Steve Jobs on the Power Mac G4 Cube: The Ultimate Desktop

Here's to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square holes, 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 things. 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.

Thank you. Thank you very much for coming this morning. We've got a lot of stuff to tell you. In addition to everybody here in the overflow rooms, I'd like to also mention that we're webcasting this with ourselves, with QuickTime Live, and using our partner Akamai. We now have over 14,000 live streams and climbing. We're broadcasting these streams up to a gigabit per second, so we're broadcasting now four gigabits per second live out of the Akamai network using QuickTime. So we've got people all over the country watching this as well. So let's get started.

I'd first like to start with something that almost every Mac user touches, and that's the mouse. This, as you may know, is our mouse. And some people don't like it. And we have many faults, but we do listen. And so some people think that this is the worst mouse in the world. We'd like to change that. And today, we are introducing a new mouse. Yay. Now, this mouse, we may go from what some people think is the worst mouse in the industry to the best. The first thing about this mouse that's extraordinary is it's optical. It uses optical tracking technology. And there are some tremendous benefits with this. It is the highest precision optical mouse on the market. There are no moving parts. There's no mouse balls to ever clean. There's no performance degradation over time. And you get this optical precision without a mouse pad on almost any surface. So you can farewell mouse pad. We're really, really happy with this.

Now you may ask, you know, this is really beautiful, and there's this continuous surface over the whole thing. Where's the button? Oh, my God. Apple's gone from a one-button mouse to a no-button mouse. No, not quite. Because it turns out that this whole continuous surface is the button. The entire surface is the button. It just levers down in the front. It fits any hand, whether it's a child's small hand or an adult's large hand, whether you're right-handed or left-handed. It works with any style. To click the mouse with just one finger, some people plop their whole palm on it. It works with any style. And it's got adjustable force, whether you like a delicate button or a slightly heavier push. The entire surface is this beautiful ergonomic button, and it works really, really well.

So the new Apple mouse. Now this turned out so well. We've been developing this for a while. It turned out so well that we want every Mac owner who uses a mouse to have it. And so we are going to make this new Apple optical mouse standard across our entire desktop line. It is the first time anyone has ever made an optical mouse standard with a personal computer. And we're going to do it across our entire desktop line. Now to go with such a great new mouse, we've also designed a new keyboard. And again, this keyboard responds to some of the requests we've got, because the most popular keyboard in Apple's history was the Apple Extended Keyboard, and we've gone with that layout. We have separate cursor clusters, full-size function keys. We even have volume keys. And there's a key right on the keyboard to eject your disk. So it's really, really nice. And again, we are going to make this standard across our entire desktop line.

Now if you own a Mac, and you say, my God, I'd sure like one of these or both of these, we're going to be selling them as upgrades for only $59 each. And you will be able to buy them on the Apple Store only. We're taking orders today, and we'll be delivering them in September. So go ahead and get in the queue, and I think you'll really, really like this. So we're going to go from what some people feel is maybe the worst mouse in the industry, to what we feel is the best mouse in the industry. And we thought it was so cool that we wanted to let everyone know, and so we're going to make a TV commercial. And I'd love to show it to you now. Let's go ahead and roll it.

Isn't that great? All right. So, brand new optical mouse, new pro keyboard, standard on every desktop computer. Now let's get into the computers that they're going to come standard on. This is our product matrix, as you know. So let's start with the Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4. Power Mac G4.

Power Mac G4. S B T S. Power Mac G4. Sound G Prepare G And G It G It G With G And G M G I G I G designed so that Bach enter G climber A G giant G a G giga G a G an G fl G a G a G g G a G i G is A G is A G a G G G G G Gin G J G Gin G Gin G Gin G Gin G Gin G Gin G G G G G 9 G G G 9 G G G G G G G G G G G G G G G G G G G G G G G G N G G G G G G G A G A G G G G G G

G G G A G G G A G G G A G G G G G G G G G G G G G G G G G G G G G A G G G G G A G G G G G G G G G G So there is a message through them and one of them is make movie posters. So we can get some great data from some folks that we work with in Hollywood on some of these great movie posters. And it makes for great comparisons in Photoshop. So tell us what we got here today Phil. Hi Steve. Morning everyone. What we have here for you up on the left hand side of the screen is the Power Mac. The Power Mac is running Mac OS 9 and the Pentium is running the brand new Windows 2000 Pro. So pretty tough match up set side by side for you. Now to show this off we use Photoshop. And Photoshop as you know is great because all of our customers in publishing and web design, they all use Photoshop.

And Photoshop is great in addition Because it takes powerful advantage of these two chips. It's accelerated for the velocity engine in the PowerPC, and it's accelerated for what's called SSE instructions in the Pentium 3. So good, fair, tough match-up of the best these processors can do. So let's open up a Photoshop file. As Steve said, we got this file from an artist who was working on a movie poster. And we asked for all the actions that that artist did to actually create this poster. And with Photoshop, we can script those actions. And with one press of a button, we'll do everything that artist did to make the poster. All right. Let's do our shootout. Count us down, Phil. 3, 2, 1, go.

All right. So we're loading up the images. It's bringing a lot of graphic files in. And it's starting to do a number of actions like transforms, moves, and copies, advanced filters, calcium blurs. Pentium's thinking. It's working. It is working as fast as it can. We're doing gradients. Really, it's the same file and the same actions. This is the kind of stuff that a lot of our customers do many, many, many times a day. And if they can save a few seconds on each iteration, it amounts to an hour or two a day. So now we're using advanced lighting effects and brushes and strokes, bringing in some more layers, using some masks.

All right. Now we're using a radio blur. So a lot of the powerful features used every day by an artist are used in this poster. All right. There, the Mac is done. Thank you. All right. The Pentium is about to start its radio blur. Gigahertz Pentium, ladies and gentlemen.

OK. There we go. So what does this tell us? What does this tell us? We have a 500 megahertz G4 against the gigahertz Pentium. If you measure the time on these, the Pentium got done in 124 seconds. The G4 completed this task in 100 seconds. And we have dozens of cases like this we could show you if we had enough time this morning. So what does this mean? If you do the math, it means a 500 megahertz G4 is as fast as a 1.2 gigahertz Pentium would be if you could buy one. OK. That's what the tests show. And it's pretty amazing. So we've got ourselves a really, really fast chip here.

And it illustrates that it's not just megahertz. It's architecture of the chip and the system that contributes to performance. Megahertz is important, but it's not the only factor, as we've just seen here. But you know, we got to thinking. Having one really fast processor is great. But you know, two brains are better than one. What if we could harness the power of two G4 chips at the same time? Well, that's exactly what we're going to do. We have a dual processor G4 here. And I'd like to invite Phil back up to find out how a dual processor G4 runs against a gigahertz Pentium running the same test.

Let's roll. All right, Phil. Well, just to orient you again, on the left-hand side is the Power Mac G4. But now it has two PowerPC G4 chips running at 500 megahertz, running Mac OS 9 again. On the right, that's one gigahertz, fastest in the world, Intel Pentium 3 running Windows 2000 Pro. So let's bring Photoshop up again. All right. 3, 2, 1, go. Again, opening up the file, starting to do our transfers, doing our moves and copies and pastes.

