Steve Jobs on the iPhone SDK and App Store

["What I'm Looking For"] ["What I'm Looking For"] Welcome. Thanks for joining us this morning for this special event. We're really excited to share some great news with you about the iPhone software roadmap.

We've been working really hard on this, and we've got some really cool stuff to announce, so let's get on with it. Before we get into the details, I just want to share a few statistics about how far we've come with the iPhone in just the first eight months since we started shipping it. If you look at the U.S. smartphone market, in just eight months, the iPhone has garnered a 28% market share, second only to RIM, and dramatically ahead of third, fourth, and all the others. So we're pretty excited about this. This is fourth calendar quarter data here. So that's the first thing. The second thing, though, is, as you know, the iPhone is really bringing the Internet to a mobile device for the first time.

You really do have the Internet in your pocket, and that's being borne out by the usage statistics for U.S. mobile browser usage. Look at this. iPhone, 71% of the U.S. mobile browser usage, because for the first time, you really do have the Internet in your pocket. So these are very exciting statistics. And so let's get on with what we have to talk about today in terms of the iPhone software roadmap. Now, I've asked two of my colleagues to do the heavy lifting today, Phil Schiller, our senior vice president of worldwide product marketing, and Scott Forstall, our vice president of iPhone software. And the first thing we're going to talk about is iPhone in the enterprise.

And for that, I'm going to hand it over to Phil. Thanks, Steve. Yeah. applause Good morning, everyone. I am really excited to be the one to talk to you about iPhone in the enterprise. From the beginning of launching iPhone, which is not so long ago, we've had some great customers right at the forefront wanting to work with us to adopt the iPhone into their enterprise environments. For example, Genentech. As you know, Genentech is the world's leading biotech company. We have a great relationship with Genentech. Their CEO, Art Levinson, is a great board member for Apple. So we do a lot of wonderful things together. And right now at Genentech, they have thousands of iPhones deployed across multiple organizations from sales to R&D.

And to get a sense for what does the iPhone mean inside Genentech, the quote here from Todd Pierce, VP of Corporate Information Technology, the iPhone is a watershed event in mobile computing for corporations. Wow. That's incredible. I mean, they are an amazing company with thousands of iPhones. And it's not just businesses. We also have great enterprises in the incredible universities we work with. We have a great number of large customers that have huge networks. In fact, one of the leading universities in the world is right in our backyard, Stanford University. I'm working with them as well. Right now at Stanford, they have hundreds of iPhones deployed across faculty and staff. In the words of their CIO, Bill Klepsch, The iPhone has worked effortlessly at Stanford, and the user acceptance just astounded us.

We've been inundated with orders. That's incredible. That's absolutely incredible. I think you can guess why that might be. And the iPhone is an amazing device with a breakthrough user interface. With just your finger, you can surf the web, check your email, manage your contacts, contact friends. It's an incredible device for enterprises. But there are a lot of things that enterprise customers, these and others, have told us are the things holding it back from really being huge in the enterprise. So we've been hard at work listening to them, compiling lists, trying to understand what do they really want to take the iPhone way out into giant numbers across enterprises. And what is that? Well, first and foremost, great email integration. Enterprise customers want the iPhone to integrate and get push email directly from their email servers.

Huge request. Just as big, they want great calendar integration. They want to be able to get their calendar items pushed to them wherever they are, over the air, all day long. They also want to get access to their contacts and have it pushed back and forth with their servers. Then we get to their corporate contact list through global address lists. They want to build in additional VPN types, and most often requested is Cisco IPsec VPN built right into the iPhone. They want two-factor authentication with certificates and identities. They want enterprise class Wi-Fi with WPA2 Enterprise and 802.1X. They want to be able to have tools to help them enforce security policies, like mandating the use of PINs on the iPhone.

They want tools to help them configure thousands of devices as they deploy iPhones across their enterprise, to set up all those mail and calendar services, to set up those VPN and security policies, all simply automated. And, in the unlikely event it's lost or stolen, they want the ability to protect that data and be able to remotely wipe it. That's a long list of important features that enterprise customers have told us that if we just did these things, would really help the adoption be huge in the enterprise. Well, I'm really excited to be the one to tell you today that we're doing all of these things in the next release of the iPhone software. Applause Now, they don't just say, hey, I'd like push email and push calendaring.

They're much more specific than that. What our customers have asked us, in large part, to do, is to build in Microsoft's Exchange support right into the iPhone. So, I'm also excited to be the one to tell you today that we are working with Microsoft and we have licensed the ActiveSync protocol to build directly into the iPhone, so the iPhone can work directly with corporate Exchange servers. And that is a huge request for our customers to be able to deploy iPhones in very large numbers across all these enterprises. So, how does that work? Well, to help explain it, I find it useful to understand the old way before we look at the new way. So, there is an older way to do things that some have made to work, using older generation smartphone devices, if you ever see any of these around.

They do get push email and contacts and calendaring. And you think they come from the servers in the environment, but they don't actually work that way. They first come, for example, to your device from a network operations center that is outside your firewall. It's even outside the country for most people. And that has to get its information from something that's inside your firewall that you have to set up that's a proprietary messaging server. And that's where it comes from. And, of course, that gets its data from your Exchange server. So, you actually see that what's been built up is a complex scenario that actually takes some money to support and maintain and build and license. And, of course, it adds risk to reliability, as we've seen from time to time.

Well, that's the old way. Microsoft has really come up with an architecture that's much more advanced and the kind of things enterprises want to build in. They've built in a way with ActiveSync, the ActiveSync protocol, where the iPhone can now work directly with the Exchange server to get you all the important corporate information in a more reliable and more affordable way. So, how is that going to work? We're building an Exchange support right into the iPhone so you get push email, you get push calendaring, you get push contacts, you get access to global address lists, and the ability to remote wipe it if, in the event, you ever need to do that. And one of the best things about this is we're building this in to the applications customers know and love in the iPhone.

We have great software applications for email. The same email application on the iPhone will now get your information directly from the Exchange server, pushed over the air. The same calendar the customers really love on the iPhone gets its information directly from the Exchange server. The same contact management built into the phone application on the iPhone that is so great gets its information directly from the Exchange server. And we're building that all into every iPhone. So this is a great, great way to solve all those requests for the best solution for Exchange support in a phone. And that's what it means to have Microsoft Exchange built into the iPhone. What I'd like to do is be the first to show it to you. So over here I have an iPhone.

