Steve Jobs on Unibody MacBooks: A New Notebook Era

We appreciate you coming down here this morning. We've got some fun stuff to share with you. I think everybody knows today's about notebooks. And we've got some exciting new notebooks that we want to tell you the story about how we created these things and what they are and why we're so excited about them. Before we get going on notebooks, though, I want to really cover, zoom out and kind of cover the state of the Mac, where we're at with momentum and results.

So I've asked Tim Cook, our Executive Vice President and Chief Operating Officer, to take us through the state of the Mac. Tim? Thank you, Steve. Good morning. This is the Macintosh product lineup today. Very clean, very focused, and very successful. In fact, in our last reported quarter, we sold two and a half million Macs. And this set a new company record. This didn't just start in the last quarter. In fact, in several quarters in a row, we've been growing at two to three times the market rate of growth. You may wonder why that's the case. And I'd like to take you through why we think it's the case. First and foremost, better computers.

The Macintosh is far superior to anything else on the market. And we have computers like the iMac, the all-in-one design that Apple pioneered, and products like the MacBook Air, the ultra-thin, ultra-portable that we announced earlier this year, and really reset the whole category of thin and light. And with those better computers comes better software. Software like Leopard. I think virtually everyone agrees that Leopard is far ahead of Vista. And software like iLife, the best digital lifestyle suite on the market that allows you to enjoy photos and create movies and make music and make websites all in an integrated fashion.

And products like iWork, the absolute best productivity package on the market. Number three, compatibility. When many people looked at the Mac in the past, they were concerned about switching because they were afraid the Mac wouldn't fit in a Windows environment. We fixed that by including Boot Camp on every single Macintosh we ship, which enables Windows to run natively on the Mac. Now, we also work with third parties on products like Fusion and Parallels, which allows the Mac OS and Windows to run side-by-side for that person who wants to run the occasional Windows program.

Now, when I look at this, frankly, it sends a shiver up my spine. But the fact is it's working. It's removing the fear, just like an insurance policy does, whether you use it or not. In fact, if you look at it, Walt Mossberg of the Wall Street Journal's observation, I think this is very insightful. In 16 years of reviews, I've never had anything like the amount of email I'm getting from lifelong Windows users who are thinking about switching. So, compatibility. The next up is something we didn't do, Vista. Now, you may wonder, why is Vista on the list?

Well, I think it's fair to say that Vista hasn't lived up to everything that Microsoft hoped it would. And consequently, it's opened doors for a lot of people to consider switching to the Mac. And this has given us an opportunity, and Apple has been the beneficiary of this. Maybe Peter Burroughs of Business Week summed it up best when he said, Vista looks like it could turn out to be one of the greatest missteps in technology history. So Vista. Now, with great products and a compatibility message, you have to follow that up with great marketing.

And the Mac PC ad has really struck a chord with so many switchers. You know, they tell a story, and people listen. And I'd like to play one of these for you now. Hello, I'm a Mac. And I'm a PC. What is this? Well, you know, Vista's something of a hassle, but switching computers is an even bigger hassle. So even though you might have a better operating system, I'm not worried about losing any of my subjects to you. I'm still the king. Well, actually, all your subjects have to do is bring their PC into an Apple store, and when they get a new Mac, and then Mac Genius will just transfer their files over for free. Really? Yeah. It makes switching kind of easy. I'd banish you. You are banished.

Isn't it great? Number six, retail stores. We began our journey in the retail stores just over seven years ago. And today, we have almost 250 stores in eight countries. And they greet 400,000 visitors each day. And most importantly, still, 50% of the Macintoshes they sell are to people who are new to the Mac, making the people underneath the Macintosh tent get larger and larger. We opened several stores over the summer, and I'd like to show you a photo of a couple of these.

This is our new store, our first store in Australia. It's in Sydney. It's phenomenal. And this is our first entry into China, in Beijing, that opened right before the Olympics. Both of these stores have gotten off to a great start. And so these are the six reasons that we would attribute to Macintosh's momentum, better computers and software, compatibility, Vista, marketing, and retail stores. There are clearly others that people could list, but we believe these are the primary reason for the momentum of the Macintosh. Now, as I said in the beginning, this just didn't begin.

In fact, if you look at the history, what you would see is the Mac has outgrown the market for the last 14 of 15 quarters. That's almost four years. It's phenomenal. And you can look at the slope of that curve. There's been some key milestones along the way, like our transition to Intel. It was the sole quarter we went below the line, where we had more demand than we had supply. And then there was the Vista announcement and Leopard, which really accelerated our sales. Now, since we're growing faster than the market, obviously the unit share that's coming out of that is growing. And I'm very pleased to show you that in U.S. retail, we've gone from a single-digit number just a few years ago to now the Macintosh represents 18% of unit sales in U.S. retail.

