Steve Jobs on Tiger: Spotlight and the 30-Inch Display

Good morning. Welcome to San Francisco. Welcome to San Francisco and Apple's 2004 Worldwide Developer Conference. We're really happy to have you here. There are 3,500 registered developers here. That's a 17% increase over last year. Thank you. We've got developers here from all over the planet, from 44 different countries, countries I didn't even know existed.

There are developers here from, so it's really great. And we've got 200 sessions here over the course of this week for you on everything having to do with OS X, both the current stuff and the new stuff you're going to hear about today. So we really hope you take advantage of all these sessions and learn about some of the great stuff that we've been working on like crazy since the last time we met here last year. So I want to give you a few updates and then we'll get into the heart of the matter today. First thing I'd like to talk about is Apple Retail. You know, we started three years ago. We opened our first store three years ago last month. And today we have 80 Apple Retail stores. Now, this is pretty great, but it's really great for you guys because we've got 20 million customers a year going through these stores, 20 million visitors a year looking at our collective products.

And we sell a quarter billion dollars of third party products like yours every year now. So if you've got a great product and we're not carrying it in our store, we're both losing. And let's talk, because we're selling over a quarter billion dollars worth of products like yours in our stores every year now. These are some of the stores we've opened since the last time we've met. This is Chicago on the Miracle Mile, downtown Chicago. We've opened a lot of stores and malls that look like this all across the country. Here's a store about 20 miles from here in Walnut Creek that we opened since we last met. Here's our San Francisco store. This store is three blocks from here. So I hope you have a chance to visit it while you're in town. It's a great store. And here's our Tokyo store. This is sitting on the 50-yard lines of the Ginza in Tokyo. Six-story store. So that's a little bit of what we've been up to with Apple Retail since the last time we met. Now I'd like to talk about music. I hope you're all familiar with the iTunes Music Store. The iTunes Music Store has a 70% market share of legal downloads. And we started off in the U.S., but a few weeks ago we introduced in the U.K., Germany, and France. We got off to a stunning start there. We're now the largest online music service in Europe, our first week there. And all of these countries represent about 62% of the global music sales. So we're doing really well, and we're thrilled to be in Europe. So we're clearly the most popular place to buy music online. We've been spending a lot of time also thinking about the most popular places that people want to listen to music. And of course, there's the computer, and we

support up to five of those with music you buy off the store. And of course, there's iPods, the number one portable digital music player in the world with over 50% market share as measured by units, even greater as measured by revenues. And then we've been focusing a lot on the living room. A lot of people want to play the music that's in their computer on their stereo, as an example. And we introduced a product a few weeks ago called Airport Express with a collection of technologies we call AirTunes. This is rendezvous for finding the stereo. And this is it. This is an 80211G base station built into a power brick. You just plug it into the wall, and it's got ethernet to hook to your broadband connection. It's got a USB port to hook to your printer, so you can print wirelessly from your notebook right on your inkjet printer. And it also has audio out, both analog and digital. It's got analog audio output. It's got digital audio output on a fiber optic cable, so you can plug it right into the TOS link of your stereo, get 5.1 surround sound if you want.

It uses lossless data compression over the airwaves, so you lose no quality. And it's encrypted so the labels like it. And it is seamlessly integrated into iTunes. This is the key. And so now, if you've got a computer in one part of your house, let's say your den, and you've got a stereo in the living room, they can automatically find each other, and you can stream music from your computer to your stereo, to your Airport Express base station, and then into your stereo. If you've got another stereo in the kitchen, no problem. Just select it, and you can stream music to it as well. If you've got a PC in your office, let's say, you've got a portable PC, again, it works the same way. As long as it's running iTunes, it's got all the technology in it to be able to use Airport Express. Now, the beauty of this is that it's linked in intimately with iTunes. So when iTunes detects any Airport Express with its audio output jack plugged in, it automatically puts a pop-up menu on the bottom that says computer, since you're normally listening to your music on your computer, but you can pop this up and pick any other base station you can give any name to, like living room or home theater, and stream your music automatically to that computer. There's no setup, there's no configuration, there's no nothing. Airport Express with AirTunes for Mac or PC, ships next month for $129. So with Airport Express, we think we've got the living room covered. So that's pretty cool. But another place we listen to music a lot is our automobile. And just last week, a week ago, we introduced the first big breakthrough in how to mate pod with car. And that was with BMW, and they announced that for their

3 Series, their entire 3 Series, their X5, their X3, their Z4, and their Mini Coopers, we are now offering a solution together which is terrific to mate your iPod to your car. Here's what it's like today. You know, you get an adapter, it works. You get an adapter with your iPod and then you plug it in through a cassette adapter or whatever you can. We want to eliminate all this. And the way we do it is with a special adapter that you can get factory installed or dealer installed, excuse me. And it just puts a cable right in the glove compartment that you plug right into your iPod. And that single cable provides power to the iPod. It takes the audio out and puts it through the stereo and it provides control. And you tuck your iPod safely away in the glove compartment and you control the music through your steering wheel. Your volume control, previous song, next song, previous playlist, next playlist, all through the steering wheel. And this is terrific. And you see the song on the display. So, this is a really great first start. We think there's a lot more coming to mate iPod with car. Now, so you guys can have some fun. We got BMW to bring a bunch of their cars here. They're going to be out in the lobby. You can hop in. You can't drive them, but you can hop in them and check out the iPod at your leisure in the lobby. So, we think we've got the most popular places now to listen to music with, of course, the computers, Mac or PC, iPods. And now, a first big step in the living room and a first big step in the car. So, we made a little video to kind of wrap everything we're doing in music together and I'd love to show that to you now. So, let's go ahead and roll the video.

So, let's go ahead and roll the video. So, let's go ahead and roll the video. So, let's go ahead and roll the video.

So, let's go ahead and roll the video. Oh He's a walkie talkie Oh So we got a lot going on in music. Now I'd like to talk about the Powermac. We just introduced a new line of Powermacs a few weeks ago as well. Two and a half gigahertz. So we've got dual processors in every single model of Powermacs now. Of the two and a half gigahertz G5 processors,

up to 1.25 gigahertz front side bus. This is super important because this is how you move information in and out of the processor, which is oftentimes far more important than the actual processing speed of the processor itself. And, you know, the fastest our competitors offer is 800 megahertz. We're at 1.25 gigahertz and it's incredible, plus you have two of them. 8X SuperDrive starting at 1999 for dual processor system. So these are the new Powermacs. Now I want to talk about two and a half gigahertz because I stood up here a year ago and said we'd have three gigahertz within a year. What happened? What happened was the G5, as you know, is a very complex chip. And in the semiconductor industry, to make things run faster, they traditionally shrank the geometries. And so the PowerPC was being made in 130 nanometer geometries. And in the last year, the semiconductor industry has gone from 130 nanometer to 90 nanometer expecting everything would just get faster. No problem. It hit the wall. The whole industry hit the wall at 90 nanometer and it's been a lot harder than people thought.

And so the speed increases have been very small compared with what we've been used to for the last five years. And IBM's done really well relative to the rest of the industry, but less than we all hope. So let's take a look. Two biggest technologists in 90 nanometer, Intel and IBM. A year ago when we stood here and you sat here, 3.2 gigahertz was the fastest Intel processor money could buy and we just introduced two gigahertz on our PowerPC G5. Intel had a 3.4 gigahertz release during the course of the year. And just this last week, they introduced 3.6 gigahertz. And just a few weeks ago, we introduced 2.5. So everybody's showing their cards within the last week or two and here's what they are. And take a look at this. Intel's gone up 12.5 percent in a year and IBM's gone up 25. So we're not thrilled about missing 3 gigahertz. But we are pleased that the PowerPC has increased its performance twice as fast as Intel as the entire semiconductor industry has had a tough time with 90 nanometer. Now, in addition to going up twice the level of performance that Intel has over the last year, we give you two of them. And so we think the PowerMac is an incredibly high performance system, the highest performance system that you can buy. And we'll keep striving for that 3 gigahertz. One of these days, we'll make it. But we're doing pretty well relative to the rest of the industry. Now, to go with PowerMacs, it's now time to talk about displays. Apple has the best displays in the industry bar none.

