Steve Jobs on Jaguar and the Digital Hub

Thank you very much. Thank you. Thank you for the very warm welcome. My name is Steve Jobs and I'm the CEO. First off today, thank you for such a warm welcome in Paris.

We are really glad to be here. So first today, I want to give you a brief update on some recent things we've introduced. And then I want to get into the heart of the presentation. So for the update, to start with, first of all, I just wanted to make sure you knew about the new 17 inch iMac. It's got a 17 inch display on it that is extraordinary. It's the same viewing area as a 19 inch cathode ray to display. It's huge. And it's landscape. It has fourteen hundred and forty by nine hundred pixels, which is 64 percent more than the 15 inch iMac. It's like nothing else on the market. So rather than seeing this, you can see this. It's really something. And it's powered graphically by an NVIDIA GeForce for MX graphics chip.

So it's really, really fast graphics. And it has a super drive so that you can burn your own DVDs that play in almost any DVD player built in. Extraordinary product. If you haven't seen one, please go to the booth today and see one. And we sell them in Europe for twenty one ninety nine. That's before taxes. Different governments add different tax rates. But this is what we sell them for before taxes. And I would suggest you take a look at one. It's just a wonderful, wonderful computer. In addition, we introduced the iMac recently and it sells for eleven ninety nine. But we just introduced the second model that has a super drive. This is the lowest cost way to burn DVDs in the entire marketplace.

And so you can make your own DVDs in this iMac and it sells for sixteen ninety nine. And we're constantly trying to drive the price of the super drive lower and lower because burning DVDs is so wonderful. So the new iMac. Next is the iPod. The iPod for us has been a giant hit and we have three models of the iPod now. The five gigabyte, the ten gigabyte and the twenty gigabyte iPod. And so you can have a thousand, two thousand or up to four thousand songs in your pocket on an iPod. And these are the prices we sell them at. These include, I think, French VAT. So, again, lower and lower prices on the iPods.

The two top models come with a carrying case and a remote control and the software is new in them as well. We've included the ability to browse your music by some new ways. So we have artists, albums and songs from before. But now we also have genres and composers. And so for genres, you can browse your music by classical or country or jazz. And if you like classical music, you can browse it by composers instead of just performers, which is a really wonderful way to find your music. In addition, the iPods also store contacts and they now store your calendar data, too. And we'll talk more about that later. So the new iPods are pretty wonderful and they're hitting the shelves now.

We also introduced an iPod for Windows. We felt like our friends on the Windows side of the world were being left out and we wanted to send them some iPods to get them familiar with Apple. So that someday they can see that maybe our products are better than the ones on the Windows side. And we chose MusicMatch as the jukebox to work with. MusicMatch, it's not iTunes, but it's the best one on the Windows side. And so that's the new iPods that we have. And lastly, we introduced some new power Macintoshes recently, the fastest Macs ever made. And they use XServe technology, which is this technology that we use in our servers.

And it's very, very fast. It's dual processor. The processors each have very large L3 caches, very fast architecture, very fast IO through the disk drives, etc. And this XServe architecture is a first for the power Macs. And the key word is dual. Everything about the power Macs is dual. So we have dual optical drives for the first time. You can have two optical drives. They all come with dual display cards. So you can drive up to you can drive two displays all the way up to dual 23 inch cinema displays off one power Mac like this. And, of course, they have dual processors. And the three models are dual 867, dual 1 gigahertz and dual 1.25. And these are the prices.

And they're really, really fast machines. So this is what we have that is new in the systems area. And all of it is at the booth. You can you can go see it. But what I want to spend the rest of my time talking about is software. Often we focus on the hardware and Apple does make the best hardware in our industry. But we also make the best software and software really is the soul of the machine. So I want to spend the rest of the time starting with Jaguar and talking about our operating system and our application software. So Jaguar is the latest release of Mac OS 10. And I think it's fair to say that after after three releases of Mac OS 10, 10.0, 10.1 and now Jaguar Mac OS 10.2, Mac OS 10 has finally arrived.

It's phenomenal. And if you're not running Jaguar, I'd strongly suggest you go out immediately and buy a copy because it's it's like it's it's not it's. It's the best thing we've ever done in software. And I would I would go check it out. So Jaguar has over 150 major new features to it. And I'd like to show you a bunch of them today. Now, we're Unix based. Mac OS 10 is based on Unix industrial strength Unix. And you may not know it, but Apple has become the number one Unix supplier in the world. Bigger than Linux, bigger than Solaris, bigger than anything. Strange, huh?

But true. And we've improved our Unix quite a bit in in Mac OS 10.2. We've added free BSD 4.4, new compiler with GCC three and a bunch of technical stuff that you can you can learn about on the Web site. And I won't cover here. But the Unix is now even better than it was. And I think we have arguably one of the best Unix is in the world now. Very secure, very fast, very powerful. Funny enough, we've also added more support for working in a Windows environment because a lot of our customers connect their Macs into Windows networks with Windows servers. And we've added SMB browsing and Active Directory support.

So you can now go plug in a Mac right into a Windows network and it just works. And it's really great. We've also added VPN support. So if you're on the road and want to access your email, you can do that as well. So a lot better Windows support. We've also improved support for running old Mac OS 9 apps in Classic. This is the environment in Mac OS 10 that will run old Mac OS 9 applications. And it runs them surprisingly fast, in some cases faster than natively on OS 9 itself. Now, we've all had the launch Classic. And it used to take a long time, 18 months ago. It's now really fast. In Jaguar, it launches Classic twice as fast as before.

So it launches on our new PowerMax, as an example, in 8 to 10 seconds. It's very, very fast. We have better compatibility. We have the ability to use USB peripherals now. You can share, you can use the same Internet settings in 10 and in Classic so you don't have to set them up again. And if you use Apple Talk, your portable will wake up much faster. All these things have been improved in Classic, and it's quite good now under Jaguar. So now, let's get into some of the core features. We have a new Finder in Jaguar. It's multi-threaded. It has spring-loaded folders, which was the number one request that we got for the Finder. It has integrated search built right into the Finder. And let me show you some of this stuff now.

I'd like to invite Ken Bereskin, director of Mac OS X product marketing, up on stage. And, Ken? Thanks, Steve. Why don't you give us a demo of the Finder? The improvements to the Finder, in many ways, are the reasons that Jaguar turned out so great, and it is a must-have upgrade for Mac OS. There's dozens of improvements. I'm not going to show them all, but I'm going to show you three of the most impressive new features in this exciting new Finder. Start with the much-requested spring-loaded folders. With spring-loaded folders, I can copy and move any file, any file. folder, any icon on my system, to any other location with a single drag and drop. Let me show you how that works. If I want to take this movie, for example, and move it into a home directory with a movies folder, I can just hover over the hard drive icon, it automatically pops up, go into my users folder.

