Steve Jobs on the Mac: Back to the Mac

Thanks for coming this morning, and we've got some fun stuff to share with you this morning. And because we're in a more intimate setting, I thought it'd be kind of nice to let some of the folks that worked on these projects, some of the engineers, demo them to you. So we're going to have a few colleagues up here showing you stuff. I'm going to be a little like a yo-yo, but that's fine. And so I'd like to start with the state of the Mac. We're going to be talking about the Mac today. And to take us through the state of the Mac, I'd like to invite my colleague Tim Cook, our chief operating officer, up to take us through that.

Thanks, Steve. Good morning, everyone. I'd like to start by talking about Apple's revenue and putting the Mac business in context. If you look at Apple's revenue, the Mac made up 33 percent or a third of the revenue for last year. And, you know, this is a significant number by itself. But what's even more significant is that 33 percent was twenty two billion dollars. Twenty two billion. And to put this in some context, the Mac company, if it were a standalone company and we have no plans to do that, would be a number 110 on the Fortune 500 list. Well, this is amazing.

And so this set a new record for us. And of course, with revenue came units or with units came revenue. We we did almost 14 million Macs in the fiscal year that just closed out. And, you know what? To put that in some context, that's three times as many that we did just five years earlier. Three times in five years. It's incredible. And of course, that has led to an incredible increase in the install base. And in fact, the install base now is just shy of 50 million users around the world. We're extraordinarily proud of this number. And, you know, this didn't just start happening last quarter for on a year of a year basis.

The Mac grew 27 percent versus the market rate of growth of 11. And so that's two and a half times the rate of growth market. However. This has been the case that the Mac outgrew the market for 18 quarters in a row. That's four and a half years. It's incredible momentum. And of course, with growing faster than the market leads to some good share numbers. And just as one proxy of that, the last month that we have from NPD, which is the month of August. The Mac share in retail in the United States was over 20 percent. That's one in five pieces that are sold in retail in the United States is a Macintosh.

Again, incredible. Now, with the share rising and the units rising much faster than the industry, we have a very vibrant developer community. And in fact, now, and this is a stunning number, we have six hundred thousand registered Mac developers. And what's even more amazing than the six hundred is the fact that they're growing at thirty thousand per month. Thirty thousand per month. And these are we have new developers like Valve, the creator of Steam. Valve is the one of the just the premier gaming developers in the world.

And they are bringing titles simultaneously to the Mac and the PC. They have twenty five million users and they're bringing titles like Half-Life. This is great for the Mac and a great shot in the arm for gaming on the Mac. We also have developers that we've worked with for a long time, like Autodesk. Autodesk recently announced, if you didn't see it, that they're bringing their flagship product, AutoCAD, to the Mac. Now, we've coveted this app for a long time and we couldn't be more pleased to have it offered to a whole new generation of designers on the Mac. And then we have developers that are continuing to invest in the Mac, like Microsoft.

You may have seen the recent announcement of Microsoft Office. They have done a remarkable job with this this product. If you've seen Outlook in here, if you haven't seen it, you should really look at it. It's exceptionally good. Now, with all of the success in developers. And all of the growth, maybe what's more meaningful for us is the customer reaction is great. Customer survey after customer survey, we are number one. The Mac is scoring number one. The ranking that was just out for ACSI, which is the American Customer Satisfaction Index, the Mac is number one, seventh year in a row.

And consumer reports, number one for the last decade in tech support. And PC World, number one in reliability. That's both desktop and laptop. And PC Magazine, reader's choice, number one, laptops and desktops. Some pretty incredible results. Now, fueling the Mac momentum, one of the key things behind it is this incredible push that we've had into Apple retail, which is still under 10 years old. This is the flagship store in New York. Our stores welcomed 75 million visitors last quarter.

And over the last fiscal year, they sold 2.8 million Macs. And what's more important than that is that about 50% of those are new to the Mac. And so the tent with the Mac is getting larger and larger. We now have 318 of those stores in 11 countries. And we've had some great store openings recently, like the store on the Upper West Side in Manhattan. Our push in international has brought us the second store in Paris. This is the Paris Opera House, if you've seen this. This is an incredible store. Our second largest store in London, the Covett Garden. And this is a jaw-dropping store with a 40-foot glass cylinder.

This is in Shanghai. And it's clearly destined to become a landmark. And this is our latest store in Beijing. The stores in China, interestingly, are the highest traffic of any of our stores. And if you've ever been to any of our U.S. stores, you know that's making a statement. And so that, my friends, is the state of the Mac. Whether you look at the products or you look at the numbers or what's behind the products and the numbers, the momentum on the Macintosh has never been more. Thank you. I'll turn it back over to Steve. Thanks, Tim.

You know, I could hear a lot of phones beeping, so could we just take a minute? Maybe everybody could flip the silencer on their phones. Thank you. So that's the state of the Mac. Now let's move on to some new products. I'd like to talk about iLife. iLife is widely regarded as the best suite of sort of digital life applications in the world. And it's why some people buy a Mac, because you can do amazing things with your photos, your videos, and music that you can't do on any other personal computer or with any other software. And we keep improving it every year or two, coming out with a new version, and it's gotten incredibly good.

Well, we've got a new version we're announcing today, which is iLife 11. It's got the same apps in it, and we'd like to give you a little look at three of them today. So the first one is iPhoto. It's the most popular app of the suite. And iPhoto 11's got some great features. You know, we tried in the last release this new thing, which was a full-screen mode, so you could go into full-screen mode and do a few things in iPhoto. And the response has been so great that we're really fleshing out the full-screen mode, so you can just live full-screen in iPhoto, and it's wonderful. We've got a lot of Facebook enhancements where you can even more easily post to Facebook and even see people's responses back to the photos that you've posted.

We've made it really easy and elegant to e-mail photos to people from iPhoto without ever leaving iPhoto. We've added some beautiful new slideshows. leap in books. You know, we're printing now over 2 million books a year. And we've got a big leap now in how you make those books and the quality of the printing. And it's really nice. And we're adding beautiful letterpress cards as well. So a lot of great stuff in iPhoto 11. And to take us through a demo of that, I'd like to ask Phil Schiller, our Vice President, Senior Vice President of Worldwide Product Marketing. Thanks, Steve. Well, good morning, everyone. I get to be the first to show you this great new piece of software, iPhoto 11. It's really stunning. I know many of you use iPhoto. It's one of the most popular apps ever on the Mac. And this is the best version yet. You can work as before in a window, as you see up here. But as Steve told you, this is amazing new full screen mode. I can spend my entire time working in iPhoto in a big, beautiful full screen. This is the events view. I've got all my events on here. I can scrub over any event to find a photo I'm looking for instantly. They're all organized chronologically.

