Steve Jobs on Mac OS Strategy: Apple’s Roadmap

Here's to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes, the ones who see things differently. They're not fond of rules, and they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them, but the only thing you can't do is ignore them, because they change the beast, they push the human race forward.

And while some may see them as the crazy ones, we see genius, because the people who are crazy enough to think they can change the world are the ones who do. Good morning. Thank you very much for coming to our developer conference. We've got some great stuff for you today.

I'd like to start off giving you an update on our company and an update on what we announced last Wednesday, our new products and our whole product strategy. How many of you were there last Wednesday, just so I can get a feeling? Some of you. Okay, great. Well, we want to clue the rest of you in, in case you missed something. So let's get started, and then we'll get to the real heart of the matter, which is our software strategy. So Apple computer. I arrived back at Apple 10 months ago, and a lot of things were broken, and we've managed to fix a lot of things in 10 months. And I'm really pleased to report to you that the company's back on track.

Company's doing great. And a lot of that, of course, is due to the hard work of the people at Apple. They're really, really great, and they're working like crazy to make Apple shine again. And so let me review a few of those things. When you look at any company, the most important thing is people. And Apple is really blessed with some great people. We have a very wise board of directors. We've got a really strong senior management team. Now, as I said on Wednesday, I'd hold them up against anyone in the industry, any other senior management team in the industry. Most of all, though, got some incredibly talented employees. And when you've got great people, the most important thing to do is to keep them. And last summer, Apple was losing people at the annualized attrition rate of 33% a year.

You don't last very long if you're losing your great people at 33% a year. And I'm really pleased to report that the attrition rate is now down to 15% a year, which is below the Silicon Valley average, which is amazing in Internet boom time. Next, distribution. We've made a lot of changes and tune-ups in our distribution system at Apple. And one of the bigger ones was to focus on one national distributor, which happens to be the biggest, CompUSA. Now, when we started this relationship with CompUSA, we were nowheresville. And they agreed to put an Apple store within a store in each one of their roughly 170 locations throughout the U.S. And because of this and because of the focus that each of the two companies has brought to bear, when we started this program in last October, if you looked at CompUSA's total CPU revenues, Apple represented 3%.

I'm very pleased to report that we are now 15% of the revenues in CompUSA for CPUs. And we expect that number to climb. Next is Apple.com. You know, the Internet is a great gauge of overall interest in the company. We've got customers, existing customers. We've got prospective customers. We've got competitors. We've got software developers. We've got quick-time downloaders. You name it, they all go to Apple.com. And we've invested a lot in our website to really make it worth going to. And of course, we have the award-winning Apple store, one of the gold standards of e-commerce.

And again, 10 months ago, the Apple websites were getting 1 million hits a day. That's 1 to 200,000 visitors per day. I'm pleased to report that 10 months later, that is now 10 million hits a day, or 1 to 2 million visitors per day. Growth. Growth is important for us. And as you know, our market share, as measured by IDC, was about 3.4% in the quarter ending in December. The new figures have just been released. And even in this very competitive marketplace in the last quarter, Apple grew 15% in market share. Now, we're not happy about having 4% market share.

And thank God, in the markets we focus on, such as design and publishing, where our market share is 50 to 90%, depending on what segment you look at, or education, where our market share is over 50% of the installed units and about 37% of the new sell-ins, we do much better. But still, we would like to raise this, and we believe that some of the new products we've introduced last week are going to help us. And lastly, finance. We have a lot of very ambitious plans. We need to be healthy financially to finance them. And again, as you know, Apple has turned a profit each of the last two quarters. In the first half of this year, we've made over $100 million of profits. In addition, we have grown our cash. For the quarter ending December, we had $1.6 billion worth of cash that was $100 million over the prior quarter.

And this last quarter, ending the end of March, we added $200 million more to bring it to $1.8 billion worth of cash. This is very, very important to ensure our customers, potential customers, that Apple is going to be here 10 years from now. And lastly, in market value, actually this slide is a little old, it's gone up since then, but the market value of Apple has gone from $1.8 billion 10 months ago to actually about $4 billion today. And who knows where it's going tomorrow? So I think the company that we all really care about is getting back on track, and it feels very good. Now I was very privileged to represent all the folks at Apple to introduce some great products last Wednesday, and I'd like to take you through them right now.

Now if you go back and you look at the products last summer, what I found when I got here was a zillion and one products. These were 15 of the platforms. On top of this, of course, were all the servers and the monitors and the scanners and the printers and it was amazing. And I started to ask people, well now, why would I recommend a $3,400 over a $4,400? Or when should somebody jump up to a $6,500 but not a $7,300? And after three weeks, I couldn't figure this out, and I figured if I can't figure it out working inside Apple with all these experts telling me in three weeks, how are customers ever going to figure this out? So we decided to say, what are the right products for our customers? And some of these products were very good products, but as of now, we're making none of them anymore.

And what we decided to put in its place was to go back to, you know, business school 101 and say, okay, what do our customers want? And we have customers that want consumer products, and we have customers that want pro products. Now education, which is a huge market for us, primarily wants the consumer products, although they buy some pro products too. And each of these customers wants portables and desktops for each of these categories. And so if we could make literally four great product platforms, we'd be doing fantastic. And that's what we set out to do ten months ago. And the first one, which we introduced last November, of course, is the Power Macintosh G3. And we've sold over 500,000 of these in the first six months, making it the most successful Apple new product launch in history.

And as you know, these products are screamers. These are the bite mark tests. Bite mark is the best and most respected independent benchmark that we know of. And we, as you see, stack up not only extraordinarily well next to our 266 and 300 megahertz Pentium counterparts, but we smoke the newest, fastest Pentium 2 400. So we are extremely happy with these products. And, of course, you might have seen our advertising. Do you guys like it, by the way? Yeah? There's more coming. Would you like to see these commercials? I've got them queued up if you want to see them. Yeah? Okay. Let's go ahead and roll them. Let's go ahead and roll them. Some people think the Pentium II is the fastest processor in the world.

Not quite. The chip inside every new Power Macintosh G3 is up to twice as fast. Apple Computer would like to apologize for toasting the Pentium II processor in public. But the fact remains, the chip inside every new Power Macintosh G3 is up to twice as fast. So, that is our Pro Desktop product.

Last Wednesday, we introduced our Pro Portable product. And of course, that is the new PowerBook G3. It is a wonderful product. It is just gorgeous looking as well. And it features displays up to 14 inches. First time, PowerBooks have had displays over 12 inches. We offer a 12, a 13.3, and a 14.1. And they're really great. And we went out and found the fastest notebook computer you can buy in the PC space. It's got a 266 megahertz Pentium II. We had to go fly one of these in because you can hardly find them anywhere. They're so hard to make, I guess. And we just smoke them. We are easily twice as fast as the fastest Pentium notebooks.