Photoshop takes advantage of both processors very efficiently. Yes, a little quick at those gradients. Yeah, there's a plug-in for Photoshop for multiprocessing that automatically takes advantage of the two processors inside the Power Mac. All right. Starting the radial blur on the Power Mac. All right.

Now, we could wait for the gigahertz Pentium or not. Why don't we move on? So 500 megahertz dual-processor G4 on that side, 5 gigahertz Pentium 3, and the times, the same 124 seconds by the time the Pentium completes, 61 seconds on the dual-processor Power Mac G4. If you do the math, that is equivalent to a 2 gigahertz Pentium 3, if you could buy one.

You may be able to buy one in 12 to 18 months. We're going to deliver dual-processor G4 machines starting today. We're also running at over 7 gigaflops, 7 billion instructions per second in these machines. So what are we going to do with this technology? We have three models of Power Mac G4s, all at really attractive prices, 400 megahertz, 450, and 500 megahertz. Here's what we're going to do. The 400 megahertz model will continue to have a single 400 megahertz processor in it. The 450 megahertz model, however, is going to come standard with two 450 megahertz G4s. And the high-end model is going to come standard with two 500 megahertz G4 chips.

You will not even be able to buy the two high-end models with a single processor. They're going to come standard with dual processors. It is going to be the first personal computers in history to come standard with dual processors. But we're not done yet. We've got more. On each of these models, on every Power Mac model, we are also adding gigabit ethernet on the motherboard. Gigabit ethernet is the new next generation of ethernet technology that runs at a gigabit instead of 100 megabits that most systems run at now. This is very expensive stuff if you go add a card into your computer.

We are building it onto the motherboard so it doesn't even take a slot. This stuff is really fast and opens up some whole new application areas for our pro customers. So to show us a little bit of that, here's Phil Schiller again. This is a lot of fun. This is something that other people sell on their servers for $1,000 add-on, a gigabit card. And it's built into the new Power Mac. So what we have here is a new Power Mac G4 with its built-in gigabit ethernet. And I have a second Power Mac G4 with its gigabit ethernet being an Apple Share server, something all of our customers know how to do. And so we thought, what can we do to best show you the kind of bandwidth and performance you get over that fast ethernet connection? We could move a file back and forth, but that's kind of boring.

So we thought, well, let's do some video. Let's do something others haven't done. Let's take some video from the server and play it over that gigabit ethernet. We can go even one step further. I'm going to open up a professional video editing software, Final Cut Pro, and I'm going to launch a project. And what's different about this project than any other project you might have seen before is the video is not on this Power Mac. It's on the other Power Mac playing over the gigabit ethernet. And it's not regular compressed video. For those in the business, this is uncompressed standard definition video, high quality video. So let me just play it right off. off the server pretty cool not only can i play it i mean final cut pro, i can scrub through it jump anywhere i want i'm accessing the data right off the server let's just go create an in point like i'm going to edit my own video create an out point drag it off, do an edit i'm working with the video, editing a project right off the server over gigabit ethernet but just to make it even more fun let's open it up make it really big and play it directly from the server over gigabit ethernet at sixteen megabytes per second, a huge amount of data for video straight between the server and the desktop

now, my boss has just disconnected the network on me to prove it we're on ethernet so gigabit ethernet on the motherboard on all three power mac models and we're upping the storage as well twenty gigabytes thirty gigabytes and forty gigabytes built into these products taking only one of the three drive bays so you can expand with two additional drives inside if you want beyond even this and of course our new optical mouse and pro keyboard so we're doing all of this dual processor standard on the top two models gigabit ethernet on the motherboard more storage in every model and our new optical mouse and keyboard and we're doing it all for the same price our teams have worked so hard to be able to throw this stuff in basically without changing prices at all we're very happy and all of these models are available today we have got a really fast chip and a really fast system architecture because two brains are better than one we're going to make multiprocessing with dual processor standard in the top two power mac models

and we think that this is going to be the best power mac ever not only the fastest macintosh but continue the power max tradition as being the fastest personal computer in the world the next thing i'd like to talk about is mac os ten mac os ten is our new operating system as you may know rewritten from the ground up it's got preemptive multitasking it's got protected memory it's got much more modern networking great plumbing it's also got a great new user interface called aqua it also supports what's called symmetric multiprocessing to take full advantage of those dual processors in the new power max so when you buy one of those new power max with dual processors you're ready for os ten we're on track to ship a public beta of mac os ten in september i think the very early part of september and we are on track to release mac os ten very early in two thousand one and it's looking great we don't have time to give a full-blown demo today but i'd like to give you just a demo of the user interface in case you've never seen it before so let me do that now this is mac os ten and uh... a few things very quickly i'll just uh...

launch a document here real quick as you notice when i move windows around the screen the whole window moves not just the outline that's also true when i resize things really nice and um... one of the problems we wanted to solve was when you get these dialogues up and you don't know which application or window they're attached to especially in a true multitasking system you may want to do something else for a while and come back and you have no idea what window that dialogue went with plus you have to manage that dialogue window separately so here's what we've done to solve that if this is a window we can say that's my save panel right on the window and so there can be no question which window this is associated with and when you're done boom it just goes away that simple and you may ask well what happens if the window is really small well if the window is really small it just does this and what what happens if the window is off screen well just does this so everything's been taken care of and now we don't have to manage our dialogues like they are more windows I want to show you one other thing about the save panel this illustrates some of the philosophy of Mac OS X you've probably never seen a save panel this simple on any computer before when you want to save something you name it and you simply push this pop-up list that says where and in here it's listed the desktop my favorite places and the recent places I've been and I can pick any one of those and save very simple but if I want to save somewhere else I just pop this little

control down here and I get a very sophisticated browser here that'll let me go anywhere so let's say I want to go into Ovi's home directory and save this in Ovi's public folder I can even add Ovi's public folder to my favorites so that the next time I get this right in here I've got Ovi's public folder so you have complexity when you need it but we hide it when you don't need it so that the user interface can be much much simpler next I'd like to just show you the finder the finder is really simple there's been some misconceptions about it too if you like your hard disk on the desktop just drag it out and uh... very easy to just launch a finder by clicking it just like you're used to right now we also let you show and hide the toolbar and uh... so I'm going to use it today I'll keep it out here's your computer and you can just navigate down here just like you've done before and I can navigate down to my documents as an example as you see I don't have to have gridding turned on I can put them anywhere I want to make any kind of a mess that I like but we save you this work because to navigate down to the most popular places because we populate this top with some shortcuts so I can get to the docks just by clicking this button or apps or my favorites or my home or other users or the computer and it's very very easy uh... to move around now I also have different views on things I have icon view I have list view and I have a new browser view and I can click back and forth between them with this little control on every finder window so we know what icon and list view are but you may not have seen browser view before browser view is very simple lets me start anywhere