Our competitors buy the panels we reject. It's true. And so for viewing angle, color purity, they are the best in every respect. And we make a 17 inch and we make a 20 inch and we make the industry leading 23 inch cinema display. This is the hottest display in the industry. And today, we're going to announce a completely new version of the 23 inch Apple cinema display. And it looks like this. A little bit smaller, same exact panel size, improved panel in a dramatic new enclosure. It's in an aluminum enclosure that matches the PowerMac. It's got a one piece aluminum stand that is just drop dead when you see it. And the quality is phenomenal on it. Take a look at the bezel. We've managed to get rid of a lot of stuff around the edges and really hug the displays with these new aluminum bezels. Take a look at the back. The back of these displays looks better than the front of most of our competitors. And we've built in four connectors. We've got dual USB 2 ports and dual FireWire built into the displays. So, we've got FireWire and USB 2 hubs built into the display. And you notice we only have one cable coming off the display. It has all this stuff in it. And the other end of that cable splits into four different connectors,

DVI, USB 2, FireWire and power. And yes, you heard right, we are going to DVI for this new generation of displays. Which means, which means they ship with a power brick and just plug it in, plug it in the wall and you're powering your display off this little power brick. It also means that these displays work with Macs and PCs, any PC with a DVI connector. And more importantly, right out of the box, they work with your power books. So, these are phenomenal displays. And we have a younger brother to the 23. We also have a 20 inch display, same exact quality, same enclosure design. And these are the two displays we have here, the 20 inch and the 23. They all are at a hundred pixels per inch, $1299 for the 20, $1999 for the 23. And they will both be available next month in July.

Now, on the display side, we do have one more thing. And I think today is going to go down as a huge day in the history of big. Because today, in addition to our 20 inch and 23 inch, we are announcing the largest high resolution computer display ever, a new, a new 30 inch cinema display. 30 inches. So, this thing has a resolution of 2,560 pixels by 1600 high.

That's 4.1 million pixels for those of you that multiply fast. 4.1 million pixels. This is 77% more pixels than the 23 inch cinema display, which is, until today, the industry leader. So, this is what you would see on the pixels of a 23 inch. This is what you see on the 30. 77% more pixels. It's unbelievable. And it's in the same all aluminum enclosure, the same one piece aluminum stand, the same fire wire and USB built in. And this display is going to sell for $3,299. And it's going to be available in August. Now, this display only works with the Power Mac right now. And it only works with the Power Mac because we've had to engineer an entirely new graphics card to drive it. No graphics card could drive a display with this many pixels. And we've worked with NVIDIA and we are driving it with the GeForce 6800 Ultra graphics chip. It's a new, it's a graphics card. It's a new graphics card. Yeah, I know. And this graphics card features a new technology because one DVI connection isn't enough to drive this display. So, we needed two. It has what's called dual link on it, which is two DVI connections running in parallel. Because one DVI connection would only give you that. And so, we need two to fill up the display. But it's even cooler.

Because we didn't just stop at one dual link. This card has dual dual link. And so, you can have 8 million pixels of one Power Mac. 8 million pixels being driven off one Power Mac and the really tiny bezel width comes in real handy when you put these things together. So we think we're going to be able to satisfy our creative professional customers for a little while with these new displays. 8 million pixels. The NVIDIA graphics card is going to cost $599, it is also going to be available in August and so these are our three new displays, 20, 23 inch and 30 inch.

The 30 inch requires the new NVIDIA graphics card as well and 1.7, 2.3 and 4.1 million pixels, of course that can be 8.2 if you want to drive two displays. It's really pretty amazing and so what I'd love to do is show them to you now. So could I bring up the 20 and the 23 inch displays please? You'll see them throughout the conference but I wanted to get you to have a first look right here. They're really beautiful.

And let's go ahead and bring up the 30. We used to dream about this stuff, now we get to build it. It's pretty great and the quality of these displays is better than anything we've ever built and better than anything else in the market and I think when you get a chance to see one you're just, it blows your mind.

First time I saw one of these I couldn't talk for the first minute. All right, our new displays, let's take them away. So we've got our 20 inch, our 23 inch and our new 30 inch displays, amazing. Now I'd like to talk about Panther, switch gears, let's talk about software. Panther we introduced a year ago, we shipped last fall with an amazing collection of new features and Panther was extremely well received, critically best reviews we've ever had. This is one from business week with this latest revision I think OS 10 is the best operating system available to consumers.

It's easy to use and takes far more advantage of the power of today's computers than the eight year old design of Windows. That was business week a year ago. In addition to the critical reviews, Panther is the most successful release in Apple's history, most successful OS release both in units and revenues that Apple's ever had. 12 million people now use OS 10, 12 million that's half of our installed base. There's no other OS release in the world that's new that has half of its installed base using it, it's huge. And we have 12,000 native applications and more coming every day, a whole bunch being introduced here at the conference this week.

So thank you, thank you guys. And we can now say that the transition to OS 10 is over with half our installed base using it and 12,000 applications. It's been a lot of work for us and for you over the last four or five years. Thank you. The transition is now over. Now this is an amazing accomplishment and I think it's worth it to step back and reflect on this just for a minute because this is very rare in our industry. Matter of fact, in the entire history of the PC industry, there have only been three major OS transitions ever. Let's look at them. The first one was in the 80s, right?

The Apple II to the Mac, the original Mac OS, took years, started in 1984. Next, a decade later when Microsoft finally copied the Mac well enough, DOS to win 95, right? Started in 1995 and took several years. The third transition started this decade, early in this decade and we can now say that it's over. Mac OS to OS 10. And there will be an attempt at the fourth major transition in our industry, which will be win 95 and its successors to Longhorn, which is quite a bit different. Their Mac OS to OS 10 transition equivalent, starting in 2006 or 7. And you know, it's a lot of work.

So we've just completed the third, only the third transition of OSs in our entire industry and I think we should all take a moment and just pat ourselves on the back because it's an amazing accomplishment. The transition is over. Now I want to go back to the 12,000 native applications today and I want to just mention a few. Number one, got to start off with Microsoft Office. Microsoft introduced a new version of Office not long ago, Office 2004 and it's great. As a matter of fact, most of the reviewers are saying it's better than their Windows version. And I ran into Bill Gates, had dinner with him at a conference a few weeks ago and he told me that his company feels that their relationship with Apple is better than ever. And I told him our group feels the same way. The Mac business unit is doing phenomenal work and we couldn't be happier and you ought to check out Office 2004.

Now also at the conference, Borland is introducing their Java development tools on OS 10. Quark recently introduced QPS, Quark Publishing System on OS 10. Oracle is introducing 10G, the grid version of their database on OS 10 this week. PeopleSoft is certifying all their apps on OS 10. I've tried to get them as far apart of Oracle as I could on the slide. And Sun is introducing their Java development environment on OS 10 as well. So tons of stuff is getting introduced this week. I want to highlight a few of them though and I want to start off with Alias. Alias has recently spun out from SGI. They're their own company now.

They dropped the wave front, got a new logo. And it's my pleasure to welcome on stage Bob Bennett, the general manager of Alias, who's going to tell us about some new developments. Welcome, Bob. Thanks, Steve. Did you see 8 million pixels? Yeah. Oh my God. Fill them up. Unbelievable. Where is that damn thing? Listen, when Alias first announced that Maya Complete was coming to OS 10, you know, we weren't entirely sure how the market was going to respond. But today I can tell you that the Mac represents a huge part of our business. In fact, 25% of our worldwide sales of Maya Complete are now on the Macintosh. Plus the run rate for Maya is at a high point. So based upon that success, three to four weeks ago, we introduced another product for Mac OS 10.