And we believe in our tests we're faster than any Pentium II desktop. So, this is one fast portable. And we've also priced these things really aggressively. The 14 inch starts at $34.99. The 13 inch starts at $29.99. And so, we're really going to sell a lot of these things. And we hope you all take a look at them. And when you have a new product, you need a new ad. So, we have a new ad that I'd love to screen for you as well. So, if we could screen, it's entitled, Steamroller. There's a time and a place for settling.

This is definitely not the time or the place. Because the entire Pentium notebook world has just been flattened by a machine with a chip that's up to twice as fast. This runs starting tomorrow night on all the networks. So, check it out. So, that is our pro portable product line. On the consumer portable, when we announced that we were going to stop making the Emate, which used the Newton OS, we at that time announced that we would be making a consumer portable in 1999 that ran the Mac OS.

And we are hard at work on that now. And expect to hear some news during the first half of next year. Which brought us to the consumer desktop. And this was one of the most exciting moments we've had in a long time, I think, at Apple. Going back into the consumer market again. Remember, Apple invented the consumer market for computers. But for some reason it lost its way. And last summer, it didn't make one compelling product under $2,000. That's really scary. And we decided to get back into the consumer market with a vengeance. We began a crash program to do so. Guys, can I ask you to stop using the flashes for a little while?

That'd be great. I can hardly see anymore. Thanks. And, you know, Apple has some incredibly unique assets to go back after the consumer market. And what are they? Well, the first one is the brand. Brands are incredibly important these days. The world is so confusing. There's so much information coming at us that a trusted brand is like a trusted friend. And brands have become much more important than they ever have been. And the Apple brand is one of the best known brands in the world. It's right up there next to Disney, Sony, and Nike. There's no other brand in the computer industry that's even close. And so we want to use the brand to remind people that this company makes great products with great user experiences.

We have over a hundred million people that have used products from Apple. Another interesting thing about brands is they're much more resilient than people think. Every one of the other three companies on this slide has had tough times before. Look at Disney when Michael Eisner got there a dozen years ago, right? And look at where they've come. Sony's had their share of troubles in the last seven, eight years. Nike as well. And yet when these companies resurge, their brands are stronger than ever. Tremendous equity. Installed base. Of course we're going to go after new customers. Of course we're going to go after Intel customers. But let's not ignore the installed base. It's an incredible asset.

Apple has an installed base of 22 million active Macs out there. And what's interesting about that is that 10 million of them are in homes. And most of them are three and a half years old or older. Which means they're ready to be upgraded. But these customers haven't been upgrading. Nor have they been defecting. These customers have been defecting at less than 10% a year. And what that means is they've had viability concerns about Apple. And Apple hasn't offered them a compelling product at the price points they want. Well hopefully both of those things have changed. In addition to that, education, as I mentioned, buys primarily consumer products. So we've got 16 million customers already who know how to use the product.

Who have software for the product. Who want to buy more Macs. And we're going to help them do that. Marketing is key as we get more to the consumer market. Again, Apple is getting pretty good at getting its messages across. Most of our competitors in this market are not particularly good at marketing. They're good at merchandising, which is something quite different. And fashion. As we get more towards consumer products, fashion gets important. I found 10 months ago the best industrial design group I've ever seen in my life at Apple. For us, fashion is the design of our products. And we think this is really important to consumers. I'll give you an example.

This is the hottest selling watch in the world today. The Casio G-Shock. Because of design. Another interesting thing on watches is 10 years ago, the average American owned one watch. Today, 10 years later, because of design, the average American owns 7 watches. Not 7 of these, but 7 total. So design is very powerful. And lastly, ease of set up and use. It's very easy for us in the Mac community to forget that we still have by far the easiest to set up and easiest to use product. This becomes even more important when we're selling to people who don't get paid to use them for a living.

So we think we've got a pretty great set of unique assets to go after this market. And the product that we've chosen to go after it with is iMac. The excitement of the internet with the simplicity of a Macintosh. And this thing is really gorgeous. We unveiled it last Wednesday like this. It's about 50 decibels louder on Wednesday.

And this thing is a gorgeous product. If you have a chance, take a look. We have them throughout the conference here. Again, even the keyboard, the whole product is translucent and it's really, really beautiful. It's packaged up in an all-in-one unit. This is the mouse. Again, best mouse you've ever used, I think. And it's really wonderful to have the whole thing in one box. I believe it's the only computer, the only desktop computer that comes in one box. So, this is the competition. This is the best consumer computer you can buy in the Wintel space. It's a compact unit. And we've looked at all of them and they're all really good. really slow. They all have pretty crappy displays, 13, 14 inch, but more importantly, they're not so good quality. We design our own displays here at Apple, and this one is great. And it's the window onto your software, so you want that to be good. There's likely no networking in these products. Old generation I.O., and they really don't look so good. So, what is ours? We decided to put a screaming processor in this thing, so we built in a G3 processor running at 233 megahertz into our consumer product. In addition, we put a half a megabyte L2 backside cache on it. Now, again, this is that, the best consumer computer you can buy, the fastest one, that compact, uses an AMD K6 chip in it, also running at 233 megahertz, and it's 3.2 bitemarks, 7.9 for the iMac. But if you think that's cool, this is even

cooler. The fastest Pentium 2 400 you can buy is slower. So, you can go out and point down thousands of dollars and get the fastest Pentium 2 box you can buy, and for $1,299, this thing's faster. Now, why did we do that? We did that because we want your software to shine in front of these consumers, not crawl along at a snail's pace. We built in, again, a gorgeous 15-inch display, 1024 by 768 resolution. Again, why should you have to squeeze your software down just because it's a consumer? You shouldn't have to. Lots of memory, 32 megabyte standard, 4 gig disk, 24x CD-ROM, 100 megabit Ethernet built into every product. A lot of consumers are starting to put in networks in their homes. About 20% of the new homes being built in Silicon Valley have classified cable in the wall for Ethernet.

Okay? Plus, in education, they're all networked. Fast modem, 4 megabit IRDA right in the front of the unit, that's the infrared input for beaming in photos from your digital camera, et cetera. We've gone to all new I.O. The old I.O. from Apple is not on this product. All new I.O., universal serial bus, the emerging industry standard for connecting all peripherals, 12 megabit per second, two ports, stereo surround sound built into every product, and a great, a great full-size keyboard and a great mouse. And we're bundling some software with this as well, Mac OS 8, Internet Explorer, New American Online Client that's terrific, Apple Works, which is the rebranded Clarus Works, Quicken 98 Deluxe Edition, and FileMaker Pro.

We would also love to bundle some games, and we're talking to a few folks now about that. We'd love to talk to you. We want to bundle some really great kick-ass games with this product. So if you have any other ideas, come talk to us. Now's a real good time. $1,299. You got everything I just went through, nothing else to buy, $1,299. And we'll be shipping them in volume in August. We've kept this project a super secret. We decided to announce it now because there's a lot of you we want to talk to to finalize some deals, to finalize some go-to-market strategies before then. So that leaves us 90 days. We'll be shipping these in volume in 90 days. We are really, really excited about this product.