and just browse along these columns so I'll pick in my home directory pick my documents and uh... I can pick one I even have a preview mode and I can see exactly where I've been I can click anywhere back there to go back and I've got a little previewer here for things I can even preview uh... movies if I want to I can uh... even have quick time vr previews and I can even preview mp3s if I want to you get the idea now the next thing I'd like to show you is the dock the dock is wonderful it's a place to put those apps you use the most those documents you use the most and miniaturized windows so this is the dock and anyone can change the size of the dock to anything that suits them they can have it small they can have it big and when you put more things in the dock it just shrinks the fit so let me go back as an example to add an application I can add an application like an image capture app anywhere in here just drop it down and boom the dock shrinks and I can move things around in the dock change any order that I might like I can also add a bunch of apps at one time if I choose to I can add all these apps and you can see the dock shrink a little bit more these are just links so when I'm done using this app I can just drag these out it just breaks the link very simple no problemo I can also add documents in the dock and it solves an age-old problem on the Macintosh which is miniaturization when you're working on something

and you want to work on something else for a little while and get it out of the way right now our miniaturization this window shade thing doesn't really get it out of the way it leaves this big window shade on your desk so what we've built in is the following you just miniaturize a window and boom it's right there with its thumbnail automatically built for you let me show you this in slow motion it's kind of fun to watch just the craftsmanship that the team has built into this is amazing isn't that nice? Watch this. Even if it's down here, watch what it does. Isn't that nice? So you always know where something's coming from and where it's going to.

And you have these at your disposal right in the dock and just click on them and boom, they're back where you left them. Now, I'd like to show you one last thing. Let me bring up a QuickTime file. It's a Mission Impossible trailer. And we can go ahead and play it here. Let me show you something. Look at this. I put it in slow-mo here.

Isn't that cool? So, one last thing. I'll show you one of the wonderful benefits of Mac OS X. We've got this app we wrote called the BOM app. And the BOM app does everything it can to crash the system. It rewrites low memory. It does all the nasty things that programmers are never supposed to do. That app crashed. And this app did pretty cool.

So, a brief overview of Mac OS X. All right. Now, we've been working with a lot of our developer partners very closely. But none more closely than Adobe. Adobe's right down the block from us. We have a fantastic relationship with them. And I'd like to invite Bruce Chisholm, the president of Adobe, up on stage to say a few words. Bruce? Hi, Steve. How are you doing? So, it's clear from the Photoshop demo that we do work really closely with Apple.

We have hundreds of engineers that are working with them on getting our applications over to OS X. They are extremely impressed. And we are absolutely committed to pulling those apps, all of those key apps. So, as Apple rolls out OS X, Adobe will be there. Many of you are Adobe customers. And you're using applications like InDesign, Go Live, Premiere, After Effects, and, of course, Photoshop, to create compelling websites, print publications, videos. The challenge is you're working with extremely large files, large and complex files. And you need those files to be manipulated quickly.

Well, you need a quick system. And now we have the ultimate system to create those compelling websites, and that is the new G4MP. It is truly the ultimate Photoshop machine. So, Steve, thanks. I can't wait to get my hands on one. Thank you, Bruce. Get him one. Okay. So, that's Mac OS X. Now, next, I'd like to talk about another partner that we work very closely with, and that's Microsoft. Our relationship with Microsoft has been getting better and better. We've been working with them very closely on another major new product for Mac customers.

And that is the new version of Office for Macintosh, Microsoft Office 2001. It looks terrific. And to show it to us, I'd like to bring up Kevin Brown, the general manager of the Macintosh business unit at Microsoft. Morning. I'm delighted to be able to stand before you and announce Office 2001 for Mac will ship this October. I'd like to show you a few things in the product. Office 2001 is important for a couple of reasons. First of all, it's the first time we've ever added anything new to Office since it was introduced back in 1991. We've added a brand-new application called Entourage. We'll show you that in a minute. Second, it's the most Mac-like product, Mac-like Office product, anyway, that we've introduced in a long, long time, probably since Word 5.1.

And third, it delivers that same great compatibility and actually improved compatibility with Microsoft Office for Windows and with the popular Macintosh application that you're using today. Let's go ahead and take a look at the product. This is Entourage. Entourage combines the same great e-mail that's found in our Microsoft Office or, excuse me, Microsoft Outlook Express 5 for Macintosh and adds an address book, a calendar, a task list, and notes. Let's take a look at one of these modules, the address book. The address book, as you see, is presented in a list. All of the entries are color-coded. I'll get to that in a minute. When I select one of these, you'll see that I get this preview pane with the most important summary information shown here.

The preview pane is only available on the Mac. You'll see that there's a gray stripe up there, and I referred to the color-coding before. Microsoft Entourage provides full support for categories, which actually synchronize with the categories on your Palm handheld device. Here, we're going to change and assign a category here, and you'll see that as we sync through, we'll sync those things with the Palm device and preserve the categories. Out-of-the-box PalmSync and this category support is available only on the Mac. Let's go ahead and take a look at some of the other applications that we've done. Let's go ahead and take a look at Word. We haven't sat still in Word either. One of the main problems that people talk to us about is that they have a difficult time getting from blank document to the finished result that they have in mind.

We've introduced this new project gallery with over 400 designs that will take you straight to that finished result that you have in mind. The project gallery is available, say it with me, only on the Mac. All right, say it with me next time. Many of these designs will come with a design wizard that will help you complete complex formatting tasks, like adding a table of contents, changing the number of columns in the newsletter. Also, things like changing the entire color scheme for your document so that you can very easily communicate the theme that you want. The design wizards are available only on the Mac. Come on. Try it with me next time. The interface for Office 2001 for Mac is more Mac-like than ever, and a big part of that are these new formatting palettes. The formatting palettes allow you to quickly apply formatting without having to go into those disruptive dialog boxes that interrupt your flow of work.

These apply to text or really anything that you select. We'll select a picture. We'll go ahead and select a picture, and you'll see that the formatting palette will change to give you some tools to apply to this picture as well, like grayscale or black and white. The formatting palettes are available only on the Mac. Thank you. All right. The next thing is people are using more pictures than ever before in their Office documents, and we want to provide a set of simple photo editing tools, not at all replacing Photoshop, of course, but giving you just the basics that you need in your application. Here, we'll go ahead and apply one of these formatting tools. The picture tools are available only on the Mac. All right. Let's go ahead and look at Microsoft Excel. Uh-oh.

Let's go ahead and look at Microsoft Excel. It turns out the number one thing that people do with Microsoft Excel is not make complex financial models, it's keep very simple lists like the one you see here. So new in Microsoft Excel 2001 is something we call the list manager. The list manager frames your data, the data we can track as a list, and provides easy tools for things like sorting. Yeah, there you go. Sorting. Applying formatting. We'll go ahead and apply some formatting. Nobody ever formats their list in Excel because as soon as you do anything like sort it, the formatting gets blown away. So the formatting is applied and survives things like sorting repeatedly. Another thing that we see people do all the time, here you see a list of songs, and we want to burn a CD with these songs on it. I'm licensed for all this music, by the way.

