Steve Jobs on iMac DV: Desktop Video for Everyone

Good morning. Thank you very much. It's a lot of applause when you guys do all the work.

We got a great day today. But before we get started, I just wanted to mention something. One of the great inspirations to me and a lot of the folks at Apple was Akio Morita at Sony. He passed away this Sunday at the age of 78. And while he was leading Sony, they invented the whole consumer electronics marketplace. First transistor radio, Trinitron television, first consumer VCR, Walkman, audio CD. The innovation that they brought to the marketplace was staggering. And as he expressed his love for his fellow species through his products and his company, I've certainly been very inspired by it. And I hope that some of the things that we're going to be doing today would make him smile.

So let's get started. First thing we'd like to do today, we're going to announce Macintosh OS 9, the next major release of the Macintosh operating system. We're announcing it today. It's got 50 new features in it. It is the best Internet OS ever. Ever. There's nine Internet power tools that I'd like to talk about a little bit. We're going to show you some of them. The first one is Sherlock 2. When we shipped Mac OS 8.5 a year ago, it had Sherlock 1 in it. And it was amazing. You can type in natural language queries like, why is the sky blue? Sherlock 1 will parse them and send them out to multiple search engines on the web simultaneously.

And as they send back results, Sherlock will dynamically rank them for relevance and present them in one window, and you can click on any of the results and go directly to that web page and find what you're looking for. So you can be searching 20, 30 web search engines simultaneously. It's amazing. We've gone much further with Sherlock 2. The first thing we've done is, Sherlock has a plug-in architecture, and very rapidly people have wrote over 200 plug-ins for Sherlock to not just search the most popular web search sites, but even some of the more obscure ones. The problem was, you had to go down this long list and click which ones you were interested in searching for a particular query. We've now put channels on Sherlock 2. So you can have groups of target sites. But we've gone much further.

Because we've made channels not only for news and information, but for people to go out and search the LDAP servers and find you how to get in touch with people on the internet. And the biggest one, of course, is shopping. E-commerce. You can now type in what you're looking for and search all of the e-commerce sites and come back and have the items, the price, and the availability. You can sort by price, you can sort by availability, you can sort by merchant. .

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. . . . . . . . . News ranks by date, because for news you want information that's the most recent information available. But I really want to show you my favorite, which is shopping on the internet. I don't know about you, but I've started to buy a lot of things over the web, and every website works differently. What you want is a simple way to search on Amazon and Barnes and Noble and Buy.com and eToys, but it all works with one simple interface.

Well, now you have that with Sherlock, too. Just look for Sherlock Holmes, and I've selected books, books at Amazon, at Barnes and Noble, at Buy.com. Again, when I say search, Sherlock is going to go out to those e-commerce sites, gather the information about books that relate to Sherlock Holmes, bring it all back to me in one simple interface, and now the information is relevant to buying, which is the name of the item, the price that it is, and the availability, how fast can I get that item, because that's what you want to know when you're shopping. It's so easy. It's just a single click, and you get access to all these e-commerce sites, and again, I can pick one, The Adventures of Sherlock Holmes on Amazon. It's $2.39, available in two to three days. Double click, and I go straight to that page on Amazon.com.

All I have to do is click on the shopping cart and add it to my shopping cart and be ready to buy. Now that's for purchasing goods like books or movies or CDs. You can also look at auctions, so let's go back and let's turn on Amazon auctions. I think a few people out there use the auction sites, and eBay, and now let's reach out and find anything to do with Sherlock Holmes that's up for auctions, and again, it comes right back, starts to present the data to us. You see the name of the item, the price, yeah, the first one up there, one cent, one cent, I think you can get in on that, and availability. Now availability's really great, because on the auction, it's not how fast it takes to get to you, on an auction site, it's how long is it still up for auction.

So let's go look at that one, two paperbacks for a penny, it's still open for five days, or let's sort it the other way, $250, I can go get an item called Sherlock Holmes in the House of Fear, but I'm on a budget, let's go to that penny one. And sure enough, we go right to the auction site, right to the item, we can read all about it, learn all about it, about the books available for a penny, and join that auction, and then I can keep in Sherlock, and keep tracking it. Yep, pretty funny. So I can keep track of it, and know when it's available. So that's Sherlock, with Sherlock you can search the web for people, search for news, search for items you want to buy, track auctions, all in one simple interface, and get instant access to everything you want.

This is one of the internet power tools, Steve mentioned a few others, let me show you some of them. We're going to log out. We've been working just like my Mac does every single day, only now I can log out, and I'll see a panel that allows me to log in as different users. I was actually logged into Steve's area where we were doing that demo of Sherlock 2. Let's log into my area, and see some of the differences. Now when I do this, I'm going to actually do a voice print log on. Now for those who work with voice, you know how risky it is to on stage with microphones and speakers and people, do voice print, because it's using biometric feedback to measure my voice, but let's try it anyway, it's such a cool feature. Now when I click log on, it's going to prompt me for a passphrase, you can pick your own passphrase. I'm going to speak it, and it's going to measure my voice.

My voice is my password. Great, it worked. Now as I use my voice to log into the computer, everything's changed. My desktop pattern's changed, my font preferences have changed, the applications I can access have changed, the documents have changed, even all my internet settings. My browser's selected, my ISP settings are set up, my email password's set up, it's all set up ready to go for me, as opposed to another user, and I can protect information from other users seeing it. I can obviously protect things in my documents folder. It keeps Phil's document folder open only to me, but let's say someone still got around everything and got onto my system, well now I can use file encryption built into the operating system.

