Steve Jobs on the Power Mac G5: fastest personal computer

Good morning. Thank you. Isn't it great to be in San Francisco? So, we have so much great stuff for you today that we may even have to take a stretch break in the middle here. A lot of good stuff. I hope you love it as much as we do. So, there are about 3,800 of us here today. We're a little over 1% of the registered Apple developers. There's over 300,000 now. And that number has tripled since the introduction of Mac OS X. Not only Carbon and Cocoa developers, but a ton of Unix developers have joined us, a lot of Java developers as well. So, we're really excited about this. I want to start with some updates and then we'll get into the meat of today's presentation. First, I want to talk about Airport Extreme.

Airport Extreme is our 54 megabit per second airport product that's based on the industry standard 80211G. And the standard was not yet ratified when we started shipping in January. We were the first to ship this, but it was ratified a little over a week ago. And one week after it was ratified, we had an airport software update on the net for base stations and cards to bring them totally in compliance with the final ratified spec. We are 1,000% sure that 80211G is the successor to 80211B. It's totally backwards compatible. And as I mentioned, Apple was the first to ship 80211G in our industry, just as we were the first to ship 80211 wireless networking in computers years ago. And I'm pleased to report that since we started shipping 80211G in January, we've shipped over 300,000 80211G products. So, that's an update on Airport Extreme. We couldn't be happier with the progress.

Next I want to give you an update on our retail stores. This is off the charts. It's been 25 months since we opened our first store. We now have 58 stores open. Since we've opened them, we've had over 17 million visitors to our stores. 17 million. This is our store in New York. It's one of the coolest stores in New York. If you've ever been there, worth a visit if you're in the city. It's wonderful. This is our largest store in Los Angeles in the Grove Shopping Center, and again shows how much software we carry in our stores. We love to carry your software. And among the many stores we're going to be opening in the next year, we're opening three really great stores. One in Chicago, one in San Francisco, and one in Tokyo. We're opening Chicago this coming weekend. And this is a photo from last week. This is right on Michigan Avenue, which is the best shopping street in America outside of Fifth Avenue in New York. It's phenomenal. That big Apple logo in the middle is actually a window that you can see right in. Get some natural light in the second floor. In San Francisco, we don't have anything constructed yet. We'll open San Francisco next spring.

But this is a rendering. I wish it was this easy to build them. And this is at the end of Stockton Street, viewed from Market Street. This is what it will look like, only a few blocks from where we are sitting here right now. And in Tokyo, we're going to be opening a store. It's going to be great. In Tokyo, we are opening a store on the Ginza, which is the number one shopping street in the world. And we're opening it early next year. And again, this is a rendering of what it will be. So, we've had 17 million visitors and counting. We love to sell your software and hardware accessory products. So keep feeding them to us and we can't wait to put them in our stores. So that's an update on our retail stores. Next, iPod. iPod, again, we couldn't be happier with. We just introduced our third generation iPod. Our competitors haven't even caught up with our first generation yet. We're in our third. And it is amazing. It is as light as two CDs in their jewel cases.

It is as thin as two CD jewel cases back to back. It has a dock so that charging and syncing is even more convenient than before. And I've got a great milestone today. Today is an auspicious day because later on today, we will ship our one millionth iPod. So, another great product for music, of course, iTunes 4. And the greatest feature of iTunes 4 is, of course, the iTunes Music Store. Being an auspicious day today, it was eight weeks ago today that we launched the iTunes Music Store, only eight weeks ago. And I'm pleased to report that in the first eight weeks, we've sold over five million songs online. We crossed the five million mark this last Saturday. And we, again, are thrilled. Now, we ran an ad campaign about the iTunes Music Store. And you know, when you run an ad campaign, if it's really working, if it resonates with the culture, if people start to parody it.

And it wasn't very long before that happened and when I saw this on TV. Al Jazeera, they found another tape of Osama Bin Laden, found it was released. You know, they were playing this thing over and over again on Al Jazeera Network. And I get the premium cable package, so I get Al Jazeera. Well, we'll show the latest Osama Bin Laden tape. I like big butts and I cannot lie. You know what a butt does, can't deny. When a girl walks in with an itty-bitty waist and a round thing in your face, you get sprung. I want to get with ya and take your picture. You say you want to get in my bed? Well, use me, use me, use me. It doesn't get any better than that.

Okay, so that's the iTunes Music Store. Next, I want to give you an update on Safari. As you know, Safari is the fastest browser on the Mac and we think it's the best browser on any platform. We've had over five million downloads of the Safari beta software that we released in January. And it's a phenomenal browser. We were able, over the course of the beta period, to add tab browsing. I think we've got the slickest implementation of tab browsing ever done. It's been six months that we've had the beta software out there. You guys have given us a phenomenal number of comments. We've incorporated as many as we could in and I think we've got an incredibly solid browser now. And so today we are declaring Safari 1.0.

We're releasing it on the web in a few hours. You can download your copy and we're also fulfilling a request we've had from so many of you that want to embed Safari functionality in your apps by just calling a few Carbon or Coco APIs. Today we're releasing a Safari SDK to all of you as well. So that's Safari and that concludes my updates. Now let's get right into it. I want to talk about Mac OS X. Mac OS X is doing really, really well. Let me show you. Over the last two years, we've gone from about a half a million active users to seven million active users of Mac OS X.

And look at the slope of that curve. It's going up. We have 6,000 native Mac OS X apps. And again, let's take a look at the slope of this curve over the last two years. Starting with under 1,000, it's accelerating. And this is obviously, these two are linked. And so we are over the crest of the hill of the Mac OS X transition and we'll finish it up this year. And all I can say for all these apps is thank you. I know this has been a lot of work for some of you as any major OS transition is. And you guys have really come through and we are just about through with this and we've got a kick-ass OS. So thank you.

But today, for all of us in this room, all the developers, Jaguar is over. Because today, we're going to preview Panther for you. The next major release of Mac OS X, version 10.3. Its name is Panther and it's the fourth major release of Mac OS X following Cheetah, Puma, and Jaguar. In Panther, there are over 100 major new features. We're not going to have time to go over all of them today, but I want to cover a few of them with you. And I think you'll agree, it's a stunning release. First, let's start off with Unix. As you know, Mac OS X is Unix-based. And as you also know, Mac OS X is now the most popular Unix in the world.

The most popular Unix in the world. And we've enhanced it for Panther. We've got a lot of cool new features. X11 is bundled in. NFS file locking. Much faster. Unix file system, much more robust Kerberos, FreeBSD 5.0, IPv6, and a lot of popular Unix APIs that you guys have asked for. All of that and a lot more Unix stuff is in Panther. Now in addition to Unix though, we support the other guys too. We want to help our customers work in heterogeneous networks. And we've added a lot of stuff for Windows operability. We're shipping the latest version of Samba that just came out. We're the first folks to ship that, I believe, so that you can now browse SMB servers dynamically right in the Finder. SMB printing, you put your home directories on SMB servers. We're shipping a new IP sec-based VPN, which is the new standard for VPN adopted by Cisco and Microsoft and us, and a lot deeper active directory integration. So a lot of stuff with Windows interoperability.

Now let's get into some of the coolest stuff. Panther has a brand new Finder. Now, you might say, well, wait a minute. What was wrong with the old Finder? Well, the old Finder was computer centric. When we really were honest with ourselves, we had to admit it. We did as best as we could, but we didn't quite get across the goal line. It was computer centric. What do I mean by that? Well, this is column view in the old Finder, in the Jaguar Finder, and that's my stuff right there, right? That's my stuff. Four levels down. How could I be the most important thing if I'm four levels down? And I need stuff at other levels, and it's just very confusing. So we want to replace this computer centric Finder with a user centric Finder. Well, how do we do that? Well, we start off by learning from some of the other interfaces we've built over the last few years. And we said, let's put all the stuff you want, including stuff you want to drag in, in one column and put it on the left.

And that's what we've done. All your storage, your removable storage, your iDisk, your home directory, any folders you want in one column. And let's put that on the left of a window. This might look a little bit like playlists in iTunes or photo albums in iPhoto. That's because it is. And you click on one of these things, and boom, your stuff is right there. So here's my home. Here's my applications. Here's my documents. I can look at these things in column view, list view, or icon view, and have my stuff right there. Boom. And I can drag any folders I want right into that left column. It's really, really simple. Now, we've done more. We've added fast searching. So you can now search for files really fast and find them. We've added a thing called the action button. We found a lot of our users never found some of the cool things they could do. Some of them didn't even find GetInfo.

And so we pulled all that stuff under a button that's contextually sensitive. You push it, it'll show you exactly what you can do with a document or folder that you have selected. We've added labels. We got a lot of requests for labels. They're in there. As I mentioned earlier, we have dynamic network browsing. So you can dynamically search for Unix servers, for Windows servers, for any servers right from the Finder. We've got new open and save panels that reflect this more user-centric point of view, much cleaner. And probably the best way is for me to show this to you now. So, the new Finder. Here we go. You see the left column right here? I can just click down it and see all my stuff. And I can go ahead and go into icon view again, just bop around and see all of my stuff, very easy.

