Steve Jobs on Power Mac G4: The first supercomputer on a chip

Good morning, welcome to Seabold Seminars 1999 for a very exciting week here in San Francisco. I'd like to extend a special greeting to those of you joining us from around the world via satellite feed and simultaneous webcast. My name is Gene Gable, I'm the general manager here at Seabold, and on behalf of the entire Seabold team, I'd like to thank you for coming, pledge our commitment to providing you with a very exciting, educational, and entertaining week. There's many reasons to come to Seabold. One of the primary ones is to find new and innovative ways of combining words and graphics into important, entertaining, and beautiful documents.

It doesn't matter if the final results are a printed page, a webpage, an e-book, or the screen of a Palm Pilot. Increasingly, it's all of them at once. But the reason we're here this morning, a very exciting reason, is to hear from one of the companies that embodies the Seabold spirit of combining innovation, creativity, and technical excellence. I'm sure you won't have any problem in joining me in a very warm welcome for our special guest this morning, Mr. Steve Jobs. We have some really fun stuff to share with you today, so let me go ahead and get started. First, I'd like to give you just a brief update on Apple, the corporation, just a few slides and then we'll get into the fun stuff in a row.

We recently announced our profits for our last fiscal quarter, ending in June, and it was our seventh profitable quarter in a row, so Apple's doing pretty well there. In addition to that, Apple now has over $3 billion in cash with very little debt. So the company's very healthy. Now, one of the things that we think is really important is to bring operational excellence back to Apple, because in our industry, only the efficient survive. And one of the best ways to measure that is how many days of inventory you have leaving each quarter. And as you can see, we've been working that tighter and tighter and tighter every quarter.

And last quarter, we ended with less than one day of inventory, about 15 hours to be precise. And that's pretty remarkable, especially when you take a look at that relative to our competition. Compaq ended with 28 days. Gateway and Dell, the two direct players, with nine and six. As a matter of fact, we've beat Dell now for the last four or five quarters. And Apple ended with 15 hours. And of course, inventory is something in our industry that gets stale pretty fast. And lastly, we added a new board member to our board of directors. Mickey Drexler, the CEO of Gap Inc., a brilliant, brilliant executive and marketeer, has joined our board, and I think he's going to help us a lot going forward. So those are just a few things to give you an update on the overall corporate stuff.

Now let's delve into the really fun stuff. First thing I'd like to do is give you a little overview of where we are with QuickTime. I know a lot of you are very familiar with this. QuickTime is an incredibly important strategic technology and set of initiatives for Apple. We're really serious about digital media. Apple invented this stuff a long time ago. And we're really seeing some incredible success with the new versions of QuickTime. Now we are still, we thought we were finished with it, but it keeps going. The largest Internet event in history has been the downloading of the Star Wars 1 episode trailer. And as of last weekend, there have been over 25 million downloads of this trailer. Now we've offered this in several sizes.

Most everybody goes for the big one, because they want the quality. And that means that we have downloaded over 450 terabytes of data from our websites to viewers around the world on this. It's the largest Internet event in history. We also just recently introduced QuickTime 4. Now QuickTime 4 is the latest incarnation of QuickTime. It features a ton of new codecs and other great technology. But the biggest thing it features is, of course, live Internet streaming. So that you can download stuff, but you can also stream stuff live. And it's been huge. Since we put this on the web, there have been 13 million downloads of QuickTime 4 to date, skyrocketing past all of our estimates, and we're incredibly pleased with this.

We've also introduced QuickTime TV. Now if you look at video on the Internet, it's not so good in general. The quality is very poor, and the delivery consistency is very poor. We aim to change that with QuickTime TV. And so what is that all about? How do we go about that? We should look at regular television and see what are the key components to making this work. The first is a great television receiver. Then you need television stations, then you need a broadcast network, because television stations are usually local. They can't broadcast around the continent or around the world. And of course you need content. So let's look at where we stand on QuickTime TV in each of these four areas. Television receiver, well that one's easy. We've got the best one in the world, QuickTime 4, the highest quality video on the Internet.

What do we do about a television station? To broadcast content right now, all of our competitors require that you go to them and pay them a lot of money for fancy server software to run on your server. We call it a server tax. Now yeah, they give away a few baby copies, but if you want to do anything serious, you've got to go write them a big check, and all the content providers out there know that. What is a television station for QuickTime TV? It is any server running the new open protocols for streaming on the Internet, RTP and RTSP. The new industry standards, and anyone who implements those and runs a server using them can be a television station on QuickTime TV. We are not interested in making any money taxing server software.

So anyone can do this. And as a matter of fact, we've written one that conforms to the standard called the QuickTime Streaming Server. We give it away free with Mac OS X, and we also give the source code away, and it's now running on Linux, and it's running on NT, and there's more to follow very shortly. So in this Darwin Open Source Streaming Server program that we have, to give away the source code, there have been over 37,000 downloads of this Darwin Open Source Streaming Server. So there's a tremendous amount of activity, because people are tired of paying server taxes to broadcast on the Internet. So that's a television station. What about the broadcast network? Well, that's obviously the Internet. But it's not so obvious, actually, because it turns out if you're in New York and the server's here, there's a lot of traffic between New York and here on the Internet.

And the Internet does not guarantee latency, does not guarantee delivery in any period of time. And so it's very likely that your video is going to be of very poor quality. Now, what can we do about that? Well, to get around that problem, we have partnered with a company called Akamai. We've made a substantial investment in them as well. And what Akamai does is they put servers all around the Internet, all around the world. And they have almost 1,000 of them now around the world, and these servers actually intercept you when you're looking for something, direct you to the server nearest you, and broadcast the content from that server. Now, they weren't doing streaming until we came along and started working with them. And together, we're bringing QuickTime streaming services up on every single one of their servers, so that when you go to look at something in New York, you're going to be vectored to a server dynamically.

You know nothing about this that's very close to you, and you're going to get dynamite content all around the world over almost 1,000 servers today. And what about content? We've got some dynamite content in QuickTime TV. We've got some tremendous players in a few new ones almost weekly. We've got BBC World News, Bloomberg Television, Fox News. These are all broadcasting 24 by 7, by the way. Fox Sports, HBO, NPR, the Weather Channel, WGBH with some great educational content, ABC News, one of the most respected news sources in the world, ESPN for sports, Rolling Stone has got great music videos on, VH1, Disney, tremendous content from Disney.

And then two new ones today, Rhino Records and Warner Brothers Records, broadcasting on QuickTime TV. Some of these folks are only streaming in the QuickTime format. So what I would love to do now is show you some of this stuff, because we've really gotten it together with the television receiver, the station, the network, and the content. And we think QuickTime TV is going to be very, very important. So what I'd love to do now is invite Phil Schiller, our Vice President of Worldwide Product Marketing out here, to give us a demonstration of QuickTime TV. Phil? Thank you. QuickTime 4 is just doing incredibly well. We've seen so much response from customers to seeing the best content on the Internet. Let me start with the thing that really kicked it off, as Steve said. I'm sure many of you have watched the Star Wars trailer done exclusively in QuickTime. If some of you out there aren't in the 25 million or so people who have watched it, I'm just going to give you a brief glimpse of it. You can see the quality that no one else has ever delivered with content or video of the Internet.

