Steve Jobs on iPods and iTunes: Ping, Nano, Touch

Good morning. Thank you, thank you. Thank you very much. My partner-in-crime is here today, Steve Wozniak, stand up.

Well thank you for coming, we've got some really cool stuff to show you this morning. And so I first wanted to start with an update of Apple Retail. We've all seen our Fifth Avenue store, but we've been opening some amazing stores lately, and I wanted to just fill you in on three of them. The first one is in Paris, it's our second store in Paris, our first was in the Louvre. This is near the old Opera House, and it's this beautiful old building that we've restored and made a gorgeous store in. It's got a great skylight, and it's just a fantastic building. We spent 18 months restoring it, and here it is with people in it.

And it's just a fantastic store, and Apple users in Paris are loving it. So we're really excited about our new Paris store. We're also really excited about our second store in China, which we opened recently in Shanghai. It is a 40 foot high glass cylinder. These are all curved pieces of glass, single pieces, 40 feet high. It's kind of a landmark in glass engineering. And it's a fantastic store. Here it is from the front, and here it is down in the store.

And here it is with people in it. This was opening day, and here it is in the greater environment of Shanghai, and it's really a fantastic location, and we think it's going to do really well. So our second store in China. The third big store we've opened recently has been in London. We got the whole building here right in Covent Garden. And we've got another large store on Regent Street, but this is our second really large store in London. And it's a beautiful, again, a beautiful old building that we've restored right in the heart of Covent Garden, and it's fantastic.

A lot of restoration was required, but it's a beautiful store now, and you can see the old and the new together work beautifully. And here it is with people. And so this is open, and it's been a great success so far. All three of these stores have been. And we now have 300 Apple retail stores. As a matter of fact, Covent Garden was our 300th store we've opened. And some of us remember when we opened our first one, and wow, we've come a long ways. We have 300 stores now. And we're in 10 countries, 10 different countries. We're soon going to open our first store in Spain and make it 11. Now, remember when Macworld used to get 30,000 people coming to it here in San Francisco?

Well, we've got single days in our stores now where over a million people visit. Not every day, but we are now poking through a million visitors a day, several days a month. So that's amazing to me. We teach one-on-one classes, especially to people that are new to Mac. And we are now teaching 80,000 of those one-to-one classes a week in our stores. And of all the folks buying Macs, over half are buying their first Mac. So our stores are bringing a lot of new users to our retail operations.

But they're also bringing a lot of new users to our operating system that powers our mobile devices. And it's been a revolution in both touch and apps. Touch user interfaces were completely different before the iPhone. And mobile applications were completely different before the iPhone. It's been a revolution in both of them. And for us, it's made these three products possible, the iPhone, the iPod Touch, and now the iPad. So how many iOS devices have we shipped since we launched the phone just a few years ago? 120 million. 120 million.

Throwing around a lot of numbers as to how many of their operating systems they're activating per day. We are activating a little over 230,000 iOS devices per day. And that's new activations. We think some of our friends are counting upgrades in their numbers. If we counted upgrades in our numbers, they'd be way higher than 230,000. But we think the most appropriate way to count them is just new activations, 230,000. And we think we're ahead of everybody. And the App Store, iOS apps, over 6.5 billion apps now on the App Store.

And that is 200 apps every second are being downloaded. 200 apps every second. There's another 200. It's incredible. So 6.5 billion apps have been downloaded from the App Store. Amazing. And of those 250,000, 25,000 of them are now iPad apps. So the iPad apps are just going like this. Today we're introducing iOS 4.1, the next release of iOS. And it's got some really cool stuff in it.

So let me go through what it's got. First of all, a lot of bugs have been fixed. 3D sensor bugs, Bluetooth bugs, iPhone 3G performance bugs, all the bugs that we get mails on. We think we've nailed a lot of them. And we think you're going to be pretty happy with it. Secondly, we've added a really cool thing called HDR photos, high dynamic range photos. And I'll explain that in a minute. That's going to be standard in iOS 4.1. The ability to upload HD video over Wi-Fi, YouTube, and other places built into 4.1. TV show rentals in addition to purchases. And Game Center is now making its debut for end users.

We think this is going to be a pretty big deal too. So let's start off with high dynamic range photos. What are high dynamic range photos? Well, when we take a photo, a lot of times we get it where it's blown out with light. You see it washed out with this bright light coming in over the building there. Well, when you turn on HDR just by tapping on that button there, when you take a photo, it actually takes three photos in rapid succession. It takes one normal exposure, what it thinks is the appropriate exposure, and then one that's underexposed and one that's overexposed. And it combines these three with some pretty sophisticated algorithms to produce an HDR photo.

And it's pretty amazing. And we keep both the normal photo and the HDR photo in the photos app. So you can just compare the two of them and use the one you like. But it's really remarkable in some photos. Let me show you a few other examples. Here's another one where you can see how HDR has pulled out the sky and pulled out the detail in the foreground. Here's another one where you can see it's trying to pull out the shadow in the background. You can see her legs pulling them out of the shadows as well. Take a look at this one. You can't even see the pavement, the one on the left. And look at how it's pulled all that out from the one on the right. And one final one again. You can see the sky and a lot more detail in the background using HDR.

So for some photos, it's pretty great. And it's built into iOS 4.1. Another thing we've built in is Game Center. And Game Center is both APIs for developers to build into their apps and it's an app called Game Center. center right on the phone. Game center is all about multiplayer games. And it allows you to challenge your friends to multiplayer games, and they can challenge you. And if you don't have any friends, it'll auto-match you with people. So it's pretty great in that way, too. And you can compare scores, and you can discover new games your friends are playing. So it's pretty nice. So as an example, this is Thor. And Thor can take a look at the games that they've played with other people.

