Steve Jobs on the Digital Hub: Apple’s Next Era

(applause) Good (applause) morning. Thank you all for coming this morning. Thank you so much for coming. We've got about 5,000 people here, and when I checked just before I came on, we've already got tens of thousands watching the streaming broadcast all around the world. We're streaming all the way up to a megabit per second all

around the world, and we had over three gigabits per second of streaming data going out. When I checked just before I came out, we have a lot of people watching today. The last several months of 2000 were particularly challenging for Apple and our industry. We decided to start 2001 with a bang. We got a lot of incredible stuff to show you (applause) today, so let's get started. First thing I want to talk about today: Mac OS 10. Mac OS 10, let me review the

architecture of Mac OS 10 for those of you who don't know. Architecture is in four layers: a kernel called Darwin; the most killer graphics ever; tremendous frameworks for developers to write to; and a stunning new user interface called Aqua. Darwin—Darwin's pretty amazing. It's, of course, it has protected memory so it doesn't crash, and our goal is to never have Darwin crash. It's got virtual memory so it manages the memory for you. No more setting the amount of memory an app's going to get; it does it all for you. Preemptive multitasking so if you're working on something, something else can't block you; multi-threading so again you can juggle activities very easily; symmetric multiprocessing so when you throw in a second processor, things

accelerate automatically; and BSD Unix services so you can talk to enterprise systems. You know most of the servers in enterprises are Unix based, and we are their twin brother. And it's fully open source, so we have a Linux-like community that's already built up around Darwin and, matter of fact, helped us quite a bit. We've already incorporated a lot of their feedback and work into Darwin. So that's the architecture of Darwin. Now we move on to graphics. We've got three levels of graphics: 2D, 3D, and multimedia. In 2D, we have Quartz, which is remarkable. Quartz is based on the PDF internet standard. It does PDF rendering on the fly, fully anti-aliased, supports all the

standard fonts out there, compositing, transparency. It's incredibly fast and incredibly stunning. We move on to 3D: OpenGL, industry standard. It's great for games, but it's also great for professional imaging, and we're starting to use it more and more for very high-end stuff as well. Hardware acceleration optimized for the G4, OpenGL, and of course QuickTime. We've based it on the latest version of QuickTime, QuickTime 5. We've integrated it into the OS so it can take advantage of the advanced plumbing, and of course, we have a new player interface as well. So we've got the most killer graphics on the planet built in right to the core of Mac OS 10. Frameworks: we have three

frameworks: Classic, Carbon, and Cocoa. Classic, of course, runs existing Mac OS 9 apps as is. Almost all Mac OS 9 apps just run in Mac OS 10 without any modification, and it's pretty remarkable, but you don't get the core advantages of Mac OS 10. To do that, developers have to tune up their apps for Carbon. Takes them a few months and they produce an app that springs to life in Mac OS 10, taking advantage of all its new features, and this is what all of our developers are working on doing now. Plus, we've got an extraordinarily advanced object-oriented API called Cocoa, which is the coolest thing out there for writing new apps in

—you can write apps 10 times faster than any other technology we know of in the industry. So we've got killer APIs for our developers, and we're supporting full Java 2 as well in Mac OS 10. Those are our (applause) frameworks, and a stunning new user interface called Aqua, which I will show you more of in just a second. So that's the architecture for Mac OS 10. We just finished our beta release. We released a beta release of Mac OS 10 last September, and I can report to you now it's been a stunning success for us. We anticipated about 10,000 people

buying the beta; we had 100,000—100,000 copies of the beta have been sold. We anticipated 3 to 4,000 individual feedback submissions; we've had over 75,000, some of them quite long, and we've read every single one. We've categorized them, and we've learned a lot from this, and it's helped make Mac OS 10 better. So I thank you guys who've sent those feedback submissions, and we're going to get a much better OS because of your (applause) help. I went into the database and pulled some things out to characterize three kinds of feedback for you. The first was positive feedback. We always

like a little positive feedback, and the most, uh, the most frequent positive feedback was far more stable. This thing is in beta form, far more stable than even OS 9 is in shipping form, and we're very gratified to hear that. Second, Aqua was incredible. People in general loved Aqua. There's a few things I'd like to see changed, but in general they loved it. Super easy to install; we nailed the installation; Classic really works. I think people were really surprised that we could run Mac OS 9 apps in Mac OS 10, and it works well. And a really interesting one: a lot of feedback that Mac plus Unix is a whole, whole new ball game for Apple; that this is taking the power of Unix and marrying it with the

legendary ease of use and advanced application platform of the Mac and producing something that doesn't exist anywhere else in the world that people are really excited about. The second area of feedback was missing features, a lot of missing features. The number one was AirPort, surprisingly; printing; location manager; etc. These are features that just didn't make it into the beta. AirPort missed it by about two weeks. I'm pleased to report that all these features are now in OS as well as many others that we just didn't have at (applause) beta. And the last category was key concerns. People had some key concerns, and the most frequent ones were the Apple menu, clock in the menu bar, discs on the desktop, control strip, and the

Finder toolbar is awfully big and horsey, so we listen to these concerns very carefully. And if you know, notice, Mac OS 10 has been evolving all throughout 2000 based on feedback that we've gotten from our developers and our users, and we're not stopping. And we've added some new features in Mac OS 10, and I would like to show them to you right (applause) now. One that nobody asked for but we added anyway was this new screen saver. It's kind of cool; it goes and finds all your icons and makes a cool screen saver. But let me show you one other thing that's kind of neat. Uh, we have another one in. Whoops, I didn't want...

That, uh, we have another one in here, um, which, uh, you can put your own pictures in, and it will go ahead, using OpenGL and, uh, uh, dissolve, cross dissolve and zoom them into each other, and it's really beautiful. So I threw some pictures of a beach up here, but you can have pictures of your family or your dog or, you know, our products or whatever you want, uh, but it's really nice, something you've never seen on a computer before. And it turns your computer into this most gorgeous digital picture frame when you're not using it. All right, well, we'd all like to be there, so, uh, I'm going to run through a few things very quickly just in case some of you

I've never seen Mac OS 10. As you know, you can move windows around real-time, not just the outlines; they resize real-time, as you've seen before. Uh, and one of the things that has really worked out well has been sheets. As you know, in Mac OS today, when the OS wants to tell you something, it throws up a panel, which can get disconnected from the window that it applies to. It gets very strange when you start to work on many applications at once, and you don't know which window the panel applies to. We've gone to what we call sheets. When the OS wants to interact with you on a document basis, it throws up a sheet, and you can interact with it. In this case, a save panel—very simple. When your window gets very small, it goes like this, this, and as you can see, it even moves away from the side if...

You're too close to the edge, okay? Very, very simple. And I guess sheets also illustrate something we're trying to do with Mac OS 10 that's really important to us: to make it more powerful, yet at the same time easier to use. And that's a tall order to do both of those at the same time. So here we have a save panel that's the simplest save panel you've ever seen. You name the document, and you pop down a list, and you tell it where you want to save it. Couldn't be simpler. But what if where you want to save it isn't in this list? Well, in that case, the advanced user just pops this up, and they can traverse the whole file system right here and say they want to put it here, they want to put it in Documents, and they just add to—they can, you know, anywhere else in the file system they...

Want to go. They can add anything to Favorites as well or replace a favorite and, uh, very, very simple. So we have complexity and we have simplicity built into the OS at the same time. Now, we also have the Dock down here, and the Dock, as you know, is a great place to put applications, and it's a great place to put documents. So, as an example, I can grab some more apps and drag them down into the Dock, and as you know, you can see the Dock just shrinks as we add more to it. I can also minimize things into the Dock. Right now, on the Mac OS, when you minimize things, it's not the perfect experience to get that window shade kind

of clutters up your screen here again. Things minimize right into the dock. I'll get another picture up and again just minimize them right into the dock. They come up right where you left them. If you've never seen this in slow-mo before, let me just show you in slow-mo so you can see the production value of which this happens at. It's pretty wonderful. Okay, now one other thing that the dock allows for us to do is, uh, we can set its size. So I'll go to System Preferences here, and I can set the dock size to be as large as it can be, or I can even set it to be smaller. So a maximum it will be this size, but when

The dock gets small. If I want to grab something really fast, it might be hard to see. So, I can turn on magnification just like this, right? Isn't that nice? And I can even hide the dock if I don't want to see it. And when I bring it up, it'll just come up when I move to the bottom of the screen like this. Very simple, very unobtrusive. It's pretty wonderful. Okay, that is the dock. Now, what I'm going to do is bring up a QuickTime movie and just show you one other fun thing about the dock. This is a movie trailer here. Just, uh, bop into where little action—watch this. The story of a warrior. See anything?