And I'm going to wake it up. And as you see, it's cabled so that you can see up on this screen. the very same thing I'm seeing on my iPhone. Let's turn it on. Now, you might imagine that I'm an employee in a large enterprise and I've been given an iPhone to use as my key business tool, and let's go in and see what's been set up for me. Well, go to contacts, and this hasn't been set up yet. There's no contacts in here for me. Let's go into my calendar, and here's today. No events. I kind of like that. I get my day free. Go into email. Not only do I not have email, my account is not even set up yet and activated on this phone. Now, you know the iPhone has amazing email support for a lot of different services, but as you look at the screen, you'll see we've added one right there at the top, Microsoft Exchange.

So there's tools for an enterprise to automatically configure phones, and there's also easy ways for an individual to just tap and follow a few steps and set up their phone for Exchange support. I'm going to skip that step for this demo to get through it quickly for you, but let me go into settings. I've set up an account on this phone. I just haven't turned it on yet. Let's go into my mail settings, and here you see under my accounts, there it is. I've built in an Exchange account for me to talk to our Exchange server. I'm going to tap on that and turn to its settings, and this is really great because in a glance you see what it's able to do. So, yes, I want to use ActiveSync for my contacts. I'm going to turn it on, and now I'm going to get push contact support. And, yes, I want to get my calendars from the server as well, so I turn that on and the same will happen.

And, yes, I want to turn on mail, so I get mail pushed over the air to my phone. And that's it. I've set up my iPhone account, and now I'm going to go home to the home screen, and let's first go into my phone application, and there are all my contacts now. These have been read and pushed directly from the Exchange server to this phone over the air, and they're all in here now. And, for example, I can just go into Bob's, and there's his information. It's been all brought completely down from the Exchange server onto my phone. Let me go into my calendar, and you'll see I have things to do today now. There's my calendar all being read, pushed over from Exchange.

And, last, we'll go into mail, and, sure enough, here's all my mail all brought in. Again, it's the same applications customers know and love on the iPhone, the beautiful, rich email experience and attachments, but now it's coming from Exchange to the iPhone. So now you see it's hooked up, it's working, it's set everything up and got it from the server. The next thing I want to do is show you a little bit what it's like to actually use this in a push environment, how powerful that is. To do that, I've asked Bob Borchers, who's on the iPhone product marketing team, to help me out. Bob's here in the audience. He's got a notebook. He's wirelessly connected over Wi-Fi, also to the Exchange server with his account, and together we're going to be able to do a couple quick things to get you a feel for it. So let's go back into the phone application. So imagine I'm out on a business trip and I meet a new contact.

So I'm going to hit the plus sign to create a new contact card here. Let me just type in a name. Ellen Banks. For those of you who have never used typing on an iPhone and wondered how it is, it's awesome. Let me save that. So now I've just created a new contact, Ellen Banks. And back on the Exchange server, working with this computer, Bob, do you see it? I got it. So take a word for it. It worked. Right. But in case you don't believe me, let's do the reverse. So I'm busy and Bob has gotten a phone number for that contact. Bob, if you can add a phone number to that Exchange record and let me know when you've sent it. And there it is. So Bob has updated Exchange, and here I get it.

All right. Next, let's go into mail. So I'm in mail right now, and we're all used to what it's like to pull and get stuff from the server on a periodic basis like the computer does, but now we have push email directly from the Exchange server. So Bob, if you can send me an email right now in front of this audience. And there it comes right to me immediately. So Bob has sent me an email. It pushed to my phone right from Exchange server. This is exactly what the Enterprise customers have asked for. What they're waiting for is direct push email from Exchange servers. And last, let's go into calendars. Let's go to today. You see today's pretty good. I've got a lot of time free right now. I can probably just hang out. But imagine, while I'm thinking I've got time to kill, actually a meeting gets moved, and it's going to move up in the calendar. So Bob, if you can move a meeting up for me.

And the Exchange server now knows that, and it's going to push it to me as a member of that meeting. I can even tap on that meeting and go into it, see the attendees in that meeting. I can even select an attendee and go and see their names and go in and call one of them if I want to know anything about the meeting. So all that's happening live, pushed right now from Exchange in Exchange server. The last, and I think the most fun part of this demo. So I'm out and about on my business trip, and I call back to the ID department. Hey, Bob, I think I left my phone when I was out at dinner last night. I don't know where it is. I'm probably not going to get it back. Can you do me a favor and kill it? Because I have a lot of important information on that. So, Bob, if you can please use Exchange server to remotely wipe this phone. And Bob's done that. I get no user interaction. I can't stop it.

And the phone's been wiped and protected. So. Thank you. So we have a lot of great new features, but you've just seen Exchange live working on an iPhone for the first time. And I think Enterprise customers are going to be pretty excited. We've been working hard on this. Our teams have worked hard, and we've tested here. But as you know, Enterprise is a very complex environment, all different environments around the world. And so we've started to go out now and bring these new features into some Enterprise network environments to test on site and see how it does. One company we've worked with, Nike, we have a great relationship with Nike and have done many great projects with them. And they were kind enough to let us come on their site and start to test the iPhone in their Enterprise environment with Exchange.

And here's what they have to say about that test. Roland Panacker, their CIO, has said, With support for Exchange, ActiveSync, and this new iPhone release, Apple's offering a plug-and-play Enterprise solution. So they're seeing it working now, starting to work with our test on their site. It's real, and it's exciting. And one other company we've taken on site and been working with them to see how it works in their environment is Disney. As you might know, we have an executive relationship with Disney, and we do a lot of great things together. They're a wonderful customer. And here's what they have to say about the iPhone and its features. Randy Brooks, SVP of IT at Disney, Apple's really done their homework addressing issues of security, manageability, and integration. We currently have hundreds of iPhone users and expect the demand to grow significantly with this release.

And that's awesome. That's awesome. We love working with these customers, and we're both excited about what we have to offer. Because this is the feature set I showed you earlier. These are the features customers have asked for in Enterprises to make the iPhone a big hit across companies and universities across this country and around the world. And I think when we release all of these features, people are going to be blown away that the iPhone is the best mobile device ever in the Enterprise. It's a killer device already for all of us with these breakthrough software features, and now it's addressing the needs of the Enterprise as well with this next release. So that's our news today on the Enterprise. Next up, I'd like to invite up Scott Forstall. He's going to talk to you about the iPhone SDK.