So we add this total row at the bottom that allows you to very easily add up all these things, and then as you filter, say I'm just going to say how much rock is on this CD I'm making, it's just that easy. List manager makes it very, very easy to keep these simple lists that people use all the time in Excel. More and more the Mac is an Internet device, so we're very sensitive to that, and we're going to provide great export to HTML tools from all of the Office applications. Here's an example of the WYSIWYG HTML that you get out of Microsoft Excel. The list manager is available only on the Mac, and we're very excited to bring that to you. Last but certainly not least, I want to point out what we've done in PowerPoint. Now, PowerPoint is a communications device.

It's not just used for big halls like this one. It's actually also used really for individual meetings people are having or just to communicate a set of ideas that you have. Multiple masters feature that we have in PowerPoint 2001, but what yeah, hey, there you go Multiple masters is available Thank you only on the Mac What's really important though is to be able to share this data with somebody else now We know that not everybody owns PowerPoint, but we do know that over 50 million people have a viewer called the QuickTime player So now with PowerPoint 2001, you're gonna be able to save that slide presentation as a QuickTime movie What you're gonna see in here is QuickTime transitions between slides some video playing within video and we're also gonna preview for you the new Marketing identity that we're unveiling at the show here. Let's go ahead and play You That's the new packaging for office 2001 it's inspired by the the same industrial design Apple's bring to their hardware It's a plastic reusable case and it's really exciting. I think it's as exciting as the software that's going inside it

Thank you very much for your time this morning I just like to thank my teams in Redmond and and in California for the hard work on this product and they'll finish the product you guys rock. Thank you Thank You Kevin and thanks to the Microsoft development team, they're doing an awesome job who would have thunk it a few years ago the best version of office on the Mac Now as long as As long as we're talking Microsoft, I want to talk one other thing real briefly here and that's games We love games and we're trying to bring as many great games to the Mac as we can And one of the best games developer for the Mac is Bungie They've been working on an incredible new game called Halo, which we've all been anticipating But the Mac gaming community was concerned when a few weeks ago And they were concerned what would that mean about the future of Bungie's games on the Mac about the future of Halo on the Mac To clear that up for us all. It's my pleasure to introduce Ed Fries, the vice president of games for Microsoft, Ed I Have a great job I Have a great job, don't I?

Basically my job has spent the last five years Taking Microsoft's money and giving it to great game developers all over the world so that they could make great games The problem has been though. I haven't had a great way to bring those games to the Macintosh We've done a few things here. We've done a few things there, but we haven't been organized about it We haven't had a great way to bring all of our games to the Mac. I'm excited to announce today that that's changing Apple and Microsoft are going to team up with the executive vice president of publishing from Bungie Peter Tampi to form a new company and That company is going to take Hopefully over time our entire line of games to the Macintosh to everybody here So We'll have Age of Empires to the Age of Kings we're gonna have flights in 2002 We're gonna have links 2002 all the other great games that we're putting together But you know Bungie, let me tell you about Bungie. You know, we're working on this other project. It's called Xbox and You know the whole reason that we wanted to get together with Bungie was so that we could bring Halo to Xbox and I know you're probably not not super excited about that But I want to bring up Alex Seropian co-founder of Bungie and he's going to talk a little about About why it's so important that that we do that Thanks, Ed. Thanks, Steve. A lot of you probably know that Bungie, we got our start on the Mac And I'm here to just let you all know that we still have a lot of love for the Mac platform and that yes Indeed, we will be bringing Halo out for the Mac

And also Steve was gracious enough to let us show a demo of Halo. So we're going to show that right now They struck without warning They struck without warning Burning our planets billions have died Mankind's last hope is the most sophisticated piece of military hardware. The universe has ever known you I want a quick, tight dispersal. If they catch us napping, this operation is as good as over.

Let's roll This ring's got something they want. One bad enough to hit a shipload of us with their whole murdering fleet I'll be damned if we don't find it first Draw off what you can Go, go, go. All I'm saying is there's a lot of unlocked doors for something that nobody's supposed to have been in in a hundred thousand years Your destruction is the will of the gods and we are their instrument We are their instrument Thanks guys. We're very excited about Halo and the rest of the Bungie games coming to the Mac So now I would like to get back to the computers that those games are going to run on This summer is iMac's second birthday It's hard to believe. Time flies when you're having fun But we introduced iMac in the summer of 1998 A lot of our competitors said it would never sell Our customers thought differently and it became an immediate hit We followed it up six, seven months later in January of 99

With the full spectrum of iMac colors and it went through the roof Changing the computer industry forever Even so, only nine months later in October 99 We introduced an all new family of iMacs Completely redesigned to feature things like slot loading CD and DVD drives Fanless operation for complete silence The best audio system on any consumer PC And of course the very popular special edition And now we're in the summer 2000, iMac's second birthday I'm very pleased to report that over these three generations of iMacs Over two years we've sold a total of 3.7 million iMacs Now that's a lot When you think about it, 3.7 million in two years is over 5,000 a day And it's over 200 per hour During this keynote alone, a few hundred will get sold Around the world, every hour of every day during the last two years One every 18 seconds So, who bought them?

We do a lot of market research And if we look at the market research over the course of those two years What's very clear is that 30% of the people that have bought iMacs are first time buyers This is fantastic And another 14% are Wintel switchers Switching from Wintel to Macintosh Which means that 44% of these people are new customers coming to the Macintosh family That's unbelievable And a statistic that is even more important to us 89% of those iMacs that we've sold are on the internet So when we set out to put the i in iMac We really did it 3.7 million iMacs later, we really did it And happy birthday iMac Now, as I said, 9 months ago we introduced our last new iMac It's been 9 months, so it's time for some new iMacs again And it's my great joy to introduce some new iMacs today We have 4 new iMac models Now, they all contain those things that make every iMac special iMac and iMac. They all have iMac's award-winning design. iMac has won every design award throughout the world in the last two years, and it's really influenced design not only in computers but in other products as well. They all have this award-winning design. They all get you onto the Internet in less than ten minutes. We have 3.7 million iMacs to prove it. It's

the easiest way onto the Internet. They all have a fast G3 processor, the fastest processor of any consumer computer. All have Rage 128 Pro graphics, the fastest graphics chip that ships in any consumer computer as standard. They all have a 56K modem, USB and Ethernet to make it really easy to hook up to almost anything. They all have a Harman Kardon Apple design sound system that's tremendous. They all have slot-loading CD and DVD drives so your kids don't use the tray as a cup holder. And they all have no fan. Our engineers figured out how to cool these things with convection cooling so that they do not require a fan, which means they operate very quietly. And because of that, you don't have to turn them off. You walk away from them and they go to sleep in a few minutes. And what that means is is that when you come back and hit any key, they wake up in less than 15 seconds.

Some other folks are talking about getting their boot times down to 30 seconds in the next year or two. We already have a computer that wakes up in about 12 seconds today. So these are the things that make every iMac an iMac. So let's go look at the four new models. Model number one, our entry-level iMac. It's going to be the best entry-level iMac ever, and it's also the best Internet appliance in the world. It comes with a 350 megahertz G3 processor, 64 megabytes of memory with up the drive to 7 1⁄2 gigabytes of storage and with a slot load CD-ROM. And it's going to come in a brand new color we call indigo, and I'd like to show it to you now. It's a beautiful new blue called indigo.