And I can shrink the window. There's a lot of fit and finish on this, so you'll notice the icons on the left shrink, right? Just like this. Don't scroll till they have to. And I can drag stuff in. I can drag a folder I want anywhere in here if I want to, just put it right there. And I click on that and I see its contents. If I'm tired of it, I just drag it out and it poofs. Okay. I can eject DVDs right from here with a rollover, right like this, so I don't even have to go to an eject button. And I can go on the network and see my servers right here and browse them dynamically. Now, let me go to my documents folder and, oh, maybe, where is it? Boom, boom, boom. I can go pick the action menu and again, I can label something right like this. And boom, that's all it does, all it takes to set a label. It's very, very simple. And I've got fast search. So I'm in my home directory now. I can search all my hard disks or just my home directory or window it down to whatever I want. I'm going to look for all the ExServ documents in my home directory just by typing ExServ. So the minute I start to type, pretty cool, huh? And I'll keep going.

I'll refine that to type in RAID and boom, there's my ExServ documents RAID. I can even type in extensions if I want to and find all those. I can find all the iMac documents, boom, or the eMac documents, or PowerBook documents, boom. It's that fast. It's really, really cool. And so that's a brief overview of the new Finder and I think you're going to like it a lot. We've got, it's user-centric, we've got fast searching, we've got the action button to pull together a lot of commands that people have never found, labels, dynamic network browsing, and new open and save panels that reflect the new user-centric sensibility. So this is the new Finder and I think it's going to serve us well. I think we finally got there on the Finder with something that's the best the world's ever seen. Next is iDisk.

We've enhanced iDisk significantly for Panther. iDisk, as you know, is for our .Mac customers, the hundreds of thousands of people that have signed up for .Mac. And iDisk has been a place where you can manually upload files to the .Mac server and manually download them. Well, that's all changing in Panther because in Panther, we're automatically syncing the files. And what that means is, is that stuff that's on your iDisk will automatically sync with our servers on .Mac in both directions. And it does it in the background. So what it really means is your iDisk becomes basically a local folder that syncs. You don't put stuff in your iDisk to send it up to .Mac, you leave it in your iDisk. You can leave a document in your iDisk, open it up, modify it, close it, and the minute you close it, it will sync back up to .Mac in the background automatically. So you can just leave stuff in your iDisk.

And this is pretty cool. It's a great way to back stuff up. But in addition to that, it really shines when you have more than one computer. If I have three computers here, each with their own iDisk, I can leave a copy of the same document in the iDisk of each one, open up the document in one of those iDisks, change it and close it, and it will automatically sync back through .Mac to the other two. It's really nice. In addition to this, it really works when you have untethered portables. You can be out in the field, not connected to a network, change a document in your iDisk. The minute you're connected to a network, whether you walk into an airport, a base station, or you hook back up to a terrestrial net, boom, that document that's changed will automatically sync with .Mac. It's really nice, and that is the new iDisk in Panther. Next up, we have a new feature called Expose. What is Expose? Well, we've made it so wonderful to use multiple apps at once, that people do. The operating system is so bulletproof that if an app crashes, it doesn't crash the system, and we have such beautiful multitasking that you can have 7, 8, 9, 10 apps open at once. I'm sure most of you do. So you've got Photoshop open, and you're working on a bunch of Photoshop images. You've got Mail open.

You've got your browser open. You've got your address book open. And what do you end up with? This. We've all been there. We all are there several times a day, and you want to find that one window you're looking for. How do you do it? All you want is to bring the one window you want to the front. So you move everything out of the way. You're on a scavenger hunt. Well, we've figured out how to solve this in a wonderful way. Let me show you now. I'm going to start off by opening a lot of applications, and I'm just going to run a little AppleScript to do that for me. It's going to open Mail. It's opening some Photoshop documents here, a few browser windows. All right. So I think that's probably about done.

We've got a lot of stuff open here, and a lot of Photoshop windows, Photoshop palettes. How do I find something? Well, here's how we do it. You ready? Oh, just like this. Let me show you this in slow-mo. And as you notice, as I mouse around here, it shows me exactly what the windows are. Boom, right? Boom, boom, boom, boom. Now, let's say I just want to see my Photoshop windows, or one application's windows. Well, I select that application, and I do this. Again, just the one app's windows.

Pallets fade away The other apps highlight in the dim out in the background or I can go see all of them just like this It's very very nice. Let me show you this again in slow-mo here And again, I can pick one and when I do they all just come back Right. So boom boom now, we've gone even further. How do you trigger this? well, you can assign any key on your keyboard to do it, right or If you have a two-button mouse, you can assign the second button on the mouse or you can assign screen corner So I've got my screen corner set up where this one Just does all these boom. I just go just like a gesture Boom, and this one is all the app all the windows from the app that isn't currently active. Isn't that nice?

now Let me show you one other cool thing I'm gonna bring mail to the front here and I want to mail some I'm in the middle of composing something to somebody and I Say check this out and oh, you know the file I want to send to them is on the desktop What am I going to do? Do I want to close all these windows and have to reopen them? No Exposé lets me handle that too. It lets me assign another button to just clear all the windows off the desktop Let's do that in slow-mo here Whoops didn't want that There we go, they just fly off to the nearest corner Right. And so what I'm going to do I'm going to get rid of this and I'm gonna Grab this and I just drag a little bit and bring it up there and pop it in Very very simple Very very simple. So this is expose and let me quit all these apps I think you're gonna love it so again You see your windows from just one app all of your windows. Now, how does this do this?

It's using quartz extreme the amazing graphics built into Mac OS 10 to do all of this So smoothly so simply with a great UI on top of it that lets you instantly see all of your windows Instantly see just one apps windows Instantly clear all your windows to see your desktop and you can activate it by using either screen corners or Your keyboard or mouse and To set up the activation. We have a special preference here that lets you set it up super easy It's really really nice and we think expose is going to save us all a whole lot of time Okay, next up file vault File vaults a brand new feature in Mac OS 10 as well and it came Requests it came from requests from companies that said look we've got a ton of sensitive information on our notebooks If people lose them that sensitive information is available to a thief. What are we going to do about this?

And we've done something about it. It's called file vault and it secures your entire home folder You go to preferences you check on one check box and It turns file vault on and file vault encrypts and decrypts every file going in and out of your home directory on the fly you don't even know what's happening and Once you log out your stuff is safe So it's security for your entire home directory with one check box built into Mac OS 10. That's file vault Next up we've really improved mail for Panther It's much better Everything is a lot faster We've got Safari HTML rendering built in via the SDK Addresses are now objects. You can easily move them around. We've done that in a really nice way You can now view and manage your mail by threads in a really cool way So let me let me give you a few slides and I want to go show this to you for Objects addresses are objects when you type them in they become these objects and you can even set it up so that any Addresses outside a certain list of domains you've specified show up in red So, you know if you're sending something outside your company say and it can flag it For viewing mail and threads again. We've got something very very nice and let me show that to you now So let me bring up mail here's mail and put this away and The first thing I want to show you is just some Safari HTML rendering right here

So this is the Wall Street Journal here rendered right in Safari Here's the New York Times This works beautifully here's a Apple music iTunes music store music Tuesday email we do and Now let's go to compose So if I want to send a mail to John Rubenstein his address is Ruby and once I get it I hit this boom It becomes an object. I'll send another one to Fred Fred Anderson, there we go And now I can just drag these around Anywhere I want to change the positions and I can just it's very very easy now if I type Avi Avi's got two email addresses. Oops that spells name, right? Avi's got two email addresses one. It's a dot Mac and the other is Apple I've got it set up so anything outside of Apple flags it and boom I can see who if this is a confidential email, I might want to know this but of course Avi has got a Different email addresses. I can just go select the Apple one and boom it on flags it like that So very very simple easy to move this stuff around Now in terms of viewing mail as threads, this is a thread right here. I've got this little triangle over here I can click on the thread and I can see all the email in the thread all the messages and I can click on one And go right there, which is kind of cool, but I can open it as well boom And there we go. It goes to the first unread message. I can zoom around and read any of these I want I can just close it and Again, boom go to the first unread one. I can close it from anywhere. I want to boom and this is how it works It's really really slick and it's gonna make viewing email and managing email so much easier And again, I can be here and just click on one of these and boom I go immediately to that message

So that is the new mail in Panther Addresses as objects Manage and view your email by threads. We also again as I mentioned are shipping a new IP sec based VPN This is the new industry standard Cisco's adopted it Microsoft's adopted it. We're adopting it. It is built right into Panther It's also built right into Panther server if you want to complete VPN end-to-end solution So that's new mail By popular requests in Panther. We are building in fax. There are still some people to fax if you can believe that And what we are doing is putting a fax button on every single print panel because if you think about it Faxing is just remote printing, isn't it? And that's what we're doing So on every print panel There is a fax button and when you push that fax button you get a fax panel that does full address Completion with your fax numbers out of your address book and lets you set up make sure you have the right modem, etc Very very simple you push a fax button and you're faxing it is built in to Panther built-in fax Next one is really fun. It's called pixelates Pixelate is a breakthrough quick time codec It is delivering studio grade quality on a personal computer for the first time in history No codec out there delivers studio grade quality today. Now. Why why did we do this?

Well, we got a request from a company that we like Named Pixar and what they wanted was they wanted to be able to compress their film grade images enough to send them around their studio and still be able to use them edit them scrub them and still be able to Use them to make key decisions without seeing compression artifacts a super high quality codec for film quality material And that's what we've done in pixelate as a matter of fact We even partially named pixelate after them the codec we built is based on wavelet technology So we just took these two things and we put them together and that's what pixelate came from And pixelate delivers us a film resolution. That's high def quality High definition quality 48 bits per pixel source data This is the only codec on a personal computer to go above 24 bits per pixel source data This is essential for high def and film quality resolution no noticeable visual artifacts key and We're not doing interframe compression like everyone else does to get the compression ratios We figured out how to do it without that which means you can have easy editing and back-and-forth scrubbing Which is essential for the pro market?