I will not condone a course of action that will lead us to war. A communication's disruption can mean only one thing, invasion. The quality is just phenomenal. If you haven't seen it, you can still go download it, add up to those 25 million users, and see videos that nothing else delivers. Now, there's a lot that's been going on out there, and people have been doing things all by themselves. And we're just finding amazing content on the Web. For example, I'm going to click on a link now that goes out to someone else's Web site. It's Weird Al Yankovich, the musician.

Yep, and he's done his own QuickTime movie, and he's streaming it right now from his Web server. Turning on the traffic to his Web server. Try one more time. If anyone knows Weird Al right now. We'll try one last time. There we go. It's not time to watch the whole thing, but that's coming. Yep, it's coming right from Weird Al's site, over the Internet, nothing local here. Now, as Steve mentioned, we've got a lot of great content. There's a lot of great content out there. And with QuickTime TV, you don't have to scour the Internet to find all of it. We build in channels right into the QuickTime player, and all the user has to do is click a button and start watching great content. So, for example, BBC. This is coming from London, live news, 24 hours a day, playing up on the Internet. Now, again, it is live news. I have no idea what they're

broadcasting right now, so we'll just watch and see. So that's 24 hours a day, seven days a week, live news with people like BBC and Bloomberg Financial broadcasting over the QuickTime TV network. Or perhaps I want to go and check people like Fox or ABC. Doing some very exciting things with both Fox and ABC. We're using interactive features of QuickTime, taking technology from Mac Media's Flash, interactive animation, and streaming that. This is streaming animation right inside the video channel that allows us to have interactivity. We can get video and news on demand. For example, well, we can check out the Clintons on vacation. It looks like a campaign, and it sounds like a campaign. I've been from one end of the state to the other, and I'm going to be back many times. Cool. Now, maybe you're not into politics. Some of us aren't. Some of us are more into sports. So, for example, with Fox, we now have a sports channel up there. Again, we've got interactive Flash content streaming down the front end, allows us to dynamically

pick what kind of video we want to watch. I'm an East Coaster, so I'm curious about Vinny Testaverde and the New York Jets. Cool. You can watch news. You can watch sports. It's great educational content with WGBH. And as Steve mentioned, we've got a lot of new content coming out with music providers like Rhino Records and Warner. Now, this is just coming up today. I'm going to take a little risk here and try a brand new channel out just starting this morning, Warner Records.

24 hours a day, 7 days a week, music video channel. And there's a prompt right there on the bottom. Right on the bottom, there's a button that says, Buy Now. I click that, it launches my web browser, takes me right to a page to buy the CD I'm watching on the video channel, something you can't do on TV. And last, let me end with one of my favorites. My kids really love the Disney Channel. I live in an area of California where we don't get Disney Radio. Here, I can now go into the Disney Channel and listen to Disney Radio anywhere in the world broadcasting over the QuickTime TV network. Or perhaps I want to watch a new movie trailer. Hey, here's an interesting one, Toy Story 2. Let's watch that trailer. I'll bet it's good.

Cheers! Howdy, howdy, howdy folks! It's good to be back. Pretty. Wait, wait, wait, wait, wait, stop the film. Is he in this too? Excuse me, full screen boy. What would Toy Story 2 be without it? Buzz Lightyear. A good movie. The boy's back in town. Without QuickTime 4, all streaming over the internet, over the new QuickTime TV. Thanks a lot. Boy, that looks like it's going to be a good movie, huh?

So, QuickTime. There's a lot going on in QuickTime, and if you're not publishing in QuickTime, we suggest you take another look at it because it's just taken off. And the quality is the highest video and audio on the internet. So next, I'd like to give you a preview of Macintosh OS 9, the next major release of the Macintosh operating system. It's coming out in October, and it's a biggie. There's over 50 new features in it. And the theme of OS 9 is we want OS 9 to be our internet copilot. We want it to do a lot of things for us, to really take us places on the internet further and faster than we've ever been, and protect us at the same time.

So I'm going to show you, since it's OS 9, nine internet power features today, and just go through them one by one, and then we'll show you a few of them. The first one, and maybe the most startling, is Sherlock 2. We introduced Sherlock in the last major release of the Mac OS last fall, Mac 8.5. And it was an immediate hit. What Sherlock lets you do was it lets you type in natural language commands, like, you know, why is the sky blue? It would parse those, and then it can distribute that query to any number of search sites on the web, where it gets them all searching at once, and then when the results come back, it sorts them dynamically and puts them in one window for you. And Sherlock has a plug-in architecture, so you can write plug-ins. Third parties have written plug-ins. There's over 200 plug-ins for Sherlock now, for searching almost anything.

We immediately started getting questions, like, well, could we group these categories of sites together? If you have to pick which sites you want to search out of a list of 200, it's kind of a long list. And other requests, all of those we have put into Sherlock 2, and then we've gone a giant leap further. Rather than Sherlock being just your internet search detective, we have taken it even further to where Sherlock 2 is now going to be your personal shopper on the internet. And it's incredibly hot. And I'll show it to you in just a minute. So that's number one. Two, we've gotten a lot of customers saying, you know, I live in a house and there's four or five of us that use the same Mac and, you know, I don't want my kids looking at my files.

I don't want my kids messing up my desktop. And, you know, I like to use a certain browser, they like to use another browser. I get tired of reconfiguring the machine every time I come back. I have certain preferences set, they have others. Mac OS 9 handles this completely automatically. You can set Mac OS 9 up to where you can log in and once you log in, your desktop appears, your files are secure from anyone else unless you volunteer to share them. All of your preferences are set for you, the browser you like, the home page you like, just everything and it's all automatic. Now since you need a password, whether it's in a, whether you're in a college dorm or whether you're at home or in a business, since you need a password, why not be able to use your voice?

We have built in voice print passwording to Mac OS 9. Your voice is your password. On the internet, on the internet though, you know, one password doesn't get you very far, right? On the internet, you need a password for everything it seems like and, you know, to get into this server, to get into this service, passwords, they're like keys and they're falling out of our pocket. Well, what do we need? We need a keychain. We need a place to put all these keys so that when we unlock the keychain with our master password, it unlocks them all and we don't have to deal with all those other passwords completely built in to Mac OS 9, a feature called the keychain.

Next one, auto-updating. We like to come out with updates to our OS to make it even better, to add refinements to it between major releases, to fix drivers, as an example, from some of our third parties and ourselves. And we have added a feature now to Mac OS 9 where the OS can keep you up to date every single day if you want, so that you're always running the latest and greatest version of the OS, again, all automatically. Six, encryption. When you want to send files over the internet, you don't want just anybody to read them. We have built in full encryption into Mac OS 9 so you can take a file, encrypt it, decrypt it, send it over the internet using very powerful encryption technology, all built into OS 9.