You see how fast and smooth they are. They use a lot of new core software from Mac OS 10 to accelerate the performance. And it's incredible what core graphics lets us do. But it's not just events. I can click on faces and now get a beautiful full screen faces view. And I see all the people in my photo library and the faces. I can just click and find any one of my friends in my photos. And there's a new full screen places view as well. So now I get a big, beautiful map of the world. I can look at it by terrain view or satellite view. It's gorgeous. Coming down off of a server, real maps. I have a floating menu where I can pick any place I want to zoom in on, a state, a city, a specific location. So, for example, if I click down to someplace like London, we immediately zoom in on a map of London. You see push pins on the map for every place where I've taken photos and have them in iPhoto around London. Of course, those photos have location information.

If I took them from my iPhone, they automatically do. Or I can add them from photos I take with my camera. I can hover my mouse over any pin and I see a name of that location. If I click on it, I'll go right to those photos. Or better yet, I'm going to click this button that says show photos. And now that's all the photos in all the push pins that are in that area of the map I was just looking in. So there are seven places that had photos around London and here are all those photos. And I can work on those photos, do anything I want. For example, maybe I want to show you a slideshow of my pictures around London. I can do that right here with a single click. I'm going to click this button that says slideshow. And this will let me show you a second new feature of iPhoto 11. We've got some amazing new slideshow themes. I'm going to pick this one called Places and let iPhoto make a slideshow for us. See, iPhoto is zooming in on the photos, creating transitions. It automatically had a music track that's picked for me or I can select my own. If you look closely, the map is actually slightly moving behind the photos. There's a live drop shadow on the map. You've never been able to create slideshows this beautiful and you didn't have to do anything. iPhoto did it all for you. One up or two up. So that's one of our new slideshow themes, the Places theme. I'd like to show you a few more of those themes. Let's

go into Album View. The Album View, this is another new full-screen view. You see the albums look a little like the photo albums you have on an iPad. And I can see all the albums I've arranged of my photos. I can scroll down and you see live, I've got photos in here from my Facebook account. It actually reads them down even if they weren't added from iPhoto or from my Flickr account automatically all in the Album View. And of course, I've got slideshows in here. I've already pre-set up a few. So I'm going to play you one more to show you another template. So this is called the Reflections template. You get photos one up, two up, or four up. It automatically does it for you. A white background, a great music track, and of course, reflections along the bottom of the photos. I'd like to show you one more of these new slideshow themes. This one's really great. It'll hopefully get you in the holiday spirit. It's called Holiday Mobile. You see 3D effects. The photos swing around on the display. If you look closely, the snowflakes in the background are subtly moving. So that's just three examples of the great new templates for slideshows built into

iPhoto. So now, let me go back up to the top of the Album View. Steve mentioned there's a great way to send photos with email. And we came up with this because, normally, if you have a bunch of photos, let's say there's a bunch of photos I've flagged across some different albums, and I want to send them all to a friend, I have to cut and paste them into an email. And that can be cumbersome. So we've come up with an entirely new way to email photos, something very popular. I just select these. I click Share via email. And inside iPhoto, it's automatically created an email for me to send these photos off to my friends and family members. There are default templates. I can pick any template I like. Let's pick this postcard one. And the photos are already laid out in there. I can change it if I want. Let's say I want to take this family photo and move it up above into this postcard. I just drag and drop, and it swaps it for me. Maybe I want to make this koala bigger. Everyone loves koalas. So there we go. And I type in some titles, like, this was taken in Sydney. And I type a message to a friend. Wish you were here.

And then I just type in an email address. And of course, it reads it from my contacts in my address book. So I'll send these off to Steve so he can know where I was. And I can attach the full-size photos or just send this postcard version off in the email. It's up to me. And I click Send. And now iPhoto has gone and created that email and sent it off to Steve, and I'm done. I've never left iPhoto, and I've automatically mailed those photos off. It's really easy. I'm going to double-click on this photo here and show you another new thing in iPhoto 11, which is I'm going to bring up in the Info panel. And like before, you see what camera this was taken in and the settings that you used in that photo. Now you see a beautiful map of where the photo was taken. And there's this new panel here called Sharing. And you see what it tells me is that I just emailed that photo to Steve. I've also published it on Flickr. I've also shared it on Facebook. And here are even friends on Facebook and what they responded back about that photo right here in my Info panel in iPhoto. So it's a really great new view of all my social networking around my photos. So that's sharing photos via email. Now what if I want to create one of these great new books that you just heard about? Well, that's really easy and amazingly powerful. I'm going to pick this album called Australian Adventure. So you can imagine you and your families went on a vacation. You came back, and here are 121 of your favorite photos you took on that vacation. And you want to share them via a beautiful book, maybe a coffee table book. So how do you create that? Well, now I just click Create, select book, and I'm brought to another brand new full-screen view in iPhoto 11. This is the

carousel. In this book carousel, I can pick a theme for my book. But before I even pick anything, you can see those photos are already laid out in the book. These aren't placeholder photos. Those are my photos. And I can click around and see why it's called a carousel and choose what different theme I might want. Let's pick this journal theme. I'll select a color for the book. And I can choose what size. Let's make this an extra large book. And that's it. Now when I click Create, iPhoto has made that book for me. It's all right here in this beautiful full-screen view. And I can go in and edit it. But before I do that, I want to point out a few of the really intelligent things iPhoto's done. It's using the information about this album to make the book. The first cover of the book photo, that used my key photo for the album as the cover. I can change it, but it was smart enough to use that.

It also uses ratings. If I've rated a photo highly, like four or five stars, those will be the photos it likes to use for the bigger spreads. And it even tries to keep the photos together if they're taken around the same time. So for example, you can see these photos are all taken while at the beach. And so iPhoto grouped those together in a layout. And these photos were taken in the outback, and those were grouped together. And I have complete control of this. If I want to go in and customize it, I can just do it with a simple drag and drop. So, for example, I'm going to take this photo in the inset. I want to make that the big photo on the page. I just drag and drop, and there it is. Maybe I want to highlight this page and make it really special. Let me change the background. Maybe make it red to pull out the color of that clay. I can completely customize it. Maybe I want something entirely different. Maybe I want a big one photo spread with a text box.

Select that, and I've made that. I'm in complete control of this. At any time, I just go back and see all the pages. I can even reorganize the pages. So, for example, I love this two-page full-bleed spread of the photo. I'm going to make that beach photo the first thing you see in the book by just dragging and dropping. And when I'm done, I click Buy Book, and they all get sent up to the Apple service for printing the book, and a book arrives at your house or whoever you want to send it to. It's that easy to make a book. Now that I've made it, let's go back to this view. It's called the Project View. This is another brand-new full-screen view in iPhoto 11. It's a wooden bookshelf, and it holds all the projects I've created with my photos. You see the books, and on the second shelf on the right, there's that book we just created.