And we made a video about it that I'd like to show you now, if that's okay. So could we please roll the video for iMac? All of the images you are about to see on the large screen will be generated by what's in that bag. Hello, I am Macintosh. It sure is great to get out of that bag. Millions of people bought a Mac because it did things that no other computer could do. It really got people excited that this is a personal computer like none other before. And for many years, Apple got away from that. It forgot how to be different. The original Mac is an impossible act to follow. But I think what we can do is one benefit from the philosophy that was really the foundation for the original Macintosh.

This product came to be because the exec staff said, stop. Let's focus on one thing, making the best personal computer, a computer that Macintosh customers will truly love. What computer would the Jetsons have had? That's the perfect way of capturing the problem, which was, it was like the future yesterday. It defines simplicity, elegance, incredible ease of use, tremendous performance and great value. This particular machine really delivers on that promise. It makes you feel a lot like you felt when you first sat down to use your Macintosh. We have this wealth of creativity across our campuses, across our schools in K-12. What we wanted was to unleash that capability. The team was a hand-picked team from around the world. It's a remarkable place to be as a designer.

There's one company where this group could exist, and that's unquestionably Apple. That's what gets me really jazzed and gets me up in the morning, is coming in every day and knowing, you know, I'm working with a world-class team to build the best products in the world. Wow, that's some look, that's some box. My first reaction was, my gosh, what is that? People have to use their hands to describe it. They struggle to find words to describe it. It's the first time we've seen something in our industry that wasn't a beige box. Just imagine what's going to happen the first time somebody gets one of these homes. I'm going to pull this thing out, I'm going to pick it up, and it's this gorgeous new shape. The surface as well is totally seductive. I mean, it's a lovely thing to touch and to hold. This cool keyboard with translucent keycaps. The connectors are translucent.

I'm going to pull out this exciting new mouse. It looks like no other mouse you've ever seen before. You turn it on and it comes alive. It's always changing, it's always moving. And before you know it, in the first five minutes of opening the box, you're already in love with this thing. I'd like to play with one, I want to see one, I want to see what it'll do, I want to put it through its paces. But then you look a little farther, and you say, holy smokes, look at the capabilities of this machine. Because inside is the heart of the ride. I mean, this thing screams. This is not last year's product rehashed, this is next year's product delivered today. A lot of power, a lot of features. It's attractive, it's exciting, and it's well-priced. That's what customers are looking for. We're going to sell tons of them, and I think this is the first product that will make PC buyers switch to Mac.

You see shock and recognition that, my God, Apple wasn't sitting back in this affordable consumer space. They truly have a great idea here. The fact that the Apple name is now, once again, going to stand for every man, everybody, mass market, I think is terrific news for all of us. We talk internally, will we have enough product to take care of the Mac? I'd like the first one off the production line. I will stand there at the end of the production line when the first one comes off. Consumers have been loyal, they've been patient, they've been frustrated, they've been zealots. Okay, well, it's going to show it paid off waiting. So we're really excited about this, as you know, and we hope to get one on your desk soon.

So that is not only our new products, but our product strategy. And because we're focusing on only four platforms, it means that we can have our A team on all of them. It means that we can be upgrading them and enhancing them at an even faster rate. And we've got just some awesome stuff planned for the next few years. It's looking really good. Which brings us to why we're here today. We are here today to roll out our software strategy. And I think it's really good. We've been working on this for ten months. And again, we've kept it very quiet. We wanted to get far enough along that we could actually show you some stuff.

Now, we looked at all of the software projects going on at Apple. And we knew we didn't have time to talk about all of them today. So we stack-ranked them in terms of importance to our customers. And of course, the number one thing is the Mac OS. We stack-ranked the number two thing as Java, which is, I think, new for Apple. And number three, QuickTime. Now, there's a lot of other really important things we do. AppleScript, ColorSync, WebObjects, you name them. But these are the three I'd like to talk about today. They're our top three. And I'd like to cover them in reverse order. So first, I'd like to talk about QuickTime some. When I got to Apple, I didn't quite understand what QuickTime was.

I thought it was this little tiny video thing in a window. And it's much bigger than that. As you know, we are now in the digital age of media. Everything's gone digital. We've got CD-ROMs that have their own standard. We've got audio CDs that have a different standard. We have digital video discs that have just come out that have yet another standard, but that's different than the digital camcorders. They have their own unique standard. Then we have digital television coming out with 17 different standards. We have digital cameras, which have yet another standard. We have the internet with video on it. We have video conferencing with its own set of standards. Video editing uses its own set of de facto standards.

Image editing, Photoshop is de facto standard. We have music creation, and the list goes on. It's a tower of babble. Nothing talks to anything, and when you try to put video productions together from multiple sources that you might want to send to multiple destinations, it's a nightmare, and that's what QuickTime is. It is to digital media what PostScript was to apps and printers a decade ago. Some of you are a little young for that. Let me take you back. If you were an app developer, let's say, 15 years ago, and you were developing, let's say, a word processor, it was near to impossible.

Why is that? Because every app needed to have a driver in it for every printer and know how that printer worked. Every app had to know about every printer, and every printer had to be in every app. If you wanted to come out with a new word processor, you'd have to have hundreds of printer drivers. WordPerfect was king of the hill at that time, and one of the reasons was because they had 400 people writing printer drivers. If you want to come out with a new printer, conversely, you had to go beg and plead with every word processor company to put a driver for your new printer in, and most of them wouldn't or schedule you out a year, so you can imagine that innovation wasn't very fast. WordPerfect solved that by putting a platform layer between the two, a firewall, where printers understood PostScript and apps spoke PostScript, then every app would talk to every printer, and that's what's happened.

QuickTime is exactly the same thing. It is, if you will, a unifying platform for multiple source and multiple destination digital content creation and playback. I know that's a mouthful, but it's really important, and it's so important that ISO, the International Standards Organization, recently adopted the QuickTime file format as the basis for the thing beyond MPEG-2, which is in the digital video disks, the next generation, which is MPEG-4. This is a really big deal. It was very hotly contested in QuickTime 1. It is so important to all of us that QuickTime continue to be the standard that we even put it out on Windows, and we have exactly the same source code base, it's exactly the same product on both platforms.

And I've got a video about QuickTime that I'd love to show you that just kind of highlights how pervasive this thing really is. So if we could roll the QuickTime video, please. QuickTime is the industry standard for digital video and multimedia content creation. QuickTime is used in professional video production environments. It's the dominant platform for CD-ROM, multimedia, DVD-ROM content creation and publishing. It's used on over 70,000 websites, and it's the number one format for digital video on the Internet. There's now a large community of people who have experience with it, customers, third-party software people, and hardware vendors.

It's in use everywhere. People are making videos today. People don't recognize that much of what they see on television is a QuickTime file. Video is extremely important to anybody who wants to get a message out on the Internet. Very quickly, people who do not take advantage of video will be outclassed by the folks who really understand video, particularly the folks who understand how to integrate video and text and audio and virtual reality into a seamless experience. On the basis of its broad industry acceptance and technical strengths, the ISO Committee has chosen QuickTime as a starting point for its next-generation multimedia standard, MPEG-4. Video should be as easy to access as any other type of information, and what MPEG-4 and QuickTime allows you to do is the first big step towards that ultimate goal.

