machines with all of this are the same price as before So This is what we've been up to with the power Mac g4 and Again based on this incredible g4 chip two brains are better than one So we're going dual processor in the two high-end models power Mac g4 Now we have something new on the g4 today the g4 ships with Pretty fast 3d graphics rage 128 pro chip is standard, but today we're introducing What many believe to be the fastest graphics chip in the land, which is the new ATI Radeon graphics chip?

The The ATI Radeon is over twice as fast as the rage 128 pro and It's going to be a hundred dollars extra if you order a computer on the Apple online store $100 extra for the Radeon and we have a demonstration to show you right now Phil Let's give him a demo of the Radeon versus the rage 128 I'm really excited to be able to show this to all of you today for the first time This is the first time we get to show this a power Mac with a brand new Radeon graphics chip in it What we have up on the screen are two power Macs that are almost identical They have the same processors same memory same disks There's just one small difference the power Mac on your left has a rage 128 pro and the power Mac on your right Has the brand new Radeon card in it now?

We're going to do a demonstration using quake 3 arena from id software a lot of you know quake 3d It's great quake 3 arena because it is an open GL application in fact It is the most popular open GL application in the world and as such really can exercise 3d graphics and take maximum advantage of all this new hardware performance and With this demo we can go through a script that will run through as fast as it can on both machines To see whoever gets done first is fastest Now some of you may not like violent game demo So if you if you don't you can certainly choose not to watch But I promise you that no humans were used in running the software No humans were injured in this test so Steve if you can help me select the demo and We'll on the count of three quick play three two one go And this is going to run through every single frame on both machines as fast as it can So far loading the same time it's using the hard drive same hard drive So far loading the same time it's using the hard drive same hard drive Now still finishing on the left

So What many believe to be the fastest graphics chip now available is shipping is going to ship starting today in volume On any power Mac g4 ordered at the Apple Store $100 extra Radeon graphics So that is what's up with the power Mac g4 Next We introduced the power Mac g4 cube an incredible new product from Apple It's a power Mac through and through the nickname. We call it as the g4 cube and This thing's remarkable. We have taken an entire power Mac and Shrunk it down into a tiny little cube. That's 20 centimeters on a side Less than 8 inches on a side All right power Mac g4 cube if you want to see how big this is relative to a tower, this is the power Mac g4 tower This is the cube And yet it has the same power inside it We also built in a DVD drive right in the top there you can see It's kind of cute. Whoops. There we go, you know and And The other thing that's remarkable about this is normally it would take a giant fan to cool all this power in such a tiny space but again Our engineering team did some brilliant work and figured out how to cool it with a brilliant air

Convection system that does not require a fan and so the g4 cube runs virtually silent Right on your desktop. It's amazing Inside this box is a g4 chip Up to a gigabyte and a half of memory. You can configure it up to a 40 gigabyte disk drive It's got all the iO you'd ever want built-in modem built-in Ethernet USB and Firewire It's got fast graphics or faster graphics if you want to order it BTO with a Radeon card And Optionally it has airport wireless networking and the antennas are built into every cube so it's ready for an airport card if you want to drop one in and The cube comes standard not only with the new optical mouse and keyboard but a set of beautiful Apple designed Harman Kardon speakers these things sound fantastic This comes standard with this stuff in this configuration of 450 megahertz g4 64 mega memory 20 gigabytes of storage rage 128 graphics a DVD course Firewire and iMovie for $1,799 and in the local currencies here these are the prices So we're very happy with this we also introduced some new displays We have three basically new displays all these displays Connect to the cube and now to the tower as well with one cable and this one

universal cable carries video both analog and digital It carries USB and it carries power So these new displays are actually powered from the computers You don't have to have a separate cord to plug them in We have a new 17 inch CRT. It's a flat Dimetron. It's very nice It's got two USB ports built in it's got color sync built in and it's powered from the computer one cable going back to the computer Second display is a new 15 inch flat LCD. This is very very sweet. It's 10 by 7 resolution It has two USB ports It has touch controls on it to adjust it and it is also powered from the computer It makes a phenomenally nice match with the g4q really beautiful And we have a new version of the cinema display that again has that one universal connector to connect it to The tower or the cube and you don't need a separate power supply so three new displays now, I've got a video I'd like to show you so you can get a really good look at what the cube looks like and I'd like to roll that right now In first grade when I was painting with poster paints, I painted a boat and I made the smoke go the right direction. And my first grade teacher told my mom, you should nurture his artistic ability. I've been a visual person ever since. I was an art director. I'm a designer.