Here's a photograph, surprise vacation, picture of the Eiffel Tower. Let's say I don't want anyone to know where we're going on vacation, I want to encrypt that file and hide it from prying little eyes. I go up to the file menu and just say encrypt. And macOS is going to ask me to create a key, a password, that will protect this file. I'm going to type in a password and not tell any of you, and I'm going to turn off a little checkbox down there called add to the keychain, and I'll show you how that works later. So encrypt the file, it's now encrypted, it's got a key on it, if anybody tried to get onto my system and access this file, they double click, it's going to ask them for a keyphrase, it's going to ask them for that keychain.

I'll just type in something different now, different, it's not supposed to work, so if everyone knows that. It didn't work, great. So that's not supposed to work. Sometimes the best demo is one that doesn't work. Okay, now let's type in the real password. We'll decrypt it, it automatically opens it, and now it's available to me again. So it's that easy to use encryption. Now let's try it with that extra feature I told you about. Let's go and encrypt it, and I'm going to add my password, and I'm going to leave it checked to add it to my keychain. I'll encrypt that file, it's now encrypted. You get on the system, you can't open it, I send it to someone, they need to enter the password, if I've provided them the password, but because I'm logged on with my voice, I've opened up my keychain and all my files and all my preferences for the keychain with the passwords and IDs, when I double-click on it, it just automatically unlocks it and opens it.

So only I can get into it once my keychain is open. So that keychain is very, very powerful. Let me show you how it looks. The keychain keeps track of all my personal information that I add to it, access numbers to servers, to websites, to bank accounts I want to keep track of, and it's all encrypted in a very secure data encryption so people can't pry into that keychain file and get access to all that data. Let me show another way that the keychain helps us. I'm going to open one of the other internet power tools, the network browser. With the network browser, I can now have instant access to HTTP servers, FTP servers, LDAP directories, anything I use to find standard servers out there in the internet.

And I've created an icon right here for my own home network. This is actually going out over TCP IP. I'm going out over the internet, I'm going to access a machine, Phil's iMac at home, double-click on it, you see its drive there, I'm going to launch it, and it's now mounted the hard drive from my home machine over the internet with a standard Mac look and feel. Doesn't feel like a web page or a browser, it just opens right to my desktop. And there's a password on that, and it's stored in my keychain, and automatically in the background the keychain's allowed me to have access to it, unlock it, and get onto my folders at home, all automatically, all with a standard, simple Macintosh user interface. So accessing files over the internet with other Macintoshes can be just as easy as working with them on your local hard drive.

So that's a little look at encryption, at the network browser and the keychain. I have one last set of demos I'd like to show you, and something just like Sherlock that in and of itself is worth the entire upgrade, and that's the software updates. It's incredibly powerful. What I have here is a hard drive, a hard drive that's plug-and-play. And I'm going to take that hard drive and I'm going to plug it into my Macintosh. It will now power up and spin up the hard drive, and a new dialog box comes up, and it says, I don't have the driver for this hard drive. I think many of you have experienced something like this in the past. Now you have to go fish and hunt up a CD drive, a CD or something. No, not anymore, because it's asking, do you want to look for this over the internet? Let's click OK.

And what it's done, it's gone out to a secure Apple server, and it's looked to see if Apple has a drive, a driver for that device, found it for us, and when I click install, it's going to download and install in one step the driver I need. That makes the internet so incredibly useful for all of us, to make just plug-in devices truly plug-and-play. Now the drive has opened up, and you see a couple of great games on that drive. We love games here at Apple, we really love games. And I have on my drive three really hot new games, Quake 3 Arena, Tomb Raider 3, coming out this fall, and Star Wars Podracer, also coming out this fall.

I really want to show you Star Wars Podracer, so let me start that game. Same thing. This is planned, this is planned. It's telling us that we don't have the latest version of OpenGL. I'm sure a lot of you know that OpenGL is the great 3D API that now we're using to bring the best games onto the Macintosh. But what do I do? Well, it's so easy. I can just go to my software updates control panel, and in here I have two choices. First of all, I can set up my Macintosh to automatically update itself automatically. a schedule. I can set a schedule and say, you know, every Sunday night check Apple's server and make sure I have the latest software. Or in this case, if I don't want that to happen, I'm just going to click the update now button and the second I click it, it's going to scan the contents of my system folder, it's going to look at Apple's secure server and compare for any updates that are newer there than what I have on my system. Let's do that right now. It has gone out to the Apple server over the internet and it's found, sure enough, there's one piece of software there that's newer than what I have, it's OpenGL for the Macintosh. If I don't know what that is, I can click on it, read about it, and then sure enough, that's what we need, so I'm going to click install. It's going to, again, download and install in one step, automatically OpenGL for us. All done. So now let's try that again.

No restart. Very good. So if you take just a moment here to launch Podracer, it's again a new game from Lucas Entertainment. We're loading up now all the sound and graphic files. It's based on the movie Star Wars Episode One. A lot of the people who know me know I love games, so I'm going to go in. Let me give you a brief look at what this game is going to be like on the Mac. We can pick our ship, different choices. We'll stick with Anakin. We can pick different race courses. All right, let's start the race. Pretty cool. Oh, no. Oh, no. Yep, it's an awesome game, and Mac OS 9 is the greatest release, and I hope you all enjoy it. Thank you very much.

