Steve Jobs on iBook and AirPort: Wireless for the rest of us

Hi, thanks for coming. This is going to be a great Macworld. You know, everybody at Apple has been thinking different for the last couple of years. We're selling a lot of computers, but there's something else happening here.

The resurgence of Apple, and you're going to see a lot of that today. We've got some great new products, some really great new products, some insanely great new products, some really, totally, wildly, insanely great new products. We have got products that are going to make you, that's not me at all, that's not me at all. Keep blowing it. Look, you're supposed to come over here, open a water, get the slide clicker, then you can put your hands together. This insanely great thing, we started using that a hundred years ago.

Ladies and gentlemen, Noah Wiley. I invited him here today so we could see how I really act, and plus, because he's a better me than me. Thank you, thank you. Thank you, thank you. I am just glad that you're not mad about the movie. What? Me, upset? Hey, it's just a movie. But, you know, if you do want to make things right, you could give me a little part on ER. That would be really great. Dr. Jobs, welcome aboard. Thank you very much. Thank you. Are you still a virgin? Ladies and gentlemen, Noah Wiley.

So we have a lot to talk about today, so let's get started. The first thing I'd like to do is give you a business update on Apple, and the news is really positive. We just reported our third fiscal quarter profits for the quarter ending in June of over $200 million, and that is our seventh consecutive quarterly profit in a row. So Apple is now on a very, very firm financial footing. In addition to that, we crossed $3 billion in cash, and we feel so strongly about the future of Apple stock as an investment that we announced a buyback program to buy back half a billion dollars ourselves over the next period from time to time.

So we're very, very excited about that as well. Another thing that's really key is we've been bringing operational excellence back to Apple, and a great measure of that is inventory. And the way you measure it is how many days of inventory do you still own at the end of each quarter? And as of two quarters ago, we set a record for ourselves of one day of inventory. Well, how do you top that? Well, we did. We topped it with less than one day of inventory, 15 hours of inventory. Now, that's important because the more efficient we are, the more we can save money and pass it on in terms of lower prices of our products.

And how does this compare to our competitors? Well, Compaq with 28 days of inventory, the direct twins of Gateway and Dell at nine and six respectively, and Apple at 0.6 days. So we're very, very happy about this. And lastly, very pleased to announce that Nicky Drexler, the CEO of Gap Inc., has joined our board of directors. We've got a great board, and Nicky's going to make it even better. So that's a quick business update. Now I'd like to get on to the products. The first product I'd like to talk about is QuickTime. QuickTime is a core technology for Apple. We think this is incredibly strategic, and we think we are way ahead technically of anybody else.

And the first thing to mention about QuickTime is that we recently hosted the largest Internet event in history. Lucasfilm came to us, and they said, would you please host the trailer for Star Wars 1, The Phantom Menace? We want to put it out just in QuickTime because that's what our customers want. Our audience wants the quality that only QuickTime can give. And we said, sure. Now, we had to build a lot of infrastructure for this. We've learned a ton because over the last few months, there have been over 23 million downloads of this trailer. And everybody tended to go for the highest quality version, which was 25 megabytes. And so we've downloaded over 400 terabytes in the last few months.

Off the charts. And the experience has been really terrific. Now, we also launched QuickTime 4. QuickTime 4 is the latest release of QuickTime, and it advances it in quite a few areas. We have some terrific new codecs in there to give us the best visual quality, the best audio quality. We also have a whole new look for the player, which has been very well received. But the largest single advance has been to add live Internet streaming. We now do live Internet streaming better than anybody on the Internet for video and audio. And since we put this QuickTime 4 player on our website for download in the second half of April, there have been over 10 million downloads.

This is huge. And so we are powering up with QuickTime, and we're going to give Reel a real run for their money. So, what now? What do we do now? Well, today, we're announcing QuickTime TV. What is QuickTime TV? Well, we want to simply make the best experience for viewers to watch great video on the Internet. And frankly, the experience isn't so terrific now for live streaming on the Internet, as most of you know. So, what do we need to do? What pieces do we need to put in place for QuickTime TV? Well, let's go back to regular TV first.

The first thing we need is a television receiver, right? A TV set. The second thing we need are television stations to broadcast content. But that's not enough, because a television station in California cannot be received out here in New York, or vice versa. And so you need a broadcast network to carry these television stations around the nation, or in the case of QuickTime TV, globally around the world. So, you need a broadcast network. And lastly, of course, you need content. So, these are the four things we've got to pull together to make QuickTime TV. Let's see how we're doing. On the television receiver, we've got the best one in the world in the QuickTime 4 player. Far superior in quality to anything else out there we know of. What about the television station? Well, we did a pretty radical thing with QuickTime 4 live Internet streaming.

Rather than base it on proprietary protocols, like all of our competitors, we based it on totally open protocols, RTP, RTSP. And so anyone can write a server. Anyone can become a television station without having to pay us a server tax, like they have to pay our competitors. And so, in this totally open world, we even went one step further. We wrote a server conforming to these open standards called the QuickTime streaming server, and we're giving it away. There is no server tax. And we're giving it away in two forms. We're giving it away to run on Mac OS X server, and we're giving it away under our open source model called the Darwin streaming server.