And I just love how the Cube looks. I mean, it's just the coolest looking computer on the planet. The first reaction I had to the size of the G4 Cube was really one of amazement, because if you had asked me in advance how small can a supercomputer be, I never would have come close to what I saw. Three and a half gigaflops. Now, that is three and a half billion operations per second. It is staggering by any measure. Ten years ago, it was unheard of in anything smaller than a washing machine. The heart of the G4 Cube is incredibly complex. I mean, it's a supercomputer. But we were looking for a final design that was very simple. A design that left you with a sense of, well, of course, that's the most natural, the most elegant solution possible.

All the kind of functional characteristics are taken care of, but then there's another level of aesthetic that just lifts it and gives it spirit. Most computer companies would have said, this is an impossible task. They would have walked away from it. I mean, to take a computer four times its size and pack it down into an eight-inch cube, it seems impossible. But we did it. Being this big and being able to sustain one, two, three, or four gigaflops, we are looking at 2,000 times the volume efficiency of, say, a Cray supercomputer of the 1980s.

The G4 Cube starts out with 64 megabytes of memory, expandable up to 1.5 gigabytes of RAM. It starts with a 20-gigabyte hard drive, configurable up to 40 gigabytes. It's got all the I.O. you could ever want. Ethernet, USB, firewire, everything you need is in the cube. The Adobe user is going to love it. It has everything they require. It has the power of a G4, but it has the elegance and the design element that they care about. The G4 Cube is designed to go onto your desk, so we saw that it was crucial that we could remove both visual and audible clutter. So the team figured out a way to actually remove the fan. The product's air-cooled so that it's virtually silent. Instead of sitting down at a computer that's humming and you kind of feel technology in the room, you're sitting down in the silence where you can sit and have an idea.

The DVD has a nice element of surprise in the way that it rises from the top of the cube, just like magic. You flip it over, there's this little latch that you hit, and it pops up, and you can pull the entire core out. It almost looks like this nuclear reactor core, you know, something that you'd see in Mission Impossible. There's easy access to all the RAM, to the airport cards, to the graphics cards. You don't have to then say, gee, I'm going to upgrade the memory. What expert am I going to have to find? It's something that really an eight-year-old can do in about 15 seconds. Along with this amazing little cube, you have a new keyboard, a professional new mouse. It's optical, so there's nothing to cog or jam. We reduced the speakers to an elemental form, the Sphere. They're elegant, very simple, and they sound, they sound outrageous.

I love the new flat panel display. I just think both the big one and the smaller one are just the most beautiful thing. Other people are totally in love with the way the new CRT looks. That see-through back end is, it's just so Apple. The new G4 Cube is the ultimate desktop movie-making machine. It comes with iMovie 2 software, or if you're a professional, you can step right up to Final Cut Pro. You get an idea, you walk out, you film it, you bring it back, you download it through Firewire, you can play with it in Final Cut Pro, you know, add type, whatever, and boom, it's done. Whether you do publishing, web design, video editing, this machine was made for you. If I had only seen the Power Mac G4 Cube, I would have been very impressed. I would have said, this is going to be a very important product for Apple and for users. But it didn't stop there. From one experience to the next, it just kept getting better and better. I left, kind of scratched my head, thinking, is there anything that's missing from this product offering? I'm still thinking, because I don't think there is.