If I want to copy that to Phil's area, I can just pause and move. If I make a mistake, I can just mouse off, find its destination, let go, and it gets rid of every window along the way, the simplest way to move files from one place to another. And of course, this is all with icon view, a very popular view for managing and using the system. But Mac OS X also includes a great feature called column view. So let me just move this back. Column view is a really popular way to navigate your hard drive where you can access virtually every file and folder in a single window interface. And of course, spring loaded folders works great here as well. So before I'll grab that same movie, and I can take it up to any of these folders. Let's go back to Phil's area here, to my libraries, into my movies, again, a single drag and drop.

It's the easiest way to manage files on multi-gigabyte hard drives. So that's spring loaded folders, again, a really top requested feature. Now for the second feature that I want to show you is the new integrated search. Let me open up this folder on my desktop here. It's a font collection. First of all, notice how fast this window opens. There's over 3,000 items within this expanded folder. And the Finder is completely multi-threaded, giving you really great responsiveness. I'll scroll through here. And if I wanted to find a specific font here, I could probably spend the rest of the keynote. I don't want to do that. So I'm going to expand my Finder toolbar. And notice this great new search field. So if I wanted to find a specific font, like Dedo, I'll just type it in, hit Return.

And that fast, it found those font files out of thousands in that folder. And if I highlight one of them, it will show you a path down at the bottom. So if I want to open up the container, I just double click and it takes me directly to that font file. You can search for anything on any of your connected hard drives or even network servers. Now, we've also significantly improved the desktop picture that you can use for your backdrop. Let me just go into System Preferences. And here's my desktop picture. Of course, you can choose between all of the desktop pictures that we provide. But we've made it really easy as well to access your photographs that you may have stored in your iPhoto album. I can select one of these here.

And of course, you can just click on one of these to make that your desktop, as before. But we have this great new checkbox that allows you to change your desktops dynamically. And I'll just show you the options here. You can change your desktop when you log in or when you wake from sleep. Or you can have it change randomly, every hour, every day. I've set it to every five seconds so that I can scale through these things. And we're using some of the really incredible technologies in the graphics area that Quartz enables by making these transitions really smooth, working perfectly through transparency. So you can enjoy your favorite photographs on your desktop as you work and enjoy using your Mac. So those are three great features of the Finder. It's an awesome, awesome way to enjoy everything you need to do on your computer.

Thank you, Steve. OK. So that's the Finder. Next up is Universal Access. We don't want anyone to get left behind in Mac OS X. And so we've added a ton of new technology to help people that need a little bit of assistance to get full benefit out of Mac OS X. We've got zooming, we've got a screen reader, we've got full keyboard access and visual notification. So Ken, can you give us a brief demo of Universal Access? Sure thing. So in the system preferences application, down here is Universal Access. Different tabs to access those different capabilities that Steve mentioned. A really impressive one is the screen magnification.

And I can enable it by just pressing that push button. There's different options, so you can set the amount that's going to zoom. And now I can use any of these keyboard shortcuts to magnify the screen. So hang on to your chairs. And we zoom in. And everything continues to work. So I can move the mouse, it will pan and zoom. I can choose menu commands. I can move down to the dock and access any of the items there. Very silky smooth because Quartz, again, is this magic technology that allows us to do this, preserving the incredible fidelity of the Aqua user interface. Now static images, like the user interface, really isn't the complete Mac experience, is it? A lot of us enjoy digital video all the time.

So let me close system preferences and open up a QuickTime trailer for an upcoming release of Lord of the Rings. This is a high-resolution, high-bandwidth movie. And 30 frames per second. So that's the universal access technology in Mac OS X. Thank you, Ken. So, again, we can use the underlying technologies in Mac OS X, in this case, Quartz graphics, to go way beyond where we've ever been before in some of these areas.

Another foundation technology in Mac OS X is QuickTime. QuickTime 6 ships inside of Mac OS X. Now, in our industry, our industry is based on open standards, as you know, and here are some of them. In our industry, our industry is based on open standards, as you know, and here are some of them. TCPIP for networking. Almost every network you use now is based on this open standard TCPIP. If we didn't have this, it would be a Tower of Babel, and we wouldn't have the internet today. HTML is a standard that made the World Wide Web possible. MP3 ushered in the digital music age and is still the most popular digital music format by far. Again, an open standard. And MPEG-2 is a video compression standard that's in every DVD player and on every DVD and made the DVD possible.

The next one of these big open standards is called MPEG-4. It's brought to us by the same people that did MPEG-2 that's inside our DVD players and made that possible. And MPEG-4 allows us to stream video over the internet with an open standard. It provides the highest quality out there, and yet provides for very low bandwidth streaming. And everybody is jumping on this standard except for Microsoft, who is proposing their own proprietary standard, which isn't as good. And so we'll see which one wins in the marketplace, but if history is any indication, the open standards will win. The open standard for audio is called AAC. It's the finest quality audio codec available, the finest one ever invented to our knowledge.

And we're using that as well. That is the MPEG-4 audio standard. In addition to that, we've added instant on streaming. We're the first folks to ship instant on streaming, and that's built into QuickTime as well. I'd like to invite Frank Casanova, our director of QuickTime marketing up, to give us a demo of QuickTime 6. Frank, welcome. Thanks, Steve. Hey, guys. So we started shipping QuickTime 6 about six weeks ago. Thus far, we've distributed nearly 20 million copies of the player. That's an awful lot of QuickTime in a very short period of time. I mean, what's driving this incredible demand? Our support for MPEG-4.

It's the industry's demands for streaming architecture based on open standards. That standard, MPEG-4, the industry's highest quality streaming architecture. QuickTime was the first product to embrace MPEG-4 at its core. As a matter of fact, the whole standard of MPEG-4 is based on the QuickTime file format, making QuickTime and the Macintosh the industry's best and finest content creation and playback environment. How about a few demos? I see there's a machine here. What do you say we take a look at a couple of audio demos? AAC, as Steve said, is the new audio codec inside of MPEG-4. It's better than MP3. It's better than Windows Media Audio.

It's the best audio codec around. What I have here are two files. This top file is an audio file we took right from a CD that we bought, uncompressed CD quality sound. The bottom file is that same audio file, but this time encoded using AAC. It's ten times smaller than the uncompressed file. What I'm going to do is play them both at the same time, and as I click between them, for example, I click on the top, you see the buttons light up. That's the one playing through the house system. When I click on the bottom one, it lights up. That's the one playing through the house system. We'll listen in and let's check out this comparison of uncompressed CD quality sound with AAC. How are you doing, everybody?

Hello. Incredible quality. So how about video? What do you say we take a look at a comparison? Here in the top left corner of the screen, we have the gold standard in video, MPEG-2. This music video is encoded at 6 megabits per second. What I'm going to launch now is MPEG-4 video encoded, the same video but at 2 megabits per second, one-third the data rate. I mean, what better way to show off MPEG-4 than to compare it to its big brother, MPEG-2.

