Steve Jobs on iPod and iTunes: Let’s Rock

["What a Wonderful World"] ["What a Wonderful World"] ["What a Wonderful World"] Good morning. ["What a Wonderful World"] Thank you.

Thank you for coming this morning. We've got some really exciting stuff to share with you. Before we do, I just wanted to mention this. Enough said. So let's get on with the real topic of this morning, which is music. We're going to talk about music today, and we've got some really fun new offerings. Let's start with iTunes. iTunes, of course, is the ubiquitous music and video player married with the largest online content store in the world.

And iTunes now offers over 8.5 million songs. It's amazing. We started off with 200,000. We now have over 8.5 million songs. Over 125,000 podcasts. Over 30,000 episodes of TV shows. 2,600 Hollywood movies. And as of very recently, we now offer over 3,000 applications for iPhone and iPod Touch. Over 10,000 apps. And over the years, we've built up a great customer base.

We're very pleased to announce that we've got over 65 million accounts in iTunes now. It's fantastic. 65 million customers, credit cards, one-click shopping. So this has enabled us to slowly climb up in the U.S. to become the number one music distributor in any format in the U.S. applause So we're adding some new content to iTunes today. The first thing we're adding is HD TV shows.

applause Now, you can buy TV shows for $1.99 in standard def on iTunes today. The high def shows will be just $1 more at $2.99. And you can watch them on your computer. This is a first. So you can watch them on Apple TV, and you can watch them on your computer. The second thing we're adding is that NBC is coming back to iTunes. applause They're bringing all their great shows with them. So The Office is coming back, Monk, Battlestar Galactica, 30 Rock, Heroes, all these great shows and more.

And these shows are coming back not just in standard def, but they're coming back in high def as well. So again, you can watch all these shows in standard def or you can watch them in high def right on your computer. Maybe the biggest thing, though, with iTunes today is we're introducing iTunes 8, the next major release of iTunes. It's got a ton of new stuff in it, but I want to cover the few main pieces. The biggest ones are, of course, HD TV shows, which we just discussed. Accessibility. We've had a lot of requests for this. We've built in VoiceOver and all of our other accessibility technologies into iTunes, so it's accessible now to even more people.

We've got some new browsing in iTunes, which we think you'll like, and we've got something called Genius. So let's take a look at the last two. Browsing. The way to browse albums up till today has been this. This is the best we've offered. You could look at things by albums, but it's not so space efficient, especially if you only have a few tracks per album. So what we're adding in iTunes 8 is the ability to just look at your albums by album cover, and we've added this little bar at the top, Albums, Artists, Genres, and Composers, and you can look at anything graphically by album art in these four categories. So you can go from albums to artists and see little tiles of all of your artists, and you can skim these, just like an iPhoto, and see all the albums that you have of that particular artist.

This also scales to, of course, movies, TV shows, showing you the episodes you might not have watched in a particular series, podcasts, the same thing, but of course it'll get used most for music. So that's some new browsing, which is really, really nice. And we're introducing a new feature called Genius. Genius is pretty cool. What Genius does, it allows you to automatically make playlists from songs in your music library that go great together with just one click. So if you could take your library and pull together playlists of songs that just really work together, it helps you rediscover music in your own music library and make great playlists that you probably wouldn't think of making any other way, and it really works well with just one click.

So that's what Genius is, and here's what it looks like. Let's say you're listening to a song, in my case a Bob Dylan song. Don't think twice, it's all right. There's a button down here in the corner, the Genius button. You push that, and voila, you've made a Genius playlist. You can refresh it as much as you want and make different playlists, 25 songs, 50 songs, 75 songs, or 100 songs each, and they're amazingly, amazingly good. In addition to that, you can bring up the Genius sidebar, which makes recommendations from the iTunes store of stuff you might want to buy to complete this collection of songs like this. Albums, songs, and songs by other artists that are going to go great with these songs.

So how does this all work? Well, we've got the iTunes store up in the cloud, and we've added Genius algorithms to that. We've developed them. We think they're pretty good. And so you've got your music library, and if you turn on Genius, it's an opt-in, voluntary thing, you turn it on, it's going to send up some information to iTunes. It's going to send information about your music library, things like track names, play counts, ratings, and playlists, so that we can learn about your musical tastes. And this information is sent completely anonymously. At no time do we keep your IDs around. Completely anonymously.