I think the thing that I'm most thrilled with is that the products are, I mean, they are very different, but together they do relate as one very harmonious family. Steve loves doing ta-da and pulling the sheet off of stuff, and it was just another one of those ta-da's where you go, holy shit, he's done it again. I think the G4 Cube may be the most incredible product Apple has ever engineered, and if you haven't seen one in person, I would suggest that it's a great opportunity over at the Expo to go actually see one and sit down and test drive it. It's a remarkable, remarkable Macintosh.

Now we've just finished creating two TV commercials that I would love to get your opinion on. I would love to know which one you like better, if you like them at all. So I'm going to run them, and I'd like you to tell me, based on your applause, which one you like. So there's two of them. Let's run the first one. Okay, let's run the second one.

According to quantum theory, tremendous energy can be compressed into a tiny packet. A tiny packet, indeed, presenting a supercomputer in an eight-inch cube. Good. Well, we'll run them then. Oops. Okay. So this is the new G4 Cube. And again, these three new desktop products, all new models. Everything less than eight weeks ago. So this was our product line as of eight weeks ago. But I have something new for you today in the iBook space.

iBook has been a wonderful product. It's been very successful, and people love their iBooks. And so we've got today some new iBooks. Let's start with iBook. What was the number one requested feature of iBook? Right. Number one requested feature is Firewire and iMovie. And so all the new iBooks include Firewire and iMovie too. We couldn't rev the products without also revving the colors. So we have two new colors for the iBook regular edition today. And the first is Indigo, and I'd love to show you right now. Indigo.

And get a chance to see these up close, they're refined in a lot of ways, they're really beautiful. So this is indigo. Now, the second color we wanted to go a little less conservative, a little more fun. And so the second color is called Key Lime. It's going to be available on the online Apple store exclusively. And I'd love to show it to you now. Don't you like buying on the Apple online store? Key Lime.

Johnny Ive and all the designers are in love with this one. This is the one they're buying. So we wanted to bring it to market and see if other people love it as much as they do. I think they will. You know, we have a bunch of great resellers in Europe here. But we also have a fantastic online store that you should go check out. It is maybe the best online store in the world. And we put a lot of energy into it. And we would love for you to have an experience of going and buying a keyboard or mouse or maybe an iBook from it and see what you think. So this is Key Lime right here. And in the iBook, 366 megahertz G3s, 64 megabytes of memory, 10 gigs of storage. A Rage Mobility 128 graphics chip.

By far the fastest graphics chip that ships in any portable except for our Power Books. And CD-ROM, Firewire and iMovie for $14.99 or these local prices which also include VAT. And we would love to be able to sell them even cheaper if you guys could help get the euro up a little bit. So, the new iBooks, you can now make movies with them. We also, as you know, have iBooks Special Edition. Now, what was the number one requested feature for iBooks Special Edition? Right. The DVD drive, the ability to play movies.

And so, obviously, iBooks Special Edition now has a DVD drive. And we have a refined graphite now which I'd love to show you. Let's bring it up. It's even nicer. And the iBooks Special Edition is also going to be available in Key Lime on the Apple online store. So, you can get either model in Key Lime. Yes, I know.

Got to try it. So, 466 megahertz, G3, 64 megabytes, Rage Mobility 128, DVD-ROM drive, of course, Firewire and iMovie. Same $17.99 price or local prices of this. So, in the Special Edition, in addition to making movies, you can now play movies. So, these are the new iBooks. Both models are available today. And I think you'll really enjoy them. They're really, really good.

So, this is our product line. We're really happy with it. I think it's the strongest product line that Apple has ever had. Now, I'd like to switch gears. I'd like to talk about software. The first thing I'd like to talk about is a really great app that's coming out that runs on all our products. And that is the new Microsoft Office 2001. And for the first public demo... Public demo. Yeah. It's really good. And for the first matter of fact, isn't it great that the Mac is going to have the best version of Office? You know? There's a team.

There's a team of a few hundred people at Microsoft who love the Mac. And they work night and day to make the version of stuff on the Mac better than their colleagues in the rest of the company. Now... We need to help these guys. Because as you can imagine, they don't get a lot of pats on the back in the lunchroom. So, they depend on us to give them some positive feedback. So that when they go back to Redmond and tell everybody that the best version of Office now runs on the Mac... You know, they can have a little enthusiasm. So, please give a warm welcome to Kevin Brown, the general manager of the Mac business unit, who's going to show us.