So what I'm going to do is start them both, play them at the same time, and you can see the comparison. It's MPEG-4 video.

Now, of course, not all of us can get access to 2 megabits of bandwidth. So MPEG-4 brings us scalability, something MPEG-1 and MPEG-2 couldn't do. But MPEG-4, the next in the line, scales from modem rates all the way up to and beyond broadband rates. So let's take a look at that same video, but this time encoded at 770 kilobits, accessible by many systems, cable modem and DSL. You get the idea.

Okay, for my last demo, I want to show you one new feature we added to QuickTime 6. You're the first people to distribute this, and it's in every copy of QuickTime 6. It's instant on streaming. Steve mentioned earlier, it's a technology that eliminates the annoying buffering that you get from accessing Internet video. And what's going to happen is I'm going to interact with a piece of content that will appear to be local on this computer, but it's not. It's somewhere else on the network, on a server. So when I select this video, there'll be no buffering. It will just start up like this. Thanks a lot.

So we think QuickTime 6 is really landmark multimedia technology built in Jaguar. Next is an amazing app called Sherlock 3. Now if you've used Sherlock before, this is nothing like it. It's a complete redefinition of Sherlock. And it evolves Sherlock's channels into Internet services. Now what are Internet services? Internet services are using data from the Internet, in some cases various places on the Internet, to do things for us so that we don't have to sit at a browser and constantly wait for this thing and go to 58 sites on the Internet to get something done. But most of the Internet services today are, that people are talking about, are business to business.

And we wanted to do something for all of us. We wanted to do some Internet services for the rest of us. And that's what Sherlock 3 is about. So let me just show you and I think you'll understand. So this is Sherlock 3. And Sherlock 3 has a bunch of new channels to it. Now these channels were initially done just for the U.S. But we're starting to localize some of them and I will show you some of that today. So the first channel I'm going to go to is stocks up here. And we've actually got this working with the French stock market. We'll be releasing this shortly. But let me just show you. I put in some stocks here. And Sherlock automatically goes out and checks the prices every few minutes.

And gives me the prices and the volumes and the changes. And I can pick any old stock I want. And I can see it on a weekly basis or a daily basis or a yearly basis here. I can also, let's just type in a stock. One I have fun following is Vivendi. And so it just asks me to add that. And it's adding it down here and it's getting all the data. You know when you have a web browser and you have to get up your web browser and go to the stock site and then hit refresh, right? It's a pain. This does all of that for you. So whenever you go to the stock channel, it has the latest stock prices and you don't waste your time. So here's Vivendi here. They're having a little trouble today. But you can just pick some of these.

Let me show you another Sherlock channel by the way. Let me just copy some of this text and I'll go to another channel which is translation. And I'll paste it in. I have it set to translate from French to English. It's not perfect but you can see a little bit what you can do here. So again, back to the stocks. As you can see, let's take Vivendi. I have all my news stories right here as well. And I can read them here or just double click and open a browser if I want to go to the original source. So all of this in one place. It's very nice. Now another channel which unfortunately we do not have working in Paris yet is our movies channel.

So I'm going to use it from Cupertino which is Apple's headquarters. And I type in my zip code in Cupertino and Sherlock 3 automatically goes out and finds all the movie theaters around Cupertino and all the movies that are being played. And so I can just simply pick a movie here. Let's say I want to pick Minority Report. And it will show me the theaters it's playing at. And I can just pick a theater here. And I can see the movie times and I can pick a movie time as an example. I see a poster of the movie. In some cases I can even see directions to the movie theater. And I can watch a quick time trailer of the movie right here.

You get the idea. And I get a little synopsis of the story right here as well. I can also do it by theaters. These are all the theaters in my area. And if I say, well, I really want to go to this theater, I can see which movies are playing and then pick a movie and see the times that that movie is playing. So very, very handy when you want to go see movies. Now a lot of people spend a lot of time on eBay, right? I bet some are in this audience right now. We've added an eBay channel. And this is also working with French eBay. So I can search for anything I want. Let's try a Ferraris here. And I can set a price. I'm going to say price over $1,000 or 1,000 euros actually.

And we'll go ahead and search. And it's searching eBay France for anything with Ferraris over $1,000. And so I can see right here what's being sold. There was a car there. Some tires. You know, you get the idea. We have no idea what's going to pop up here. No picture on that one. No picture. Well, you get the idea. Okay. Now, we also have a way to search for pictures on the Internet. I can type in, let's say, Eiffel here.

And we will go out and search the Internet and it will just give me pictures of the Eiffel Tower. So that comes in handy. And this last one, this last one is Yellow Pages. Again, we don't have this localized for France yet, but we're working on it. But this is localized for Apple's headquarters. Let's say I type in the zip code here, anywhere in the U.S. And let's say I'm getting hungry. It's late at night and I want to go out to dinner. I can type in sushi, let's say, and it will go find everything having to do with sushi in the Yellow Pages. And they're all the sushi restaurants here, sorted by distance from where I am. And I can pick on any of them. And as you see, I have directions and a map, which I can zoom into if I want or zoom out of, whichever I'd like.

And here's all the sushi restaurants nearby me. Very simple. So that gives you a feeling for Sherlock 3. OK. Internet services for the rest of us. Things that are relevant to our daily lives in a way that's far more efficient than using a Web browser to get all this information from several sites and bring it together. Sherlock 3. Next is a technology we built in called InkWell. And InkWell is handwriting recognition, but it's not a separate application.

It's integrated right into the text system in the operating system. So anything you use, any application you use that uses text can use InkWell. You can write in any application without training and without modification to the application. So check this out. We have it in our booth. Go try it. And it's really, really good. Next up is another technology that we've built into the system. This is maybe one of the most profound things that we've built into Mac OS X Jaguar. And it's called Rendezvous. It's a technology that will automatically discover other devices on IP networks without any configuration.

Now, remember AppleTalk, right? It was plug and play. You just plugged it in and everything figured itself out. Well, that's not true with IP networks, right? The world's gone IP, but it forgot ease of use. It forgot ease of configuration. And so have you hooked up a network printer lately, right? You hook up a network printer, you spend half an hour configuring the network printer. This is crazy. We have computers to do this for us. And that's what Rendezvous does. It allows these devices to discover each other and talk to each other so they can self-configure over the network. And they can start to do things way beyond that.

And it works over any IP network including 802.11. So it works over airport networks as well. And again, zero configuration. So let me give you a demo of this so you understand. What I'm going to do is I have a demonstration version of iTunes here. And this is not available yet. We will have this available in the first half of next year with Rendezvous in it. But this is iTunes 3. And if you haven't seen iTunes 3, it's fantastic. It has a way to rate your songs here. So I can take a song and give it from one to five stars. It has play counts that counts the number of songs. And of course, you know, I can go play any song I want to.