But it's not just information from you, right? Because we are going to combine your information with the knowledge of millions of other iTunes users as well. And so you're going to send your information up, and so are they. And as that happens, Genius just gets smarter and smarter and smarter. And so everybody benefits by that. And when we send back down results, we send back down Genius results to you, and they are tailored to your music library. And as long as you leave Genius turned on, they're automatically updated once a week to take advantage of ever new knowledge that it's gaining as other people share information about their libraries with the Genius algorithms as well.

So automatically make playlists from songs in your library that go great together with just one click. That's what Genius is about. And I'd love to show you this stuff now. So, let me launch iTunes 8 here. And you can see I've got albums up here. I can click to artists, and I can scroll through artists' albums I might have if I have multiple albums per artist. So I can, let me go to Aretha Franklin here and open this up and just, you know, play songs. It's that simple.

And this works great as well for... you know, genres here. I can see my music by genre. All the albums I have, jazz albums, blues albums, pop albums, and I can even see them by composer if I want to, which is really nice. It also works great for my movies, my TV shows, right? Let me show you an HD TV show, by the way. They're really nice. Yeah, here's a nice one from The Office I was playing earlier. Hello, this is Dwight Fruch. Hello? Hello, this is Dwight. Hello? Hello? Yes, we do have that. Hold on one second. Jim, what are you doing? And how many would you like? Hang that up right now. Absolutely, I can get that out to you immediately. This man is an imposter. Do not do business with him. This is not Dwight Fruch.

Dwight left his cell phone on his desk. So, naturally, I paired it to my headset. Okay, fine. I'll just let it go to voicemail. You get the idea. So, here we are watching HD TV shows right on our iMac here. It's very nice. So, I'm going to go back to music here, and I'm going to go search for John Mayer, and I'm going to pick Continuum, and I'm going to pick Gravity here, let's say. And all I do is I go down and I push this Genius button right here, and boom, I've made a Genius playlist. Again, it could have been 25 songs, could have been up to 100 songs if I want. I could refresh it, get different songs. But here's songs that go with that song. All right, let me go back, and I'll go back to music, and I'm going to go find another one here just to show you. All right, All Albums Elvis, and I'm going to pick Heartbreak Hotel here.

Let me make a Genius playlist out of that. And again, it's pulled together songs that go together with that song. I'm going to go back to Heartbreak Hotel here, and I'm just going to bring out the Genius sidebar. And again, it shows me some Elvis albums that I don't own, some top Elvis songs that I'm missing, and some songs by other artists that I So, we think you're really going to like the Genius playlist feature. It's really nice. So that's iTunes 8, and it's available today as a free download at Apple.com. So go get it and try it out and let us know what you think. So, that's iTunes. Now, let's go talk about the iPod some.

The latest data we have is for July. NPD data shows iPod with a 73.4% market share in the U.S. We're obviously thrilled with that. Number two is actually other. It's these hundreds of no-name brands that aggregated all together is number two in the market. Number three is SanDisk with a little over 8%. And number four is Microsoft with 2.6%. So, this is what the market looks like today. And as you know, there are over 5,000 accessories for iPod. It's an incredibly thriving ecosystem. They announce products even before we want them to. So, it's funny. And 90% of all cars in the U.S. now offer iPod integration.

So, we're really thrilled with that. And the cumulative iPod sales since we started are now over 160 million. So, with that, I'd like to now tell you about some updates and some new products we've got for this holiday season. Let's start off with the iPod Classic. Now, the iPod Classic is the iPod that started it all. And we've offered it in two models, a thin and a thick. But almost everybody has wanted the thin one. And so, we're going to discontinue the thick and just focus on the thin one. It's held 80 gigabytes for $249. As of today, we're upgrading the 80 gigabytes to 120 gigabytes at the same $249.