Thank you very much. Good morning. I'm delighted to introduce Office 2001 for Mac to the European audiences this morning. We've been working really hard on this product for two and a half years. And this product is the fulfillment of three promises we set out to keep back when we started building this. First, we wanted to make a product that's more Mac-like than any product Microsoft has ever introduced. And at the same time, is more compatible than any product we've ever introduced. That is compatible with Office for Windows and compatible with Windows generally. The second promise we wanted to keep was to make a product that helps you communicate. The Mac, more than ever, is about communication. And we wanted to make a product that turns the suite itself into a communication tool. And finally, we wanted to make a product that is simpler than ever to use.

So, Office 2001 is that. You'll see it become available broadly in Europe in November. Some places earlier, in some languages earlier. We're actually going to show you the French product this morning. When I said that we wanted to make a product that helps you communicate, what we really did was, for the first time ever, to introduce a new application to Office. And that's called Entourage. Entourage combines powerful email with a calendar, an address book, tasks, notes, all of the things that you need to consolidate into one place to keep your personal information together to make running your life easier. Let's just take a look at what Entourage does for you. It's got email, as you can see, and there's some color coding. The color coding is categories, and you'll see some flags there and links. You're able to combine all of these things in any element of Entourage.

Let's go ahead and take a look at the address book. The address book, as you see, the list is color coded as well. These are categories, which, by the way, when you synchronize all this information with your palm handheld, all the category information goes over as well. Let's take a look at one of the categories, or I'm sorry, one of the contacts, and you'll see that we have this summary pane that's shown as a preview to anything that you select. When you open up the contact sheet, you'll see that there's plenty of power here in the element. We want to just change the category to something like exploration error, and you'll see that the color coding changes along with it. You can put a picture in there. This summary information pane is available only on the Mac. It's not found in any Microsoft product on Windows. The product also has a calendar.

It's a powerful calendar, and here you see the color coded information again, so you can keep track of what are your personal appointments, what are your business appointments, what are your appointments attached to any of these, any of the categories that you assign to things. This color coded categorization is available again only on the Mac. In fact, Entourage as a whole is available only on the Mac. Only on the Mac. I said we wanted to make a product that was simpler, and so what I want to show you is just a few things in Microsoft Word that deliver on that promise. First is this project gallery, which again, as you can imagine, is available only on the Mac. The project gallery allows you to select these designs for the types of projects we see people trying to complete with Mac Office all the time.

So here we're going to create a newsletter or a bulletin. With the project gallery, many of these designs come with a design wizard, which helps you fill out and do complex tasks. And you'll see that in the background the document is changing, so you don't have to pick out what changes in the design in a tiny little preview. Here we'll add a table of contents. You can also do very complex things like change the entire look and feel of the document by changing the color scheme. And again, it dynamically happens in the back. The project gallery and the design wizards are available only on the Mac. Let's go ahead and take a look at another tool, which is available across the suite, and this is called the formatting palette, or in French, palette de mise en forme.

French is not my first language. The formatting palette allows you to select pieces of information and make changes to them. And these changes are things that you formerly had to go into dialog boxes, We're going to do formatting tasks. The formatting palette is, it actually adapts to what is selected. So as Irving selects the picture, you'll see some picture tools come up. We can change the picture to black and white or to grayscale. We can also, by the way, people are using more pictures, more graphics than ever in Office. And so we've added a complete set of picture tools to Office, the ability to correct red eye, to correct scratches in the picture, and also to do things like apply powerful image effects. Like this, we can simply, with a couple of clicks of the button of the mouse, we'll be able to change the entire look of the picture and make it fit better in the document that we're creating.