And Thor is one of my 73 friends, let's say. I've got 73 friends. And I've got 19 games that are multiplayer games that work with game center. So I can take one of those games and, as an example, Angry Birds. I can look at leaderboards. I can look at achievements and everything I've done with my friends to see how I'm doing. So here, I'm inviting two friends, Appleseed and Thor. And I'm going to get matched up with game center with two other players of roughly equal ability, all automatically. Or if Thor wants to invite me to play a game, this is what it looks like. Thor has invited me. I can decline or accept. So that's game center. Now, again, you've got to see what this can do. It's pretty exciting.

And there's a new game that's going to be coming out later this year that we saw that's really remarkable from Epic Games. And it's my great pleasure to invite on stage Mike Capps, the president of Epic Games, to show us this amazing new game using game center. Thanks. Thank you. So good morning, everyone. I'm really thrilled to be here to reveal our very first project at Epic for Apple mobile devices. It's powered by our award winning Unreal Engine 3 game technology, which has powered countless hits for console and of course our Gears of War series. To demonstrate, I want you to meet Donald Mustard, our creative director. Donald? Hi, everyone. Today we're introducing a new game currently in development. It's codenamed Project Sword.

So Project Sword is a gorgeous, action-packed role-playing adventure. And it's filled with epic sword battles. Now, everything that you're seeing is running in real time, this isn't a movie, and I'm controlling everything you're seeing right now. I'm in the Citadel, a vast environment filled with enemies, treasure, and the weapons that I'll need to take down the legendary God King. So if your jaw's not on the floor, it should be. Take a look at this place, right? This is a gorgeous 3D world, and it's filled with intricate levels of detail that you just don't expect to see on a phone device. Plus now we've got game center, so we have dozens of unique achievements to unlock. We've got worldwide leaderboards, so you can compete with your friends. And it's really easy to find someone online to play with. And I'm going to show you. And honestly, with game center, it's just as easy as that. Mike's going to send me an invite, and I can accept it.

Now, as a designer, what's awesome about game center is that all the social integration is done for us. So I'll be playing this massive, brutish titan here. And Donald's going to be playing this wimpy little knight. You can see the character detail is amazing. We're using the same lighting and motion-captured animation techniques you see in top CG films. Now, our multiplayer uses two unique control interfaces, allowing for more hardcore gamers to be matched up with more casual players. My attacks happen just like you'd think, by swiping directionally across the screen. So my interface is a little less caffeine-powered. I'm just dragging different moves onto the screen, for example. Here I'm going to drag, let's see, how to open my boot, say, onto your face. Oh. All right, lucky hit.

Now, if I'm good, I can dodge and even parry attacks. Putting the titan into a mode where I can unleash a powerful combo, unlocking an achievement. Great, and now everyone in the world will see that on Game Center. So you call me a wimpy knight. Well, I'm going to take the gloves off. Let's see what you got. All right, little man. Well, I might be little, but I'm really, really fast. So guess what? Now this is happening. And you know what they say, the bigger they are, the harder they fall. So this is what you get when you take a designer on with his own game. Yep. Thanks. So we're really thrilled about this game, but I'm even more excited to take this technology and put it in the hands of iOS developers all over the world, because I want to play the games that they come up with next.

Project Sword's going to be available this holiday season. It'll be out on iPod Touch, iPhone, and iPad. I think you guys are going to love it. Thanks a lot, everyone. Thank you. Thanks, sir. Thank you. It's on a phone. That's pretty remarkable. Well, that's a little peek into Game Center. So those are just two of the many things in iOS 4.1, and it's going to be available next week. It's for iPhone and iPod Touch, and it's going to be a free download via iTunes. So look for it, iOS 4.1, next week. Now, I've got a little surprise for you today.

It's a sneak peek at the next iOS release, 4.2. 4.2 is going to come a little later this year, and it's all about iPad. It's bringing everything to iPad, iOS 4.1, with its multitasking, its folders, Game Center, HDR photos, everything you saw here, all of it to iPad. Wireless printing. We're adding wireless printing to iOS, and we're adding something really cool called AirPlay, which we'll talk about a little later today. So let me give you a little feel for printing.

So let's say we're in Pages on the iPad, and we want to print, and we push the Tools button here with our finger, and we get up our Tools, and we see there's Print now. We push Print, and we get to select our printer. We get the number of pages. Very, very simple. And we can just say Print. Now, again, select a printer for the front office. So we're going ahead, and we're printing. Whenever we're printing, down below, if we bring up the multitasking bar, we see that it's put Print Center right in the front, and showing us how many jobs are printing. In this case, one. And we can go examine it. We can even cancel it if we want to. So that gives you a feel for how simple printing is going to be in iOS, and it's very powerful. Now, what is AirPlay?

Well, you know what AirTunes is. It's streaming music over Wi-Fi to an airport express base station, so you can listen to music all over your house from your mobile device. Well, we're changing the name of AirTunes to AirPlay, because it's not just going to be music anymore. You're going to be able to stream audio, but also video and photos over Wi-Fi to other devices. And we'll get into that a little bit later. So let me just give you a brief demo of iOS 4.2 running on an iPad. I've got my iPad here. And let me go ahead and just go ahead and swipe over here, and let me launch Pandora. And I've got some Jack Johnson music here.

