Steve Jobs on Mac OS X: Aqua and the Digital Hub

Good morning. Good morning. We're really glad to be here. We've got some great stuff to show you today. Some of it is stuff that we introduced last month at Macworld in San Francisco, and some of it is brand new here for the first time. So we look forward to showing you some great stuff today. Well, let's get started.

Now you can help me today. You can help me by just letting me know if you like something, okay? That'd be great. So, first thing I want to talk about today is one of the most important, and that is Mac OS X. Mac OS X is going to go on sale on March 24th for 14,800 yen. You're going to be able to go and buy your own copy. And that is coming out in Japanese on the same day. We're going to be shipping one CD-ROM around the world with all of our core languages on it. So Japanese will be on every CD we ship around the world on March 24th.

So, let's examine the architecture of Mac OS X for a second. The architecture has four layers, Darwin, the foundation, the graphics, the frameworks, and the new user interface, Aqua. So let's take a look at Darwin. Darwin offers us some amazing new features for the Mac. First and foremost, protective memory so you don't crash. Secondly, virtual memory so that the computer manages the memory for you. You don't have to figure out how much memory to allocate to each application. Third, preemptive multitasking so that one application doesn't block other applications. Next, multithreading to help you juggle activities even more seamlessly.

Next, symmetric multiprocessing so that you get automatic acceleration when you add that second processor. We have VSD Unix services. This is a true Unix machine. We have VSD Unix. You can talk to enterprise systems. You can talk to the rest of the world. Fully open source. We have open source Darwin. So we have a Linux-like community already making major contributions to Darwin that we're incorporating back into Mac OS X. So that's Darwin. Next is our graphics. We have three core systems in our graphics. Quartz, our whole new 2D graphics engine, OpenGL for 3D and QuickTime.

So Quartz. Quartz renders PDF on the fly and anti-aliases it as well. We support all font formats and we support compositing and transparency right in the graphics model. And you'll see what that means in a second. It's fast and it's stunning. And so that's Quartz. OpenGL. OpenGL is an industry standard 3D API for gaming and for high-end professional imaging. And we'll see some of that today as well. It takes full advantage of the hardware acceleration in the graphics chips and it's also optimized to take advantage of the velocity engine in the G4. So that's OpenGL. And of course, QuickTime we all know.

Industry standard. It's based on QuickTime 5. It's integrated right into the OS so it can take advantage of the better plumbing in Mac OS X. So that is our graphics layer. We think it's superb. We think we have killer graphics in Mac OS X. And then our frameworks. We have three core frameworks in Mac OS X. The first is Classic. Classic runs existing Mac OS 9 apps as is and it runs almost all Mac OS 9 apps. It's pretty amazing. But these applications don't get all the benefits of Mac OS X. They don't get preemptive multitasking. They don't get protected memory. They don't get Quartz. And so to take advantage of these new features, developers are tuning up their Classic apps to go to Carbon.

It's a tune-up that takes a few months and all of a sudden their application springs to life taking advantage of all the new features in Mac OS X. And then for those developers writing new apps, we have an extremely advanced object-oriented API called Coco. It's the fastest way to write an app in the industry and it's pretty amazing. So we have all three of these APIs plus Java 2. We have a complete implementation of Java 2 very fast in Mac OS X and those are our frameworks. And lastly, we have a whole new user interface on Mac OS X called Aqua which is simply stunning and I will show that to you in just a second. So that is the architecture of Mac OS X and now I'd just like to show you some of the new features since we met here a year ago last year.

So I have a computer running Mac OS X right here. This is one of the new screen savers. So here we are in Mac OS X. Now let me go ahead and just show you some of the basics of course. We of course have windows and menus but things behave a little differently. You notice when I drag around the window, it doesn't just drag around a rectangle outline, it drags around all the contents of the window. And when I resize it, you see it resizing in real time, right? Very simple, pretty nice. In addition to that, we have a whole new thing called Sheets which replaces all these panels that we used to have. Let me show you what happens when you try to go ahead and let's say save an application.

You get a sheet popping down like this. You type in its name, you say that's it. Very simple. You can say, well, what happens if the window is really small, smaller than the sheet? Well, you get this. What happens if the window is really close to the edge? Well, you get this, right? And Sheets provide an example of our philosophy in Mac OS X. This is the simplest save panel you've probably ever seen. You type in the name of the document and this gives you all your common places to save things, the desktop, the home, on your iDisk here, right in this panel here, you can save things to your iDisk. Great places, recent places.

But what if you want to save something to somewhere that's not on this list? Only then can you push this button and get a complete browser where you can browse the whole file system and decide where you want to save this. And you can even add these things to that favorite list. So you can get very simple things most of the time and when you need the complexity, you can unveil it instantly. But most of the time, things are much, much simpler than they've ever been before. Now, for those of you not familiar with the Dock, I'd like to point that out as well. This down here is the Dock. It contains your applications and also documents. You can move things around in the Dock. You can put your most popular applications there. Let me go ahead and put a few more applications there.

As I put more things in the Dock, I'll just put these apps in, it just gets smaller. And the Dock can keep getting smaller and smaller and smaller. And as you remove things, it'll just get bigger, like this. Very simple. And the Dock's got some other fun features as well. I can change the size of my Dock here for maximum size. I can also, if the Dock gets small, turn on magnification. And now look at what I get. So I can always see things. I can even have my Dock automatically hide, right, and only come up if I go to the bottom of the screen, like this, and be out of the way most of the time.

But I like it like this, and I'll just leave it up for the rest of the demonstration. Now, let me go ahead and show you what it's like to miniaturize a document. If I'm using a document and I want to keep it around but just get it off the screen, I can hit the miniaturize button, and it just goes right here, right? Let me put another document down there. And now I've got two documents, and you can see it makes thumbnails automatically, and I just click them and they come back to the right place. Let me do this in slow motion so you can see how elegantly this is done. Now let me show you QuickTime. This is the new QuickTime player, and I'll just go ahead and play this movie here.

You can see also the transparency that we have here. But let me show you something amazing. Watch this. A daring outlaw. And a princess destined to become a warrior. So you can even drag this around. See that playing right there? So, you can put anything in the dock, even things that are animated, like quick time playing movies.

Now I want to show you one other thing that we've added to the dock. We got a request by many users that when there are folders in the dock, they would like to see very quickly the contents of those folders. So watch this. I just go down and click on this, and I see all these things here now. And I can open something, boom, like that. Right from the dock. And I have this on all my running applications as well, so I can see documents from those applications. I can take anything and do this in the dock. So watch this. I'll show you something else. I can go over here, and I can take my hard disk even, my entire hard disk, and put it down here in the dock. And watch this. I can even traverse my hard disk. I can go to users. I can go to Phil or Steve right here.

I can go to documents or pictures. And I can again bring up a picture like this. My entire hard disk right here from the dock. You know? Very fast way to get this. All right. You get the idea. So we've got that. Now I want to show you some amazing stuff that is in Mac OS X. As you may know, there have never been good Japanese fonts shipped in a personal computer operating system. If you want to get over about 8,000 characters, and if you want to get a very beautiful font, you have to pay a fortune to go license these fonts on a per-computer basis.