Now what's just as cool as playing full high def is? What you can do with half of high def people use this a lot that's 960 by 540 resolution with all the same properties full screen 24 frames per second with stereo sound you can decode this on a 1 gigahertz G for Mac which means you can play this stuff on a titanium power book It's amazing and the quality will blow you away Let me show you Okay So let me open finding Nemo. This is a trailer For my favorite movie, and I'll just play this for you now, look at the quality, and look at the lack of artifacts, which is really hard to do with this type of material.

There are 3.7 trillion fish in the ocean. They're looking for one. Walt Disney Pictures presents a Pixar Animation Studios film. Now, let me show you a few things. We can just sit here and scrub this. At this kind of resolution, this is unheard of, and this kind of compression. Look at this quality here. Look at these frames. We've never seen a codec like this before on a personal computer. It's unbelievable.

So, let me show you another one. This is the Matrix Reloaded. Same resolution, half of high depth. Let me go ahead. Here, let me just scrub this for you again. Look at this. It's unbelievable, the kind of quality that we're seeing out of this codec. So... Again, film resolution quality, 48 bits per pixel source data, no noticeable artifacts, and the ability to edit and scrub because we're not doing inner frame compression.

An amazing new high depth pro codec built in to Panther. That's what Pixelit is. Next up is Preview. Now, Preview in Panther is the fastest PDF reader in the world. We've really done major work on this. Now, why do we care about this? Because PDF is at the core of Mac OS X. It's our graphics model for the entire system. Us and Adobe are pushing PDF out into the world, and the entire creative pro market has adopted it as their workflow, and everyone has adopted it as their machine independent operating system, independent document format on the internet. So reading PDFs is really important, and we've upgraded Preview to be the fastest PDF reader in the world.

Now, let me show you that. First of all is rendering. To demonstrate rendering, we picked a document, the PDF 1.4 spec. Why not? It's 978 pages long, and what does it take to scroll through it one page at a time, as fast as the app will do? Well, let's take a look and compare it to Windows Acrobat 6 on the fastest PC money can buy. All right, let's see what it looks like. Windows Acrobat 6 takes 71 seconds to scroll through that 978 page, or whatever it was, document. Preview takes 28 seconds, almost three times as fast. Next up is searching. Find all references to the word shade in the same document, 978 pages. Again, Windows Acrobat 6, 18 seconds.

Preview, four seconds. So we have got the fastest PDF renderer in the world, and let me show it to you. I will go back to the finder here, and I will go to my documents folder, and let's see what have I got here. Here's the reference document that we were looking at. It's 978 pages. It takes a second to load in. Here it is, and I can just actually, here's the scroll test button. I mean, here's what it took to go through that. We can take our 28 seconds, but again, we're imaging each page fully before we go on to the next, and you can see how fast this puppy renders. So, we'll just stop it here for a minute.

No, I guess it doesn't stop. Hopefully, it won't start again. It did. All righty there. There we go. All right. There we go. Yeah, that's okay. We'll let it go. Again, we could do this almost three times before the Acrobat version would be done once. All right. And again, look at this. I'm scrolling through this thing, and it's rendering on the fly. It's not cached, and it's not missing a page. So, pretty cool. All righty. So, I'm going to put this one away. I'm going to get another document that I'm a little more familiar with. And let's see here.

I'm going to get, yes, this is an XSRV-RAID tech overview, and we build thumbnails on the fly, as you can see right here. But I'm going to show you the searching. I'm going to search for cooling. And, boom, it finds every instance of cooling in the document and highlights it for me here. And it's that simple. It's really, really cool. So, this is the new preview in Mac OS X Panther. Now, in addition to reading PDFs, as you know, in Mac OS X, you can create PDFs automatically from any application, whether it has that functionality in it or not, because we have a Save as PDF button on every print panel next to the Now Fax button, right in Panther.

So, you can create a PDF just by pushing one button from any app in the system, and you can read PDFs faster than anywhere else in the world. Fastest PDF reading. Fastest PDF searching. Create a PDF from any application. And also now, new for Panther, we've got on-the-fly PostScript-to-PDF conversion. So, we built it right into the operating system. Instantaneous, on-the-fly conversion. It also means, if you've got an inkjet printer, you can vend it on the network as a PostScript printer to other folks, even Windows users. So, you can take your inkjet printer, make it look like a PostScript printer right on the network. It's pretty cool. PDF is at the heart of X, and we think you're going to love the new preview app, because we're all reading PDFs more and more and more, and it's going to help us do it more efficiently. Next new feature in X.

Fast user switching. This is one feature, I've got to be honest, Windows beat us to this. It's the only feature in Mac OS X I can think of like that, but this is one. Windows XP has this. We're going to do it much nicer, but they actually beat us to it, and we're going to get there, catch up with them, and do it even nicer. Fast user switching, we're putting a menu up in the corner that allows you to switch between multiple users on a machine. You can require passwords or not require passwords, and this is a godsend for a household as an example. So, let me show this to you. Here I am on my workspace over here, the thing I've been using to show you these demos. I've got my name up here, because I've got fast user switching turned on, and these are the other people on the system.

I can just go over here by pushing a button. She's got her dock set up like this. Let's go to Cindy. Let's go to Bobby. Bobby likes finding Nemo. If I want to go back to myself, I require a password, because I don't want anybody messing with my files. Any of these can require a password to get back like this. Some of these are set up without one. Isn't this cool? So, fast user switching. Boom. That simple. Very, very cool.

With the Apple touch, we think you're going to like it. Another new pro feature that we've added, based on a lot of requests, is called Font Book. Font Book is an application that we've written that does pro font management. We've gotten a lot of requests from our creative professionals for this, and it's really cool. When you click on a font now, when you drag a font over to the desktop, let's say, and you click on it, this is what happens. You've got a panel, it shows you the font, and with one button, boom, you install the font. So the font's now installed, and you run Font Book Pops Up, and this is what it looks like. It lists all your fonts right here, shows you any font you want at any size, has categories or collections of fonts on the left, and it also has a way to find fonts really fast, instant searching like you've seen in so many other things in Panther here today.

You just type in, let's say I want to type in Condensed. I type in Condensed, and boom, you see only the Condensed fonts show up. Or I type in Caption, and boom, only the Caption fonts show up. Out of thousands of fonts you may have, it happens, boom, like that. It's very, very good. You can disable, enable fonts, create special collections for each project that you're working on. It's very, very cool, and we think our creative professionals are going to love it. It's built in to Panther. I've saved the best for last. So, iChat. iChat has been a really popular feature in Jaguar.

About 25% of our customers are using it routinely. We think that's about to go up, because in Panther, we are taking iChat to iChat AV. The A stands for audio, the V stands for video. iChat AV goes beyond just text chats and to the instant messaging infrastructure, adds audio chats over the internet and video chats. It's remarkable. It is video conferencing for the rest of us. It is one of the coolest things we've ever done. And we realized that video conferencing was really just the ultimate instant messaging.

And so we built it right into that wonderful infrastructure, and you can access it right from your buddy list. Right from the buddy list. So we have now text, audio, and video chats. Zero setup or configuration. Zero. You literally plug in the camera, and everything else is done automatically. You don't have to know if your buddy has a camera or a setup for audio conferencing. It figures it out and shows you right on your buddy list what they're set up for. There is zero setup or configuration. There are no phone numbers or IP addresses to type in. This all works off the instant messaging infrastructure, so all you have to have is their buddy name. That's it. No matter where they are.

It is location independent. As I travel around and connect to the network, I'm automatically telling the instant messaging server where I am. And so you, as a sender to me, know exactly where I am. You don't have to know. And if I'm going to call somebody, I've got a pretty good idea if they're there, because instant messaging provides presence as well. So we're leveraging the entire instant messaging infrastructure. It's not like making a phone call where you've got a work, a home, and a mobile number. I've got to call each one, and you might not be at any of them. Or you might have changed them. We don't have to worry about any of that with instant messaging, because the infrastructure handles it all. Wherever you are, all I have to do is click on your name, and boom, we're connected. And you can get a buddy name.

You can get a free AIM name from AOL. You can get a free .Mac buddy name from Apple. Or you can use your rendezvous buddy list and just connect with the people around you on an ad hoc basis. iChat AV works with any FireWire camera, built-in or USB microphones. You can even use camcorders if you have one. It's really amazing. You need a modem. A 56K modem is all you need for audio chats. Free long-distance phone calls over the net if you've got an ISP connection. It's amazing. And you need broadband for video conferencing. And that means DSL, cable, T1, or Ethernet. But you know what? A whole lot of people have this now.

Every business has broadband. Most schools in this country have broadband. Many hotels now have Ethernet jacks right in the rooms. And over 25 million homes have broadband. A lot of people have broadband. And we think this is really ripe to take off. This is video conferencing for the rest of us. And we've waited a long time to show you this, and I'd like to show you. Now, my friend and yours, Phil Schiller, is in the back room. And we're connecting to AIM right now. And I'm going to go ahead and call Phil. And the way I call Phil is I just go over to my buddy list, and there he is.

And I can pick his name and pick this little camera down here, or I can just click the camera right next to his picture. I click the camera, and I get a little preview here. Right there. Hi, Phil. Hey, Steve. How you doing? How's it going? Oh, I'm having a blast back here. Hey, listen, I'm sorry you couldn't be on stage with me, but we wanted to put you in, like, a home setting or something like that. Look, I can just stretch this out here, anything I want. Tell us something, Phil. Oh, I know how Alexander Graham Bell and Mr. Watson must have felt when they first called. Come here, Steve. I need you. And we can even make this full screen. Look at this. This is amazing.