This is Alias Sketchbook Pro, a sketching application. And the results have been electric. 70% of the downloads now are for the Mac and we've actually tripled our run rate. Which brings me to today's announcement. Maya Unlimited is coming to Mac OS 10. Maya Unlimited contains Alias's most advanced computer graphic technologies, including Maya Cloth, Maya Fur, Maya Hair, Maya Live, and the incredible Maya Fluid Effects. This is the exact same technology that has been used to create such blockbuster films as Lord of the Rings and great games like Final Fantasy and Gran Turismo.

Now to create this product, we're using the same Apple developer tools that are available to you, including OpenGL, Quartz, AppleScript, and our favorite, the incredible Xcode developer environment. So watch for Maya Unlimited for Mac OS 10 late summer, this summer, and I'd like to commit to you that Alias will continue to work on the best computer graphic applications for the Mac creative community. Thank you. Next up, Myst 4 Revelation is a new game that's going to be out this fall and it's coming out simultaneously on the Mac and the PC, and it's really great, and it's my pleasure to invite Karen Conroe from Ubisoft on stage to give us a little sneak peek.

Thanks, Karen. Thank you, Steve. Over a decade ago, Myst catapulted the world of computer games to the forefront of consumer entertainment when it launched exclusively for the Mac in September 1993. In honor of our rich history together, it's my pleasure to present to you... you today the first interactive demo of Myst for Revelation, reaffirming Ubisoft's commitment to the Mac platform and showcasing the advanced capabilities of OS X. Let's take a look. Myst defines the adventure game genre with its opulent landscapes and devious puzzles. And by adding dynamic elements that you see here, the clouds in the sky, the water, the trees, we've taken it to the next level in creating living, breathing worlds. In Myst IV, we return to the roots of the story to unravel the mystery of two troubled brothers. The room we're entering now belongs to Atrus, the father, a key protagonist in the series. As you can see, we've leveraged the advanced capabilities of OpenGL on OS X to create rich and detailed environments.

Now, Myst is famous for its puzzles, so let's see if we can find one to solve in the fireplace. But wait, what's this we see on the floor? You see an amulet, and it plays a clue in flashback. Myst IV features over 70 minutes of fully integrated high-definition video to tell the game's story. So let's solve this puzzle. And for Myst fans, I want to reassure you this is a demo puzzle, not a spoiler. And by the way, this product's gorgeous soundtrack will feature original composition from Peter Gabriel.

And now, with the puzzle solved, players gain entry to the linking chamber, their portal to the amazing new worlds of Myst IV. Thank you, Ron. Today, we've just scratched the surface of what Myst IV Revelation has to offer. Thank you. So we're really looking forward to this. Next up, an app called Guitar Rig that's based on audio units, a technology that we rolled out in OS X that is super-precise audio capability at the core of the operating system. Really low-latency audio, very professional quality, and people have done amazing things, and Guitar Rig is one of the coolest. And it's my pleasure to welcome Daniel Haver, the CEO of Guitar Rig, on stage to show us. Thanks, Daniel.

Thank you so much, Steve. Hello, everybody. It's great to be here straight from Berlin. And with me is Joe Gore. Joe is a professional guitarist and former senior editor of Guitar Player magazine. And on the screen, we see Guitar Rig loaded into GarageBand as an audio unit plug-in. Of course, Guitar Rig can be loaded into any other audio unit host as well, and it's also running standalone. But let's hear something. Guitar Rig is a complete virtual guitar studio containing a huge range of the most excellent guitar gear. Straight out of the box, it comes with a huge selection of presets ranging from jazz to blues, from rock to metal, and even contains a hardware foot controller, which Joe is using right now to step through the presets. And what he's going to give us now is something a little more heavier. How about a lo-fi sound? Do that. Talking about Guitar Rig means maximum flexibility.

You can exchange about everything in the signal path that you like. You can exchange the amplifiers, the speakers, the microphones. You can drop in your very own effects to create your personal custom tone. Another tone would be a jazzy one. Guitar Rig sounds incredibly realistic. It has the feel and response of analog gear, thanks to Core Audio's incredibly low latency. And Native Instruments has positively nailed the tone of all that great vintage gear. Guitar Rig means most excellent sound quality, perfectly suited to be used in your studio or live on stage.

Guitar Rig has just started shipping and is now available in a music store near you. Thank you so much for your attention and bye-bye. Thank you, guys. Next up is a small developer with an application called Orbit, which is really cool. We wanted him to come up and show this to all of us because it's so great. So it's my pleasure to welcome Aaron Anderson, the president of Orbit, up to show us his cool app. Good morning, ladies and gentlemen. I'm thrilled to be here today and introduce our new software application to you.

Orbit is a satellite simulator. It predicts the motion of satellites using industrial-grade orbit propagation algorithms. What you see on the screen is a simulation of over 650 actual, unclassified satellites with current data from NORAD, Earth imagery from NASA, and political boundaries and coastline data courtesy of the United Nations. The simulation is running 200 times faster than real time. The green lines show a satellite network and the blue lines show radio ground links. The ellipsoids on the surface of the Earth show the ground coverage of a number of satellite antennas.

Though the satellites themselves are drawn as simple points, the calculations for predicting the positions of these satellites are fantastically complicated. Just a few years ago, these computations required a defense-budget supercomputer. But as you can see, the modern G5 just crunches through them. The awesome combination of the PowerPC architecture and Mac OS X technology, such as OpenGL, Cocoa, Darwin, and Java, are ideal for high-performance engineering and scientific application software. And the Apple platform, without question, is the ultimate development environment. I wrote Orbit by myself, though I hate to admit it, in about three months with Xcode and a PowerBook G4.

And by the way, if any of you are interested in satellites, there will be a screensaver version of this software called FreeFall available soon from our website and apple.com. Thank you and have a great time at the conference. Thank you, Aaron. You know, this represents why we all do this, so that people can go off and do these incredibly innovative apps and not need a team of hundreds of people to implement them. So thank you. So these are just a few of the 12,000 native applications we have for OS X. We're getting more every day.

And Panther has been a phenomenal release to trigger all of this and to really drive us to complete the transition to OS X. But starting today, our focus is on something else. Our focus is on the next release of Mac OS X, which is called Tiger. Tiger is the fifth major release of OS X, following Cheetah, Puma, Jaguar, and Panther. Tiger is going to ship in the first half of 2005. So we're showing it to you a little earlier than we've showed you prior releases like Panther last year, which shipped in the fall. But we want to get it in front of you and we want to show you what our thinking is and we want to get you started to incorporate some of the amazing technologies you're going to see here today in your apps.

Now, with Panther, with OS X in general, and particularly with Panther, we have leaped ahead, leapt ahead of our competition. And Apple is now, again, the innovator in personal computer operating systems, and everyone else is following our taillights. And other people are trying to madly copy Panther in their next release of their operating system. And we're having a bit of fun with that outside in the lobby. You can see some of the posters on your way out. But we think Tiger is going to catapult us even further ahead and drive the copycats a little crazy. Because there are over 150 new features in Tiger.

Some of them are just groundbreaking as you'll see here today. So, Tiger, let's get started. We don't have time to go through 150, but I want to show you about 10 of the new features. First of all, of course, Tiger is OS X. It's Unix-based, and OS X is the number one Unix in the world by volume, by unit shipments. Number one. And in Tiger, the biggest request we got was for 64-bit. And so Tiger is going to deliver on this. In Tiger, you can have 64-bits in any process you want. Any process can be a 64-bit process. We have a 64-bit system library. You can run these 64-bit processes right alongside 32-bit processes.

And we have industry standard LP64 support in GCC. So 64-bit processes, if you need to address a lot of memory, whether it's for giant images, animation, scientific calculations, database, you can have 64-bit processes now in any process you want in Tiger. We've also added some other things that people have asked for, some better fine-grain locking for better SMP performance. Access control lists have been a big request. And we've built in XGrid. And these are a few of the many, many things we've done to keep our Unix one step ahead of the rest of the world and continue to remain the number one Unix system. But we also have to play in a Windows world. And we are constantly trying to make OS X a better citizen in that world as well.