The war he loved: a daring outlaw. The dock has become very (music) active, and a princess destined to become our (music) warrior. So, the dock has become a very active place where applications can even go as far as play movies—they can show status, they can communicate with you in any way that they choose. All right, now let's get into some of the fun.

New stuff: I am going to take a folder, and, uh, what I think I'm going to do is, uh, go to my home directory here and take my Pictures folder, and I'm going to move it down into the Dock. Now, normally, I can go down into the Dock and I can click on this and see my Pictures folder—really fast way to get to folders. But we've added something new based on people's feedback of wanting the functionality of the Apple menu. I can go down here and click and hold and get a popup of everything in that folder. Okay, I can even go to Applications and get a click and get all my documents.

Boom, there, there we go. So everything I've got in here, I can have multiple folders and drag stuff out. Well, how far does this go? Well, let me show you the ultimate. I can drag my hard disk down here, right? I'll put it over here. That's my hard disk. I go to users, Obi, pictures, bring up a picture. All righty. Thank you for these suggestions; they came from our users. Now, we've taken the Apple menu that used to be in the center of the screen, and we've moved it over to the left where it was, but we've changed it a bit, you know.

Right now, when people think of Mac OS, they think of the Finder, don't they? Because you have to go to the Finder to do everything. You have to go to the Finder to even sleep, as an example. To quit, everything's done through the Finder. And we see the Finder as just another app, you know. There may be multiple Finders someday. Some beginners may never even use the Finder. With email, you don't have to go to the Finder to find your email, right? So Documents can manage their own files and present them to users in much more intuitive ways than a file system. And so we're going to be moving in that direction over time. And to take the first step, we've taken out a few of the features that you always have to go to the Finder to get, like when you're in an application and

You want to go to sleep or you want to quit or you want to log out. All you have to do now is go to the Apple menu, and we've got sleep, restart, shut down, and log out from anywhere in the system. You no longer have to go back to the Finder. We all recent items, of course, right here—all your recent items: documents, applications, etc. We've moved the Location Manager up here, so you have all your locations right here if you've got multiple locations set up. And you can—well, you can turn magnification and autohide for the Dock off and on as well, as get Dock preferences or system preferences right from the menu up here. So that's the new Apple menu. Uh, new font panel. We got a lot of

Feedback that the font panel was too big. Well, one of the things we've done in the font panel is we've gone out and licensed some incredible new fonts. And as you know, we have collections of fonts, so we have some fun modern fonts here: uh, Copperplate. You'll notice things, of course, in the font panel change documents in real time. Oops, a little too big. Change documents in real time. Helvetica, Futura, Copperplate, DTO—we've got some great classics here: Caslon, you know, Gill Sans, and some fun fonts as well. Really great stuff here. Now, about the font panel. Back to that. So we've made the font panel so if you shrink it down, look what happens—you

Just get popups, and you can even get rid of collections to where your font panel is very, very small, and you can leave it up all the time and do whatever you want with it. So that's the font (applause) panel. Last but not least, toolbars. We got a lot of feedback that the toolbars in the Finder and the other apps were just too big. We've made them dramatically smaller, as you can see here on the Finder. But we also got a lot of feedback that people wanted a status bar. We've allowed you to add a status bar here, show number of items, show how much space you have left on the disk if you want, so you can show and hide that. But the biggest piece of feedback we got was that different users wanted different

Things on the toolbars whether it be in the Finder or Mail or Preferences, etc. And so we've made them all customizable. So you can go in and you can say "Customize the toolbar," and we'll give you a range of things you might want to do here. I want to bring my Movies up here. I want to bring the path up here. I want to move this over here, and, uh, maybe I'll bring Music up here too, right? I'll even put Customize up there. And I can view things—I can view things as icon and text, or I can view them as icon only, or I can even view them as text only if I wanted to. But I like both. And so here's my new toolbar, and again, I've got my views right here and I've also got my path right here if I want to

Get back anywhere, right? And of course, I can even go Customize right from here. So I've got everything I want right there, and of course I can—oops, done! And, of course, uh, I can even hide my toolbar. Right? But we've got something even more fun. We got a lot of feedback that people love the new Finder, but some of them also love the old Finder. So let me go back here, back to Computer, and, uh, let me navigate here to Users and I'm going to go into AI again, and I'm going to go into Pictures, and I'm going to open a picture. Now, this is how the Finder works in macOS 10, and it doesn't litter your screen with a lot of windows.

But if you want to litter your screen with a lot of Windows, I'll just open it from the hard disk here. Whenever the toolbar is closed and you click on something, it spawns a window, and so you can have it any way you want it. If you want it to work exactly like the old Finder, you got it. Okay, so that is Mac OS 10. Again, to review: new Apple menu, a lot of stuff on preferences, recent items, the ability to instantly go to sleep or log out from anywhere in the

system, the Dock, popup menus right off the folders and off applications listing all the open documents, the new toolbars dramatically smaller, completely configurable, customizable, and even hideable to where the windows work just like they did in Mac OS 9, spawning windows every time you go down a level. This is some of the features we've added to Mac OS 10. Now let's move on to applications because the minute we ship Mac OS 10, of course, the mantra is going to be carbonized applications. Carbonized applications, again, when we go into

Frameworks, it's not the Classic apps we're talking about because those all just run. So we have thousands of apps that run on Mac OS 10 from day one. But we're talking about the carbonized and Cocoa apps that take full advantage of all the Mac OS 10 features. So how are we doing on that? As of today, we have 400 developers committed, which represent over 1,200 brand name apps that are being worked on for release on Mac OS 10. Of those, 350 of them have been announced to date. That includes the hundred that are being announced this week alone. Now, the apps, the apps are going to come out over a time period. They're going to come out

in a bell curve. We're going to have hundreds coming out this spring, the majority of them. The avalanche of them is going to come out this summer. You can imagine Macworld July is going to be the coming out party for a lot of Mac OS 10 apps. And then we're going to have some laggards in the fall. So it's going to follow this bell curve. I'd like to show you one now that's coming out this spring that's amazing. It is probably the largest Mac app ever. It's actually larger than Mac OS 10. And that is Alias Wavefront's Maya. So we've been working closely with the Maya team. They're excellent, and I'd like to invite Richard Carris up on stage to

show us Maya running on Mac OS (applause) 10. Thank you. You know, Alias Wavefront customers are some of the most creative people on the planet. Let's take movies, for example. Last year all of the films nominated for the Special Effects Academy Award used Maya, our 3D product for animation. As a matter of fact, 26 of the top 50 films of all time used Alias Wavefront products, and these images that you see here used Maya. Maya is for 3D what Photoshop is for

2D. Now Maya is a very sophisticated application. It has modeling, rendering, animation. It's got a full dynamic system. It's also got paint. It is the best tool for the film, video games, and Visual Web markets. But all that power puts a lot of demand on the operating system, and I'm happy to tell you that Mac OS 10 is performing like a champ. The combination of a G4, Maya, OS 10 is going to be awesome. Now, this is our very first Macworld, and we're really excited to be here, and uh, we're just going to be able to give you a glimpse of our product here today because we're going into beta

in four weeks, and we're shipping this product next quarter. And we can't wait to take the creative professionals from the Apple marketplace and bring them into our world of 3D. Now with me today is Dan Prman, and we're going to show you just a little bit of the kinds of things that you can do with Maya on Mac OS 10. Dan, thanks Richard. So the first thing I want to show you is how dynamics work in Maya. I'm going to show you a dynamic simulation here. We've got a wrecking ball set up above the stack of boxes, and you can see if I hit play what I've done is simply said that I want gravity to affect the scene. You can see that as that swings down it makes contact with the boxes, and we get a realistic dynamic simulation. Now I can stop that, I can scrub it backwards, we can see how that

would form in reverse. You can see we get really great interactive performance. I can also zoom in and tumble around this in real time. Now isn't that awesome? That's the dynamics engine. That's the same dynamics engine that was used in Star Wars Episode One for the pod race sequence. The whole thing was done using our dynamics engine, and we can use that dynamics throughout our application. But one of the things that's really key to us is the workflow. Workflow is king, and for us to take the 2D artists into our 3D world, we want to bring that kind of familiar workflow. So we have this technology called Maya Paint Effects where you don't only just

paint on a 3D object, you can actually create 3D objects by painting. So next up, let's show you some of the Maya paint effects. Thanks again Richard. Here we have another scene that I've set up. This is a little valley here. We've got some mountains and a lake, and I can just use Paint Effects to paint fully rendered plants directly into the scene. So you can see here we get real-time shadows. We're able to paint these in. You can see they actually grow as plants would, and we're able to actually animate that. Here you can see we have hundreds of different brushes that ship with the product. So you can see I can paint these in and they all vary themselves randomly. So we can have subtle variations in color, in shape, and all of these brushes can also contain animation. So you can see how quickly, quickly I can add these. You can see we