What we have done is we have licensed the most beautiful Japanese fonts around, and we are bundling them in Mac OS X. In every copy of Mac OS X. 17,500 characters. So let me give you an example. This is just a simple document with some of these characters in it. I can bring up our new font panel and again show you the different faces that we have. It's very, very nice. Let me show you a few other documents here. Here's an example of some characters that just don't exist in normal personal computer font sets.

Characters that you normally cannot get on a personal computer without paying a lot of money. All bundled into Mac OS X. Now I'd like to show you one last thing. Here's some characters right here. And I'm going to bring up again our new font panel. Our new font panel is pretty amazing actually. It's got collections of fonts and families, and you can also shrink it down to make something even very small if you want to just leave it over here and still change sizes or change weights, etc. So I go back to my font panel, and I can just take these fonts and make them any size I want. And this is all built in to Mac OS X.

I don't think we've ever seen anything like this before. Okay. Lastly, I want to show you something we've done on the Finder that's been new. We got a lot of requests that people wanted different shortcut buttons up here than the ones that we had chosen for them. So we've allowed people to choose their own. So here we have a toolbar. I can simply go into this menu and say, customize the toolbar. And now I have all these options. I can say, well, here's my music folder. Here's my movies folder. I have a path name right here that I'll put.

I have even the ability to bring up customization with a customized bar. And I can even do things like put up my iDisc right here, right on my toolbar. And I can select icons and text or icons only, or I suppose even text only if that's what I want. And so when I'm done here now, this is my new toolbar. And I can go right to my movies, right to my music, right to my favorites. The path shows me the whole path here if I want to use that. Of course, I can change my view instantly right here. And I can even connect to my iDisc instantly by pushing this. This is going to connect me over the Internet to my iDisc on Apple servers.

There it is right there. This is my iDisc. So I can put whatever I want in the toolbar, and I can take whatever I don't use out of the toolbar, put spacers in, and customize this exactly the way I want it. And also, if I shrink the window, these things just go into a menu right here so they don't go away. Very, very simple. We think very, very powerful. So those are some of the new features I wanted to show you in Mac OS X. It's pretty amazing. It goes on sale March 24th. Now, the day Mac OS X goes on sale, the question will be, what about applications? And when we talk about applications, what we're talking about is actually not the classic applications here, because most of those will just run.

Most Mac OS 9 apps will just run on X. What we're talking about is the applications that have been tuned up for Carbon or written in Cocoa. So how are we doing on those applications? We have 400 committed developers worldwide. That represents over 1,200 brand name applications committed for Carbon and Cocoa. When will they come? They will come starting this spring. And they will build, and most of them will come out this summer, with some laggards in the fall. And so it's going to take us all year to get all the applications out for Mac OS X. But the majority of them will be coming out this summer. Now, it's my pleasure to announce a demonstration today by Alias Wavefront of their amazing application Maya.

They have Maya running on Mac OS X, and they have just entered beta for this application. And so to give us a demonstration, and to tell us about Maya running on Mac OS X, I'd like to introduce Richard Karras, the director of Maya technology from Alias Wavefront. Richard. Thank you very much. Thank you. At Alias Wavefront, when we designed Maya, our goal was to build the most innovative 3D animation system ever. And one only has to look at the quality of work our customers are doing to see how well we're achieving that goal. For example, some of the top films of all time are using Maya. Films like Star Wars Episode I, The Matrix, The Perfect Storm, The Grinch.

These images you see on the screen here were created using Maya. And now Maya is getting used for some of the most innovative games ever. It's truly become a standard for high-quality 3D graphics. And the reason is Maya is a very sophisticated application. It's extremely large. It has modeling, animation, rendering. It's also got the world's most innovative brush technologies. It's got an integrated dynamics engine. And it puts an incredible demand on the operating system. And I'm here to tell you that Mac OS X is up to the challenge. The combination of a G4 with OS X, OpenGL, and Maya is going to be incredible. This is our first Macworld Tokyo, and we're really excited to be here.

And as Steve said, we're really, really excited to tell you that we are officially in beta. That means this product is going to ship next quarter. Can't wait to see the kinds of things that the creative community from Macintosh will do with Maya on Mac OS X. Now with me today is Dan Pressman. And he's going to show you just some of the things that you can do with Maya on Mac OS X. So, Dan? Thanks a lot, Richard. So what I want to show you is how you can use Maya's animation tools to create facial animation and to give your characters expression. So you can see here I have this character's face loaded, this little girl here, as well as a bank of blend shape sliders. And what a blend shape slider allows you to do is to change the muscles in a character's face to strike facial positions.

So this is the basic tool we have for doing facial animation. For example, you could load in sound and animate to a soundtrack to have it speak dialogue. You can also change the character's expression, make it angry, or even make her smile. And, of course, you can mix these together and create an infinite number of facial expressions to choose from. Now, I also have an environment loaded here that I'd like to show you. And that's the character in a flight suit sitting in the cockpit of the spaceship. So I can zoom out, you can see that this spacecraft is on a landing pad floating above the atmosphere here and I can just zoom in. What I want to do now is show you how we can animate the ship taking off. So I can just simply select the ship and then bringing up a manipulator just start to set some keyframes. So I'll say at the first point in time I want to set a keyframe, I'll move forward and now we can just simply raise the ship up off the platform.

Notice the landing gears retract automatically there. We can raise that up and we can just rotate that around as well just to face the other direction. Notice that the engines rotate properly. We can set another keyframe and now we can translate this off into the horizon and have that fly away. So if I just rewind that, we've basically now created a simple animation of the ship taking off, retracting its landing gears and flying away into the horizon. But because Maya is a dynamic system and it's fully integrated, we can simply do things like bring in dynamics. So we've got real-time smoke colliding with the platform, being blown around with turbulence in the atmosphere. It's really quite cool to see all this taking place in real-time here. So I've actually got a movie file that I'd like to show you of the finished result of this.

I'll just bring that up. So there you can see, we pull back from the character. We've got those great particles, the landing gears retracting and flying away into the distance. And again, it's just amazing to see this type of performance on the G4. Thank you, Dan. All right. So that's a glimpse of Maya on Mac OS X and we're really looking forward to showing you more. We'll be on the exhibit floor at our distributors booth, Software 2, booth number 403. We'll see you later. Thank you very much. That's pretty great, isn't it?

We're very, very excited about Maya on Mac OS X. And so Maya is just one of the many apps that we're going to see this spring, even more in the summer, and hopefully the rest of them by fall. So here we are right now on March 24th. Another few weeks, we're going to ship Mac OS X. And again, most of the apps are going to come this summer. And so that's when we're going to start preloading Mac OS X, is when most of the apps are coming out this summer. But until then, you can buy a copy in a few weeks on March 24th, Mac OS X. We think it's going to be pretty good. I would check it out.