The formatting palette, the design gallery, these picture tools are available only on the Mac. Let's go ahead and take a look at, there's a ton of new stuff in Excel, but I don't have time to show you that today. I want to show you one final feature, and that is in PowerPoint. Now, PowerPoint is not just a tool for creating presentations that you show to a room like this. PowerPoint is used for communication broadly, and we've taken that really to heart in this version. With PowerPoint, the most important thing is to be able to put your thoughts down on screen and then be able to share it with anyone. But we know that not everybody has PowerPoint. So we made it possible for you to actually save this in a format and show it in a viewer that's used by over 50 million people worldwide, and that's the QuickTime viewer. You'll be actually able to save this presentation as a QuickTime movie, mail it around, and absolutely anybody can see your thoughts.

Go ahead. So here's that PowerPoint presentation. You saw it in PowerPoint. Now we're just going to see it as a movie. Pretty cool. That's definitely my favorite feature in the entire product.

PowerPoint Movies is available only on the Mac. Of course, you can play a QuickTime movie anywhere on any platform, so the feature is a great cross-platform feature as well. What you're seeing there is the new packaging for Office. This is a radical new design you've never seen anywhere else. Definitely not any Windows product that Microsoft ships. Thank you very much for your time this morning. Go to our booth and take a look. Thank you, Kevin. Kevin and his team are doing a great job up in Redmond, and we're working very closely with them on Office and on Internet Explorer and some other stuff, and it's great.

So Office 2001, coming in a few months here. Now, brings us to Mac OS X. Mac OS X is the future of the Macintosh, and it's turned out incredible. We're not done yet. We won't ship a final version until early next year, but we're very far along. The rollout schedule for Mac OS X is as follows. We announced it this last January. We shipped a preview of it to our developers in February, another preview in May.

This summer, we said we would have a public beta, and we're going to release in early 2001. Focusing on the summer public beta, we're going to release that today. The public beta is in English, French, and German. All of those languages are on one CD-ROM, but we have three separate packages because of a little manual inside. And we've held this in our hands for a long time.

Starting today, we're going to let you hold it in yours. This is what it looks like. There's a disk inside, a little booklet to get you started. Mac OS X. We have to print these things up and ship them around, so we're going to charge a nominal fee of $29.99 in the US for these prices, local over here for it. You can try it out. And you can purchase it on any one of our web stores, again, in any of the countries. You can also purchase it at the exhibit hall in our booth today.

So I'd like to go through the architecture of Mac OS X. We start with Darwin. Darwin is the foundation kernel. It's got all of the multi-threading, the multi-processing, the protected memory, the modern networking, all of the super modern plumbing that we wanted to put in to Mac OS X. And it's based on the Mach 3 microkernel and free BSD Unix. So it's very, very open. Matter of fact, it's so open, we made it open source. So you can go and download the whole source code to Darwin. Tens of thousands of developers have already done so, and we have an active community helping us ensure that Darwin is the most stable, reliable, highest performance kernel out there.

Now, on top of Darwin, we've layered some incredible new graphics technology. Quartz, our 2D graphics, is PDF based. Adobe defined a specification for PDF, which we have implemented our own version of, which is fantastic. As you know, when the publishing industry is moving to PDF workflows, PDF is the standard on the web for high quality graphics. And it is now built in as the primary 2D layer in the Macintosh operating system in Mac OS X. We've added transparency and some other great effects, which you'll see in a minute. We've built in OpenGL for 3D graphics, and of course, QuickTime for media.

All built into Mac OS X at a fundamental level. On top of this, we've layered three APIs. Classic lets you run existing Mac apps without modification. However, you do not get all the new features. You do not get the new user interface. You do not get protected memory. If one classic app crashes, all the classic apps that you may be running at that time will probably crash. But you can run your existing apps without modification. Now, the next API is Carbon. Carbon is something that takes developers a few months to tune up their classic apps, to take advantage of all the new features. And every developer we have pretty much is carbonizing their apps right now.

And a carbonized app does get all the new features of Mac OS X. They just pop to life. And lastly, Cocoa. Cocoa is the most advanced object-oriented API out there. It's a wonderful way to write new applications. You can write them up to 10 times faster than you can with any other technology that is now out there in the mainstream. So these are our APIs. And across all of them, we have a new user interface called Aqua. So this is the architecture. Now, there's some new things in the public beta that you may not have seen before unless you're a developer. The first one is OpenGL. The second one is a full implementation of Java 2.