QuickTime benefits people the same way PostScript benefited the typical print user more than 10 years ago. PostScript allowed a lot of printers to standardize around accepting one language for the description of a page, and these printers could be a variety of resolutions, a variety of capabilities. Scalability, robustness, flexibility, and extensibility, because we don't know 20 years from now, you know, how the digital content is going to be created, how it's going to be used. So having a standard that you can expand and extend in different dimensions is absolutely critical. I can choose the most beautiful video engine as my hardware, and I can keep my favorite programs as my software.

And if I want to change the video engine next year, I can change the video engine. That's how we can maintain the highest level of product without having to change our tools and change the way we work every year. It has a snowballing effect in the marketplace, and that's what we've seen with HTML and with Java and with JavaScript and with QuickTime. We're very excited about something that can be created once and viewed anywhere with an open interface. QuickTime is the glue that helps us mix and match the different applications. We create 3,400 spots a year. That includes the entire graphics look of the network. Almost every spot that we create in some way has a QuickTime graphic on it. Today, we believe there are over 10,000 CD-ROM titles that utilize QuickTime. If you are using a CD or a multimedia title that does run on multiple platforms, you're using QuickTime.

Being able to store a video clip or a film or any kind of video or audio element in a format that can be leveraged across multiple media delivery types, like the broadcast stream or the internet or DVDs or whatever, is very compelling for us. We're interested in using content to teach. The fact that QuickTime is so readily available, it's installed across a variety of platforms, it probably reaches in the tens of millions of people. That's important to us as a content producer. We use QuickTime because it has the ability to reach more people. Showtime creates four channels, runs them 24 hours a day, 365 days a year, and we could not make that product in a stable, timely fashion without QuickTime and without the way we use QuickTime.

My designers love it. My designers are able to be designers first and computer people second. It's demonstrated itself to be extremely flexible, and it's the best out there. It has to work across different kinds of computers, it has to provide value to the customer, to the software developer, or to the content author. If that standard does provide that value, then it becomes widespread and broad. And I think that's the stage that QuickTime has gotten to. It's a statement about an industry reaching a level of maturity that can support much, much broader innovation. It's a great example of cooperation. It's a great example of the best of breed being brought together for the benefit of our industry, for the benefit of companies within our industry, and most importantly for the benefit of our customers.

QuickTime is a really important part of our software strategy. Now, when you play a QuickTime movie, what people have known about until this year is that it comes from a file system. It comes off a CD-ROM, it comes off a hard disk, maybe it comes over a network from a server somewhere, and in that regard QuickTime dominates the landscape. There's over 10,000 CD-ROMs that use QuickTime, and all the authoring tools use QuickTime as well. So QuickTime dominates the creation and playback of file system driven multimedia.

What's new is we announced earlier this year that QuickTime 3 would do internet streaming, and so you could take that same file and put it on any HTTP internet server. Nothing special, nothing extra to buy, and when people double clicked on that file over the internet, it would start downloading, and QuickTime would even start playing it before the whole file was downloaded. It would stream it over the internet from any HTTP server. But there's one last piece that we're going to be adding with the release of QuickTime this fall. HTTP-based internet streaming doesn't do live broadcasts. To do that, you need live streaming over the internet with the newly emerging protocol that everybody's agreed on called RTP, real-time protocol over the internet.

And we're going to have this in the version of QuickTime we ship this fall, and to show us what that is, I'd like to invite Peter Hottie, the chief architect of QuickTime on the stage, to give us a glimpse of that. Peter? So, as Steve was telling you, when we released QuickTime 3 this year, we really moved aggressively into the streaming media space on the Internet, providing a great collection of low-bitrate technologies, things like Sorenson, Q-Design, Qualcomm, Roland. And that really gave us a great foundation in file-based multimedia. We want to move into the live space. So what we'd like to do today is show you a demonstration of some new QuickTime streaming technology that we've put together.

What I've got over here is a QuickTime – if we can bring the screen up, thank you – is a QuickTime streaming transmitter. It's a little broadcast app. And I'm going to ask, actually, Steve to stand here and sort of make this into Steve TV. And I'm going to go to the other end of the podium here and see if we can do this. Key part of the demo. So let's just bring up Internet Explorer, and we can see over here, if we just bring up QuickTime streaming now on the other screen, a little penguin, and we hit play, it'll go and connect. And in just a moment, we should have Steve over here. So if Steve moves here, you can see on the other side, with a momentary delay, see it coming through. So it's a live broadcast being done in QuickTime, being received in any web browser.

Now, for the next – for the rest of the demonstration, we're going to take down the transmitter. But what I want you to remember is those three buttons down there that say Pro, Go, and Whoa, because Steve is going to click them later, and you're not going to see it. So we can have the client on both screens now. Thank you. So having QuickTime technology, you know that the streaming technology works in a web browser. But as a developer, you want to put this technology into your own application. So you might be thinking to yourself, this looks cool, but how much work am I going to have to do to make this work in my app? So I would like to show you how easy this is going to be. We have an existing document in Microsoft Word. We've just embedded a QuickTime movie.

Now, this isn't a normal QuickTime movie. It's just a reference back to the server where Steve is standing. So when I click here to start this, what it will do again is just go make a connection, and in Word, I have Steve Jobs live on stage at the WWDC. This is really important, because this means that streaming video, live events, aren't something that only happens in a web browser. There's something that you can embed into your product just by building in QuickTime support today with no additional changes. I'd like to show you one more thing. For those of you who have been following QuickTime for the last seven years, really, since we've been at these conferences, you know that we don't like to just do straight sound and video. We want to do a little bit more to take advantage of some of the unique capabilities of the Macintosh, to take advantage of some of the unique features of QuickTime.

So here in the web browser, we actually have two frames, and you will remember, we've got Steve again, you'll remember that in the broadcast app, we had some buttons down below that said Pro, Go, and Whoa. So I'm going to ask Steve to click on one of those now, and I want you to watch the other frame in the browser. I'll step way away from the computer. So Steve can actually control my computer remotely and make something display in the browser as he's making a presentation. This kind of capability, it's really hard to demo when your CEO is making faces on stage. This kind of capability is really important because in a learning situation, a presentation situation, there's more than just the video, there's the slides and so forth.

If you can get those to look great in an HTML page, you can use those tools instead of reducing everything to video, where you may suffer some quality loss on the internet, for example. So QuickTime streaming, a live solution for QuickTime coming this fall, will integrate into your app, will integrate into your browser, and will provide a great solution for delivering not just sound and video, but all the kinds of multimedia you expect from QuickTime. Thank you. Thank you, Peter. Doesn't that stuff look hot? Okay. Next is Java. We want to do three things with Java. The first one we want to do is unify the JVM.