Let's go ahead and play that. And let me bring up the multitasking bar. There it is. And let's go to mail. So we're multitasking here, listening to Pandora in the background, and there's mail. We've got multi-threaded mail here. So again, two messages from Gary Dunn. And here's one talking about a Gibson West Montgomery guitar. So let's go take a look at that. Now we've multitasked over to the browser, and here we are on the web. Again, we can just go over here and stop and start our music. Very, very simple.

So let me show you folders now. Let's go ahead and make a folder with our news apps. So I can just get into jiggle mode here, and I'll just put NPR on top of Wall Street Journal, and it's made a folder called News right here, which I could rename if I want to. And I'll go ahead and put the Financial Times in there, and put Editor's Choice in there. And I can even put this down on my dock if I want to. And now I've got a news folder right there with my news apps in it, right on my iPad. So all of us that use iPhones know and love all these features. And we love them, and we can't wait to get them on our iPad. So when is 4.2 coming out?

It's coming out in November. And it's going to be a free update for iPad, iPhone, and iPod Touch with all those new features in it. And so we couldn't be happier about the progress of iOS. 120 million devices, over 230,000 activations of new iOS devices per day, and two new releases of iOS, one coming out next week, the other coming out in November. We're really, really happy with iOS. So that's the iOS update. Now I'd like to get on to the entree today, iPods. It's our music event where we unveil the cool music products we've got lined up for the holidays.

And today is no exception. So let me talk about iPods for a minute. How many iPods have we sold? 275 million iPods. Now, one of the secrets to the iPod's success is that even though the iPod has a very high market share, we've never rested on our laurels. Every year, we try to improve iPods, make them even better for our users. And this year, we've gone wild. Because we have all new iPods, a all new design for every single model of iPod.

It's really exciting. It's the biggest change in the iPod lineup ever. So let's start off with the iPod Shuffle. This was our first generation shuffle. It's based on the concept that shuffling is a wonderful way to listen to your music. And we could make a really affordable player without a display that just shuffled your songs and was super easy to use. And it's been a really big hit. The second generation was even better. It was dramatically smaller. It had a clip. It had these ring buttons on it that was really easy to use. The third generation, we took off the buttons, added voiceover so you could listen to your songs, and added playlists. Now, it could talk you through your playlists and you could pick a playlist.

But people clearly missed the buttons. So they love the buttons of the second generation, but they love voiceover and having playlists on their iPod from the third. So what are we going to do? Let's make the best of both. The new iPod Shuffle. It's even smaller than the second generation. It's got buttons, voiceover, and playlists. And it's really small. So, of course, it's got the clip so it's instantly wearable. And it's really nice. Just clip it on and go. And it's got some great features. Again, it's small and wearable. It's easy to use with the buttons. You never have to look down at the product to change its volume or go to the next or previous song. It's got playlists.

It's got voiceover. It's got playlists. It's got playlists. It's got playlists. It's got playlists. It's got playlists. It's got playlists. It's got playlists. It's got playlists. So you can ask it to speak the playlists. It'll speak through just like the third generation iPod Shuffle. And you can pick a playlist that you want. So you can have multiple playlists on your iPod Shuffle. Genius mixes we're adding. It's been a very popular feature on the other iPods. And, of course, voiceover. So it'll tell you the song or artist you're listening to, playlists, genius mixes. It even tells you when the battery needs charging. And 15 hours of music. 15 hours. This little tiny thing. This is what the packaging looks like. It's really cute.

And it comes in five different colors. And it sells for just $49. So that is the new iPod Shuffle. We're just getting started. So now let's look at the iPod Nano. This is the first generation Nano. It was a breakthrough. The first high-capacity flash-based music player. And it was a stunner when it first came out. The next generation, we took it to extruded aluminum. It's even better. The third generation, the fourth generation had an even taller screen on it.

And the most recent generation, an even taller screen. Now, how do we make this better? The iPod Nano has been super popular. What can we do? Well, we'd like to make it smaller. And we'd like to make it better. Well, to make it smaller, there's only one way to do that. And that's to eliminate the click wheel. And there's only one way to eliminate the click wheel, which is to make it touch-based. And there's only one good way to make it touch-based. And that's multi-touch. And so that's what we've done. The new iPod Nano has multi-touch. And it's really small. Thank you. It's very tiny.

So you can hold it just in your hand like this. It's amazing. And super easy to use. And it's so small, we're able to put a clip on it, too. So it's instantly wearable. So multi-touch user interface, it's 46% smaller and 42% lighter. In other words, it's almost half as small and almost half as light as its predecessor. That doesn't happen too often. It's got a clip, so no more armbands when you want to use it for athletics. It's got volume buttons, hard volume buttons, voiceover, FM radio, Nike Plus, and a lot of other things. Nike Plus, Pedometer, all sorts of stuff like that.

And it works in 29 different languages. So we're really excited about this. It's got 24-hour audio playback, 24-hour battery life. And so take a look at some of the screens. So you've got a lot of different screens. You've got the home screen. As you flip through, you've got radio and photos and podcasts and settings, and then all different ways to music, songs, albums, composers, genres. You've got Nike Plus. You've got voice memos. And this is what it's like when you scroll through it. You get these nice big letters to find out where you are. That's what albums look like. It's great to see the album art. Here's some more.

The first two are radio up there, the built-in FM radio. Got a clock. One of our board of director members is going to clip it onto an armband as a watch. Photos. And again, the home screen. So this is what it looks like. Let me show you how it works. So I've got one right here. And this is an iPod Nano. And so let me just flick some of the screens here. Well, first of all, I can go right into music. I can just hit Artist and go just right through like this. And let me go to E. And I want to find Ella Fitzgerald.