You can go to our website and download the full source code with full rights to use this off our website, and 25,000 people have downloaded this. 25,000. It's now running on Linux and a bunch of other operating systems, and people all over the place are starting to ask now, why should we have to pay for server software? Because they don't anymore, and they get higher quality to boot. So that is our television station. Anybody can become a television station now on the internet without having to pay a server tax. What about the broadcast network? Well, obviously, that's the Internet. But it's not quite so simple. On the Internet, there is so much traffic now that if you're trying to receive a broadcast in New York that's being broadcast in California, live streaming on the Internet, it doesn't work so well.

It gets interrupted quite a bit. The quality is quite low. There's no guaranteed transmission rates. And so the experience is not so terrific. But what are we going to do about that? We looked far and wide. We even had some of our own technology in-house. And what we found was that there was a company called Akamai, based in Massachusetts, that we decided to partner with on this. And we have combined our QuickTime streaming server technology with their Internet rebroadcast network. What they've got is they've got over 900 servers sitting on the Internet globally today. And those servers receive the QuickTime streaming broadcast, buffer them up, and rebroadcast them to all the local recipients so that when you receive a QuickTime streaming server broadcast on this QuickTime network, you're hopefully getting it from somewhere very local and the experience is dramatically better than it's ever been before.

And lastly, what about content? Content, we've got some awesome content on QuickTime TV. Some really great stuff. First of all, BBC World. This is BBC World News broadcasting 24 hours a day, live on the Internet, seven days a week. We've got Bloomberg Television, again, 24 by 7 on QuickTime TV network. We've got Fox News, 24 by 7. We've got Fox Sports. We've got HBO. We've got NPR Radio, National Public Radio. We've got the Weather Channel, and we have WGBH in Boston, some great educational content. And also today, we have some new content providers to announce that are now partners on the QuickTime TV network.

The first is ABC News. Terrific quality news. Second, ESPN. And third, Rolling Stone has set up their first Internet streaming website exclusively in QuickTime. We've got VH1 for music videos. And last but not least, we've got Disney. And Disney has some incredibly great family content that they're going to be rolling out. So we believe that we've got some terrific content, and when you put all these four pieces together, the best receiver, the best software to make television stations with no server tax, the best broadcast network, and we believe the best content, we are off to the races with QuickTime TV.

And it will continue to build over the next several months with the goal of bringing the best Internet streaming experience to millions of people around the globe. And so what we'd like to do is show you this now. And I'd like to invite Phil Schiller, our Vice President of Worldwide Product Marketing, up on the stage. Phil, come on up here. Phil is going to give us a demonstration of QuickTime TV. Thanks, everyone. It couldn't be anything more exciting than getting a chance to stand up in front of you and show you some of the best Internet streaming content. With QuickTime TV, we're just delivering incredible quality. So with the new player, I can open up, as you know, and launch movies. Before we begin with some of the live Internet content, if some of you are not in the 23 million people who had a chance to watch this killer trailer we did with Lucas, I'm just going to share a small bit of it to show what QuickTime can do, what QuickTime's for, and no one else delivers.

So that's what 23 million people have downloaded, the same file, the same quality, this remarkable, remarkable video. Now, there's been some fun with that out on the Internet. Some people have created some great content. I'd like to take you to another site that has created some Internet streaming around the same theme. It's from Weird Al Yankovich. Yes, some of his fans are also Apple fans. Now, let me jump ahead a little bit, because we don't have time to show the whole thing, but let's get into some of the fun of it. This is coming from Weird Al's website. Now, look at that. It's amazing quality, streaming from Weird Al's website anywhere in the world to right here on stage. The content is just incredible.

So that's a streaming movie. We're watching a video movie. Let's go to some of the live stuff out there on the Internet and jump up here. Now it is live TV. I honestly have no idea what's on the TV channels right now, so it could be just about anything. Let's jump to BBC World. I am the European Union partner to bring about a lasting peace in the Middle East. I believe that the role of Europe with Great Britain as a central player in it could be to create an atmosphere of support that will include our Arab partners and Israel in an ...

Okay, not the same as Weird Al, but very, very cool. Let's see what's on Fox right now. Okay, now what I want to do is take you to some of the more fun sites with things like music. As Steve mentioned, we've got people like VH1. We've got other people coming up, even live today, adding stuff on their own sites like Warner Brothers with their records, Warner Brothers records and McCree's records.

So now this is another example of something entirely different. I clicked on Warner Brothers records. It's taking me to, this is an Internet stream right now, but it's Flash. It's using Mac and Media's Flash plug-in, which integrates completely with our QuickTime stream and allows us to create interactive content. So right here I have a bunch of albums I can click on. Let me select one, The Living End. It's going to launch a music clip from The Living End. And you notice something. Not only am I watching video, listening to music, but in the same stream I've got interactivity right at the bottom there. So while watching or paused like this any time I want, I can actually click on interactive controls. In this case, with McCree's records, I have a button right on the bottom that says click here to buy this album.

Let me click on that button in the QuickTime stream. It's going to bring up my browser. It's going to take me to their website right to the page where that album is where I can go and choose to buy it if I want. Pretty cool. Let's go to another company. Let's go to Rolling Stone. They have an awesome archive of video, music, interviews with great artists from around the world. Again, a QuickTime and Flash stream comes directly into my player. Any kind of design elements they want. This is coming over to QuickTime network. I can go and click. Let's hear an interview. Very talented guy.