File sharing over the internet. As you know, Mac has file sharing now within a local workgroup, really powerful file sharing. Now, completely extended onto the internet, there are no boundaries. You can share files over the internet exactly the same way that you share files in a local area network. This is a biggie. For those of you that use AppleScript to automate publishing workflows, it's incredible what you can do, you know, in a local area network with multiple machines coordinated through AppleScript. But what do you do if your service bureau is in New York? You go out and buy OS 9 is what you do. Because now, those same things you can do on your local area network with AppleScript, you can do over the internet in a secure fashion with AppleScript built into OS 9.

And lastly, a way to find some of those services out there, we've built in a network browser so that you can find servers on the internet as easily as you can use a printer browser to find printers on your local area network, all built into OS 9. And these are just nine of the over 50 features that we've got, and what we'd like to do now is show you a few of them. Hi again, Steve. We have here Mac OS 9 running on a Power Mac, and I'd like to show you just briefly three of the features that Steve introduced you to with Mac OS 9. First one, of course, is we're sitting here with multi-user logon, and we can choose to logon with our voice or with a password, whichever we choose.

Steve, your voice is your password. Now I have a demo in here I want to do. It's actually not in my area, it's in Steve's logon area, so I'm going to logon to that. So let me just logon to Steve's area and use my voice to log in. My voice is my password. Huh, I can't get in as Steve. Let me try to say it just how you might say it. My voice is my password. So this is a demo that hasn't gone awry. This is a demo of exactly what's supposed to happen. I've used my voice, standard microphone built into Mac OS 9, and tried to logon as Steve, and of course it's saying that I'm not Steve, and it won't let me get into his area. So Steve, if I could borrow your voice for a moment and show us how it's supposed to work when you logon with the proper voice.

My voice is my password. Thank you. So as Steve logs in, it brings up his desktop, his application, his files, his preferences, unlocks anything he's set up in his keychain to automatically unlock, all done with the simple power of using his voice. Now let me show you a second feature, and the most powerful one of all. As Steve told you, we've got the new Sherlock 2 that will be coming in Mac OS 9, and it takes Sherlock far beyond what we delivered with Mac OS 8.5. Now many of you probably are already using Sherlock and Mac OS 8.5, and you know just how it works. For those who haven't used it yet, I'll show you briefly how it works today.

I can type in a natural request. Many of you know that it's the 30th anniversary of Apollo landing on the moon, Apollo 11 first landing on the moon, something I'm very interested in. I'm going to type in that request. I want to find information on the internet about the Apollo 11 mission. I have, right down here in the window, a whole bunch of plug-ins for search engines, popular search engines around the web. I've selected AltaVista, Excite, InfoSeek, down below Lycos, and when I hit search, Sherlock sends that request out to all those search engines and starts gathering the results back to me all in this window. They all start appearing that fast, real-time, over the internet, with all those search engines ranked by relevance to my request.

So I don't have to go to all the different search sites. It comes right up here on top. I can scroll through, if I single-click on one of them, it's going to tell me a short, brief description right there. If I double-click, it launches my browser and brings me right to that web page with that page that I was searching for. I don't have to go through another engine, past the home page, I go straight to the information I want. And this is what millions of people are now using today, Sherlock, to find information on the internet. But with Sherlock 2, we've created these channels along the top, and these channels allow you to search for different kinds of information. For example, I can search for people across industry-standard LDAP servers on the internet. I can search for news from news sites.

I've selected CNET and CNN. Let's click search again, same search. Only now, instead of just generic information, I'm finding news about the Apollo 11 mission. It comes back. Not only does it give it the name and the relevance, the ranking, but it will also give us the date, because it's news, and I want to know what's the latest news. Let's pick one right here, Apollo 11 experiments. Double-click, launch my browser, right to the news page. It tells us, sure enough, Apollo 11 experiments are still returning results. Right to the news, all in seconds, not having to work through all different search engines. But most powerful of all is the ability to have different shopping or e-commerce sites built into Sherlock 2. If I click my shopping basket, I see a few examples of these.

Let's turn on Amazon Books, Music, Video, and Barnes & Noble. This time, let's look for anything, books, music, videos, that have to do with Apollo 11. Again, Sherlock sends out my request to the e-commerce sites and instantly starts getting back a list of things that meet the requirements of Apollo 11. I can now sort it by name, by price, by availability. It tells me what I can buy, when I can buy it, and how much it'll cost. It's never been any easier to find this stuff. Sort by name, Apollo 11 Mission Reports, here's one from NASA, a mission report. Double-click it, takes me right to Amazon.com, right to the page to purchase that book, and I can just put it in my shopping cart, order it, and go.

So, it's so easy to find e-commerce sites and buy goods or services. Let's do one more shopping for Apollo 11. This time, I'm going to turn on Amazon Auctions and eBay, two very different auction sites. I'm going to click search, and now I'm going to find collectibles, not books or videos, but collectibles out there on the Internet. Again, it comes back right away from those sites, gives me the price, the availability. Let's look by price. That's the cheapest thing I can buy, I'm a pretty cheap guy, Apollo 11. Right here, I can buy a 1969 National Geographic print from back when the Apollo mission landed on the moon. There it is. If I wanted to go get that book, I can go get it for $0.99 on eBay.

Let's look at the other end of the spectrum. What's the most expensive stuff I can buy? $650, that's a little high for me. Here's one, Apollo 11. A photo signed by Buzz Aldrin for $150. The auction is still up for five days. I double-click. I go right to that page. And there's the photo signed by Buzz Aldrin. I can enter my bid on this and come back and keep tracking to see whether I'm the highest bidder. So that's Sherlock 2. It's going to make it really easy for people to not only find information on the Internet, find people and news, but to make it extremely easy to shop for any goods or services you want on the Internet, all from one macOS standard interface. I have one more demo I'd like to do.

Since we're here at Seybold Publishing Show, a lot of our best and biggest customers here, I thought we'd show you some of the power of the new AppleScript inside macOS 9. As Steve told you, AppleScript can now run over TCP IP. So any computer on the Internet can be involved in your workflow. Well, last year, we stood here and showed you AppleScript running native, PowerPC native code five times faster than macOS 8.5. And millions of customers are using that to automate their workflow. And in our demonstration, we had one button I had to click, and on my computer, I completely automated making a brochure right there on the screen. And it did all the work for me. Well, now, as you can see, we have two screens up here. The computer on the left is my home computer here in San Francisco.

Big picture of the Golden Gate Bridge, makes it easy to know, right there, the left, San Francisco. On the right, I have another machine representing perhaps my service bureau in New York. Beautiful picture of the Brooklyn Bridge there. And the only thing connecting these two computers is an Internet connection. There is nothing else connecting these computers. They have a TCP IP address on the Internet. But we've set up a secure connection inside AppleScript using the new keychain feature of macOS 9. So, what I'm going to do to create a brochure, I'm going to open up FileMaker. I'm going to create a brochure from a database of information, something a lot of our customers do, database-driven publishing. I'm going to click a button right here to launch my script, and that's all I have to do, and the computer will do the rest.