So, iPod Classic for this holiday season. We started off with 1,000 songs in your pocket and you can now put 30,000 songs in your pocket. So, it's pretty amazing. So, that's the iPod Classic for this holiday season. Now, let's move on to the Nano. You know, we shipped the first Nano three years ago in 2005. It's only been three years. This was our first generation. Then, we had our second generation Nano. This was really a beloved product. The metal and the incredible colors. And then, we had our third generation product in 2007, putting a much higher resolution display on for video and other things where you really want just a beautiful, gorgeous display. But we have a new iPod Nano for this holiday season. Let me show it to you now. This is it right here. It's really, really beautiful.

It combines the best of both worlds. The portrait aspect ratio that people loved and the same, exactly the same super high res display in portrait mode. And yet, it is the thinnest iPod we've ever made. It is really beautiful. You can see it's an oval shape and it fits in beautifully as you can see with the line. The first and second generation portrait, but exactly the same high res screen. I happen to have one in my pocket. Let's go ahead and turn the camera on. This is what it looks like here. And let's zoom in on it. Let me just turn it sideways here. You can really see it like this. You can see it like that, what it really looks like. Isn't that cool?

Very beautiful. So I think when you actually see one of these things, you're going to just be blown away with how beautiful it is and how thin it is. Okay. So, what are some of the features of this new iPod Nano? Well, a new curved aluminum design. It's got curved glass over the display. The glass actually curves. It's very nice, very durable. It's the thinnest iPod we've ever built. It's got an enhanced user interface with some really nice features. We've taken the accelerometer from the iPhone and the iPod Touch and we've brought it to the iPod Nano and it does some wonderful things. And you can actually create genius playlists right on the Nano itself, even when it's not connected to iTunes.

So, let's take a look at some of these user interface enhancements. With this high res display, you can have beautiful nice long menus. This is what it's like to look at songs now. We're displaying the albums they come from. And with the accelerometer, you just turn your iPod Nano sideways. You're in cover flow. It's really nice. And then pick a song and go back there. You get full size album art. Now playing screens. Again, with photos, just turn the Nano to see a photo in landscape mode. Video is fantastic on this high res display. And another cool thing is you push the play button.

and hold down the center button, you get a pop-up menu, and you can start a Genius Playlist right on the iPod Nano. You can add songs to Album on the Go. You can browse the album. You can browse the artist, all just by holding that center button down. And this is, when you start a Genius Playlist, you can see it right on the iPod Nano. You can refresh it, and you can save it for later. It's very, very nice. We have extras that we normally ship, calendar, stopwatch. There's even a voice recording program on, so when it detects a microphone, you can record voice notes to yourself. It's very, very nice, and if you'd like, I'd love to show it to you. Applause So let me just play around with it a little bit.

Let's go into Music, and let's go into Artists here, and we'll pick, let's see, oops, pick Beck, and, oh, let's see, pick a song I like. And so, while my music's playing, I can just rotate this sideways, and I'm in Cover Flow. Back, I got the album. So I go over here, and I'm going to go find Bob Dylan, freewheeling Bob Dylan here, and I think I'll pick, I don't think Twice It's Alright.

Here we go. And now, there I am, listening to that. And I can push down the center button, and I can even start a Genius playlist based on those songs right there. It's created it for me right on my iPod. There's a Donovan song. Go to the next one. And so it's taken the songs that I have on my iPod, and it's made a Genius playlist right on the go, not connected to iTunes or anything else.

Now, one other really cool thing about the accelerometer is we have a new feature called Shake to Shuffle. So you just take your iPod, shake it, and I just turned on Shuffle. I didn't really want to tell you I had Dean Martin on my iPod. If you don't like that song, just shake it, and you'll get another one. Isn't that cool? So Shake to Shuffle. Okay. So let's go back, and we'll go to just photos.

I just want to show you that too. And let's see. Here's some photos. And again, we can just thumb through the photos. They're beautiful high-res display. And of course, it won't take too long before we get to one in landscape. And again, we just tilt the unit, go to landscape, take a look at some photos there, and back to portrait here. And it just works really, really well. So that's what I wanted to show you on the iPod Nano. So we've got some great, great new features. And we've also got some great battery life.

24 hours for music and 4 hours for video from the thinnest iPod we've ever made. I think that's a real accomplishment. Now, another accomplishment is we want to be just really environmentally sensitive with these products. We ship a lot of them. We're constantly worried about reducing the size of the packaging and the transportation carbon that we spend to move these around the world. But the biggest thing we worry about are the toxics. And we have an environmental checklist we use internally on everything. And I have to say the new iPods are looking great from this point of view.