I also have cards in here. If I'm creating cards, they also show up in the Project View. I bring up one of these cards. You can make the most beautiful, amazing cards. Of course, just like the books, there's a carousel where you can select the theme of your cards. I'm going to click through a few of these so you can see them. They're just incredible. And across the top, I can select what kind of card I want a theme for. There's flat cards, folded cards, and this is a brand-new kind of card called a letterpress card. They're absolutely stunning. And if you don't know what a letterpress card is, well, right here in this carousel view, there's a video to teach you about what letterpress cards are. I'd like to play that video for you right now.

Our letterpress cards first go through a centuries-old printing method that uses a raised plate. During printing, the raised part of the plate is pressed into the paper. This not only reproduces the design, it debosses the paper, leaving behind an impression wherever the plate and paper have met. It creates a beauty you can see and feel. Once a card has been through this process, it's ready to step into the modern world of digital printing, where it can be personalized for special occasions with your very own words and pictures.

So that's just a few of the new features in iPhoto 11. It's the best version ever. Thank you, Steve. I think that's awesome. This is why we do what we do. So we've taken iPhoto and broadened out the full-screen mode so you can live in full screen, really taken the books up a big notch, allowing you to create just the most beautiful books and these letterpress cards, just like anything we've seen a computer do before, and all your projects together in one place. So we're really excited about these new features, and that is iPhoto 11.

Next up, iMovie. This is a great release, iMovie 11. Now, the number one request we got after the last version of iMovie was for better audio editing, and the team has gone above and beyond the call of duty and come up with something great. What we strive for in iMovie is to be able to do extremely sophisticated editing really simply, so that all of us mere mortals who don't want to learn how to use Final Cut Pro, say, can make these amazing movies. And that's what the team has done, all new audio editing, something called one-step effects, which you'll see, which are remarkable, a people finder to help you find clips with people in them, news and sports themes, and something we're really excited about, the ability to construct movie trailers with almost no effort.

This is going to be really fun. People are going to use this a lot. And so to show you iMovie 11, I'd like to invite Randy Ubelos, who's our chief architect for video applications, up to show you iMovie 11. Randy? Thanks, Steve. I've got some really exciting stuff to show you this morning. So first up, I'm going to show you audio editing. So in both the project and event views, we can now show audio waveforms, and you'll notice the audio waveforms are color-coded, and so it's really easy to see those portions of the audio which are approaching the peak, and they even show up in red if the level is too high. Come back up here into the project, play back this clip.

The audio's a little bit low. If I want to turn it up, all I have to do is grab the line here, and as I turn it up, you notice the audio waveforms actually adjust in real time as I move this. I can actually grab the control at the beginning to do a fade-in, and you'll actually see that the audio waveform shows that fade-in. It's all done live. We'll go ahead and play this back. Fades in, gets a little bit louder. One of the really common things that you do with audio is adjusting segments of audio. We've made that really easy. All I have to do is select the segment of audio that I want to change, and we'll go ahead and play this back first before I change it. It's pretty loud. If I take this segment and move it, you'll notice that just that segment gets turned up and down, and the color shows what's going on with the audio. I can also do a fade by just dragging the fade handle here.

So if I go ahead and play this back, it gets quiet in just the segment where we've adjusted. So really, really easy to make changes to audio levels. In iMovie 09, we introduced video effects. In iMovie 11, we've now got audio effects. I bring up my inspector, and when I click on the audio effect button, it's going to play back the clip, and all I have to do... That one sounds pretty good. I'll just click on it. You get a nice preview of that. We'll go ahead and play that back. With a single click, I get to make changes like that. We think people are going to have a lot of fun with this.

Switch over to a different project here. We'll show you something we call one-step effects. Let's go ahead and play back this clip here. We've got some nice double jump with these bicycles here, and it would be really nice if we did an instant replay on this. So what I'm going to do is I'm just going to select a segment here where they're jumping in the air, and then I'm going to come up to the clip menu, and I'm going to choose instant replay, and choose the speed that I want, 50%. What iMovie is going to do is it's going to take that segment that I had selected, repeat it, apply a 50% speed to it, and then put an instant replay title onto it, all in a single step. Let's go look at this next clip. Some more nice jumps there. This one right here, where he jumps in the air, it would be really nice to highlight this jump here.

I'm just going to select back from that, come up to the clip menu, and this time I'm going to choose flash and hold last frame. When I do that, iMovie is going to go ahead and put in a fade through white transition, and then it puts in a still frame from that last frame with a Ken Burns effect on it, and then back into the moving video. Let's go ahead and take a look at that now.

Some really complex editing with just a couple of clicks. Next thing I'm going to show you is movie trailers. When I bring down the new project dialog, in addition to the themes that we had before, we now have 15 movie trailers. There are a bunch of different themes to them, a lot of variety, and I can go ahead and just click on any of these and get a preview of what it's going to look like. You get a nice preview there. I'll go ahead and choose 24 frames per second. That's actually also a new feature. We'll hit create, and I'll switch over to this whitewater rafting footage that we have. Some nice looking footage that we shot.

I'll go ahead and play back a little. It's some nice footage, but let's turn it into really amazing footage. The way we're going to do that, we start out in our outline view. This is where you put in the basic information about our trailer. We get to put in a name, so I'm going to go ahead and type in a name. You notice that it's updating live over there in the viewer. We'll go ahead and give it a date. Then we fill in the cast. Several of the trailers you can adjust from two to six cast members. This one we've got set for four. We had four people on this trip. We've got Linda. We've got Nicholas we have Stephanie and we had Damien and we'll set the gender here to male and Now we have where we can go in and put in a studio logo You can change the name of the studio that you want and then we have five different studio logos go ahead and choose this sun rays through the clouds really nice looking one and then we have credits that come up and You get to fill in all the different parts of the credits. It pulls the name out of your address book So it's pulled my name out of here. I think that's good. We'll leave that there Go over to the storyboard now on the storyboard tab I actually get to see how the trailer goes together and we have these nice moving animatics that go in with all the text and I can use this to see the pacing and the timing before I've actually even started to put it together Let's go ahead and just take a little look You So I can get a real feel for it before I've even started to put it together you'll also notice the music