And so we've enhanced Tiger to give much better SMB performance, SMB home directories, authentication with Kerberos and whatever that is. HTML email composition was a big request. And another big request is TextEdit is now going to support Microsoft Word tables, which is a big request. So a lot of things to make us an even better citizen in the Windows world. Now I'd like to talk about what I think is the most revolutionary feature of Tiger. It is going to be a revolution. And we think we are years ahead of Longhorn. The other guys have been talking about it. We've been doing it. And we're going to show you it today. And that is search.

Now what's all the big deal about searching? Well, you know, we started off in 1984 with this great metaphor of you put things in file folders. And a few years later we all had a lot of file folders. Now we have a zillion file folders and you can't find anything. It's impossible to find anything. It's easier to find something from one of a billion websites on the web with Google than it is to find something on your hard disk. Right? So we have to solve this. Well, how do we solve it? We realize we already had solved it. We already had solved this problem. We solved it in iTunes. You can find a song by its title, by the artist's name, by the album it's on.

You can find one song out of thousands or even tens of thousands of songs in a second just by typing it into the search field of iTunes. Boom. Live searching happens in an instant. We already had solved this problem. What we had to do was apply this to the entire system. And that's what we have done. And the technology we've developed to do that is called Spotlight. Spotlight search technology. And here's the kinds of things you can do with it. You can ask the question, Well, let's find the keynote presentations from Phil that I opened last week. Right? And boom. They'll pop up. Find all my WWDC planning documents. Boom. They'll pop up. Give me all my CMYK images at 1200 DPI for a particular client.

Boom. They'll pop up. Stuff we've never been able to do before. Spotlight is really fast. It's architected super cleanly. Just like iTunes. It's automatic. It supports all standard file formats and metadata formats and it's extensible. So you can adapt it to yours if you're doing something a little off the beaten path. And it works with all current apps. You can search the documents of the apps you already own. You don't have to go buy new apps. It works with all the current apps. And so we've taken the first thing we've done is we've taken the Spotlight technology and we've integrated it in to apps. Right into the Finder, to Address Book, to Mail, and to System Preferences. And so to start off with Spotlight, I'd like to give you a demo of what we've done with these four apps.

And what you can do with your apps. So let's go ahead and bring up the Finder. Now, on the system here, we've loaded over 100,000 files. So I have over 100,000 files in the system. And I'm just going to go ahead and search for something just in the search field right here. I'll just go search for Pixar. Boom. Found 48 items here instantly out of 100,000. And you notice that Pixar isn't in the title of most of these. And there's no information that says it's Pixar. It turns out it picked it up in the copyright information. There's some metadata on these files that says they're copyright Pixar. Boom. Picked it up. Matter of fact, it even has the year. So I can say Pixar 2002. Those are the files that have something to do with Pixar in 2002. Pixar in 2003.

Boom. There we go. And I can click any one, obviously, to go right there. It's that simple. Let me go ahead and search for iMac. Boom. Finds 53 items for iMac. All different types. Right in the Finder. And I want to go ahead and refine the search because I just want presentations, let's say. So I push this little plus button over here. And it says Kind Any. And I can just say Kind Presentations. Boom. Those are the presentations. Kind Movies. Got a lot of movies here. Or I can say Kind Images. Boom. And I want to refine this even further. And I can say, you know, I last viewed, oh, you know, today. No, one was last viewed today. How about this week? Those were viewed this week, whatever.

But I don't want to do last viewed. I want to do color space. And I'll do CMYK. These are the CMYK files and images having to do with iMac. That easy. Not so bad. Now, let's say I want to reference these files a lot. And I'm going to be adding and subtracting them. And I want to keep track of them. I can just save this query by pushing this button as a smart folder. And I'll put iMac CMYK. Boom. And now I can do other things like this. And I can always go back here. And, boom, the query is performed. I get up-to-date results. I just have a smart folder right in the Finder. So this is all using the Spotlight technology. It was very easy to build into the Finder like this. And let me then go show you Address Book. We've built it into Address Book as well.

We all know and love Address Book. And now we can search for Paris. And it will find everything having to do with Paris, some restaurants, some people, et cetera, et cetera. Now, I want to go ahead and create a group for this. So it's very easy to do that. I can just create a smart group here. And I'll name it Paris. And the card contains the word Paris in this case. And now I have a smart group for Paris. That's simple. Let me make another one, though, that's pretty cool. I'm going to call it Birthday. And we'll say that the birthday is in the next seven days. And it takes the Birthday field, which we're adding to Address Book. And now I've got everybody's birthday in there that's going to happen in the next seven days, a smart folder that's always up-to-date.

I can go back here. And I'll add another B card in here, which happens to have a birthday this week. Oh, eight new cards. All right, go ahead and add them. And you see Birthday highlights here because it's changed and it's added a new person right there. So that's what we've done with Address Book. Now let's go on to Mail. This is Mail. I have over 50,000 e-mail messages in about 18 mailboxes on the system right here. And so let me go ahead and search for something. Yosemite, boom, that fast. I've searched every mailbox that I have, over 50,000 e-mail messages, and just came back with these four having something to do with Yosemite. And if I want to make a smart mailbox, again, I can just go up here and say New Smart Mailbox.

And I will say Yosemite. And let's see, I will say Entire Message Contains Yosemite, boom. And I've now got a mailbox over here called Yosemite, which is going to have this stuff in it as mail messages come and go, always up to date, using the Spotlight search technology. Now I'd like to show you what we've done with System Preferences. You notice on System Preferences we've simplified the app by taking out that Favorites bar at the top where you might put your favorite panels. We've done something a little nicer with Spotlight technology. Let's say I want to change something on my keyboard and I can't remember where it is. I just type right there, boom.

And as I go through these things, it will show me where I want to be. And I push one, boom. Keyboard shortcuts, wherever it is I want to be, boom. Right there. Very, very easy. Let me find another one for you here. Let's say I want to change my desktop picture. So desktop, I've got Apple Remote Desktop, Dock Position, Screen Saver, boom. Just go right there. Now another thing we've done is we've built in, a lot of people are switching from Windows to Mac at any given time, and they have different words in their heads. Like they don't think of desktop pictures, they think of wallpaper. So, of course, wallpaper. Start typing it in, you get desktop picture right there. Takes you to exactly the same place.

Also, let me type in airport. And again, I can get various things with airport, but I can also type in Wi-Fi, get the same stuff, or even 802.11, get the same stuff. So it's really smart about this. It's going to help people find stuff. A good example of using Spotlight technology in existing apps to make them dramatically better. Again, you can do this in your apps, too. You can integrate this technology right in. So we've seen Spotlight now integrated into apps, and it's really cool.

But what if I want to do something like this? Give me everything about Bertrand. Any documents I've got, any mail messages, his contacts, any calendar events I've got scheduled. I'd have to go to all these apps, and even though it's really fast within each app, I still have to go to three or four apps, five apps, to check everything out. Wouldn't it be great if I didn't have to do that? So we've done that. We've built Spotlight in system-wide. And so what we've done is on the menu bar, you notice on the upper right-hand corner, we've built in a little magnifying glass button right into the menu bar. And let me show you what this does. So I go over here.

I go over here, and I click this, and I get a search field. And now I'm going to just type in Paris, and boom. I get a pop-down list of all sorts of things, of contacts, of images, of mail messages, of movies, right? Boom. Now, if I don't find what I'm looking for, this says there's 94 things in total. I just click on this. Whoops. Oops, sorry. Let me try that again because I typed something in when I did it. Paris. Show all 94. Boom. It comes up with this window, and it shows me everything. All my contacts. I've got 12 more here. Just show the top five. My images. I can look at them, again, like this.

See the five more if I want to. Just show me the top five. My mail messages and my movies. And I can sort by kind, which is contacts, images, mail messages, and movies. I can sort by date, today, yesterday, last week, last month. I can sort by people. And this is the sources of all of this stuff, depending on where it came from. Feeds, people's names, you name it. So I can sort it however I want it to find something. And I can sort it by date. I can say any date. Show me the stuff today, since yesterday, whatever I want. Very, very simple. A really effective way to find anything in the system. Of course, I can just type stuff in up here as well. So let me go ahead and do that. Let me type in tiger. And here I've got a bunch of stuff by tiger. And, again, I can sort by date.