Let's, you know, very simple. Okay. So I'm going to ask Ken Bereskin to join me again. Now, let's say that this is my Macintosh and it's in my study, in my den, and I'm working on it. And I want to share music with my son, Ken. Hi, Steve. And Ken, so I have my music in my computer that I've taken from my CDs, put in my computer. And Ken has his music. And I want to listen to some of his music. What do we do now?

It's difficult. Well, Ken's going to walk in and he's going to open his portable, which is on AirPort. And these computers are going to start communicating all automatically. And watch what happens in a few seconds. Ken's library shows up in my iTunes. And I can now go in. I can look at his library here if I want to. I can play music. Now, when I'm playing this music here, it's not copying the music. It's streaming the music over AirPort from his iTunes to my iTunes here. Can we turn the music up, please?

Now, what happens if Ken shuts his iBook? He's going to leave. Look at what happens. Goes away. Go ahead and come back, Ken. Open your iBook, or PowerBook, excuse me. And Ken opens his PowerBook. And again, in a few seconds, the music is back. And this is rendezvous in action. Nothing to configure. Nothing to do. Very, very sweet. And when Ken leaves, he takes the music with him. Very simple. So, what you saw here was these two computers automatically discovering each other over an IP network, which was AirPort, with zero configuration, and allowing the iTunes programs to take over and communicate with each other and do their thing.

And you're going to see more and more of that kind of stuff starting, I think, early next year. Now, one area that I mentioned that this is particularly helpful in is printers, because network printers are just a nightmare to configure. And we announced recently that Epson, Hewlett-Packard, and Lexmark have all adopted Rendezvous, and they're all building it into their network printers. And so we should see some of the fruits of this by early next year. And this is great. Today, we're thrilled to announce that both Canon and Xerox are joining Epson, HP, and Lexmark in building Rendezvous into their network printers.

And so we now have every major printer vendor has adopted Rendezvous. We are making this freely available. It is an open standard. No one owns this, because we don't think anyone should own the networking standard like this. Just like no one owns TCP IP. So we're making it freely available to everyone, and everyone's jumping on board. And so we have printers now. So what you've seen now is we have printers that will self-configure, and we have computers that will discover each other and talk to each other like we saw in iTunes. But there's all sorts of other devices that we'd like to use this with. As an example, I have all my music on my computer now.

But I'd like to listen to it on my stereo system in the living room. Do I run a long cable? How does this work? I have my photos in iPhoto, and I can watch fantastic slideshows on the screen of my computer. But I'd like to watch my slideshows on my big screen television. How do I do that? So we don't just want computers, and we don't just want printers. We want consumer electronics devices as well to adopt Rendezvous. And I am thrilled today to tell you that a major announcement is being made by Philips. Philips is going to be adopting Rendezvous. I recently met with Gerald Kleisterle, and he's delightful, by the way, and they understand Rendezvous instantly and made decisions to build it into their consumer products because they were looking for exactly the same thing that this technology offered.

And unfortunately, Gerald could not be here today, but I asked him to make a videotape. So could we run the tape, please? Steve, thanks very much for inviting me to address the Apple Expo. To all of you, a warm welcome. I want to tell you a bit about Philips' long-standing relationship with Apple. It has been our pleasure to supply TFT LCD displays for the Apple product family. And Steve, let me tell you, your company is the best. has done more to make LCD flat displays the dominant platform for the industry than anyone else. Philips is also a leading chip supplier for the Apple Airport, another great product that leads the computing environment for wireless connectivity.

However, Apple and Philips have much more than this in common. We share a vision of the future. We both support the concept of digital hubs and digital homes that will allow consumers to access their appliances and content anywhere at any time. Apple's new technology, Rendezvous, will help to realize this dream. We at Philips are particularly pleased that Apple has adopted an open standard and architecture for Rendezvous. Now, continuing to build our relationship further, we will support Rendezvous and its interoperability features into future Philips products. I hope that you all enjoy the Apple Expo event and that we come away with more ideas to improve our lives through technology that makes life simple.

Thank you. So we think this is going to be great, and we're hoping that next year some products from Apple and some products from Philips, you can just plug them in in different parts of your home and they just work seamlessly together with zero configuration because that's what Rendezvous is all about. Okay, next up is mail. We've made some major enhancements to mail for Mac OS X version 10.2. We've got all mailbox searching, which was a very highly requested feature. We've got much more sophisticated rules. We have a much better way of dealing with multiple email accounts. So if you have multiple email accounts, you can merge your inboxes automatically and things like that.

But the most important feature we've added is what we call junk mail. We all get a lot of junk mail. And we've built in a technology in the Mac OS X mail called Adaptive Latent Semantic Analysis. Now, what is this? I don't know, but it works. And basically, it goes through all this junk mail and it's very accurate in figuring out what is junk. And it will take it and put it into a junk mail box for you. And it's very clever how it works. And let me show that to you now. So let me launch mail. And I'll hide the dock here.

Now, in our junk mail, this is my mailbox here, and I got a lot of junk in here. So, you know, things like this, a lot of junk mail. You know what it's like. Now, in mail, we have an item in the menu called junk mail. And we have training and automatic and off. We ship it with training mode on. And in training mode, mail goes through your mail in your inbox and figures out what it thinks is junk. And it makes it brown. And look at all this junk I have. Mostly junk. Now, if something is junk but it didn't catch it, you train it by simply saying, this is junk. Or if it labels something as junk that isn't junk, you say, no, this is not junk.

And you train it for a week or two. And it gets better and better and better at finding junk. And when you think it's fully trained, you can go over here into automatic and say, over here into the menu and turn on automatic. And it asks you whether you want to move all of the mail that it thinks is junk into a special mailbox. And you say yes. And, boom, it leaves you with just the mail that you want to see. And it's very, very nice. So, that's a quick demo of junk mail. I've used it now for a few months and it's terrific. It's the best thing I've seen out there to keep the junk away.

And you can start off in training mode to convince yourself that it works. And when you're convinced, just go into automatic mode and you'll never see that junk mail again. So, that's the biggest new feature for mail. Next one up is Address Book. Address Book's been completely rewritten for Mac OS X. It's a system-wide database of people, everything about people. And so, there's an application, of course, and it looks like this. And it has hierarchy to it. It works with LDAP servers and everything else out there as well. And let me give you a quick demo of it now. Okay.

This is Address Book right here. And, again, there's an expanded view right here so we can look at groups of people if we want to. And, you know, here's my bowling team with Phil and Avi. Here's doctors. Here's the executive team of Apple. And I can look at people's cards like this. But mostly I use it like this. And I can find people very quickly. So I can find Phil. Just boom. And there's four Phils in there. Right? Phil Schiller. I can find Ken Bereskin. Boom. There's Ken Bereskin. And as you notice, it's got fields for everything right here, including notes down below. And I can edit these fields very easily. I can just tab around them and enter new data or refined data very, very easily.