You're going to have so much fun with this. You know, we've been using this, a few of us have been using this internal to Apple for over a month now, and this has completely changed the way that we work. I can call Phil up now at 11 o'clock at night and see him. Well, listen, Phil, I will talk to you later. Thank you very much for being the first public video conference we've ever done with iChat AV. See you soon. Bye-bye. Bye. Now, for my second thing, I'm going to do an audio conference, but I'm going to do an audio conference that's a little hard. I'm going to do an audio conference to Paris. One of my colleagues and a very good friend of mine, his name is Jean-Marie Hulot, and he agreed to stay in Paris for us, so we're going to do an audio conference with him, hopefully.

Again, just across the pond, over the Internet. It takes a little while longer to negotiate with France here. Hello. Hello. Jean-Marie. Hi, Steve. How are you? I'm really good. I'm really good. How are you doing? I'm doing extremely well. We have incredible weather in Paris. When are you coming? Oh, I don't know, but not today. As you can hear, not only do we have incredibly high-quality audio in iChat AV, but it's like you have a speakerphone. You have the highest-quality speakerphone you've ever heard. So what's going on there, Jean-Marie? I'm outside of my balcony.

It's quite late here, so I'm ready for dinner in 30 minutes or so. Well, listen, as I recall, because I've been to your house, you live near the Eiffel Tower, right? Yes, absolutely. Well, I sure wish I could see it. Listen, do you have a video camera there? Yeah, I can plug it in. Why don't you plug it in? I'll call you right back. Okay. Ciao. I'll call you back immediately. Bye-bye. So now Jean-Marie's going to plug in his video camera. Watch that icon up there change from a phone to a camera, hopefully, in a minute or two. Ah, see that? Now, notice this. So I'm waiting. I get a chance to preview myself, but we're going to be talking to Paris live here on iChat AV. Hey, Jean-Marie.

How are you doing? Great. So let me put this on full screen. I tell you, we were doing this yesterday afternoon when it was dark in Paris and all the lights of the Eiffel Tower were on. You could see people taking flash pictures from the top. It was extraordinary. Do you see some cars in the background going by? Do you want me to take the camera and show it to you? But you know, if you call back in one hour or two hours, it could be night and you would get the lights on the Eiffel Tower. It could be great. Okay. Again, this is totally going to change the way we work.

So Jean-Marie, you are the first international iChat we've ever done. Would you like to say anything to the audience here? You know, first I would say it is great for me because I will have to go less to the U.S. to see you still. Okay. Well, thank you, Jean-Marie. Bye-bye, Jean-Marie. Take care. All right. All right. This is what it's like when I have placed a call, but what's it like to receive a call?

Well, I've got somebody who's going to call me right about now. We'll see. And hopefully their call will come in any second. But this is going to change totally the way we communicate with each other. It has in the first month among us already, and we didn't have very many people to talk to because we're keeping this very hush-hush. So we cannot wait until we have hundreds of people to talk to. Well, there it is. So this is what I get. I click on this and I get a chance to pretty myself up before I accept it, and I accept it here. Hi, Al. How are you doing? How are you doing? How are you doing, Al? I'm doing great. How are you doing?

I'm doing good. Hey, listen. Where are you? I'm down in L.A. at UCLA. I'm a four-time visiting professor here, or VP for short, is the way I'm hanging on. Well, Al, you are... That's not funny. That's not funny. Al, you're the third video conference that we've ever conducted publicly with iChat AV. I just want you to know that. Being first is difficult. Yeah. I like your shirt, by the way. It shows up real well. Hey, listen, seriously, this thing is very cool. It really is. Well, you're the first board member of Apple to actually use it. I want you to know that.

Well, I feel privileged indeed, but I really am looking forward to using this regularly and flipping it to the top of my 17-inch laptop and calling Tipper at home. I mean, this is going to be a great, great thing. No question about it. Well, thank you very much, Al. I really appreciate this. See you soon. All right. Take care. So, iChat AV. Text, audio, video conferencing. It's going to be a really big deal for education.

It's going to be a really big deal for work. When you're on the road for your family and for your friends. And it's all driven off instant messaging. Now, iChat AV is standards-based. We're using total standard video codecs, audio codecs, everything else. But we're the first ones to do this. We've got the first solution that really works. So right now, there's nobody else to talk to. This is Mac-to-Mac only today. But as others copy what we do, we will endeavor to interoperate with them and do our best for that. So, iChat AV. We are going to release a free beta today that runs on Panther and Jaguar.

The beta times out at the end of this calendar year, December 31st. And before then, we are going to include it in Panther. We're going to sell it for $29 for Jaguar. The 1.0 is an incentive for you to upgrade to Panther. So, iChat AV. Video conferencing for the rest of us. The ultimate instant messaging. So, Panther. What an amazing array of stuff we've seen today. iChat AV. The new Finder. Fast user switching. Expose. File vault. Pixlet. Font book. New mail. Built-in fax. And these are just a few of the over 100 amazing new features in Panther.

We are super, super proud of it. Now, we want you to be the first to have it. So, we've got a developer preview of Panther, and we are going to be giving you a copy today. We are going to ship Panther commercially before the end of this year. We're going to sell it for $129, and we think it's going to be one kick-ass release. Now, what's the competitive landscape look like out there? Well, we know where we're going to be in 2003. We're going to be ready. Now, our competition was going to be out in 2004.

They've slipped to 2005, and some people tell us they might even slip to 2006. We don't know. But this is what they're up to. So, that's Panther. No offense to our colleagues at Microsoft. We actually do have a great relationship with them.

That is Panther, and we think it's going to be incredible. So, next big topic. I want to go back to iChat AV. Because iChat AV has a companion product that we're announcing here today. It's a video camera, and it's called iSight. You might have seen one on my computer over there. iSight is the eyes and ears of iChat. And it's a remarkable video camera. It delivers full motion video at up to 30 frames per second. 640 by 480 resolution at 24 bits per pixel. Auto-focus. It's got an F2.8 lens, so it takes in a lot of light, which is great for low-light conditions. Auto-exposure. Built-in dual-element microphone for noise suppression. And one single firewire brings video into the computer and audio into the computer and powers the camera.

Just with one firewire connection. Now, we said that iChat AV works with any firewire camera. And it does. The most popular of those is the iBot. And actually, probably the best is the iBot. And so, I want to show you a comparison between the iSight and the iBot. This is the iBot. Took it myself here. And that's what it looks like. And it's okay. But look at iSight. Boom. It's dramatically better. We've got dramatically better lens, dramatically better sensor. We've got a lot of video processing involved that really cleans up the image. It is dramatically better. But the iBot's even worse than this. Because I held up... I had somebody holding up an iBot to take that picture of me. They held it up on top of the screen.

But that's not where the iBot sits. The iBot sits on your desk. And so, you don't get a picture like this. You get a picture like this. And we believe this is one of the reasons that video conferencing has failed. This and the fact that it's impossible to configure and set up and the quality's not been good enough. But we think camera position is also one of the reasons. You don't form any connection with that person on the right. There's no emotional connection. As where the one on the left, you do. You see their face. You see their eyes. And it's a really big deal, we found out. Well, how do we keep iSight in the right position? We built a really nice mounting system for iSight. It mounts on portables. Look at this. It just clips right on to your Power Books or iBooks. It sticks right on to the back of your iMacs with a different mount or your cinema displays or with a different mount right on the top of your eMac.

And so, the camera is always right on the top of your screen where it needs to be to make that emotional connection with the person on the other end. And so, screen top blows away having a camera on the desk. So, iSight. Three stands for top of screen mounting are included with each iSight. It's got an integrated rotate and tilt. It's got a lens shutter so you can make sure nobody's looking at you. Lightweight, durable aluminum body and a hard carrying case. So, here's the shutter. Boom. You know, no peeping Toms here. And for portables, again, it clips right on your portable with a special mounting stand. And you can take the camera off. We've got a nice hard plastic case. You can take it with you in your Power Book. I've had calls from Phil where he's been traveling.

Within five minutes of getting in his hotel room, he's paid the ten bucks for the Ethernet service for the day. Taken out his camera and we're video conferencing. At very high quality. It's amazing. So, iSight. That's what the box looks like. iSight costs $149. It is the best video camera on the market for this use. And it's got, remember, dual element microphone built in as well for very high quality audio. It's available today. And for all of the developers here at the conference, we want to say a very special thank you. We're going to be giving you an iSight camera today. Thank you.

We want to kick video conferencing off right. We know you are the guys to do it. So you can pick it up at the registration area after the keynote or throughout the day. So that's iSight. It's an amazing camera. And it's the eyes and ears of iChat. Okay. Next big topic. What's this? This is called Xcode. We have a completely new set of developer tools for you for Mac OS X. And what is the single word we followed as our Bible? Speed. Number one thing. So let me tell you about Xcode.

Number one, fast compiles. We're using the new GCC 3.3 compiler, the latest and the greatest. And it's definitely faster. To show you how fast, I'm going to show you the results of the UI portion of the Finder. It's over 100,000 lines of code and over 1,500 files. Now, remember, Jaguar development tools used to be ten times slower than the gold standard up to today, which is Code Warrior. We were ten times slower. So to build the Finder UI in Xcode, Xcode took 377 seconds and to build it in CodeWarrior is 223. They are still faster than us, but we've reduced it to under 2 to 1. And that's not a bad accomplishment and we're going to keep on going. But we love to be number one, really.