We've got actually for all 15 of these trailers We have new original scores that were put together and a number of them were actually done We went to the went to London to Abbey Road Studios and had the London Symphony Orchestra Record the original pieces for these so you get to have a full symphony behind your movies. It's pretty amazing So let's scroll back up to the top here, and let's go ahead and just make this trailer We're gonna make this start to finish so I can go in here, and I can change any of the text so this case leaving behind the city and Instead of a young family we'll put in a group of friends You See it's all updating live over there now all we have to do is fill in the clips So what I do is I just come down here and skim to any point and just click on The beginning of a clip I'd like to put in puts it up into my trailer. We've got some nice establishing shots here I've got this footage of them going into the water Go ahead and get an action shot. It's asking for this looks like a good action shot in the raft Now it's asking for a group you see this is going together pretty quickly We can make it even easier you notice down here in the event these purple lines that are showing those are done through our people finder We've taken the face detection technology out of iPhoto and applied it to video So we can actually identify the segments of video that have people in them And we can identify shots that have one person two people or many people for a group We can also tell by the size of the face whether it's a close-up medium or wide shot So if I come down here and just open up my keyword panel I movie sees that and since it's asking for a group shot It's going to set the group key keyword filter and so now it's only going to show me shots that have multiple people in them

So those fit with What it's asking for it makes it even easier to choose shots, so I'll pick a group shot now It's asking for a medium shot, so that's what I see I get medium shots down here Asking for another group shot fill in a group shot Looking for an action shot. Here's a great one going through the trees One more group shot get everybody having some fun there Now it's telling me that this one's going to have a slow motion applied to it So let's see somebody going on the water there. That'll look really good in slow motion now It's asking for a close-up shot of Linda And you notice that it's shown me just close-up shots down here, so it makes it really easy to pick out a shot Now it's asking for Nicholas looks like we don't have a close-up shot of Nicholas So I'll go ahead and add a one person keyword so we can find shots with a single person and there we go There's a shot of Nicholas pulls up for me, and let's see let's here's a shot of Stephanie and then we need a shot of Damian there and One more group shot here's a nice shot of the group another Action shot that we're looking for and I'll go ahead and turn off the one person keyword there So we can get a nice action shot here somebody going in the water. That'll be a great action shot One more group shot here, and we're just about done Then we'll go ahead, and I'm just going to pick out one more action shot in here a nice action shot and There we are we're done So let me go ahead and play this back full screen have a look You

So you can see how easy it is you can imagine coming back from a trip like this and in five or ten minutes We're literally putting something together and then sharing it directly from iMovie in addition to the sharing options We had before with mobile me gallery and YouTube we also now have direct sharing to things like Facebook and Vimeo in addition to some others So I actually have two more of these trailers I'd like to show you so you can see the wide range of themes that we have with these let's go ahead and show those you

Thanks very much. That's my movie 11 That awesome You know Randy along with his team have invented all of this stuff. It's amazing so iMovie 11, and we think it's a real breakthrough. We think people are going to have tons of fun Rapidly being able to create stuff like this posting it on Facebook posting it on YouTube posting it on Vimeo. It's going to be great So a lot of great new features in iMovie 11 We also have a new garage band Garage Band 11 Garage Band 11 has got some great features To help you fix the timing of the rhythm in your music something called flex time something called groove matching as Well as a bunch of other stuff including more guitar amps and effects and new piano And guitar lessons including a feature a feature called How did I play and we think this stuff's going to be really well received and to show it to us is Zander Soren Product a marketing manager Thanks, Steve So I'm very excited to show you the new version of garage band now We're going to look at two things today some great new recording tools and a really fun way to learn the piano and guitar So let's launch the brand new garage band 11, and it starts with a project chooser. We're going to open up an existing song Now this brings up the part of the garage of garage band that most people are familiar with This is the canvas where you record and create your songs

Now imagine here that a group of kids have gotten together to jam in their garage, and they've recorded this piece So we've got a few tracks of guitar We've got some bass and percussion and everybody recorded along to a drum loop So we'll play a little bit of it And I think it'll be pretty obvious to all of you that these guys are going to need a little bit of help You OK, kind of a mess, right? Well, the problem here is the rhythm. Everybody's just playing really sloppy. Now, they all record it to a drum loop. So if I start by just soloing the drums that they began working with, drums are great.

The drums are not the problem here. In fact, the drums are the only thing in this entire song that are playing with good rhythm. And we can really show this off by just bringing in some additional musicians, and you can quickly hear things falling apart. Right, those two guitars, they're all over the place. They're having some struggles keeping up with the drums. But the great thing is that the groove matching feature, the new groove matching feature in GarageBand 11, will let us fix all of this with just a single click. So as I hover my mouse over the left side of these tracks, you see the star appears. So I get to pick one track in my song to become the groove track. And of course, we're going to pick the drums here. And look what happens when I click on the drums.

GarageBand instantly analyzes the rhythm of those drums, including the human feel. That's a really important part of that performance. And then it applies that groove to every other instrument and every other track in this song. So now when I go back and play this, all the instruments are going to be locked together in perfect rhythm, but to a human rhythm, because we don't want our song sounding robotic. So let's listen. All right, much better, right?

Really, really cool. So that's groove matching. And it's kind of like an automatic spell checker for bad rhythm. Really great. So groove matching is great for these global timing fixes to your song. But sometimes you want to go in and you just want to target one or two notes and get them just the way you want them. And that's a perfect job for the new FlexTime feature in GarageBand 11. Now, you might remember at the end of the song, all the guitars kind of hit that one big chord and they really let it ring out. I'll play a little bit of that to remind you. All right, so it sounds good, but the problem is that one of the guitars missed that hit. And you can even see it visually, because all these regions have these nice, long waveform tails. And then this one comes up a little short.

So we can go and solo that track so you can hear it. All right, so he just forgot the hit, played that a little short. Not a problem, because we'll be able to fix that with FlexTime. All I have to do is double click on the region, and it brings up my audio waveform editor. And the great thing about FlexTime is that I can click right on the waveform. And now look at this. I can stretch it out to make it longer. I can make it shorter. FlexTime makes audio this very fluid, flexible thing. So I can just drag it out as far as I want it. And now it's playing as long as all the other guitars were. It's a really, really easy way to fix the timing of your songs. Between groove matching and FlexTime, musicians are just going to love these new features.

But now we're going to go to a completely different part of GarageBand, because GarageBand also has music lessons built right in. You can learn to play piano and guitar directly in GarageBand. And you get there by clicking on Learn to Play. And here you can see all the great lessons that we've built right in. If you've never picked up a guitar before in your life, start out with Intro to Guitar. We'll tell you everything you need to know to play that first note. But we've also added a bunch of great new lessons as a part of iLife 11, this blues guitar and rock guitar series that are really great. And the same thing with piano, all these wonderful lessons, including this classical set that I really love. And we'll play out. Let's take a look at Mozart's Minuet in F major. Now, the amazing thing about this piece is that Mozart wrote this when he was just a kid, and he was learning how to play.