And I could just play a song. And again, here's the controls. I go to the next song, previous song. There's Genius and Shuffle, Repeat. Real easy. And again, I can swipe right and go through. Or I can just hold down any place. Whoops, not there. And get right back to the home screen. So it's very, very easy to navigate around. Let me show you some of the other screens here. So we've got, again, radio, podcasts, and photos, all the different ways of listening to music and all the other stuff I've got here.

So let me say I want to listen to albums a lot. And I want that on the home page. I can just push down and jiggle it and move it, just like I can with my other iOS devices. So now I have albums on the front page. And again, I can just scroll through here, real easy. And, you know, go anywhere and play a song, real easy to do. Thank you. OK, let's see. The last thing I want to show you was, if we go home again, let's go to the home screen.

Let's say I clip this on and I clip it on upside down. I just take my two fingers and rotate it and change the screen like that. So the last thing I'd like to do is just show you some photos on this. And let's go to, I know I am upside down. Well, I live a lot of my life upside down. But anyway, you can just see what photos look like on it. They're really nice as well. Just flick between them here. So that gives you a little bit of an idea of the new iPod Touch. I mean, really. I mean. The new Nano comes in the same four colors the new Shuffle does, plus two more.

And we're doing a product red version where some of the profits go to the Global Fund. And so we're really excited about these. They're really beautiful. And it's still amazing to hold this much music in your hand in such a small little thing. It's always amazing. This is the new iPod Nano. Sells for $149 in the 8-gig version, $179 in the 16-gig version. A new iPhone, a new Nano, that leaves the iPod Touch. The iPod Touch has been a remarkable product for us, and it has become the most popular iPod.

It used to be the Nano, but in the last year, the Touch has become the most popular iPod. And a lot of people call it an iPhone without the phone. It's also an iPhone without a contract. But even more remarkable, it's become the number one portable game player in the world. It's amazing. The iPod Touch, the iPod Touch outsells Nintendo and Sony portable game players combined. It's been amazing. It's got over 50% market share for portable game players in both the U.S. and worldwide.

It has become by far the most popular portable game player in the world. And over a billion and a half games and entertainment titles have been downloaded from iTunes just to the iPod Touch. Just to the iPod Touch alone. Over a billion and a half games and entertainment titles. So what are we going to do with this really successful iPod Touch? Well, we're going to make it even better. We're going to change it. This is the new iPod Touch. It's even thinner. Let me go back again. That's the current one that's really thin. This is the new one. It's even more beautiful.

Here's the top with the sleep-wake button, bottom with the same 30-pin connector, headphone jack and speaker port. But even more remarkable is what we've put inside it. The new iPod Touch has our amazing retina display in it. The same thing we pioneered with the iPhone. It's got four times the number of pixels at 326 pixels per inch. You can't even discern the individual pixels. It's a remarkable display, 24-bit color, LED backlit. It is the best display in the world. And that's what everyone has said who's seen it on the iPhone. It is now in the iPod Touch. The Apple A4 chip, the same chip that powers the iPhone, three-axis gyro for even better gaming, iOS 4.1 with Game Center.

And we've added a front-facing camera and FaceTime. FaceTime in the iPod Touch. FaceTime over Wi-Fi. And we've added a rear camera as well with HD video recording. All of this in this really thin thing, 40 hours of music playback. So that's the new iPod Touch. Here's the forward-facing camera. Here's the rear-facing camera. And again, you can edit your videos right on the phone. You can trim them.

You can upload them over Wi-Fi to YouTube directly. You can buy the iMovie app, the same one that runs on iPhone, now runs on iPod Touch, and actually edit videos right on the phone. And of course, you can do FaceTime. And not just with other iPod Touches, but now also between iPhones and iPod Touches. So we're very excited about this. And of course, we have Game Center. So all of this now on an iPod Touch. We're very, very excited about this product. So there's the packaging. There's three models, an 8-gigabyte model for $229, a 32-gigabyte model for $299, and a 64-gigabyte model for $399.

And this new iPod Touch joins the new iPod Nano and the new iPod Shuffle for an all-new lineup for this holiday. And they are all available next week. And they're available for pre-order today. So you can go on the web and order them starting today, and they'll be shipping next week. So we're very, very excited about this amazing new lineup of iPods. So it wouldn't be Apple without some new ads.

So I've got some ads that I'd love to show you if you want to see them. Yeah? Let's go ahead and run it. So you'll be seeing those soon.

So the strongest lineup of new iPods we've ever had. And we are really excited when people get their hands on them starting next week. So that's the new iPods. Now, as you know, iPods are part of a great duet with iTunes. And iTunes is also pretty remarkable. You know, people have downloaded over 11.7 billion songs from iTunes. We're just about to cross the 12 billion song threshold. Over 450 million TV episodes have been downloaded. Over 100 million movies now.

Over 35 million books. And we've now got over 160 million accounts with credit cards and one-click shopping in 23 countries. So iTunes is an amazing thing. It's clearly the number one online media store in the world. Today we're really excited to launch the next major version of iTunes, iTunes 10, the tenth major version. Now this is the venerable logo that we've been living with for almost a decade. And we thought it was appropriate since next spring. And it looks like iTunes is going to actually surpass sales of CDs in the U.S.

We thought maybe it's time to ditch the CD and the logo. And so this is the new logo for iTunes 10. So what have we done? What's new? Well, there's a few housekeeping things. We've made it even more elegant and simple and it looks even better. And this is, of course, album view. Here is list view. We all live in list view a lot. Now in list view you'll notice that in the album column, if you have a lot of songs from an album, the name of the album is just repeated over and over again. It seems like kind of a waste of space. And so what we've done in iTunes 10 is we've got a new hybrid view where if you have over five songs from the same album, it realizes it can take that same amount of space and show you album artwork in it.