And we've been working very closely with Sun. And not only is our Java 2 implementation really fast, but we've tied it in to all of the Aqua user interface elements. So it's beautiful. Looks very, very much more beautiful than any Java implementation I think you may have seen. We support symmetric multiprocessing. So you can take advantage of your dual processor G4s in the most perfect way. And here's an interesting one. In PowerBooks, at this point in time, we were not expecting to support portables that well. And yet, even in the beta, the power management is spectacular. And here's another thing. On portables today, when you wake them up, when you wake up a PowerBook, it takes anywhere from 8 to 22 seconds, depending on the state of the networking.

If the networking is turned off, it's 8 seconds. If it's turned on and not connected to anything, it can be up to 10 seconds. If it's turned on and not connected to anything, it can be up to 22 seconds to wake up. For any of these conditions in Mac OS X, your PowerBook will wake up from sleep in about one second. Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! Woo! It's actually really startling. In the time it takes you to open the lid, it's pretty much woken up. It's neat. You can hide the toolbar if you want to. You can also. Make a mess of the icons any way you'd like. And in the dock, some people were having trouble keeping track of what was an application and what was a document.

So we've separated them. We put a line in the middle and applications are on the left side, documents are on the right side. You cannot put one in the wrong place. So very simple to keep track of things now. And the dock is just fantastic. In response to some of our professional customers who've said they love the Aqua interface, but they'd like to get rid of the color sometimes for dealing with very important color calibration in documents, we've put in a professional mode which basically turns all the color in every app to graphite. Very simple. We have a new QuickTime player that's fantastic. It's got the tone controls up here, as you can see. And it does not have the drawer anymore for the QuickTime channels.

You push the button right on the player and the channels just pop up right in the window, so you don't have that drawer popping out. We've also added an MP3 player and a little audio player that plays CDs. In Mac OS X in the beta, we also have a fantastic version of Internet Explorer that's been carbonized running on X, and that joins a few dozen applications like a whole new mail application and all new system administration applications which are shipping with Mac OS X. So what I'd love to do now is give you a demo.

This is one of the screen savers. It goes and finds all your icons and makes a screen saver. Okay. So, Mac OS X. Now, for those of you that have not seen Mac OS X before, it's a little different in that when you move windows around, the whole window moves around with its contents, not just an outline. And when you resize a window, it actually does it in real time. You can see the scroll bars moving, et cetera. Very, very simple. And it's just unlike anything you've ever experienced on a Mac before. Very nice. Let me give you another cool thing about Windows 2. When you have a multitasking system and you get panels, you get alerts or dialogues, right now on the Mac, oftentimes it freezes the Mac.

You cannot do something else until you dismiss those dialogues, as an example. But even if you could, you would get confused as to which window that dialogue was associated with. So we've solved this problem in a wonderful way. Let's say that I want to save this document. I'm going to save as. That's the panel. It's attached to the window. It just comes right down here. And this is the save panel. Now, you might say, well, what if the window is really small? Well, that's what happens. You might say, you know, what if the window is over near the edge of the screen?

Well, that happens. So the level of fit and finish in Mac OS X is very, very high. Now, I want to show you something having to do with the save panel that illustrates the philosophy of Mac OS X. We've gone through the OS and we've looked at everything and asked, how can we simplify this? And how can we make it more powerful at the same time? So this is an example. In the save panel here, you notice this is the simplest save panel you've ever seen. And you just name the document and a pop-up list gives you all your favorite places, right, to the desktop or wherever, and all the recent places that you've saved documents.

But what if you want to save it to somewhere that's not on one of those lists? Well, then you just push this button and you get a full browser interface where you can go through and save it anywhere you like here. You know? And if you think you might go back to that place, you can add it to the favorites with a button. And guess what? It'll just show right up here now in your list of favorites. So it's very, very easy to save things. It's very, very easy to do things without a lot of complexity. But when you need the complexity, it's right there in a very elegant way. Very simple. Okay.