For my last example, I could stay here and play all day, but what I like to do is go to my favorite, Disney. Disney is also using Flash and starting to deliver some incredible content to people over the West. This is the Disney channel inside QuickTime TV. It's completely interactive. Of course, you see a trailer here that they put up from a very anticipated movie. Toy Story 2. Should we watch it? I click on it. It launches another QuickTime window.

A brief glimpse of QuickTime TV. All the great content coming to you. All of this is live over the Internet. Nothing is stored locally. This is what customers around the world, tens of millions of people can do and watch on their Mac or PC. Thank you. Thank you, Phil. Looks like a good movie. Got to go see that one. We are so excited about this QuickTime TV stuff. More and more content is going to be rolling on to the QuickTime TV network over the next several months. It's just going to keep getting better and better. And because QuickTime started out as a technology to achieve very, very high quality, as we get more and more broadband, the quality in QuickTime TV is just going to scale right on up.

And the other guys haven't even thought about how to deal with these quality issues. So, we think we can do it. got an incredibly strong strategic position for QuickTime TV and QuickTime in general. Now the second thing I'd like to talk about today is Mac OS 9. Mac OS 9, we're going to give you a little preview of it today. Mac OS 9 is the next major release of the Macintosh operating system. It's going to ship in October and it's got over 50 new features in it. Now we don't have time to show you all 50 today, so we're going to show you one or two. And the one we're going to focus on is Sherlock 2. Now for those of you running Mac OS 8.5, we shipped a feature in it last October called Sherlock. Sherlock, in our opinion, is a revolutionary feature. It allows you to search the internet in a far more powerful and easy way than ever before. You type in in natural language what you're looking for, Sherlock figures that out, and then dispatches queries to up to dozens of websites and search engines simultaneously.

As the results come back, Sherlock automatically ranks them by relevance, sorts them, and displays them in one window. And it's extraordinarily powerful. But it could be even more powerful. We started to get some feedback that people wanted ways to group target search sites almost the day after we shipped it. But we've gone much further than that in Sherlock 2. And so I'd like to get Phil back up here to give us a quick demo of Sherlock 2. I have the most fun thing. I get to do all this great new stuff that you're all dying to get your hands on. You've got to watch it. It's so exciting. We've got a Power Mac right here running an early release of Mac OS 9. So the demo gods are with us. Everything is just beautiful. Things are going really rock solid and stable with our engineering team. They've given me this release so I can show you this one really great feature, Sherlock 2. And as Steve said, this is the coolest way to search the Internet. It really is like having your own search engine, your own search detective to find whatever you need. And it's done extremely well with our customers. We've heard tremendous feedback. They love using it. And it's made their lives a lot easier to find things faster than ever. So I'm going to do a first search here. It's the new Sherlock 2 interface. I'm going to use the same kind of search I might have done before with the current Sherlock that you may use today with Mac OS 8.5 or 8.6. I'm going to type in a search. For those of you who know, yesterday was the 30th anniversary of the landing on the moon by Apollo 11. I'm personally a big

fan of that. Very interested in it. And so what I want to do naturally is go on the web and find what I can find, what stories are out there, what information is there about Apollo 11 and the mission. So what we have here is some of the search engines all over the web that you might go to one after the other to try to find stuff with different results. And with Sherlock, we've had over 100 plug-ins made in the first week of shipping Sherlock and it's grown from there. So we have a bunch in here. You click on the ones you want to use and I type in my search and hit search. And it's really fast. Now, Sherlock has just talked to all those different search engines, sent out the proper request to each of them, even if they handle information differently, brings it all back from all those search engines simultaneously. They all show up in this window with the name of the subject that comes back, the relevancy to the request I sent, and the name of the site or the page that it's at. So you see a whole lot of stuff here. Found 71 entrances out on the web from all different sites relating to Apollo 11 and the mission. So I can just scan it. I can click on one and get a small little bit of information returned right here to see what I might want. I can go to any one of these. I can sort it by name. I can scan down it.

I can sort it by site. Let's find all the ones. There's a whole bunch here from NASA you can see. Here's one on photography. Let's click that. I'm interested in mission photography. It launches my webpage instantly, takes me right to the website. And sure enough, here's an Apollo 11 website with photography from the mission. Scroll down it. A lot more photography. Here's a photograph from the lunar surface. Just amazing. Within two seconds, I can search these sites, find exactly the information I want, have it jump right into my browser and take me wherever I want to go. It's all done in one simple interface. Now all of that could be done with the current Sherlock. So if you haven't done that, you can go back, explore Sherlock, and learn to do these things. It's so simple. But with Sherlock 2, we wanted to take it to the next step. Customers wanted sets of these plugins because there's so many, to be able to have different kinds of searches. And that got us thinking. Well, not only can we combine these into sets for customers, and they can create their own sets, but we can create sets or channels of Sherlock plugins around different types of information. So one obvious type of information is news.