And here I go. Very, very easy to use. Now I want to show you something really cool. I want to, yeah, I'm going to search for Half Dome. Boom. Just did a Half Dome search throughout the whole system. And I'm going to go to a map. I've got a PDF document of a, looks like a map of Yosemite. And it's going to open preview and show me this PDF document when I click on it. And you know what? This thing wasn't tagged with Half Dome. The Spotlight found Half Dome written in little tiny letters in this PDF file. And automatically indexed it. It does stuff like that. It's full content index of the content and the metadata. It finds stuff that you would never be able to find by hand. Automatically indexes it and finds it that fast. Make sense?

So this is the amazing Spotlight technology. And we think it's going to really revolutionize how we use computers. A lot of us are never going to use the Finder again. We're just going to go right here to find anything. You can find apps. You can find contacts. You can find preferences. You can find anything in there. All throughout the system. All automatically works with today's apps. All works with today's documents. And we're putting an SDK in your hands today. So you can integrate it into your apps if you want to. So that is Spotlight. We think this is years ahead of where the other guys are. Okay.

Next up. An amazing new technology called H.264. H.264 is the next generation of video. It's a standard that's come out of the MPEG group, the people that brought us the DVD standard, the people that brought us MPEG-4. This is the next generation of MPEG-4. And it is stunning. It's so great that it has been ratified to be a standard for the next generation of DVDs, the high def DVDs. So H.264 is going to be in every high def DVD player. And we are adopting it as well. It is super high quality and really efficient. It's a scalable codec. The first time ever one codec will scale from high definition video all the way down to 3G cell phones.

Never before have we seen this. It's been ratified as an industry standard. It's been adopted for DVDs, for the high definition DVDs. It is non-proprietary and open, which we like. And we're building it in to QuickTime in Tiger. So that not only can you get this, but you're going to be able to get this over the same bandwidth. And it's my pleasure now to invite up Frank Casanova, Senior Director of Product Marketing, to show us H.264. Frank? Thanks, Steve. Hey, guys. It's my pleasure to show off this incredible new codec. Check out what we can do.

On this screen, I have two video clips. Same piece of content, same data rate. The difference is the codec we're using. On the bottom right, we have today's MPEG-4 video codec, the same MPEG-4 that we've shipped over 250 million copies of in QuickTime 6. On the upper left, H.264. Brand new codec. The efficiency of this codec allows us to get four times the resolution at the same data rate. So let me play this. Check this out. The greatest warrior. The killings can't be controlled. Be careful, King of Kings. First, you need victory. I won't ask you to fight my war.

You already have. The loser will burn before nightfall. Immortality. Take it. It's yours. No son of Troy will ever submit to a foreign ruler. Then every son of Troy shall die. This codec is going to change everything. The efficiency of this is absolutely incredible. But Steve did mention incredible scalability as well. From 3G mobile multimedia for these incredibly cool handsets up to and beyond HD resolution, this codec can do everything. So let me launch an HD image. Our dual G5s today can play back H.264 encoded content at HD resolutions without a problem. 1920 by 1080, 24p, without an issue at all.

We've encoded the same content at 6 megabits per second. Now you might be saying to yourself, isn't that the same data rate that DVD does standard def? If you did, you'd be right because it is. At the same data rate as today's standard def, we can generate a high def image. And that's what I want to play today. Keeping in mind that we have the best projectors in the industry for these keynotes, but nothing compares to looking at this content in one of our cinema displays. It's absolutely breathtaking. Check this out. I've fought many wars in my time. Some fought for land, some for power, some for glory.

I suppose fighting for love makes more sense than all the rest. Do you love her? Father, you are a great king because you love all of Troy. That is the way I love Helen. I want her back. Will you go to war with me, brother? They're coming for me. The wind is bringing them closer. This incredible codec isn't afraid of anything. Bright whites, dark blacks, fast motion, Windows Media, bring it.

H.264 in QuickTime in Tiger for you guys. Thank you very much. I don't know which is more remarkable, H.264 or Frank's sweater. So H.264, it has been adopted. It's going to be in every high def DVD player in the world starting in a few years. And it's going to be in Tiger starting the first half of next year built into QuickTime. Next up, Safari. I hope you love Safari as much as we do. Safari is a great browser. And it's always been at the cutting edge.

But we're going to take it a step further today, because there's a new thing happening on the web that most of you know about called RSS, which stands for Really Simple Syndication. This is how web blogs are published, and there's a lot of RSS feeds now on really popular websites. And what this is, is you go to a website, let's say you go to Apple's website, Hot News, and you see the stories there. Well, in addition to watching them on a web browser, Apple, along with a bunch of other sites, offers an RSS feed where you can get all the data off that site and format it any way you want, search it any way you want. These are some of the websites that offer RSS feeds today. New York Times, National Geographic, Yahoo, Business Week, tons, thousands.

And so we are building RSS right into a new version of Safari for Tiger called RSS. Safari RSS. We're building it right into Tiger. It supports RSS and Atom protocols. It automatically detects RSS offerings. So if you're on a site and there's an RSS feed, it'll tell you like that, and you can go check it out. We also have a personal clipping service. Wouldn't it be great if you could look at tons of RSS feeds together and search for a particular topic that you're interested in, and it could aggregate all the results in one easy-to-view place? That's what the personal clipping service of Safari RSS does. And you can store queries as bookmarks, so you can go back and check these things again and again and again. So let me go ahead and show this to you.

Safari RSS. Okay. Let's bring out Safari. And here is the Safari we know and love. And I'm on the Apple website. I'm going to go to Hot News right now. And when I go to Hot News, you'll see this icon up here pop up, this RSS icon that tells me, hey, this site offers an RSS feed. When I push the button, there's the RSS feed. I can look at it as a website. I can look at it as an RSS feed. And, again, I can just pick a story if I want to. I can go over here and look at the article length. I can get the article length to be whatever I want. I can sort by date or title of the article or source of the article. In this case, they're all from one place. And I can just pick an article, like iChat at 35,000 feet.

I don't know if you've seen this, but somebody brought up a PowerBook. Using airport on a plane at 35,000 feet, one of these new planes, it was a Lufthansa flight from San Francisco to Munich that's got this new high-speed Internet connection. So at 35,000 feet and inside the plane using airport, they were doing a video conference, the first one, we think, in the world. That's pretty cool. But, again, here we are looking at the Apple Hot News site a different way as an RSS feed. So let's go now to The New York Times. Again, here's The New York Times today. We know how to look at it as a web page. But, again, an RSS feed. Here's The New York Times site as a RSS feed. There we go. And there's all the stories right here. And that's pretty cool. Now we can also, even iTunes has an RSS feed.

We can go to iTunes and see the top ten songs at any time. Very easy. You can select a song, you know, pick one. And it takes you right to iTunes and you can play it. Very, very easy stuff. Now, it gets interesting because you can group feeds together. So I can say here, this is about tech right here. And I can go to any one of these sites that has an RSS feed or I can open in tabs. And, boom, I've got all of these RSS feeds now at my disposal on tabs. And this is pretty cool. But there's something even cooler. And let me show you what that is. Let me go ahead and put these tabs away.

I can go up to the search field. We've added a new search field in here next to Google called RSS. So let me go search something. I'm going to search iPod and BMW in Google. And I get some results. The problem is that Google is searching a billion websites. And they can't do it in a few days. It takes them several days to scrape all these websites. They certainly can't do it in an hour to give me up-to-the-minute news. And that's where these RSS feeds come in. They're really up to the second. And so now let me go over to the RSS feed. And I type in the same query, iPod, BMW. And now I am searching a whole bunch of RSS sites. And it's aggregating them all together. And I found 11 articles here on iPod plus BMW.