They're arsenic-free glass. They're BFR-free. They're completely mercury-free. And they're PVC-free. And they're highly recyclable materials, the aluminum and the glass, highly recyclable. So we're really trying our best. There's more we're going to do in the future. But so far, we think these new Nanos are the cleanest, toxic-free iPods we've ever built. Now, there's one thing I haven't really talked about with the new Nanos, which we call Nanochromatic. They come in some amazing colors, the best colors we've ever done. Johnny and his team came up with just some fantastic colors.

And here's what they are. Normally, they come up with some colors like this, and we pick a few of them. We decided to do all of them. And so we're doing all of these colors in all the models. We have two models. The first one is going to have an entry price of $149 with 8 gigabytes of memory. That's our highest memory we've ever had. And we're going to have a second model with 16 gig at $199.

Both of these are shipping out of our factories. The 8 gigs should be in stock in the next few days. The 16 gigs, hopefully this weekend, early next week at the latest. So we're really, really happy about this. And we've also got some great accessories that we're announcing today. Of course, we have the requisite armband, which is nice. But we've got some headphones as well. We've got a pair of headphones we're going to be introducing. Now, you can say, well, why do you need headphones? Headphones come with the Nano. Well, these headphones have something on the cable that we've borrowed from phones. And it's this little thing that sits on the cable that allows you to pause and play your music.

And if you double-click it twice, it goes to the next song. And if you triple-click it, it goes back to the previous song. And we've added volume controls, volume up and volume down. So you can set the volume. You can go next and previous. And you can go play and pause all right from the headphone cable. And on the back side, we have a microphone, which works beautifully with that voice recording app inside the Nano we saw a few minutes ago. And so right from your headphone cable, you can control your whole Nano. It's really nice. And these headphones will ship for $29 next month. We've also got some new in-ear headphones.

And these, we think we finally got these right. They ship with three sets of earbuds. So you can pick exactly the ones that fit your ears. And they've got two drivers each in them, a woofer and a tweeter in each side, which is something you normally don't find until you get pretty expensive headphones. And these headphones are going to sell for $79, and they're going to be available in October. The incredible new iPod Nanos. Now, we've made a new ad, and if you'd like to see it, I'd be glad to run it. Let's go.

You like it? I think that's going to be a lot of fun. So, the new iPod Nanos, catch them this week. They're really, really nice. So let's move on to the iPod Touch. The iPod Touch is an incredible product. We've brought our multi-touch technology and our multi-touch user interface to an iPod. And this is unlike anything in the marketplace. Well, for this holiday season, we're making it even better. better. And so this is the new iPod Touch. It's got the same gorgeous three and a half inch display, but it's even thinner. It is this beautiful contoured stainless steel design.

And if you didn't think the last one could get thinner, you've got to get your hands on one of these things. They're just fantastic. And it's the bottom right there, 30-pin connector. And so what's different about this? Well, some things are the same, stunning three and a half inch display. Here's something that's different. This was the number one request we've gotten. We've integrated volume controls into the side. We think that's going to make a lot of people a little happier. Of course, the accelerometer, wireless networking, 802.11 B and G are still there. We've built in a speaker, which is really hard with something this thin. It's for casual listening, okay? This is not for audiophiles, but it's really nice to have it. Genius playlist creation right on the iPod Touch and, of course, the App Store built in. So let's take a look at some of these things. We've enhanced the user interface a little bit. It's a little nicer to scroll through lists of songs, better artwork on albums and videos. Of course, it's still great to watch video on the iPod Touch. A little better for audio books. So the user interface is even nicer than it has been.

We've also built in Nike Plus iPod into the iPod Touch. So the software is all built in. It's very nice. And as you know, you need to plug in a receiver into the iPods to date to make it work with the transmitter puck that you put in your shoe. Not with the iPod Touch. The receiver's actually built into the product itself. So all you have to do is get the transmitter for your shoe and you're all set to go with Nike Plus iPod on the iPod Touch. For genius, again, to be able to make these playlists from songs in the library right on the Touch that go great together, we've built that right into the iPod Touch. And so let's take a look. If I'm listening to Don't Think Twice, It's Alright, I just tap to get the scrubber and, you know, the panel that lets me set, repeat, and shuffle.