Can also use paint effects to do other types of, uh, paint brushes. So, for example, I can just add clouds to the sky here, and you can see that they get painted in 3D behind the mountains. They behave properly. And again, all of these brushes can contain animation. I've gone ahead and rendered this out to QuickTime, and let's just take a look at how this looks in (applause) motion. Thank you, thank you. So there you have a glimpse of what is Maya. We invite you to come by our booth. We're going to have our customers there, some from

Industrial Light & Magic, Digital Domain. They'll be showing the stuff that they do with Maya, and we'll be showing a lot more of Maya on Mac OS 10. So thank you very much. Steve, is that awesome? Okay. So Maya is one of the apps that's coming out in the spring, along with hundreds of others. The Avalanche will happen this summer, with some lagers in the fall. I think we've got a great, great lineup of applications coming out for Mac OS 10 this year. So let's get to the schedule. When can I buy Mac OS 10? You will be able to buy Mac OS 10 at

your favorite channel partner on Saturday, March 24th, in store. We're going to be (applause) shipping. We are taking the last several weeks to make sure this thing is absolutely solid. We're feeling very, very good about it right now. Saturday, March 24th. Price (applause) $129. So March 24th, you'll be able to buy your copy of Mac OS 10. Now, as I said earlier, the apps will come in a bell curve over the course of the year. We're going to be shipping Mac OS 10 right at the beginning of this bell curve. The

Avalanche of apps will happen this summer, and that's when we've decided to bundle Mac OS 10 on our systems, to preload it on our systems, is when the Avalanche of apps starts to happen. So we will be pre-loading starting this July on all of our systems as the default OS, and you will be able to buy your copy starting Saturday, March 24th. And that is the schedule for Mac OS (applause) 10. And we know that Mac OS 10 is really laying the foundation for the next decade, decade and a half, of our software efforts, and we think we've got

something really, really good here, and I hope you love it as much as we do starting on March 24th. Okay, Mac OS 10, what's next? Power Mac G4. Today we're launching a whole new generation of Power Mac G4s, and the theme, the theme of this new generation is power to burn. Power to burn. Of course, the G4 is based on the G PowerPC G4 chip, and you all know as much as I that we've been coasting along

at 500 MHz now for almost 18 months. That's too long, isn't it? So today we're taking it up to 733. (applause) This is a new generation G4 chip that's delivering over five and a half gigaflops of sustained performance. It's amazingly fast, and we're going to have four models of G4s, four models. Now, what do they all have in them? They all have a few things in them, so let me go through that first. They all have CD-RW drives in them to start with. (applause) We're late to this party, but we're here.

Even at the entry level systems, CD-RW standard in all models. We've got a new architecture in this machine that's really fast: 133 MHz system and memory buses. We're getting over a gigabyte per second of sustained internal bandwidth in these systems, AGP 4X for graphics to get the fastest graphics possible, with right combining, which is very important as well. And we're going to be adding Nvidia graphics cards. We're going to be adding Nvidia graphics cards in the top three models. GeForce 2 MX standard in the top three models, AGP 4X in all

models. All models also have a new audio system in them with a 10-watt integrated digital amplifier, gigabit Ethernet on the motherboard, and all models now have five (applause) slots. Now, in addition to the five slots, we've made the PCI bus a lot faster. We've taken out the bridge and some other things, and it's dramatically faster now. Five slots. We've been under- we've been short selling ourselves. We've been telling the world we had three slots, but the whole PC world counts the graphics slot as well, and so the way everybody else counts slots, we've had four slots.

We are upping the AGP to 4X, and we are adding a fourth PCI slot so that every Power Mac now has five slots, and every new Power Mac is completely OS 10 ready, fully configured and certified to be a great Mac OS 10 machine. So four models, 466 MHz up to 733. They are single processor machines. Why? Because if we wanted to wait to get enough 733s to make dual processors, we'd be talking to you in April instead of today, and we want to get these out to you as fast as we can. So they are single processor machines. However, we will be offering the

533 in a dual processor configuration that you or your channel partners can buy from Apple as a BTO config, but the standard configs are going to be single processor machines. So what are the processors? 466 to 733, 128 megabytes in the low end, all the way up to 256 in the high end, 30 to 60 gigabyte drives, Rage 128 in the low end, GeForce 2 MX in the top three configs, CD-RW across the line. And here’s the prices, $6.99 to $34.99. Now, what's

this? What's this thing called? A SuperDrive. Well, this is huge. This is an industry first today. We've never seen anything like this before, and it's a big deal. So there are two kinds of optical drives today: those that deal with CDs and those that deal with DVDs. A drive that reads CDs is called a CD-ROM drive; we're all familiar with that. That's what ships in most of the entry-level computers today. We've been shipping a drive called a DVD-ROM drive, which reads DVDs and CDs, but we missed something last year.

Called the CD-ROM or CD-RW drive, which reads and writes CDs. You can't read DVDs, but a whole lot of people were willing to make that tradeoff so they could write CDs, and it's been huge. Now, some people still want to read DVDs as well, so there's going to be some drives coming out this summer called combo drives that do all three of these: they read and write CDs, and they read DVDs. But what about this last quadrant? That's right, that's called DVD-R—that's the ability to write a DVD-D with data and video, but video that can be... that DVD can

be played on a consumer DVD player. Now, we think this is so important, but we don't want to give up the rest of it. We think CD-RW is important too. So, we have been working with our partner Pioneer to come up with a drive that does all of these things—that reads and writes data and audio on CDs, and reads and writes data and video on DVDs that can be played in consumer players, just like the CD audio disc can be played in consumer players.

And that drive is called the SuperDrive, and it's a really big deal. And this is an industry first. Now, the SuperDrive—a drive that could write DVDs that could be read on consumer players—yesterday cost $5,000 for the drive alone. Starting today, it is bundled in with every new 733 MHz Power Mac, where you get the whole computer and the SuperDrive for $3,499.

(applause) So, the new Power Macintosh G4s have the power to burn CDs, DVDs. Oh yeah. And Pentium too! So, well, is that really so? What about this Pentium 4 thing? We're at 733 megahertz; they're at 1 and a half gigahertz. Do we have the power to burn them? Let's find out. Phil, I'd like to bring Phil Schiller

out, our vice president of product. (applause) Marketing Phil, tell us what we have here today. Morning, everyone. Well, we've got a heavyweight matchup in the top left-hand corner of the ring. We've got the newest Power Mac G4 running at 733 MHz—spelt 733 MHz—and on the right we've got what people believe is the heavyweight champion, the new guy in the block, the brand new Intel Pentium 4, and it's got 1.5 GHz. I mean, that thing must just scream! So, we're going to put these things in a heavyweight battle, and

I think, you know, the best to use to test this stuff is the app our customers use the most to run their machines and run their business. Of course, that's Photoshop—Adobe Photoshop 6. We're going to run those side by side on these two machines, and of course, to make it fair, they run the same file, they have the same amount of memory, and with Photoshop we can script through a bunch of actions that a real artist goes through in their job every day to get their work done. So let's see who gets the job done the fastest. Our customers do this dozens and dozens of times a day. All righty, you ready? Yes. Let's bring up Photoshop. Now, we're going to go through

110 megabyte file with over 140 artist actions given to us by an artist for an actual movie poster they created. All right, count down. PH: 3, 2, 1, go! So you recognize this movie—a recent movie. We're bringing in multiple layers; we're using a bunch of transforms; we're adjusting color levels; we're moving and merging layers, starting to blend them together using opacity and lighting effects—and the Mac is done.