Next up, I would like to talk about our new PowerBook. Yeah. PowerBook G4, titanium. Our goal, we've always made the fastest notebooks in the world. We've always had the power. But there have always been thinner, sexier notebooks out there. They weren't as fast, but they had the sex. And so our goal has been to have the notebook that is not only the most powerful, but also the sexiest. That was very difficult, but we figured out a way to do it. For power, we have a 500 megahertz G4. This thing screams, and it is the fastest notebook in the world.

We have a 15.2-inch mega-wide screen, a giant landscape screen on this portable. We've got built-in DVD, so you can play movies on it and obviously read CDs and DVDs. We have a five-hour battery life on this thing, five-hour battery life standard. It is AirMac ready, so you can have wireless networking by plugging in an AirMac card. It's got a lot of power. But what about the sex? For the sex, it is one-inch thick, one-inch thick. It weighs 5.3 pounds, including the big screen and the DVD and the five-hour battery.

And it is made out of titanium. This stuff is amazing. It is stronger than steel and yet lighter than aluminum. It is absolutely the material of the future for making notebook computers out of. And so we think we've got the power and the sex in the PowerBook G4. And I'd like to show you a television ad that we've run. I hope you've seen it over here. That really gives you a feel for what it looks like. So if we could run the TV ad now. So that's what it looks like.

It's amazing. It's one-inch thick. It's got this super thin screen on it. It turns out to be this amazingly wide 15.2-inch screen. Amazing images on it. The color quality on the screen is superb. It has a full-size keyboard and a slot-load DVD drive out the front. We turn the logo around right side up, so it's correct when you open the product. On the back, we have all of our connectors, including VGA out. And of course, on the bottom, our five-hour battery. So this is the new PowerBook G4. As well, we have airport antennas built right into the sides. So all you have to do is add an AirMac card for wireless networking.

The new PowerBook G4. We have two models of it. They both have G4 processors, large caches, Rage Mobility 128 graphics chips, and a full complement of I.O., USB, FireWire, Ethernet, modem, PC card, AirMac slot, et cetera. And the two models have four and 500 megahertz processors. Of course, they both have the big screen, lots of memory, large disk drives, both have a slot-load DVD, and these are the prices. It's very competitive. And they are both Mac OS X ready, fully configured and certified to run Mac OS X. And we are shipping in volume. For those of you that have ordered one and haven't gotten it yet, I apologize.

We have so many orders for this that we're working as fast as we can to fill them. But we are shipping in high volume, and we will get you your PowerBook as soon as we can. We ship seven days a week, and we're making lots of them. So you should have one soon, and they are worth the wait. So going back to Power, one example of Power is video. And the new PowerBook G4 is superb at running Final Cut Pro. With its wide screen, it's fantastic. It is the ultimate portable editing studio. And because of the G4, it runs Final Cut Pro 60% faster than the PowerBook G3, its predecessor.

60% faster. So this is an example of the power in this product. But what about the sets? Well, one of the companies we admire is Sony. We love Sony. And they make a great product in the VAIO. It's so good that it's what we looked at when we wanted to make a sexy portable. So how did we do? Well, we start off with one of the hottest VAIOs, and we say, let's compare the screen size. Well, they have a 12-inch screen. We have a 15.2-inch screen. So if you take the PowerBook screen, and you say, how small is the VAIO? It's that small, right? That's it. That's the PowerBook.

That's the VAIO, right? The PowerBook screen is 52% larger than the VAIO screen in display area, 52% larger. So 12.1 to 15.2. Thickness, the new PowerBook is thinner than the VAIO, amazing. It's thinner than the VAIO. You can see for yourself. There's the VAIO. There's the PowerBook. It's thinner. And it's made out of a material for this new century, titanium, not last century's material, magnesium.

In terms of the optical, the VAIO does not come with an optical built in. The PowerBook G4 comes with a DVD-ROM built in. Battery life, three hours versus five hours, so bigger battery in the PowerBook G4. And it is wireless ready. You can plug in an AirMac card. Not wireless ready on the VAIO. The price, the VAIO's a little cheaper. The VAIO's a little cheaper, about, you know, a little over 10%. However, when you buy the external DVD... and a bigger battery, they're the same price. So as I said, we admire Sony.

We love Sony. We aspire to be as good as they are. And in this case, I think the PowerBook has succeeded. I think the PowerBook is now the sexiest portable in the world. G4 Titanium. So I have a video I'd like to show you about the new PowerBook, and so let's go ahead and run that now.

Our goal was to design an uncompromised product, something that was unreasonably thin, something that was very light, but at the same time was a fully featured, powerful PowerBook. The new PowerBook G4 is a real supercomputer to go. We've taken all the power, all the features, and packed them down into an amazing, thin, light, portable computer. Dude, I have to have one of these. Have to have one. And all my friends are going to have to have it too when they see it. This new PowerBook, it's incredible what they'll be able to do in the field, at home, in the office, and that's going to change the way it all looks.

It's going to change the way it all feels. Forget about it. This is it. The PowerBook G4 is the fastest notebook in the world. As a matter of fact, it's faster than most desktops. Everybody gets hung up on clock speed. But what really counts is balanced system performance. The PowerBook G4, with the new 500 megers G4 processor, delivers up to a blazing 3.5 gigaflops. To get the new PowerBook G4 so thin and light, we went to space age materials. Titanium, carbon fiber plastics, all of this produced a product that is one inch thick and less than 5.3 pounds. Titanium is a remarkable material.

I mean, it's lighter than aluminum. It's stronger than steel. It's robust. It's tough. It's durable. It really was our only choice for our new PowerBook. There's 128 megabytes of memory using the latest technology, expandable to one gigabyte. There are 10 and 20 gigabyte hard drives expandable to 30 gigabytes and a built in slot load DVD drive. There's USB, FireWire, Ethernet, 56K modem, even built in airport wireless networking. But we know that that's that's not enough, that our professional customers want something that's also extremely powerful and has a really gorgeous, huge display. Forget about gorgeous. It's a G4 and it's five pounds and it's got a five hour battery life.

That's just enough to get from L.A. to New York. Musicians can literally dispense of all of those pieces of hardware. You can sit with a laptop now and you can make a record. And I just can't think of anything more exciting than. At Genentech, we couldn't do our jobs without a Macintosh. We run our business on it. Last year, the entire human genome was sequenced. And this gives an astounding amount of information that needs to be analyzed. And I think these new G4 machines are going to allow us to do that more quickly and eventually make the world a healthier place. Radical Media is actually the only global commercial production company here who used Final Cut Pro on his PowerBook, would shoot a commercial, plug it into his PowerBook and flying from L.A.

to New York, he'd have a rough cut of his piece. The new PowerBook G4 is going to revolutionize its artists. It's not going to change it. It's going to revolutionize it. I think people have an almost visceral reaction to what's not there in terms of weight and just volume. I think people are staggered when they understand how much you can do and how little space it takes. The PowerBook G4 running Mac OS X will certainly make my personal work faster, easier, more enjoyable. I can't wait. Looking at the new G4 PowerBook, I can tell all my scientists are going to want one, but I'm going to want it first.