And what's more impressive than this is if you look at revenue share, because we focus on fully-featured systems and we don't compromise on quality, our revenue share is over 31%. That means that one out of every $3 that's spent on computers in U.S. retail is spent on the Macintosh. Look at the difference a few years makes. Now this isn't just happening in retail. If you look in education, we've surpassed Dell to become the top supplier of notebooks for all of education with a stunning 39% unit share.

And if you drill down a little further and look at our progress at a major university, and this is a major university that you would recognize, look at what's occurred. It's breathtaking, moving from 15% all the way to almost 50%. It's fabulous. Now for those of you that are not as close to the universities, and many universities now require a computer when a college student comes on campus. That university selects among a group of computers and places them on a list, and the student has choice of what they would like to pick. And of course we work really hard to get the Macintosh to be one of the choices.

This is one such school, and I challenge you to find the PCs in the audience. And if you take all of this, the success in retail, the success in education, the over the year growing faster than the market. Maybe the best way to distill this down into one simple chart to show that momentum is to look at the total units that we've shipped. We added 800,000 in 2006, 1.8 million to clear the 7 million mark in 2007 and now in 2008 through the first three fiscal quarters we've already equaled all of 2007. This is momentum and that is the state of the mark. Thank you. Well with that at our backs let's talk about notebooks. Now before we get into the actual notebooks themselves we want to talk about some technologies and discoveries that we've made that let us look and build notebooks look at and build notebooks in some new ways. So the first thing I'd like to talk about is some new ways to build notebooks and I've asked I'd like to ask Johnny Ive, our senior vice president of design, to come up and take us through that. Good morning. I'd like to take just a couple of moments to tell you about I

think a real breakthrough that we've had in how we can design and actually build our notebooks. I'd like to give you I'd like to start but by really giving you a sense of context, by giving you a sense of the sorts of my problems and challenges and issues that that really preoccupy us when we're designing this class of product. Now to do that I'd like to show you how we actually build our current 15-inch MacBook Pro. That's a product that some of you will be familiar with. Now that one of the most significant challenges when you're designing a product that is as thin and as light as a MacBook Pro is actually making it strong, making it robust, making it torsionally rigid. Now I think you'd be surprised to know that the aluminium enclosure that you can actually see makes a relatively small contribution to the product's overall structure. Now the structure is primarily derived from this. This is an internal frame. It's actually made from, it's a magnesium die casting. It's made of multiple parts that are then assembled into the bottom case and the bottom case is a very thin aluminium pressing. Now it's this combination, this composite that starts to create a strong system, a robust system. Now the palm rest which is

also made from a thin piece of aluminium requires the same sort of internal structure. So there's a series of stiffening plates and internal structural frames that are actually welded to the underside of the palm rest and you can see that these internal frames also provide the support for the trackpad and for the keyboard. And then finally we add this plastic gasket and that helps us control the reveal or the junction between the palm rest and the bottom case. Now even though the current 15-inch MacBook Pro is absolutely best-in-class in terms of its size and weight, we have been looking for a new way of solving these problems and for years we've been looking for a better way of building a notebook and we think we found it. We had a really significant breakthrough that culminated in the design and manufacture of this product.

This is our MacBook Air. There is no way that you could build a product that is as thin, that is light and importantly that's as strong and robust as the MacBook Air given the architecture that I just described. So rather than start with a very thin piece of aluminium and then add multiple, multiple parts of internal structure, we discovered that if we started with a thick piece of aluminium and actually removed material to create mechanical features in the structure, we discovered we could make a much lighter but importantly much stronger part. And that's exactly how we make the palm rest for the MacBook Air. So we make the palm rest actually from this solid piece of aluminium. This is an aluminium extrusion that's been blanked and then goes through multiple stages that include laser scanning, laser piercing and CNC machining, that's computer numerically controlled machining. I'm just going to show you a few of those stages. We start off by creating the locating features. Now these are the features that are constant with the part that follow it all the way through the process. Now we then go through a very noisy stage which we call rough cutting, where we're removing large amounts of material very quickly. We create the holes for the key caps and then machine

the perimeter. And at this stage we also create some of the mechanical features like some of the screw bosses. And then towards the end we finally bead blast the part and then anodize it. Now one of the fantastic things about aluminium is how recyclable it is. So that at each of these distinct stages we're continually collecting the material and cleaning it and then recycling it. So we started with a solid slab of aluminium, high-grade aluminium, that weighed over two and a half pounds. And we end with this remarkably precise part that now only weighs a quarter of a pound. And it's not only incredibly light, it's very very strong. That one part, just that single part, forms the structure for the MacBook Air. It really is this highly precise aluminium unibody enclosure that made this product possible. So this new way of building a notebook that we pioneered here obviously has a relevance beyond the MacBook Air. And we've been working super hard on trying to design some new unibody enclosures for some new notebooks. Thank you.