Now, with all these features and the new optical mouse and pro keyboard as standard on our entry-level iMac, the price for this thing? $799. Now, let's go look at the other models. You can now get a Mercedes or BMW for the price of a Ford Taurus. The best Internet appliance on the market, iMac, $799, all new color. Now, let's look at the other models.

Model number two, iMac DV, that stands for digital video. The purpose of this model is to bring iMovie to even more people. This model includes Firewire, our 400 megabit per second Apple-invented serial link. You can connect to disk drives with this for additional storage, and you can connect to camcorders to bring in pristine digital video right into your iMac. And it includes our iMovie software. We are so proud of this. This allows you to make movies right on your iMac, right on your desktop without reading a manual. It's so cool. And our users have thought that too, because 30% of iMac DV owners have already made an iMovie, and if you look at the percent that plan to make one in the next few months, that total goes up to 45%. That's almost half of them. And it's accelerating. It's great.

We think iMovie is a really, really big deal. And so this next model has Firewire, has iMovie, has a 400 megahertz processor, 64 megabytes of RAM, 10 gigabytes of storage, slot load CD drive, CD-ROM drive, Firewire, iMovie, and it's airport ready. So you can plug in an Apple airport wireless networking card and get 11 megabit per second wireless networking a half a football field away. And our second model comes in indigo and a new color we call ruby. I'd like to show it to you now. This color is going to be very strong. It appeals not only to women, but also to men.

It's like a beautiful deep red. And most of the folks in the engineering department, I think, are loving ruby. Ruby also comes with our new optical mouse and pro keyboard. And to get iMovie to even more people, we are pricing our second model at $999. So we are going to get iMovie to even more people. We're breaking the thousand dollar price barrier on iMovie. And it's a really big deal for us because we think this is so important. iMac TV. Our next model, number three, iMac TV Plus. Everything about iMac TV Plus more. More speed, more disk space, and a DVD slot load drive. 450 megahertz, 64 megabytes of memory, 20 gigabytes of disk space to store your iMovies, a slot load DVD ROM drive, Firewire iMovie, airport ready. Comes in indigo, comes in ruby, and it comes in a new color that we call sage. Sage is beautiful. It's like graphite with a few drops of emerald city in it. It's really beautiful. So, sage, model three, new optical

mouse, new pro keyboard, $1299. More speed, more disk, and a DVD slot load drive. iMac TV Plus. Our fourth model, iMac TV Special Edition. This has been such a popular model for us because it's the ultimate iMac. And the new ultimate iMac, the new iMac TV Special Edition, comes with a 500 megahertz processor, 128 megabytes of memory, 30 gigabytes of storage, DVD slot load drive, Firewire iMovie, and airport ready. And new optical mouse and keyboard, $1499 price. The colors it comes in are a new improved graphite that everybody's really loved. It's even a little better. And we wanted to create something special for these amazing new models of iMacs. So at the top end of our line, as a second color for iMac TV Special Edition, we have snow. It is beautiful. You have to see this thing up close. It is

so beautiful. So indigo, ruby, sage, graphite, and snow. Graphite and snow, the ultimate iMac, iMac TV Special Edition. So we have four new models. Again, indigo, ruby, sage, graphite, and snow. These are, I think, the best colors we've ever had. They're much more refined. They're informed by the tremendous popularity of the graphite. So you can see through them all. And they all include our new optical mouse and keyboard. I mean, no other manufacturer includes an optical mouse as standard, even on their most expensive computer. And we're including one as standard on our entry-level $799 iMac. We're also hitting two aggressive new price points. $799 for the best entry-level iMac ever, and the best internet appliance, and $999 getting iMovie under $1,000 so even more people can use it.

Now, if you again want to refresh your course, the $7.99 model only comes in indigo. The $9.99 model comes in indigo and ruby. The $12.99 model comes in indigo, ruby, and sage. And iMacDB Special Edition comes in graphite and snow. And they're all available today except for the $7.99 model which is going to show up in early September. So you can go see almost all of these at your Macintosh dealers very soon. And yesterday, yesterday we announced a new member of the Macintosh distribution family, Circuit City. Circuit City is going to be carrying all these new iMacs. They're amazing.

As you know, Circuit City is one of the largest distributors of computers and camcorders. And working with them, they're going to do something they've never done before. They're going to take the camcorders from one side of the store and walk them over and set them right next to the iMac DVs so they can demo iMovie. They've never done anything like that before. So we welcome Circuit City to the Mac family along with the rest of our great distributors. So these new iMacs are spectacular. And one of the most wonderful things about them are the new colors. This is the first time we've really changed colors since January of 99 when we introduced the full spectrum of colors. And we want to tell people about this. So we've made some TV commercials and I'd like to run them through for you now.

Let's run them. Well, it's a one for the money, two for the show, but really get ready now. Go, cat, go, but don't you step on my blue suede shoe. Well, you can do anything but take it over my blue suede shoe. Well, you can knock me down, step in my face, slander my name all over the place. Well, do anything that you want to do. Well, honey, lay off your little shoes and don't you step on my blue suede shoe. I said I love a girl and Ruby is her name.

Hear me talking, this girl don't love me, but I love her just the same. What I say, oh, Ruby, Ruby, I will want you like a ghost, I'm gonna haunt you. Ruby, Ruby, Ruby, will you be mine? It's not easy being green. Having to spend each day the color of the leaves. When I think it could be nicer being red or yellow or gold or something much more colorful like that.

Ooh, ooh, ooh, ooh, ooh.. Ooh, ooh, ooh, ooh, ooh, ooh. In the white room with black curtains in the station. So, I hope you have a chance to look at all these in the booth.

They are spectacular up close. All new iMacs. And this is, again, a major milestone for iMac on its second birthday. Now, I'd like to take a minute and show you something that I think is so important and so wonderful for us. I'd like to talk about iMovie for a few minutes. Because I think iMovie captures something about the DNA of Apple that's really revealing when you think about it. As you know, iMovie is possible because of a confluence of technologies. Digital camcorders, which capture video digitally. Firewire, which Apple invented and all the digital camcorder manufacturers adopted.

So, there's a Firewire jack on every digital camcorder. And we built Firewire into, of course, most of the new iMacs. So, you can plug your digital camcorder right into your iMac. iMovie software, which Apple wrote internally, which allows you to edit videos. Incredible, almost broadcast quality. It preserves the DV resolution throughout the whole editing process. Let's you make incredibly professional videos. And without reading a manual. And when you're done, you can compress them using QuickTime if you want to. To send them on the web or even put them on the internet. It's amazing. And so, we are so far ahead of anybody on this. But we're not stopping. Because today, we're announcing iMovie 2.