We've actually been waiting for something like this for a long time. My friends and I that make electronic-based music for G4 is portable. To be able to do this in a portable environment is just sick. Dude, I can't wait to use this thing on a plane, man. You know, take off with it. That's the power of this, and that's what Apple has really put in our hands. It's not about new technology. It's not about a new toy or a new box. It's a whole new way of thinking. All right. So that is the new PowerBook G4.

And again, we're working seven days a week to get them to you as fast as we can. And we're shipping in high volume, so it shouldn't be too long. Next, I'd like to talk about the new PowerMac G4. We have a new generation of PowerMac G4s. Our theme is power to burn. This is an incredibly fast product with the G4 processor as well. And now we're running at 733 megahertz, which is 5.5 gigaflops of sustained performance. We have four models going from 466 to 733 megahertz. They all have CDRW capability built in to every model. They all have 133 megahertz bus with much faster internal bandwidth.

They all have AGP 4X. And they all are using NVIDIA or the top three models, excuse me, are using NVIDIA graphics chips. The GeForce 2MX is standard in the top three models. We have a new audio system built into all of them with a 10-watt digital amplifier. And we have gigabit ethernet on the motherboard in all four models. We've also added a fifth slot. We have five slots and better PCI performance. And all of them are Mac OS X ready, fully configured, and certified. So these are our four models. Now, I want to mention something very special about the top one. We introduced last month called the SuperDrive.

It's an industry first. This is amazing to me. I've been dreaming about this for years. What is a SuperDrive? Well, if you look at what a drive can do, an optical drive, you have CDs and DVDs. A drive that reads CDs is called a CD-ROM drive, as you know. A drive that reads DVDs is called a DVD-ROM. It can read CDs and DVDs. A drive that reads and writes CDs is called a CD-RW drive. And there are going to be combination drives that combine three of the four quadrants to read CDs and DVDs and write CDs. And that'll be called a combo drive. And we're starting to see those appear in the market.

They will really start to appear this spring and summer. But what about this last quadrant? This last quadrant is the most amazing. It's called DVD-R. And it's the ability to write a DVD disc that is playable in a consumer DVD player. And we are offering all of these in the SuperDrive. The ability to read and write data on CDs. The ability to read and write audio on CDs. The ability to read and write data on DVDs. And the ability to read and write video on DVDs. All of these together is what the SuperDrive is. It's the ultimate drive. It's an industry first. And we've made it standard equipment on every high-end Power Mac.

On every 733 megahertz. We're very excited about this. And I'm pleased to announce that all four of these models are now shipping. So the new Power Mac G4 has power to burn CDs, DVDs. And oh, by the way, Pentiums too. Now, let's talk about that. Let's talk about that. The new Pentium 4 is pretty fast. From a megahertz point of view, it's really fast. 1.5 gigahertz versus the 733 megahertz G4. Which is actually faster in real-world applications? Let's find out. So I'd like to bring up Phil Schiller, our Vice President of Worldwide Product Marketing, to help me do this demo.

Phil, what have we got today? Morning, everyone. I'm really pleased to be able to show you just how fast this new Power Mac is. What we have here are two computers to set head-to-head in a real-world task, the kind of things our customers do every day, and let's see who's fastest. Up on the left-hand side of the screen, you see the fastest Mac we have ever made, a Power Mac G4 with a PowerPC G4 chip running at 733 megahertz and running macOS 9.1. On the right-hand side of the screen, we have the fastest Intel Pentium ever shipped. We have an Intel Pentium 4 running at 1.5 gigahertz and running Windows 2000 Pro.

And we're going to put these computers side-by-side in a fair showdown of exactly what our customers do every day, a professional application pushing a lot of data around, and that's Photoshop 6. Photoshop 6 runs in both machines, takes the most advantage of both processors and system architectures, and it allows us to have the same file on both machines and run through the same steps to do real work. So Steve, if you can help me bring up Photoshop. Let's do it. Now on the count of three, we're going to start these machines running, and they're running the same file, the same scripts, and this is a file given to us by a professional artist with real work he has to do in his job every day. All right. Are you ready to go?

Steve, four on the left, Pentium, four on the right. Three. Three, two, one, go. And we have a large file here, over 100 megabytes, with over 140 scripted artist actions that this artist does to create this image, and it's going to step through 22 different layers masking them, compositing them, using filters on them to finally create a movie poster. Again, the Power Mac on the left, Intel Pentium 1.5 gigahertz on the right. Done, right? Yes. Power Mac is done, and Pentium 4 is still cranking away. Keep in mind that we have customers that do this dozens and dozens and dozens of times every single day, and it adds up.

All right. Looks like the Pentium 4 is now done. Great. Thank you, Phil. So, how fast actually was that? We timed it, of course, and the G4 got done in 24 seconds. The Pentium 4 took 36 seconds to get done. What that means is the G4 is a third faster than the Pentium 4 running Photoshop in a typical application. This illustrates the megahertz myth. Megahertz is one measure of performance, but it's only one. There are many others that determine an overall system's performance, and what we see here is that if we were to compare, when we compare different processor families, it's like comparing apples and oranges when it comes to megahertz.

If we wanted to label the G4 with Intel megahertz, then to be 33 percent faster, we would have to call the G4 a two gigahertz G4, a two gigahertz Pentium G4. You see what I mean? So we've got power to burn CDs, DVDs, and Pentiums. Let me show you one other burning that we do on the new Power Macs with their CDRW drives. We can burn audio on CDs, but we also can burn data, and we've integrated something right into Mac OS 9 to make this very, very easy. Let me show you how we burn data CDs.

So I have Mac OS 9 here, and I want to burn a CD, so what I do is I simply stick a CD in, a CDR disk, blank disk, and Mac OS 9 will read it, and it will ask me how I want to format it. Do I want to format it? I could name it. I'll name it Mac World, and I can format it as a standard one, an iTunes disk, or an MP3 CD. I'll just pick a standard, industry standard disk, and I'll say prepare, and so it puts a copy of that disk right on my desktop now. There it is, and I can open it, and I can simply drag things into it. So I'll take a few files here, and I will take these files, and I will drag them into here, and it will copy them over, and now, to burn this disk, what do I do?

Do I have to open another application, like Toast? No. I don't have to do anything like that. All I have to do is close the disk, close the disk here, and all I do is I go up here and I say, burn the CD-R, and boom. Are you sure you want to burn it? Yes, I do. Yes, I am. I am sure I want to burn it. So now it's preparing the disk, it's going to save the image, and it has to go through and write some special stuff on the disk per the industry standard, and this will take just a minute or two, but this will completely write my CD-R disk in a matter of a few seconds here, and that's all it takes. Okay. Now, so power to burn, the new Power Mac G4s.

Now today, there's also a few extras that pertain to the Power Mac G4. The first, we've announced some pro speakers. Remember that we have a new audio system built into every new Power Mac G4, with a 10-watt digital amplifier, hardware equalization, very high quality, and we have these new speakers out, which are fantastic, for 7,500 yen. You can buy them today. The second extra we have is some news on our displays, our flat displays in particular. We have two flat displays, our 22-inch cinema display and our 15-inch studio display. They are both powered from the computer, so you don't need an extra power brick and an extra cord plugging in the wall.