It launches Adobe's InDesign. It opens up the template to create my brochure. And now it starts talking to the computer in New York, and it's saying, I need images for my brochure. The computer in San Francisco is laying out the text, laying out the document on its own, and requesting images from a database on the computer on the right. The computer on the right is not only serving up those images, but cropping and resizing them for the size requested by launching Photoshop and using Photoshop on its machine. And the power of this is incredibly obvious, to write one script that automates a workflow across multiple computers around the Internet with a secure keychain communications.

We're almost done. Two more images to go. Again, they're working in parallel. The one on the left doesn't have to wait for the one on the right. One more image to go. And we're done. So, that's really giving new meaning to the term Internet publishing. The ability to create publishing documents across the Internet is in the power of Apple Script and Mac OS 9. Thank you very much. So, we think OS 9 is going to be an incredibly great release, and we encourage you all to buy it when it comes out this October. It's your Internet co-pilot. It's going to sell for $99.

Take a look at it. It's very, very strong. We've worked very, very hard on it. And this brings us to our systems products. Now, as you know, we have a strategy to have a very simple product line and have great products in all four of these quadrants. A pro desktop and portable, a consumer desktop and portable. And at Macworld last month, when we introduced our iBook, it's been the first time we filled in all quadrants of this matrix. And we're really excited about that, and we're firing on all cylinders now. So, I'd like to review these with you briefly. First one is the iMac. As you know, the iMac, we came out with the colored iMacs.

Our code name was Lifesavers in January. They took off like a rocket, and they've been incredibly strong ever since. And iMac was one year old two weeks ago. Unbelievable. Seems like a lot longer to me. And a lot's happened in that year. We've sold two million iMacs in that year. And in North America, 90% of the iMac owners are on the Internet. It's off the charts. So they're clearly using this, you know, as their primary Internet access device. And a third of these buyers are first-time computer owners. This is tremendous, not only for them, but for Apple.

Another thing that's happened in the last year is with iMac, we pioneered universal serial bus. This was something that had been invented a while ago and was really not going anywhere, but we got behind it because we thought it was the future of all personal computing. And built it into the iMac, and the results have been staggering. We now have over 125 shipping USB devices with double that announced. And it's taken off like a rocket. And the Wintel world is now trying to catch up. It's clear that this is going to be the universal standard for medium-speed peripherals in the entire industry, with Apple leading the way. And a few great new USB devices you may want to check out in the booth. NEC has got this cute little portable scanner.

And one of the neat things about USB, of course, is you can hot-plug it in and out while the power's on without restarting the computer, without having to load drivers. And it also supplies power, so the scanner, as an example, is powered right off the USB bus. Another cool one that we're finally starting to see is the multifunction printers. There's two from Epson and one from Canon, and more on the way. They do faxing, scanning, printing, all off of USB. So USB has been a huge success. Another thing that's gone through the roof in the last year is the number of new and renewed Macintosh applications. We watch this very carefully, because this is the barometer of how well we are attracting and retaining our core developers, one of the most important constituents to Apple, and obviously to our customers. And it's gone through the roof, 4,380 new and renewed Mac apps in the last year.

And they're obviously too numerous to show them to you here today, so I picked out one that I thought you might want to see. IBM announced their via voice technology last month for the Macintosh, and it's my pleasure to invite Ozzy Osbourne, the general manager of IBM's speech systems division, up here to give us a demo. Ozzy? Thank you, Steve. It's a pleasure to be here again. It's really exciting to bring our via voice dictation product to the Macintosh. We're really taking two easy-to-use products, putting them together, and giving you more power. Last month at Macworld in New York, we announced it, and I have been getting cards and letters, emails. It's been a great success.

But instead of telling you how to do it, I think the best thing to do here is to show you. So I'm going to have Jeff Kuznets join me. He's down from our Almaden Center, down in Almaden Research Center. Let him do the demo. And so, Jeff, it's all yours. Hi. I'm Alice Cooper. And I'm here to give you a brief demonstration of via voice on Macintosh, of course. Dear readers, colon, new paragraph, you live and you learn, exclamation point. I drove all the way to San Francisco for an exclusive interview with Ozzy, comma, but I got here and I found the wrong Ozzy, period. No bats or chickens, comma, but this one was even more bizarre, period.

He talks to computers, exclamation point. And what's truly outrageous, comma, they actually listen to him, exclamation point. Sorry I won't have a music column for you this month, comma, but I think we're on to something even bigger, period. Transfer to Microsoft Word. And we're done. Truly amazing. It's really exciting to be on the Mac platform. If you want to see more, we're in the Apple booth. We're easy to find. If it's anything like Mac World, we're about 10 or 12 deep.

So come join us and we look forward to being on the Mac platform. Thanks, Steve. Two years ago, nobody would listen to us. Now we've got our computers listening to us. It's great. Okay, so 4,380 new and renewed Mac apps in the last year since iMac was introduced. And those are some of the over 15,000 products now available for Macintosh. You can go to the Apple website, look in the Macintosh product guide and peruse to your heart's content. It's August 15th, one year anniversary. So that's an update on iMac. Next, I'd like to fill you in on iBook if you haven't. heard about it. It is a whole new category of personal computer. It's saying, let's not take our 18-month or 2-year-old stale technology from the business portable world and sell it or try to sell it to consumers. Let's not do that. Let's design a product specifically for the consumer and education market for those customers that want a great portable using the best state-of-the-art technology that that price range can afford. And that's what iBook is. In essence, it's iMac to go. And that was our design goal for this product.

And it came out just beautifully. You can see them out in the booth, but it's something like you've never seen before. It includes a feature that almost no portable's ever had called a handle. And it's really great. Now, we think the most important part of a portable is actually, or any computer really, is in some ways its display. And the display on the new iBook is beautiful. It's incredibly nice. It's a 12-inch TFT display. Really beautiful display. And it has 800 by 600 dots, millions of colors. We're driving it with an ATI Rage mobility chip. For those of you familiar with that, it's blazingly fast. Matter of fact, the graphics on this thing just outshine almost everything in the market. And we're powering this thing with a 300 megahertz G3 processor. This machine is faster than the fastest computer Apple shipped a year ago at any price. And it is the fastest portable in the world, including all the Wintel portables at $5,000 and $6,000, except for one. And that's our own PowerBook.

We built in a CD-ROM drive, some memory, a disk drive, and we built in the I.O. that you need. A 56K modem, 10100 Ethernet, and USB, all built into the product. A full-size keyboard, and six-hour battery life. Six-hour battery life. So that you can take this thing to campus and back without having to bring a charger or an extra battery. You know? You can take this on a transcontinental flight without taking an extra battery or a charger. It's a big deal. All-day battery life. And we're selling this for $1,599. Complete. They're available in mid-September, so in a few weeks we're starting to ship these things, and it's looking really good. And we've already received over 140,000 orders for these things.