And so if you don't have, if you have less than five songs, it doesn't do that because it doesn't take up the space to do it. But if you do, it shows you the album artwork and it takes no extra space. So it's a really nice new view. We think people are going to live in this a lot. And of course, we also have CoverFlow and we also have the iTunes Store. Now one of the biggest things we focus on with iTunes is discovery. With over... 12 million songs in the iTunes library. How do you find out about new stuff? We can try to present some new things, but you know people are always asking you know, what are my friends listening to? What are my favorite artists up to? You know what concerts are my friends going to and if I see something really great I want to tell my friends all about it, and there's really not a great way to do that email you know there must be a better way and so in iTunes 10, we're announcing something really cool, and we call it ping and What ping is is it's a social network for music?

It's sort of like Facebook and Twitter meet iTunes. You know it's not Facebook. It's not Twitter It's something else that we've come up with it's a social network all about music and it's built right in to iTunes and so you can follow your favorite artists and friends and you can discover what music they're talking about listening to and downloading and So right here You can see the iTunes store and right below the iTunes store built right into iTunes is ping and you click on it And you see all your recent activity in your post right so here's a here's a post by one of your friends that you're following Here's a post by an artist Lady Gaga that you're following another friend right here You can find people by just typing in their names And if if they've registered for ping and they've held their hand up and said you can follow me you can sign up to follow them with just a simple click and you get a custom top 10 chart of songs and albums That are just it's customized to what only the people you follow are downloading from iTunes So it's a custom chart of All the stuff the people you follow are downloading from iTunes just for you And it's really cool. Here's an artist page Lady Gaga in this case. Here's her recent posts Here's her favorite songs and Here's the concert. She's going to be performing at and If you want to follow Lady Gaga All you do is push this button here and all her posts and all her information will be put into your feed

With all your friends and the other artists that you follow It's that simple here's a friend of yours Kevin Angel here's his recent posts Here's his favorite songs Here's the concerts that Kevin said he's going to You might want to go to him as well, and here's the people That Kevin follows So it's that simple it's super easy to use and Again, most of us will live in our feed right here and all that information for the people we follow will be delivered right to us and so ping is a social mute is for social music discovery and You can follow people and you can be followed and here's how it works Artists most artists will hold their hand up and say anybody can follow me and you can follow them as we saw with just one click You can hold your hand up if you want to and say anybody can follow me and anybody who wants to can follow you or You can say people can follow me, but I have to approve everyone that's going to follow me Because I'm a little particular And so what you can do, then is set up circle of friends Where me my ten buddies?

We're all going to agree to let each other follow each other But that's it and we've now got a circle of friends and whenever any one of us. Here's a great song we're gonna post it and the rest of us will know about it instantly and The top ten charts will reflect what the ten of us are downloading from iTunes So you can get you can get as private or as public as you want and the privacy is super important The privacy is super simple to set up Anyone can do it It's great. And so you can post your thoughts and opinions whenever you want to You get custom song and album charts. There's over 17,000 concert listings So you can find the concerts for all your favorite artists if you're following an artist you'll be alerted to their concerts in your feed automatically and ping is Open to over a hundred and sixty million iTunes users in 23 countries immediately We're starting with a very large base of iTunes users and they can all sign up for ping immediately So it's pretty cool, and I'd love to show it to you right now So Let me launch iTunes 10 again the new icon right here and Here's my new Hybrid view as you can see it doesn't take any extra space for songs We're only have a few from an album, but when I have a lot it just shows me the album art taking no extra space Okay, so what I'm gonna do now is I'm gonna click ping right over here and this is my feed and

So as an example, I'm following Jack Johnson Jack posted some photos. I just click on one and you know, I click through them like this See any ones I want. I guess he's on tour and these are some of his photos from his tour and Philip has written a post and I could write a comment too. I could just say Cool photos And I don't know how to spell Cool photos and post a comment and that's all that's you need to post a comment and everybody who follows me now can see those comments and You know, here's a song Eddie has posted a song here and I could preview it here just by clicking And I can just buy it if I want to by clicking a buy button And I can see all the songs on that album if I want to listen to any one of them I want Real simple Here's a post by Katie. I could go see again Katie's profile right here And I can see all the songs on that album if I want to I could go see again Katie's profile right here. There's Katie and here's our beloved Katie Again here's all of Katie's favorite songs. I could listen to any one of them or go to the album if I'd like and It's it's that simple So, let me go back So below Katie, here's Lady Gaga who I'm following and she's posted a video again You can post videos photos, whatever you'd like

Hey everyone, this is Gaga. I'm so excited to be announcing my brand new page on iTunes So I can connect more with all you beautiful little monsters And right now on the road touring on my monster ball worldwide tour and I'm finishing up my record in the studio I can't wait to play it for you, and I love you So there we go and You know, here's concerts down here I could see all the concerts that are near me and So there's one and I could say well, I'm going to that one and I could write a post if I wanted to and say, you know, see you there and post that and So now let me go back and oh, here's another post from an artist I followed that just came in from yo-yo ma right here and Yo-yo ma's playing and This is great. So, you know, let me go to my profile here. I've got a profile that That's me. And here's some of the songs I love and again, I can look at the activity You can see where Steve is going to the Honda Civic Tour That I just said I'm going to so everybody that follows me can see that I've purchased the song you can see that I've commented on Jack Johnson's photos and so all the activity that I've done is available for my Circle of friends or my family or if I want to anybody to see and it's that simple It's a social network all about music makes sense I

Tunes 10 it's even further refined It's got some new things like the hybrid view and other things that will make your life even more fun using your music library And it's got ping Now ping is not just available on your computer It's available on your iPhone and It's available on your iPod touch It's showing up Right in the iTunes store There's a new button right in the middle called ping you push it and you get your recent activity right on your phone or your iPod It's amazing so I Think it's a social network for music Created by Apple. It's built into iTunes It's built into iTunes 10 iTunes 10 is available today to those hundred and sixty million people in 23 countries And you can get a free download at apple.com starting today.