I did another search just last night on Cheney. I found a whole bunch, 37 articles on Cheney. You know, a lot of the F-word articles that I can't go into. So this is how easy it is to use Safari RSS. Just go type something in, and boom, it blasts out over whatever RSS sites you have in your bookmarks or whatever there are out on the web and finds you these articles on just about anything you can type in. You can search them. You know, yes, well, most of these are this week here. No, I guess they're all today. Pretty cool. Safari RSS. Again, integrated right into Safari.

All the protocols, the RSS and Atom protocols alert you when you have an RSS feed. Personal clipping service is going to be my favorite. To just be able to type something in and boom, get every article there is out there up to the minute. And to be able to store those things right as bookmarks. You can just hit them if you want to look at a variety of things every day. Just boom, hit one button. And boom, see the RSS site, search a bunch of RSS sites. We think this is going to be really big. Safari RSS. OK. Next up, a technology, a new technology built into Tiger called Core Image. Now, what's Core Image about? Well, we started off with Mac OS X building in an audio technology that we heard about earlier called Core Audio.

This was taking professional quality audio and building it into the heart of the OS where we could get super high performance, super low latency and providing a really clean set of APIs for developers to build amazing apps on top of and saving them tons and tons of time. And we've seen what's happened in the last few years with Core Audio. It's been huge. Well, in Tiger, we are introducing the same thing for image processing called Core Image and the same thing for video called Core Video. And this stuff is really, really hot. So we're going to look at Core Image and Core Video today. Now, the thing that probably makes them the hottest is that we are not doing the image processing and the video processing in the CPU.

We're doing it in the graphics processor. CPUs, as we talked about earlier, are flattening out in their performance ramp over time. But GPUs are crashing right through Moore's Law. They are getting incredibly high performance. And so we are actually doing the processing, the image processing for this stuff inside the graphics processing unit and Core Image and Core Video, get it in there and get it out all automatically for you very efficiently. These calculations are all done with floating point precision. So you do not have to worry about precision anymore. You do not have to worry when you stack a bunch of effects or filters on top of each other that you're losing precision because everything is done with floating point precision. A lot of real-time filters.

The performance is so high that most of these filters work in real-time. And we are going to be supplying over 100 professional quality filters in Tiger for Core Image. And just like we have audio units for people to extend this, we have image units and in Tiger video units for you to extend this in any way you want. We think this is going to be very, very strong. And this is the same technology that is used in the app Motion that we introduced at NAB not very long ago that has got the video world just dropping their jaw. And it is going to be available to you to write whatever apps you want just like Core Audio. So Core Image and Core Video. I would like to invite Phil Schiller, our Senior Vice President of Worldwide Product Marketing up and he is going to give us a demo of Core Image and Core Video.

Thanks, Phil. Hi, Steve. Good morning, everyone. I can't think of a more exciting thing to get to demo. I'll tell you, this is some of the most advanced technology I've ever had the pleasure to play with. So we thought hard about how to demonstrate this to you all and particularly in a way that really shows you what you're going to be able to do in your own applications. So we created a fun little demonstration application and called it Funhaus. Now this little app called Funhaus, there's two simple things. It brings up a photo, in this case appropriately a tiger, and it brings up an inspector floating above it that gives us access to some of these over 100 professional quality floating point effects.

So I'm just going to take this first one right here, show you how some of them work. Pre-selected at sepia tone, I'll just drag the slider and affect a parameter on it and in real time I'm playing with sepia tone. And there's a lot of effects and filters here that you'll want to use inside your own applications. Here's again just some of them. Let me pull up some standard color controls. Those are now built in. You can have these in all your applications. Play with saturation or brightness and contrast. all built in and really powerful filters. Like for example, a lot of customers like to have a Gaussian blur in their software applications. Now you can have one in yours without having to do any of the hard work. We've done it for you. Real-time, beautiful, smooth effects. And it's not just 2D effects.

There's 3D effects in here as well. Let me bring up a bump distortion and drag that out. Look at that. Real-time, fluid, incredible performance. And again, there are parameters that you can create in interfaces for your customers. Let me give it a nice big nose or make this the smartest tiger you ever met. It's incredibly powerful. Let me bring up one other 3D one. This is just remarkable. It's a glass distortion. Gives a nice wet effect. And again, this is calculating refraction through a height. So I can play with that height as one of the parameters and adjust how glass I want it to be. I can also move it around in real-time. Look at that.

You're seeing well over a billion floating point calculations per second happening on this image. Well, I told you there are filters. There's also transitions, which are, of course, filters over time. Let me bring one of those up, a standard wipe. We're going to see a bunch of settings you can have there. I'm just going to click play and wipe from one image to the next. Beautiful professional quality wipes. Let me go back. Let me try another one. Bring back our tiger. This time let me do a ripple. Again, I said transitions are really effects over time. Let me take a time slider, bring it forward a little bit. There's the ripple. Let me position it wherever I want it to be. Again, beautiful fluid effects. Put it right in the center. Let's look at this halfway through.

You're going to see the next slide coming through. Before I run it, let me bring up a magnifying lens and just show you the incredible quality of the edges on this filter. Try to find a pixelated edge between the tiger and the lion. It's not there. There's no approximations. This is incredible, beautiful, real-time transitions. Let me click play. You can add this to all of your applications now. We'll do all the work for you. Now, that just shows you a few of the tools that you can throw into your apps. Let me give you a little bit more of a real-world example of how you might build something and how a customer might use it. Let me bring up another photo. In this case, let's bring up a zebra.

Now, imagine I want to create a photo using your app, and I want to create a photo in a zebra that's really hard to find. In fact, it's never been photographed. It's called the electric zebra. I don't know if any of you have ever heard of this thing. The electric zebra looks a little different than your standard zebra. I'm going to use a bunch of these effects together in a stacked way. Well, first, to create the electric zebra, I'm going to bring out a 3-D effect that's going to play with it called vortex distortion. And it brings up a point that I'm going to bring right to the nose of the zebra. If you've ever seen the rare electric zebra, it actually has a really unusual snout. Let me play with that there. That's just about right. That's just about right. I've seen one in the wild. And they have a different fur color and combination than you see with normal zebra. Let me bring out another effect, this time a twirl distortion.

Dial down its radius, bring it over right onto its fur, and play with the angle, because these zebras have sort of a yin-yang thing going on their fur. Pretty cool. Yeah, that looks about right. Now, I said they were called electric zebras. It doesn't look all that electric yet. Let me add another effect to try to get to the ones I've seen. I'm going to do an edge detection on the entire image. There it is. Let me pump it up. It's getting closer to what the electric zebras look like. Let me play a little bit with the color correction and maybe saturate it. There we go. And there we go. That's looking a little bit more electric now. So, we're starting to get to the appearance of the electric zebra. Now, I've been playing with this image, but it's so much more than that, because it works right with quartz as part of quartz.

Quartz image can take quartz input, and, of course, quartz can work with what else? Text. It can work with anything from plain text up to PDFs. So, let me bring in a layer of text now on top of this image, the electric zebra. Some of you may know that it's also a progressive hip 60s band that wants to make a comeback. And, of course, everything I've just done with the image can also work on text, all these effects and capabilities. So, let me bring an effect on top and apply it just to the text. I'm going to take a 3D effect again, that cool bump we showed on the tiger, and I'm going to use that right in the middle of the text and blow it up a bit. And in just a second, I've created a cool album art cover for the electric zebras using effects all being layered together.

Again, you can do this in your app. Now, what's really amazing that we just saw, and I think some of you have figured it out, is we layered all this together, but it's non-destructive. It's all active there. Even though I've created all these layers, I can go back and play with the vortex on the nose. I can play with that twirl effect on his rump and move it around, and it's all live and active because this is non-destructive. But even better and more amazing than that, what's happening with Core Image in real time, it is dynamically compiling a program that's optimized for this exact list of filters and the exact hardware I have in this machine. Dynamically, in real time, to get maximum performance. That's an incredible breakthrough and never before seen in an operating system.