Now, let me show you a really cool feature of this. So I'm going to use Ken Bereskin here. And I'm going to go to his address right here. And you notice the rollover. I push down, and there's some services. So I can get a map. And it will launch a browser and pull up a map and show me where Ken works. Along with an ad. And there it is. There's a map to Apple in Cupertino. Another thing I can do is I can go, as an example, to here, to his work email address, and rollover this and send an email. And it pops up and populates mail right here. And as you can see here, I can do some other things, too.

I can visit his home page. I can open his public part of his iDisc, or I can open an iChat right off this. It's very, very nice. I can also, let's say I have to fax him, and the fax machine's across the room, I can bring up large types so I can see it across the room, which is kind of nice. Now, as you know, we've built in support for Bluetooth into Jaguar as well. And so you can plug a USB dongle into your USB port and have Bluetooth on your Mac. And what that means is that if you have a Bluetooth phone, like I do right here, you can do some pretty cool stuff. So I'm going to go to Ken's mobile phone right here, and I'm going to dial it.

And that's going to send this information, this phone number, to my phone, and it's automatically going to dial Ken, which, if it works, his phone should ring in a second. There we go. Hi, Steve. Hi, Ken, how are you doing? Doing great, thanks. Okay. Awesome demo. So now that's pretty cool, but there's something even cooler, which is if Ken calls me, what's going to happen is it's going to look up his number, the caller ID number, in the address book and alert me to the call. So there it is right now. I have an incoming phone call. It says it's Ken Boreskin. I can give him an SMS reply, send him to voicemail, or I can go ahead and answer the phone like I just did.

Hello, Ken. Hey, Steve. Good job. Okay. So that is the address book. Very, very clean, very, very simple. But it's not just an application. It's an underlying database for the whole system. So Mail uses the address book, and iChat uses the address book. And as all these apps begin to use it, if you change something in one place, you've updated it everywhere, which is really, really great. So that's address book. Next up is iChat. We have added instant messaging built right into Mac OS X. It is AIM compatible, and so there are over 140 million people in this instant messaging community.

It is the biggest community in the world. You can use an AOL screen name, or you can use a Mac.com name as well to access iChat. And in addition to your normal buddy list, we're using rendezvous in iChat. So if you're in a meeting with your portable, let's say, it will find all of the other iChat computers in the area and build a custom buddy list to show you who in your local area is online, just on the fly. You never have to populate this buddy list. It's automatically populated with all of the other instant messaging people in your immediate vicinity. So let me give you a demo of this. So, here's my buddy list right here, and I'm going to go ahead and add somebody to it to show you how easy it is to add your buddy list.

Just push this plus sign down here. And I'm going to add, oh, let's say I could add, you know, John Rubenstein. I think I'm going to add Nancy Heinen. And all I do is say, select the buddy. And you can see people going online and offline. They just swap around like this. It's very, very simple. And then somebody might send me a message. Well, here it is. Here's Fred saying, where's dinner tonight? And I just click on it to expand it. And I can just say, wherever you want. And you can see how easy it is to follow message threads now.

Too rich for me. So, now Fred is going to do something. What he's going to do is he's going to send me something with a URL in it. And you can do that in iChat. Well, how about LaMarie's? Here's the menu. And I just literally can click on that menu and go to a browser and, you know, see the menu here. And so I can say, you know, looks great.

Now, this is all wonderful. But there's another kind of buddy list that we can build, as I told you. And that is a rendezvous buddy list. Now, this is not a buddy list that I have to put people into. It's a buddy list that's automatically built by all of the instant messaging clients that rendezvous can find in the immediate vicinity. And it's found Ken over there. Ken's got a computer on airport, and it's found him. And so, you know, Steve, can I come along to dinner tonight? Well, I'll just message Ken here. And I'll say, sure, please join us.

Now, Ken is sending me a file. And he can send me a file just by dragging it into iChat. And so I can click on this thing. And he's saying, oh, I can save it actually to my desktop. I'm sorry. And he sent me this file. He'd like to go here after dinner. Let me show you how you actually do that. It's very, very simple. I'm going to go to the address book. And I'm going to look up the restaurant we're going to. I'm just going to type in Maurice. And here's La Maurice. And I'm going to go to its address, and I'm going to get a map right here. And here's the map of where it is. And all I have to do to send this to Ken is literally drag it and drop it on Ken right here.

And it is sending that now to Ken just like he sent the image to me. This is all it takes to send things back and forth across iChat beyond messages. And it's very, very nice. Okay, well, that is iChat. So we've got these awesome apps built into Mac OS X. Mail, iChat, brand new address book, Inkwell, QuickTime 6, Universal Access, a new Finder, Sherlock 3, and Rendezvous to name just nine of them.

These are interesting because the top row is really about communicating with people, isn't it? The middle row are fundamental system technologies that I can use anywhere in the system. And the bottom row is about finding things in your file system, finding things on the Internet, and finding things on IP networks. And these are a broad range of things that are all built in to Mac OS X version 10.2. And this sells for just 139 euros before taxes. So you can get basically a whole new Mac for 139 euros. It's a good deal.

That's what it looks like in the store. You saw I rendered the fur for the X. It's very nice. And that's about Jaguar. So, how are we doing on Mac OS X in general? We're doing well. Let me show you. We have right now over 3 million active users of Mac OS X. And you can see the slope of the curve. And we are right on our plan to have about 5 million active users of Mac OS X by the end of this calendar year. And that's going to be amazing because that is 20% of our entire installed base in 24 months, making it one of the fastest OS transitions in history.

And you can see the slope of that curve. Now, because of this success, we are going to take the next big step in the OS X transition. And let me explain that to you. Since January, when you bought a Mac, it was factory set to boot into Mac OS X. We also ship classic so that you can run all your Mac OS 9 apps from within Mac OS X. But we also allow these machines to boot into OS 9. Now, it turns out that this takes an awful lot of energy to support two completely different operating systems in terms of allowing the machines to boot on OS 9 and OS X.

It takes a lot of our energy. Whenever we get a new graphics card or anything else that requires a driver, we have to write two drivers, one for 9, one for 10. It takes our third-party developers a lot of energy because they have to now test things against OS 9 and OS X. And so, very shortly, we are going to remove the ability to boot into Mac OS 9 and have all of our systems boot into 10 and run classic. And we are going to start that in 2003. And so, all the new models of Macs that we introduce, including faster versions of the current models, after January 1st, will only boot into Mac OS X.

Now, that's four months from now. So, let's get ready. However, you will still have classic. You can still run almost all of your Mac OS 9 apps in classic. Classic will still be there as part of Mac OS X. So, starting in January, the machines will only boot into Mac OS X, taking the next big step in the transition to Mac OS X. So, now I'd like to switch gears from the operating system and start to talk about some of the applications that run on top of it. We're doing really well there, too. Let me show you.