(applause) All right. Gigs and a half is done. The undisputed champion, still reigning champion, Power Mac. Thanks, Phil. We've got a half a dozen of these things we can show you if we want, but every time we run them, the 733 toasts the gigahertz and a half Pentium 4. 24 seconds, in this case, for the G4 versus 36 seconds for the Pentium running at a gigahertz and a half—the G4 is 33%

faster. Now, this highlights the megahertz myth because when you compare megahertz from one processor family to another, it's like comparing apples and oranges, so to speak, and they don't compare. If we wanted to put everything into Intel megahertz, because the 733 is 33% faster, we'd have to call it a 2 gigahertz processor. And you can see that this megahertz thing has gotten out of hand. What matters is how fast the machines are. So we've got the power to burn CDs, DVDs, and Pentiums. Now I'd like to show you something pretty cool—the power to burn. In most cases, if you want to burn a CD

on most computers, you've got to run really bizarre utilities: these Toast things and this and that. It's very strange. So I want to show you what we've come up with for Mac OS 9, and of course the same thing will be in Mac OS 10, to actually burn a CD. So the first thing I've got is my G4 here. I'm going to just stick in a blank CD-R disc, and the drive takes about 8 seconds to figure out that it's a blank CD disc, and what it's going to do is it's going to ask me what I want to title it, and I'll call it Macworld, and how I want to format it, and I'll just say prepare it and see it put it right on my desktop

there. Just it's like a regular old disc, and I click on it, and I get a folder just like a regular old folder. And if I want to burn something in it, I just drag a file or two or whatever I want in it, right? (applause) And see, we very much appreciate the applause, but you shouldn't be applauding because this is how it ought to work. And you close this, and you can go up and burn the disc right here in the menu, or when you drag it to the trash, it just asks you do you want to burn the disc. Right in this case, I'll say no. I

Just want to discard it all, right? So, that's how you burn CDs in Mac OS 9 and Mac OS 10. So, the power to burn CDs, DVDs, imp Pentium Power Mac G4 availability: we have four models, 466 to 733. The bottom two are available immediately; the top two will be available in volume in February. Now, we're probably not going to have enough of the 733s to meet demand this quarter, so if you want one, get your order in with your dealer early. Power Mac G4, we got some accessories for it as well. Remember, we have a whole new audio system built in. We're going to be

selling some Pro speakers, our new audio system, 10 watt digital amplifier. We have hardware EQ, great signal and noise, and these new speakers are going to sell for $59 in the channel. They're gorgeous, and they're available today. In addition, we've got an awesome 15-inch flat panel display to complement our 22-inch Cinema display. The 15-inch display is truly wonderful to work with. It's powered from the computer, so you don't have the power bricks and the extra cables. It's got dual USB ports—you can plug your keyboard, Bluetooth into it—it was $999; as of now, it's $799.

So, our new Power Mac G4s have the power to burn. What's (applause)? Next, we're just getting started. (applause) I'd like to tell you where we're going, what is our vision. A lot of people have come to ask that of our whole industry the last few months: what is our vision? This is what everybody else is telling us, that our PC is

waning, if not the hole being dug. One of the smartest journalists in our business is a guy named Walt Mossberg, somebody I admire because he cares about the same things we do. And even Walt, a few weeks ago, said the PC, which has carried the digital revolution for 24 years, has matured into something boring; that hurt. But Walt's really smart, and we listen to him very carefully. Mike Capell, who runs Compact—we don't think of it in terms of the PC business anymore. H, and Jeff Whitson, who runs Gateway, we're clearly migrating away from the PC as the centerpiece. This is where this comes from: a lot of people wondering what the

future of the PC is. We don't think the PC is dying at all. We don't think the PC is moving away from the center at all. We think it's evolving just like it has since it was invented in 1975 and '76. You know, in the early years, nobody knew what this thing was going to do; these were the prehistoric era. But right around 1980, the PC entered what was to become its first golden age, and that was the age of productivity, with the invention of the personal computer, spreadsheet, word processors, followed up a few years later, in Apple's case, by desktop publishing.

The golden age of productivity had begun, and it lasted almost a decade and a half, driving this industry. The last few years, though, of that golden age, things started to flatten out. People started to wonder: is the PC waning? Have we solved all the problems that need to be solved with a PC? But right around the mid-'90s, we entered the second golden age of the PC, and that, of course, was the age of the Internet. Now, we didn't throw out our productivity—we kept using it—but we added to it this exciting new thing called the Internet, and the Internet propelled the PC both in business and

personal uses to new highs, and it's been amazing what's happened with the Internet. But now, as the Internet has matured, people are again asking: is the PC waning? What's going to happen to the PC? We think the PC is on the threshold of entering its third great age, and that age is the age of digital lifestyle. And that's being driven by an explosion of new digital devices. We have cell phones everywhere, we have portable music players, CDs and their cousins, the new solid state MP3 players—now everywhere.

We have digital camcorders everywhere. We have DVD players exploding in consumers' homes and in business as well, even portable DVD players. Digital cameras now constitute 15% of all cameras sold in the U.S., 15%! It'll be 50% in a few years, and handheld organizers are everywhere as well. We are living in a new digital lifestyle with an explosion of digital devices. It's huge, and we believe the PC, or more importantly, the Mac, can become the digital hub of our new emerging digital lifestyle with the ability to add tremendous value to these other

digital devices. Digital hub, key phrase. Now, how can the PC add such value? Why? Well, for a few reasons. One, because it can run complex applications these devices can't—they don't have enough horsepower. Two, because the PC's got a big screen on it. That doesn't just mean you can see more information; it means we can make much better user interfaces. Most of these digital devices have pretty brain-dead UIs. We can burn discs, as we've seen with CDs and now DVDs. The digital devices can't do that, and we have large inexpensive storage. Paid a fortune for these little flash cards for your camera—you know what I

mean? These are some of the things the PC can contribute. It also gets on the Internet any way, at every speed. Very few of our digital devices get on the Internet at all, and those that do are slow. And so, this is why we believe the PC will be the hub, not just adding value to each of these devices but interconnecting them as well as a digital hub. Now, we first began to understand this with the camcorder because we invented an application called iMovie that added tremendous value to a camcorder. If you've used iMovie, it makes your digital camcorder worth 10 times as much because you can convert raw footage into

An incredible movie with transitions, cross dissolves, credits, soundtracks. You can convert raw footage that you'd normally never look at again on your camcorder into an incredibly emotional piece of communication, professional, personal. It's amazing. You can even then take that iMovie and send it out over a Mac to Apple's website, and we'll host it for you and stream it to any PC in the world. You can't do that with a camcorder. And we saw that the benefit here was a combination of a bunch of things. It was hardware, the computer and other hardware, the operating system, the application, the internet, and marketing to create this.