Scott. APPLAUSE Okay, so I'm here to tell you about how developers can build great applications for the iPhone. Now, before I get into the native iPhone SDK, I want to give an update on web apps. Last June, when we launched the iPhone, we also launched web applications as a way for developers to build applications using web technologies for the iPhone. This has been incredibly successful. There are already well over 1,000 web applications available for the iPhone. Now, over this last eight months, we've continued to make these web applications even better.

In fact, just a couple of months ago, we added the ability to take icons and place them directly on the home screen of an iPhone. So you can just tap on an icon and launch right into the web application. Now, as I said, there's a lot of really great web applications. I'm going to highlight just a couple today, starting with Facebook. Facebook has built a really great web application. It's dynamic. It's interactive. It really takes advantage of our large touchscreen. And this is absolutely the best way to take Facebook with you wherever you go. Next is Bank of America. Bank of America is the largest bank in the United States.

They're also the industry leader in mobile banking. And Bank of America built this really nice web application to allow iPhone users to bank directly from the iPhone. Now, already, the iPhone is the most popular device used by Bank of America mobile banking customers. In fact, the iPhone accounts for more than 25% of all mobile banking done with Bank of America. It's unbelievable. So... applications. We've really been investing web applications, and they've been incredibly successful. In this next release, we're going to add even more features to make the experience even better. But today, what I really want to tell you about is the native iPhone SDK. Starting today, we are opening up the same native APIs and tools that we use internally to build all our iPhone applications. This means that third-party developers can build native iPhone applications using the same SDK that we do. Now, there are a lot of pieces that make up an SDK, but the most important piece is the set of APIs. It's the platform. That suits us well, because Apple is a platform company. We have the most advanced platform in the world in the form of Mac OS X. And Mac OS X is comprised of four architectural layers. We start with the core OS, and we have

core services, a media layer, and Coco. Coco is our user interface application framework. To build the iPhone OS, we started by taking the bottom three layers of Mac OS X and move them straight across to form the basis of the iPhone OS. Now, Coco is interesting. Coco is the best application framework out there, but it's based on mouse and keyboard input. So we took everything we knew about creating a great object-oriented user interface application framework with Coco, and everything we knew about creating a touch API for the iPhone, and we combined them, and we built Coco Touch. And this is our user interface application framework for the iPhone. In fact, this here is the architecture of the iPhone OS. Now, let me dig a little deeper into each of these architectural layers just to give you a flavor for how rich this platform is. We'll start with the core OS. Now, there are a lot of pieces that make up the core OS. I'm just going to highlight a few. We'll start with a kernel. This is the same OS X kernel built out of the same project with the same source files that we use on Mac OS X. It's the same one. We've optimized it in certain ways, so it performs great in low memory situations and for the iPhone, but it is the same kernel. The networking layer we use in the iPhone OS is the

same BSD networking layer we use on Mac OS X. In power management, Apple has more than a decade of experience with advanced power management techniques. We use these techniques to manage our portables, which are more than 50% of the Mac line. We started with these advanced power management techniques and went even beyond that for the iPhone. For the iPhone, we have automatic power management. That means the core OS power manages all of the chips, all of the sensors, the entire operating system, and your application also automatically. So that's just a few, a taste of the core OS. Now let's look at core services. Again, there are a lot of different pieces that make up core services, so I'm just going to highlight a few. We'll start with the address book. We have a complete set of APIs for your application to talk directly to the contacts database on the iPhone. We also have included an entire database API with SQLite. Core location.

You've probably seen on an iPhone where you can tap a button on the Maps application and it'll use cell tower information and Wi-Fi hotspots to triangulate and find exactly where you are. We've taken all of that and packaged it into an API so you can use it to create location-aware applications. So that is core services. Media. The media layer is everything you'd expect from Apple. After all, the iPhone is a great iPod, right? It has all the audio and video capabilities you'd expect, starting with core audio. Core audio is our low level API that we use on Mac OS X, on top of which we built everything from our consumer applications all the way up to our professional audio applications. And that also forms our low-level API for audio on iPhone. On top of core audio, we've built OpenAL. OpenAL is an industry-standard audio API that is used to efficiently render multi-channel, three-dimensional positional audio, right?

This is great for game developers. It allows them to take and render sounds and special effects in three dimensions around a player in a game. OpenAL, built right in. Video playback. We have a really seamless video playback system here. It uses our H.264 codec. It's high-quality, built right in. Core animation. Core animation is a powerful set of APIs that allows a developer to easily create layered animations. Now, we introduced this publicly first for Leopard, but we built it in many ways for the iPhone. And in fact, almost every animation you see on the iPhone is built on top of core animation. And last, but certainly not least, is OpenGL ES. This is the embedded version of OpenGL, and it is an absolute screamer for 3D graphics on the iPhone. And in fact, this entire layer is heavily hardware-accelerated. We do that for great performance and long battery life.

So that's the media layer. Cocoa Touch. As I said, Cocoa Touch is built all around the concept of touch as an input. So we start with an advanced multi-touch event system. This handles everything from a single finger touch, to multi-finger, to gestures. On top of this event system, we built our multi-touch controls. So our controls know all about the multi-touch nature of the iPhone. The accelerometer. You probably know we have an accelerometer built in. We use it for things like in Safari when we go from portrait to landscape mode. But what you might not know is it's a full three-axis sensor, and you can use it in your applications as well. WebView. We took the engine of Safari and turned it into a control which you can embed in your application. And if you want to get images in your application, you can use the image picker to choose directly from the library of all the photos on an iPhone, or you can use the camera to take a new photo. So that is Cocoa Touch. In fact, this is the architecture of the iPhone OS.