They both have dual USB ports, so you can plug your keyboard right into your display. And these are the prices today, 3,999 and 7,999, or 428,000 yen and 88,000 yen. On the cinema display, today, we are lowering the price from 428,000 yen to 348,000 yen, or 2,999. And we will continue in the future to try to keep moving these prices down to be very aggressive. So our new display pricing is this, that.

And lastly, a big one, a big one. NVIDIA, again, we've got another industry first today. NVIDIA and Apple are major here today in Tokyo. And that major announcement is that we are announcing the next generation of graphics processors from NVIDIA that is a major, major industry first, and that is the GeForce 3. The GeForce 3 is the most advanced graphics chip ever.

This thing's amazing. It's got 57 million transistors, and internally, for its specialized graphics computations, can get up to 76 gigaflops. This thing is amazing. And it is going to be available first on the Mac. We've been working very closely with NVIDIA to make sure that our stuff and their stuff works very well together, and we've developed a great relationship with them. And we are thrilled to have this today be the announcement of the GeForce 3 and the first demonstration of it. And to do that, I'd like to bring up on stage David Kirk, the chief scientist from NVIDIA.

Welcome. Thank you, Steve. So what have we got here today? We have a demonstration. Are you going to introduce it, Steve? I'd love to introduce it. Have you seen Toy Story? Toy Story 2, maybe? Maybe A Bug's Life? These films are made by a wonderful company in Northern California called Pixar. And it takes us years to make these films and image all the graphics. Now the first film we ever made 15 years ago, the first film Pixar ever made, was called Luxo Jr.

And it was a landmark in computer graphics. We made it using a Cray supercomputer, and it took three hours for each frame to compute the graphics. Since there are 24 frames per second... That meant it took over 75 hours per second to compute the graphics for Luxo Jr. Well, we have something new today. Let's see it. Simon, you want to start? So when you first look at it, this looks just like the normal Luxo Jr. That you've seen, but there's a difference with the power of the GeForce 3.

You're able to actually interact with the running demo. This is NVIDIA's interpretation of Pixar's Luxo and Luxo Jr. Characters and with the power of the GeForce 3. We're able to calculate all the lighting and shading in real time. The GeForce 3's programmable shading pipeline is able to do realistic lighting. Realistic soft shadows. The GeForce 3's programmable geometry pipeline and hardware is able to do realistic and believable characters. You actually can believe that the lamps have personality. And the opportunity here is that cinematic, high-quality movie-style rendering can now be done in real time, interactively on the Mac. And we're very happy to have this on the Mac. If you don't get this, this is rendering this in real time.

This is not an animation loop. This is real time. And so 15 years ago, what took us 75 hours a second is now being rendered in real time on the GeForce 3. It's incredible. So that's pretty remarkable and we think the GeForce 3 is going to be a real revolution in real time 3D computer graphics and we are proud to be working with NVIDIA on this. Now, what we saw was running on Mac OS 9.

As you know, we're about to ship Mac OS 10. And I'd like to show you something using the GeForce 3 and OpenGL running on Mac OS 10. And it's not a normal something. It's something by one of the legends in 3D computer graphics and gaming, John Carmack from id Software. And John today, welcome, John. Thank you. Welcome, John. Thank you. John is going to give us worldwide first peek at something he's working on running on Mac OS 10 and the GeForce 3.

All right. What I've got here is a demonstration of our new in-development gaming engine. And this shows off some of the things that we can do with the power of the GeForce 3 in here. And all of this is actual real game code. There's no real special tricks going on here. Everything is being done real time. So the big trick that we're getting now is the final unification of lighting and shadowing across all surfaces in a game. These games have had to do these hacks and tricks for years now where we do different things for characters and different things for environments and different things for lights that move versus lights that are static. And now we're able to do all of that the same way for everything. We're able to go ahead and apply all of these on every single pixel rather than every vertex or even every object like we used to do. I mean, things that we always wanted to see, like, you know, every light casts its own highlight, every surface casts its shadow, just the way you would expect things to behave in the real world on there.

We're able to do all of these really dramatic things with, you know, bringing out so much detail, projecting lights onto things, you know, specular highlights on a per pixel basis. Just wonderful things for games where instead of having everything where this clear distinction between things that you interact with and things that are static in the world, everything behaves the same now. And look at the detail that we're able to get. These are our game characters. These aren't special high resolution models that we're using for something. You know, it wasn't too many years ago when we were lucky to have three triangles for a nose on our character. And now we've got, like, pores and bowls. And incidentally, we do do all of our animation with Maya also. So these animation loops that we've done here were created in Maya. So we're very excited about the quality that we get here.

I mean, this is like, these are the characters for our next game, some of them. And just the detail that you can see in there, we're extremely excited here. And the large scale dynamic things, like, we can move lights all over the place. We can have highlights change on everything, shadows moving every which way. And we can bring cinematic drama to a lot of the things in the game now. We can do these extremely moody, intense, and scary things. And we're not just limited to moving a couple things around inside, you know, a static little game world. I mean, every time I look at what our artists can do with this new stuff, I'm just extremely pleased with, like, what our next project's going to look like. It's a wonderful time to be in graphics. And GeForce 3 is just the most exciting thing in years that we've had to work with.

We're able to do just fabulous stuff with it. It's great. Thank you, John. It's awesome. So we think the GeForce 3 is going to be a landmark in 3D computer graphics. And again, what you saw up there was being rendered in real time. Amazing. We're going to offer the GeForce 3 on the Power Mac G4 line as a bill-to-order option from customers or resellers. So it's available across the line. We're going to ship it in late March at a cost of $600 or 68,000 yen.

GeForce 3. And the fact that we are able to bring this to you first on the Mac is a result of a partnership that's been growing between Nvidia and Apple. And we are really proud to be working with them. They're doing a great job for us. So I'd like to give David and all of his colleagues at Nvidia a round of applause for the GeForce 3. So those are the extras of the new Power Mac G4 line. Now I'd like to switch gears. And I'd like to talk about what we see going forward as our vision for where these personal computers are going.

Where are they going? We see an evolution happening in the PC. And it's not the first one. The first one started in 1980, the first great age of the PC. And that was the age of productivity. With the invention of the spreadsheet and a few years later for Apple desktop publishing, the age of productivity lasted for over a decade, almost a decade and a half. But as that age started to mature, people were wondering what's next. Well, the second great age of personal computing started in the mid 90s. And of course, that's the age of the Internet.

The Internet was fresh and new. It was amazing. It occupied almost everything we did. We didn't stop using productivity, but most of our energy focused on the Internet. And that was the second great age of personal computing. We believe we're about to enter the third great age of personal computing starting this year. And that is the age of digital lifestyle. And that age is being driven by an explosion of new digital devices. You know what they are? Cell phones. Portable digital music, both optical and solid state. Digital camcorders everywhere.