Solution, in the case of iMovie, it was not only the Mac but FireWire that allowed us to bring in the digital video with pristine quality. It was QuickTime in the OS and the codecs and some real-time stuff. It was iMovie, a major application, on the internet. It was the internet itself, plus Apple's homepage application, which let you build a homepage to stream your movie on in five minutes, and a lot of marketing to create the solution of desktop movies. So we thought this was very important, and it took all these components, and we realized that Apple is uniquely suited to do this because we're the last company in this business that has all these components under one roof. We think it's a unique strength, and we

discovered this with iMovie too, that it could make a digital device called the camcorder worth 10 times as much. It's 10 times more valuable to you. So what are we going to focus on next? Audio. Audio CD players. There is a music revolution happening right now. That music revolution is digital music on computers. So for those of you that are not participating in this, let me describe it to you. What do you want to do? Well, you want to rip your audio CDs onto your computer disc. Now, what's RIP

mean? Well, for those of us over 30, it means read and encode. It means you stick your CD, your audio CD, onto your drive. Your computer reads it, and then it encodes it or compresses it down to about a tenth of its original and puts it on your hard disk. And when it compresses it, the format of choice to use is called MP3. It's a very dense format, it's very high quality, and it's open. So it compresses your music down into MP3 files off your CDs, puts it on your disc, and then it allows you to create playlists of your favorite songs. I want a song from this album, a song from this album, a song from this album, three from that album, put them together in a playlist, rearrange the order, and listen to them in any order I want. The music compiled the way I want,

the way some record company wants. And I can listen to my playlists on my computer. A lot of us spend hours a day on the computer, you want this to run in the background and let you listen to music while you're working. And now the big one, you want to be able to take those playlists and burn them on a custom audio CD. Burn means, for those of us over 30, write. You want to write a CD and play it on your CD player, your portable CD player, your CD player in your car, anywhere. And people are doing this like crazy. They're doing it like crazy. They're making all these compilations: drive to work music, workout music, this music, that music, hot date music. Now how

much are they doing it? How many blank CDs were sold in this country alone in the calendar year 2000? Take a guess. You know how many? 320 million. The US Census came out two weeks ago. 281 million people, 320 million blank discs sold in the US. And they're getting down to 25 cents apiece. People are buying them in 100 packs. So it's amazing, this digital music revolution. Burn your CD playlists on custom CDs. You also may want to transfer your songs to portable MP3 players, right? They're really handy too. And lastly, there's about, there's hundreds now,

internet radio stations that you may want to tune into and listen to internet radio stations. So these are the kinds of things you might want to do in this new music revolution. And there are some products out there, these music players that do some of that. The first one from RealNetworks, this is RealJukebox, it's the most popular right now, gives you, uh, the ability to do most of those things. If you want to poke around, some free advertising down in the corner, here's one from Microsoft, the Windows Media Player, and here's one from MusicMatch that HP OEMs for their machines. Now, if you look at these things, there's something that pops out right away, especially if you're not already using one: they are too

complex. They're really difficult to learn and use. I've talked to so many people using them that don't even know 3/4 of the features because they're too complicated. And they have restrictions. Some of them don't let you encode into MP3, which is the most popular format. Most of them limit the encoding quality, so they don't let you get really high quality. Most of them throttle the encoding speed, so you're sitting there waiting longer than you have to. And all of them throttle the CD burning speed to 2x. Now, why do they do this? They do this so that you give them more money to buy a pro version that takes away these restrictions, usually about $30. Well, we're going to change all this today with something we call iTunes.

(applause) As I mentioned, we're late to this party and we're about to do a leapfrog because instead of having to put up with this, we're going to give you something that looks like this: really clean, really simple, far more powerful. It allows you to have libraries of music. It allows you to rip CDs. It allows you to create playlists, and it allows you to burn CDs all in one integrated application, all in one window. And let me show this to you now all.

Right, here's iTunes. It comes up, doesn't have any songs in it, so let me go ahead and rip a CD. I'm going to put in an old B-52's CD here, and this will read the CD, and it will go to the CD database and get the track titles because those are not on the CD itself. So it'll go over the Internet, pull in the track titles, and here we can see we've got the song name, we've got the artist, we've got the album. I can move those around if I want to and change them any way I want. I can also sort, uh, well, we'll get to that later. Okay, let's go ahead and rip a CD. So let's go ahead and rip Love Shack. So let me go ahead and, uh, turn the rest of these off and say I want to rip Love Shack, and all I have to do is push Import, and what it's going to do is...

Just going to go ahead and rip it and put it in my library. It'll also play it for me if I want. It's ripping at 8 and a half times regular (music) speed. I'm heading down Atlantic (music) Highway looking for the love getaway. Okay, we just finished ripping that.

Song about eight times normal speed as fast as the drive would go and, uh, here it is. And here we can play it from disc if we want. So we ripped the song, very, very simple. Now, you might want to import a bunch of songs and you could put all your, uh, your discs in, but I've already done that and I've got a bunch of songs in a folder here. And all I have to do is drag that on top of iTunes, uh, and I've got about, uh, a thousand songs. So, um, there is a thousand songs just imported, and, matter of fact, I've got four songs in here, and, uh, you know, that's that's a pretty big music library. And as I said before, I can sort by song. I can sort by artist, or I can sort by album just by clicking. And again, I can, you know, I can go play any song just by clicking on it. I can go anywhere in the...

Song. I get a nice little display up here. So, pretty simple, but in addition to being able to sort by song or artist or album, I've got a few other ways to do this. I can browse by album, and so I can look at all my albums here, right? And so I can just look at, you know, I can look at the Beatles, and I can see all their albums right here. And, uh, you know, I can pick one here and just get down Let It Be, right? Very simple. Let's go to, uh, another example. Uh, Sarah McLachlan, you know, very simple, so very.

Very simple, you know. (music) Again, the quality here is incredible because we've got just a fantastic encoding engine here that does not limit you on bit rate at all, so you can have fantastic quality in this. But there's an even easier way to find things out of my 1,100 songs than browsing by album. Since we have a library, we've automatically indexed it and made it magic. So let me go find something with Dylan Thomas. I've got a Dylan Thomas.

Recording in here I can type D Y L. I'm already down to 85 songs and most of them are Bob Dylan. But I type the T for Thomas, and now I'm down to just Dylan Thomas. You know, "Do Not Go Gentle into that Good Night," "Old age should burn and rave at close of day," you know. So I can just type in anything here, whether it's an artist name or an album name or a song name. So let me type in, let's say I want to find "When I'm 64," right, so I'll just type in 6 4, S I X T. Boom, there I am, two (music) songs. Or let's say a Rolling Stone song called "Beast of Burden." I could type in.

Stones, and I get all my Rolling Stones, or I could just type in Beast, and I get Beast of Bur. So, there's never been anything like this to allow you to find music instantly. It's pretty cool. So, let's build a playlist. I go over here and I say I want to build a playlist, and I'm going to call it Macworld. And I got my Macworld playlist. Let's go ahead and drag some things in. So, let's go ahead and drag in a Sarah McLachlan song. Let's say type in Sarah, and there's a song called Mystery. There it is, Building a Mystery. We'll throw in that one, and then we'll go to... why don't we find Let It?

Be, you know, off the Let It Be album, we'll drag in Let It Be. Uh, let's find that B-52 album. I think type in 52. There it is, Love Shack, that we just ripped. And, uh, and then let's go, uh, and, uh, go in here, and we can just grab a whole album if we want to. Uh, I could grab a Barenaked Ladies album, uh, and just drag the whole album to my playlist, and it puts all that in there too. So, there's my playlist right there, pretty simple, and I can build as many playlists as I want. Now again, if I want to write a CD, all I have to do is see this button up here called Burn. Watch this. See that? You know, so it's going to ask me to.

Put a disc in. Whoops, I closed it on myself. All right, what am I doing here? All right, there we go. Take out the B52s, put in a blank CDR disc, and say burn. I insert a blank disc and it will start burning. All right, there we go. All right, boom. Now maybe this is a bum disc. Let's try another one here. All right, there we go. No, I think it's spinning up now. So this is going to just go ahead and burn the CD for me. It's going to burn the whole playlist. I don't want to burn the whole.

Playlist. So I'm going to go ahead and stop this, but you get the idea. And it's preparing the tracks now. It's going to take a while. Okay, let me stop it here. It's going to take me a second to stop it. All right, so here's my playlist. That's how simple it is to burn a CD. And again, in my playlists I can just move stuff around if I want Love Shack at the top or whatever I want at the bottom. It's very, very simple. Just control these playlists, very, very simple.

Now what about an MP3 player? Well, I've got an MP3 player right here, and let me just go ahead and turn it on and I'll put it in the cradle. All I have to do is just throw it in its cradle, and when it's connected to a USB port, which all of them are, it just pops up right here. Here's my new MP3 player. And so to get these songs off, all I have to do is click on them and delete and it'll just erase them off the MP3 player. And to get something onto the MP3 player, like I could just drag Love Shack on and Love Shack is just copying onto the MP3 player. And I drag a whole playlist or individual songs, whatever I want, and it's that simple to move things to and from your MP3 player. Boom, there it is. Okay.