There are lots of Java virtual machines on Macintosh. And users get confused, and app developers get confused, and it's a mess. So we'd like there to be one. And we have been working with all of the developers to integrate the features they need, and I'm really pleased to report that Microsoft, and Netscape, and MetroWorks, and Symantec are all going to be standardizing on our unified Java virtual machine that's coming out in I think this is really important, and this is the JVM that will ship in the Allegro time frame this fall. The second thing we want to do is make it compatible. And we work with two great partners, Sun and Microsoft, to get the best of everything for our customers.

And we are pleased to announce that, again, the Java that will ship in the Allegro time frame will be 1.1.6 plus Swing. If you don't know what that means, don't worry about it. And lastly, we want to make our Java fast. Now this is not so easy. We went out and we measured things on the fastest G3 you can get, 300 megahertz, and the fastest Pentium II you can get, 400 megahertz. And here's what we found. When we shipped 8.0 last, a year ago basically, a little less than a year ago, 272 caffeine marks.

Not so good. When we shipped 8.1 in January, this January, we thought, oh my god, it's three times faster, aren't we great? No, we're not great. This navigator on that 400 megahertz Pentium delivers almost 3,000 caffeine marks, 2,700, over 2,700 caffeine marks, and Internet Explorer running on that 400 megahertz Pentium delivers almost 3,900 caffeine marks. So no, we're not so great, and we've got to stop measuring ourselves relative to ourselves, which we've done. And we've been working our tails off for several months now, and I'm incredibly delighted to tell you that the Java that we're going to ship in the Allegro timeframe is much better.

As a matter of fact, we have it running internally already at over 3,100 caffeine marks today, and I pledge to you, there are no guarantees in life, but boy are we working hard, we are going to pick up that extra 791 caffeine marks before we ship this in the Allegro timeframe, and our goal is to be second to none in performance by this fall with our Java. And we think this is pretty important. And now, Mac OS, most important piece of software we've got. Now ten months ago, when I got to Apple, a lot of people thought that this was the future of the Mac OS.

Apple had been saying this for a few years. It was crazy, because the Mac OS has 22 million customers, about double that number of users. It is one of only two high-volume operating systems on the planet, and it has 12,000 applications with developers who make their livelihood from it. Far from being something that we should discard, it was very rapidly apparent that this is our crown jewel. It needs to be polished and extended, and that's exactly what we're going to do.

Now, what was this Rhapsody thing? Rhapsody was some great technology, some really good technology, and what it was, was it ran old apps, i.e., Mac apps, and it would run these new apps that would give you all these great new features. The problem was, when you ran the existing Mac apps under this blue box thing, you didn't get any of the new features. And to get the new features, you had to rewrite your entire app. Nobody wanted to do this. And so, we came to the conclusion that Rhapsody was great technology, but it didn't give us what we wanted.

It was going in the right direction, but it didn't go far enough. And so, we decided to go further. Now, what do people want? They want an advanced OS that runs Mac apps, right? Is that what you want? That's what people want. Now, what does a modern OS mean? It means things like... protected memory. It means things like a modern virtual memory system and preemptive multitasking and multi-threading etc etc. So we wanted to marry those two things together and not ask everybody to rewrite their apps completely to take advantage of this. That's what we set out to do. We set out to think different or to borrow a tagline from one of the other logos you saw. We set out to just do it and that's what we've done and it is my great pleasure today to announce our strategy for Mac OS X. It is a big leap in the Mac OS roadmap and yet it is also the best of evolutionary. It takes the Mac OS into new territory, into the biggest leap it's had since it was first introduced in 1984, and yet it's going to bring all of us and our apps along with it.

Now Mac OS X has two parents. One of them is system 8 and that's not just system 8 as we know it today, but it says it's going to be enhanced and Rhapsody. Again a lot of the technology in Rhapsody was right on, it just didn't go far enough. And we figured out how to do this with that technology. Now how did we do that? What did we do? Let me tell you. There's never any lunch that's totally free, but this one is free except for a little cherry on the ice cream at the end. Let me take you through it. The Macintosh system has been being developed for 15 years or more and there are over 8,000 function calls, over 8,000 APIs in the system. We went through these with a fine-tooth comb because some of them were preventing us from building in those advanced features. And what we found was literally after 15 years there was a lot of barnacles and cruft in there. About 2,000 of those APIs are bad news. And so we decided to have the courage to get rid of them. And we're doing exactly that in Mac OS X. We are renaming the clean 6,000 APIs plus a few new ones we have added to allow you to implement some of the functionality we're taking away with the bad APIs. We've named that API set for Mac OS X Carbon. All white forms will be based on it.

Now, when you run an app, a typical existing Mac app today against Carbon, most Mac apps use about 1,000 APIs plus or minus a few hundred. And we have looked at over a hundred Mac apps in detail. And what happens is, is that most of the API calls that these apps do are supported in Carbon, but a few aren't. We looked at over a hundred apps. We built some special diagnostic tools. We call them the Carbon Daters. And they look at these apps and they profile them extensively as to what is supported in Carbon. Let's take a look. Here's some publishing apps. Adobe Acrobat, over 90% of the APIs are supported in Carbon.

Illustrator 89, Photoshop 89, Director 6 93, you know, Freehand 92, Quark Express 88. Here's some other ones. Office 98, 87%, Internet Explorer 93, etc., etc., etc. Okay? They are all mostly supported in Carbon. As a matter of fact, the average of those hundred apps we looked at was 90% of the APIs. So what does this mean? What this means is, is that to take advantage of this modern OS, it's only going to require a small tune-up of these apps, not a rewrite. And the tune-up will simply take care of those 10% of the APIs that do not fall within Carbon to get the app to fall 100% within Carbon. And, big news, Carbon is going to run on OS 8. We are going to be providing the libraries for OS 8 with the new APIs so that when you tune up an application for Carbon, you can make a version for OS 10 and a version for OS 8 off the same exact source code. So the next time you're revving your app for System 8, you can make it Carbon compatible, run it and release it on 8, and be ready for OS 10 when it comes along shortly. So what does the tune-up look like? The tune-up, the goals we're shooting for, and they are absolutely going to happen, we believe,

the tune-up is one to five days. You'll hear more about that in a few minutes. One to five days to bring up your app in Carbon. Because you've got to SQA the app, let's be realistic, it's about one to two months to make it ready to ship. Except, if you're already doing an upgrade to your app anyway, this time will be much shorter as an incremental amount of time. Compare that to the strategy of a year ago, where to get these features you had to rewrite your app. This is where we're going. One to two month tune-up, and even less if you're in the process of upgrading your app. A lot of it depends on where your app is. What APIs does it take advantage of? How clean are you already? Again, the average app of the hundred we've analyzed was 90% supported by Carbon. What's your application? We want to know. You want to know. And so, first of all, we have a draft spec of the Carbon APIs available to you today as you walk out of this room. You can pick up a copy. This spec is also available on the web, and it is a living document over the next 90 days as we continue to get developer input. Our Carbon Data Analyzer is also available off the URL, which you can get also throughout the conference. You can download and run this analyzer, and then we will automatically, over the internet, take that data, apply it to the latest API state-of-the-art spec, and produce custom HTML pages that show you exactly where your

app is in Carbon and where it's not. That stuff is available as of today. So that is our strategy with Mac OS X. Its parents were System 8 and Rhapsody. We are targeting Mac OS X for the G3, which means that all of the products we are shipping will run OS X. In addition, Carbon apps will run on System 8 on the complete line of products we ship with System 8. So Mac OS X, what specifically is it? Protected memory. When an app crashes, it will not bring down the system. Virtual memory. No more fixed-size heaps. We will manage the memory in an extremely sophisticated VM system. Preemptive multitasking. That means real multitasking. Multithreading. Fast networking. The networking is screaming.