So that is what we're doing with iTunes. We think it's going to be pretty hot. So iOS, iPods, iTunes. Not bad for one day. But we've got one more thing. Actually, it's one more hobby. So of course we're talking about Apple TV. Now we introduced Apple TV four years ago. And we sold a lot of them, but it's never been a huge hit, nor is any other competitive product.

Nothing's really hit in the living room yet. But we talk to people that use Apple TVs, and they love them. They absolutely love them and use them a lot. So what have we learned in the last four years? What have we learned from our users? Well, we've learned a lot. The first thing is, the number one, two, and three thing they want is they want Hollywood movies and TV shows whenever they want them. It's that simple. It's not really complicated. They want Hollywood movies and TV shows. They don't want Amateur Hour. They want professional content. And they want everything in HD.

The HD revolution is over. It happened. HD won. Everybody wants HD. They'd like to pay lower prices for content, right? The lower the prices, the more they're going to watch. They don't want a computer on their TV. They have computers. They go to their widescreen TVs for entertainment, not to have another computer. This is a hard one for people in the computer industry to understand, but it's really easy for consumers to understand. They get it. They don't want to manage storage. When you buy a bunch of movies and TV shows, you have to manage them because you don't want to throw them away. You just bought them.

And so you have storage management problems. Your hard disk starts to fill up. What are you going to do? People don't want to think about managing storage. They just want to watch movies and TV shows. And they don't want to sync to a computer. Most of them haven't even figured out what that is. They want to pull some content off their computer, but they don't want the syncing stuff. It's too complicated. And they want whatever hardware we have to be silent, cool, and small, right? Not too hard to understand. So this is what we've learned, and it's really quite a bit different than a lot of other companies think. And either we're right or we're wrong, but this is what we've heard from our customers.

And so we've made something new for them. This is the current Apple TV. We are introducing the second generation of Apple TV today, and this is what it looks like. It's a fourth the size. You can hold it in the palm of your hand. I have one here, actually. Look at this. That's it. It's this little tiny box. On the back, it's really simple. It's got the power supply built in it. There's no power brick, and all you need to do is plug in a power cord.

One HDMI connector to go to your TV, which brings digital video and 5.1 surround sound. And if you have a terrestrial Ethernet, you can plug it in. Most of us don't, so we built in Wi-Fi, 802.11n. So you don't even need a hard network connection. It's really simple. You plug in these two cables, usually, the power and the HDMI, and it's on your Wi-Fi network, and that's all you have to worry about. It's got a great remote with it, a really beautiful aluminum remote, and it's real easy. It's about music, TV shows, and a lot of people like to stream their music from their computer to it as well. It's all HD when the content's available.

We've gone to the rental model for this. There's no purchases on Apple TV anymore. You rent everything. The prices are more affordable, and guess what? There's no storage problem, because you don't store things anymore. You just rent them. And the rental prices are so inexpensive that you can afford to watch something several times, and it's still cheaper than if you would have bought it. You stream content from your computer if you want it, photos, videos, music. There's no syncing required. It's super easy to just stream stuff right up from your computer. And when you stream photos in or get photos from somewhere else, stunning photo slideshows.

And it's silent, cool, and tiny. So what about content? iTunes has the largest online library of movies to rent in the world, the largest library of HD movies in the world. So you can rent first-run HD movies for $4.99 the day and date when they come out on DVD. And the library's great. The movies are great. And they get even cheaper as time goes on. For first-run movies, the day they come out on DVD, $4.99. Now, to buy TV shows used to be $2.99 for HD TV shows.

People said that was a little too expensive. To rent HD TV shows, they're going to be $0.99, $0.99. Now, and remember, these are commercial-free as well, which is nice. Now, this is a big step for some of the studios to make, and not all of them wanted to take this step with us. So we've got ABC and Fox taking this step with us, going to be offering their shows for $0.99. We think the rest of the studios will see the light and get on board pretty fast with us. So we're very excited to offer ABC and Fox shows for just $0.99 rentals. In addition to renting Hollywood first-run movies and TV shows, you can also, if you're a Netflix subscriber, stream content from Netflix's streaming library right on Apple TV.

They have a large collection of movies you can stream for free if you're a Netflix subscriber. You can also watch anything you want on YouTube, including all the HD stuff that they have now. It's really exciting. You can get photos off of Flickr, and you can get video and photos off of MobileMe. And again, you can stream content off your computer, Mac or PC, music, which is very popular, photos, and videos. So this is what the UI looks like. It's really simple, movies, TV shows, Internet, computers, and settings. Going to top movies, these are the kinds of movies you see, all first-run movies.