DVD players exploding. Even portable DVD players. Digital cameras now accounting for about 15% of all camera sales and climbing like this. And handheld devices like palm organizers, right? These digital devices are everywhere. And this is opening up a new digital lifestyle for all of us. We believe the Mac can become the digital hub of our emerging digital lifestyle. Adding tremendous value to these other digital devices, adding tremendous value to these other digital devices, and connecting them together as well.

And the key phrase here is digital hub. Digital hub. So all these devices, we think the PC can stand in the center. Why is that? Because the Mac can run complex applications that these devices themselves cannot run. You cannot run an application like iMovie in a camcorder. Second, because personal computers have large screens and can make a much more powerful user interface and much easier to use. Three, because we can burn disks. We can... burn CDs, and we can burn DVDs. And lastly, because we have large, inexpensive storage.

We have tens of gigabytes now in these devices to store pictures and movies and music. And lastly, because the PC connects to the internet in any and every way. It is our fundamental portal to the internet. And because of this, we think that the Mac, the personal computer, is going to be the digital hub at the center of these devices and connecting them together with each other as well. Now, we first began to understand this concept of the digital hub when we did an application called iMovie that worked with digital camcorders. And iMovie did amazing things.

You could run iMovie and plug it in, plug your Mac into your digital camcorder, and bring all the video digitally into your Mac without any extra expense. And then you could make a movie. You could edit clips, rearrange them, put transitions in, cross dissolves titles, put a CD in, and make a soundtrack. It's amazing. And you could even take your movie back to the back and compress it in QuickTime and put it up on the internet so that anyone can see it around the world. And this is an amazing thing because it relies on hardware. In the case of iMovie, that's Firewire. It relies on the operating system and QuickTime and the codecs. It relies on the application like iMovie.

It relies on the internet. And it relies on a lot of marketing to create a total solution, in this case, desktop movies. And Apple is unique in that it does all of these things. And so we can really focus on these applications and make them happen, these new solutions. And so iMovie, too, taught us that the digital hub, the personal computer running the right applications, could make a camcorder worth 10 times as much as a camcorder alone. So what did we decide to focus on next? We decided next to focus on digital music because there's a music revolution going on. Now, what do you want to do in this music revolution?

Well, you want to read your audio CDs and compress them and put them on your disc. That's called ripping your audio CDs. And you want to rip them into the standard called MP3. It's the best format available, and it's the most open. And then you want to combine your favorite songs in the playlists. And you can listen to your playlists on your computer, and you can burn your playlists on the custom audio CDs. You can make your own CDs. And this is huge. And you can play those CDs in your portable CD players, in the CD players in your car. It's huge. Everybody is making their own CDs. Drive-to-work music, workout music, et cetera.

And how do we know this? Because last year in Japan, there were over 200 million blank CD-R discs sold, over 200 million. How many people in all of Japan? It's incredible. This has been a revolution. So you want to burn your playlists onto your custom audio CDs. You want to transfer songs to portable MP3 players, like Creative Labs and RioPlayers, for example. And you can listen to internet radio stations. So how do you do this? You go out and you get a music player, an application. And these are the three big ones that have been on the market until last month. One, by Real Networks, the real player.

Another, which is the Windows Media Player for Microsoft. And a third one for MusicMatch, which HP OEMs. And this is what they look like. And as you can see, they're all really complicated. They're very difficult to learn and use. And they have a lot of restrictions. Some don't let you encode into MP3. Most of them limit the encoding quality. Most of them throttle back the encoding speed to slow you down. And all of them throttle back the CD burning speed to 2x to slow you down. Why? So that you pay the money and get an upgraded version. And they can make money. And this is what they all do. Well, last month, we decided to change this with iTunes.

And rather than having to work with something this complicated, we give you something like this that is more powerful and yet dramatically simpler at the same time. And of course, it works in Japanese. Now, what I'd like to do now is give you a demo of iTunes if you haven't seen it. Let's take a look. So we launch iTunes. And here it is. And what I'm going to do now is just rip a song. Oh, yes, OK. Let's get this disc out of here. And I will put in a CD here.

And what iTunes is going to do is read that CD and then go to the CD database and look up all the songs, because the song names are not on a CD, as you may know. And so it's just done that. And I can play a song just by clicking on it. So what I'm going to do now is I'm just going to select one song to go ahead and rip. And I'll just push this button called Import. That's all I have to do. And now iTunes is automatically bringing that in and compressing it to MP3. You can play the songs while you're importing them or not. It's importing them over eight times, real time.

It has 7.9 here, 8.2. And it's bringing in that one song. Now, when it brings the song in, it puts it in my library, right here. And there's that one song been ripped into MP3. And so you can take all your CDs and just rip them into your library. I've got a few over here. You can just drop music onto iTunes, and it'll automatically import it into its library. And so it's going ahead and bringing in the songs I just dropped on it. And it turns out there's a lot of them. I have over 1,000 songs I just dropped on iTunes here, and it's importing all of them right now. And there they are. I've got 1,007 songs in here. This is 4.4 gigabytes of music, right?

And here it is. I can go through it like this. And pretty neat. And I can just click on anything. Anything you want. So now, how do I find something, though? That's a lot of music. Well, I can do it two ways. I can use a browser. And so I've got every artist here. So I can say Bob Dylan, and I can pick Highway 61, and there's Highway 61. And listen to Desolation Row. Or I can go back and I can say, let's pick Dylan Thomas, Child's Christmas in Wales. And do not go gentle into that good night. Or anything I'd like back here, right? Joni Mitchell. Or I can go back and I can say, let's go back and I can say, let's go back and I can say, let's go back and I can say, let's go back and I can say, anything I want.

But there's a faster way to find things with iTunes. Because we've automatically indexed every song, artist, and album, and genre. And so I can just start typing, and it'll automatically filter things instantly. So let's say I want to find a Beatles song across the universe. I'll just start typing in universe. U-N-I-V, there it is. Or let's say I want to find just Joni Mitchell songs, right, J-O-N-I. There's all my Joni Mitchell songs. Or I can type in an album, let's say Highway 61 Revisited.

And mostly that's what it's found. So I can find things very, very fast here. Now, I can also build playlists. I can just say, let's build a playlist here. And I'll call this playlist Macworld. And I've got myself a playlist. And now to get things over into my playlist, all I have to do is drag them. And so I can go ahead and let me take One Week here. Whoops. One Week. There's my song, One Week. I've got two copies in here. I can drag that to my playlist. I can go back here and I can say Dylan, Bob Dylan, let's say, and drag Ballad of a Thin Man in and Highway 61 in. And I can also go back to here and browse this and say, I want to take a whole, let's say, Beatles.

I want to drag all of Abbey Road in there. I can just drag a whole album in. And now here's my playlist. These are the albums. I can rearrange them, of course, put them in any order I want. Delete them keep adding to them whatever I'd like and to burn a CD It's as simple as going back up here and hitting the burn button popping in a CD popping in a CD and Basically burning a CD. I'm not going to take the time to do that, but it works seamlessly Now in addition to that I've got two other things I can do I Can plug in a portable mp3 player? Here's a portable mp3 player A nomad 2 which I love And if I just get it in its cradle here It'll automatically pop up just a USB peripheral pops right up here in iTunes in a second There it is right now. I've got one song on it if I want to delete it I just delete it and it deletes it I can take my entire playlist or however many songs I want and let's just take one week. I just drag it over to this and it's transferring it now on to my My portable mp3 player boom there. It is done It's that simple to move music back and forth to these things and the last thing I can do is I can listen to Internet radio, so I can say You know here's some rock. I'll go find out the radio stations here All right, we're having a little trouble there. I'll go to top 40. How about that?