It is the most advanced platform out there for mobile devices. In fact, we think we're years ahead of any other platform for a mobile device. It is fantastic. We borrowed heavily from Mac OS X, so we started on the shoulders of a giant, and we made it even better. So not only do we have a great set of frameworks and APIs, but we have a comprehensive set of tools to help developers quickly build, debug, and optimize their applications. Let's start with Xcode. Xcode is our development environment. This is the tool we use to build all of our applications and operating system for Mac OS X. We started there, and then we enhanced it to support the iPhone. And now, we use Xcode to build all of our applications and operating system for the iPhone. So what is Xcode? Well, it starts as a great source editor. This is where you write all of your code. The great thing is Xcode knows all about the iPhone SDK. It knows all about all of our APIs. So as you're writing your application, it'll code complete to the APIs in the SDK. Project management. It deals with your project for you. It manages your source files, your header files, your resources, your images, your build settings, everything. It also integrates in with your source control management system. So be it Subversion, or Perforce, or CVS, it integrates directly in with your source code control

management system. And you can check files in and out, you can merge files, you can create new branches, do everything you want right from within Xcode. It integrates with the documentation. We're shipping a lot of great documentation as part of the SDK, and you can access it directly from within Xcode. And it has a really nice debugger. It does all the things you'd expect. a debugger. You can set breakpoints and step through functions and examine variables. But it goes beyond that. It's a great remote debugger. So you can take and plug your iPhone in with a standard 30-pin iPhone and iPod connector to your Mac, run your application live on your iPhone, and be debugging it right from your Mac. So this is incredibly powerful.

So that's Xcode. It is a great tool. It is our development environment. It is where you will build and debug your applications. The next tool I'd like to talk about is Interface Builder. Interface Builder is the tool you use to build your user interface for your iPhone application. And in fact, Interface Builder makes building your user interface as simple as drag and drop. We have a complete library of all of the UI controls from Cocoa Touch built right into Interface Builder. And all you do is pick the ones you want and drag them across onto your canvas, and now you have visually built your interface. Interface Builder goes beyond that. Cocoa Touch supports the model view controller paradigm of development.

And right from within Interface Builder, you can visually tie and connect your view layer to your control layer. You can connect your user interface right to your code from within Interface Builder. Interface Builder is also a great localization tool. After you've created your user interface, you can localize it to all of the languages that you want to support. So that's Interface Builder. It's a fantastic tool for building your user interface, for actually connecting your user interface up to your code, and for localizing as well. Next, Instruments. Instruments is our comprehensive suite of performance analysis tools. Just like the remote debugger, it runs live connected to your iPhone. So in this case, you can run your application on your iPhone, have it connected up to your Mac, and you're recording any number of aspects about the performance of your application. You can look at, say, the graphics performance or the CPU performance or your file system usage or your memory usage. See if you have leaks. All of these things. There's a whole host of different performance tools built right in. It records these live while you're running the application. In fact, it can record more than one aspect at once. So you can actually visually compare the interaction between different aspects of your program. You can then take, find your peaks and valleys, find where your hotspots are, dig right down into it, get right to the code that was running, optimize

that code, run it again, run Instruments, to see if, in fact, you've optimized it as you expected. So Instruments is a great tool to do real-time analysis, performance analysis of your application. Now, these three tools, Xcode, Interface Builder, and Instruments, we've had running on Mac OS X, and we took and we enhanced each to support the iPhone. Now, today, I'm happy to announce a brand new development tool specifically for the iPhone, and that is the iPhone Simulator. The iPhone Simulator runs on a Mac, and it simulates the entire API stack of the iPhone OS. So right here on your Mac, you can run your application in the simulator, which gives you an incredible turnaround time on development.

It's fantastic. We've thrown a few applications directly in from the iPhone into the simulator just so you can see how they work. But the simulator works great side-by-side on your Mac with Xcode. So you can click one button in Xcode, build your application, it loads up in the simulator, you can debug it while it's running in the simulator right from within Xcode. So we have a fantastic set of tools in addition to this amazing set of frameworks that make up the iPhone OS. Let me go ahead and demo this to you now. So I'm sitting here at my Mac, and I'll first launch the iPhone Simulator. Here it is. As I said, we threw a few applications directly in from the iPhone. So I can launch, say, the Photos application.

This is the same Photos application. So you see, as I'm clicking here and swiping, it's actually sending it multi-touch swipe events. So it's getting exactly the same event as it would from the iPhone. And go back home here and launch the Contacts application. Again, exact same Contacts application. I can swipe around. I can hit Edit. I can add a new phone number. Let's go ahead and say 555-1212. So here I've added a new phone number, and it saves it. And here, it actually saves this into the Contacts database in the simulator. So if you're using the address book APIs in your application, you can access that changed record. And we have a full Safari built-in. This is the same Safari from the iPhone.

So if you double-click, it sends the double-tap event, the standard multi-touch event. You can tap on links, go to links. You can even click up here and bring up the text fields. You could do searches. It's the full Safari built-in. So that's the simulator. Let me show you now what it's like to build a new application using all of these tools. So I'm going to build the simplest application in the world, which is Hello World. So here is Xcode. I'll build a new project. I'm just going to choose the Cocoa Touch application. This is a completely empty application, and I will call it Hello World. All right. And now, actually, before I even write a single line of code, let me just click Build and Go. It's taking, it's building up this application. It's packaging it together, loading it up in the simulator, running it, and connecting the debugger. Now, obviously, it's not a very interesting application since I haven't written anything. It's just drawing nothing, so it's black. But you can see Hello World has been added to the simulator. So let's make it a little more interesting and make it actually write Hello World. I have that code in the oven here. So I will copy it out of there, paste it into this file. And again, single click to build and go. It builds up with that change, links it together, loads it up in the simulator, and now you see Hello World in the simulator. It's that simple to make this turnaround time using the simulator to build your applications. Now, it turns

out it's just as easy to build and run it live on an iPhone. So let me show you that. I have an iPhone right here, which is plugged in with the standard 30-pin connector into this Mac. It also has a video cable out, so you can see it on the screen. And so what I do is I'll go back to this project. I'll make a single change saying build for the device, build for the iPhone, and click and go. Now, it's building that same application for the iPhone. It compiles it together, packages up the application, loads it onto the iPhone, runs it, and connects in the debugger. And here it is running live. So you can see it says Hello World. Click the home button, it takes me back. So it's added Hello World right to the bottom here. So that's Hello World. Now, let me show you what it's like to make a change in what the development cycle is like building right with the iPhone. So it has Hello World in white text. Let's say I wanted that to be yellow. I'll go back to my source code here. And right here is where it says white color. So I'll change that to yellow. And I'll say build and go. So here, it's building that application again with that change. It updates the application that was there before, loads it up on the iPhone, runs it, and now you see it's yellow. So that's how simple it is. The single button, once you've made any change, single button click loads it up on the iPhone, and we're actually connected in the debugger. So this is an application that we wrote, or I wrote in about, you know, two minutes here, right? We wanted to challenge ourselves and say, what can we write if we spent two days writing an application? So we went ahead and did that. And we call it

TouchFX. We wanted to use some more of the native APIs, some of the touch event APIs. And so again, I'll single click, build that, and it loads up this application. This application is sort of, you know, having fun with photos in the touch system. So here, I can either choose a photo or take a photo. I'll go ahead and choose a photo. This now will slide up the standard image picker panel. So this is all built-in APIs. I can choose an album. I can choose a photo. Okay, so we have a photo. Now, I'm going to take a single finger here and touch it down on the screen. And you can see, now, we're applying an OpenGL mesh distortion right on to this image. And you can see it's tracking my finger using... So I'll put it right about there.