And so we've changed the rules of the game. We have added distributed builds, which means you can set up Xcode to automatically use idle resources on the net completely automatically. And so, let's go look at that same build. There's Xcode and there's CodeWarrior, same numbers as before, but if we add just one more machine on the net that Xcode can go find out there, we are now down to 208 seconds with one more dual one gigahertz G4 on the net. And if we add three more for a total of four additional hosts, we are down to under a hundred seconds.

And if you've got a team of developers, you should run out and buy one of these. So that's fast compiles. Now we want to address turnaround because we've got fast turnaround. The turnaround loop, of course, is where most developers spend most of their time. They've got to stop their app. They've got to debug it. They've got to recompile it, relink it, and start it up again, right? This is the classic turnaround loop. We've got some cool new technologies. First one built in Xcode, zero link. We've removed the need to link. We only link objects you need to launch. And so it takes linking completely out of the equation, boom, gone. Link time, over, zero. Zero link.

Next, we've got predictive compile. What is this? This actually starts compiling while you're still editing. It literally starts compiling before you even think you want to compile. And so what it does is it removes half the compiling time on average, literally shortens it by a factor of two, boom, there goes half the compiling time. And lastly, we have a technology called fix and continue. You can make changes to applications while they are running. You do not have to stop them. And so this takes this out completely. Turns out this is a lot of time. So a single fixed turnaround, let's see what it takes running on the same machine.

In Jaguar tools, took 29 seconds. In Code Warrior, took nine seconds. In Xcode, three seconds. It's really fast stuff. And so we have reduced the turnaround from this to this. We've also put a new interface on it that is just so much better than what we had. We've cleaned it up and we've made it put the most relevant stuff right in front of you and allowed you to find stuff super fast. And to demonstrate this for us, it's my pleasure actually to introduce Apple employee number eight. Somebody I've known for a long time. Somebody we hired when he was 15 years old. Chris Espinoza. I'm really happy to be here.

I've been working with Apple developer tools literally since integer basic in the garage in 1976. And I gotta say, this is the best thing we've ever done in developer tools and I wanna show it to you. The first thing you notice about Xcode is that it's beautiful. It's clean. It looks a lot like your iApps. We took the ideas from Panther and from some of the iApps and we put the things that are important to you in a column on the left. So here's your typical view of your source code. Now this is a source code for iTunes. This is iTunes 3. This is a big application. This is a carbon application. This is even a power plant application and I'm gonna show you using it in Xcode.

You've got your traditional view of your folders and your files. But we figured you deserved a list view and instant searching too. So if I wanna find all of the files in my project that have to do with playlists, I just go to the search box and there we go. There are all my playlist files. It's not like type select. It's filtering just like in the finder. Now that works not just on my project but it works on other things in my project as well. So I go to my targets. I select a target. I get a list here. I can search on that. And if I go to the inspector for my target and I look at all my target settings, here are all the project settings and all the compiler settings and all my linker settings for that target.

Well say I wanna change the optimization in this target. I don't know which one of these I need to change. There are so many and this is just the summary view. So I go to the instant search box and I narrow it down and I find my optimization settings and they're right there. I select it and it says optimization level. Maybe I wanna know what that means. Well I've got the explanation right here in the inspector. And we've got smart groups for all of your executables or smart groups for all of your resource files. We've even got a smart group for all the symbols in your built project. This is 27,000 symbols in my database. I can scroll through them and I can search instantly.

For example, I wanna find everywhere where ASCII is used in the symbols in the iTunes source base. There we go. I can select one of these and jump right to its definition right in the Xcode editor. I think you're gonna see that this completely changes the way that you work with your source code. It's gonna make it a lot faster to find what you're editing, to get to your source code and to find your way around your project. But when you said speed and when you said fast, you meant compile speed. Let me show that to you. So I've got my project here. I've got it sorted by the code size of the object. I'm gonna do a build here. And you can see the compiled executables coming in that fast.

This is CodeWarrior class compilation speed. This is gonna be a lot more familiar to you if you've been using CodeWarrior as a compiler. But like Steve said, compilation speed isn't everything. You spend a lot of time in your compile, edit, link, debug cycle. We've really shortened that. And I wanna show you how we do that with a little toy application called Flower here. When I run and debug the Flower application, it should come up, draw a flower on the screen. Well, that's not a very interesting flower, is it? So I know that there's something that controls the number of petals and it's something called petals. So I'll do a find here and I'll find petals.

And there we go. There are my search results. I can double click, go right to the line of code. Well, it looks like for test purposes, I just put one in here for the number of petals. I'll just select it, delete it. Now, the compiler's already kicked in. It's already compiling my precompiled headers and my header files from my source file. And it's ready to go. When I press fix, it's gonna finish up the compile. It's gonna link. It's gonna build. And it's gonna change my code. Now, you might say that's cheating. I just changed one to a four. I mean, I could do that with peek and poke, okay? No, this is really recompiling the object and using MachO and DYLD to dynamically link in the object to the running application.

So I can change this constant to a function call, click fix, and it does the same thing. There we go. So where it really matters, where the rubber meets the road in the compile, link, debug, step through, find a fix, fix it, and get back to work debugging your application, Xcode really makes your turnaround time incredibly faster. It's the best thing we've ever done in developer tools. There's gonna be a whole couple hours on it at 3.30 this afternoon in the same room. Hope to see you there. Thank you very much. Thank you, Chris. So, Faster Compiler GCC 3.0, distributed compiling, zero link, predictive compiling, fix and continue in an entirely new user interface.

This is Xcode. It is included in Mac OS X Panther. There is one more thing we wanted to talk about today. Now, some of you may have noticed on the net this. For those of you that have not been aware, there was a funny thing that happened on our website last Thursday, as I recall, where some specifications were posted on a Power Mac G4 page that looked pretty remarkable. Now, the reaction to these specifications fell into one of three camps.

One, it's too good to be true, can't be true. Nothing could ever be this good. Number two, it's true. And number three, it's brilliant marketing on Apple's part. We internally, one of the folks internally had a great name for this. He called it premature specification. But I am here today to tell you that it was a mistake and it's true. But it doesn't even begin to tell the story that we get to tell you right here and now. We are delivering today the world's fastest personal computer.

It's amazing. Now, there's three things. There's the chip, there's the system and there's the product. And we're calling it the G5. Now, the G5 has some amazing properties. Number one, it is a 64-bit processor. It is the world's first 64-bit desktop processor. And it runs our existing 32-bit applications natively, no problems at all. 64-bit processor. Secondly, it is running at up to 2 gigahertz.

This is the fastest 64-bit processor ever. Third, it has a 1 gigahertz front side bus. It is the fastest front side bus ever. And it is built for full symmetric multiprocessing. This thing has been designed from the ground up for dual processor systems. So these are some of the highlights of the new G5. Now, it's got an entirely new architecture that has the industry's highest bandwidth.

And let's just go through it for just a minute. First of all, it's massively parallel. It's got a 12-unit core. And what that means is we can have up to 215 in-flight instructions. Over 215 instructions can be being processed at the same time. The G4 can do 16, which means if your app can get this thing flying, it can scream. It's got an optimized velocity engine with a dual pipeline design. It's got two double precision floating point units. That's twice the G4. This thing is a floating point monster, as you will see. Two fully symmetric integer units, that's twice the G4. Two load and store units, twice the G4.

And massive branch prediction logic, which I don't know what it does. It predicts branches. I don't know. But it's a good thing. This is a new generation architecture, and this is just the beginning. And IBM has done a phenomenal job on this. We've worked with them very closely. And they also happen to have the world's most advanced chip fabrication on the planet. 130 nanometer processes is built in. Silicon on insulator. Eight-layer copper interconnection. Silicon on insulator. Eight-layer copper interconnects. 58 million transistors. I don't know how they count them.

This thing is built on 300 millimeter wafers. These are 12-inch wafers. I happen to have one right now. This is how they build G5s. It's amazing. It's just amazing. And they build it in a $3 billion state-of-the-art semiconductor fabrication facility in Fishkill, New York. Built in the USA. Now, this is what it's like. This is a city down there. It's amazing. And this is the map of the city. This is the processor itself. And this is how they're made.

And they're made on these giant 12-inch wafers untouched by human hands in the most advanced semiconductor factory in the world. Where robots move the wafers around. There are no people getting anywhere near these wafers. This is what it's like. It's a giant factory making these giant wafers. And we are thrilled with this partnership with IBM. It's producing dramatic results that we're announcing here today. And it's my pleasure to bring up Dr. Johnny Kelly III. John's the senior vice president of all the technology groups at IBM. John, I'd like to welcome you here. Thank you, Steve.

What a great day for Apple, for IBM, for our Apple developers and Apple customers. So you're probably thinking, how did we do this? How did we catch up and how do we pass our competition in one giant step? Well, what we did is we went to IBM and we took the DNA, the core, out of our highest performance 64-bit microprocessor supercomputers. And brought it down into the 64-bit desktop processor. Operating at two gigahertz with a bus, as we showed, at one gigahertz. And the technology, we took our most advanced 130 nanometer technology, which, by the way, has a gate length, if you're a real geek like me, of under 50 nanometers.