So here's the radio stations in top 40, and you know I just pick one and click on it You found a station with the hottest mix of the 70s 80s and today You get the idea so here we are with iTunes with Over a thousand songs in it super easy to get songs into it by just ripping your CD We've got easy to build playlists. We've got super easy to build to burn CDs. We've got Portable mp3 players right here that are super easy to transfer music to and we have Hundreds of internet radio stations all built in and that is iTunes All right So So This is what we've got and again iTunes gives us unrestricted encoding into mp3 It gives us unrestricted encoding quality it gives us unrestricted encoding speed It'll go as fast as your disk drive and computer will go and it gives you unrestricted CD burning speed again as fast as basically your your CD burner will go and It's fully integrated. It's one application that has an advanced encoding engine in it library sorting and instant searching Advanced burning engine built in an awesome visualization, which I forgot to show you let me go show it to you now Whoo can't forget that All right, let's go back Let's go back to our playlist. We'll just play this song here and what we've built right in is visualization and people are loving this

Now what's a hook me? You get the idea So awesome awesome visualization built in and all the stuff in one application, it's pretty amazing iTunes runs on Mac OS 9 and It's free. All you have to do is go download it and We've had over 750 thousand downloads since we posted it last month and it continues to go like this Now as I mentioned iTunes burns CDs But when we released it last month it only burned CDs It only worked with the CD burners in our new power Mac G force it didn't work with any others and We said at that time that in 60 to 90 days We would have an update to iTunes that would support the top three third party CD RW drives the external ones and I am pleased today to announce ahead of schedule iTunes 1.1 iTunes 1.1 We're delivering it today. That's 44 days since we announced iTunes and it supports over 25 third party read write drives

So you can get iTunes 1.1 today by going to our website and downloading it And that is iTunes and we think iTunes makes your music About ten times more interesting more flexible and more fun so The next one is near and dear to my heart and that's the DVD player What do you want to do with a computer at the digital hub with a DVD player? Well, you want to make your own DVDs and play them in consumer DVD players Nobody has been able to do that until last month when we announced the super drive and some things I'm going to show you now what you want to do is you want to shoot the footage with your digital camcorder and Then on your computer use iMovie or Final Cut Pro or Adobe Premiere or Avid to make your movies and then on that same power Mac g4 to create the DVD and to burn the DVD and then of course play the DVD in any one of The 15 million consumer DVD players out in the world today There have been three hurdles to this the first is we didn't know how to burn the disc itself The second encoding the data and the third Laying out the content for the DVD easily. Well again, the first one has been solved. That is The super drive we have that now Major breakthrough, so we've solved burning the DVD disc We then had to turn to encoding the data now DVD players use the MPEG 2 standard

Which is what's required to compress a whole movie down to one disc? But it requires Tremendous horsepower to do that compression There's two ways to do it in hardware or in software in hardware. It cost about a thousand dollars of hardware and We did not want to add a thousand dollars to the prices of our computers So we figured we had to do it in software But when we looked at the software to do it, it was very very slow Even on the fastest computers it still took about 25 times as long as the source material So to compress an hour's worth of video would take a whole day of your computer running full blast That's too long Well, we had a technical breakthrough We sent off a team of some of our scientists and using the velocity engine in the g4 They have been able to reduce This 25x software compression down to 2x and so And so to compress 30 minutes of video takes an hour to compress an hour takes two hours and the quality is fantastic it's really good quality and so we have solved encoding the data and now how does a normal person Lay out the content Well, we've solved that too with a product called iDVD and I believe this is a Revolutionary product and what I would like to do rather than tell you about it I would just like to show it to you and I'd like to demo it for you now

So we are going to make a DVD Okay, so the first thing we're going to do is launch iDVD and iDVD I DVD believe it or not is just one window and I'll name this Mac world and This is iDVD one window, so I'm going to call my DVD Mac world Let's say there we go, and I want to put some movies on it Well, I have some movies here, and how do I get a movie into iDVD? I just drag it over and boom It puts it there, and it's going to make a button for me Now I want to put a thumbnail of the movie on my button How do I do that do I have to go back to iMovie and get a frame and go to photoshop?

No, I don't have to do that all I have to do is click on the movie gives me this little scroll bar Shows me every single frame in the movie right So all may be picked out And that's my thumbnail. Now let's drag another movie in. Now, what's it going to do in terms of, do I have to lay out the buttons? No. iDVD does that for me, relays them out. Again, I can pick any frame in this I want to, you know. And I can drag a third one in here too. Boom. And it just automatically lays everything out. Now to test these things, I just click on them. And this is an iMovie as an example. Right? This is a music video.

And this is actually an iMovie one of our employees made for their grandparents. Okay. Now, let's say I want to make a submenu with things in it. What do I do? It's simple. I just push this folder button and it puts a folder up here. And I click on that folder.

And I can now drag, I'll drag two movies into this. One that was created by Maya and another that's a fun video here. And I'm going to name this just Stuff. And I will go back. Notice it puts Navigation here for me. And I will rename this Stuff too. And now a thumbnail. Again, I can pick either one of those two things to put up here. And I will go ahead and put another folder here. And again, I will drag in some, let's say I'm an ad agency. And I want to put some of my portfolio in here to show future clients. I'll put three ads in here. And I'll name this Portfolio. And again, go back up to the top here, maybe rename this Portfolio.

And now I can again pick whichever one of these I want. I'll pick Apple's famous ad 1984. And now I will also, I want to put some photographs here. And iDVD lets me have a slideshow right on my DVD. And I can go into this. And I've got some slides here. I'll just pick all these and drag them in. And I can put literally thousands of photographs on my DVD. Still photographs. And I can look at them. I can move them all around here. If I want to change the order of something, I can make the thumbnails large if I want to. And when I play back my DVD, I can have it play back manual or actually have it go through automatically. And so now I've got this. And again, I can just pick one of those photographs as my thumbnail. I'll pick that one.

And so now I've made a DVD. And if I want to, I can go ahead and preview my DVD just by hitting my Preview button. And go along here and maybe go down in here. I'll go down into this Portfolio submenu. And I can go ahead and play 1984. You get the idea. So, now let's say that I want a different look for my DVD though. Right here I've got this very professional look. I can get different looks. I can just push this button called Theme and select a different theme. In this case, it just changes the color.

Right? I can have brushed metal if I want to. But some of the themes change not only the color but the fonts and the look of the buttons. So here's one called Chalkboard. That looks pretty different, doesn't it? Everything is just automatically done for me. I can say, here's a photo album one like this. Or, this is a great one for a road trip. I've got a more personal one. Western theme. I've got a leather one here if I want. I've got all sorts of fun things. I've got a retro one here. I've even got something for something like a wedding. And if I don't like any of these, I can make my own.