And you can just take advantage of it. Okay, let me reset and do one last trick for you. If you know anything about Apple, you know we love to work with media and make our architectures work seamlessly across all kinds of media. We've seen graphics, we've seen text, what haven't we seen yet? Video. So we bring up some video. It also works with QuickTime, and you can bring QuickTime in and work with Core Image. This is a pretty standard video. I'm sure you can imagine any one of us could have taken this, nothing too fancy going on, except that we decided to use the cool new H.264 codec, and that's what you're seeing here. But imagine that you have an application and you want a customer to create an intro video. Maybe they work at Laguna Seca, and they want to get the kids all excited about going down racing on Sunday. Well, all those effects apply also to video.

So, for example, you see sepia tone here. Well, we just play with that and apply sepia tone in real time to the video, and that's just incredibly fluid. It's not quite the effect I want. That looks kind of like oldies days at Laguna Seca. Let me try another effect. This is one of those 3D effects we saw. Do those work on video? Well, you bet. Here's a 3D effect happening and moving around in real time. I can drag it around, make the cars do funny things, play with the scale. But, you know, that's not quite the effect I'm looking for either. So let me try something really crazy. In real time, let's do that edge detection on video just like we did with the zebra photo. That's incredible.

Let me bump it up a little, saturate it, make it look really hot. So now I've got some video, and just like before, we can also throw some text on top of that. Let me pull up a text layer, Laguna Seca again. Apply that, and let me add an effect to the text. In this case, I'm going to blur it a bit, use one of my blur controls. Make a nice, bright lighting effect. Bring up a second layer of text on top of that so I've created a blur shadow behind it. Maybe give that a little transparency. So in just a second, you can imagine your customer using your application to take video, apply real-time effects, layer in text and graphics, and all that technology is in Mac OS X and in Core Image for you to take advantage of.

And this little demo application, this fun house app, we spent about a week of programming work on it, about one person week of programming effort in Xcode. And if we can do that, the things you can do with this technology and your app is just amazing. Thank you. So we think Core Image and Core Video are breakthrough technologies. They're going to give you pro-quality image processing and video processing like you've never seen before. The people, the folks we have at Apple really know this stuff cold, and we've built our best technology we've ever seen right into the operating system, and you're getting an SDK for it today so that you can build some awesome apps.

You know, I want Adobe to integrate this stuff into the next generation of Photoshop so that the Mac version blows every other version away. So Core Image and Core Video along with Core Audio, amazing technology at the heart of Mac OS X. Next, I want to tell you what we're doing with .Mac. You know, we have over a half a million .Mac subscribers, a half a million, which is terrific. And we're going to be doing a lot with syncing in Tiger. We're building the sync engine right into Tiger. So if you want to sync with something, you're going to have a whole sync engine there at your disposal. We're also using that to put .Mac syncing throughout Tiger for .Mac subscribers.

We're going to build it right in, and we've got a new .Mac preference panel that lets you turn things off and on all in one place. And this is going to be a godsend for users with more than one Mac like most of us. And so here's an example of what the preferences panel looks like. And you can just go in here and do one checkbox and your address book will sync across your multiple computers. You can do another checkbox, your screen saver pictures in your settings or your doc settings or your calendars or your rules in mail and your accounts in mail will all just sync across your various machines. And this is where we're going with syncing and .Mac. And if you want to sync anything else with or without .Mac, you're going to be able to do it because we're putting an SDK in your hands today for this new sync engine built into Tiger. Now, a really cool thing.

A new feature for Tiger called Dashboard. What is Dashboard? Dashboard is expose for widgets. It's a new category of applications built with WebKit primarily in JavaScript. For all the things we do that we need these little accessory apps for, whether it's checking the weather, whether it's checking our address book, a calculator, you name it. We've put it together in something called Dashboard. And let me show it to you now. So let me go ahead and open a few windows like we normally have open, maybe mail and Safari, something like that. And let's say I want to work on a calculator or something else. I've got to get at these widgets. How do I do that? Rather than have them in the dock and have to pull them in and manage my windows, I can hit one button and there they are.

Boom. Whatever widgets I want are there in a second. It's expose for widgets. So let me go ahead and drag out a few more. Let me go ahead and drag out address book here. And, you know, am I in there yet? There I am right there. And let me go ahead and drag out iTunes controller here. And, you know, we can go ahead and... All right. And I can go out and let's go get it. You know, we've got stickies out. Let's go get some stocks here. Stock tracker and one of my favorites, the webcam here. And this is London, I believe. Yeah, this is London, Trafalgar Square, I think.

And here's a shark cam, by the way. We've got this one running at the Monterey Bay Aquarium in the shark tank. So this is live from the shark tank. And, again, you can see these. We can look at some other webcams if we want here. We've got... Oh, here's the Brooklyn Bridge. It's kind of fun to keep tabs on things, you know. Here's the Golden Gate Bridge. There's one for... Yeah, this was... This is, I think... This is Times Square in New York. And so I can get these widgets, whether it's a calculator that I need or I want to play some music or I want to check on some stocks, and, boom, they're gone instantly, which is as important as they're coming instantly. So let me go ahead and just show you this again in slow motion. And then gone instantly.

And so when you need something, boom, check on it, use it, boom, it's gone. Little things like, you know, clocks that we can set for, you know, any time zone we want here. You know, Miami. You name it, we can do it. So this is Dashboard. Okay. So in Dashboard, the widgets instantly appear. Just as importantly, they instantly disappear because when you're done using them, you want to get back to what you were doing. There's accessory widgets. There's widgets that go out on the web and find information for you. And, again, they're all built using WebKit.

Here's just some high-res versions so you can see what they look like. We'll be working on these some more. We'll supply a set. But what we really want is for you guys to start supplying these things. They're very easy to code and they're fun. So it's totally extensible. And we're putting an SDK in your hands today. So you can write your own widgets. And that is Dashboard. Once we had Exposé done, we knew what we had to do next. Next up is a really, really cool app that I know I'm going to be using a lot of called Automator. What is Automator? Automator is visual scripting. You know, we've had AppleScript. We have the best scripting in the land. But you have to learn AppleScript to use it.

And our AppleScript team said, let's take this even further and do visual scripting. You can build interactive or fully automated scripts. Over 100 actions are built in. You can share scripts. You can send around files. You can email them. They work just fine. And Automator has access to iLife and Mail and Safari and every app in the system and Quartz. So you can do some amazing, amazing things. And I'd like to invite Saul up on the stage, whom you all know, to give us a demo of Automator. Thanks, Dave. Thank you. Thank you. Hello. How are you doing? I'm thrilled to be here today to show you this innovative, groundbreaking application. Automator has already made my life so much simpler in many ways.

For example, every year I make a DVD that my family gives out as a Christmas gift. Now, the contents of this DVD are the slideshows containing the images from websites that I've downloaded that belong to my family members. For example, my Uncle Ray has a website up on .Mac where he keeps images from the family events of the last year, like Ted and Trina's wedding, Carrie D.'s trip to Disneyland, and pictures of his grandchildren, Sam and Emma. Now, these pictures are really good and would be perfect for me to add into my DVD, but the problem with getting pictures from the Internet is that you have to take them, download them to your desktop, drag them down there, go to the next picture, do the same kind of thing, and you have to sort them, collect them, put them together, then add them to your DVD project.

Now, Automator can make this process so much simpler. Let me show you how. I'm going to close this. This is Automator. It has a very simple, easy-to-use interface. On the left-hand side are icon buttons representing the categories of the things that you do most on the computer, for example, finding things, working with disk items, or opening drives, some music things, working with people. And as you click a category, you'll notice that the actions related to that category appear in a list below the category buttons. Now, for my particular workflow that I'm working on, I'm dealing with the Internet. So I'll click the Internet category and choose an action called Find Linked Images.