And this number of orders does not include Japan. We have not even started taking orders in Japan, one of the strongest portable markets in the world. So we're very, very excited about iBook. And we've got some great TV ads we're going to be running later this month. If you'd like, I'll show them to you. You want to see them? Yeah? Okay. Let's roll them. Is it possible to fall in love with a computer? Oh, yes. Oh, yes. It sure is.

You know what everybody's talking about? About how different I am. I guess they can notice the change. The way I walk. The way I talk. You turn my whole world around. You ready? You know, you see, there is more to this world than megahertz and megabytes, isn't there?

Okay. Now, another amazing thing that we introduced, first as a companion to the iBook, is our amazing airport wireless networking technology. This stuff is beautiful. It's a wireless local area network. It runs at 11 megabits per second throughput. It's industry standard all the way. IEEE 802.11. So not only us, but a lot of other companies are now announcing and beginning to make products for the standard. It offers privacy for data with 40-bit encryption. And we developed it with Lucent, who's got the best technology for this type of stuff, combined with the stuff we were doing internally, has produced a dynamite solution. Now, you start with an airport base station. And the airport base station looks like this on the back, and it's got two data ports on it. One, it's got a 56k modem built in it, so you can just plug it right into any phone line. Or, it's got a 10 megabit per second Ethernet port in it, so you can plug it into any terrestrial network, or you can plug it into any DSL modem or cable modem. Once you do that, it takes that and converts it into the wireless network. And it's $299. And up to 10 users can share one of these things.

There's other versions that will cost a little more. It'll take you up to 50 users if you want. And you can roam between these things. And then, there's the airport card. One of these airport cards slips right into the iBook, inside, and there's antennas built in every single iBook. It's wireless-ready, right from the factory. You just lift open the keyboard like you'd add more memory. You slip in this little card, put on the antenna cable, put back the keyboard, and boom, all the software recognizes it immediately, transparently. Boom, you're wireless. You don't have an hour of setup to do. It's all integrated right into the software. And the airport cards cost $99. And so, we can have up to 10 iBooks sharing one of these airport base stations. And they can be up to 150 feet away. That's half a football field. Half a football field. And, of course, you can have multiple access points, multiple base stations. So, we're really, really excited about this. We're so excited that we do what we do when we get really excited. We made a television commercial. So, I'd love to run that for you, too.

♪♪ Applause We have fun, too. So, that's Airport, and that completes the iBook story. And, again, we're just super excited about this, not only as a product, but as a whole new category of product that nobody's ever served before. And, of course, we have our PowerBooks. These are amazing products, and we just introduced our latest revision of the PowerBook in May.

It's brand new, and we've been making a lot of them, but I apologize. We haven't been able to keep up with demand. This product is very strong in the marketplace for us right now. And partly because it's the fastest portable ever made. It's incredibly fast. It's also under six pounds, and it has up to a five-hour battery life on one battery, and it accepts two batteries. So, you can get up to ten hours of battery life on this thing, and it is the best way to watch movies on an airplane ever invented. And so, we're doing as best we can to catch up with demand on this. We're shipping a lot of them, and if you have a chance to get one, they are the best portable in the world. Which brings us to our Pro Desktop.

We've got some fun news for you today here. We introduced what's called our blue and white G3 this last January, and it's based on the PowerPC G3 chip that we brought to market almost two years ago. It is regarded as the fastest desktop personal computer in the business. We'd like to make it better. What do we do to top the venerable G3? We're going to give you something even faster. We're going to give you one of these. It's a supercomputer. You laugh. You say, why do mere mortals need a supercomputer? What are you talking about?

Steve's gone loopy. Well, it turns out you actually need one now, because Photoshop filters are now resembling the most sophisticated image processing that NASA does. Internet security is demanding CIA-strength algorithms, and encoding digital media is demanding something that used to happen quickly. Now you might as well go out to lunch while it's happening. These kinds of tasks now are really slowing us down. These kinds of tasks are basically bringing today's personal computers to their knees and yet they're precisely what supercomputers were invented to do really fast. Precisely.

And we're doing them every day now, only we're not doing them really fast. So what is it that makes a supercomputer super? What precisely is it? It's this, a supercomputer can execute over 1 billion floating point operations per second. A billion, that's a lot. It's a staggering measure of performance that's known as a gigaflop, giga as in billion, flop as in floating point operation. A billion floating point operations per second. Now let me give you some examples of why you might need that. Take a Photoshop filter on a 2K by 2K image, okay?

You got 4 million pixels on the image, a very simple Photoshop filter is going to take you 400 operations per pixel, it could be many times that. That's 1.6 gigaflops to do that operation in one second. You might have 10 filters you want to run on that image and you might have 30 images you need to run it on. Four times a week. You can see how this adds up. Quick time encoding. We got 30 frames per second, a 640 by 480 image is 300,000 pixels per frame. We got 200 operations per pixel to encode it, that's 1.8 gigaflops to do this in real time. This is the kind of stuff we want to do. This is the kind of stuff we are doing, except we're doing it slowly. So we think gigaflops are going to become a very popular thing in the near future.

And this is how to get them. Who can afford their very own supercomputer, right? How many of you have a supercomputer? Not many. But that's all going to change because today we're announcing the new PowerPC G4 chip. This thing is incredible. It's the first supercomputer on a chip. It delivers a sustained performance, well before I get to that actually, it has been architected by Apple, Motorola and IBM and it delivers a sustained performance of over one gigaflops. Sustained.

And it has a peak performance of four gigaflops. It's unbelievable. And we think this thing is going to set the industry on fire. So what makes it so fast? Well if you look at a traditional processor, oh, it's something we call the velocity engine. The velocity engine is a supercomputer that's been miniaturized onto a sliver of silicon and is a part of every G4 processor chip. The velocity engine. What is that? Well if you look at a traditional processor, the high end, you've got three types of instruction units. One that calculates branches, one that does integer arithmetic and one that does floating point arithmetic.

The G4 adds a fourth called the velocity engine. But it's unlike any of the first three. The first three are 32 bits or in some cases 64 bits of information at once. The velocity engine is a 128 bit instruction unit. So this thing processes two to four times the amount of data at once as traditional processors do. But the most amazing thing is this thing can do four 32 bit floating point operations in one cycle. That's two to four times faster than anything our industry has ever seen before. And so what does that mean? Well if you're doing four instructions per cycle and you're running at 500 million cycles per second, which is what megahertz means, that's two gigaflops.

Now the velocity engine in some cases can actually do eight instructions in one cycle to get to the theoretical peak of four gigaflops. We've never seen this in a single piece of silicon before. The G4. Now how does this stack up against Intel's brand new third generation processor, their Pentium 3? We thought one of the best ways to measure it would be to go ask Intel. And so we did. We went to their website. And what we found was that Intel had written some tests for the Pentium 3 and published them right on their website.