Pretty cool, huh? Those are just a few of the over 50 new features in Mac OS 9. It is the best internet OS ever, and it only costs $99. For $99, most of these features alone are worth $99. For $99, you get a whole new Macintosh. And we are having a huge US dealer event on October 23rd, where we're going to premiere this in the US channel. We're going to have demo days and a big blowout at the dealers, so this is when hundreds of thousands of copies reach the channel, October 23rd. OS 9, this is what it looks like in the stores. We're very proud of this release, and I would like to give a round of applause to all of our software engineers in the audience.

You guys have done a great job on this. It brings us to systems. As you know, we've got this really wonderful, simple product line strategy. For product families, we've got a desktop and a portable for our pro customers, and a desktop and a portable for our education and consumer customers. Very simple. And for the first time, just a little over a month ago, we filled every quadrant, the iBook being the last to join. So we've completely retooled the product line. I'd like to review them with you right now. I'd like to start off with the Pro Desktop, our brand new Power Mac G4. This thing is killer. It's not only incredibly beautiful, but it's got features like the incredible door, the side door that lets you access every component inside in seconds. But the biggest thing it's got inside is this G4 chip. It's like a rocket. It is a supercomputer on a chip. It performs over one billion floating point operations per second. That's a gigaflop. It's the first microprocessor to ever have this level of performance. And it toasts the new Pentium 3. It just toasts it. So we're extremely excited about this product, and we have a

price that's very aggressively. It starts at $1,599. We have a whole bunch of different models. You can go to the store and configure one of over 8,000 different configurations. And we've been running this really cool TV app. And if you haven't seen it, I'd love to show it to you now. So let's go ahead and run the app. For the first time in history, a personal computer has been classified as a weapon by the U.S. government. With the power to perform over one billion calculations per second, the Pentagon wants to ensure that the new Power Macintosh G4 does not fall into the wrong hands. As for Pentium PCs, well, they're harmless. So, our new Power Mac G4 also comes with the ultimate companion, and that is our brand new Apple Cinema Display. This is the back, and this is the front. It's the largest LCD display ever brought to market, and it's the best computer display of any kind in the world.

Its display area is equal to that of a 24-inch flat CRT, and yet it's twice as bright, twice as crisp, zero flicker. This thing is the ultimate companion to the Power Mac G4, and together they give us the hottest pro desktop lineup in the entire industry. So that's our pro desktops. Let's move on to our pro portables. This spring, we introduced our latest PowerBook. It's a very, very nice product. Much thinner, much lighter, and it is the fastest portable in the world. It has up to five hours of battery life, which is amazing, and it is the best way to watch DVD movies on an airplane in the whole world, on this giant 14-inch screen. And we've been selling these faster than we could even make them. We've made a lot of them, but we've been selling them even faster, and I'm pleased to say that we've pretty much just about caught up with demand, and so you should be able to find these in the stores now, and we're building a lot of them going forward, so hopefully we'll be out of that situation. This has been an extremely popular product, and we're very, very pleased with it. So, new PowerBooks are pro portable, fastest portable in the world.

We just recently introduced our consumer portable. You're familiar with it, the iBook. What's the spec on the iBook? It's simple. It's an iMac to go, and it's beautiful. It's really beautiful, and it's got this gorgeous 12-inch TFT display. We didn't scrimp on the display at all, because that's the most important thing about a computer. It's your window into the internet, your window into your software. We've got a beautiful display. This is the second fastest portable in the world, and it's second only to our own PowerBooks. It's got a 300 megahertz G3 processor in it. It's also fully featured with a 56K modem, 100 megabit ethernet, USB ports, and full-size keyboard, but this is what blows us away.

Over six hours of battery life on this product, so you can basically bring it with you all day without having to bring an extra battery or a charger, and we're selling these for $1,599, which is an astounding price for this set of features. We've gotten tons of orders for these things. We started shipping in mid-September, just like we announced we would. There's been some earthquakes in certain parts of the world that have slowed us down a little bit, but we're back on track now and shipping again. We plan on shipping a lot of these this quarter. We're very excited about this product. We've just started to run two ads on TV for the new iBook, and I'd like to show them to you now. Let's go ahead and run them. Is it possible to fall in love with a computer? Oh, yes. Oh, yes. It sure is.

You know, everybody's talking about how different I am. I guess they can notice the change. The way I walk. The way I talk. to turn my whole world around. So, our new iBook. Aren't those great? Our new iBook, our consumer portable, which brings us to our consumer and education desktop computer.

And of course, that's the iMac. The iMac has been so successful that we all forget that it's only 13 and a half months ago that on this very stage we introduced the first Bondi Blue iMac. Only a little over a year ago and this product has turned the whole industry upside down. It's incredible. We've shipped over 2 million iMacs in this time and we've generated over 2.2 billion dollars worth of revenue for Apple. It's been a landmark product not only for Apple but for the whole industry.