Now, as you can see in the description field for this particular action, it will go to the Web page that's showing in your Safari browser and find the larger images that are linked to those smaller thumbnails. So to add this to my workflow, I'll just select the action, drag it up into the workflow area, and it's automatically added, and any preferences that that action has appear here. The next step in my workflow process will be to download the files that are found by this action, and I'll choose the Download Internet Files action and drag that in as well. And instantly you can see that these two actions are linked together, so that the result of the first action is passed to the second action automatically. And for the options on this action, I have the choice of determining where I'm going to place those downloaded images.

And for this example, I'm going to choose my Pictures folder. Now that I've downloaded the images to my hard drive, the next step is I'd like to add them to my iPhoto library so that I could use them again in other projects. I'll click the Pictures category and then choose Import Images into iPhoto. And as an option, I can make a new album for these imported images, and I'll name that album Sam and Emma. And I can choose to delete the downloaded images because iPhoto keeps its own copy. All right. And then the next step, of course, is to add them into iDVD, and I'll choose New DVD Slideshow, add that to my workflow, and I can name the slideshow the same thing, Sam and Emma, and I can even set parameters for my slideshow like three-second slide duration and a cube effect as well.

So there's my workflow. I find the images on the website, download them to my hard drive, import them into iPhoto, and then finally create a new slideshow in iDVD and add those images into it. Now, to execute this workflow, all I have to do is click the Run button here, and instantly, Automator will go through the processes that you've seen. It will download the images to my hard drive, import them into iPhoto, create a new album for them. Then switch to iDVD and add it in. It's that simple. It really is. Everybody can do this. But here's the best part about the whole thing.

This is what I really like. I've got a great workflow here. I can use this workflow every time I go to a different website to get the images. Well, with Automator, I can save that workflow as a document and share it with other people. or I can save it and use it with the applications on my computer like Safari. So, I'll switch back to Automator and I'll make this workflow more generic by instead of placing a specific name, I'll have the workflow ask me for the name of the iPhoto album and ask me for the name of the iDVD slideshow. Now, I can save this workflow and have it appear in Safari whenever I need it. I'll choose Build DVD and choose Safari on my list here.

And now I have completed the saving of the workflow. I can quit Automator, go back to Safari. And let's go to another page. These are great pictures of Sam and Emma at the beach. And up in my script menu, you'll now see the workflow that I just created called Build DVD. I select that and you can see that there's a visual indicator running showing me that the workflow is in process. It is now downloaded and imported the images. I can name the oh, at the beach. I can name my album that. Switch to iDVD and now ask me for the name of the slideshow.

I'll use the same name. So, Automator has done all the hard work. All I have to do now is preview the DVD. This is a great tool. This is an incredible application. It makes complex and repetitive things very easy. Now, I've been scripting for over 12 years and I can tell you I've never seen anything like this. And I can't wait to see what our customers do with this and your applications. Thank you.

So, that's Automator. And of course, we want Automator to work with all of your apps if it doesn't already. And so, you're getting an SDK for this today. We think this is going to be really hot. So, we've seen a lot of stuff today. What I'd like to now do is show you the thing that I think is the most amazing of all. So, let's talk about iChat. iChat in Panther introduced personal video conferencing that actually worked. With no setup and configuration, it just worked. And it's been a huge success. And so, for video conferencing in iChat, for Tiger, of course, we're going to base it on H.264.

And the quality difference is stunning. At the same data rate, you can see the one on the left is H.263, which we currently use, and the one on the right is H.264. So, over the same bandwidth, we think the quality is going to dramatically improve. But we're also addressing what is the most requested feature of iChat AV. And that is, I'd like to talk with more than one person. And so, in audio conferencing, you'll be able to chat with up to 10 people in audio conferencing. And in video conferencing, you'll be able to chat with three additional people. We call it you plus three. And let me show you this now.

Okay. I'm just going to pick, I got three people here on my buddy list, Bertrand, Danica, and Phil. And I'm just going to start an audio conference with them so you can see what this is like. Here we go. And they'll join the conference as they accept. Hi, Danica. How you doing? Good, Steve. How are you? I'm good. We're still waiting for Phil and Bertrand. There's Phil. Hi, Phil. Hey, Steve. How you doing? Good, good. Where are you? Hey, good morning, Steve. Good morning, Bertrand. We're showing off your new OS here. Yeah. I'm in a few words. So, as you can see, audio conferencing, why don't we have somebody drop off? Phil, you want to drop off? All right. I'll check you guys later.

All right. See you later. Bye. And again, it all just works seamlessly, up to ten people. All right, guys. Listen, I'll talk to you later. Why don't you all plug in your cameras and we'll get going with video conferencing here. All right. So now, they're plugging in their video cameras. So the video chat icons show up here. And how are we going to do this user interface? Are we going to do this with three separate windows, which is how everybody else would do it? No. No, we're not. So the first thing we're going to do is I'll see if Danica's there. And we're going to see what H.264 video conferencing looks like when she gets on here. Hey. Hey, how you doing? Good. So this is H.264 and we can just see full screen.

How's it look? It looks great from here. All right. Well, now we're going to go add somebody. We got a little plus button right here. And let's go ahead and add Bertrand. So, hey, Bertrand. And let's go ahead and add Phil. Hi, Phil. How you doing? Hey, Steve. Great. I'm glad you called. Hey, Danica. Hey, Phil. Hey, Bertrand. How you doing?

This is pretty cool. Bertrand's got a coffee maker. We didn't. Yes. Yes. In fact, sir, I'm drinking. On the job? Listen, Bertrand, why don't you drop off so we can show them what it's like when somebody leaves the conference? Sure. So Bertrand's left the building here. Seamless. All right, Phil, I'll see you later. All right. It's just you and me again. Yeah, we're alone. Well, thank you very much. Talk to you later. So this is the new iChat in Tiger.

And it shows you that combination of technology, but also creative innovation to go from here to here that I think Apple is well known for and that you're going to see everywhere in Tiger. So these are just a few of the new innovations in Tiger. There's 150 of them. A ton of stuff in Unix, including, most importantly, giving you 64-bit processes whenever you want them running right alongside 32-bit processes. An even better Windows Citizen. Spotlight. The most revolutionary technology we've introduced in an OS in years. We think we are so far ahead of the competition on this. And it's going to ship in the first half of next year, at least a year before anyone else.

And we think with a far more mature technology. H.264 Video. The new industry standard that's going to be built into every high-def DVD player in the future. And we're going to build it into Tiger the first half of next year. Safari RSS. Taking this great new innovation of RSS feeds and integrating it right in to the best browser in the world. Core Image. Taking all of our expertise in image processing and video processing and integrating it right in to the core of the OS. So you can write apps on top of it, just like you can with Core Audio today. Integrating the sync engine right in to the OS and making dot-max syncing throughout the OS as easy as checking checkboxes and preferences. Dashboard.

Exposé for widgets. When you want to get to things really fast and dismiss them really fast, this is going to be a great way to do it. It's going to open up a whole new opportunity for writing a whole new class of applications called widgets. Automator. To be able to string these applications together. Scripting for mere mortals throughout the system I think is going to be huge. And iChat. Let's take iChat AV to the next level with multi-party audio and multi-party video conferencing. And when you put all this stuff together and the stuff we haven't had time to show you today, we think Tiger is going to be a phenomenal release. Now, with these 150 new features, we were already ahead of the other guys. We're going to zoom even further ahead of them. And we're having some fun with that and the banners outside.

You know, Redmond, we have a problem. Redmond, start your photocopiers. One of them says, introducing Longhorn. Because we're going to ship this in the first half of next year. And we don't mind having a little friendly competition with them. And you're going to get your copy today. You're going to get a developer copy later on today with all of the SDKs in it and all of the code. Again, we're not shipping this until the first half of 2005. So put the bits in perspective. But we want to get something. And we've got 200 sessions here this week on every facet of Tiger. So please partake of them and please learn everything you can about these amazing new technologies.

And most importantly, please integrate this great stuff into your apps and blow our minds with the incredible apps that you're going to create using this stuff. So thank you very much for coming. We'll see you all this week. Thanks. Microsoft Mechanics www.microsoft.com Microsoft Mechanics www.microsoft.com