You want to rent one? Go ahead, $4.99, literally single click, you're renting it. And you can see a synopsis of the movie, the actors, director, producers. You also can get user ratings, and you can see the tomato meter up there for the first time. And viewers also that rented this film also rented these. Now, if you want to see more detail, you can just scroll down, and you can get detail on the actors, what other films they've been in, et cetera, the director. And you can actually read reviews from Rotten Tomatoes. So for this film, see the Rolling Stone magazine, Philadelphia Inquirer, Toronto Star, and the New York Times, and decide which movies you want to watch. It's really great for watching movies. So let's move on to TV shows. Again, top TV shows, you select one you want to rent, click a button, $0.99, you've rented the show.

It's that simple. And you can start watching these things generally within seconds of renting. So that's TV shows. On the Internet, you can watch, if you're a Netflix subscriber, you can watch films from their streaming library, YouTube, thousands of podcasts, audio and video podcasts, mobile meet content, Flickr, lots of Internet radio stations, again, all available right on Apple TV. This gives you a feel for Netflix. And my own computer, I can get in there and listen to all my music or any other content I have on the computer. So this gives you a feel for the UI of Apple TV.

And again, it all comes out of this tiny little box. It's pretty amazing, and I'd love to show it to you now. I happen to have one right here. And you can see kind of slideshows you can get on it. It's even more fun when they're your own pictures, but really nice slideshows. And so let me go ahead and just go to the home screen. Here we are. So, again, top movies, TV shows, Internet, computers, and setup. So let me go into top movies right here. And this is all live.

These are the top movies we have. So, you know, let me go rent one. Iron Man. Here's Iron Man right here. I can watch a free preview, of course. I can see all the films that other people rented that rented Iron Man 2. And I can just scroll down here if I want to. And, again, I can, Robert Downey Jr., I can see what other films he was in. These are all the other films, or Gwyneth Paltrow. I can look at customer reviews, and I can look at the Rotten Tomatoes reviews. It's pretty nice. So, I can rent this in HD for $4.99 just by clicking the button. I'm about to rent it, and here I go.

And within a few seconds, it's going to tell me it's ready to start watching. And I can watch it later, or I can watch it now. So press play to watch. I'm just going to press play, and let's get started. So let me go ahead and let's go to another chapter in here.

You get the idea. And the quality is pretty sensational. So that's movies. Let's go on to TV shows. Favorite TV shows? So I get to decide which are my favorite TV shows and flag them, and they all show up in one place here. And each season, it shows me how many episodes have been broadcast that I haven't watched yet. So let's say, I can also rearrange these things. So let's say Glee is the most important show to me. I can just hold my button down. It starts to jiggle, and I can move it over here. So that's fine. I'll always see Glee. And there's one episode I haven't seen, and I can go in here and say, OK, let me go ahead and rent that episode for $0.99.

And let's play it. All right. There you go. That's Glee. So that's TV shows. On the Internet, again, we've got all these great things you can get. And if you're a Netflix subscriber, again, you can get all this stuff for free.

So let's go to Netflix. And again, I'll go down to see what's in my instant queue. And I can watch any one of these movies for free if I'm a Netflix subscriber. It's pretty cool. This is by far the best implementation of Netflix, too. It's the easiest to use, and the quality is great. And so it finds my computer on the net. If there were more, it would just list them all. And I could, again, stream my music or whatever. But I'm going to go down to photos. And so I can say, great, let me go into events here.

Australian vacation. Let's see what that is. And again, it just shows us some of the photos. And we can say, great, show me a slideshow. Let's see. You get the idea.

So that gives you an overview of Apple TV. Now, let me show you something else that's really cool. We talked about AirPlay before. And AirPlay is coming in November with iOS 4.2. And one of the things we can do with AirPlay is we can stream content from an iOS device to an Apple TV. And so I've got my iPad here. And let me go back to my video player. And I've got one of my favorite movies here up. And I'm going to go ahead and play it.

Now, when I'm playing it, I can bring up the controls. And you'll see right there by the volume control, there's a new button. Oops, out of my way. And I can just push it like this. And now I can decide where to go ahead and stream it to. And I'll say the family room Apple TV, which is this one. And so in a second or two, there we go. So you're going to be able to be watching a movie, walk into your living room, and push a button and watch the rest of it on your Apple TV. You're going to be able to come home with a bunch of photos on your iPhone, push a button on your iPhone and see a slideshow on your Apple TV.

It's going to be pretty cool. So Apple TV. Now, we have content on iTunes in six countries, U.S., Canada, U.K., France, Germany, and Australia. And we've got more countries coming later on this year. The price of Apple TV was $229. Some feedback we got from our users was they'd like to see that more affordable. The $200 to $300 price range was just not something that a lot of users were willing to experiment with when they didn't quite know what this new age of digital television was going to be all about. And so we're going to lower the price from $299 for the old Apple TV to just $99 for the new Apple TV.

So the new Apple TV is available later this month in about four weeks, and you can preorder today. So that is the new Apple TV. So here we are on September 1st. Let's just review the things we talked about today. The strongest lineup of iPods ever. Brand new shuffle, brand new amazing iPod Nano with multi-touch, and an incredible new iPod Touch. Again, beautiful Nanos, fantastic for athletics. iPod Shuffle.

iPod Nano, now so small and compact that it's wearable, instantly wearable without an armband. Just clip and go. And the new iPod Touch, including FaceTime. And not just between iPod Touches, but also between iPhones and iPod Touches. So the strongest lineup of iPods we've ever had to go into this holiday season. And a new iTunes with iTunes Ping, a social network for music.

We think this is going to be really popular very fast because 160 million people can turn it on as soon as they want starting today. And it's on your iPhone and iPod Touch. A lot of other great features in iTunes 10. We think it's going to be a real winner. And iOS. iOS 4.2 with HDR photos, Game Center, and a whole lot more. And Apple TV, again, a phenomenal way to watch Hollywood movies and TV shows in your living room whenever you want, as well as being able to stream content from Netflix, many other places, including your own computer, right onto your TV.