There's a couple here. I've selected CNN. And now we do the same search, Apollo 11 mission, but let's go to the news site and see what news is out there. So it goes and talks to both of those sites, gets back to news in just a couple of seconds, anything about the Apollo 11 mission. And now you see we've changed the columns. Because if it's news, one of the things you want to know is date. How fresh is this news? And as you see, there's a lot of news about Apollo 11 mission and the 30th anniversary. Let's just pick the top one it came back with. CNN, launch the browser, go right to the page, not through the site, click around on it, right to the page and sure enough, the top results, recent news as of yesterday, Apollo 11 mission. And go click on another one. Oh, let's see. Giant leap, 30 years ago today. Go back to CNN. And sure enough, there's a story about the launch 30 years ago today.

You can explore, read all about it, keep on searching. So just like before, with Sherlock 1, you can search for information, but now we're searching for news, not just anything on any web page. You can just imagine how far we can take this. The channels that let us do things like search for people. Wouldn't it be easy to find one way to click on a name and find anyone out on the Internet? Let's say we want to send an e-mail. I want to send an e-mail to one of the Apollo astronauts, Buzz Aldrin, maybe I'm a class and we want to communicate with Buzz. So there's a standard on the Internet called LDAP. LDAP is a directory services. A lot of companies use it, too. Now it's incredibly easy to write plug-ins for LDAP servers, whether they're your own or anyone out on the Internet. We've got three popular ones here from Bigfoot, 411, and Yahoo. They're LDAP servers for people on the Internet. I click search, and it's going to look with no search engine for any reference to Buzz Aldrin. And sure enough, here comes back. It's found 10 references. And look at number two, Buzz Aldrin at NASA.gov. I think we found Buzz.

If I double-click on his name, it launches my e-mail package and addresses an e-mail to him. Just have to write my e-mail and click send, and we're all done. Now that would be great right there. Search for information, search for news, search for people. Already we're doing more than anyone else has delivered. But there's one more feature I want to show you in Sherlock 2 that no one is doing that really is going to change the way people work, play, do something special on the Internet. And that something special is shop. I'm going to click on my shopping basket here. We have a number of e-commerce sites. Now I can simultaneously shop around the web around different e-commerce sites and shop for whatever goods I want, compare price, availability, exactly the kinds of things you want to do to make shopping fun on the Internet. This time let's go back to Apollo 11. I want to find items. In this case I've clicked on Amazon books, music, and video, as well as Barnes & Noble. I want to find any of those goods that have reference to Apollo 11. As you know, those sites work differently, Amazon and Barnes & Noble, but with Sherlock I have one easy interface that I know how to use that works the same no matter what information I'm searching for.

Now, look what Sherlock 2 has done. It's not only brought back the results, but it's presented a new list of information. The name of the item, the price, and the availability. Just what I need to know to shop. We can sort by name. I can sort by age. I can sort by gender. I can sort by price. Some of them have no price. Perhaps it's a book that's out of print. Let's reverse it, look from top down, look at the most expensive item on the books and CD-ROM site. I can sort by name and find the item at two different websites and compare the prices and see if it's comparison shopping. Here's one. Let's see. First in the moon, what was it like? Let's double click that. It's available in two to three days, just over $11. I can handle that. It takes me right to the web page with that item on it on Amazon. All I have to do is click add to my shopping cart and I'm ready to buy it.

Add to it and purchase it. So easy. Let me show you how fun it can get. Let's go back, select our search engines again, and this time, let's check Amazon auctions and eBay. And let's look for rare auction items that have anything to do with Apollo 11. We click search, and it's gone out, and it's found on those auction sites, anything to do with Apollo 11, sorted by name, sorted by price, and can sort by availability. Now remember, these are auctions. So now we're gonna see things that are up for auction for the next four days, something that's up in one day. I can quickly scan through and know which items I'm interested in and how fast I better worry about them because they're about to end soon. You get close to one that's ending, you'll see that they're in minutes.

Here's one of the cool things, let's sort by price. Top item, $10,000. I don't think so. I don't think so. I'm a fan, but not that much of a fan. Let's pick something else. Apollo 11 original print, $100, there's still five days left in this auction. Let's double-click on it. It's gonna take us right to the Amazon section. It tells us I can add a bid by simply clicking on the bid, or let's see a description. And those are the prints that are available for auction right now that I can add my own bid. So it's that easy to shop across the internet and find things for books, for movies, for videos, for toys, for auction items, and comparison shop. Find out when things are available, and shopping is never gonna be any more fun than when we get Sherlock 2 out there.

Thank you, Bill. Bill, Bill, Bill, okay, thanks. Thank you very much. That's awesome. So we think Sherlock 2 is gonna be really, really hot. And there are over 49 other new features in macOS 9. It's gonna sell for $99. In October, you can get a whole new Macintosh for $99. And we look forward to getting your reactions when we ship it. Now, we come to the systems. As you know, we define a system as a system. A very, very simple product strategy.

Four products. A desktop and a portable in the pro space, and a desktop and a portable in the consumer and education space. And we thought if we could focus on four great products, put our eight teams on every one, we could really satisfy our customers. And as you may know, we have three of those products shipping today. On the pro side, we got our Power Macintosh G3. It is more powerful than any other PC you can buy at any price. It is the number one choice of creative professionals around the world, and it's doing great. On the pro portable side, we introduced our new PowerBook G3 in May. It is wonderfully thin. It's two pounds lighter than the model it replaced.