And right, we've added right on there, as you can see, a genius symbol. You just tap that with your finger and you've made a genius playlist. You can refresh it. You can save it. As, if you save it, this is what it looks like. It just lists the title of the seed song with a genius logo next to it. And you've got your genius playlist for as long as you want it. So genius playlist creation right on the iPod Touch. And, of course, the App Store. This has been one of the most incredible phenomenons we've ever seen at Apple. I am pleased to announce today that users have downloaded over 100 million apps from the App Store. Now, this is mind-blowing, but it's even more mind-blowing when you realize that today is only the 60th day it's been open. The App Store opened 60 days ago today and 100 million apps have been downloaded. That's pretty amazing. And it's right on the iPod Touch. All these incredible apps and, most importantly, games. Right, there are about 700 games on the App Store today, a lot of them for free. And some of them are getting pretty fantastic. I'm sure you've played some of these and know them well. There's

definitely something here for everybody. And you can load them all up if you want on your iPod Touch. And the App Store is available in 62 countries now. And so that's pretty amazing on every iPod Touch. So let me show you some of this stuff. So I've got my iPod Touch here. Let's turn it on. And I'm going to go into music and I'm going to pick Green Day. Why not? And American Idiot. And I just tap it to bring up the on-screen controls and I'm going to hit the genius button. You see it right there? And I've just made a genius playlist here, right? It's very cool. And I can go ahead and I can refresh my playlist if I want and get another list of 25 songs. It's pretty nice. There we go. And so I can

just make genius playlists right on my iPod Touch. So let me go to movies now and just remind you how great it is to see movies on an iPod Touch. I've got Iron Man here. And again, I can watch it in its full aspect ratio or double-tap to fill the screen. You get the idea. And I can go to the App Store and download games and play all sorts of incredible games on my iPod Touch. We've got a treat today. I'm going to invite Phil Schiller up on stage. Phil's our Senior Vice President of Product Marketing. And Phil's going to give us a demo of some games that are not yet out on the market, one that just got out on the market. And so go ahead and show us what you got.

Good morning, everyone. This couldn't be more fun. Think about it. Hundreds and hundreds of games to play and I get to pick a few to show you, hopefully some that you haven't seen before. So let's get started. I'm going to flip over. I'm going to start with a game that started shipping just a day ago. You've probably heard about it. It's from EA, a title called Spore. Well, they've brought out a version specifically for the iPod Touch called Spore Origins. Now, if you know anything about Spore, you know it's a pretty ambitious game. You start out as a single-celled organism. Then over a millennium, evolve your character all the way up to a space-faring race. Well, in Origins, it's at the beginning of the game. You're right in the early primordial ooze phase. So I'm going to jump past this opening video and go right into the Creature Creator. The animations and graphics and interactivity is just incredible. So here I am. This is a Petri dish. And you may not recognize me, but that's me. I can pinch and zoom and change my character to any shape I want. I can play with its color. Select some different colors. I can play with its graphics and change the textures and designs to it. Maybe I want stripes and move those around. Now, this is something you're going to be doing quite a bit as you're playing Spore is changing your characteristics for whatever level you're on. I want to perhaps add some eyes. I don't know why a single-celled organism has eyes but no brain, but it can have that. Or I can go back and I can put some shields on it. I want to have little shields to protect me on my side, maybe. And

I can go in and, I don't know, I think I'd like a mouth on my front. That would be kind of cool. So you create your character any way you want. And when you're done, you're ready to go out and take on the world. Now, the goal of this game is really simple. It's kind of like life. Eat or be eaten. That is your goal. So we're going to go, we're going to jump halfway through. We're going to go right into level 15, which is the kelp forest. And now I'm controlling my character by tilting the iPod Touch, trying to follow my way around. Watch out for enemies there. That spiky creature. I'm going to try to, I need to save energy if I want to travel along with the currents. And I'm looking for three. things that are smaller than me that I can eat and gain energy and grow. Just got bitten there.