Now let's go to Internet radio. I just click on this button and here's all my Internet radio stations, right? I'll click on Top 40. It's going to go query all the Top 40 radio stations out there. Oops. All right. And let's see here, here's the Top 40 radio stations. I'll pick one called The Wolf because it's got 128 kilobit per second. (music) Fece. It's just like radio. Okay, so let me go back to my playlist now and I'm going to, I'll just play, I'll play Love Shack.

Here. So here I am listening to music and I want to do some, you, I'm doing stuff on my computer and I don't want this thing taking up the whole screen. What do I do? I just click miniaturize. (music) (applause) I can even make it smaller if I want to like this. Think it right. (music) There. Simple. Boom. Remembers where it was. Okay, last thing, last thing. What if we could see music? What would

It look like? We took a stab at it and built into iTunes is something that's pretty cool. Let me go ahead and show it to you. (music) You see AED sign at the side of the road. That's (music) 15. Make it full screen. I'm heading down the highway looking for the love getaway. I

Got H up and BR your money, a little place where we can get together. (applause) (music) (applause) The back in the middle of

Field and I gotta get back it on the highway on (applause) the where we can get together. Love Shack, baby. Love Shack, baby. Love Shack. That's, you get the idea.

So iTunes, it's pretty remarkable. The visualization just goes on and on and on too. It's unbelievable. So again, instead of the current players with their restrictions, iTunes is completely unrestricted. Unrestricted encoding into MP3, unrestricted encoding quality and speed, and unrestricted CD burning speed. And it's also fully integrated. It's got a really advanced encoding and burning engines, great sorting and searching, and an awesome visualization. Again, this stuff is pretty amazing. iTunes runs on Mac OS 9 and it's free.

So you (applause) can, you can get it today. And what you do is you go to apple.com and you download it now. iTunes today will run on almost any Mac running Mac OS 9. You'll be able to rip CDs, build a library, build playlists, play your music on your computer, transfer your music to your portable MP3 players, listen to Internet radio. But the first release today supports only the CDRW and SuperDrives that we're shipping in our new towers. We will be adding plugins to support the

Most popular third-party CDRW drives in the Mac over the next 60 to 90 days. So check back with the download site, we'll have those there as fast as we can get them tested so that you can burn CDs as well on any Mac running Mac OS 9. All righty. Join the Music Revolution with iTunes and make your music devices about 10 times more valuable. That's (applause) iTunes. So what next? This is something that I have personally dreamed about for a few years.

Now, and it is the completion of a dream that we had several years ago. So I'm extraordinarily pleased and moved to be able to announce this to you. It's the DVD and DVD players have exploded. There's at least 10 million in the US. Estimates range all the way up to 13.5 million, and it's doubling every year. Now it's expected that the penetration is going to grow from its current 10% of households to 40% of households in the next two and a half years. These are also being used all over the place now in corporations. And what do you want to do? You want to make your own DVDs with your movies instead of the

Ones you buy at Tower Records, right? And you want to play them in consumer DVD players. You want to shoot footage on camcorders, consumer or pro grade. You want to make the movies on your computer, but what you want to keep on going to create the DVD and burn the DVD and then you want to play it in consumer players. That's what we want to do. There are three hurdles. The first is just burning that DVD disc. If you can't do that, why bother with the other stuff? But if you can, then you've got to encode the data, which is fierce, and then you've got to find a way to lay out the content easily if you're not a pro or even if you are and you don't have a day. These are the hurdles. So let's go to

The first one, burning the DV disc, that's the super drive we've got. That one now brings us to encoding the data. Encoding the data is rough because to fit a big movie onto just one disc, they use fierce compression called MPEG-2, Motion Picture Encoding Group 2. And this encoding is very, very fierce computationally. There's two ways to do it: hardware and software. To get decent quality, which you really want, the hardware costs at least $1,000, and most pros use hardware up to $5,000. Now that doesn't work for us. We

don't want to add that much money to our computers, so we focused on software. The software side, encoding software though, actually higher quality than the hardware is very slow. How slow? It takes 25 times as long as the source material. So if you want to encode an hour DVD, it'll take you a day of your computer chugging away. If you want to encode 30 minutes, it'll take you 12 and a half hours. That's a long time. We've had a technical breakthrough. We asked some of our scientists to look at this and they came up with something sweet.

Using the Velocity Engine on the G4, they've been able to reduce the encoding time for very high quality encoding from 25 times to two times. So you can encode—you can encode and do all the calculations to lay out the data on a DVD in 2x. So if you have a 30-minute disc, it takes an hour instead of 12 and a half hours. So we now, because of this technical breakthrough, know how to encode the data in a very high quality way and a cost-efficient manner, which leads to how do we easily lay out the content? There are some programs that

professionals use that allow them to make the DVDs we buy at Tower Records, but most of our customers, even our pro customers, don't want to learn how to use those programs. They're pretty fierce because most of them actually want to use DVD as a transport, not as a final product. Ad agencies want to show their clients ads in a much higher quality way, etcetera, etcetera. And of course, when we bring it down to the personal level, none of us could use those pro programs, so we've got to come up with something that's truly a breakthrough. And we have—it's called iDVD. iDVD is

revolutionary, and I—I don't know what words to use to describe it to you, so I've just got to show it to you now. Mobile computing, alrighty, let's make a DVD shall we? Let me launch. I

(music) DVD, open a new project, save it as Macworld, why not? Okay, this is iDVD. It is a single window application. Let me change the title of it to Macworld. Now, when you're going to make a DVD, there's a ton of stuff that you have to do to lay out the data just right, and the program knows how to do all that. But there's also a part that you have to get right, which is laying out the menus. It's pretty complicated, and most people aren't graphic artists—they don't want

to—they don't know how to necessarily make. So let me show you how we do this. I've got some movies here, some iMovies, some Final Cut movies, etc. So I'm going to just drag one on. One we've used before, boom, iDVD just made a button for me. It labeled it Beach. I think I'll label it, uh, you know, At The Beach maybe, and, um, I want to put a picture in here for the thumbnail so I remember what that is. So I could go get the movie out, an iMovie in this case, and take a frame and put it in Photoshop and do this and do that. Let's not do that. I just click on it here, and the slider pops up, and I can scroll through every frame in the movie, and I can grab

one and put it right there—right, simple. Okay, now here's another video from Amy Man. She's really hot right now. And I just drop it on, boom, iDVD just made two buttons. Swing Dance: this is a movie, an iMovie that was made by one of our employees; it's truly wonderful and for grandparents called Swing Dance. And again, I've got three movies laid out now. I can actually move these around and change the order however I want to. No big deal. Change the titles, etc. I can put up to six things on here. What if six isn't enough, huh? I have submenus. I add a folder, it puts four things on here, and I'm going to call this one Cool Stuff. Boom. Now to get down into that

folder, I just click it. And again, Cool Stuff. Great. So I'm going to put another movie on here. This is a fun movie. This—what movie is this? I grabbed from the Maya guys, right? So there's that one. And then I'm going to put a great movie on here called Gravity. This is another interesting thing: see, making a DVD isn't just important to pros, and it isn't just important to us personally. It's huge for education. The ability to capture best practices and send them around the districts, their ability to capture students doing wonderful things as they learn and share them is unparalleled. I'm going to play you this movie now that we, we got. This is a real movie from one of our, uh, one of the schools that we

serve. Hi, my name is G, and my name is Arist. Today we're going to be talking about our theories about gravity, and all we're going to be using is a book and a few pieces of paper. Arist said that heavier objects like this book fall faster than lighter objects like this paper, and Gia thinks that objects fall at the same rate regardless of how much they weigh. What do you think will happen when we drop this book and this paper? You get the idea. Okay, so you notice iDVD also put the navigation arrows in for me. Simple. So I'm back up here with Cool Stuff, and I'm going to add another folder, uh, that