Horizontally, we shrunk to 13 angstroms, six to seven atomic layers in the gate. This is very advanced technology. And that's why, by the way, I tell my boss it costs three billion dollars for one of these. Only IBM, in partnership with Apple, can produce this kind of technology. And I'm very proud of our teams and all that we've done. But team, this is just the beginning. As you know, IBM spends nearly five billion dollars per year on R&D, in addition to big fabs like this. And much of that spending is aimed at our advanced microprocessor and semiconductor technology.

And as we sit here today and as we speak, there are hundreds of IBM scientists and engineers working on the next generation. So we have a roadmap that's going to knock your socks off. And what a great partnership we have with Apple. Steve, thank you very much. Congratulations. Thank you very much. We've been waiting for this day for a long time. We've been working very closely with IBM for several years now to create this G5. And it is so exciting to launch it here today. So this is the chip. And now let's build a system with it.

We start off building a system, even before we get to the processor, with a chip that Apple designed. It's the G5 system controller. And it's among the world's fastest ASICs. It's got a point-to-point architecture. So there's no contention between the various things that want to send data around through the system. Dedicated bandwidth to main memory for each subsystem. We designed it, and IBM is fabricating it in the same state-of-the-art facility that's building the G5. So this is our system controller. Now to that, let's add a G5. The G5, as we talked about, has a one gigahertz bus. That's six times faster than the G4. Eight gigabytes per second of bandwidth into this processor.

64-bit wide bus, double data rate, bi-directional. It screams. And we can add a second processor. Now when you add two processors, this is where these independent buses really come into play. Because one processor does not slow down the other one at all. They're completely independent. We have 12 times the bandwidth of the G4 here. And again, there's no contention for the bus, no slowdown when you add a second processor. Then we add memory. We decided to go with the hottest memory money can buy. And that is 400 megahertz, 128-bit wide DDR memory over twice the bandwidth of the G4. We can get 6.4 gigabytes per second of bandwidth out of this memory system and into those processors.

Now let's add graphics. For graphics, again, we decided to use the latest and the greatest, AGP 8X Pro graphics. Twice the bandwidth of the G4, two gigabytes per second. We got the latest chips from NVIDIA and ATI. And we power Pro cards. You can put in the really high-end Pro cards if that's what you want. So next, we start to put on the I.O. Slots. Again, the latest and greatest, the 133 megahertz PCIX slots, almost eight times the bandwidth of the G4, two gigabytes per second. We connect the slots with hyper-transport into the main G5 system controller. We got 133 megahertz 64-bit slot and 200 megahertz 64-bit slots.

And next, let's connect our storage. For storage, again, we turn to the latest technical standards and that is serial ATA to connect to the drives, 1.5 gigabit per second of bandwidth. We got independent interfaces to each drive, again, so there's no contention. This is an Apple-designed IO chip, again, connecting to the mothership G5 controller with hyper-transport. And lastly, the rest of the IO coming off this Apple-designed IO chip, we've built in an incredible suite of high-performance IO. We've got FireWire 800 and 400, USB 2.0, gigabit Ethernet, Airport Extreme, Bluetooth, and for the first time, optical, digital, in and out, as well as analog audio in and out.

This is our system and we're mighty proud of it. We think it is the beginning of a whole new generation of architecture for Apple. So that is the system. What kind of product are we going to build out of this? Well, the first thing is we're going to build products that have single or dual processors, obviously. Up to 8 gigabytes of memory, we are going to break through the 4-gigabyte barrier and on this system, ship up to 8 gigabytes of memory. Now, why is this so important? Obviously, if you have stuff that takes more than 4 gigabytes, it becomes extremely important. But it's even important in more subtle ways. The G5, as we said, is a monster in terms of bandwidth.

And talking to the disk drive, it can talk at 150 megabytes per second if only the disk drives would feed data that fast. But to memory, it can talk at 6.4 gigabytes per second. That's over 40 times faster. And so with more memory, what that means is you can leave stuff in memory and not have to swap it off a disk. This is huge for certain applications, 40 times faster. This is so fast that you can transfer the contents of an entire DVD in less than a second. So 8 gigabytes of memory. We're building in a 4X super drive into all the models. We're building in GeForce FX 5200 Ultra chip into the two lower-end models.

And a Radeon 9600 Pro, one of the hottest mainstream graphics chips around, into the high-end model. You can configure it however you want on our website, however. Now, all this great stuff, should we put it in here? No, no. We need a much more advanced enclosure to hold our next generation system. And we've been working on it for some time, and it is really exciting. It looks like this. Like that. And let's go ahead and show it to you now. There it is.

This is an all-aluminum enclosure that is super high-tech and can handle the power, both processing power and thermal power, generated by such an architecture and its follow-ons to come. I've left the door open off the side so you can see this thing. It is a thing of beauty.

Now let me show you, better on slides, the inside. So we've got our enclosure here. This is the front. As you can see, we want to get a lot of air in the front. There's the back. As you can see, we want to get a lot of air out of the back. So let's take off the door. Now there's a piece of plastic on the inside which routes the air around. Let's take that off. And you can see the two processors, place for cards, place for rotating storage. This enclosure has four separate thermal zones. One that goes through the power supply at the bottom. One that goes through the processor bay and the memory. One that goes through the I.O. cards. And one that goes through the rotating storage. In this enclosure, we've got a breakthrough.

We've got, this whole thing has got computer-controlled cooling system in it. We've got nine fans in this enclosure. Now you might think, oh my God, nine fans means it's going to be nine times louder. No. It turns out the opposite is true. Because by putting the fans precisely where they're needed and independently controlling them all, we can make it a lot quieter. A lot quieter. As a matter of fact, we're down to 35 dBA at normal use at room temperature. This is twice as quiet as the latest T4. So, this is an amazing architecture. It's an amazing enclosure. It's going to give us a tremendous amount of room to grow.

So the systems we're going to build are going to have single or dual G5 processors. Up to eight gigabytes of memory. Up to 500 gigabytes of internal storage. Half a terabyte. A 4X super drive. They're much quieter using an advanced cooling system. And the very professional aluminum enclosure. Super rugged and super beautiful. So this is the new G5 enclosure. And again, I want to stress, we're the only folks that put handles on things. Because our pro customers love them. To be able to take these machines around, swap them in and out when they need to. This is huge. Nobody else in the whole industry does this. And we've kept that on the new G5 enclosure. The new PowerMac G5. It's going to come in three models.

We've got three models. First model. A single 1.6 gigahertz G5 chip. Quarter gigabyte of memory. 80 gigabytes of hard drive. GeForce 5200. 4X super drive. $19.99. Second model. 1.8 gigahertz processor. Step up 200 megahertz. Double the memory. Double the disk size. For only $400 more at $23.99. Third model. Dual 2 gigahertz. Double the memory. Double the disk size. For only $400 more at $23.99. Now, these are the models we're going to have on the channel.

Of course, you can go to the website and configure anything you want. So what's the competitive landscape like? Well, obviously we turn to Dell, right? We're the low-cost provider in the PC space. And we configured a system that isn't even as fast as the one that we have here for $29.99. Dual 3 gigahertz Xeon systems. 533 megahertz bus. The fastest PC money can buy. Same amount of memory. Not quite as much disk. Something that's not quite as good as a super drive, but we got as close as we could. And what do you think it costs? You can go do this today on Dell's website. Over $4,000.

So from now on, anyone who tells you that Apple's high-end machines are more expensive than PCs, you can tell them where to look. New Power Mac G5s. We're going to ship them in August. All three models. And that is the product with the system and the chip. So what kind of performance are we getting out of this thing? Well, I'm pleased to report that this is the world's fastest personal computer. Now let's prove that. To prove that, there's two places to turn. One is analytic tests, and the most respected tests in the world are called spec tests. And second is real-world applications. So let's start off looking at spec tests.

We're going to compare three systems with three chips in them. Number one, two gigahertz G5 with a one gigahertz bus. Second, a 3.0 gigahertz Pentium 4 with an 800 megahertz bus, the fastest we can get our hands on, the fastest you can buy. And a 3.06 gigahertz Xeon processor, again, the fastest Xeon you can buy. And we're going to compare them in spec tests. These are industry standard tests run on these machines. We're going to use GCC 3.3 because we want to use an open source compiler that's the same compiler on all machines, and the compiler we all use, by the way. And there's a lot of test houses that help verify these things, and we hired one of the best, Veritest, to do independent tests and provide independent test results.

So first we're going to start off with single processor tests, and there's three systems we want to test. One with a single P4, one with a single Xeon, and one with a single G5, and let's see how they did in two tests. One that measures integer performance, spec N2000, and one that measures floating point performance, spec FP2000. Well the P4 scored 889 on integer, 836 on integer for the Xeon, and the G5 scored 800. Not quite as high, single processor integer. Let's see how we did on floating point. 693 for the P4, 646 for the Xeon, ooh, 840 for the G5.

So we are 10% slower on integer, and 21% faster on floating point. I think we can safely say that we basically caught up with a single processor system the fastest you can buy. But now let's look at dual processor, because this is the heavyweight championship. This is what determines the fastest computer in the world, because a dual Xeon system beats a single P4 system, and you can't put two P4s together. That limits you from doing that, so you buy Xeons, right? So this is what's going to determine what is the fastest computer in the world. Now we're going to put a single P4 up for reference here. Again, you can't hook two P4s together in a system. And we're going to take a look at spec tests for dual processor system. They're called rate tests, spec int rate and spec floating point rate.