So a new way to build our notebooks. We also have some new graphics for notebooks. NVIDIA came to us many months ago and talked to us about an amazing graphics part that they wanted to build that would combine the chipset and an extremely powerful embedded graphics processor all in one part for a desktop computer. And we said this is fantastic but we'd like to use it in a notebook. Can we work together on this? And we've been working together with NVIDIA for many many months and they've created something really great. And it is, they've dubbed it, this is the chip here, and they have dubbed it the NVIDIA GeForce 9400M. It's an amazing chip. It again combines the chipset and the GPU under one die. 70% of the die area is the GPU. So 70% of that die area is GPU, 30% is the chipset. There's 16 parallel graphic cores on it. You can actually see them on the chip and count them if you'd like. And they deliver 54 gigaflops of graphics performance. So this thing's a stunner in terms of performance. And what we found in our tests is this delivers up to five times faster graphics than the

integrated graphics we've been using. Up to five times faster. So what's it look like when we take it out in the real world and play some games on it? As you can see, from about 3x all the way up over 6x speed-ups. Real-world performance. Now if we compare this with the Pro graphics we've been shipping in the MacBook Pros, this is what we see. We've been shipping the 8600M in that MacBook Pro you just saw, Johnny, assemble. We're at 55% for heavy-duty 3D graphics performance. 55% instead of just around 10% where we've been. This is huge.

And if you look at overall graphics performance, we're up at 82% of the highest-end graphics we've been shipping in our Pro notebooks. So we are thrilled with the performance of this chip. The GeForce 9400M, five times faster graphics, and we've got some great new graphics for notebooks. What else? Well, we've got a new trackpad for notebooks. We've got a gorgeous, large, multi-touch glass trackpad that we've been working on for a long time that's about to see the light of day in our new notebooks. It's 39% larger tracking area than we've ever had before. It's multi-touch for gestures. It's glass for silky smooth travel. And we've optimized the coefficiency of friction on the glass so it's just really beautiful. Now you could say, where's the button? Well, the entire trackpad is the button now. So if you've ever had to search for the button, you no longer have to search for the button. The whole trackpad's the button. It gives you more area on the trackpad and it keeps you from hunting for that button.

You can get multi buttons via software. So if you're a Windows user coming from Windows and you like that right-click button, no problem. Just turn it on in preferences and you've got it. And we've added some new four-finger gestures that are really nice. So let me run through some of the gestures that we've shipped on prior notebooks and show you the new ones we've added. Of course, we have one-finger gestures and we have some nice two-finger gestures. And we have some nice three-finger gestures. And we've added some four-finger gestures now. So expose, a great way to get in and out of expose.

And a great way to get to app switching almost instantly. So pretty nice, pretty nice. So a multi-touch glass trackpad, a new trackpad for notebooks. So let's take these technologies and more and make some notebooks. Today we're introducing our new MacBook Pro. So some of you are familiar with our current MacBook Pro. As Johnny pointed out, it is the best in class in the industry. This is what most pros in a lot of fields aspire to. And today we're going to replace it with this. Again, from that to that. And it's gorgeous. Full glass, instant-on LED displays. You can see how thin the display is. All the connectors on one side. It's just gorgeous. So precision aluminum unibody enclosure, LED backlit display, next-generation graphics, a multi-touch glass trackpad, a mini DisplayPort connector. And we'll talk about this, we're putting this on all our new products now. And it's environmentally responsible product. So let's take a look at each of these. Now we have a lot more innovation that we're

not going to talk about today. Things we've invented over the years. Backlit keyboards, built-in eyesight cameras and microphones, stereo speakers, the magnetic latch to get rid of all of the latching mechanisms and stuff. Sudden motion sensor on disk drives so when they fall, you know, it parks the head. We invented that, have all the patents for it. So a lot of innovations in here that we don't even have time to talk about. But we're going to focus just on these things today. So precision unibody enclosure. This is what the unibody looks like. Again, it's exceptionally beautiful on the outside but also on the inside. And as you can see, the unibody saves us half the parts. Half the major structural parts by going to this unibody. And it's a much more rigid, strong construction that we get. So we're really happy about this. And as a matter of fact, I'd like you to see it. It's so cool. So if we get the lights up, I'd like to actually pass one of these around from one side of the aisles to the other so you can just see how beautiful and how high-tech this is. We need them back.

Teams of hundreds of people have worked on this for many, many, many months to figure out how to design these things and how to manufacture them economically. This is a tour de force of engineering. All right, let's move them on through. All right, come on in the back. You guys are a little slow. Let's move on through. All right, we got them all?