I'm going to call, let's say we're an ad agency and we want to share some ads with our clients. And I'll go into ads now, and I'll change this to a portfolio, and I'll just drag in some ads. I've got our Sage iMac ad, and I grabbed an ad from our ad agency; they do work for Nissan. And then I've got Old 1984 here I put on here. And so again, I can just click into these things, you know, watch them the day we celebrate the first, you know, that ad and uh... and so now I go back and I can take these folders, this cool stuff, and I can pick any one of the thumbnails, you know, the Maya or that thumbnail. And in the ads, I can pick any one of the thumbnails. So I'll just pick, you know, 1984. And then the last thing I'm going to add here. And of course, I can have folders with then folders, so I can have infinite not

infinite, but I can have a very deep nest of folders if I want. And now I can add a slideshow. Watch this slideshow. Let me go back. Let me grab some photos, right? I can just drag a photo in and boom, right? Let me drag all these in. Just adds all the photos. Boom. I can look at them big or small. I can rearrange them in here, the order, do anything I want. I just, you know, boom, boom, boom. And there's all my photos, right? So now and I can again just, you know, go through here and, you know, grab one. It's that simple. And then what I can do is of

course I can preview my DVD if I want, right? I can go like this and I can go around and I can play this movie. Okay? You know, and I can go to this one. This one's great. (music) Too, it's a music video that's been done on Final Cut Pro. And I can go down here and I can go into ads and I can pick, you know, pick an ad and play it. (music) So I can make sure that my DVD is just

right before I want to burn it. But there might be more stuff I want to do. What if I mean this, this look is really nice. It's kind of a pro look. But what if I want to do something a little more personal? Well, we have themes. So I can say, great, well, let's, let's make it a, you know, a green one or even a lavender one here. But I've got some much more fun ones. I can make it a chalkboard, and look at that. It changed the buttons, the font, the background, boom, all at the same time. And it still works exactly the same, you know, nothing different. Or I can go in, I can say, you know, that's really nice but let's make it a photo album again. Buttons change; everything

changes fonts, change all pre-programmed in. This is a fun one for a road trip. Look at that. Isn't that great, you know? And I can go through. This is a good one for, you know, again, a personal one. But isn't that wonderful? You can make DVDs like this way beyond the graphic arts capability of most of us mortals in just a few seconds, right? We've even got them, you know, refrigerator magnets and even things like a wedding as an example, you know, which we're not having today. So I'm going to stick with graph up for this one, and I'm going to go down, uh, into this submenu, and I think I'm going to change this one to my chalkboard like that.

And, uh, I think I'll go down into this submenu, and I think I'm going to change this one. I'll change it to the portfolio. All right. So we've got our DVD, and I can even if I don't see anything I love here, I can make custom stuff. I can, uh, if this is an Amy man, I can just drag a photo on here and change the background like that or like that or like that or like that. And I can also go in here, the themes, and I can go to custom, and I can customize things. So as an example, I can make that title on the top white and make it bigger, and I can make, uh, you know, change fonts. I can do whatever I

really want to here, and I can make the buttons different too. I can, you know, make them ovals if I want to, or I can even, uh, make them splash buttons here if I want to, you know, whatever I really want to do. And, uh, and I can save these custom things. But for now, I'm just going to make a standard DVD. Now, I can see that I've got about 12 minutes of video here, and if I was going to make a DVD for you, it would take me about, you know, uh, 2x about 25 minutes, and we don't have the time for that right now. So I made one yesterday, and, uh, I'm going to show it to you. This is a $250 consumer DVD

player. I pop the disc in, let's take a look at it. Boom, there it is. And we can go ahead and play some, uh, play some videos if we want to. You can see the (music) quality, it's unbelievable quality. Here's another one this, this again was made by one of our employees. She's, uh, remarkably talented. Made for her grandparents off all consumer grade equipment on a Mac. It's for the way you

look at me. O is for the only one I see. V is very, very extraordinary. Is even more. This is the kind of stuff you can do now. (applause) You, you can. That video was created with iMovie, and now it can be sent to the grandparents to watch on their DVD. It's

Unbelievable. So, again, has a lot of applications in science as well. Here we're in a submenu now, right? Let's take a look at that Maya video, right? Or we can go back and take a look at Galileo and Aristotle again. Hi, my name is — name is G — and my name is Aristotle. Today we know. Thank you. And the last thing I want to show you, we got some fun ads and stuff, but the last thing I want to show you is a slideshow. This is a whole new way to transmit and view photography. Look at this. Look at these photos. These are regular digital photos on a

DVD. Unbelievable. Watching these things on a television set is just unbelievable quality. A whole new way to deal with digital photographs. Put them on a DVD. Cute kids, huh? Okay, so this is iDVD. (applause) We think this is revolutionary, and you can get video from any source that can generate a QuickTime file: iMovie, Final

Cut Pro, Adobe Premiere, Avid, anything. And iDVD can make a DVD very quickly. Also, you can get source material from digital cameras. This is huge. You can have thousands of digital photographs on a DVD, and as you can see, you can mix them with video. So, we think this is huge: the ability to make these DVDs, to rapidly build the menus, to customize how they work and how they look, to have digital photography. It's huge, we think, and we're going to bundle iDVD with SuperDrive so that everybody that buys a computer with a SuperDrive in it gets iDVD. And of course, iMovie is bundled with every

machine we make. So iDVD. Now, when you're done—when you're done writing, when you're done creating your DVD—you want to write it. And we're going to be selling media too: DVD-R media, Apple-certified. We have a breakthrough price of $10 each, so we're going to be selling a five-pack of media for $49.95. That's $10 each to be able to write these DVDs. That is a total breakthrough price. And when you're done writing your DVD, you can play it on any one of the 10 million players in the US. It's a breakthrough, and we think iDVD

is going to add dramatic value to DVD players everywhere. But it's even beyond that, because we're starting to link multiple devices together: digital camera with Digital Hub to DVD player, digital camera to Digital Hub to DVD player. And we think this is going to be huge. We're also announcing a new professional tool here today. As you know, we sell Final Cut Pro, that's taking the pro video editing market by storm. And of course, you can use iDVD to make DVDs from Final Cut Pro. But today, we're also introducing a new pro product called DVD

Studio Pro for our pro customers. That is a complete professional DVD authoring tool. It's remarkable. It blows away the tools available, costing $5,000 to $110,000 a piece. We're going to sell it for $995, just like Final Cut Pro. It'll be available at the end of January. DVD Studio Pro is the perfect complement to Final Cut Pro for our pro customers. So our vision: we don't think the PC's dying, we think it's evolving. It's gone from the prehistoric times to its first golden age of

productivity, to its second golden age, the internet age, now entering its third golden age: the digital lifestyle age, where it will become the digital hub of these amazing new digital devices. And it will become the digital hub because it can do things that these digital devices just can't do: run complex applications like iMovie, iTunes, iDVD; big screen for the user interfaces we need to do these things; and to make it simple to burn discs, CDs, and now DVDs, and large, inexpensive storage; and it can talk to the internet any way, any speed. We think this is going to be huge, and the glue that's going to make

all this happen are the applications, and we are working on even more: iMovie, iTunes, iDVD. They are going to be our passport into this new digital lifestyle era, and that is where we are. (applause) Going. (applause) So, you guys have sat through a lot, and I really appreciate it today. And, uh, there is one more thing. One more thing: if I could, uh, beg your

patience a few more minutes, I'll give you a clue. Anybody get it? Remember high school chemistry? Okay, let's talk notebooks. We have the most powerful notebooks in the world, but they have the sex, right? They have the sex.

We want both. We want both the power and the sex, right? So today we're introducing a totally new PowerBook. It's got the power: 500 MHz G4, our first G4 PowerBook ever. If that's not enough, this next one's going to blow your mind: 15.2-inch Mega (applause),

wide, built-in DVD, 5-hour battery life, Airport-ready. So these are the kind of power features you'd expect from us: FireWire ports, etc., etc., all that stuff. But what about the sex? Sitting down (music). One inch thick, 1 inch thick, 5.3 lbs. And this again, what is this?