So really cool. Now, as you can see in GarageBand, the entire Learn to Play feature is presented in full screen. And it starts with this beautiful HD video at the top. And I'll play a little bit of the intro for you. Hi, I'm Tim. In this lesson, you'll learn how to play Mozart's Minuet in F major. Right, and I won't go through the whole lesson and play it, but I'll just scrub through and show you that the instructor will give you a step-by-step, note-by-note breakdown of the entire piece, including this animated piano down below that shows you what finger to play and where to put it on the keyboard. And the great thing is that you can learn this at your own pace with no pressure. Just at your comfort level, go through and learn the piece. Now, when you're ready to play along, you just go to the Play chapter, and now we're ready to check out the new How Did I Play feature.

Now, I'm a guitar player, so we're going to get a little bit of help on keyboards from Gerhard Lengeling, who's our chief software architect for GarageBand. Come on up. Welcome, Gerhard. So right here, we have just a standard USB music keyboard that's attached to the Mac, and it plays the built-in grand piano sound that we have. Play a little bit. All right? And it's really easy. Once I hit Record, Gerhard's goal will be to play along with this piece and try to play as accurately as possible, and GarageBand will tell us in real time how he's doing. And the other cool thing is that he gets to play along with a real chamber orchestra that we recorded in Vienna. So it's always better to be able to play with real great musicians from day one than a boring metronome. So if you're ready, Gerhard, I'm going to hit Record and then get out of your way here. Sure.

Ready? OK. Good luck. He says he plays correct. It lights up the notes in green, so he's doing good. OK, so if you make a mistake, it'll highlight it in red for you. And you can see a little timing. When your timing is off, it shows you that in yellow. And in the lower left corner, it keeps a running score of how you're doing against the entire project. OK, so I think you get the idea. We'll stop it there. And the great thing is that, thanks, Gerhard.

Great job. Thank you. Thank you. OK. Now, the cool thing is that this timeline shows you exactly how you did. So you can see at a glance that, OK, that's where I rocked it. We played that OK. And then over here, we can click to review the mistakes. Now, Gerhard doesn't make a lot of mistakes in his life, so I apologize to you to have to relive this painful memory. But OK, so there's that note. OK. Even better, every time you complete a performance, GarageBand is keeping track of that and building a history. So we can now click on History and see all the times you've been working on this song. Of course, when you start out, you'll probably have some troubles with different sections. And hopefully, over time, you'll be getting better, until one day you'll be able to play a perfect 100%.

So that's the new How Did I Play feature in GarageBand 11. It works with piano, but it also works great with guitar. And we think musicians are just going to have so much fun with this new release. So thanks a lot, Steve. Back to you. Thank you. Thank you. Thank you. Thank you. Thanks, guys. Isn't that great? So GarageBand 11, with some great new features in it. You know, we have over 5 million people using GarageBand now. Isn't that incredible? 5 million people using this technology to make music, to learn how to play instruments. It's wonderful. So iLife 11.

iLife 11, all this amazing engineering that's going into these products, the ability to do all these things, is free with every new Mac. It comes included with every new Mac for free. And if you want to upgrade your existing Mac, it's just $49. This has got to be some of the highest value software in the world. And iLife 11 is available today. So you can get it today. We're really proud of this product, iLife 11. In addition to thanking all of the engineering geniuses working on this stuff, Gerhard, Randy, and others.

Greg Gilley. Where's Greg? Stand up, Greg. Greg is the engineering manager for iLife and has done a phenomenal job. Greg. Thanks to Greg and everybody on his team. We've got some brilliant people working on this stuff. And they're constantly amazing us with this. So that's iLife. Next up, I'd like to talk about FaceTime. FaceTime is pretty remarkable. It's really the first video calling on mobile devices. We introduced it in June on the iPhone 4. In September, we brought it to the new iPod Touch with its front-facing camera.

And since then, in the last four months, we've shipped 19 million devices with FaceTime on them. 19 million. Well, what could be better than that? The number one request we've gotten is could we please be able to do FaceTime calling between these devices and the Mac? So today, we're announcing that we're going to add tens of millions of. Mac owners to that as well with FaceTime for the Mac. Here it is. And you've got your contact list, which just takes your contacts from your address book. You don't have to populate a special buddy list or anything else. You can have favorites and, of course, your recents. You just pick somebody, click on them, and you initiate a FaceTime call, whether it's with another Mac, an iPod Touch, or an iPhone 4.

And it even does full screen. So we're really excited by this. And rather than just talk about it some more, let me give you a demo. So on my Mac here, we've got our new FaceTime logo right here. And I just double click on it. And what I'm going to do now is just go to Favorites. And here's Phil Schiller. And I'm just going to go ahead and initiate a call with Phil. Hey, Phil. Hey, Steve. Hey. Hey, what device are you on? Are you on a Mac or one of our phones?

I'm on an iPhone 4. I always have it with me. Yeah. That's great. Well, listen, why don't you go ahead and turn your phone into landscape mode. OK. So obviously, I don't want to turn my whole display. So FaceTime on Mac just turns the display to match a phone. Want to turn it back? So again, this is so simple. There's nothing to set up. There's nothing to configure. That, you know, it's a very simple demo. So now, the tens of millions of Mac users are going to be able to FaceTime with iPhone 4s and iPod touches. And I think people are going to like this based on the requests we've gotten.

Hey, thanks a million, Phil. Bye-bye. Bye-bye. OK. Well, that is FaceTime for the Mac. Now, maybe the best news is that we're going to release a beta release of FaceTime for Mac today. So be able to go to apple.com and get a beta release of this today, run it on your Mac, and start FaceTime calling with over 19 million users on their iPhone 4s and their iPod touches. And there's the new logo right there. So we're excited about that. Now, next up, the entree for today, we want to give you a sneak peek at where we're going with Mac OS X.

And, you know, as you know, we've had seven major releases of Mac OS X in the last decade. I don't think anyone can match that track record. And we've been improving it with every major release. And we're really happy with Snow Leopard. But we know how to take it even further. And so today, we are going to give you a preview of the eighth major version of Mac OS X. And we call it Lion, Mac OS X Lion. Now, what is the big idea? What is the philosophy behind Mac OS X Lion?

Well, that's where Back to the Mac comes from. What we've done is we started with Mac OS X. And we created from it a version called iOS, which we used in the iPhone. And we invented some new things. And we've perfected it over the last several years. And it's now used in the iPad as well. Well, what we'd like to do is we're inspired by some of those innovations in the iPad and the iPhone. We'd like to bring them back to the Mac. And so that's what Lion's about. Mac OS X meets the iPad.

There's a lot of innovation in Mac OS X, user features, and a lot underneath the hood. But at a high level, these are going to be some of the most exciting things. And we haven't got time to show you everything today. But we wanted to give you a taste of the philosophy behind it and show you a few of the key features that we're working on. So what exactly is it that we have learned and become inspired by on the iPad? Well, multi-touch gestures. Multi-touch gestures can be really important. And we think they can be really important on the Mac, too. The App Store has completely revolutionized how people get their apps on the iPhone and the iPad.