And we were able to run those exact same tests, Intel's very own tests on the G4. Let me show you the results. The G4 was 2.9 times faster than the Pentium 3, running Intel's own tests. That's what we're talking about here. So we're very excited about this. Now this high-velocity chip deserves a high-velocity computer. And so we're going to be shipping the G4 in 400, 450, and 500 megahertz versions. All have a one megabyte L2 cache.

And there'll be a few different models. The high-end models will also include some other features, like three times the memory bandwidth over the G3s. Now what does that mean? What that means is the processor can exchange information with the memory three times faster. And that's key when you're dealing in certain types of graphic operations. It's key when you're dealing in anything where that processor's got to manipulate memory and put it back. Very important. Three X the memory bandwidth. Twice the PCI bus throughput compared to the G3s. Rage 128 graphics on AGP2X bus. Much faster graphics with 16 megabytes of graphics memory. Ultra ATA66 drives, so you can burst information twice as fast from the drives as you could on the G3.

And all of the models have FireWire built in. FireWire, we think, is incredibly important. It runs at 400 megabits per second. And it's an industry standard. Every major consumer and computer electronics company is supporting it. And we're very excited. The number of devices is now starting to take off exactly like USB did six months ago. There are over 60 announced devices, and we're just about to cross the threshold with 25 of them shipping. You'll see these things really take off in the next three to six months as well. And this is not even counting consumer electronics devices. Because there are over 7 million camcorders in the world that already have FireWire jacks on them.

Every digital camcorder. And this is very important to us because we really believe in desktop video. And now you can get video into your computer without any extra add-on cards in pristine digital quality using FireWire right off these digital cameras that sell for under $1,000. There's also hard drives, and even in this case zip drives now, with FireWire interfaces on them. They derive their power right from FireWire, so you can just plug in a little four, six gig, eight gig drive and use it as removable storage. Some of the best digital cameras in the world now feature FireWire ports built in to transfer the voluminous amount of data you get from image sensors that are now 2K by 2K. Scanners, even magneto-optical drives, there's a bunch of stuff in the Apple booth today I'd suggest you go check it out.

We think FireWire is going to be extremely important, and it's built into every single G4. And AirPort. Our wireless networking is built into the high-end models of the G4s, so you can just pop that same AirPort card right in and put your G4 on the AirPort network, and even use it as a software base station so that you don't even have to buy a hardware base station. So that's the G4, and I'd like to now show you what it looks like. You know what the G3 looks like, let me show you what the G4 looks like. This is it right here, it's beautiful.

It's like we preserved the award-winning revolutionary design of the G3 with its instant access door that gives you access to every internal component in a matter of seconds. But we've re-skinned it to reflect its power and elegance in our new pro colors. Silver, clear, and a beautiful gray we call graphite. And it's really beautiful. Let me show you some slides of that.

There it is. And again, all of the great things you've loved about the G3 are still there, instant access to every component inside. And we're going to be selling it in three models, 400, 450, and 500 megahertz. 400 has 64 megabytes of memory, all the way up to a quarter gigabyte in the 500, 10 gigabytes of storage, all the way up to 27 in the 500, a CD-ROM in the 400, a DVD-ROM in the 450, and a DVD-RAM in the 500, which means you have over five gigabytes of removable storage with immediate cost of under $40.

Who wants their floppy back? Look at the prices. Our engineering teams have been working hard. Now we're going to deliver these three models, if you listen to the rumor sites, in January, but that's not true, is it? No. We are today shipping the 400 megahertz version. After we get a batch of them off in a few weeks, we'll start shipping the 450 megahertz version, and a few weeks after that, we'll start shipping the 500 megahertz version.

So we are hitting the ground on these things substantially sooner than anyone had predicted. And again, our engineering teams have been working their tails off to bring these things to you, because we think they're so cool, and we want to get them in your hands. Now, if you don't find what you're looking for in our three models, you can go to the Apple Store and build whatever you want, custom build to order, one of over 8,000 different configurations that you can build yourself. So that is our new PowerMax G4. And now I'd like to get Phil back up on stage and we're going to show you.

Now, remember, one of our design goals for this machine was to make it the ultimate Photoshop machine. Right? We all use Photoshop day in and day out, and Photoshop can be incredibly demanding. So we wanted to build the fastest, ultimate Photoshop machine in the world. So, Phil, what's the first demo we're going to do? Photoshop, Steve. Great. This is great. I've never had the chance to demo a supercomputer before. What we have on the left screen, you're going to see a new PowerMax G4 running at 500 megahertz. On the right, it takes a little second longer to load up its stuff. It's not part of the demo. And on the right, I have the fastest Pentium PC you can buy.

It's a Compact Desk Pro, 600 megahertz, Pentium 3, all the power, all the power you can get. And what we have here is the same file on both machines, a Photoshop file created by an artist who is working on the launch of a movie in the channel. And this is actually kind of documents and steps he takes to create some point-of-sale materials. And we're going to use one of the powerful features of Photoshop 5.5, the ability to create scripts and automate your workflow inside Photoshop to run them on both machines. Now, on the hard disk of every PowerMax G4 we ship, we're including a Photoshop 5 plug-in from Adobe that automatically senses that, A, you have Photoshop 5, and, B, you're running on a PowerMax G4, loads the plug-in in that takes full advantage of the Velocity Engine.

And that's what we're running here. So, Phil. Would you like to count us down? Sure. Ready? Three, two, one, go. So the image is being created. We're bringing in graphics. We're using filters and effects, lighting effects, Gaussian blurs, transforms, all the things you need to do every single day in Photoshop. Looks like the PowerMac is off to a strong start here. Pentium's a good machine. We'll give it a chance. Now, you can recognize in these operations probably the same things you do every single day with Photoshop. Now, we're going to transform Buzz. We're going to reduce him dramatically.

Nice progress bar. This is one of those operations that just takes a second. Progress bar. This is one of those operations that just keeps us all waiting in Photoshop, as you know. And, but the wait is going to be a lot less now. All right. Let's see. Oh, we're done on the PowerMac G4. And the, the Pentium's building the floor. All right. There's Buzz. We don't get a progress bar in the Windows version, but we do get the hourglass.

Really doing its work. I wish I could make this faster for you, but. Now. We did everything we could to help it. I can tell you two things while we're waiting. The first one is, if you think everything this fall has to do with Toy Story 2, well, you're right. And, secondly, to take some of the suspense out of the demo, the PowerMac G4 executing these very common Photoshop tasks is 2x, literally twice as fast as the fastest Pentium 3 money can buy running at 600 megahertz. Twice as fast. It feels more than that. It does. Well, you have to remember that twice your lifetime is two lifetimes, so it can add up.

All right. There we go. Pentium's now done. All right. Now, we're going to set up another demo for you, and this demo tests memory bandwidth. Remember we said there was three times the memory bandwidth on the new PowerMac G4 as compared with the G3s? Well, now we're going to compare it again against the fastest Pentium 2 running at 600 megahertz. So, Phil, what are we going to do here? Well, what we have here is a set of actions that don't push the process of it, rather memory bandwidth. It's going to take an 8-bit image, convert it to 16-bit, something you need to do for a lot of operations, go through a number of rotates on the image, finish it, and convert it back to 8-bits to be done into print.