I'd like to show you one other thing. Mac OS X features the ability for developers to anti-alias all of their text. And this gives you an example of what text looks like in our system. Again, just to resize a document. Look at this. All real time. Very simple. Okay. Now I'd like to talk about the Finder. First thing about the Finder, the new Finder, is if you want to use it like a Macintosh, you can. You can just drag a hard disk out here and click on it. Up pops a window. Very simple. It's an alias. You can just drag it to the trash and throw it away if you want to. So you can also hide the toolbar or show the toolbar.

And you can go in here and say, well, I want to go into my hard disk or I want to go into my network and just see everything on the network. Very simple. So the network has been integrated right into the Finder. If you want to go on the network, you just go back here and go on the network. If you want to go on a disk, you go on a disk. And I could go to users here and I could go into myself and I could go into my documents. Now, if you'll notice, there's a pop-up list here that lists everywhere I've just traversed. And I can go back to computer if I want to. And I'm back at the beginning. I also have a back button. This says go where I last was. And I flip this and I'm back at documents. We've also built a bunch of shortcuts into the toolbar.

So I have a button for documents, a button for applications, a button for home. So I push documents and I'm in the same place I was that I just traversed. Users, home, computer. Very, very simple. Very fast to navigate around. We also have icon view, list view, and we have a new view, which is a browser view. This is also very fast. Again, you can just traverse this to users, myself. I'll go into documents here. We even have a browser here that will let me preview documents here. It will actually let me preview. Let's see. Where is one? I think it's in here. I've got a QuickTime VR.

I can just preview these if I want to. I can also preview a movie if I want to. And I can even preview MP3 files. So very simple. All sorts of different ways to look at my files. All righty. All righty. Now I want to show you one of the coolest features of Mac OS X.

It's called the dock, and it's a way to organize our work, organize our applications, organize our documents, organize our miniaturized windows. And here it is down at the bottom of the screen. I can place applications and documents and miniaturized windows in the dock. In my applications, I can just move the order of anything around just by dragging it. Very easy to do. I can drag something out of the dock if I want to, and it will break the link because these are all just links to where the applications are really stored in the file system. And let me go ahead and add some more items in the dock. I will go back here, and I will go to – whoops. I'll go back, show the toolbar, and I'll go to applications, and let me grab a bunch of apps here.

And I just drag them down the dock. And as I add more apps to the dock, as you see, what happens is the dock simply gets smaller. And as I drag them off, I break the links, and the dock gets larger. Right? Very simple. Now, I can also resize the dock to anything I want. I can make it very small like this if I want to, or I can make it as big as it can be. But let's say I put a lot of applications in, or I just like it this small. How am I going to ever find anything in the dock? Well, let me go ahead and turn on something in preferences. It's called magnification, and now it just works like this.

There it is. Very simple. And I can even hide the dock if I want to, and it will just show when I do this. Very simple. So I'm going to go ahead and leave the dock up right now, and I'll take a few of these things out here that I don't need. So that is the dock. Now I'd like to show you some other cool things about the dock. I'll open a few photos again. In the Macintosh right now, the Mac does not do a good job of miniaturizing windows.

It puts this window shade thing right on the screen, right in front of what you're working on, and you have to manage it. Let me show you a much better way. If I want to miniaturize this window, I just click this yellow button right here, and it goes down in the dock. And I have a thumbnail that's created and I want it back, I just click it and it comes back. Let me show you this in slow motion. Look at this. So, it's now really easy to be working on a bunch of documents at one time, and just go ahead and have an easy way to miniaturize them and keep track of them.

Look at what happens when it's down here like this. It just pops up and goes down. Very, very simple. Very, very easy. Any kind of document, right in the dock. All righty. Now I'd like to show you a QuickTime player. Let's go back and get some content here. I've got a movie trailer here for a new film coming out called Vertical Limit. And first of all, I can show you the channel buttons right here. Well, let me go ahead and play the movie first.