We've got, right now, about 4,000 native Mac OS X applications. And again, look at the slope of that curve. And we expect to easily hit our plan of 5,000 native apps by the end of this calendar year. There's a lot of apps, and I wanted to show you a few, and I decided to focus today on just 3D apps. 3D apps is an area where Mac OS X is really exploding. And because of its OpenGL, and because of its Unix underneath, and because of its great user interface and performance, we're seeing an explosion in 3D apps, from companies like Alias Wavefront, Eon, At Last Software, Maxon, and Aspire.

And we'd like to show you some of this stuff today, and I've invited Richard Karras, our Director of Developer Technologies, to give us a demo of these things. Richard, the floor is yours. Thanks, Steve. Mac OS X, with Jaguar, combines OpenGL, Quartz Extreme, and QuickTime to provide the most advanced graphic architecture ever available on a desktop operating system. And our developers are really excited about this and doing some great stuff. So let me show you a few of these things. First up is a company called Eon Software and a product called View Dispree. And what I can do with this product is start creating environments, and these environments can be used for games, they can be used for feature films, they can be used for graphic design.

And what I'm doing here is just adding some trees into this environment. And you see here, I'll just move them down so you can see them there. Now, one of the cool things that they have is this terrain editor. And this terrain editor allows me to go in and interactively just start changing the terrain. changing and manipulating this island that I'm gonna create. And this could be a lunar landscape, this could be a canyon, you can see all different things. And one of the great things they did on the Mac is that they took advantage of the velocity engine. So this is faster on the Mac than any other platform. So once I say yes to this, we see it here, and I'm just gonna go ahead and lower that down a little bit I'm gonna add some water and we'll go to full screen and I'll just tell it to start rendering. So in under a minute, I've created a 3D scene. Now this also supports QuickTime.

So I'm gonna show you an example of what can be done with this, with this QuickTime that they provided us. So here you see an entire environment. Notice the clouds are moving, the mountains, everything's happening. This is all done with an application that costs 250 euros. Okay, it's available here at the show, they're doing a show special for 200. It's a local developer, so I think you should all support them and buy a copy. Thank you. Next up a company called Atlas with SketchUp, and this is an incredible product because they approach 3D different than anyone ever has. Their whole view is you can just go in and start drawing in 3D. And what I'm gonna do here is use some predefined shapes and go in and everything being in 3D allows me to just go in and start manipulating things.

I don't have to know anything about 3D, but once I've got these here, I can just start growing them, okay? And so there, I've got this. We'll come in a little bit. And one of the really cool things is it allows me to do things like push and pull on the 3D. So I'll select this again. And there I've created a roof, okay? Pretty neat. I can look at it through hidden line removal. I can look at it in full view with drop shadows, things like that. And it also has a lot of things built in. So I can do some animated fly-throughs and stuff like that. So here's an example with a little bit more time spent. They provide libraries of windows and doors and the characters and things like that. But I can start doing things like looking at it animated.

I could do fly-throughs. And I can come back out, look at it like this. And one of the really neat features I like about this product is that I can also take a look at what it's gonna look like throughout the day, okay? So I can see it from morning to night at different times of the year. And of course, different locations. So we'll come in here. And here's how it would look if we were building it right outside, okay? So, and this is a product that's 250 euros and it's available now. And this is great. I mean, you just, you can have so much fun with this. So those are two new applications to the platform.

What about some traditional applications? Well, this is a great product by a company called Maxon and it's called Cinema 4D. And here at the show, they're showing release eight, the Jaguar release. The great thing about the Jaguar release is automatically they got a 25% speed improvement across the board, okay? And a lot of people are using this from students to broadcasters. And here we have some example from Foundation Imaging of the intro piece that was done for Spider-Man, okay? So this is a product that's already being used in feature films. It's been available on the Mac for a while, now taking advantage of the stuff that Jaguar provides. And let me show you the finished piece of this. This product is $600 or 600 euros. And what I love to tell you is that the price of the software and the hardware combined was less than the price of the ticket for me to come here and tell you about it.

Isn't that cool? So what about the big guys? What about Maya? Well, a year ago, Maya launched on this platform. And in that short period of time, they've already become 25% of the business have Maya on Macintosh. And here at the show, they're showing Maya 4.5. Now, Maya is the most advanced animation system on the planet. You've seen it used in Jurassic Park, Star Wars, Lord of the Rings. It really pushes the envelope on what you can do. It's big. It provides an incredible amount of resources and tools. It's an open thing. So a lot of people have written plugins for it, things like that. And what I can do here is this is an animated character provided to us from Eric Walkman of Cartoon Network. And let me just show you, I've been playing with this earlier and I've got some key frames in here.

This rigged character allows me to basically manipulate it like a puppet. And that's just one of the things that I can do with Maya. But again, I wanna show you the finished piece. And we thank the Cartoon Network for giving us this one. Used in production. And we're really, really pleased with this product. So that's some of the tools, but what about some of the fun? Well, because of the graphic architecture in Mac OS X, we're seeing a lot of the game developers start to bring out their games. And one big game that's coming out next month is from Aspyr and it's Star Wars Jedi Knight 2.

And there's a lot of this stuff that's going on with 3D. There's a lot more stuff happening. It's a really fun time to be in 3D on Mac OS X with Jaguar. Thanks very much. Thank you. Thank you, Richard. So we're on our goal to reach 5,000 native Mac OS X apps by the end of this calendar year. So now I wanna tell you about two new applications coming out from Apple between now and the end of this year. And the first one is called iCal.

It's a calendar system for Mac. We've needed a great calendar system that's super easy to use. And iCal is that. But it's more because our key insight in iCal was that modern life isn't about one calendar. It's too complicated. Modern life fills multiple calendars. And in order to manage your life, you need to see them all at once. And that's what we need to do. We usually spread them all out or we usually have several windows open. We need to see these calendars in one window. We need to be able to say I have my work calendar, my personal calendar, whatever you've got, kids maybe, Apple Expo in my case. And when you check on these calendars, you need to be able to see them. There's my work calendar, there's my personal calendar, my kids calendar, my Apple Expo calendar.

And you see where there's conflicts, see everything that I've committed to do in my life. But beyond this, wouldn't it be cool if we could share these calendars? And what better place to share them than over the internet? So we've built in some technology to allow us to share these calendars over the internet. And we use a publish and subscribe metaphor. So you can publish your calendars and other people can subscribe to them. And they can automatically be updated over the internet. So for publishing a calendar, let me show you what it's like. Here's my calendars. I wanna publish my work calendar here. I pick a menu command that says publish and I get a simple panel.

It says, do you wanna publish changes automatically so that every time I make a change, it's automatically published to the server? Yes. And I can publish them in two places. I can publish them on any WebDAV server, which is pretty much any web server now. Or I can publish them on .Mac. We will host them for you if you're a subscriber to .Mac. And you literally push one button that says publish. You get a panel confirming that it's published with the URL that it's at. And if you are on a WebDAV server, other people can go to that URL and subscribe to your calendar. If you're on a .Mac server, they can subscribe to it, but they can also go to it from a web browser on any computer anywhere in the world and .Mac will serve up a version of your calendar in a web browser.