Our prototypes are keeping 200 megabit Ethernet cards fully saturated simultaneously. Very fast file I.O. Fully PowerPC native. The whole OS, it screams. There is no 68K code in this. And even if you don't tune up your own OS 8 apps, they will run. They just will not get the new features. You've got to tune them up to get to the new features, but even if you don't, they will run. So we carry all the apps over on OS X. And we believe we're going to have a very easy transition as these things go. And we've got porting centers and we've got all that stuff set up and we are ready to help people, but so far it's looking really, really good. Mac OS X. I want to give you the schedule. First, let's start with System 8. This is a very important part of our strategy and it's not going away. As you know, we ship 8.1 in January. We're going to ship Allegro in Q3, probably in September and Allegro is going to be called 8.5. As we move into next year, we're going to have, if you will, an Allegro.1 or 8.6 in Q1 of next year and Sonata, code name Sonata, in Q3 of next year. So again, if you notice, we're shipping a release approximately every six months of System 8 and our software team is doing an incredible job, I think, of making

doggone good releases and getting them out on schedule. So this is looking great to us. And Allegro is turning out wonderfully and you'll hear about that in the sessions I believe they're tomorrow. Allegro is looking beautiful for this fall. So, let's go back. to this year, and let's layer in now Rhapsody. Okay, Rhapsody. Developer release 2 is available today. You can get it today. I think they might even be in your bags. I'm not sure. Developer release 2 is available today, and we will ship 1.0 of Rhapsody in next quarter, Q3. And then from then on, Rhapsody transitions into OS 10. It is the fundamental OS underpinnings of OS 10. Okay, let's layer in OS 10.

OS 10 draft spec today. We will ship a beta of OS 10 in Q1 of next year, and we will ship 10.0, the biggest leap in the Mac OS since it was first introduced, Q3 of next year. That's where we are, and we are very confident that we can meet that schedule. Okay, that's where we are. Going from where we are today in Q2 with the draft spec, five quarters later, shipping a production release, Mac OS 10. Now, all of this has just been setting the stage to show you this stuff. And to show you this stuff, I'd like to now welcome one of my colleagues, somebody I've worked with for over a decade, Dr. Avi Tevanian, our Senior Vice President of Software for Apple Computer.

Applause. I was just watching those slides backstage with all those CD images on it for this year and next year. There's a lot of them. We've got a lot of work to do. But so far we're doing okay. So when we started thinking about really putting this kind of a strategy together, I think it's worth mentioning that a bunch of people said, well, you can't really do that. It's too difficult. You don't understand how the Mac OS apps work. You just can't do it. But like Steve said, we just decided to go and do it. We decided, look, we can analyze this forever. We can write white papers about it. But let's just get some engineers together.

Let's pull out the APIs. Let's write these tools to find out what the apps do. And let's just dive right in and start writing code, importing code, and doing whatever it takes. And so we did that. And we found that we were fast approaching this conference. And, of course, for this conference, we like to have some demos of what we're working on. And everyone was really scared because, well, gee, it's a lot of work. It's a real lot of work. And to get the basic technology working and then have apps work on top of it is really difficult. And we didn't think we were going to do it. But there's nothing like a deadline. And so I'm happy to report that we can actually show you some stuff today. So let me get Jim Batson up here, who's going to help me show you what we've been working on for the past few months. OK, so that's it.

Can we get the right screen fixed? OK, well, watch on the left screen then. OK, so we've been working on the basic libraries for quite a while now. And we actually started that in the context of porting the QuickTime code onto Rhapsody. And, in fact, we have a DR2 system running here with the initial version or the current version of the Carbon APIs. So as we got closer to this conference and we started feeling as though we could do some demos, we started to port some apps. And so we started with one that sounds simple, SimpleText. Why don't we bring that up, Jim? So we're launching SimpleText. And SimpleText is about 15,000 lines of code. It's actually not so simple. Relatively simple.

And we only have to make a handful of changes to get SimpleText to come up and run. And as you can see, we've got the menus. And let's go ahead and bring up our SimpleText document. OK, so we see a bunch of text. So how much did we have to change SimpleText to get this to run? Not much. Basically only compile. Yeah. So let's go ahead and plug some text. We can change the fonts. This is using TextEdit, TrueType fonts, the full macOS text system. And since it's TrueType, when we scale the fonts up, they still look great. Let's go ahead and change the style. Still looks great. So basically all this works. Yeah. Great. OK, so the next thing that we got running was something a little bit more complicated, MoviePlayer.

Now, MoviePlayer is somewhat of a simple app, but it calls into massive libraries all the QuickTime stuff. OK, so what we're going to do now is we're going to play a QuickTime movie. Do we have any audio? Can we get the audio turned on? There we go. OK. So this is showing all the QuickTime libraries running right on the DARE OS, taking full advantage of all the new features in there. Right. And an important thing to note here is that we're running on a preemptive multitasking system. And if you're familiar with multimedia, that can be kind of tricky at times to get that to work. And as we even just drag the movie around, the movie keeps playing. OK. OK. So now this is interesting. So why don't we show what happens when we run a nasty app.

Right. So we're going to launch a badly behaved application. And the point is that since we're running in a protected memory space, this application, it does something nasty, as we said. There we go. That's pretty nasty. So for those of you not in the know, starting to write at low mem address zero and just trashing it is probably a bad idea. So if I were running this on Mac OS 8, when I press this button, I'd be rebooting just about now. Right. So we should probably read that panel. OK. So the alert comes up. It says this application, Trash Low Mem, has only specifically quit. So you do not have to restart your computer. OK.

And your movie keeps playing in the background. It's still playing. Right. So there's another kind of nasty app, which we're going to bring up right now. So tell us what this is doing, Jim. OK. Well, this is an application that is just drawing, not yielding any time to any other processes. OK. So it's, if you're running this on Mac OS 8. So it's not waiting for any events. Not calling wait next event. This might just lock up on Mac OS 8 system. In fact, you couldn't drive the Windows. The movie would stop. That's right. So what's happening on a Mac OS 8 system right now is the spinning colors. OK. And, but still the movie keeps on playing. OK. So the only way to kill this app. In fact, we can't kill it other than by bringing up this panel. That's right. So we kill it through the process manager. And we quit the app.