And your goal is to protect your character and help it grow and evolve. The more things you eat, the stronger you get, the more you can evolve and add features for the next level. And that's your job. Again, it's kind of like life. I mean, the graphics are just incredible. The gameplay just feels so fluid, no pun intended. So that's a Peacock Spore. Again, it just started shipping yesterday. So if you want to get it, you can go to the App Store and get it and run it on your iPod Touch or iPhone. Alright, next up. A little higher on the evolutionary scale. A game from a great European developer, Gameloft.

You go into this game and it's real soccer, or if you're in most of the civilized world, real football. 2009. This is a brand new game. It's just starting to ship today. So we can pick from all different teams. I'm a homeboy. I'm going to pick the U.S. Who should we play against? Any country. I'm going to take Italy. Some of you may know they won the World Cup in 2007. Thrilling victory over France. You can pick all different settings for the environment you want to play in. Pick your stadium. What color uniforms you want to be. And let's start the match. It's going to bring us into the stadium. It's all rendered in 3D. Just incredible. The teams are going to be invited onto the field. It uses actual team data to bring out the right players current with these teams.

We're ready to go. Just tap the screen. Now what they've done here is really interesting. This game is originally designed for D-type player controls, but this is a touch screen. So they've overlaid those controls on top, plus added a bunch of control and gesture features that I can use. So I'm going to start my player. See, I can just turn the direction with this wheel. I'm going to start by passing. And that starts off my line. Watch this. I'm going to draw a little circle and do a 360 move. Totally befuddled the defense. I'm going to hold down the A key and create strength on a kick. Little instant replay.

I think Italy needs a new goalie. All right, last up, here's a game you haven't seen yet. This is a game coming out later this year in November from EA. It's one of their tremendous franchises called Need for Speed. And this is a version that's brand new coming out later on for all platforms, including iPhone and iPod Touch at the same time. Need for Speed Undercover. In Undercover, your job is to transport a package across town, avoiding the authorities. You can pick your ride. Mustang Cobra. I'm a Porsche guy. I'll go for that Porsche. I can make my own adjustments to it. Play with the suspension.

Play with the different wheel types until I get one I like. Play with my graphics and tune this thing up the way I want it. Let's get a little more of a race look. There we go. We're going to transport this package by way of entering a few street races. There's my car, just as we designed it just then. I'm going to be up against, who'd it pit me against? Ah, that Nissan GTR. Godzilla. Here we go. So now we take off. I'll let him get a little lead. He thinks he's doing great, but I have a nitro button. They're drifting on my turn. Yeah.

Awesome. I'm stuck. There we go. In real life, I get a do-over. So I may think I'm free. Ah. Kids, don't try this at home. And so that's Need for Speed Undercover coming this fall, November, to iPod Touch and iPhone. Thanks, Steve. All right. So, the new iPod Touch with the App Store built right in, and all these other great features.

It works with the new headphones we have coming out next month as well. And the battery life is just astounding. 36 hours of music and 6 hours of video. All on this really thin iPod Touch. And environmentally, the checklist looks a lot like the Nano. Arsenic-free glass. BFR-free. Mercury-free. PVC-free. And again, with the stainless steel in the glass. Highly recyclable enclosure. So we're really pleased with that. So, the new iPod Touch. It's got millions of songs that you can buy for it. Thousands of Hollywood movies.

And now, hundreds of games. This is the best iPod ever. And we think people are going to really love it. We've got it in 3 models. We've got an 8 GB model for a new, much lower price of $229. We've got a 16 GB model for $299. That's double the memory for the same price as the old 8 GB used to be. And a 32 GB for $399. And all 3 of these models are available starting today. Now, we've got an ad for the iPod Touch 2 that I'd love to show you.

So let's run the ad. The iPod Touch is the best portable device for listening to music. It's clearly the best portable device for watching video.

And now, you can make a pretty good argument it's the best portable device for playing games on. And a whole new class of games. So we're very excited about it. And this is the new iPod Touch for this holiday season. Now, I'd like to talk for a minute about the software on these devices. The new iPod Touch has a new version of software called 2.1. And you could see some of the new things that it could do. Well, what if you have the first generation iPod Touch? Well, you can get version 2.1 as well. If you've upgraded to 2.0, it's a free update to 2.1. If you haven't, it's $995 to update to 2.1 from a 1.x release.