So those are the products we have to launch today. And I hope you're as excited about them as we are. And they're all rolling out, some of them today, most of them next week, and Apple TV within four weeks. Now, we started doing this music stuff for a really simple reason, which is we love music. There's a lot of us at Apple that really love music. And even though we're a little more successful now than when we started, that hasn't changed one bit. And whenever we have our music events, we like to remind ourselves why we do this.

And there's no better way to do that than to ask one of our favorite musical artists to perform. And we did that, and he accepted. This is someone we love. This group has had four albums out so far, and they've sold over 50 million albums worldwide. Yeah. They've won seven Grammy awards to date, and they are in the process of creating their next album, which we eagerly await.

And we asked Chris Martin if he had the time to come out and perform for us at this event, and he very graciously accepted. And so please join me in welcoming Chris Martin. Thank you. This is probably the toughest closing gig we've ever had. I don't have any new products to reveal, and we haven't had nearly as many billions of downloads as you guys. But anyway, I'm very pleased to be here. I wish the rest of the band were here, but it's too lazy.

Anyway, so I'll just play one song, and then if you want another one, another one, we'll just keep going like that until you feel like lunch. All right? Thank you. Thank you. Thank you. Look at the stars, look how they shine for you. And all the things you do, they were all yellow. I came along, I wrote a song for you.

And everything you do, it was called yellow. So then I took my turn, oh what a thing to have done. And it was all yellow. And you're a skin, oh yeah, you're skin and bones. Turned into something beautiful. But you know, you know I love you so.

You know I love you so. OK so far? I swam across, I jumped across for you. Oh what a thing to do. Cause you were all yellow. And I drew a line, I drew a line for you. Oh what a thing to do. And it was all yellow.

And you're a skin, oh yeah, you're skin and bones. Turned into something beautiful. But you know, for you I bleed myself dry. For you I bleed myself and it's true. Look how they shine for you. Look how they shine for you. Look how they shine for you.

Look how they shine for you. Look how they shine for you. Look how they shine, look at the stars. And how they shine for you. And all the things that you do. And all the things that you do. This is a true story.

This song was around for a while, like six months. And our record company and people like that said, this is not a hit single. And they were probably right. But with the weight of Apple, they managed to turn it from a pile of something terrible into our most successful song. So for that, we're very grateful. Thank you. Which proves that your marketing people can sell anything. I used to rule the world Seas would rise when I gave the word Now in the morning I sleep alone Sweep the streets I used to own I used to roll the dice Feel the fear in my enemy's eyes And listen as the crowd would sing Now the old king is dead, long live the king One minute I held the key Next the walls were closed on me And I discovered that my castle stands Upon pillars of salt, pillars of sand And I hear Jerusalem bells a-ringing

Roman cavalry choirs are singing Be my mirror, my sword and shield My missionaries in a foreign field For some reason I can't explain Once they've gone there was never, never an honest word That was when I ruled the world It was a wicked and wild wind Blew down the doors and let me in Shattered windows and the sound of drums And people couldn't believe what I'd become Revolutionaries wait for my head on a silver plate I'm just a puppet on a lonely string Oh, who would ever want to be king?

I hear Jerusalem bells a-ringin', Roman cavalry choirs a-singin', Be my mirror, my sword and shield, my missionaries on a foreign field. And for some reason I can't explain, I know Saint Peter won't call my name, Ever learned all this word, that was when I ruled the world. Like do, do, do, do, do, do, do, do, do, do, do, do, do, do, do, do, do, do, do. Do, do, do, do, do, do, do, do, do, do, do, do, do.

Don't run calvary choirs and sing it. Be my mirror, my sword and shield, my missionaries and a violent field. And for some reason I can't explain, I know Saint Peter won't call my name. Never an honest word. That was when I ruled the world. Thank you. I think that might be the finish, but I'm not entirely sure.

Is Steve around to tell me what to do? Keep going. I'm afraid I've played all the hits, so let's do the misses. And this is a new song that we're working on. It's called the Coldplay 2.6. And this has a lot of features. It features seven different kinds of chord, including a new one that even our closest rivals have no idea about, which Jonathan Ives designed.

It's the chord of I minor. I'm just making this up. It could go either way. Anyway, this is a song called Wedding Bells. It might not even ever come out, so this could be the only time it ever appears. It's the beginning of a story kind of thing that starts sadly, but that's the way these things should be. It could go terribly wrong. Fuck it. We'll start quite quietly. ♪♪♪ ♪ Those wedding bells are ringing up upon that hill.

And I don't want to swallow such a bitter pill. You keep on moving while I stay still. But I always loved you and I always will. Days of no sleeping and kinked in mud. All kinds of poison in my blood. I lost the only thing I ever loved. I heard them ringing and processioning by.

Umbrellas in that clear blue sky. I saw you swimming in that sea of white. Those wedding bells are ringing up upon that hill. And I don't want to swallow such a bitter pill. You keep on moving while I stay still. But I always loved you and I always will. ♪♪♪♪ ♪ I loved you and I see it still.

I always loved you and I always will. Singing oh la la la, la la la la. If everything that went before didn't matter so. La la la la, la la la la. I always loved you and I always will. Good. Thank you, Michael. Good. Thank you, Michael. Well, thank you for coming this morning.

And I hope you're as excited about this stuff as we are. We've got a hands-on area for the press set up. And we'll see you soon. Thank you very much. Thank you. ♪♪♪♪