Again on integer, single P4, 10.3 on the spec rate test. Dual Xeon, you can see the benefit now of adding that second processor, 16.7. Dual G5, 17.2. We edge them out on integer. Now let's go to floating point, 8.1 for the single Pentium, 11.1 for the dual Xeon, 15.7 for the dual G5. We are 3% faster on integer and a whopping 41% faster on floating point than the dual Xeon machines. And we can now clearly say that the new Power Mac G5 is the world's fastest personal computer.

Now that's spec tests. What about real world apps? Well let us show you a few, because today we're going to have a dual duel. Dual G5s versus dual Xeons, the fastest PC money can buy a 3.06 gigahertz dual Xeon machine compared with a dual G5, Power Mac G5. First up, it's my pleasure to welcome from Adobe, Greg Gilley, who's the Vice President of Engineering. Greg, welcome. Thank you. So Adobe's been working very closely with Apple over the past couple of months to tune our app's performance for the new G5, and we've been pretty impressed.

So on some areas of Photoshop, we have seen performance that's more than double any of the other machines that we've ever seen. The memory bandwidth on this machine is absolutely amazing. Even one of my most skeptical engineers got really excited about this box. He's sitting down here laughing. So we're going to release an update, a performance update for Photoshop around the same time these machines ship. We're convinced that our customers are going to love this box, and if you've been waiting to switch your Macs to Mac OS X, here's the perfect opportunity to pick up a hot box and make the switch. We've also been working with Apple on performance on Mac OS X, and it's just going to keep getting better.

So one more thing, I know I have a bunch of engineers out there who are seeing this box for the first time, and I know you're drooling, and the good news is at these prices, you're likely to get one. Thank you. I'd like to invite Phil Schiller up, our Senior Vice President for Worldwide Product Marketing, back from the bookcase. The library. So Phil, what are we going to do today here? I've been dying to do this for so long. Up on the screen, on the left-hand side, you see a brand-new Power Mac G5, dual two-gigahertz screaming machine. On the right, we have a Dell, the fastest money-can-buy PC, dual 3.0 Xeons. 3.06.

3.06, a Pentium 4 3.0 for the Xeons, and I had to break the bank to buy one, but I got the approval to do so. And we're going to do a head-to-head test, a real-world application test using Adobe Photoshop. As many of you know, it runs both on Mac and Windows, and one of the great things about Photoshop is not only can you copy the same files and run it on both machines, you can run a list of actions that the artists actually did to create their documents and see how they run side-by-side. And so we've got, again, dual G5s running at two gigahertz and dual Xeons running at two gigahertz and dual Xeons running at 3.06. Now, we're going to use a document that's one of my favorite. It's actually a real poster that was done.

This is the international poster for Finding Nemo, and it's actually been, we got it from the artist that did it. It's been printed, and it's in hundreds of countries, well, dozens of countries around the world. So. Okay. You want to count this down? Great. Three, two, one, go. All right. So we're opening up this file. It's over 360 megabytes. It has over 100 actions that the artists did to create this movie poster. It does things like transforms, dissolves, Gaussian blurs, lighting effects, compositing, and the PC is not hung. It's thinking. Really hard. We're continuing to scream along in the G5, getting real work done, and the artist working on the PC probably just went to get a latte.

And there. Mac is done. Woo! It will finish. It turns out we've timed this, and it's about 2.1%. The Mac is 2.1 times as fast as the PC.

All right. The PC's almost done. It's done! Woo! Thank you, Phil. So. That is an extraordinarily important app, Photoshop. Now let's move on to Luxology. Luxology makes products for 3D communications. And it's my pleasure to welcome Brad Peebler, the co-founder and president of Luxology. Brad? Thank you. Hi, I'm Brad Peebler of Luxology. Luxology's a new company with the sole intent of developing killer technology for 3D visual effects and content creation. There's one constant in our space, the need for speed.

If you're going to keep up with the high-end requirements for today's television, film, and gaming visual effects, you need a couple things. First of all, you need raw CPU performance. Second of all, you need really wide pipes for managing and manipulating all that data. Well, that's why when we saw the specs on the G5, we were ecstatic. We were even happier to find out that our 32-bit app would run on their 64-bit chip natively. Of course, we wanted to recompile the app for the G5. So how long did that take? I know you developers are all curious about the migration process. Well, we started our projects using Apple development tools. It took us, drumroll, 15 minutes to move to the G5. Now, that's 12 minutes to get the files off the source server and set up a build environment.

And three minutes to recompile a clean build of several hundred thousand lines of code on the dual 2 gigahertz machine. So obviously, for you guys, for this audience, compile time is super important. Sorry, Steve, I'm not going to be buying the next serve rack after all. But what's more important is application performance. Let's take a look at what we've got here. Now, what we're going to be looking at, this is actually a simple example of a complex problem. Typically, when you think 3D, you think GPU, graphics performance. And with the new G5, we can have the highest-end 3D OpenGL accelerators. What we've done here is we've actually taken out all the high-end GPU work, and we've put a lot of it on the CPU load. So transforms, 3D transforms, all the poly shading, all the enumeration, all happening on the CPU.

So should we do a little run through? Sure. Again, for those who don't see the Apple up there, you have a Power Mac G5 on your left, the same machine we just saw, and the Speedy Windows machine up on the right. So if you want to count us down, three, two, one, go. So you can see immediately the G5 just starts pulling that data in and jamming through it. This is motion capture data we got from our good friends at Kedara. Thank you, Kedara. Motion capture data means you have a keyframe. every frame for every joint on every character. So these data files get very large. It's very important that we can push it onto the chip, do all the transforms, and then push it off the graphics card. Two things you'll notice, obviously, it's double the performance, but you'll also notice that the consistency of the frame rates on the Mac is much better, which is really important for animators who care about timing.

So you have to have good timing if you're doing animation. So you see the consistent performance there versus the rather choppy side over here. Should we do a little bullet time homage here? Sure, would you like to do a nice, cool effect? We'll spin them around. Sure, three, no, I trust you. Three, two, one, go. So you see now we're doing a full 3D transform of the entire world while the animation's playing back, and the G5 chews right through that nary a hitch. So, good stuff. Thank you. Thanks, Brad. Thanks, Brad. Thank you, Brad. You know, I wanted to just clarify one thing. We've got a whole bunch of things in our new compilers that really optimize for the G5, but your G4 applications run without recompiling totally natively.

And if you want to recompile them to pick up even more performance, it's really easy to do as Brad just highlighted for us. Next up, Wolfram Research, science and engineering. And it's my great pleasure to introduce Tao Gray, co-founder of Wolfram Research. So Steve actually goes back a long way with Mathematica. Believe it or not, it is 15 years ago to the day today that he came to our press conference to help us introduce Mathematica version one to the world. And not only that, today we are introducing Mathematica version five for the G5. In those 15 years, Mathematica has become pretty much the de facto standard language for doing mathematics in fields from physics to finance to fundamental biology.

But in version five, we're introducing features to allow you to do sort of very large scale numerical problems. Things like solving a system of linear equations with a million unknowns. And that happens to be exactly the kind of thing that the G5 is especially good at. I think you could really use it for. So we have a little demo here. Hey Tao. So I have to be the PC again? Sorry. So let's see, are we ready? Okay. Three, two, one, go. Okay, so this is kind of a little simulated real world situation. We have it doing, on the one hand, very large integer calculations like you might do for cryptography, for example. On the other hand, doing some really large numerical matrix operations like you might use in signal processing or image analysis or things like that.

Of course, we're using it to make some pretty pictures. And you know, it's going, I don't know what, twice, two and a half times. It's going quite a bit faster. And, you know, often for this kind of thing, it's really not really a question whether you could do this with a computer. It's whether you could do it before breakfast. Because, you know, I had to try a lot of different examples and figure out some parameters and things. And, you know, the kids are going to wake up. I have to get on a plane, go to California, give a demo. You often have these kind of deadlines where you need an answer today, not sometime next week. You don't have time to write a Fortran program and optimize it. You want to use a high level, abstract symbolic computational system, a language like Mathematica, where it'll just give you the answer. You want to use six gigabytes of memory? Fine, don't bother me with the details. I want the answer.

We tried to come up with a demo where we'd actually show you the six gigabyte capacity, but we couldn't figure out any that wouldn't just destroy the PC. And, you know, it was thrashing for a week. It'd screw up the next demo. It's just not good. As you can see from the animation that the Mac is now completed and has been done for a few moments. It's 40 steps of the fractal and the PC is now just breaking over 20. So without breaking a sweat, the Mac has just been twice as good. The competition for this machine is not PCs anymore. Basically for our customers, the competition is high-end units workstations that cost twice as much. It's faster than all of them too. It's sort of... It's sort of... Hmm. This is really the dream machine. It's got, you know, the units operating system that you need for anybody who's using Mathematica, who should be using Mathematica.

You know, you've got units, you've got all the desktop applications you want. You've got the beautiful Windows system. It's incredibly fast. It's got a spare processor. You know, if you want to leave Microsoft Word running or something like that. And so this is where we've come in 15 years of partnership with Steve. And I don't know where we're going to be in 15 years, but I know there's going to be a version of Mathematica. It's going to be running on some kind of, you know, nanotube Mac. And maybe Steve and I will be shuffling around here to show it to you. I hope you all be here to see it. Thank you very much. Thank you, Tao. Next up is our own eMagic.