Titanium. It's made out of titanium, like the spy planes. This is an incredible material. It's stronger than steel, yet lighter than aluminum. It's unbelievable. And this isn't, you know, IBM's talked about titanium—they just throw a little titanium powder into the plastic. It's nothing. This is real commercial-grade titanium metal, like they build airplanes out of titanium. We think we got the power and the sex in our new PowerBook G4 Titanium. And as you can see, I'd like to

show it to you. This thing's pretty remarkable. Ready? Voila! That video here. There we go. This is it. It is remarkable. Let me open it here. Look at this. It's incredible. Let me just show you how thin this is. That's my finger. Okay, once you go down and show them the side, look at this thing. It's unbelievably beautiful. You and about a billion other

People, this thing is incredible. Here's the DVD slot, load drive in the front that you can see. Yeah, it's very nice. 15.2-inch mega widescreen, unbelievable and thin. That's it. We've been working on this for a while, and let me show you this way. Unbelievable mega widescreen. So let me show you a little bit more because we've got a TV ad we've been working on. So let me scooch this out of the way here and, uh, the best way to show you is

just to show you this new ad, I think. Let's roll it. It may be because it's only 1 inch thin or weighs just 5.3 lb. It may be because it has a 15.2-inch screen or is supercomputer fast. It may be because it's made out of titanium. But, you know, whatever it is, jeez, you're just going to so want one. The incredibly thin ultralight mega widescreen titanium portable supercomputer. (music) (applause) So we got a totally new design from the

ground up. It's an inch thin. It's just really wonderful. The screen is so unbelievable, 15.2-inch megawide screen. The border around that screen is unbelievably thin. When you move your cursor up to the edge, you're afraid it's going to fly off. And the screen is gorgeous. Full-size keyboard, best keyboard we've ever shipped on a portable. Slot-load DVD, so you don't have that tray coming out and you're knocking your cup off, the tray under your lap in the airplane. And as you can see, we turn the logo around so when it opens, the logo's right side up. So now, let's take a look at the back.

We got a door here with all our connectors on: FireWire, USB, uh, VGA video out, S-video out, 100 megabit per second Ethernet, IrDA — everything's on there. And on the bottom, we've got a battery, 5-hour battery life off this one removable battery. It's unbelievable. We have AirPort antennas built into both sides for incredible AirPort range. Power Mac G4, PowerMac G4, the new PowerBook G4, two models. They both share a G4 processor, 1 megabyte of L2 cache, Rage Mobility 128 graphics, the fastest graphics going in portables, 8 megabytes of graphics memory, two USB ports, a FireWire port, Ethernet,

modem, AirPort, VGA, S-video, 4 and 500 MHz both share the 15.2-inch screen, 128 megabytes and 256 megabytes, 10 and 20 gigabyte drives configurable up to 30 if you want to do a BTO slot-load DVD in both of them. $2,599 (applause), $3,499. The new PowerBook G4 is Mac OS 10 ready. It's fully configured and certified. When can I get one? We are in the production ramp right now. We will be shipping in a few weeks, and you can get

one by the end of January. So now, where do we stand on power and sex? Well, for power, let's look at Final Cut Pro. It's a really good power app. It runs beautifully on this machine. It takes full advantage of the megawide screen. It's unbelievable. It is the ultimate portable video editing studio. But how does it compare to its predecessor? Because of the new architecture in the G4 chip, Final Cut Pro runs 20% faster on the new PowerBook G4 than on its predecessor. Much faster. A lot of power. The fastest notebook in the

world. Let's go back to the sex. How do we compare? Not just other notebooks because we obviously toast them, but to subnotebooks like the Sony VAIO subnotebooks that are not designed to have built-in drives or big screens or run for 5 hours. They make those compromises to be thin and sexy. So how do we compare to those? Well, let's take a look. Most popular VAIO, $2,549. It's $50 cheaper. Let's see what $50 can buy. Number one, a dramatically bigger screen from 12.1 to 15.2. How much bigger is that? Well, that's the VAIO screen right there, and if you calculate

it, ours is 52% larger. 52% is what it buys you. Well, my god, there must be an error on the slide. No, there is not. The new PowerBook G4 is thinner than the VAIO's subnotebook. (applause) Unbelievable. They are 15% thicker than the new PowerBook G4 at 1.15 inches thick for the VAIO, and of course they're made out of last year's material. They have a P3 running at 650.

We totally toast them with our G4. They have no optical drive for $50 less. They have none. Not even a CD. None. We have a slot-load DVD built in. Battery life 5 hours versus 2 hours, and no wireless options. PowerBook G4 wireless ready. Just pop in an AirPort card. So some people think this is the sexiest portable around. We don't anymore. We think the new Power Mac G4 is absolutely where it's at for power and sex. New PowerBook G4. (applause) Titanium. So

we made a video about the PowerBook, and let me go ahead and run it. (music) Now, our goal was to design an uncompromised product, something that was, um, unreasonably thin, something that was very light, but at the same time was a fully featured, powerful PowerBook. The new PowerBook G4 is a real supercomputer to go. We've taken all the power, all the features, and packed them down into an

amazing thin, light portable computer. Dude, I have to have one of these. Have to have one. And all my friends are going to have to have it too when they see it. Unbelievable. This new PowerBook, it's incredible. They'll be able to do in the field, at home, in the office, and that's going to change the way it all looks. It's going to change the way it all feels. Forget about it. This is (music) it. The PowerBook G4 is the fastest notebook in the world. As a matter of fact, it's faster than most desktops. Everybody gets hung up on clock speed, but what really counts is balance system.

Performance. The PowerBook G4 with the new 500 MHz G4 processor delivers up to a blazing 3.5 Gflops. To get the new PowerBook G4 so thin and light, we went to space-age materials: titanium, carbon fiber, plastics. All this produced a product that is 1 inch thick and less than 5.3 lb. Titanium is a remarkable material. I mean, it's lighter than aluminum, it's stronger than steel, it's robust, it's tough, it's durable. It really was our only choice for the new PowerBook. There's 128 MB of memory using the latest technology, expandable to 1 GB. There are 10 and 20 GB hard drives expandable to 30 GB and a

built-in slot-load DVD drive. There's USB, FireWire, Ethernet, 56k modem, even built-in AirPort wireless networking. But we know that that's not enough, that our professional customers want something that's also extremely powerful and has a really gorgeous huge display. But forget about gorgeous, it's a G4, and it's 5 lb, and it's got a 5-hour battery life. That's just enough to get from L.A. to New (music) (applause) York. Musicians can literally dispense with all of those pieces of hardware. You can sit with a laptop now and you can make a

record, and I just can't think of anything more exciting. Man, at Gentech we couldn't do our jobs without a Macintosh. We run our business on it. Last year, the entire Human Genome was sequenced, and this gives an astounding amount of information that needs to be analyzed. I think these new G4 machines are going to allow us to do that more quickly and eventually make the world a healthier place. Radical Media is actually the only global commercial production company, and a director here who used Final Cut Pro on his PowerBook would shoot a commercial, plug it into his PowerBook, and flying from L.A. to New York he'd

have a rough cut of his piece. The new PowerBook G4 is going to revolutionize our business. It's not going to change it, it's going to revolutionize it. I think people have an almost visceral reaction to what, not there in terms of, you know, weight and just volume. I think people are staggered when they understand how much you can do and how little space it takes. The PowerBook G4 running Mac OS X will certainly make my personal work faster, easier, more enjoyable, and I can't wait. Looking at the new G4 PowerBook, I can tell all my scientists are going to want one, but I'm

going to want it first. We've actually been waiting for something like this for a long time. My friends and I that make electronic-based music for G4 is portable, to be able to do this in a portable environment—it's just sick, dude. I can't wait to use this thing on a plane, man. You know, take off with it. That's the power of this, and that's what Apple has really put in our hands. It's not about new technology; it's not about a new toy or new box. It's a whole new way of thinking in my, in my,

(applause) so a lot of people at Apple have been working pretty hard lately. We got some great new stuff today: Mac OS X, which will be shipping this quarter—a monumental

effort by our software group headed by Avie Tevanian; new Power Mac G4, fastest Mac in history, fastest desktop on the planet; CD-RW drive standard; new SuperDrive, first of its kind in the world, shipping next month; a new strategy focused on the next great era of PCs, the digital lifestyle era, driven by applications like iMovie and our two new ones today—iMUSIC, available today, iDVD bundled with the SuperDrive—that is going to change everything about how we listen to music and about how we deal with

video; and lastly, a new PowerBook that is the coolest, sexiest notebook on the planet, as well as being the most powerful. Our teams have been very busy, and I'd like you to join me in giving a round of applause to the software team, the hardware team—they've been working very hard: Avie and his team on software, John Rubenstein and

his team on hardware, Avie Tevanian and his team on applications—and their teams have done some just work. I am so, so proud to be sharing with you today. So that's what we have for you today. We've got a great booth with all the stuff out there. Go get your hands on this stuff. Thank you very much. (applause) (music)