Very standard processes that are really very memory bound. This is a standard Adobe test image, isn't it? Yes. All right. Why don't you count us down for bandwidth? Okay. Three, two, one, go. All right. We're off to the races here. So it's doing some conversions and some rotates. And the PowerMac on the left is done. And the Pentium is still working on it here. The good thing is it usually does finish. There we go. Okay. Pentium is done. So the PowerMac G3, for those of you who were counting, is again a little over twice as fast as the fastest 600 megahertz Pentium 3. Now, the next thing we're going to show you is a QuickTime encode.

QuickTime encode of a QuickTime file that you might be familiar with, running on both the PowerMac G3 and the Pentium 3. And what we're going to do is we're going to run a QuickTime encode. You might be familiar with, running on both the PowerMac G4 and the Pentium 3 with the same exact software. Phil, you want to tell us precisely what we're going to look at here? Sure. We're using MediaCleaner Pro, and it's using some new accelerated QuickTime codecs to take full advantage of the velocity engine. We're going to take a movie, a DV movie brought in an MPEG format, and we're going to transcode it right into a Sorenson format so QuickTime can stream it on the web. A process that takes a lot of CPU horsepower to do. Same exact QuickTime file on both machines? Exactly.

Same program, same MediaCleaner on both machines? Yes. Great. Let's do it. Count us down. Three, two, one, go. Whoops. Uh-oh. I've started in front. Uh-oh. I blew it here. All right, we're off to the races on the PowerMac. Well, you just passed me. Yep. Now, you can see from the readout there in the text in the bottom, for those who can read it, that the MediaCleaner Pro on the left and the PowerMac takes one minute to compress one minute of video. So, real-time compression. On the right, the PC is taking two minutes and five seconds to compress one minute of video. On the left, the PC is taking two minutes and five seconds to compress one minute of video.

So, that means we could compress this James Bond film trailer and actually then play it back in the same time it'll take the PC to compress it, full two to one. That's amazing. We're done on the Power Mac. And we're still working at it on the PC. Again, this is software that's highly tuned to optimize all the benefits of the Pentium 3 and running at a full 600 megahertz on the Pentium side, still two to one slower than the 500 megahertz Power PC G4 chip and Power Mac G4 system.

All right. Pentium's done. Now, these three demos that Phil and I have just showed you, we hope are of particular relevance to you being in the design and publishing space, whether you're creating printer materials, electronic materials, obviously for the internet, et cetera. But we also serve a lot of other customers in science and in education. And I've asked one of Apple's distinguished scientists, Dr. Richard Crandall, to come up on stage and give us a few demos that relate to some of these fields that we've been working on. And I'd like to introduce him right now, Dr. Richard Crandall.

Greetings. As a career scientist and teacher, I am ecstatic about this desktop supercomputing with G4. Over the years, I have been privileged to use, I think like some of you here, some of you, from time to time supercomputing, usually through giant supercomputer centers or government centers. And even so, even though we got to use some supercomputing, it was problematic, it was ad hoc, and it was always too expensive. There was a time when we had to pay $1,000 for a CPU hour to get this kind of speed. However, with G4, things are going to change now.

And for example, back at my laboratory, as I speak to you, I have a brace of G4s doing a very tough calculation, one of the toughest around. And because of G4, this will finish by Halloween. If I had been using the old dinosaur supercomputers, then even during this little talk to you, I would be going bankrupt. Boy, do we have some supercomputing examples for you. We have three. You will see, for example, before your very eyes what a gigaflop looks like in an example. Let's start with SETI at home, which means Search for Extraterrestrial Intelligence at home, meaning that from this Berkeley site, SETI at home, a Berkeley research group, you download code that contains signals from outer space, well, data that contains signals from outer space and code to process that.

On the right, you see a Pentium III processing this data, which is centered at 1,420 megahertz, a special cosmic frequency that we think a remote civilization would use. That looks random, that spectrograph, because, well, if you see a pattern in that, that's a big deal. So the SETI at home people actually did a brilliant thing. They have had over a million downloads in over 200 countries, so that there's this giant, it's worldwide volunteers, giant supercomputer. So the natural question is, how would this perform on a G4? So on the left, you see the same kind of calculation on the same kind of data set on G4.

And you can see it's obviously running faster in some qualitative sense. But in reality, it takes six hours to data process on the G4, what takes 25 hours on the Pentium. That's more than four times faster. I want to say that at the core of the SETI at home software I'm showing you is an FFT or Fast Fourier Transform that's important in many fields, as you know, I think, which runs at supercomputer speeds. And because of that core routine that's really blazing, the whole application is four times faster. Now you've heard of the Andromeda galaxy, and you've heard of the Milky Way galaxy, our galaxy.

Let me introduce you to the G3 galaxy. Well, that's very respectable. That's 30,000 stars. And I need to make this point, it's important, that this is not just animation. This is calculating in real time. It's solving physics equations in a certain gravitational model. Every star is moved around according to the laws of Newton and using the gravitational constant and so on. And that's very respectable. If you do 2,000 stars, it swirls really smoothly on a G3, and that's a lot of power. But this 30,000 stars kind of brings the G3 to a certain kind of a staggering mode. Now I'll show you a billion operations per second on the left. There you go.

That is one way to look at a billion operations. Here's another interesting way. At a gigaflop, in the time it takes to do one operation, light travels one foot. So this means, you know, and light is, one way to think about fast light is it goes around the Earth seven times a second if you guide it around. It goes around the equator seven times a second. So this means that when you're running your desktop supercomputer, during one operation, the light that leaves the monitor screen has not reached your face. Again, to compare G3 and G4, we have a demonstration of cryptography.

Now many of you know, in fact, I think everyone knows, that in modern cryptography, large numbers are the key. And that, you know, the mysteries of the way large numbers work are, you know, lie at the core of modern cryptography. And so it's getting harder and harder to do the computations necessary for security. Because we've all heard that just a week ago, another break of another encryption system that was, you know, maybe 150 bits, and you can break 200-bit systems, and now we need to do 1,000-bit keys, and later we'll have to do 5,000-bit keys. This is a 1,000-bit key, which has encrypted two images. The right-hand image is the G3 image, and the left-hand image is the G4 image. And of course, G4 will pick up 128-bit chunks of the key and process that with its natural speedup.

Let's race these. Three, two, one, go. Want to re-encrypt? Do you want to encrypt it back? Let's encrypt them again, just to show the symmetry of the... Three, two, one, go. Thank you. The little numbers up there in the time readout show that it is 6.8 times faster on the G4.

But don't get me wrong. We find that if you put standard cryptography packages on G4, they tend to run three to eight times faster than on Pentium 3, the same kind of demonstration we could have given. In closing, I would like to say that as far as students and teachers, scientists and engineers, everyone having the supercomputer power, desktop power, I've been waiting a lifetime for this, or maybe two lifetimes. Thank you. Thank you, Dr. Crandall. The last demo Phil and I are going to end on is pretty amazing.