This guy's not in the audience, is he? So that was with one finger, right? But of course, this is a multi-touch device. So now I'll take two fingers, and I'll just sort of pinch. And let's see what happens there. It just sort of sucks in between where I was pinching. So then we wanted to have some fun. We wanted to see, like, how could we undo the change? And of course, we have an accelerometer built in here. So to undo it, all I do is shake the phone. And it undoes it. So again, you can grab anywhere, do this multi-touch event, get different effects. His mother would be very proud. And shake to undo.

So there's an application we wrote in two days, and it's under 2,000 lines of code to write that entire application. So next we decided, well, what can we do in two weeks? And so we went and wrote a game. It took us about two weeks. It's under 10,000 lines of code for this entire application. So again, a single click in here builds the application, loads it up, and runs it right here on my iPhone. It's actually connected in the debugger as well. So I'm just going to tap to start. As you can see, this is an OpenGL game for graphics. It's an OpenAL for audio. The question is, how do I fire at these ships? Because we're not using a big chunk of the user interface here for buttons.

We have a great touch screen, so I can just tap anywhere to fire. But the next question is, well, I don't have a joystick on here or any four-button toggle control. How do I steer? Well, we've got a full three-axis accelerometer built in here, so all I need to do is move the phone around. And now I'm steering it. Now we're talking. So it's fantastic. This is two weeks of work, less than 10,000 slides of code. Now one thing that developers, and I should point this out, is that since we're using OpenAL, as I move it back and forth, you can hear the audio move around.

So OpenAL gives you full positional audio, 3D positional audio. Now another thing that developers really love to do while they're building an application, especially games, is optimize. So I'll keep this running and go back to my Mac here, and I'll bring up Instruments. So as I said, Instruments is our performance tool. Now I'm going to measure the graphics performance. So I'll choose right here on the OpenGL ES template. I will choose the live running application, which is TouchFighter, and just click Record. Now it is live recording the application as we're playing it. So it's live recording the frame rate. It's actually sampling the whole time all the calls that are being made. So as I move it around, you can see we're getting around 30 frames per second.

Go ahead and fire. So live, while you're running your application, while you're playing your game, you can be measuring all of the performance. So let me go back to my Mac here, and I'll stop that recording. Now not only did it just record it, but also it saved all of this. So if I want to go and look for where my peaks and valleys are, I can see, well, here we're at 19 frames per second. Clearly we can optimize this and make it better. Well, I can bring up the stack trace right there on the right-hand side. You see, that's the stack trace of exactly what was happening at that point in the game play. I can use that to dive down, optimize the code, and make it even faster.

So this is what we could do in two weeks and less than 10,000 lines of code to create this application. But I don't want you to just take my word for how good this platform is. So a few weeks ago, we called up a handful of companies, and we asked them if they would send out a couple engineers each to see what they could accomplish in two weeks on an SDK that they'd never seen before. And most of them had never touched a Mac for development before. And they did, and what they accomplished blew me away. I mean, it's just fantastic. And so instead of having me talk you through it, I've asked the engineers who came out and wrote these applications to tell you in their own words what they accomplished.

We'll start with Electronic Arts. Every gamer knows all about Electronic Arts. For their great applications they've written for computers and for consoles, Electronic Arts is also the industry leader in developing and producing games for mobile devices. I'm happy to invite up Travis Boatman to talk you through their experiences with the iPhone SDK. Travis? Hi, everybody. So the first thing I wanted to say is thank you to Apple for inviting us to join in with this SDK process. And given that we only had two weeks, we wanted to do something that took advantage of a lot of the different features of the device, everything from the touch screen to the accelerometer.

We wanted to have video and audio. We want to have a game that described all of that. So the game that we chose is a game that we have in production called Spore. And the idea of Spore is it's about taking a microorganism from the primordial soup at the bottom of the ocean and helping it evolve and grow and survive in this interesting world we have. So you can see the spore here in the center of the screen. And the way that we chose to control the spore was to use the iPhone's accelerometer. You can see John using the accelerometer to tilt it right and left and get some of that motion that you saw earlier in that previous demo. The basic goal of the game is to take the spore and eat anything smaller than you and avoid anything larger than you. If you do a good job of that, you're rewarded by what we call the Evolution Editor. And the Evolution Editor is a great place for us to take advantage of a lot of the touchscreen capabilities of this device.

So we've gone from sort of the accelerometer, and now we're playing with the touch. What's so great about this is it allows you to customize the game in two different ways. First, we're going to customize the gameplay a little bit. So John's going to go in here and using his finger, he's just going to go ahead and touch the offensive track. And he's going to add in a pair of formidable-looking mandibles here on the front of our spore. So you see those up here on the front. The next thing we're going to do is we're going to play with a little bit of creative personalization here. Now this part is more about making the spore look cool and interesting and has less to do with the gameplay. But he's going to go ahead and use his finger and just start moving stuff around. So I think he's going to move the eyes forward here. And he's just touching and moving these forward. So imagine this is all we've done in about two weeks. But if we had a lot of time, you could imagine us stretching this spore out and adding colors and really making this almost like a play area for people to personalize their spores. Let's go ahead and bring that spore back into the game. Now I'll talk a little bit about development.

You notice we're moving from level 15 to level 16. And when we first came and we sat down and started working with the framework, it took us about two days to get Cocoa Touch up and running. Once we had that up and running, we were then able to bring in our entire game development and got the whole game up and running. So we're only really demonstrating a couple of levels here in the editor. But we have actually all 18 levels up and running. We have the full editor. In fact, John and I were sitting here playing and creating all these different kinds of spores and experimenting with what we thought might look interesting to show you all today. It was really a lot of fun. In fact, Accelerando was so comfortable, we were showing it to a bunch of Apple employees so they could get a sense of it. And they really liked playing with it. And lastly, we wanted to experiment with the video capabilities. So we threw in a little cut scene here at the end just to show you what we could do by tossing in a video of our customized spore making his way happily out into the world.