Why not the Mac, too? And when people get their apps on the iPad, they have a great place to put them. They have these home screens. They have all their apps on them. They don't have to go hunting around for their apps. Full-screen apps. Every app on the iPhone and the iPad is a full-screen app. And sometimes, not always, but sometimes, that's great on the Mac, too. We've seen that from the work that we've done as an example in iPhoto, which we've expanded on in iLife 11. Full-screen apps can be really great sometimes. Apps on the iPad auto-save. You don't have to bother saving your data. It's constantly saved for you. It's one less thing to worry about.

And when you launch apps, they auto-resume. They come up exactly where you left them. That'd be great on the Mac, too. And there's a lot more, but these are some of the highlights of how we've been inspired by the work that we've done in iOS, and we'd like to bring it back to the Mac. So let me talk for a few minutes about a few of these. Multi-touch gestures. The first thing you think about is this. We thought about this years ago. We've done tons of user testing on this, and it turns out it doesn't work. Touch surfaces don't want to be vertical. It gives great demo, but after a short period of time, you start to fatigue.

And after an extended period of time, your arm wants to fall off. It doesn't work. It's ergonomically terrible. Touch surfaces want to be horizontal, hence pads. For a notebook, that's why we've perfected our multi-touch trackpads over the years, because that's the best way we've found to get multi-touch into a notebook. We've also, in essence, put a trackpad, a multi-touch trackpad on the mouse with our Magic Mouse, and we've recently come out with a PurePlay trackpad as well for our desktop users. So this is how we're going to use multi-touch on our Mac products, because this doesn't work.

The App Store. The App Store has been huge, as you know. On the iPhone, it's completely revolutionized mobile applications. On the iPad, it's phenomenal as well. Now, how do we know this? Because over 7 billion apps have been downloaded from the App Store. 7 billion. There's never been anything like this that we've seen in our careers. And so we'd like to bring it to the Mac. And as part of Lion, we're going to have a Mac App Store. What are going to be the characteristics of this store? Well, it's going to be the best place to discover apps, just like it is on the iPhone and the iPad. Won't be the only place, but we think it'll be the best place.

One-click downloads. Free and paid apps, and it's the same deal for the developers. They keep 70% of the revenues. Automatic installation. You won't have to do anything special. The apps will just download and automatically install. And automatic app updates, just like the iPhone and the iPad. So when apps update, you'll be notified. One button, you can update all the apps. And the apps will be licensed for use on all your personal Macs. So we're making it very simple. So that is the Mac App Store. And when you get your apps, you're going to have a single place to put them, which is the launch pad.

Again, home screens for your apps, just like on the iPad. So that's the first three. And the last three we're doing as well, and I think you can imagine those. So there's one other thing we'd like to show you today. We have these four cool inventions, or things we do in Mac OS X. Exposé, a great way to find your windows and do window management when you have lots of windows open. Dashboard, a great way to get to widgets instantly. Full screen apps, which we've talked about. And spaces, if you want to create more than one workspace and move between them rapidly. And this is great, but as we've added full screen apps now, we said, you know, we have four of these things.

Wouldn't it be great to unify them all? And so we've done that in something we call Mission Control. It's a way to view everything running on your Mac and instantly navigate to anywhere. So what we'd like to do now is, even though we have tons of new features in line, we've picked out a few of them, and we'd like to give you a sneak peek today. And to do that, I'd like to ask Craig Federighi, who's our Vice President of Engineering for Mac OS X, to come give us a demo. All right, well, thank you, Steve. Thanks, Craig. Well, hello. Oh, wow, thank you. So I'm absolutely thrilled to give you this sneak peek of just a few of the many features coming in Mac OS X Lion. And I'd like to start with the App Store.

So the App Store, with the App Store, we've taken everything that users love about the App Store for the iPad, and we've brought it to the Mac. I can get to the App Store right here on my dock. See on the Featured page, I have access to the new and noteworthy applications on the store. I see what's hot, staff favorites, great way to track what's going on. Across the top, I also have Top Charts. Here I can see the top paid and the top free apps currently on the store. Over here in Categories, I get a great place to go if I'm looking for something specific, for instance, education apps for the kids. And finally, we have Updates. The App Store is tracking all of the apps you've downloaded on your Mac, and when they have new versions available, they're listed right here.

And if you want to, you can select one, or with a single click on Update All, you can bring your Mac entirely up to date. Well, next I want to show you just how easy it is to purchase and install a new app using the App Store. I'm going to go back to the Featured page, and I like to install Pages. I don't have Pages on this machine right now. So I'm going to go to the Product Overview page. You see I get this great description. I get these gorgeous screenshots, help me make sure I'm buying the right thing. I get these customer ratings and reviews. It's really helpful to make sure I'm making the right decision. And when I'm ready to purchase, it's just one click on the Buy button. You'll see the app icon actually lifts up and flies out of the App Store down to my dock. Now, this is a real App Store app, speaking the real protocol to a real server, and downloading a real copy of Pages to my machine.

And you see installation has never been easier. With just a click, I'm running my newly purchased application and creating my first Pages document. It's just that easy with the App Store. So that's the Mac App Store. We think developers and users alike are really going to love it. So next up is the Launchpad. Launchpad is a super convenient way to organize and launch all the apps you have on your Mac. See it right here in my dock with a click. Launchpad leaps forward to this beautiful full-screen grid of my apps. If I want to launch something, let's say Dictionary, it's just a click. And Launchpad fades back, my app fades forward.

Can also organize really conveniently here in Launchpad. You see we have iPad-style Pages. So with a multi-touch gesture on my mouse or trackpad, I can just flick my way to other applications, for instance, my productivity apps, my games, so forth. Really, really easy. I also can organize my apps within these Pages. So if I want to move iTunes, let's say, up here to the top, I do what a Mac user would expect. I click and drag, everything gets out of the way, I let go, and I've reorganized. Really nice. I also can create folders, just like on iOS. So let's say I want to create a productivity folder. I just pick up Keynote, drag it on top of Numbers, let go, and I have a folder. I can add my new Pages, pick it up, drop it, just like that, I've created a folder.

So that is Launchpad coming in Lion. Next up, full screen apps. We've brought the immersive experience of apps on the iPad to the Mac, and we've provided a great new way to work with apps in full screen. I'm gonna demonstrate by opening a PDF. So here we have Preview open with a PDF, looks nice. But now, because in Lion, full screen is integrated, I can click on a standard control, and it sweeps open into a gorgeous full screen view, facing Pages view. When I'm in here, I then can use gestures to move between the pages of the PDF. Really convenient. But what's really great about full screen in Lion is that I don't have to leave full screen if I want to go work on something else.