Our next generation of what has become the most popular video editing software in the world. It's got a new user interface that's even easier to use. And it's got those features that our users have requested most. Enhanced audio editing and some amazing new effects. And so, I'd like to show you this right now. I'd like to give you a demo. iMovie 2. All right. Now, I've got an iMovie here. And as you can see, we've adopted some Mac OS X user interface elements. Although it runs on Mac OS 9, you can get a little taste of 10 in iMovie 2. And, you know, we've got our switches to switch between the camcorder and our editing.

We've got a nicer little volume control over here. And we have clips here. We've made it so you can put as many clips in as you want. When you start to fill it up, it just adds more. We've also made it so that we use this real estate more efficiently. So when you go to transitions, it hides the clips and lets you lay out these things even easier. If I want to do certain transitions, I have more control over the directions here. I have much greater control of titles. And I can set the size of fonts much easier. Right? We've added all new effects like sepia tone. You'll automatically do that. Or black and white. We can add a soft focus as an example automatically. And, of course, our standard audio effects like that. So I'm going to go back here. And I've got a few clips here I'm just going to play. They're already in here.

And I've already laid down an audio track. I've got a clip here that I recorded early this week that I'm just going to – I could drop in here anywhere. I want it at the beginning of the film here. And I'm just going to go ahead and go back to the beginning and play all these clips. Hi, Mom and Dad. I'm sorry we haven't had a chance to see you this summer. A day at the beach with the kids. And then I set up a tripod and focused it on myself. Just hooked up the firewire cable and brought it in. But we can make this even better with iMovie 2 using some of its new enhanced audio editing capabilities. So let's go do that. I'm going to switch to the timeline here, which is also new and improved.

And I'm going to go take this first clip. And I'm going to cut it. And I'm going to go back – or second clip, sorry. I'm going to go back to my first clip and just play this. Hi, Mom and Dad. I'm sorry we haven't had a chance to see you this summer. So, you know, maybe right around here somewhere. What I'm going to do is I'm going to go up to this advanced menu where these cool new advanced features are. And I'm going to say paste over at playhead. And what it's going to do, it's going to paste that clip over, but it's going to keep the audio from the first clip and mix it together with the audio of the clip I just pasted over. Now, I'm going to go to this next clip and I'm going to cut it out. And I'm going to go back here. So right about here, let's say, I'm just going to go ahead and paste in that second clip. Now, let me go back and play this.

And I can play it full screen. I've got my control right up here. So we'll go back to the beginning. Let's play it. Hi, Mom and Dad. I'm sorry we haven't had a chance to see you this summer. Isn't that cool? It is doing this all at almost broadcast quality. So when you write this back out to your camcorder or through your camcorder to make a VHS tape, the quality is stunning. Now, I'm going to do a few more things here, show you some more of the new features. Here's a clip that's really fun. Okay.

I'm going to go up to the advanced menu and say, reverse that clip direction. Let's play it now. Isn't that great? Here's another one now. This is a biggie. So this clip, let me just go ahead and play it again. Right? I'm going to go back to my timeline. I'm going to take that clip and I can go ahead and slow it down here. I have a control to slow down or speed up any clip. So let's go ahead and take a look at this thing slowed down. So, let me do it the other way now.

Let me go ahead and speed it up. And I'm going to take that clip and I'm going to cut it and paste it and I'm going to take the next one and reverse the direction and then I'm going to take both of them together and just go ahead and cut them and paste them. And now take a look at this. And lastly, I'll drop a clip down here, which is a wonderful clip that shows how you can so easily go to the effects panel and say, I want to make this clip in sepia and it will go ahead and you can even transition into sepia. You can do a dissolve on a clip into sepia very easily. So what I'm going to do with this clip is again, I'm going to just slow it down a little bit and now I'm going to go back and I'm going to just play this whole movie full screen.

Hi, mom and dad. I'm sorry we haven't had a chance to see you this summer. You know, I am so proud of this and the people at Apple that have created this, because to me, this is at the heart of Apple.

What Apple's about is, yes, we love to make the fastest personal computers in the world and we do. And so if you want to run spreadsheets faster than everybody else, we can do that for you. And we love doing it. But even deeper, we want Apple to stand at the intersection of art and technology. And something like iMovie allows us not to just make spreadsheets, but to express ourselves in other creative ways. And I have seen the things that people have created with iMovie and they blow me away. And it makes me so proud to be working with the people at Apple that can create software and systems like this to bring this stuff to people.

So iMovie 2, we're going to include it for free in all new desktop Macs. And for those of you that want to buy it as an upgrade, we're going to have a $49 web download beginning in late August for iMovie. So that's iMovie 2. It is fantastic. Now, one more thing. We've edited our movie and it was pretty easy. We went to the beach, we took our digital camcorder, we got some footage, we came back, we plugged in our firewire cable, we woke up our iMac in 12 seconds, we used iMovie to edit it without reading a manual, we've maybe put it back out and made a videotape.

But you know what? I want to put it on a website. You know, I want everyone I know to be able to see this, or at least my family to be able to see this. But I don't know how to do this. I don't know how to program a website. I don't have a server at my house to host a website. And so we've made that really, really easy. Because in January, Apple introduced something called iTools. And the key iTools, and they're free to every Mac owner. And the two I want to talk about today is one called iDisk. This is something where you just press a button on our internet site and right on your Mac desktop pops a disk drive icon. You can open it, and it's got some folders in it for pictures and iMovies and documents.

And anything you drag into this iDisk folders is uploaded automatically to Apple's servers. And it's stored there. We give you 20 megabytes for free. And you can store stuff for free on our servers from any Mac. And anything you drag back down is copied back down. And that's been a big hit. And so you can use it this way. You can take your digital photographs and just drag them to your iDisk and they're uploaded to our server. But you can also take your iMovie and write an iMovie to, you can say, save as a QuickTime movie. And it takes a while to compress it. You might want to go have dinner. But when you come back, you'll have a QuickTime movie. And you can drag that to your iDisk and it's uploaded to our server.

And then you go to our website and you run an application called HomePage Builder. And today we're announcing a dramatically enhanced HomePage Builder that's even easier to use. Because with HomePage Builder, you can say, I want to build a photo album. And HomePage will go to your iDisk, go in your pictures file, and automatically lay out a page like this with all your photos on it. Build the thumbnails, lay it out, and allow you to edit it. And it will also allow you to make a page like this with your QuickTime movie on it. And when you say publish, it will upload these to Apple's web server and we will host it for you free of charge for all Mac customers. So I'd like to show you this now.

It's way cool. So I'm going to get out of iMovie here. And I'm going to launch Internet Explorer. Set up to go to HomePage and I've got to log in. And this is what HomePage looks like. Now I've already built a website here and I just want to go show it to you. And I click on it and this is now my website. Anybody could go to this. And I've got a resume on here that I made. Very easy to make a resume. We've got all sorts of templates here. And I've got the navigation up here, of course, that iTools does for me. We've got newsletters. You can very easily make a newsletter, in this case, a kind of summer fun in the sun newsletter.