You know, one out of three iMac owners are first-time computer users all over the world. And in the U.S., nine out of ten iMac owners are on the Internet. It's amazing. It's got to be the highest ratio of its kind in the industry and certainly validates the i in iMac. Nine out of ten. It has become the number one choice for consumer computers and the number one choice for education computers. Unbelievable. So, how do we top this? How do we top this? Well, we're going to try right here today because today it's my pleasure to announce the new iMac.

The day after we shipped the original iMac we started working on this product. We loved the original iMac but we knew we could make it even better, take it even further. And I think we've done just that. You know, we have a lot of great products. They're all wonderful. And I've seen a lot of products in my life but I think I am more in love with this product than any product since the original Macintosh that we introduced right here 15 years ago. It's unbelievable. It's my pleasure to describe it and show it to you now. The new iMac has got a 350 MHz G3 processor in it. We've upped the system bus 50% from 66 MHz to 100 MHz and this thing really screams. It is by far the fastest consumer computer on the market.

We've upped the standard memory configuration to 64 MB. And we've upped the maximum memory. We've doubled it to 512 MB. And maybe just as important as any of that we've made the memory upgrades easy. And so on the bottom of the new iMac is a door and the door has a little turn thing on it. You can turn with a quarter. And you open it and you take your memory and you put it in and you close it. Now, you can also run one of those security cables right through that little latch.

And so when your iMac is locked down no one can get inside there to take your memory out. So memory upgrades all the way up to 512 MB, 64 MB standard, really easy. 6 GB hard disk inside. And, of course, USB. USB was something, Universal Serial Bus, that we pioneered on the original iMac and we've taken the leadership in USB. We're going even further this time by building in two independent USB ports each of which can run at 12 Mbps simultaneously. And as you know, USB is plug and play and it's hot-pluggable so you don't have to turn the power off, you never have to reboot. It's the perfect way to connect to peripherals.

And the USB devices are going through the roof. There's over 200 USB devices shipping. Our developer relations group has done an astounding job at working with developers on USB and it's just exploding and Apple is in the lead. In addition to that, we built in, of course, a V90-56K modem and the 100 Mbps Ethernet for hooking up the cable modems, DSL modems or any sort of terrestrial network. And easy access. There's a beautiful easy access connector plate right on the side. Very easy to plug these things in. Oh, now, I'll tell you about something new. This is a little slide I made up that denotes an amazing feature is about to come.

And what I mean by an amazing feature is one that you can't find anywhere else. It's just unique and wonderful and takes us to a next level and I get really excited about. So I want to share that with you. So you're about to see the first amazing feature of today. Rage 128 graphics. Built into every new iMac. We really care about games. And this is one of the hottest 3D engines on the market at any price. This is the same 3D acceleration core that we're building into our highest-end Power Mac G4 in every single new iMac. On AGP 2X with 8 megabytes of graphics memory. Games scream on this thing in very high quality. And so you can play games like the newest Quake 3.

You get exceptional frame rates. You get exceptional quality. Much better than any other consumer computer on the market. Rage 128 built into every single new iMac. This is huge for the gaming community. Another amazing feature. This amazing feature goes with the last one. Hi-Fi audio. As you know, the personal computer industry hasn't done a very good job on audio. The audio coming out of personal computers is pretty bad. We want to change all that with the new iMacs. We've worked with Harman Kardon in collaboration to design some new speakers which we have built into every new iMac. Of course, full stereo.

These speakers are incredible and give you incredible dynamic range. They sit inside these containers inside the iMac to provide the right resonant cavity to give you the right bass response. And they're also really beautiful on the front of the iMac. You can see where the port comes out, that little slot on the side of the speaker. They're tuned speakers, stereo. They sound phenomenal. Best sound you've ever heard out of a personal computer. Built into every new iMac. And here's something else that's incredible. Of course, we're USB-based, right? And you can put sound over USB. And so Harman Kardon is introducing an accessory that only works on Macintoshes. And it's this amazing new subwoofer.

Our design group designed it for them. And here it is right here. Look at this. Isn't this beautiful? Isn't this cool? This thing, when you plug it in to the USB port, the system automatically recognizes it and attenuates the bass frequencies going to the internal speakers and sends them instead to the subwoofer completely, instantly, automatically rebalancing your system for the subwoofer. It's incredible. Harman Kardon. This is going to be on the market in November and Harman Kardon is selling it for $99.

We'll have some outside when we break. You've got to listen to this setup. It's unbelievable hi-fi audio. The best ever coming out of a computer on every single new iMac. Another one. We're full of amazing features today. This one is also great. This is the original iMac. It's CD-ROM drives. Great. Very reliable. Worked well. But we wanted to make it better. We wanted to make it more consumer-friendly. We wanted to make it more reliable. And so every new iMac has a built-in slot-load CD-ROM. This is incredible.

No more fingerprints on the laser lens. No more pieces of toast in your drive. It's really cool. And the disc just comes right out. When you put it in, it just sucks it right in. Eject it, it comes right out. In. Out. It's so cool. And it's beautiful, too. So a new slot-load CD-ROM drive built into every new iMac. Another amazing feature. Built into every new iMac. The ability to accept airports. We're bringing airport down to the IMAP.

Now, airport. And this thing all of a sudden brings you alive with airport. So you can put an airport base station anywhere in your classroom or house or office, and it will talk to this, an airport card. And the airport card goes right inside your new IMAP with really easy access.