I can do a simple multi-touch gesture on my mouse or trackpad, and I'm right back at my desktop. And when I want to get back to that full screen app, I just gesture back. Super simple. Let's take another app full screen. In this case, iPhoto. Now, Phil demonstrated earlier that iPhoto has this fantastic full screen experience. I can now get to it with a standard control. I'm now in full screen iPhoto. And this is how I'll probably want to work in this app all the time. But if I want to get back to my Preview document, I just flick. Want to get back to my desktop? Same thing. And we've even made Dashboard accessible in the same way. So flick to the left of my desktop, and I have access to all of my widgets. Super simple. Now, of course, as a Mac user, I also love working with Windows.

So I'm going to bring, and I mean Windows, not Windows. So I'm going to open up some Windows. We have App Store here. I'm going to open up the App Store, Safari, iCal, iTunes, and let's say a Pages document here. So I can, of course, flick between these different experiences here, and it's really convenient. But we've made it even better. What we've done is unified Windows, full screen apps, Dashboard, and even Spaces into a single place, a place where you can get at anything on your Mac from wherever you are. And we call that place Mission Control. I'm going to take you there right now. The gesture on my trackpad, I enter Mission Control.

We see I have a beautiful expose view of all of my Windows. Across the top here, I get my full screen apps, my Dashboard and my Desktop, and along the bottom, my Docs. So I can get at all my apps. With a click, I can get to anywhere. If I want to get to iPhoto, I just click and I'm taken right there. With a gesture, excuse me, with a gesture, I'm back in Mission Control. I can go to Preview and Back, or back to my Desktop. Super simple. And because we have this great expose, if I'm looking for a window and it's covered up in my Desktop clutter, I can go to that same place. So let's say I want to find that App Store window. I can just flick in.

And you see there's App Store right there. And it's clustered by app, so it's really easy to find. I click and it comes forward. Now we've made expose even better in Lion because these app clusters take multiple windows from the same app and bring them together. So if I want to sneak peek and see a particular window, maybe to get a better look before picking my particular Safari window, I just flick open, I can pick the window I want, and bring it right to the front. So that is Mission Control. And that's your sneak peek of just a few features coming in OS X Lion. Thank you very much. Thank you, Craig. We're really excited about Lion. We think bringing some of these things back to the Mac and coming up with some very fresh new things like Mission Control is gonna really delight Mac users.

So again, a whole new way of getting apps with the App Store, of finding and launching apps with Launchpad, and we're excited about Lion. Of finding and launching apps with Launchpad, being able to work in full screen and move between full screen apps effortlessly, and then moving back to your windows, and of course, Mission Control. And again, I wish we had another hour and a half to show you more, but we'll unveil this over time as we get closer to releasing it. Our plan is to release Lion this summer, summer 2011. And we are on schedule for that. We're feeling real good about it.

So that is Mac OS X Lion. Now, I wanna go back and talk for a minute about the App Store. The Mac App Store is, we think, gonna be really great for our users, and we don't want to wait for Lion. So we've decided that we're gonna put out the Mac App Store on Snow Leopard, and we're gonna open it within 90 days. The Mac App Store is gonna open within 90 days from today, and developers can go to our website and learn all about it today. And we are going to be accepting app submissions from developers in November, that's next month, for the store that's gonna open within 90 days.

So we're very excited about that. And that is Lion, the App Store opening within 90 days. And again. Back to the Mac. Let me review some of the things we talked about today Tim took us through the state of the Mac. The Mac is a third of our revenue We pay a lot of attention to it. We love the Mac. We're investing heavily in the Mac It's a 22 billion dollar business, which if it was a standalone business would be a rather large business in the fortune 500 Our retail market share has topped 20% for the first time in a long while and We continue to invest in our retail stores We couldn't be happier with the performance of them and how they're bringing more and more people into the Mac tent iLife 11 Phenomenal new applications. iPhoto 11 full-screen mode, better books, all new letterpress cards iMovie 11, you can imagine how we're all going to use this, and GarageBand giving those millions and millions of GarageBand users even cooler things they can do now with their compositions and in learning how to play instruments FaceTime on Mac so that the tens of millions of Mac users can now FaceTime with our mobile devices We think this is going to be very popular and Lion coming this summer with amazing features like mission control, the launch pad, and

the App Store and with the App Store opening within 90 days from today So this is these are the things that we wanted to share with you today. We're really excited about them But there is one more thing and that one more thing really comes back to our theme for today, which is back to the Mac You know we talked about this virtuous circle with Mac OS 10 helping to create iOS for our devices, that maturing being on the iPod as well and now being inspired by that bringing some of that back to Mac OS 10 But just like that philosophy has some benefit in our software It can also have some benefit in our hardware What would happen if a MacBook met an iPad?

There's a lot to be inspired about there as well. Well. What are some of those things? An iPad has instant on All right, that's pretty rare for a notebook. Great battery life Amazing standby time, 30-day standby time Solid-state storage, so there's no optical or hard drives and It's thinner and lighter, which means it's even more mobile these are some great things for notebooks and So we asked ourselves, what would happen if a MacBook and an iPad hooked up? Well This is the result It's one of the most amazing things we've ever created It is our new MacBook Air, and we think it's the future of notebooks I'm really excited about this. It is gorgeous. Let me just show you a few beautiful shots of it It's like nothing we've ever created before and it's it's really stunning And it's really small It's amazingly thin at its thickest point It is 0.68 inches thin at its thickest point and it tapers down to just

0.11 inches at its thinnest point. That's a tenth of an inch And it weighs just 2.9 pounds Now it's really it's hard enough to build something thin But we also want our products to be rigid and durable and So the new MacBook Air is complete unibody construction Complete aluminum unibody construction It's pretty amazing. It's got a full-size keyboard and a full-size glass trackpad These are areas where you do not want to sacrifice So, let me tell you a bit about it the first thing is it's got a 13.3 inch LED backlit display and It's a high-res display 1440 by 900 pixels. This is more pixels than are on our 15 inch notebook today More pixels than on the 15 inch MacBook Pro It's got a core to do a processor which is a fast processor for this class of machine and great graphics great NVIDIA GeForce graphics full size keyboard full size multi-touch trackpad and a FaceTime camera Now just as interesting as what it's got is what it doesn't have There is no optical drive and there is no hard drive We have gone to flash storage complete solid-state storage