It's also a scientific demo, but it certainly shows off the computational capability of the G4. What we're going to show you is actual data from the Mars Pathfinder mission. And it's from a company... By RSI, and they have software, IDL software, that's used to process images from data by some of the world's greatest organizations. NASA, JPL, Livermore Labs, Brookhaven use this software package we're about to see. And this is not an animation. This is not a video game. This is all being computed in real time, visualized in real time from the same exact data set, running on Power Mac G4 and running on, again, a 600 megahertz Pentium 3.

And we're going to actually see what this is really like. I'm going to go ahead and launch Phil. And that is actually Mars from the data from the Pathfinder spacecraft. And we're going to be approaching Mars on the Pentium here. And you can see Mars getting bigger. You can even see it rotating slightly as it gets closer. And then we're going to launch a probe. We're going to actually go on that probe and watch it as we go through the actual canyons of Mars based on data from the Pathfinder spacecraft. What you'll see in just a moment, as it fills the screen, you'll see this probe take off and just at the point it disappears from your screen, it'll be right above the canyon that it's going through. This entire data set from the Pathfinder to render all of this is sitting on the hard drive of both computers and is being used on the fly to render and map and visualize the Mars Pathfinder path.

And the probe launches and you see it right above the canyon there where it goes into and now the data. It's rendering on the fly, real time, 3D graphics of a canyon that's actually as long as the distance from San Francisco to New York. Let's go ahead and launch it on the Power Mac, G4, and we'll start to approach Mars on the G4. We'll be ready to launch our probe. There we go. And the exact same data set being calculated in real time for visualization purposes right here on the G4 versus the fastest Pentium money can buy.

Well, you get the idea. Thank you, Phil. Now, one of the things I said earlier was we, one of our design goals for the Power Mac G4 was to make it the ultimate Photoshop machine. And who better to speak on this point than one of the finest people in our industry and actually one of my longtime friends, Dr. John Warnock, the chairman and CEO of Adobe.

I saw this thing last week and you have to love these machines. They are phenomenal machines. We've actually been testing these and writing the plug-ins for Photoshop to take advantage of the G4. And of all the machines that we have seen, this is the fastest machine that runs our applications. Now, the great advantage of being a friend of Steve's is I got in line early. So, I have one of these on order and the wonderful thing about having Apple back is that this industry is no longer boring.

Thank you, Steve. And now, as you know, when we're excited about things, we make TV ads. I'd like to premiere a television ad that we're going to run for the Power Mac G4 that actually starts running tonight. So, if you watch television tonight, you might just see it. So, let's go ahead and run that ad. For the first time in history, a personal computer has been classified as a weapon by the U.S. government. With the power to perform over one billion calculations per second, the Pentagon wants to ensure that the new Power Macintosh G4 does not fall into the wrong hands.

As for Pentium PCs, well, they're harmless. So, we got the idea for this commercial when we were informed by the United States government that we are not authorized to export the new Power Mac G4 to many sensitive countries around the world because it is classified as supercomputer level performance. Isn't that incredible? So, they'll be available to all freedom-loving people almost everywhere.

You want to see that again? I want to show it one more time. I love this thing. For the first time in history, a personal computer has been classified as a weapon by the U.S. government. With the power to perform over one billion calculations per second, the Pentagon wants to ensure that the new Power Macintosh G4 does not fall into the wrong hands. As for Pentium PCs, well, they're harmless. So, the new Power Mac G4, the most powerful personal computer ever brought to market, we're leaving the century on a high.

And, we think we've got the strongest product lineup that Apple's ever had. So, thank you for coming today and checking this out with us. We're very, very pleased to introduce this to you. And, oh, wait a minute now. There is one more thing. There is one more thing that I want to show you. We make some great displays for the new Power Mac G4. We have our 15-inch flat panel studio display and our 17-inch and 21-inch CRT-based studio displays. And they work great with the G4. They're color-coordinated to match.

But what would be the ultimate companion for the new Power Mac G4? Well, let me show you. This is called the Apple Cinema Display. It is a 22-inch display. Let's get it on the camera up here.

There it is. Unbelievable. Just to give you a feeling for how big it is. The thing is huge. It has a viewable area as large as a 24-inch flat CRT. It is the largest LCD display ever brought to market. And yet, it is amazingly thin and amazingly beautiful. Get that foot up there on the screen so you can see that. It's so beautiful. Look at this. When I go to tilt it back, watch what happens. I just push it. Isn't that nice? I just pull it. Isn't that great? So, it's really beautiful. Get that up. Go down. Yeah, there you go. Can you see that okay? And yet, and the image is unbelievably crisp and great.

And, again, this thing is so big that you can display full 11 by 17 documents and still have room left over for Photoshop tools and Adobe InDesign tools. Isn't that a great, incredible? Look at this. And, it's very fast. Let me go ahead and see if we can actually play a certain movie. All right. Again, this thing is huge.

You get the idea. It's amazing. So. Thank you. Thank you. The Apple Cinema Display. It's like nothing you've ever seen before. And, it is the ultimate companion to the new Power Mac G4. It's, you've got to go see these things out in the show. They're amazing. It's incredibly thin.

It looks as good from the back as it does from the front. This is what it looks like from the front. It is a staggering 22-inch display. And again, it's the largest LCD ever brought to market and it has the same viewing area as a 24-inch flat CRT, except that it's twice as bright, twice as sharp, it has three times the contrast, and it has zero flicker. It has a letterbox format of 1600 by 1024 pixels. It is digitally driven from the G4 to preserve the pristine digital quality all the way through to the display.

Now, this is very leading-edge technology, way out in front of the rest of the industry, and clearly supplies are going to be limited on this. And we're going to be selling it for $39.99. We're going to start selling these in October. We're going to start taking orders October 1st. And there's only one place to buy it, because the supplies will be limited, and that is the Apple Store. And there's only one way to buy it on the Apple Store, and that is bundled with a 450 or 500 MHz G4. So we're going to sell this complete system off the Apple Store, system starting at $6,498.

So if you want one, I would be ready at 12.01 on October 1st to place your order. So the ultimate publishing system in the world. The new Power Mac G4, the new Apple Cinema Display, the best display in the world, the fastest computer in the world. And we think this gives us an incredible lineup here. We've got the hottest consumer products in the industry now with iMac and iBook, and we have the most powerful pro lineup in the industry with the new Power Mac G4 and our new Power Books. And we're thrilled to bring you these great products. Our teams at Apple have been working round the clock to do it, and I'd like to give them a round of applause now if it's okay with you.

So please go check this stuff out at our booth, and thank you for coming this morning and letting us be with you. Thank you very much. It's so easy to fall in love It's so easy, it's so easy, it's so easy to fall in love It's so easy, it's so easy, it's so easy, it's so easy, it's so easy, it's so easy to fall in love