You remember that door on the bottom? The one with the memory in it? You just open it back up again, grab your airport card, it slips right down in there. Close the door, and you are now on airport. And you can have up to 10 computers. IMAX, iBooks, Power Books, or GeForce, all sharing one base station. And they can all be up to 150 feet away from that base station. That's half a football field away. And we're bringing this stuff to market, as you know, with very aggressive pricing. $299 for the base station, $99 for the airport card. This is far below what anyone else has announced or is talking about.

We're extremely pleased with this stuff, and it ships this month. So, airport. An amazing feature in the new IMAP. One last one. I've got to get a little drink before this one. Because this one is my favorite. Unlike the other amazing features built into every new IMAP, this is not a feature that every other computer doesn't have, but the new IMAP has. This is a feature that every other computer has, but the new IMAP doesn't have. And what is it?

No fan. The IMAP has been engineered to convection cool. This is familiar if you know the handle on the original IMAP. We've added ventilation around it and integrated that all together. The engineers have done a brilliant job lowering the power and designing it to totally convection cool. It's wonderful. Now, why have we gone to all this trouble? Because of noise. We've made the computers beautiful to look at. We want to make them beautifully sounding. Now, what does that mean? Well, when you're playing a game or listening to music, sounding great means you've got this great Harman Kardon audio system built in. And that's wonderful. We've done that. But what if you're not?

Then great sound means silence. You don't want to have to turn your computer off to get rid of the noise. When you're looking at sound, you measure sound in decibels. Decibel, Alexander Graham Bell. And in decibel measurement system, seven decibels equals about double the perceived loudness. So if something's seven decibels louder than something else, it's twice as loud as you hear it. Well, let's give you some reference. A typical office has an ambient noise level of about 30 decibels. Home, a few less. And most people see quiet at about 20 decibels. So where are we when the new iMacs are active? They are about seven decibels less than all of our competitors.

They're running 30 decibels, nothing more than the ambient noise level in a typical office. And half the noise. They are twice as quiet as HP's, Dell's, Compact's, Gateway's, you name it. Twice as quiet. But when the new iMacs... After you stop using them for about two minutes or so, they idle down the hard disk. And then they go down to 14 decibels. Okay? That's eight times as quiet as our competitors. That is below the hearing level of most people. You cannot hear it. And what it means is you never have to turn your computer off to get rid of the noise. These things are silent. I walked into a room of about a dozen of these new iMacs, and they were all on, and I couldn't even hear them.

It's unbelievable. So, silence. One of the last frontiers. iMac. One of the only computers since the original Mac in 1984 to not need or have a fan. Unbelievable. And so, these... These are some of the amazing features built into every new iMac. And we've basically clothed them in a new, refined design. Again, the day after we shipped the original iMac, our engineering team and design team went to work on designing something even a little smaller and far more beautiful.

And it's my pleasure to ask you to join me in saying hello to the new iMac. Here it is. Take a look at this thing. Come on over here. This thing is so beautiful. It's going to give us a once-around here. It's about an inch shorter than its predecessor. And you'll notice that you can see all the way through the top now. That that metal that went down the sides of the original iMac, covering all the electronics inside, isn't there anymore because the electronics aren't there anymore.

We've compressed them all down to lie horizontally right here. So take a look. You can see my hand all the way through there. Isn't that beautiful? Here's the new integrated VIN. Here's the new integrated vent and handle. Here's our new easy access connector ports right there. Here's our new sound system right here. And you can see the speaker enclosures right here, right there. Here's our new slot load drive. Isn't it beautiful? It's really wonderful. Matter of fact, let me go ahead and show you the drive right now. I've got a CD-ROM here. I'll put it in. Check this out. Isn't that cool?

And that's what it's like when it comes out. So it just goes in. I think it's really cool. And there it is. So there's nothing like this on the market. It is far more beautiful than anything I think that we've ever made before. And I'm just thrilled with it. I'm really, really thrilled with it. The new iMac. So here's a shot of the side. A shot of that speaker bubble right there. A shot of the front. And what I'd like to do now is just to show you that Rage 128 chip.

I'd like to get Phil back here. He's got somebody set up backstage with another iMac, another new iMac. Both have AirPort in it, and he's going to show us playing a game. What it's like to play a game. Thanks, Steve. This is so cool. To be the first one to play a game on a new iMac. And you all get to be there with us. So this is a brand new iMac running right up here. And I'm going to open up one of the best games on the web, Quake 3 Arena. It is a test version that's been out there for people to use on the web. I'm going to open it up on a brand new iMac. Launch Quake 3. And here we are in the game. Great sound system. Subwoofer sounds just like that. And we have now, backstage, David on my team has got another iMac set up.

And we're using AirPort to wirelessly play together. Could be two kids in neighboring houses. We're going to launch the game. He's running this as a server on his machine, and I'm going to hook up with him. Wirelessly over AirPort. It's downloading the maps and information. Downloading the maps and information. Here we are, David versus Phil. Now, the graphics are just incredibly stunning. Now, before I play with David, I've got to go make sure I have a few good things. Protection. A few things.

Look at this playback. Let's go try to find David. Give you a quick look of him. Just amazing performance. Now, I have set this on with all of the graphic features turned on. If any of you play Quake, you know I turn on vertex lighting, 32-bit graphics. And David works for me, so he knows he won't shoot. Just incredible graphics. So this is a kill-free demo. The graphics are amazing. Playing Airport on a Rage 128 wirelessly.