And that's Spore from Electronic Arts. Thanks. Awesome. That was two weeks of work. I mean, I'm sure you've read a lot about Spore. And in two weeks, they got all of that up and running on the iPhone SDK. It's fantastic. Now, as you can see, clearly we have a great platform to build games on top of. It's also great for verticals. Salesforce.com is an innovator. They provide software as a service. And, in fact, are the world leader in on-demand CRM services that are both customizable and extensible.

I'd like to bring up Chuck Dietrich to talk you through their experiences with the SDK. Chuck. Thanks a lot, Scott. Thank you. First, I want to thank Apple for inviting us. And I also want to say how excited we are to take software as a service to the iPhone and bring our over 63,000 platform applications to the iPhone. This SDK is really powerful. The iPhone has a lot of unique capabilities. And our customers are going to love using our applications on the iPhone. To show you this, what we did is we took an SFA application, Salesforce Automation Application. Now, many of our million subscribers use this to manage the contacts, accounts, leads, who they're selling and what they're selling.

With the iPhone, you can imagine them in a taxi cab taking out their device and getting a picture of their business day. They've got their activities for the day. They can swipe into those. They can use the touch screen to navigate the activities. see what are the details. Sales reps would love, in fact, to use the rich graphics to get a graphical view on where they're at against their monthly sales goals. They'd like if we could use the accelerometer to shake them into the green on deals. But we're not going to do that for them. Not going to give them that functionality yet. But what we will give them is with the iPhone SDK, we'll tap into the really rich reporting and analytics platform of our force.com applications to give them really detailed graphic pictures on where they're at against each of their key business metrics.

And you can see we're using the swipe screen to navigate this. And if people know how to use the iPhone, they're going to know how to use our applications on the iPhone. And since the SDK allows us to store the data on the device, connectivity is not an issue. If they're on the plane, no problem. Let's walk you through another example, opportunities. These are the deals that a sales rep is trying to close. Now, you can see it's in the standard table view that iPhone users are used to. They get a high-level overview of each deal. They get a nice graphic view on where each deal's at from a stage perspective. But what's really interesting is the SDK allows us to repurpose the data from Salesforce on the iPhone. So as an example, maybe this sales rep wants to see what opportunities are most likely to close or of the greatest amount and wants to resort that data on the device so he knows exactly where he should focus his limited days on.

With that, there you go. We've got the opportunities sorted by amount on the top. And the rep knows exactly where to focus. Now also, since the SDK can speak to the force.com API, we can use our advanced workflow triggers or Apex code to actually send more data down to the device when you're in wireless connectivity. In this example, three new leads just came in on the corporate website. He can get them on the iPhone. He can open those leads and start responding to them immediately. In this case, Bertha Boxer's a lead. And we can use the SDK to tap into the native functionality of the iPhone, like sending a phone call or an email. Or even more compelling, maybe we want to map where Bertha is relative to where I'm at.

Maybe I can stop by and visit her. So we can do this using the mapping functionality. It's very cool stuff. What's really amazing is we only had one developer, Jason over here, up here for less than two weeks. And he built all this. Now we have over 70,000 developers developing on our force.com platform. They are going to love building the next generation of mobile applications on the iPhone. Thank you very much. So again, one person in less than two weeks. It's absolutely amazing.

The next one, AOL. AOL runs AIM, which is the most popular instant messaging service in the United States. We, in fact, integrate with AIM on the Mac OS X desktop with iChat. I'd like to bring up Rizwan Sattar to talk you through their experience with the SDK. Rizwan. Hey, everyone. We are so excited to show you what we've been able to create in just two weeks of the iPhone SDK. And we're so happy to show you AIM for iPhone. When you start up this application, you're connected immediately to the AIM network. And the first thing you see is a list of all of your online buddies, and you can see their status messages and their buddy icons.

And what's really remarkable about this is I never developed on the Mac before. Never written a single line of Objective-C. And we came here with absolutely no code for the device, just a spec sheet of how to talk to AIM. And we had a live buddy list up and running in about five days. And speaking of live, it looks like Mark's taking the day off. So let's start a conversation with him. So this is actually a live conversation happening over the AIM network. And we definitely had an exciting moment. The first time we were able to run AIM on the device and send a message to one of our buddies and get a response back. It was definitely one of those, like, come here, Watson moments. Now, if you happen to use AIM a lot, you tend to have a lot of conversations going on at the same time.

So we've developed AIM to make it very easy to switch between your active chats just by swiping. And in addition to getting the buddy list and chat functionality working, we actually had time to go and build a me panel where we can update our status and let our friends know what's going on in our lives. And normally, you do this. I love Spore. And normally, you go in here and you set your text-based status message. Well, we thought, wouldn't it be great if we could interact with the phone? And literally a dozen lines of code later, I can now tap on my buddy icon, bring up the image picker, choose a photo.

And when I do, it gets uploaded to the AIM network. And now everyone who has me on their buddy list will see a new photo to represent me. We are so excited that we were able to do all this in just two weeks with the SDK. And we're really looking forward to working with Apple to bring AIM to the iPhone. Thank you. Again, it's amazing the progress we've made. And a lot of this is because we have great networking APIs built in as part of the SDK. Next, Hippocrates. Now, every doctor knows all about Hippocrates. Hippocrates creates products that are used by more than half a million health care professionals, including one in four physicians in the United States.

I'd like to bring up Glenn Keithley to talk us through their experience with iPhone. So Hippocrates is a leading provider of handheld clinical reference applications for use by physicians at the point of care. And I've been a mobile developer for the last eight years, developing applications for them. And I can tell you that developing software for the iPhone is like developing for no other mobile platform. The sensation is of developing for a much more powerful, stronger, almost desktop-like environment. And the main reason for this differentiation is the availability of the Cocoa Touch frameworks. So we were able to prototype our drug list view screen, seen here, in a matter of days. And then it was quite simple to hook it up to our existing C++ data access classes. And that allowed us to populate this list with 3,300 of the most commonly prescribed US drugs.