Now, why do we do this? Because we know the benefits from the iPad instant on It's up to two times faster than hard drives that's a lot It's much more reliable, especially in a mobile environment and It's 90% smaller and lighter Again, very important in a mobile environment It also gives you completely silent operation Now we know a lot about flash. We've designed it into our iPhones. We've designed it into our iPads and As you may know Apple is the largest user of flash memory in the world So we know a lot about creating flash storage subsystems Battery life on the new MacBook Air wireless web tests seven hours Standby 30 days 30 days standby time instead of the few days we get with today's notebooks now the wireless web tests as well, you know, we've The PC industry's battery tests sometimes don't reflect real-world results and We're moving towards some more stringent tests and that really we think are going to get us much closer to real-world results on battery tests and even using these more stringent tests We're getting seven hours of wireless web battery life our previous MacBook Air using the old more liberal tests got only five

So we're really happy with this improvement in battery life We think it's a double improvement not only from five to seven but with we think much more realistic testing So what's inside this puppy, let's take a look We have Flash storage Again, we don't put it inside a big SSD container. We put flash Basically right on the board. That's how we do it in the iPad the iPods the iPhone 802 11n Wi-Fi wireless networking There's our core to do a processor and our graphics processor Our memory stereo speakers and our battery you can see what the biggest thing in this is It's the battery if we take out the battery, you can see how small the electronics are That's an entire high-performance Mac on that tiny little board. We've taken everything we've learned about miniaturization from from iPods iPhones and iPads and applied it to the Mac We're really really excited about this now This 13.3 inch MacBook Air isn't the whole story Because it has a younger brother, too In addition to the 13.3 inch Its younger brother is an 11.6 inch even smaller Is an 11.6 inch even smaller

even lighter 2.3 pounds And it's also an amazing product It's got all the things that the 13 inch has processor and video graphics full-size keyboard even on the smaller unit multi-touch trackpad facetime camera and Of course it has an 11.6 inch led backlit display and also high resolution This is more dots than our 13 inch macbook pro as today. So high-resolution, widescreen, 11.6-inch display. And it gets a battery life of five hours on the wireless web, again, using those same more rigorous tests, and the same 30 days of standby time. So, what are we going to price these at? We've tried to be really aggressive. We see these as really the next generation of MacBooks. We think all notebooks are going to be like this one day. And so, we're going to start off the pricing for these new MacBook Airs at just $999. And $999 gets you the 11.6-inch model with 64 gigabytes of flash memory. If you want to double the flash to 128, it's another 200 bucks to $1,199. You can go to the 13-inch, get a slightly faster processor for $100 more at $1,299. And if you want to double the storage again to 256 gigabytes, $1,599. And all these

models include two gigabytes of memory and, of course, the NVIDIA GeForce graphics. So, from $999 to $1,599, the new MacBook Airs. We think these are very, very strong products. And, of course, they meet our environmental checklist. They are Energy Star 5.0, mercury-free, arsenic-free glass, BFR-free, PVC-free, and highly recyclable with their aluminum and glass. And they also meet EPGOLD standards. So, these are great from an environmental and toxics point of view. So, we're really excited about these new MacBook Airs. And I'm really pleased to say that both of them are available starting today. So, we made an ad. And if you'd like, I'd love to show you the ad. Why don't we roll it?

Everything we've learned has come down to this. The next generation of MacBooks. Real simple. And we've also made a nice video that I'd love to show you, kind of summarizes everything we've talked about about the MacBook Air. And let's go ahead and run that too. With the new MacBook Air, we wanted to design and build an incredibly mobile product, but without compromise. Everything that we've learned designing really powerful notebooks, and everything that we've learned designing really small mobile devices culminates in the new MacBook Air. The MacBook Air would probably not exist as it does now if it weren't for the things we've learned with iPad. We've learned how much customers care about this multi-touch user experience. We know they care about all-day battery life. Took a lot of great ideas. They informed us on where we should go with our notebooks. Sometimes when you walk away from an old technology, it can lead to a breakthrough. And that's what we've done with MacBook Air.

We've designed completely around flash storage. That's allowed us to make a product that's instant on, longer battery life, silent operation, much smaller, thinner, and lighter. All that happened by having the courage to say we're going to base this product around flash technology. The key thing we've learned is touch is extremely important to how we interact with our software. If we had tried to build it into the display, we discovered that it's not in an optimal position. You don't feel comfortable holding your hand up in the air and trying to multi-touch. The best way to deliver multi-touch in the notebook is through the trackpad. So in the MacBook Air, we've built in a large glass multi-touch trackpad right below the full-size keyboard. We've done all this in an amazingly thin and light design. The 13-inch MacBook Air weighs just 2.9 pounds and measures 0.68 inches at the rear. Then it tapers to just 0.11 inches at the front. And for the first time ever, we've made an 11-inch MacBook Air. It's just as thin, but it only weighs 2.3 pounds.

These are the thinnest and lightest notebooks we've ever made. And while it is really challenging, designing something that's this thin and this light, it's really, really hard to design something that's also strong and robust and this precise. Creating structure and features from a single piece of aluminum reduces multiple parts to a single one that is not only very thin, very light, but has incredible structural integrity. There is something about how truly simple the parts are inside and out that makes this, I think, one of the most beautiful products we've ever designed.

One of the key design decisions that we made early on with the new MacBook Air was to use flash for storage. We do flash storage differently than other computer manufacturers. Rather than package it inside a housing, we place the chips directly on the logic board so we can be much more efficient about the way we use space. This gives us a lot more room for batteries. So what you get is up to five hours of battery life on the 11-inch product and up to seven hours on the 13-inch product. And you get up to 30 days of standby time. One of the things we're proud of with the new MacBook Air is it's a real MacBook in every sense of the word. It has a FaceTime camera, a dual-core processor, and fast graphics to drive ultra-high resolution displays. And when you connect it to a 27-inch cinema display, you can power almost 4 million pixels of image. We custom designed every part of this product from the enclosures to the use of flash, the design of our main logic boards, the stereo speakers. Every single part is designed to fit in a certain way in a certain place in the product and give us a really tightly integrated kind of design.

We set a really high bar for what people should expect a Mac to be. You get incredible displays, you get fast CPUs, you get great flash storage, you get great graphic performance. All that's something that's really small and light and really affordable. It starts at just $999. And that's a breakthrough to take our latest technology, this incredible quality of the aluminum or glass, these super thin designs, all of this amazing value, and it's our most affordable Mac ever. It's really the future of the notebook. I mean, our learning just keeps building from one product to the next, to the next. That's absolutely the case here. Years and years of designing such a range of different products enables the design of the new MacBook Air.

We're really proud of this. We want you to get your hands on it, so we've got a hands-on room set up right across the way here for all of you to be able to go touch one of these and use one of these yourself, and I think you're going to be pretty amazed. We certainly are, and we hope our customers are. So there's a lot of stuff to cover this morning. We really appreciate your coming, and we'll see you over in the hands-on room as we get back to the Mac. Thanks very much. You