So anyone with permission can go see it. Now, how do you subscribe to these calendars? It's very simple. Let's say that Pascal, who runs Apple Europe, sends me an email, says, here's the schedule for football matches. Let's go see. I simply click on the URL and I get a panel that pops up. And it says, you wanna subscribe to this calendar? Great. How often do you wanna look to see if it's changed? And I can choose every 15 minutes, every hour, every day, every week, right? Or never. So I'll pick every day. And when I subscribe to that calendar, it automatically adds it to my list of calendars. And now I can see it and I can turn on the rest of my calendars and see what that's like. Make sense? So let me show this to you now.

It's really cool. So I will go to iCal and here, here's my work calendar, it's easy to add events in iCal. I just add an event, drag it all around wherever I want to. I can even add events and say I'm going to work out from 8 to 8.30 and I can say I want to do that weekly, you know, Monday, Wednesday and Friday. Again, very, very easy to do. And I can turn on my other calendars. Again, I can move these things around wherever I want to. Turn on my other calendars and as you see, when I turn on that one, I have an overlap here.

So it shows an overlap by making the calendar slightly smaller so that I can see the overlap and again, I can see either set on top, Kids and Apple Expo. And again, very easy to see where you have conflicts so that you can resolve them, which is great. Now, let me go ahead and publish a calendar. So I'm going to turn these off. I'm just going to publish my work calendar and I go up into, excuse me, go into calendar menu and I select publish and I get a panel. Publish my work calendar. I want to publish changes automatically and I'll publish on .Mac and all I have to do is push this button. Boom. My calendar has been published.

And I can go there. Well, first of all, I can send mail to people just by pushing this button and it pops up a mail message with all the information of how to view my calendar or subscribe it. And I can send this to anybody I want. Let me go back and publish this again. Oops. It's already published. I have to unpublish it. And I will publish it again. Boom. And now I can go visit that page if I want to. This is what it will look like if anybody with a web browser goes to visit that page. Well, that's pretty cool, but I don't want to have to, you know, if I'm an iCal user, I don't want to have to go get a web browser out to see your calendar. I want to subscribe to it and see it with the rest of my calendars.

And so how do I do that? Well, to subscribe to a calendar, what I can do is I can get a mail message here. Let's say I get a mail message from Mary. And let's say this comes from my kid's school. And here's the homework and quiz schedules for September. All I do is click on this URL and I get a panel from iCal. And I get to decide I want to refresh this every, let's say I want to refresh it once a day. And I hit subscribe. And now this calendar is added to my calendars. And so I can turn the rest of them on and you can see what it's like. Right? And I've got these calendars in with the rest of them. Oh, wait a minute.

Sina has just sent me an instant message. Steve, want to catch a football game while you're in town? Well, that's pretty cool. And I say, sure. When are they? And now Sina can basically send me the URL. Here's the calendar. And I click on it and guess what? I can subscribe to this calendar right from iChat. And I say subscribe and boom, there's the schedule of football games in Paris this week. Pretty cool, huh? And again, I can see where my conflicts are. Right?

And why I can't go to those football games. So, that is iCal. Now, again, modern life requires multiple calendars. And you've got to see all the calendars that make up your life if you want to manage your life. And that's what iCal lets you do. But it goes beyond that and lets you share these calendars over the Internet. With simple, you know, publish, subscribe. And here's what happens when you publish. And here's how easy it is to subscribe to calendars. And they're automatically updated when they change. Add them to your calendar list. It's that simple. iCal runs only on Mac OS X version 10.2.

So, you have to be running Jaguar to use iCal. We are shipping iCal today. So, those of you out there with portables with AirPort can be the first in the audience to try it. And it is a free download. It is free at apple.com starting now. And that's iCal. Now, I want to tell you about an equally remarkable app that we're getting ready to ship.

First, I want to zoom out and just talk about the digital hub for a minute. As you recall, in January of 2001, we announced our digital hub strategy. And that was our belief that the personal computer will become the center or digital hub of our new digital lifestyle. We think this is the next great age of personal computing. And what do we mean by digital lifestyle? Well, we've got some amazing digital devices now. Digital camcorders that you can hold in your hand that have phenomenal quality. DVD players are exploding. They're everywhere now. We have portable music players.

Portable digital music players. And digital cameras are exploding as well. They take phenomenal pictures at no cost for film and no time for development. And so we see these devices having the Mac at their center. But in order to make that happen, we have to write amazing applications to enhance the value of these devices. And we've done just that with iMovie and iTunes and iDVD and most recently iPhoto. And so the digital camcorder is dramatically enhanced by iMovie. Digital music players depend on iTunes for their auto-synchronization. With DVD players, with iDVD, we can write and burn our own DVDs that we can send and play in almost any DVD player.

And for digital cameras, we have iPhoto, which is a remarkable new app and one that I would like to just focus on for a minute. iPhoto's mission is to replace all of the organization that we had with film photography. This was the organization we had, a shoebox. iPhoto, think of it as a digital shoebox on steroids. It helps you to manage your photography collection, and it's so easy to use. It's so easy to import photos from the camera, edit them, crop them, and to print them. But also to save them securely, to organize them, and to share them in all new ways.

So you can print them out on your printer. You can order prints over the Internet. You can have fantastic slideshows. It's really great. iPhoto's been a landmark application. I'm pleased to say that since this January when we announced it, over 5 million copies have been distributed. So a lot of Mac users are using iPhoto. So that's iPhoto. Another one I'd like to focus on just for a second is iTunes. iTunes is, again, a remarkable application. And it plus the iPod were responsible in part for us winning a Grammy earlier this year. We were the only computer company to ever win such an award, and we're very honored and proud.

We recently introduced iTunes 3, which has a lot of advances in it. First of all, as I mentioned, it allows you to rate your music, and it keeps track of your play counts. It also has a feature called Sound Check, which keeps all your songs playing at the same volume level, so they don't go low to loud to low. And it supports Audible.com for spoken words. Now, Audible is only in English right now, but they are very much looking to get into foreign markets, and we're pushing them towards France as fast as we can. So hopefully there will be some French content soon on Audible.com. And the biggest feature, smart playlists. This is where you can define rules for a playlist, and rather than you putting the songs in the playlist, the computer puts them in the playlist.

So you can say, I want a playlist that has these rules. The year is in the 90s, from 1990 to 1999. So it's a song from the 90s. I've played it more than 20 times, and I've rated it four or five songs. Take that collection and give me 50 of those at random, and that's what I want in this playlist. Pretty cool, huh? It's amazing what you can dream up. You could make a playlist that says, I want songs I've never listened to once out of my library, and I want up to a gigabyte of them in this playlist, because I'm going to put it on my iPod for my airplane trip. Right? All sorts of things you can do with smart playlists. So iTunes, we have, I'm pleased to report, we have distributed 16 million copies of iTunes.