Also, we've got a bunch of stuff for education. So teachers can make webpages that parents and kids can look at for homework assignments and there's all sorts of newsletters and school events things. And here's an example of one with photos. And this is what it would look like. It builds this automatically. And we'll build one in just a second. Anyone can go click on this and see in their browser a full-size picture, right? Very easy to do. Works with any browser on any computer. So let's go back and actually add a few pages. So I'm going to go into photo album. And I say I want to make a photo album and I get to pick one of these and I'm going to pick beach. And what it does next is it looks in my iDisc under pictures and it shows me all the things I've saved.

So I'm going to pick beach. I've got a folder with a bunch of pictures from the beach and I say choose that folder. And it'll automatically, right now, it just created all the thumbnails on the fly, it laid them out and look at this. Isn't that cool? And I can go through and say, well, I don't want this picture. I'll hide that one. I'll show this one. And watch this, though. I've never seen this on any other website. I can just move them. Isn't that cool? I've never seen anything like this before. You know? Pretty neat. And I can get up here and change all the text, make different titles. But when I'm done, oh, I can also decide I want to change themes and go back and do a little more of a modern picture frame if I want on my photos, you know? Or something a little more classical like this, more art gallery.

I happen to like the beach one. And so I'll pick that one. And then what I'm going to do is just push publish. And when I push publish, this automatically goes to Apple's web servers. It is now live on my website. I can send an iCard to tell my friends. I can hit this and this is on my website now, live. And here's my photo album, right like that. I can click any one of these and boom, get the full-size picture, you know? And you'll notice that Homepage Builder automatically added this to my navigation. So you know, here's Molly's graduation, my summer homework, and again, my beach album. So let me go back. I'm going to add one more. I'm going to say I want to make an iMovie page. And I'm going to pick, I could pick a drive-in.

We have a kind of a 50s drive-in look here. We have a few others. But I'm going to pick a retro TV, which is the one I like the best. And all I have to do is say, choose the QuickTime movie. It's going to, again, look in my iDisc. And I have only put one there. So I'm going to pick Kids at the Beach. And we'll go back. And here it is. This is it. And I'm going to go just say publish. And it's going to create my webpage, add it to my website. Tell me where it is. And I can just go back here. And anyone who goes here... Play the movie. Again, resume, newsletter, homework, Molly's graduation, beach album, and QuickTime movie.

Pretty cool, isn't it? And it's available for free to every Mac user. Again, I want to point out this complete end-to-end solution. We take our kids to the beach, we have a great day. Get some footage on that digital camcorder, bring it home. Use FireWire to plug it into the iMac. Use iMovie to make a movie in an hour or two. Compress it into QuickTime over dinner. Load it on your iDisc. Go to HomePageBuilder after dinner. Spend five or ten minutes on HomePageBuilder. And add that QuickTime movie to your personal website, which is hosted by Apple 24 by 7 at no charge. And anyone can access it.

Pretty amazing. Today we've talked about a lot of things. New Power Mac G4s with dual processors as standard in the top two models. As fast as a theoretical 2 gigahertz Pentium. We've talked about new iMacs. In stunning new colors, aggressive new price points, amazing new features. We've talked about Mac OS X coming soon. Microsoft Office 2001 coming soon. All the Bungie games continuing to come to the Mac. iMovie 2 and HomePageBuilder. That's a lot for one day. But there's one more thing.

This is our product strategy that we announced about two and a half years ago. The four quadrants. And it's served us very well. We filled them all in and we've even had a chance to go around and update most of them two or three times each. To constantly keep them fresh and aggressive. But today, the first time in two and a half years, we are expanding our product strategy. And it's not a portable. It is a new desktop machine. What is it? We are combining the power of the Power Mac G4. The awesome power of this machine. With the desktop elegance, the silence and the miniaturization that we learned from doing the iMacs.

To make a whole new class of machine. And so, we're starting with the G4 power. We're building in a really fast G4 chip into this new machine. We're building in the ability to have up to a gigabyte and a half of memory in the machine. We're building in the ability to have up to 40 gigabytes of storage inside the machine. We're adding I.O. for everything. A modem, 100 megabit per second Ethernet, USB and FireWire. You can hook up to almost anything with this machine. And airport wireless networking inside as well. Now, I know some of you are saying, well, looks like a mid-range Power Mac G4 to me. What's so new and special about this?

Well, this is where we get in to the iMac magic. Because if this is the size of a Power Mac G4, we have miniaturized all that power into something this size. Okay? From this to this. And what we've miniaturized it into is an 8-inch cube. An 8-inch cube. Unbelievable. Another way of looking at this is, if this is the Power Mac G4, and you could break it into four equal parts, we have miniaturized all the power into just one of those parts, which is an 8-inch cube.

Unbelievable. Now, you can imagine with all this power in such a dense space, we must need a turbo fan to cool this thing. But no. Our engineers have done some brilliant work, and all this power in an 8-inch cube has cooled without a fan. And so, it runs in virtual silence in an 8-inch cube. And we call this new product the Power Mac G4 Cube, or more affectionately, the G4 Cube. And I would like to show it to you now. Let's bring it out. This is a stunning product.

Quite possibly the most beautiful product we've ever designed. The computer is in an 8-inch cube, and it's suspended in a stunning crystal-clear enclosure. There's also a slot-load DVD drive. But where is it, you ask? Not sure? I guess you didn't see it. So, everything is in there. Everything is in there, very conveniently located to sit right next to you on your desk. Now, our engineers spent an enormous amount of energy figuring out how to get this amazingly powerful G4 technology into this 8-inch cube, and to cool it without a fan.

But they also spent an enormous amount of time figuring out how to get it out quickly. Because our pro customers like to get at every component in the system within a matter of a few seconds. So, here's what we did. You can take your Power Mac G4 and simply turn it over. Let's get the video here. I want you to see this. You push down on this handle, and it pops up. And you literally lift all of the technology out. You have access. You have access to every single component. And when you're done, you just put it back in, pop down the handle to lock it in.

We even have a Kensington lock to make sure you're the only one that opens your G4 cube. Pop it right back over, and you're in business. So, the G4 cube. It's amazing. DVD drive in the top. Amazing cooling system through a center channel that cools the whole thing with air so that it runs in virtual silence. The G4 cube. And again, a sizeable amount of time. And you can see how fast it is. You can see how fast it is. You can see how fast it is. The G4 cube. And again, a size comparison with the Power Mac shows how small it really is. And, just like the Power Mac allows you to access any component in seconds, so does the G4 cube allow you to get at every component in just seconds.

We're very, very proud of this. But we didn't stop there. We designed a whole system. And so we've worked with Harman Kardon to design a pair of Apple-designed stereo speakers that are gorgeous. And, obviously, our new optical mouse and pro keyboard comes with this system as well. And the system is really beautiful. And for a system like this, that's configured with a 450 MHz G4, 64 MB of memory, 20 GB of storage, slot-load DVD drive, FireWire and iMovie, for this whole system, $1799. Thank you. And we have a second model that features a 500 MHz G4 processor, 128 MB of memory, 30 GB of hard storage, DVD-ROM, FireWire, iMovie, maybe the ultimate iMovie machine.