Force quit. It's gone. And it's gone. OK. And through all of that, the QuickTime movie has kept on playing. Right. So we were ecstatic to see all of this stuff work. But then we kind of said, well, gee, if that's all we show, those look like toy apps. So we said, let's go get a real app and let's try and port it and see what happens. And we were lucky enough to have the source code for one, which was Clarisworks, which is now Appleworks. So just, what, two or three weeks ago, we started porting Appleworks. Yep. And here we are launching it. Still says Clarisworks. OK. It's about 350,000 lines of code. We only have to change maybe a fraction of a percent of the code to get this up and running under carbon.

And so the first thing we should do is we should go ahead and look at an existing Clarisworks document. OK. And so what you'll see is there's some text up here. Here's a graphic. And then here's also a live spreadsheet. And so look at the red bar all the way on the left. Basically, I'm going to just show you that it really is a wired spreadsheet. And the red bar drops all the way down. OK. And again, how much did we have to change? You know, a fraction of a percent. So not much, especially when you consider 350,000 lines of code. Most of the time, it just took us a couple of days to bring it up and running. And currently, maybe half those changes actually were just to work around the current prototyping environment.

Right. So actually, there's even less work for you, the app developer. So let's go ahead and create a new drawing document. OK. Just to show you some drawing features. Now, the thing is this is still QuickDraw imaging based. So all your drawing that you do today still works. So we'll show that by drawing some rectangles. We can pop down, change the color. OK. Let's draw another familiar type of arc. Set the pattern. OK. Next, we're going to use a ClarisWorks custom object, which is just a polygon. OK. The other thing we'll show is a Claris custom feature. Oops. Didn't mean to bring that up quite yet, is the gradient. OK. So this is custom for the application.

And of course, we can bring up the gradient editor. And we can change the gradient. So the point here is this is a highly customized dialog. OK. You, the application developer, spent a lot of time and you've invested a lot of your efforts into making the application the way you want it. OK. And none of that investment is lost by coming over to Mac OS X. So it's no changes in the app itself. That's right. It just works. So we've done all the work in our code to make it all just continue to work. That's right. And you get all the advantages of preemptive multitasking, protected memory, and all the faster I.O. networking. OK. I guess this is... That's it. Thanks, Jim. This is probably the one time where a crash would have been OK because it would have just downloaded the rest of the system. But we didn't get one. Too bad.

So we talked about how we've gone from these 8,000 APIs down to these 6,000 APIs. This is sort of our first pass at what we think the carbon API set should be. But what we understand, what we realize is that we can't just make this decision in isolation. So very recently we just started talking with some of our biggest developers to get their thoughts on what we're doing from an overall strategy perspective and get them to start thinking about are we picking the right APIs. So what I'd like to do now is introduce a couple of folks who are going to come up and tell us what they think about our strategy going forward. And the first person I'd like to bring up is Ben Waldman.

Ben is the General Manager of the Macintosh Business Unit at Microsoft. I guess it's pretty exciting to be from Microsoft and come to an Apple developer conference and actually get applause when you all come up on stage. But I guess maybe that's what happens when you finally learn how to write good Macintosh software. I've been working at Microsoft for about nine years now. My first job at Microsoft was as an engineer on the Excel three project where my job was to write the publish and subscribe code for the edition manager system seven.

And so that was a waste of six months of my life. And so I've tended to be a bit skeptical of operating system strategies, which is a good thing, I think, you know, with PowerTalk or Copeland or things like that. But Mac OS X is different because with Mac OS X, I think, Apple is doing exactly what we and our customers have asked Apple to do for quite a while. Apple is delivering the benefits of a modern operating system with preemptive multitasking, protected memory, fast networking, while at the same time preserving the investment that we and our customers have made in the Macintosh operating system and Mac OS APIs.

The beauty of Mac OS X, I think, is that by making just some small evolutionary changes in our applications, we'll be able to deliver revolutionary benefits to all of our customers. And I think that's a great thing. You know, I think that this is really a great time to be a Macintosh developer. I'll tell you all confidentially that the last few months have been the best months for us at Microsoft in the history of our Macintosh business with Office 98 and Internet Explorer 4.0. And I think that all of us here in this room know that we're working with and dealing with a very different Apple than we have even, as was the case about even a year ago.

Because today at Apple, I think all of us see strong leadership, a clear vision, great products, and I think with Macintosh, with Mac OS X, the right operating system strategy. So I'm happy to say that we at Microsoft are very, very excited to be continuing our close collaboration with Apple as we work together with Apple to bring great products to our customers. And I really hope that everybody else in this room will join us and do the same thing. And I hope that together, all of us, the family of Macintosh developers, can work together with Apple to help bring Macintosh into the 21st century. Thank you very much.

Okay, next I'd like to invite up someone who we just met with last week, who is extremely excited to be here, I know. He is like all giddy. That's Norm Meyerowitz from Macromedia. He's the president of Macromedia Products. Norm? Thanks, Avi. Well, we're pleased to be here from Macromedia. Macromedia has been doing Macintosh products since the Mac was born, and I've actually been doing them since the Mac was born when I was back at Brown. In fact, the most exciting meeting I had with Apple was January 8, 1983. I remember that. And that's when Steve came to Brown and showed us the original Macintosh, and we knew it was going to change the face of computing.

Well, Macromedia has products like Freehand and Fontographer and Fireworks and Flash and Director 6.5, which just got released today. We have six, seven million lines of code. And the meetings since that January 1983 meeting, the meetings with Apple were good, and then the quality kind of trailed off. We went down a couple years ago for an operating system strategy meeting, and we said, you know, we really would like a modern, safe, earthquake-proof operating system. And they said, how about if we give you a jacuzzi? We said, we really want a great foundation. We just want a foundation.

And they said, would you like a wine cellar? We said, really nice, safe foundation. They said, gun turret? Would you like a gun turret? And we were confused. Well, we had a meeting this Friday at 11 o'clock down in Cupertino and went down there, not sure what to expect. And when we got there, Apple said, would you like a foundation? And we said, you know, a foundation like the last time where we had to tear down the house and then rebuild the whole house? And they said, no, a foundation where your house stays exactly the same.

And it's really quick. It will take a couple of weeks to go and put in that new foundation. And we said, sure, we would love that. And we're really excited because this strategy gives both of us, gives Macromedia and Apple and also our customers what they want. It gives a solid foundation on which to build on. It means that we can get stuff out quickly, and then both Macromedia and Apple can innovate to both improve the applications and improve the operating system knowing that we're on a solid foundation. So we only found out about this on Friday, but it was exciting enough that our freehand team, which is in Texas, they flew up. There were a couple of angry wives and mothers because the folks were supposed to be home for Mother's Day, and they came up to see what they could do about getting stuff running on Mac OS X.

So we're really excited about this announcement. It's really the right thing. And the major thing that I have to say is that, you know, these days in the Internet space, everybody's putting out press releases about how they're a visionary. Well, Steve is one of the true visionaries of the industry. And one of the things he and Apple have learned that now at the end of the 1990s, it's really not just about being a visionary. It's about being a listener, listening to the customers, finding out what they need, and giving them what they got. So I want to, on behalf of all the developers out here, I want to give Apple a big hand. Thanks, Norm. I really do need to apologize to Norm for giving them such short notice.