Now, tapping on a drug takes you through to the drug monograph. A monograph's just an industry term, meaning a white paper detailing the use of a drug. A monograph's just an industry term, meaning a white paper detailing information about a drug. And this is where we were really excited, because we were able to take advantage of some of the unique features of the iPhone, like the SQLite database to store our drug formulation information, and the enhanced screen resolution to show pill images on the device for the first time on any mobile platform. In addition to this, just adding other separate, simpler content sections, such as our adverse reactions, we're able to take advantage of the standard controls, the table view. And adding this screen literally took me an hour. So in addition to this in our clinical content, we're also able to use the core animation-backed frameworks to reinvent and re-innovate some of our existing functionality.

For example, Hippocrates' MultiCheck. Now, MultiCheck supports the case where a patient may be on multiple medications, and a physician wants to see, are taking those medications together going to result in any harmful adverse effects? So if we assume the patient's taking the medications selected here, we can tap on Add, and immediately it flies in the drug list. The physician can then enter the drug name they want to add, tap on it, and the drug list goes away. And all the animation is handled for us by the SDK. We didn't have to write a single extra line of code to do that, but it does look cool. So tapping on Check, you can then go through to the interaction results view, and you see a list of the interactions associated with these medications grouped by the severity of the interaction.

If you'd like more detail, you can tap on an interaction pairing, and that brings you through to the interaction detail view. Finally, we were able to take advantage of the richness of the iPhone UI to prototype some brand new functionality in the form of our drug identifier functionality. Now, this supports the case where a patient may come into a doctor's office and say, hey, I'm taking this orange three-sided pill I found, but I'm not sure what it is. And the doctor can enter those criteria into the Hippocrates Rx application, tap on Identify Drug, and they'll be brought to a list of matching medications. The physician can then tap on one of those matches, and again, they're taken through to the monograph view.

And this is how Hippocrates is leveraging the advanced features of the iPhone to serve its core mission of supporting physicians' clinical decisions and enhancing the quality and safety of patient care in the US. Thanks, Scott. All right, so, Hippocrates. Last, and certainly not least, is Sega. From Zaxxon to Sonic the Hedgehog, Sega has been a household gaming name for more than 25 years. I'd like to bring up Ethan Einhorn to take you through what they accomplished. Ethan? Thanks, Scott. So, when Sega and Apple started talking about what games would be great to bring to the iPhone platform, Super Monkey Ball was a natural choice. When they told us that we'd only have two weeks to create a full 3D demo of the game, I thought that was impossible. But here it is, thankfully up and running, and it looks awesome. And we were able to do this because we were working with a terrific, flexible, and powerful SDK.

So the object of Super Monkey Ball is to guide Ai-Ai the monkey through a series of mazes, collecting bananas along the way for extra lives. It's a really simple concept to pick up on, and the controls are easy to pick up on, too. All Gorton has to do to move Ai-Ai around is tilt the device. It's such a comfortable, smooth way to play the game that even if you've never played a video game before, you'll know exactly what to do when you pick up an iPhone. Now, for me, I'm a hardcore gamer, so it was really tough for me to wrap my brain around the idea of not playing with analog sticks. But after two weeks with the iPhone, it's going to be very hard for me to go back and play this on a traditional game controller. This feels like it's always the way Super Monkey Ball was meant to be played. So now I'm a console producer, and this team, they're a group of console developers. So for us, by far the most exciting thing was that we've been able to create on iPhone the type of game we're used to making. This is not a cell phone game. This is a full console game. And if anything, we underestimated what the machine was able to do graphically from the start.

We had to actually fly in an extra artist to start scaling up the quality of the visuals to match what the output was capable of giving us. And that's the best kind of problem that you have to solve on the development side. Thanks, Scott. So really, I mean, we've been working so hard to get this SDK full-featured. It has an advanced set of capabilities. And we wanted proof from third parties, and they came in and blew us away and blew themselves away. I mean, two weeks with two or one developer in one case is amazing what you can create on this. Everything from games, and we think it's a fantastic platform for creating games, to verticals, to just wide commercial applications.

Now the next question is, once you have all of these amazing applications, how do you get them on your phone? And to answer that, I'd like to turn it back over to Steve. So you're a developer, and you've just spent two weeks or maybe a little bit longer writing this amazing app. And what is your dream? Your dream is to get it in front of every iPhone user, and hopefully they love it and buy it, right? That's not possible today. Developers don't, most developers don't have those kinds of resources. Even the big developers would have a hard time getting their app in front of every iPhone user. Well, we're going to solve that problem for every developer, big to small. And the way we're going to do it is what we call the App Store. This is an application we've written to deliver apps to the iPhone, and we're going to put it on every single iPhone with the next release of the software. And so our developers are going to be able to reach every iPhone user through the App Store. This is the way we're going to distribute apps to the iPhone. So let's take a look inside the App Store. It's got the five buttons across the bottom. So we have a featured section, which is the ones we're featuring, just added, staff favorites.

We've got categories here. If you want to find a game, if you want to find a business application, you want to find an application about finance as an example, easy to find stuff and browse the different categories. Of course, we've got our top lists, our top downloads, top 50 in this case, where I can see what the most popular apps are that are being downloaded. And if I know what I want, I can easily search for something, in this case, a backgammon game, and instantly find it. I can tap on it, get some screenshots, and get a write up on it. And if I'm interested in using it, this one happens to be free. I just tap up there, and I tap the install button, and the app is wirelessly downloaded to the iPhone using the cell network or Wi-Fi. It's that simple to put the app right on the phone. Now, we've also built a section into iTunes where you can peruse all the apps as well. And you can download them right to your computer, a PC or a Mac, and sideload them right into your iPhone as well. But we think most people are probably going to just use their iPhone and do it over the air right to the iPhone. So this is pretty cool. But it goes even further. If you've downloaded an app and the developer has updated that app, the App Store will automatically tell you that there is an update available. And if you're interested, you just tap on the App Store, takes you to the update section, shows you the app that's been updated. You can see exactly what's been updated. If you like it, tap the update button and your app will be replaced by the updated version again over the air all automatically. So