No one else in the world can offer that. The new iMac.

We now have the best consumer desktop on the planet. I really want to thank you for coming here and seeing it with us today. We're really, really proud of it. Everybody's worked really hard on it. So thank you. Wait a minute, fellas. Wait a minute. I forgot. There is one more thing. I forgot to tell you about it. This is really important. In addition to the iMac, we have a second model called the iMac DV. What does DV stand for? Digital Video.

The iMac Digital Video. What is this? Well, the iMac DV is everything in iMac and a lot more. Let me tell you the more. 400 MHz processor. Even faster. 10 GB drive. Even bigger. RGB video out. Built-in to everyone. This is a key feature for our education customers. So, sort of on the bottom, headed for the back, there's a little ventilation grill on the bottom. Looks like this. You can pop it out very easily and expose the connector. And we even ship another nice little grill you can pop in. And then you can just hook right on to it. So everybody who needs RGB out, built-in to every single unit.

You're welcome. And now, I'd like to tell you about an amazing feature built-in to every new iMac DV model. And that, of course, is FireWire. FireWire is an Apple-created technology that's become an industry standard. FireWire runs at 400 Mbps over this beautiful plug-and-play, hot-pluggable, nice little serial interface. And we built two of them in, so you can be running both of them simultaneously at 400 Mbps. FireWire is an industry standard. It's been adopted by every single consumer electronics company and all of the forward-looking computer companies. And what we've done is taken that easy-access connector plate on the side of the new iMac, and we've taken this area right here, and we've put the two FireWire jacks right...

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... ... ... ... ... ... ... As I said, this is one of my favorite movies. And as you can see, the quality is just stunning.

I want you to watch the whole movie, but I also have the ability to move around on scenes and things like that, like I always do with DVDs. Everything's all built right in. So, the ability to play movies right on my iMac DVD. Built into every single iMac DVD. We think this is going to be huge. But there's one more thing that I want you to see. We think this is going to be huge. But there's one more thing that we think is going to be even bigger.

Matter of fact, I think this is going to be the next big thing. I think it's going to be just huge. And that is that all the iMac DV models, with all those amazing features from the iMac, all the amazing features you've seen in iMac DV, the ability to play movies, all the iMac DVs also have the ability to make movies. Let me take you through this. We have written some software called iMovie, which is a breakthrough piece of software that lets you make movies right on the desktop with your new iMac DV.

And, of course, it rides on the foundation, that digital media platform called QuickTime that Apple created. And it also makes use of FireWire. Now, FireWire connects to a lot of devices, as we saw. But one of the most important ones is camcorders. Every digital camcorder has a FireWire port on it. It's been universally adopted for digital camcorders. And so you can plug your iMac DV right into your digital camcorder, and you can transfer video from your digital camcorder right into your iMac DV with pristine digital quality, without any accessories, nothing else to buy.

And once you get it into iMac DV, you can be the director and the producer. You can rearrange clips. You can put titles in and scrolling credits. You can put beautiful transitions and special effects in. You can drop soundtracks and sound effects in and make movies right on your desktop in very high DV quality. And when you're done, you can store your movie on your local hard disk or some local removable storage. Or you can send it out back through the FireWire port back to your camcorder and store it on digital video. Or you can go through your camcorder into a VCR and make a VHS tape to send to anybody you like.

Or you can compress the file and make a QuickTime movie out of it and email it to somebody or put it on your personal website. It's unbelievable. So, iMovie. We think this is going to be the next big thing. Desktop video. So, again, iMac DV. A remarkable breakthrough. FireWire that enables us to connect to camcorders. QuickTime, the foundation, and this amazing new application we've written called iMovie. All five of these things are coming together.

Four of them Apple created to make something new called desktop video. Which we think is going to be as big as desktop publishing was. And I'd like to show it to you now. So, I am going to make a movie. Might not be as good as the last one we were watching, but... Okay, so I'm going to launch iMovie now. And I've got some clips stored in iMovie already. But I've got a few extra clips on my camcorder right here, which I'm going to turn on. And I'm going to plug it in. So, I'm just going to take my FireWire port and plug it into my iMac right here.

My iMac DV. So, I've got a few clips loaded in here already. So, it says camera connected, but I'm going to go back and look at my clips. And I've got some clips, and they're down here. So, I'm going to just look at them right now. Let's take a look at them. I've got one clip there. I've got another one here. And, of course, I can scroll in those clips anywhere I want to. I can go backwards and forwards and do whatever I want. Here's another one here, my third one. So, as you might have guessed, my movie is going to be about a dog bath. Right? Now, I've got another clip up here, which is where they're automatically put when I import them from the camcorder.

And let me look at this one here. Now, I can just drag this clip down into my movie, just by dragging it down here and letting it go. It's just like a drag-and-drop video. Now, the other amazing thing is I can rearrange these clips, again, just by dragging them and dropping them. So, I can put this one right there. They fill the water after they bring the tub over. And I want to start my movie with the dog. And I think I'll end it with this spraying right here. So, I've just rearranged the clips. And now, if I go back and take a look at my movie, I can watch it from beginning to end. Isn't that cool?