Really, just the weekend isn't enough time, even with our one to five day estimate, although they certainly tried. And hopefully they'll have something to show later this week. It's refreshing to see developers like at Macromedia just really jump on this strategy with so much enthusiasm. Now, although we kind of blew with Macromedia and didn't give them enough time, we did give Adobe enough time. We talked to Adobe just about two weeks ago, and we had a great meeting with them. And at the end of that meeting, I said something that was intended to be a joke, which was, well, so how about if you guys demo Photoshop running on this at WWDC? And the next person I'd like to invite up is Greg Gilley. He took me seriously, and he actually went off and made it happen.

So I'd like to invite up Greg Gilley now to show us Photoshop and tell us what he thinks. So first off, let me say a couple things. It's been interesting working with Apple over the last several years. There's been a few changes in management, a few changes in product strategy and product philosophy. So it's been a challenge, and I have to say that over the last several months, it's gotten a whole lot easier to deal with Apple, a whole lot more rational. So we're pretty excited about this strategy.

I don't know, probably like most of you, when Apple came and talked to us about Rhapsody, we were kind of going, huh? So how does this make sense for the customers? How does this make sense for us? And we never could really get excited about that. But when they came back and talked to us a couple weeks ago, it was pretty clear, just five minutes into the meeting, that they had figured out a strategy that we think will actually work. So we're pretty excited about it. We had this meeting two weeks ago, and so I want to catch Avi and Steve up since I don't know if they know what kind of happened in the meantime. So we had this meeting, and then, you know, Avi asked this question, and I thought, well, you know, we can give it a shot.

He was just joking, but I thought, what the hell? So I went back and started taking a look at it. They gave us a list of APIs, so we started looking at the APIs. And, you know, like I said, you know, most of the APIs that we were using were supported. There were a few that weren't, and most of them were, you know, old deprecated things, old things where you're just using, you know, param blocks directly and things like that. Some things that probably weren't kosher on the Macintosh anyway. But we started taking a look at that and then said, okay, well, let's see what we can do. So I started looking at the headers and stuff. And then I guess on Friday, so that's a week ago Friday, I got a copy of the MetroWorks compiler for this beast and so and kind of got to work.

So what's happening in the meantime is so Photoshop is in the final shipping stages. So things are a little crazy. And so actually everybody, the Photoshop team was busy dealing with that. So I was the one who actually started doing the port, which is kind of scary. So and what they say about vice presidents and keeping them away from code, it's true. So just anyway. So I got started working on that and I made some some pretty good progress. And meanwhile, you know, so, you know, Photoshop is it's all crazy. And I'm dealing with all the fires that are coming up and dealing with that. And so and then my brother comes in town and so I've got him and his family.

And so we, you know, kind of run around with them. And so actually on this past Friday, I actually went down to Monterey Bay Aquarium and left the machine with a couple of engineers, a Photoshop team who finally got to the point where they were. The disks were going to manufacturing. So they were had a few minutes of time and they fixed a couple of things which had been nagging me. And then so Saturday we had a barbecue in my backyard and I was I was in there. I was fixing trying to get the last couple of things fixing, trying to get them worked. And I burned the steaks. So my wife gave me grief for that. But and let's see. And then, of course, Sunday was Mother's Day. So we actually went up, took my brother up to San Francisco, took the family up there, because I'd never been San Francisco before. So they want to go see the Golden Gate Bridge and stuff.

So I guess let's see. So I guess about two o'clock Sunday afternoon, I came over to Apple, sat down with the engineers, worked out the last few kinks. They went to dinner last night. And then, let's see, I came back after dinner, worked out a few more things. And finally, I guess about one last night, I finally went to sleep because I had to get up this early this morning, come up here. So that's kind of where we are right now. So it was an interesting experience. The the only other thing that I should probably mention is that while this was going on, there was a little bit of a head butting going on between executives between Adobe and Apple. So there was a couple of times where I said, yes, we're going to do this. No, we're not. Yes, no. Yes, no. But we got past that. So anyway, all that said, let me show you what we got here.

So it kind of looks like Photoshop. So let's see. Let me bring up an image here. So this is so we can do things here. So we can use a magic wand and make a selection and grab the gradient tool and do a gradient here, you know, things like that. So, you know, you get the idea. It's basically working here. So we can pop up another thing here. And this is showing off all the new some of the new features and stuff. So, you know, we've got the layer effects and things like that. So we've got, you know, another image here. We can do a little painting, painting, painting. Thank you. So and, you know, we've got the hey, my schoolboys are working.

Cool. They weren't working a little while ago. So, you know, we've got that. We've got, you know, screen updating, drawing, all that kind of stuff. So it's kind of working here. So and this is this is not Macintosh. This is not Mac OS. This is not the blue box. So this is using the carbon APIs. And, you know, the thing that I guess that I'm most stoked about is, well, there's two things. One of them is that you don't realize how many places in your code that you have hacked around problems in Mac OS where you have to go read low memory global or go stomp on in order to get past some problem with Mac OS. And so there were, you know, a number of cases where I was bringing it up where it was crashing. I didn't have to reboot the machine once. And I was so stoked.

That was that was the best part for me. So anyway, so this all happened. So this basically happened in the course of about, you know, eight or nine days with a lot of other insane things going on. So there's still some work left to do. And we're going to be working closely with Apple to to help work out some of the kinks and stuff. But this looks pretty good to me. Thanks. So it's clearly very interesting to have Apple engineers working like crazy to pull all this together for today. And they did a great job with that. Thank you, guys. But it's even especially interesting and gratifying to see people at Adobe and Macromedia just totally getting behind this and trying to get stuff.

And in some cases being successful up here on stage. Let me also repeat that we have the draft spec available today. We had some tech writers who worked very hard to pull this together in time. And this will be available on your way out. I do want to reiterate, this is only a draft spec. We want to get your feedback. We will change things in here if we need to. That's not a problem. We also have a porting lab here this week where you can if you've brought your apps with you, you can bring them in and we can run the tools on them either today or later this week. If you didn't bring them with you or you can't get a chance to get over the porting lab, just go to that URL that Steve put up and all the information is there, including the downloads for the tools themselves. So with that, let me get Steve back up here.

So last week we rolled out what we've been working on for 10 months at Apple, our complete product strategy. And it's really simple. It's really clean. And I think the quality of the products and the excitement of the products is going to be really good. We've been working just as hard for the last 10 months on our software strategy. And we believe it's really simple and really clean and we're going to execute really well on it. And this is our crown jewel, Mac OS. And we are going to have two great versions of Mac OS. We'll see if they intersect in the future. We're going to have some great releases of System 8. We've got a draft spec of OS 10 today, beta in Q1 of next year, 10.1 in Q3 of next year.

A very simple, clean strategy that's going to take the Mac OS into the next century. A little bit of evolution for a lot of revolution. We think we're on the right track and we really appreciate your support. We hope you really love it. Thank you very much. Applause