And so what I can do is I can go to Custom and I can just drag a background into this thing. Let me show you that first actually. I can just drag any photo in and it'll change the background. Right? Here's a photo of Annie Mann as an example. Anything I want. And then I can also go change the text if I want to. I can bump up the title here. I can take the names of these things on the show, on each of the clips, and make them larger as well. I can do different things like this if I want to.

Whatever I want to do here. And so I can make this look like anything I want. And when it's done, all I do is push this button here and it will automatically compress the data and burn a DVD for me. It's pretty amazing. And so what I'd like to do now is show you a DVD I made earlier on a consumer DVD player. So let me go ahead and do that. I've got a consumer DVD player here. I've got my DVD. And let me just go ahead and put it in.

If I can get it out. There we go. So I will play my DVD. And there it is. And so I can just click on something here. And we'll see that right off the DVD. Let's go ahead and take a look at this again. And you can see the quality is just stunning on these things.

Let me go down here into ads. And again, maybe I'll pick, here's a Nissan commercial. And, of course, let's go back down there. Here's 1984. Today we celebrate the first glorious anniversary of the information purification practice. It is the first time in all history of a garden of pure ideology, where each worker may bloom, secure from the pests of any contradictory force.

Our own education, of course, is more powerful than any fleet or army on earth. We are one people. We are one will. One resolve. One cause. Our enemies shall talk themselves alive when we prevail with our own cause. We shall prevail. On January 24th, Apple Computer will introduce Macintosh. And you'll see why 1984 won't be like 1984. Mac's come a long way in the last 17 years, hasn't it?

Okay. Let's go. One last thing I want to show you, which is photography. Watching digital photography on a DVD is stunning. This may become, over time, the most popular way to share digital photographs, because it is so wonderful and such high quality. Look at these photographs here. These are standard digital photographs. Isn't this incredible? You can put thousands and thousands of these on one DVD. Pretty unbelievable. So, this is iDVD.

Thank you. And I have to say, this is a dream come true for me. I've wanted to do this for years now and we can take our digital camcorders and we can bring that digital data in and make movies on our computers and now we can make DVDs and burn them and Play them on our DVD players and the source of those movies isn't just iMovie It's anything that can generate a QuickTime file iMovie Final Cut Pro Adobe Premiere Avid anything and It's digital photography We are bundling iDVD for free with all systems with super drives on them We think this is going to be a big deal now in terms of media. We are also selling our own media It's Apple certified, and it's got a pretty aggressive price on it five discs for 5800 yen So iDVD we think is going to make that DVD player Worth about ten times as much when you want to play your own movies and We're starting to see the digital hub connect multiple devices the camcorder through the computer To the DVD player or the digital camera through the digital hub to the DVD player We think this is going to be really big so again our vision is that the PC is evolving from the age of productivity Through the internet age now into the digital lifestyle age Where it's the Mac is evolving to become the digital hub of all these amazing digital devices

Because it can run complex apps like iMovie iTunes iDVD Because it has a large screen that allows you to make movies or see all of your music Because it can burn CDs and DVDs it has large inexpensive storage to store your movies in your music And it talks to the internet in any and every way We think this is going to be very big and the glue that's making all this working are these applications all from Apple and This is our vision of where things are going so Got a few more things First I'd like to give you I'd like to give you an update on the cube Cube is an incredible system. We sell it as a system and as you know it's powered with the g4 processor so it's really really fast and The cube has been selling for fourteen ninety nine or a hundred and sixty eight thousand yen today We are lowering the price of the cube to twelve ninety nine or a hundred and forty eight thousand yen And we are also adding a new model Which has a hundred and twenty eight megabytes of memory 20 gig drive and a CDRW drive slot load out the top?

Of course comes with iMovie 2 Comes with iTunes, and we're pricing it at fifteen ninety nine or a hundred and eighty eight thousand yen. It's available starting today So that's the update on the cube another Update really wonderful thing itools apple has a Product called itools or a collection of products. We call itools That up to now have only been offered in English I'm pleased to announce today starting today itools is now available in Japanese I Cards email home page and I disk so here's the itis page as an example Here's the I card page you can now make of course cards with Japanese characters Here's home page builder you can now make websites with Japanese characters and home page builder and of course email So we're thrilled by this and all the localized versions of itools are up to date and lastly I'd like to talk about iMac Today I'm pleased to announce that we have some new iMacs and The biggest thing is that most of the new models have cdrw drives in them built in

They come with iTunes of course on the hard disk They all have firewire built in and they all come with iMovie on the hard disk They all have video out built in and they are all air Mac ready We have three models 400 500 and 600 megahertz G3 processors 64 and 128 megabytes of memory 10 20 and 40 gigabyte hard drives CD-ROM on the low end CD read write on the top to The prices are 899 1199 and 1499 or a hundred and eight thousand yen to a hundred and fifty eight thousand yen And We're offering them in our two most popular colors indigo and graphite But we also are today are announcing two new colors two new colors and They're great They might not be what you were expecting We've been working for about 18 months to perfect the technology to do this And we're very excited today to introduce these to you. The first one is called flower power Let's take a look at it. Come on over This is flower power Let's go to camera There you go This

Amazing pattern is actually molded right into the plastic. It's not an applied decal. It's incredible and it's incredibly Durable as well. It's beautiful So this is flower power You Pretty cool, huh? And second This Is a slide about flower power and Second is a color we call blue dalmatian Let's go ahead and bring blue dalmatian out You can see why we call it blue dalmatian These things are incredible I encourage you to go see them in person in the booth and they fit perfectly With the digital music revolution that's happening right now and the new CD RW drives built into these new IMAX All right, thank you, so this is blue dalmatian Now The low-end model of the IMAX comes in indigo the mid-range model comes in indigo and blue dalmatian and flower power and the high-end model comes in

Graphite and Indigo and blue dalmatian and flower power and the high-end model comes in Graphite and blue dalmatian and flower power and they are all available starting today And they are part of our digital hub strategy These products connect with iTunes to mp3 players They burn discs for portable discman they connect to digital They connect to digital Cameras they connect with firewire built into all of them to digital camcorders. And of course they connect to handhelds as well They have iMovie built in to make movies on them and iTunes for digital music We think they are a landmark version of the Macintosh Now I'd like you to help me with something I've got some new TV ads and I'd like to know what you think of them. We haven't run them yet and You can help me decide whether they're good enough or not So I've got five of them and why don't you let me know after each one what you think of them?

So let's go ahead and run those thanks for watching i'm really sick of new megalith boy bands

i like radio stations, i've played the same songs 15,000 times there's nothing new, everything has been created and i really hate it, you've never played the stuff i wanna hear every now and then, i turn it on again first way to see that the radio still sucks every now and then, i turn it on again first way to see that the radio still sucks we really appreciate the fact that you sat through a long presentation today we hope you like all the new stuff and we'll talk to you soon, thank you very much