we think this is pretty cool. And the App Store is going to be the exclusive way to distribute iPhone applications directly to every iPhone user. Now, developers are going to ask, well, this is great, but what's the deal, right? What's the business deal? We think we've got a great business deal for our developers. First of all, the developer picks the price. Pick whatever price you want to sell your app at. When we sell the app through the App Store, the developer gets 70% of the revenues right off the top. We keep 30 to pay for running the App Store. There are no credit card fees for the developer. We take care of all that. There are no hosting fees. For us hosting the app, we take care of all that. There's no marketing fees. The developer gets 70% of the revenues and it's paid monthly. This is the best deal going to distribute applications to mobile platforms. Now, we talk about the 70-30 revenue split, but the developer gets to pick the price. And you know what price a lot of developers are going to pick? Free, right? So when a developer wants to distribute their app for free, there is no charge for free apps at all. There's no charge to the user and there's no charge to the developer. We're going to pay for everything to get those apps out there for free. The developer and us have the same exact interest, which is to get as many apps out in front of as many iPhone users as possible. Now, will there be limitations? Of course. There are going to be some apps that

we're not going to distribute. Porn, malicious apps, apps that invade your privacy. So there will be some apps that we're going to say no to. But again, we have exactly the same interest as the vast majority of our developers, which is to get a ton of apps out there for the iPhone. And we think we've invented an incredibly great way to do it, which is the App Store. It's going to reach every single iPhone user. So, we've talked about some amazing new capabilities for enterprise customers and we've talked about the SDK. How are we going to deliver this stuff? Well, both of these are going to be delivered together in one software update, the iPhone 2.0 software update. So let me tell you about that. It's going to, again, combine the SDK plus all the new enterprise capabilities. There's a beta release going out today. The beta release is going to be in the hands of thousands of developers and hundreds of companies. We need the feedback. We need to work with enterprises and make sure that all of their configurations for exchange work great. Of course, we want to continue working with developers and get all of their fantastic feedback. And we're going to ship this to every iPhone customer in June. And it's going to be a free software update. So that's how we're going to roll this out.

In just a few months, every iPhone user is going to have everything you saw today right on their phone as a free software update. So we're very, very excited about this. Now, there's one other part to this as well. It's not just the iPhone. It's the iPod Touch. The same software release is going to run on the iPod Touch. So developers that develop games or other applications for the iPod Touch. iPhone, they're going to run on the iPod Touch as well. And all the enterprise features are going to be available on the iPod Touch. Now, we account for the iPod Touch a little bit different than we account for the iPhone.

So there will be a nominal charge for that update. But otherwise, it will be exactly the same as the iPhone. So this is our roadmap for the iPhone software. And we think a lot of people, after understanding where we're going, are going to want to become an iPhone developer. So how do you become an iPhone developer? It's really easy. You can go to our website, probably starting in about an hour, and download the SDK for free. You can run the simulator on your Mac and develop your app right on a Mac. In addition to that, you can join our iPhone developer program if you want to run the app on an iPhone or an iPod Touch.

And if you join the developer program, again, you can test your code on an iPhone or an iPod Touch. We've got great technical support. And you can distribute your app to every iPhone and iPod Touch user. And to join the developer program costs just $99. So this is really aggressive. If you have any questions about anything, just give us a ping at developer.apple.com. You'll be able to go to the website within an hour and learn all about it. And we're very excited about our developer program for iPhone. So that is our software roadmap. And we hope you are as excited about it as we are.

We think this is incredible. And so thank you very much for coming today. We do, though, have one last thing. The premier venture capital firm in the world is Kleiner Perkins, Caulfield, and Byers. And it is my great pleasure to introduce to you the most well-known partner of Kleiner Perkins, John Doerr. John? Welcome. Thank you.

Thank you. Well, we're all here today because we love Apple product. And I'm here because I really love Apple entrepreneurs. I like to talk about entrepreneurs this way. Entrepreneurs do more than anyone thinks possible with less than anyone thinks possible. Entrepreneurs are the risk takers. They're the revolutionaries. They're the rebels. And so it's particularly touching for me to be here today with the supreme commander of the rebels, my friend Steve Jobs. By now, you all know the story. In 1976, Steve started Apple and the whole personal computer industry. Then along the way, Steve left Apple, went downhill fast.

What's remarkable is this entrepreneur returned and resurrected Apple to greatness. And in his spare time, at the same time, he bought, built, and ran Pixar, literally defining the computer animated film industry. It's really pretty amazing. So on this special day, my friends, please join me in a salute for the world's greatest entrepreneur, Steve Jobs. Thank you. Entrepreneurship, then, really matters.

The computer scientist and Apple fellow Alan Kaye is famous for saying, the best way to predict the future is to invent it. And at KPCB, we like to say, the second best way is to fund it. So today, we are very proud to announce the iFund for the iPhone platform. New platforms are very rare, but they can be transformational. If they're about great products with robust APIs, powerful distribution, outstanding entrepreneurs, and usually a little help from VCs. So we gave a lot of thought to what the size should be of this iFund.

And you know, it took a couple million dollars to start Electronic Arts, $8 million to start Amazon, $24 million to start Google. So we decided the iFund should be $100 million. That should be enough to start about a dozen Amazons, or even four Googles. And if we're running out of money, we'll look around to try and find some more. Now, you know the Mac and the iPod are two truly amazing platforms. There's over a million developers on the Mac, and over 5,000 independent products for the iPod.

Today, we're witnessing history. That's the launching of the SDK, the creation of the third great platform, the iPhone and the iPod Touch. Think about it. What the iPhone's all about is, in your pocket, you have something that's broadband and connected all the time. It's personal. It knows who you are and where you are. That's a big deal, a really big deal. It's bigger than the personal computer. So it's about this great opportunity, but more than the money. It's really about the people. It's about the entrepreneurs. It's about the great team at Apple.

And most of all, it's about the great talent that we can recruit together and to go build these amazing companies. This iFund is going to be led by my partner, Matt Murphy, who's here today, together with Chi-Hua Chen, Bill Joy, Randy Komisar, Ellen Pau, Ted Schlein, and me. We're all here today. And we're on the web at kpcb.com. I've got to tell you, there's never been a better time than now to create a new company for a revolutionary new platform. And so my message to the entrepreneurs of the world is, if you want to invent the future, the iFund wants to help you build it. I can't wait to see the great new companies that we build together. Thank you.

Thank you, John. We really look forward to working with you guys to do just that. It's very exciting. So this is what we had for you today. We've got some refreshments outside for everyone. And if I could ask the press to just stay here for a few more minutes, thank you very much for coming. And we'll be talking a lot more about this over the next few months. Thank you. Thank you.