It's one of the most popular music creation software on the planet. And it's my pleasure to bring up Gerhard Lengeling, who is the co-founder of eMagic. Good morning, Gerhard. How are you? Thank you, Steve. The G5 is a dream machine. It is exactly the machine all musicians have waited for. At eMagic, a lot of engineers are musicians too. Some of them are happy enough to get a machine, worked on it, did some optimizations, and obviously also did some benchmarking. And we all have been so surprised. As a benchmarking tool, we used a software instrument, a sampler, and I asked you, how many voices, how many notes do you think, is it possible to play at the same time on that machine?

64 over 100. It's 1,000. It's more than 1,000 voices which can be played at the same time on that machine. This is amazing. All the voices are high-quality, 24-bit, and all of them are stereo. As a second example, if we look in studios, in professional studios, you see the big mixing consoles, very wide, lots of faders, many knobs. If you have a really huge project and you want to have this mixer now running logic in software, you might want to have many EQs.

Let's assume 100. 100 EQs, eight bands each, and stereo each. This adds up to 1,600 bands. And guess what? The G5 does it. But it's even more surprising, it does it with only 25% CPU power. The new architecture of the machines benefits logic greatly. As a music application, we handle a lot of audio streams. Obviously, the CPU power is great, but very often forgotten is the memory bandwidth, and this is very important for us.

We have lots of audio streams going from one place in the machine to another place, lots of buses, outputs, voices, everything. Many of them are contiguous. That means they don't fit in the caches, and I'm really excited that we have this machine now, that the combination of the G5 and logic works so well. Instead of talking about music, maybe we should go to the demo. Phil? So again, the venerable Mac on the left and our fun PC on the right. As you know, eMagic Logic is on the Mac, and the latest version is not on Windows, so we have the most popular sequencer on the Windows side. That's Cubase. And two great products, but we've got a very complex piece here, a piece that was actually created by BT, a great musician who uses a Mac, and you'll see in a minute why.

And this is a piece of music created for a trailer for The Matrix. And since it's music, we're going to play the PC first and then play the Mac, and I think there'll be a noticeable difference. In addition to what you hear, for those who can see the small CPU meters in the bottom right-hand corner of each display, you'll notice something different in how much CPU they use. So let's start with the PC first and give it a first shot at this musical piece. MUSIC PLAYS MUSIC STOPS I'm sure that's not how BT meant for it to sound.

Well, we could sit here and listen to this, or we could choose to use another computer. So let's take a listen to it on the Mac. If you'd like to. Sure. That's pretty cool.

So let's summarize. Adobe Photoshop, over twice as fast on the Power Mac G5 as the fastest Pentium, I mean the fastest PC money can buy a dual 3.06 Xeon. Lexology turned out to be 2.3 times faster on the G5. Wolfram Research turned out to be 2.3 times faster. And logic, well, I don't know how to calculate that. So in real world tests and in spec tests, we can clearly say we've caught up with the PC and passed them on both integer and floating point to be the fastest computer in the world. Now, what about the future?

We're at 2 gigahertz today. IBM and Apple are today announcing that within 12 months, we'll be at 3 gigahertz. Three gigahertz processor clock, that's up 50% within 12 months. And so, believe me, this architecture has legs. Power Mac G5, an amazing, amazing new machine, and we've got a video that I'd like to show you now. So let's run the video. Today's personal computers use 32-bit technology. The computers of the future will use 64-bit. But the future is now at Apple. The new Power Mac G5 is the world's first personal computer with a 64-bit processor, accelerating everything from 3D animation to scientific computation.

Oh, boy. This is going to be good. I can tell. When we started the G5, we knew we couldn't make something just a little bit faster. We had to make it a whole lot faster, and we did. In fact, it's the world's most powerful personal computer, period. This new Power Mac G5 has bandwidth to burn. Dual 2 gigahertz, 64-bit power PC processor with optimized velocity engines. Dual gigahertz processor buses, each capable of transferring up to 8 gigabytes per second. A memory subsystem that supports up to 8 gigabytes of 400 megahertz DDR RAM, with 6.4 gigabytes per second in bandwidth. The new Power Mac G5 has blazingly fast expansion, the fastest ever in a personal computer.

It features state-of-the-art 8X AGP Pro graphics, 133 megahertz PCI-X slots for cutting-edge music and video solutions, and two serial ATA buses for ultra-fast internal storage. The Power Mac is completely new from the ground up. At its heart is the Power PC G5 processor, which can handle over 200 in-flight instructions. That's 70% more than the fastest Pentium on the market today. To create this processor, we turned to IBM. The goal of this partnership is for Apple and IBM to come together so that Apple customers get the best of both worlds, the tremendous creativity from the Apple Corporation and the tremendous technology from the IBM Corporation.

IBM invested over $3 billion in a new fab to produce these large 300-millimeter wafers. This Power Mac G5 microprocessor has over 50 million transistors on it, and it incorporates IBM's leading-edge 130-nanometer technology. That's 1 800th the diameter of a human hair, but this is only the beginning. We have already built the prototypes for next-generation Power PC microprocessors. The G5 is an incredibly fast chip. It's so fast, so powerful that it requires extraordinary cooling.

We've designed the new Power Mac G5 with four distinct thermal zones. Now with thermal sensors in each zone, you can actually cool them independently. And that's important because it means we can cool them quietly. In fact, it's two to three times quieter than the G4. Everything is designed to be straightforward. The door is removable, which allows you complete access to the hard drive, to cards, and to the RAM. The Power Mac G5 is an amazing feat of engineering, featuring two incredibly fast Power PC processors, up to 500 gigabytes of internal super drive, up to 8 gigabytes of memory, breaking the 4-gigabyte barrier. Everything and more that you'd expect from Apple's top-of-the-line machine.

It's very important to Pixar that we be able to show our frames at full resolution, and the G5 lets us see every pixel on the screen and be able to send it around the studio. That's fantastic. After running our RenderMan benchmark, we can now say that the G5 is the fastest desktop in the world. I think the one word that describes the Power Mac G5 to me is stunning. It's stunning because while people have speculated that Apple might change chips, they had no idea about this entire redesign of the architecture. It's stunning. The beautiful thing about the G5's ability to run 32-bit and 64-bit programs natively is that artists like to use lots of different programs, while they don't have to worry about compatibility with their old programs and their new programs.

They're just going to work, and they're going to work faster. My first reaction to the G5 was just one of, wow, Apple has done it again. The performance of the G5 is just incredible. We've been working very closely with Apple, in particular with Adobe Photoshop. In fact, it's up to two times as fast as the previous performance that we've experienced on the Macintosh. Apple's made Photoshop that much more productive. The G5 is faster than any Unix workstation. It runs all of your desktop software, all of your productivity applications. It runs Mathematica version 5 incredibly well. The real question is, why would you buy anything else? The new G5 is the most advanced personal computer in the world.

In partnership with IBM, we're committed to seeing that it remains the most advanced for years to come. We have refined and refined the design of the new Power Mac G5 to make it essential, to make it efficient, to make it honest. The G5 is the best computer Apple has ever built. From the processors to the buses to the memory, this is one kick-ass machine. So, I would like to take a moment to thank all of the folks at Apple that have been working so hard on this stuff for so long.

Avi and his software team on Panther. It's going to be a stunning release. Steve Neroff and his team on Xcode. John Rubenstein and his team on the iSight camera. And, of course, the remarkable new Power Mac G5. You guys have done a kick-ass job. And as we finish up these products and get them into your hands, we've got awesome support at Apple from our finance teams, our operations teams. Everybody at the company is behind these products. And we are just thrilled. Now, our strategy, as you know... to innovate. And that's why we're here. Well, let's just go back less than six months ago, the beginning of the year. The 12-inch PowerBook, the smallest footprint, lightest, full-featured notebook in the world. The 17-inch PowerBook, the world's first 17-inch notebook computer, still the only 17-inch notebook computer, one inch thin. Safari kicked off the beta early this year, just went 1.0 today. iLife, bringing together all of our amazing new digital hub applications into one product. Keynote, thank you very much. Final Cut Pro 4, shipped a few weeks ago, the most popular pro video editing software in the world and Final Cut Pro 4 is off the charts. The iPod, the third generation, our competitors haven't even caught up with our first yet. iTunes 4, the fourth

release of the best digital jukebox software in the world, including the iTunes Music Store, the first way to buy music online that's legal and really works. Panther, Mac OS 10.3, going to be a landmark release. The iSight camera, the eyes and ears of iChat, Xcode, and the Power Mac G5. And it's only the first six months. Wow. So today we have rolled out our next generation hardware architecture and our next generation software architecture to you first. And over the course of the next few days we have a hundred and seventy-five sessions on these things for you to learn everything there is to know so that you can take our innovations and you can be the most innovative developers on the planet too. So thank you very, very much. Go out and see this stuff. Get your hands on it. We think you're going to love it as much as we do. Thank you very much.

Isn't it great to be in San Francisco? So we have so much great stuff for you today that we may even have to take a stretch break in the middle here. Today we are declaring Safari 1.0. Next up we have a new feature called Expose. In Panther we are taking iChat to iChat AV.

The A stands for audio, the V stands for video. This is video conferencing for the rest of us. And we've waited a long time to show you this, and I'd like to show you. Well thank you very much, Al. I really appreciate this. See you soon. All right. Take care. There is one more thing we wanted to talk about today. Now some of you may have noticed on the net this. We are delivering today the world's fastest personal computer. There it is. This is an all-aluminum enclosure. This is an all-aluminum enclosure that is super high-tech and can handle the power, both processing power and thermal power, generated by such an architecture and its follow-ons to come. I've left the door open off the side so you can see this thing. It is a thing of beauty.

The aim is to feel real good.