You get the idea. So now let me go launch an application that we wrote called The Bomb. And The Bomb does everything it can to try to crash the computer. It overrides low memory, it does everything we know how to do to try to crash this computer, and so you'll get a good feel for what that's like. So is it going to blast the way down? We'll depend on the courage of six. For the rescue mission, we don't vote, we don't question, we don't argue. You listen and do exactly as I say. Want to light it? It's going to blow! It's going to blow!

We finally have the underpinnings of a super modern kernel so that we can now make the Mac OS super robust. And I think you're going to find that the public beta is very robust already, and it's only going to get even better. So again, here's the QuickTime channels as an example. Here's an example of one in one of the French sites here. You get the idea.

We can go to CNN and stream off CNN if we want. Again, all this stuff is working. It's great, of course, because after almost five months, it's something you'd never be able to do. Anyway, that's CNN. So that is QuickTime. Now let me go. I want to launch the music player here, and I'm going to go to my documents, and I'm going to launch a playlist out of here.

You can see when apps launch, they bounce on the bottom just to tell you they're launching, which is nice. And here we go. This is just a little doodad that I can... So I can just leave this over here and do my work if I want to. I can also bring up... I can go forward a song if I want or back a song. Like this. So very, very simple. You can play music off MP3s. You can play music off your audio CDs, whatever you'd like.

Okay. Now I'm going to launch IE, and let's see what we've got here. So this is our Apple site, which we know and love. But let me go ahead, and I've got, again, another site here in France. So you get the idea. And IE is working great. We've got Flash built into it. We've got Shockwave built into it. And so it's really nice.

All right. So rather than wait for the Internet, we'll move on. Now what I'd like to do is launch an application that you might not use, but it demonstrates the underlying technology that can be used in every single app on Mac OS X. So this is a very simple application called a PDF compositor. Just show you the power of the underlying graphics. And I'm going to go back here to my documents. And I've got a folder with some elements that are PDF. It happened to be the Toy Story logo, which I love. But this is a PDF of Toy Story, as you can see. And as you know, with PDFs, you can grow them and shrink them, and you can rotate them around and do whatever you'd like.

You can put shadows on them, et cetera, and do whatever you'd like to do. And we'll go ahead and put this over here, and, of course, Toy Story 2. And we'll go back here, and let's see, with this one we might make it smaller, like this. And we can change the layering and do anything we want. We can send this to the back or bring it to the front. But the fun part about all this is that we can demonstrate transparency, of course. And this is built in to every basic graphics of the system. And I can drag a picture on here if I want to. And I can say, you know, what does every child have on his mind? Well, you know.

Now, we also have OpenGL built in, which we talked about earlier. So let me go ahead and show you what that is like. And here's just a simple bottle here. And we've put this image on, and we'll go ahead and animate it right now. And it's going round and round. But as you can see, we can take this over here. Let me get it back here. Like this. And as you can see, even as it's moving, we can, you know, change the transparency from opaque to virtually transparent.

And it's pretty amazing, actually, what this stuff can do. So you get the idea. Okay. So now the last thing I'm going to do is I'm going to log out. And I'm going to log back in as somebody else, one of my colleagues, Pascal. Because the system, let's see. The system remembers your preferences by user. It's a multi-user system. And Pascal speaks French. And here we have a French system. All right. All done.

And here's the new mail app, which is really nice. But again, you can see iCards in there and different messages. Very simple. All anti-alias text. Very nice. Exactly what you would hope it would be. So this is a simple demo of Mac OS X. You can buy your copy today at the booth. You can order a copy off the Apple Store. We are anxious to know what you think. And we would love any feedback so we can keep making it better and better and better. Because this is the future of the Macintosh. And we want to know what you think of it. So Mac OS X coming out public beta today.

We'll ship it early next year. It will run on all of our existing products. A fantastic suite of products that we have. And almost all of them are new in the last eight weeks. The strongest product lineup we have had in our history. So we've got some buses. They're going to take us over to the expo. Let's go over there now and see this stuff. Thank you very much.