And these updates are available today. Just go to apple.com. In addition to that, if you have an iPhone, we have a new release of software for the iPhone. 2.1 software update. A 2.1 software update is a big update. It fixes lots of bugs. You'll get fewer call drops. You will get a significantly improved battery life for most customers. We have fixed a lot of bugs where if you have a lot of apps on the phone, you'll get a lot of crashes and other things that we've seen. Backing up to iTunes is dramatically faster.

And so just a lot of bugs have been fixed. And there's some great new performance enhancements as well. So 2.1 software update is a big one for the iPhone. It is free to all iPhone owners. And it is going to be available this Friday. So keep an eye out for it later this week. It's a really good update if you have an iPhone. So that's software. So back to iPod plus iTunes. We think we've got the best lineup we've ever had for this holiday season. At the end of June, having sold over 160 million iPods, and having the strongest lineup of iPods we've ever had for holiday season before, and having the best version of iTunes we've ever had.

So we're ready for this holiday season with iPod plus iTunes, and we really appreciate the chance to share this with you this morning. Now, whenever we have a music event, we think it's really important to remind ourselves and all of our customers why we do this in the first place. And the reason we do this all is because, like you, we love music, and it just gets us really excited when we can bring some products to market that make enjoying music even better.

Well, today we've got a really special guest who's agreed to come and perform for us. He's sold over 16 million albums. His tour was one of the hottest tickets this summer. And he's the number one selling male artist in iTunes history. So can you please join me in giving a great welcome to Jack Johnson.

Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here.

Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here.

Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here.

Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here.

Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here.

Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here.

Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here.

Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here. Thanks for having me here.

Thank you. Thanks a lot. I want to thank Steve Jobs for having me here on the stage today. He didn't have to lie to be my friend. I don't think that's really true. All the stats they showed before. It seems kind of weird that I'd be the number one. There's U2 and all those bands. Maybe they don't count because they're a band or something. That must be it. Just as far as a guy with a name. Maybe that's the deal. I don't know. I'm used to kind of 20-something girls right here. I'm doing my best.

But I really do want to thank iTunes. My whole music thing came along right at the time when that was getting started. They've been really supportive and always really, really great about including us in everything. They're a huge reason that I get to keep playing music. I wanted to come and show my appreciation and say thank you for all the support over the years. Most of my friends aren't really watching this probably right now, but I do got a few friends over to Neuracom, the guys that, it's my cousin who runs our website, so I wanted to say hi to all my friends at Neuracom that are actually watching this right now, I think.

There's no combination of words I could put on the back of a postcard. No song that I could sing, but I can try for your heart and our dreams, and they are made out of real things, like a shoebox of photographs with sepia tone, loving, and love is the answer at least for most of the questions in my heart, like why they're here and where did they go and how come it's so hard? It's not always easy and sometimes life can be deceiving, I'll tell you one thing, it's so much better when we're together, yeah, it's so much better when we're together, somewhere in between together, well, it's so much better when we're together, yeah, it's so much better when we're together.

Unfortunately, this is really a song for my wife, not the guys at Neuracom, really, I keep picturing my friend Ed right now like in front of his computer screen and I'm trying to sing a love song, and all of these moments just might find their way into my dreams tonight, but I know that they'll be gone when the morning light sings or brings new things, for tomorrow night you'll see that they'll be gone too, too many things I've gotta do, but if all of these dreams might find their way into my day to day scene, I'll be under the impression I was somewhere in between with only two, just me and you, not so many things we gotta do, or places we got to be, we'll sit beneath the mango tree now, yeah, so much better when we're together, well, we'll look at them stars when we're together, yeah, so much better when we're together, mmm, so much better when we're together, mmm, mmm, mmm, mmm, mmm, mmm, mmm, and I believe in memories, they look so, so pretty when I sleep at night, well, when I wake up, you look so pretty sleeping next to me, but there is, there's not enough time, there is no, no song I could sing, there is no combination of words I could say, but

I will still tell you one thing, we're better together, mmm, mmm, mmm, mmm, mmm, mmm, mmm, Thanks again, you guys, for having me here. Well, thank you all for coming this morning, and go get your hands on some of these new products, I think you're going to love them.

Thank you very much.