It is the fastest portable in the world. Beautiful 14-inch screen, and we're selling them even faster than we can make them. So we're very excited about that product too. But today, I'm gonna talk about the consumer space. So first, let me start with an update on our consumer desktop, which is iMac. iMac is doing phenomenally well. As you know, we introduced the five colors, our code name internally for that was Lifesavers, in only January of this year. That's seven months ago. Seems like a lot longer, doesn't it? Because these things have taken off like a rocket. We shipped more iMacs last quarter than any time ever since the product was announced. So iMac is going gangbusters. What's really interesting, what's really interesting though, is that iMac has become almost pervasive in our culture, and yet it's less than one year old.

Doesn't it seem like it's been around longer than a year? We started shipping iMac last year on August 15th. So iMac's first birthday is in a handful of weeks from today. And I'd just like to review a few things that have happened during this last year. By the time iMac is one year old, we will have shipped a little shy of 2 million iMacs the first year. And what people are doing with these things is extraordinary. In the US, almost 90% of iMac owners, that's nine out of 10, are using their iMac to surf the internet. And it really validates why the i is an iMac. Around the world, the average is one out of every three iMac buyers is a first time computer owner.

One out of every three is new to the Macintosh install base. And iMac's one year anniversary also marks the one year anniversary of us adopting universal serial bus. When we were designing the iMac, we realized it was our chance to take a big leap forward in how iMac communicated with peripheral devices. And we dropped the legacy IO that Apple had for something much better. Something 30 times faster. Something that really extended our leadership in plug and play because you could plug it in and unplug these peripherals even when the power was on. And the device drivers would just automatically configure on the fly. Much, much better. And so we decided to take the leadership role in USB.

And we started evangelizing all of the device makers. And I'm proud to report that it's worked. We started off with 25 USB devices last September. There are now 125 shipping USB devices with another hundred announced on top of that that will be shipping in the next few months. So very shortly, almost 250 USB devices are gonna be shipping. And this is terrific. And I'd like to just highlight a few of them for you. NEC has just come out with a portable scanner. If you're into scanners, you've gotta see this. I've got one here to show you. This little, tiny, beautiful scanner is all based on USB. It's a flatbed scanner. It plugs right in to your iMac's USB port.

It gets its power from the iMac. So there's no wall transformer to come along with it. So if you need a portable scanner, this is very hot. Another thing that people have been asking for a lot are multifunction printers. These are devices that print, scan, and fax all in one unit. Well, there are three of them being introduced at the show today. Two by Epson. Epson's got a great one for the consumer. Again, print, scan, and fax. And for a little bit more money, they've got one with a flatbed scanner on it. These are extremely high resolution, beautiful cameras that can print, scan, and fax. Beautiful color devices, all USB. Canon is also introducing one at the show. You can see all of these in our booth. So we are really, really happy with the progress of Universal Serial Bus.

And of course, we are rolling it out across our entire product line. Another thing that's happened in iMac's first year is there have been almost 4,000 new and renewed Macintosh applications announced since iMac's shift on August 15th. Thank you. Thank you. Thank you. Thank you. And this is essential. It means that developers are coming back to the Mac and are recommitting to the Mac in a very big way. And this is one of the most important things we do, and I think we've seen a tremendous amount of success during the last year. And I'd like to highlight just a few of those for you now. One is Disney. Disney does great CD-ROM products around their films.

And again, I'm very pleased to report that when Toy Story comes out, they're coming out with four great CD-ROMs, all four on the Mac, day and date with the movie. So they're doing some wonderful family products on the Mac that will be coming out this fall. Another one I'd like to highlight is a game from Bungie. Now, we put an initiative in place to get games back to the Mac. For some reason, Apple forgot about gaming. And gaming is really great. So we went to the best game authors in the world and we let them beat us up, and they did. And they told us what we needed. They said, you need much better hardware 3D acceleration, and you need to choose the highest performance software to interact with that, so we have a great software platform upon which to write our games.

And that software platform is OpenGL. And so we started building much higher performance 3D hardware into every computer we make, and we adopted OpenGL and implemented it. We now have one of the fastest, cleanest implementations of OpenGL out there. So we are starting to see some great games come back to the Mac, but this is one of the coolest I've ever seen. This game is gonna ship early next year from Bungie, and this is the first time anybody has ever seen it. It's the first time they've debuted it. And so I'm very happy to welcome on the stage Jason Jones, who is the co-founder of Bungie and the Halo project lead. Halo is the name of this game. And we're gonna see, for the first time, Halo.

Welcome, Jason. Thank you. Welcome. So, our game's called Halo. Like Steve said, nobody's seen it before. This is the first time we've ever showed it in public. Halo is an action game. You'll be able to play it by yourself. Even better, you'll be able to get it on the internet, play it with your friends online. Our multiplayer games can be heavily focused on cooperative team play rather than playing as an individual. Quick Time is really cool, but what I'm about to show you is not a Quick Time movie. Everything you're about to see is being rendered in real time on a Macintosh using OpenGL. Thanks a lot. Halo is still a work in progress, and when it comes out first half of next year, it's going to be even better. Thanks everybody.