Now, one of the things I should mention is this movie is preserved in full digital video quality inside the computer. We can't see that on the screen in real time. But we have full DV quality, so that when I put this back out to videotape or make any other kind of file with it, I get full digital video quality, which is even better than what you're seeing. Now, I'm going to go import some things from the camcorder. I've got two more clips. So, I just flip this button. It flips me back to the camcorder. And I'm controlling the camcorder right from iMovie, because Firewire can control the whole deck. I don't have to go flip the buttons over there. So, I'm just going to go play, and I'm going to hit the import button. And what iMovie does is, because it's all digital video, it looks for the start of the first clip, and it starts loading it right in.

And then, when I stop and start the camera, it knows I've got a different shot, so it'll make a second clip and put it right up there automatically for me. So, I've got these two clips. Now, again, let me take a look at this one. Now, let's pretend that she's my daughter, and I really want to focus this movie on her. So, what I'm going to do is, as you know, when I start this clip, it's got this boy, let's say he's from down the street, and then it cuts over to my daughter right here. So, I'm going to go to that point where it cuts over, and I'm just going to go backwards, and I'm going to delete the boy. Don't tell his parents.

And so, this clip is just now about my daughter, and I'm going to drag it down in here, and I'm going to put it right there. And then, I'm going to look at this clip here, and I'm going to say, well, dog's getting out here. Dog! So, what I'm going to do is, I'm going to go back to where the dog left the frame, and I'm just going to kind of stop this clip right about there, and I'll just delete the rest. And so, now my clip just ends when he walks out of the frame, and I'm going to bring this down right there. And now, I've got my movie in here, and what I'm going to do now is I'm going to put some titles on my movie.

One says titles, and I bring up titles, and I can say I want a centered large title. And I've already typed in my title, which is Ruffy's Bath. I can get a preview of it if I want to, right? And so I'm just going to drag that title down on top of the clip that I want to put it on. And now iMovie is going to go calculate that in very high quality. So it's going to put that title on. And I've already made some rolling credits here, and I've put them over here. So I'm going to drag down my rolling credits for the end. And now what I'm going to do is I'm going to talk about putting in some special effects or transitions in between the clips so that they're not just a cut between one and the next one. So I'm going to go to transitions, and I have all sorts of cool transitions. I have fade-outs, fade-ins, cross-dissolves, all sorts of things. And I like a cross-dissolve.

So I'm going to drag down a cross-dissolve right in to right here between these two clips. Again, it makes room for me, drops the cross-dissolve in, and it will then just calculate this at very high quality. And I'm going to maybe look down. I've got one more that I like, which is just a push right. And iMovie comes with a bunch of them. And I'm going to drag a push right down right before the rolling credits so that the last clip just pushes... rolling credits just push that last clip right out of the way. So I'm going to pull this down right to there. Now, while these are calculating for a second, let me go through again what we've done. We've taken...we've had fun with our digital camcorder, had some really fun time making some...and taking some great footage. We just simply plug FireWire into our digital camcorder right into our iMac DV and launch iMovie.

We then load the clips in. It automatically figures out where they are, automatically separates them and puts them all in these little wells. I can then look at them, go backwards, forwards. I can trim them exactly where I want to. I can drag them down into my movie timeline. I can rearrange them anywhere, any way I want, any number of times I want. I can put titles on them. I can put scrolling credits on them. And I can put special effects in between them. And so we're just about done calculating. We're done calculating. So let me go ahead and play this full screen for you right from the beginning. So there's our title. Now watch this cross dissolve.

It's about to happen at the end of this clip right here. Isn't that nice? See those credits just, again, push that out of the way. I've got a still image and I've got my scrolling credits. Now, iMovie lets me go even further than this. It lets me add a soundtrack. So I can put in a CD and just take a song right off it. I can get an MP3 file. I've already got one here that I like. And so I'm going to just open a file right here which has got some music on it. And it's called Dog Bath Music.

And I'm going to load that right in. And it loads that right in to where the soundtrack goes. And I'm going to drag it over here. And I want the end to line up with the end of my movie. So I'm just going to drag it right over there to where the music goes just for a few seconds longer. And I'm going to have it start just right. And then what I'm going to do is I can add sound effects to this too. And so I can have like a whole bunch of different sound effects. But the one I'm going to pick is dog barking. And so I'm going to add this right over here. I'm going to add it right about there.

So now I've got my movie and let's take a look at it now. Dog barking. Dog barking. Dog barking. Dog barking.

Now... So... I wanted to do one last thing before I send my movie off to the kids' grandparents. I'm just going to actually do a little live recording here if that's okay. I've got another camcorder over here. And I'm just going to turn it on the camera right here. If I can get the lights on over here. There we go. And so I can record here.

Hi, Mom and Dad. I'm sorry we didn't get a chance to visit you this summer. I've been working kind of hard getting ready for a new computer. But I wanted you to see how much the kids have grown. So we made you this video. We miss you. We love you very much. We'll see you soon. Okay. Take the power out of it here. Take it off the tripod. We take it over here. Take the firewire port out of this camera. And we put the firewire port, if Steve can find it, right in this camera. Right like that. Okay. Now we're going to play the movie. We go back to our camera.