And it's available for $2299. And this is an Apple Online Store exclusive. So you can just go to the Apple Online Store and order this. All models are available in early August, just a few weeks away. PowerMac G4 Cube. We are so proud of this thing. It is a complete system in every way. Except for displays. Oh, yeah. We have three new displays we're introducing today. I'd like to bring them out now. They are in equally stunning designs. The first, a new CRT display.

It's a 17-inch Dimetron display that's naturally flat on the front. It's totally flat, and as you can see, you can see all the way through it in the back. It's really stunning, and it's got this amazing stand on it as well that's very beautiful. It's got two USB ports built into the display, so you can plug your keyboard into the display. You don't have to have cables going back to the computer. It's got color sync built in. We calibrate it at the factory. It stays calibrated through the life of the display. And maybe the coolest thing, you know how you have a lot of cable clutter on your desk with all sorts of power cables and other kinds of cables? Well, this display is powered from the computer. One cable carries video, USB, and power from the computer, so there's only one cable replacing three, and $499.

Next display, a 15-inch flat LCD. It's really beautiful. It's the perfect companion to the G4 Cube. It's got 1024 by 768 resolution, again, two USB ports. It's got touch controls on it to bring up the display controls or even to put your system to sleep and wake it up. And it is powered from the computer with one cable, just like the other, $999. Very aggressive. Makes a beautiful companion to the new G4 Cube. And our cinema display, we have a new cinema display that's enhanced to, again, be powered from the computer with only one cable carrying USB, video, and power over the one cable.

All three of these displays go on sale today. And all three of them work not only with the G4 Cube, but with the Power Mac as well. So three new displays. We've got a video we'd like to show you about this amazing new system. So let's roll it. In first grade, when I was painting with poster paints, I painted a boat and I made the smoke go the right direction, and my first grade teacher told my mom, you should nurture his artistic ability. I've been a visual person ever since. I was an art director, I'm a designer, and I just love how the Cube looks. I mean, it's just the coolest looking computer on the planet.

The first reaction I had to the size of the G4 Cube was really one of amazement, because if you had asked me in advance how small can a supercomputer be, I never would have come close to what I saw. Three and a half gigaflops. Now that is three and a half billion operations per second. It is staggering by any measure. Ten years ago, it was unheard of in anything smaller than a washing machine. The heart of the G4 Cube is incredibly complex. I mean, it's supercomputer, but we were looking for a final design that was very simple. A design that left you with a sense of, well, of course, that's the most natural, the most elegant solution possible.

All the kind of functional characteristics are taken care of, but then there's another level of aesthetic that just lifts it and gives it spirit. Most computer companies would have said, this is an impossible task. They would have walked away from it. I mean, to take a computer four times its size and pack it down into an eight-inch cube, it seems impossible, but we did it. Being this big and being able to sustain one, two, three, or four gigaflops, we are looking at 2,000 times the volume efficiency of, say, a Cray supercomputer of the 1980s. The G4 Cube starts out with 64 megabytes of memory, expandable up to 1.5 gigabytes of RAM.

It starts with a 20-gigabyte hard drive, configurable up to 40 gigabytes. It's got all the I.O. you could ever want, Ethernet, USB, firewire, everything you need is in the cube. The Adobe users are going to love it. It has everything they require. It has the power of a G4, but it has the elegance and the design element that they care about. The G4 Cube is designed to go onto your desk, so we saw that it was crucial that we could remove both visual and audible clutter. So the team figured out a way to actually remove the fan, the product's air cord, so that it's virtually silent. Instead of sitting down at a computer that's humming and you kind of feel technology in the room, you're sitting down in the silence where you can sit and have an idea.

The DVD has a nice element of surprise in the way that it rises from the top of the cube just by magic. You flip it over, there's this little latch that you hit and it pops up and you can pull the entire core out. It almost looks like this nuclear reactor core, you know, something that you'd see in Mission Impossible. There's easy access to all the RAM, to the airport cards, to the graphics cards. You don't have to then say, gee, I'm going to upgrade the memory. What expert am I going to have to find? It's something that really an eight-year-old can do in about 15 seconds. Along with this amazing little cube, you have a new keyboard, a professional new mouse. It's optical, so there's nothing to clog your jam. We reduced the speakers to an elemental form, the sphere. They're elegant, very simple, and they sound outrageous.

I love the new flat panel display. I just think both the big one and the smaller one are just the most beautiful thing. Other people are totally in love with the way the new CRT looks, that see-through back end is, it's just so Apple. The new G4 Cube is the ultimate desktop movie-making machine. It comes with iMovie 2 software, or if you're a professional, you can step right up to Final Cut Pro. You get an idea, you walk out, you film it, you bring it back, you download it through Firewire, you can play with it in Final Cut Pro, you know, add type, whatever, and boom, it's done. Whether you do publishing, web design, video editing, this machine was made for you. If I had only seen the Power Mac G4 Cube, I would have been very impressed.

I would have said, this is going to be a very important product for Apple and for users. But it didn't stop there, and from one experience to the next, it just kept getting better and better, and I left, kind of scratched my head, thinking, is there anything that's missing from this product offering, and I'm still thinking, because I don't think there is. I think the thing that I'm most thrilled with is that the products are, I mean, they are very different, but that together they do relate as one very harmonious family.

Steve loves doing ta-da, and pulling the sheet off of stuff, and it was just another one of those ta-da's where you go, holy shit, he's done it again. So, we've been working on this for a long time, and it's so great to be able to tell you about it today.

The new Power Mac G4 Cube takes its place in an expanded product line, and if you've noticed, all three of our desktop product lines, which constitute over 75% of our unit volume, are all new as of today. It's amazing. It's amazing. And I would like, you know, it is a privilege to be able to be on the same team as the talented people at Apple. These people are not only so talented, but they're emotional, they're passionate, and they love, they put love into these products, and I hope you can see that today. And I'd like all the Apple folks in the audience to stand up, and all the folks on the satellite feed back in Cupertino and the other sides to stand up, please.

Let's give them a round of applause. I don't think there's another team on the planet that could be creating products like this. So... Thank you for coming today. We've had a lot and I started with the mouse. I'd like to end with the mouse. This optical mouse is the symbol of all the new products today for me. It comes with all the new products that you saw and it's also just a better way of doing things.

Not doing things the same old way but innovating. And it came out so wonderful that not only are we going to bundle it with all our desktop computers but I want all of you to be the first ones to get your hands on it. And so we're going to give you one today. As you leave the auditorium, as you leave the auditorium, if you have one of these tickets you will be handed a new Apple optical mouse and in just a second you'll find that you can get one of these tickets under your seat. So thank you very much for coming today. We've enjoyed showing you all our new stuff. Thank you. I wait, looking for adventure in whatever comes our way.

Yeah darling don't make it happen, take the world in a love fever. Fire all of your guns, take all the sun, explode into space. I like smoke and lightning. Every man a thunder. The whistling of the wind. And the feeling that I'm on fire. Yeah darling don't make it happen, take the world in a love fever. Fire all of your guns, take all the sun, explode into space.