That's the best yet, isn't it? Isn't that awesome? One more thing to show you today in the application side, we are really pleased to announce that IBM is going to be bringing their via voice speech recognition technology to the Mac. And this stuff is world class stuff. It's wonderful. And I am very pleased to invite Ozzy Osbourne up on stage. Ozzy is the general manager of IBM's speech systems. They're going to give us a demo. Ozzy? Hi Steve. Steve, it's great to be here. IBM and Apple have had a long relationship over the past years, and it's just great to be able to announce our leadership speech technology via voice on the Mac platform. We really are excited. I think this is the first of a long story about where we're going to get to in speech enabling an easy to use interface, the Mac, and we're going to make it easier with voice recognition. But instead of talking about it, I think the best thing to do is demonstrate it. What I'd like to do is introduce Jeff Kuznets from our development lab to come up and give us a show. So Jeff, come on up.

Good morning. Okay. I guess first thing first, put the microphone on. You notice it's a really cool microphone. It was actually specially designed for via voice for the Macintosh and of course color coordinated to go with the Macintosh. Mom, new paragraph. Check it out, exclamation point. I'm sitting on a stage in New York City with Steve and Ozzy, period. No, comma, not that Ozzy, period. This one doesn't eat fast, period. He talks to computers, period. And that's exactly what I'm doing right now, sitting here talking to a blue Apple Macintosh using via voice for the Macintosh, period.

Thanks for the Microsoft word. So you can see we have some great technology. It's great to be on the Mac platform. We have a lot more to show you. If you come by our booth, we can give you a great demonstration. And we are raffling off IMAX one a day. So come see us in the consumer booth. Thanks, Steve. And it's great to be back with Apple. Thank you. How long to you two, Ozzy? It's an IBM greeting.

Okay. So almost 4,000 new apps in the last year. And those apps contribute to the over 13,000 Macintosh products that are shipping today that you can go and see in the Macintosh products guide on Apple.com. So please check it out. One year. And that is our IMAX update for today, which leads us to this blank square. There's been a lot of speculation about this, a lot of rumors. And I get to end them today. We're going to introduce our consumer portable machine.

So we've been working really hard on it. And I hope you like it. So we went to our customers. We went to our consumer and education customers and said, what do you want in a portable? What precisely is it that you want? And we listened very carefully. And when you added it all up, what they wanted was an IMAX to go. They loved IMAX. They wanted an IMAX to go. Could we make an awesome IMAX to go? And we have done that. We hope. So first of all, what are we going to call it just so we have it named or referred by? Well, as you know, we tend to start our consumer products with the prefix I and our pro products with the prefix power. We tend to end our desktops with Mac and we tend to end our portables with book. So since we're such logical folk, iBook is the name of this product.

Now, what is iBook? Well, as you know, we care a great deal about displays. And displays are never more important than they are in a portable. The display is your window on your software applications and it's your window into the Internet. And a lot of portables, especially the consumer portables out there, have really poor displays. We want to set the bar even higher. We're putting in a 12.1 inch full display. It's a gorgeous display that is great for not only still images but moving images and video. And that's a full 800 by 600 resolution with millions of colors. But we didn't stop there. We built in the fastest graphics ever in a portable. Faster graphics than you can get in any portable at any price. Secondly, we built in a 300 megahertz G3 processor. This thing is really, really fast. It's a rocket ship. As a matter of fact, this thing is the second fastest portable in the world. It is faster than any wind tell portable at any price and it is only to our venerable PowerPoint. Third thing, we built in a CD-ROM because our customers want to be able to load applications in very easily and our developers want to be able to sell applications very easily. 32 megabytes of memory expandable to 160 megabytes, 3.2 gig hard drive. We built in a full complement of communications to this thing. 56K modem in every single unit, USB in every single unit, and 10 100 Ethernet in every single

unit, which is unheard of in the consumer marketplace. And we built in a full size keyboard. If you've ever tried to type on one of these dinky little keyboards, you know how valuable this is. And then we get the battery life. With all of these features, with this 300 hertz G3 processor, with this gorgeous 12 inch screen, we still wanted groundbreaking battery life. We wanted battery life so good you'd never have to buy a second battery. You don't have to bring your charger to school all day long or carry your charger a lot of places that you've had to in the past. And our engineering team has really come through on this. With these incredible features, 12 inch screen, super fast processor, all these communications, we have achieved six hour battery life on this product. So you've got an all day battery life product now that you don't have to take the charger with you during the day. And that's what we were shooting for. So that's iBook. And what I'd love to do is show it to you right now. It's really beautiful. This is what it looks like.

And it's got some beautiful features on it. First of all, this is the front of it. This is the back. This is the side. Now, this is made incredibly durably. This is polycarbonate plastic, the stuff they make bulletproof vests out of. But we've gone one step further. We've double shot it in rubber all the way around. So what you see in orange is all rubber. It feels wonderful and it makes the unit even safer to travel with. Again, all on the back. When you open it up, it's really beautiful inside. Again, full size keyboard and pointing device, beautiful 12 inch screen. Here's the communications. On this side, the communication ports all on the side. CD-ROM comes out this side. And let me tell you a few other really great things about this. One of the most incredible, it has a handle. So it has something that no other phone has.