So this is our digital hub strategy, and it's working thanks to these great applications that we've written. And we can talk to all the coolest devices out there, but we've recently added a few more. And the ones we've added are the cell phone and officially, the Palm. We've also said we have this great portable device in the iPod, and we can do even more with it. You remember that we can view contacts and calendars on our iPods, too. And so these three devices are the targets for a new application we've written called iSync to synchronize data to these devices. The purpose of iSync is to synchronize our digital lives.

What do we mean by that? Well, we've got a great address book, which has all the information of our contacts in it, and we've now got iCal, which has our calendars in it. And that's great when we're on our Mac, but what about when we're not? We want to synchronize the information in the address book and in iCal with our iPods, our cell phones, and our Palms, all automatically. The most important of these, though, is the cell phone, because that's the most popular. And there's a new generation of cell phones that are coming out now. Of course, they're GPRS-based. You know that. You're the leaders in this in Europe, of course. They've got color screens on them. They've got organizers built into them with address books and calendars.

They use the SyncML standard to make it easier to sync with them, and a lot of them have Bluetooth, so we don't even need cables. We can sync with them over Bluetooth. And it's exactly what we're doing. Now, why do you want to sync with your phone? What's so exciting about syncing with your phone? Well, I'll give you a few reasons. For any of you who've used a Palm, you know all this. But for those of you who haven't, number one, you get to enter your data on a nice, big display and a nice, full sized keyboard instead of this little tiny phone. And it's much nicer. If you can enter a few hundred numbers, it's a lot nicer. But it's more important than just convenience. If you lose your phone, you don't lose your life. If your contacts are only on your phone and you lose it, it's not good.

And so if you lose your phone, your life is still on your Mac. And similar to that, when you buy a new phone, you don't spend hours putting in the data. You just sync it up with your Mac and you load the hundreds of contacts that you have in seconds. So those are three good reasons why you want to sync with your phone. You want to start looking at the phone as a peripheral to your Mac. It's a whole new way of thinking about it and very productive. So these three devices, that's what iSync is targeting. iSync's a very simple app in appearance, very easy to use. You can set what you want to sync. Like on the iPod, do you want all your contacts or just certain address books?

Do you want all your calendars or maybe just your work calendar? For your phone, the same thing. And then when you push Sync All, this is all you do. It syncs up every device, all of them together, all at once. Let me show you what this is like. Let's go do a demo of iSync. Again, iSync is using Bluetooth. Bluetooth has really arrived here. And let me take a look at the configuration panels for the phone. So here we go. I can turn on synchronization for the phone. I can synchronize all my contacts or just some of my address books.

I can decide to not synchronize contacts that don't have a phone number. Or I can synchronize them all so I have everybody's email address, even if they don't have a phone number. And I can pick all my calendars or, again, just the selected calendars here. But I'll pick them all. And for the iPod, similar thing. Pick the contacts, pick the calendars. I can decide to automatically synchronize it whenever the iPod is connected. And now, one of the things I'm going to do here is I've got a new phone right here. And my phone does not have any addresses in it. So I've got the picture-in-picture up there. Let me move this to where you can see it. And I will go to this phone. And let's see.

I think this will show me that it has no numbers in it. Is that right? Yep. OK. I will push this, get me back there. So there's no numbers in this phone. And now I will go show you in my address book that I have lots of contacts in my address book here, lots of different things here. And I want to sync this stuff into this brand new phone that I've just got. So what do I do? What I do is I simply go over here and push Sync Now. And if everything works right, over Bluetooth, it is finding this phone, it has set the phone into synchronization mode, it is synchronizing with the phone and the iPod. In this case, it's putting numbers onto my new phone.

But if I had entered new numbers on my phone, it would be syncing them also back to my Mac. So it's bi-directional sync between the phone and the Mac. This will take about 20 or 30 seconds. The software on the phones is not so fast. OK. There we go. And now I should be able to go over here and, let's see, to get the address book, I think what I do is I think I just go like that. And as you can see, I've got all my numbers here. And let me go ahead and call Avi here. Boom. Hold on. Avi Tavenian, there we go. And I think I should be able to push this. And I should call Avi, who's out there in the audience.

We'll wait till it works. There he goes. OK. So now, what about iPod? We synced iPod as well. And let me go show you what that's like. Let's get the iPod up here. This is my iPod. I'll wake it up from sleep here. And can we adjust that, please? Maybe we have a little too much light on it. But we can go into Extras here in our iPod. And as you can see, we have Contacts, Calendars, Clock, and Game here.

And we can go into Contacts. And sure enough, there's all of Avi's Contacts here. We can just get Contacts for Can Bureskin here. Again, that's what Contacts look like. They look about 10 times better than this. But this is the best we can do right now with this projection here. And we also have Calendars that have been synced. And so here's all my Calendars. And I'll just pick all of them right now. And this is what they look like. And it shows me what days I have events on. I can just go back and say, well, today, this is what my calendar looks like. And I can pick any one of these events and get more details on it. And so this is what my calendar looks like. And it turns out the scroll wheel on the iPod is just perfect because I can go to October here, November, December, or easily go back.

There we go. Today. Boom. All on my iPod. All sync what I see. So iSync. What it's about is Mac to mobile. And most importantly, the phone. Because that's what we all have. We've added that to the digital hub. And we've written this incredible application called iSync. Now iSync also runs on Mac OS X version 10.2 Jaguar. So you need Jaguar to run iSync. And we are going to put out a beta release late this month so we can begin the testing process.

It's looking very good. And it's going to be a free download at apple.com, both the beta release and the final release. So please take a look towards the end of this month. So look at what we've got here. We've got the new mail application. We've got address book. We've got iChat. We've got iCal. And now we have iSync. There's never been anything like this to help you organize and manage your life and communicate with your colleagues, friends, and family. So iSync, we think, is going to be a really big deal. And it's the start of something amazing. So the digital hub, we've added the phone, the palm, and we've enhanced the iPod.

And we've done that through these remarkable applications that we have written at Apple. iPhoto, iMovie, iTunes, iDVD, and now iSync. And with the remarkable batch of applications that come with Mac OS X. The new address book, the new mail, new iChat, new Sherlock 3, new iCal. These are just 10 of the things that ship now in the Mac OS X universe. And there's nothing like this on PCs at all. And this is the maturing of the vision that we put in place two years ago, which was our digital hub strategy.

And all of the applications are now mostly out there. Some are on their second and third revisions. They're being used by millions of people throughout the world. And you have my promise that we're going to keep working hard to make them even better and to continue to add wonderful new capabilities to the Mac. So thank you very, very much for coming today. Please go see our booth. And we'll be talking to you soon. Thanks.