We rewind the camera. We play and import. Hi, Mom and Dad. I'm sorry we didn't get a chance to visit you this summer. I've been working kind of hard getting ready for a new computer. We made you this video. We miss you. We love you very much. See you soon. Okay. So now I'm going to go back to my movie. And I'm going to drag that clip in right at the beginning here. And now we'll just play the movie. Hi, Mom and Dad. I'm sorry we didn't get a chance to visit you this summer. I've been working kind of hard getting ready for a new computer. But I wanted you to see how much the kids have grown.

So we made you this video. We miss you. We love you very much. See you soon. So you get the idea. Bye, movie. We think desktop video is going to be the next big thing. Imagine this in classrooms. Imagine classroom video reports. Imagine this with parents.

Imagine the Steven Spielbergs of the world being able to use this technology when they're kids. It's going to be unbelievable. And again, it's the convergence of five technologies. iMac, DV, FireWire, QuickTime, the amazing iMovie software, and digital camcorders. And four of these five are from Apple. So we think desktop video is going to be really big. The ability to make movies. So let's review iMac DV. It's everything in iMac. All those amazing features we talked about. Slot load drives. No fans. Airports. Incredible new audio system. All those things running at 400 megahertz with a 10 gigabyte drive.

DVD-ROM. FireWire. Amazing new colors. Desktop video, which lets us play movies on the screen of our new iMac DVs and make movies as well. iMac DV. And we want to make this really awesome in terms of its price. And our engineers have worked overtime on this. With all of this stuff in it, we're pricing the iMac DV models at $1,299. So we are incredibly thrilled with the new iMac DV.

And we are so far ahead of anybody now in the consumer desktop space. It's not funny. So thank you very much for coming today. We've had a lot to show you. Thanks for sitting through a long presentation. Oh, but wait a minute. Wait a minute. I do have one last thing. I forgot to tell you about. We just told you about iMacDV. One last thing. iMacDV Special Edition. The iMacDV Special Edition is everything in iMacDV and more.

The more is 128 MB of memory standard, a 13 GB drive standard, and an amazing new special color. I'd like to show you that now. Can we please show you the iMacDV Special Edition? It's the most beautiful iMac ever. A brand new color for iMac. Graphite. Come on over here.

And you can really see how you can see through these new iMacs now. Because it's this graphite-colored clear all the way through. It is stunningly beautiful. There it is. The new iMacDV in graphite. Very beautiful. Thank you. The new iMacDV Special Edition comes only in graphite. Price of $1,499. So, the coolest looking consumer desktop computer in the world.

These are the new iMacs. Not one, but three new models of iMac. iMac, iMacDV, and iMacDV Special Edition. As you can see, we've been burning the midnight oil. And three incredible price points. $999, $1,299, and $1,499 for the Special Edition. And they are all available starting today. We have already left our factories and they're on the way to the channel. They should be there by this weekend. We're shipping tens of thousands this week.

And tens of thousands every week for the foreseeable future. You can go to the Apple Store today and order one as well. This is what it looks like when you get into it. All three models up there. We have a new number for the Apple Store, too, if you want to call us. We just got 1-800-MY-APPLE. So that takes you right to the Apple Store if you want to call. And go to the Apple homepage, apple.com, and learn everything there is to know about the new iMacs. Now, to tell the world, in addition to that, we've made three new television commercials. And they start running tonight.

So I would like to show them to you now. Let's go ahead and roll the TV commercials. Now departing for exotic ports of call. The faster, sleeker, quieter, redesigned, and even easier to use iMac. Presenting our newest internet cruise line. Bon Voyage. This holiday season, the most original, most emotional films may not be in theaters.

They'll be on your desk. Introducing the easiest way to create and compose and edit and polish your own home movies. The all-new iMac. Now with desktop video. Aerodynamic design. Breathtaking acceleration. Air-cooled, turbocharged engine. Standard built-in DVD player. And of course, the tinted windows. Introducing the iMac Special Edition.

Heated leather seats sold separately. We have the privilege of working with amazing people at Apple and amazing partners outside of Apple. And the folks from Shyeth Day, our ad agency, are here today. I'd just like them to stand up for all this amazing work and take a round of applause. Meet Ken and Lee. There they are, right there. So you can see those starting on network TV tonight and all through the quarter.

So, we now have the most amazing lineup of products in Apple's history. It's been a lot of work. As an example, the new PowerBook we introduced this May. The new iBook we introduced in July. The new PowerMac G4 we introduced in late August. And today, in early October, we're introducing the new iMac. If you count this up, that's turning the entire product line over in five months. That is 148 days for those of us that have been counting. It is unprecedented for this much product to come from Apple in this period of time.

And I think the teams that have been working on this stuff have done a phenomenal job. And I also would like to give a round of applause to everybody at Apple who's been working on these four products. Thank you. And one last group I'd like to give a round of applause for. We work very hard. We're very lucky to be at this place in this time to be able to create these products. But we couldn't do it without the support of our families. And they have put up with a lot from us this year. And I would like to thank my family, and I speak for everybody at Apple.

We would like to thank our families for letting us do this miraculous, wonderful, marvelous thing that we do at Apple and make these great products. Without their support, we couldn't do it. So thank you. Applause. So again, we've got the strongest product lineup in Apple's history. We've got the strongest pro products in the entire industry. And now we have the strongest consumer products in the entire industry. And I think we have a great, great next year to look forward to.

So thank you very much for coming today. Really appreciate it. And to all of you at Apple, congratulations on this incredible suite of products. Thanks. Applause. Music.