portable on the market has, but it's also missing something that every other portable has. Notice anything missing? A latch. There's no latch on the iBook. It works like your cell phone to beautifully close and stay closed and yet lift just by your finger. It's really beautiful. We are going to be offering these in two colors, tangerine and blueberry. They're both really beautiful. Thank you. Let me show you some slides on this so you can get an even better look. Thank you. This is what we are up against. This is the number one selling consumer notebook in the world. This is iBook. It's really, really beautiful. This is the front. This is what it looks like open. This is the back, which is even more beautiful than the front of the other guy's computer. This is the side. Again, you can see that double shot rubber cutting across. Let me show you the CD-ROM, how it pops out. Isn't that nice? It just pops out of there. Let me show you the other side. This is the communications port. We've got a modem, Ethernet and USB coming right out the side. No doors to open

or anything else. We've also got the handle, which is really nice. And this is the charger. It's really beautiful. It's this little round thing. You know how you have to wind the cable around the brick now? Not anymore. This thing has a cable wrap built right in it. It's really beautiful. And so, again, we're going to ship iMac in tangerine and blueberry, two wonderful colors. You'll be able to see them out in the booth. They're really, really great. So, what are we going to price this at and when is it available? We thought a lot about pricing.

This complement of features, again, iBook is faster than Wintel notebooks that you could pay $3,000, $3,500 for. It's got a beautiful screen on it. It's got communications like Ethernet built in that you'd never find in a consumer notebook. IBM's cheapest consumer notebook is $1799, but if you really look at something that's comparable in features, it's over $2,000. And we knew we probably could have sold most every one we made for over $2,000. But we've decided to price this within reach of our education customers and our consumer customers. We're going to price it at $1599. And it'll be available this September in volume. So, $1599 this September in the stores. And you can order them today right on the Apple store or through your favorite dealer. We are accepting orders as of today on the store and in the channel. So, this is iBook. And it's really great. And what I'd love to do, and of course this completes our product matrix, right? We finally now have all four products in the grid and we're going to be shipping all four of them by September and we're really excited about this. So, I've got a few television ads, if you'd like, that we're still working on, but I'd love to get your opinions on for iBook if you want to see them. You want to see them? Okay. So, here's what I want. I'll show them. They've got a few seconds of space in between. And after you see them, I want to do an applause

in the meantime. But afterwards, remember your favorites and I want to get back to your opinion on the favorites. So, let's go ahead and run the TV ads now. So, everybody that liked number one the best, please clap. Okay. Everybody that liked number

two the best, please clap. Okay. Everybody that liked number three the best, please clap. Okay. And everybody that liked number four the best, please clap. There were two clear favorites there. Well, good. We'll pick and you'll see them on TV. But thank you. This helps us a lot. So, that is iBook. But there is one more thing. There is one more thing. Let me just show this to you for a minute, okay? Can you come on up here? I just want to show you this working. And I've got one here that's actually working here. And let's see here now. So, this is coming up out of sleep mode. Let's get the lights down so we can get a nice picture on the screen. So, you see me? You see my browser here? Yeah, there you go. So, I'm just going to go to Apple's website here. Hold on. And I want to show you the quality of the display. You see up there, okay? Let's get the lights down a little more. You can zoom in if you want to. There you go.

There's Apple's display. And we even have a webcast going, actually, that you can go to now. And it's pretty cool. So, it's taking a while here for me. I'm going to go somewhere else. I don't want to wait. I'm going to go to CNN interactive here and see what's on CNN. There's CNN. You can see. And maybe I'll go to Disney here. Let me show these guys how it works. No wires. No wires. What is going on here? We are really excited to announce in addition to iBook, AirPort wireless networking.

We looked at all of the networking technologies out there beyond terrestrial Ethernet. We looked at the phone line stuff that Intel and others are doing that runs at a megabit per second and obviously keeps you tied to the plug. We looked at the power line stuff, again, very slow and tied to the plug. And wireless was the only thing that would free you from these doggone wires. And we decided to go for it. And we are so excited about this. Airport wireless networking. It's a wireless LAN. It runs at 11 megabits per second.

And it's based on industry standards. This is 802.11 wireless networking and everybody is jumping on board with this thing over the next six to nine months. So all sorts of devices are going to be able to interact with airports. We're just going to be there first and best. And the specification also incorporates quite a bit of privacy protection so everything you send out is encrypted. A lot of privacy. We've worked with Lucent on this for the last 18 months, hand in hand, to marry their wireless technology with our ease of use technology and to bring the cost of this down for people because this stuff has been pretty pricey to date.

So airport, what is it? This is the first thing. This is the airport base station. And it looks like this. Right like that. And so the airport base station is really cool. You can look at the back of it here. It's got a 56K modem built in so you can plug it into a phone line for a modem connection. And it's got Ethernet built in so you can hook it into a DSL modem, a cable modem, or a terrestrial Ethernet. And it takes over from there and gives you the wireless base station.

So what about the computer side of things? Well, iBook is the first computer ever designed right from the start to be optimized for wireless communications. And so right in every iBook are two built-in antennas. When you're doing wireless, having very high quality antennas placed just perfectly in the product is what gives you the high data rates and the range. And we have built them in the perfect place in every single iBook. Then we have an airport card, a small little card. And the iBook is designed to accept it. So let's take a look at that. As you know, Apple pioneered this way of adding memory without taking your whole portable apart through simply lifting the keyboard.

Well, we have enhanced that now to take an airport card. And as you see, there's a space right there in every iBook ready for an airport card. And you can drop one in just like that and connect the cable that comes from the antenna. Right? You saw that? I'll go back. Just connect that cable and push it in. And now your iBook is airport functioning. You are on the wireless network. All the software detects the airport card and automatically sets it up for wireless networking without going through hours of configuring your computer. It all happens automatically. This has been a major effort on the part of Apple's hardware and software engineers and also Lucent. Now up to ten iBooks, up to ten iBooks can share one base station.

And they can do it, whoops, and they can do it from 150 feet away. That's half a football field. Half a football field. It's bigger than anybody's house I know other than Bill Gates. He can afford to buy two base stations. So I think we're covered. So this is going to be a revolution in the classroom and in the home for portable networking. Oh, ten iBooks, 150 feet, and that's airport. So what I would love to do now is tell you the pricing on this stuff and we'll go to a demonstration. $99 to buy an airport card to plug into your iBook, $99. And the base stations, which have traditionally cost many, many hundreds, if not over $1,000, $299.

So we are bringing the cost of wireless networking down, going right out of the chute with 11 megabits per second, and we think we're going to blow everything else out there away. This stuff is shipping in September with the iBooks. And I've got one last TV ad I'd love to show you about airport, if I can. Let's run it. Oh.

We can't help ourselves. So, what I would love to do now is show you some of this stuff. I'd love to show you, I've got an iBook over here, and I do have a few wires on it hooked up to simply a video out and up to the headphone jack so you can hear. But other than that, I'm totally wireless. So let's go ahead and I'm waiting for the unit to wake up here. There we go. You ought to be able to see it on the screen. There we go. Okay, good. So the first thing I'm going to do is, as the unit finishes waking up, I'm going to go ahead and run Internet Explorer.

And it's, again, all wireless. We've got some base stations set up in here. And I'm going to go to part of Apple's website that's got some movie trailers in my browser. And so my browser is going to take me there. And we've got a James Bond trailer here. All right, we're going to try again. Whoa. Oh, new window.

Sorry. No? What is going on here? There we go. And so I'm going to try this. If it doesn't work, I'll try something else. So here we go. The trailer is pretty cool. It's, of course, a lot of bandwidth on these trailers. So let's go ahead. This is all happening over wireless networking now. You get the idea.

Over wireless networking. Now what I'm going to do is I'm going to bring up a QuickTime player and go one step further. Let me show you full Internet streaming, completely wireless. So here is BBC World News Internet streaming over QuickTime TV. Now, I'm going to do one last demo. This is an application written by a company called ImagiWorks. It's an educational application. And it's a very simple application. It's a very simple application. It's a very simple application.

It's a very simple application. This is an application written by a company called ImagiWorks. It's an educational application. And what it does is it allows us to hook up an accelerometer to the USB port of any of our computers. So we've got one hooked up to an iBook. And this application is transmitting that accelerometer data from an iBook that Phil Schiller has to my iBook here. And so we'll be able to see it on the screen. So I'm going to go ahead and connect to Phil's iBook here. And I've got to type in a magic incantation here. Now, hopefully I will be connected to Phil's iBook.

I think I am. Phil, you want to rattle your iBook up and down, get that accelerometer going? There it is. There's Phil. And so, this is all happening totally wireless. Now, to prove that to you, I've asked Phil to do something he's never done before, and I told Phil he's going to get into the demo hall of fame if he'll just do this one simple thing for me. So, Phil, where are you? Hey, guys. There he is. So, tell us what... I'm up here. I've got the iBook. It's got the accelerometer attached to it, and this couldn't be a better place to prove it's really wireless. I am up here. Well, that's great. So, what are you going to do for us, Phil? I thought maybe I'd just throw it off to the side and try to get some acceleration going.

Well, that could be good, but I think it's got to be a little more drama to it. I think you should jump. I'm sorry, I don't think the mics are working. You said what? I think you should jump. All right. I don't know. You guys think I should do it? I don't think I know anybody really out there. Okay, so why don't you go ahead and rattle the PowerBook just to show us it's still working here. There we go. So, any last words you want to say, Phil? Well, I did a demo of Apollo 11 since it's the 30th anniversary, and probably the appropriate thing to say is this is definitely one small step for a man and one giant leap for wireless networking. Okay. So, let's count Phil down. We're going to go three, two, one, jump.

Ready? Three, two, one, jump. Big hand for Phil here. Awesome. Awesome. Awesome. Awesome. Awesome. Awesome. Awesome. Thank you. You know, nothing is beyond the call of duty at Apple. So, we've now completed our product strategy.

We have all our products shipping starting in September. We've worked very, very hard to do this. And we have a lot of Apple people in the audience who represent everybody at Apple who's just worked really hard. And I would love it if all the Apple folks could stand up for a few, just for a few seconds, please. Phil and I get to stand up here and have all the fun, but it is a real privilege to be working with the executive team that we've got at the company, which is the best I've ever worked with in my life, and all of the incredibly talented and dedicated people at Apple that are working really hard to make some incredibly cool products for you.

So, as we conclude today, I would like you to be the first people to actually see iBook up close, to see it with its airport wireless networking working. And so, could I please get the lights up? We've got a hundred Apple people in the audience that each have an iBook with airport wireless networking working. Can you guys stand up, please? And so, there's somebody not too far from you. And you can get your hands on an iBook and be the first people in the world outside of Apple to actually see it. So, thank you very much, and we'll see you at the show. Bye-bye. Bye-bye. Bye-bye.