All right, time's up. You can see them later. Thank you. So let's get the lights back down. All right, precision unibody enclosure. You're the first to get your hands on one. Next generation graphics. We've got the GeForce 9400 built into the new MacBook Pro. But even that wasn't the best we could do. We've added to that a new chip out of NVIDIA, the GeForce 9600M GT. The 9600M GT is the state-of-the-art in mobile graphics. This is a real screamer. It's got 32 parallel graphics cores, 120 gigaflops, and up to 512 megabytes of video memory. So we've decided to include both of them in the new MacBook Pro. And our architecture looks like this with the 9400 as the chipset and graphics if you choose, or if you choose, you can switch over to the 9600M GT for graphics to get the ultimate performance you can get out of a notebook. And if you're using the 9400M, you get five hours of battery life. If you want to go into turbo mode and use

the fastest graphics, you get four hours of battery life. You get to pick. So we're really pleased with the graphics in the new MacBook Pro. Gorgeous glass trackpad built right in. And let's take a look at the peripherals. Slot load SuperDrive. And then on the other side, MagSafe connector for power, Gigabit Ethernet built-in, FireWire 800. You get the FireWire 400 with just a cable if you choose. Dual USB 2.0 connectors. Here's our new mini... DisplayPort. This is what we're going to for all video out on all of our products.

It's pretty outstanding. We'll come back and talk to it in a minute. Audio in and out, both analog and optical digital. An ExpressCard 34 slot. And we've moved the battery indicator to the side of the product, so if you want to find out how much battery you have left, you don't have to turn your product upside down. So let's come back to this mini DisplayPort. This is what we've used on the prior MacBook Pros. It's a full-size DVI connector. We can do everything this connector can do and more, including drive 30-inch displays out of something a fraction of its size. Now the new industry standard mini DisplayPort, we're building it into everything we make. So we're very happy about the little touches like that.

The MacBook Pro is going to be the first MacBook Pro that we offer solid-state drive on. And you can access the battery and the drives right through a lid in the bottom. Just pop it off. Pop the battery out. Pop the hard drive out if you want. Pop a solid-state drive in. Pop the battery back in. Pop the lid on. So full accessibility to the battery and the drives. And of course, since this is Apple's state-of-the-art wireless networking 802.11n Wi-Fi, Bluetooth 2.1 plus extended data range. 0.95 inches. This is our thinnest MacBook Pro ever. And it's going to come in two models.

The first one, 1999, 15.4-inch LED backlit display, a brilliant display, an instant-on display, an environmentally friendly display. 2.4 gigahertz Intel Core 2 Duo with a three megabyte L2 cache. Two gigabytes of fast DDR3 memory. NVIDIA GeForce 9400M and 9600M GT with 256 megabytes of video memory. Quarter-terabyte hard drive, slot-loading SuperDrive. 1999. We have a second config at $24.99 and it differs in the following ways. You get a faster processor with double the cache.

You get four gigabytes of fast DDR3 memory. You get double the graphics memory on your GeForce 9600M GT and you get a larger hard drive for $24.99. You can also upgrade any of these models on the website. The faster processors, more memory, bigger hard drives, solid-state drives, and of course you can order all the cables to adapt any of the video. And these MacBook Pros are shipping today. They should hit the stores starting tomorrow. So the new MacBook Pro. Now there's a lot of new technology in this product, but something that we are just as proud of are the things we left out.

As you know, we have a major push here at Apple to really make our products much more environmentally friendly. And that starts with leaving out toxic chemicals. And we've been working really hard at this. We think we're leading the industry at this. And so here's our environmental checklist for the MacBook Pro. It uses arsenic-free glass. It's BFR-free. It's mercury-free. The system is PVC-free. All the components and cables inside it are all PVC-free. It uses highly recyclable materials. And we've actually shrunk the packaging by thirty seven percent. That's really important in the transport of these things and the carbon footprint it takes to move around the world.

So we're very happy with this. And for the first time, the MacBook Pro has earned an EP Gold rating. This is run by the Environmental Protection Agency and it's one of the best. So we're really, really happy with this. So the new MacBook Pro. Now, we have another cool product that we'd like to talk about today, the MacBook Air. We'd like to update the MacBook Air with some of these new technologies. So first up, graphics. We've had a lot of input that people would like faster graphics. We're putting the GeForce 9400M inside the MacBook Air. We have to run it a little bit slower because of thermal considerations, but four times faster graphics for the MacBook Air.

We've had an eighty gigabyte hard drive. We're going to be able to now put a hundred and twenty gigabyte hard drive in instead of the eighty. Fifty percent more space. But because of the operating system and things like that, you get a lot more user space. And we've got a hundred and twenty eight gigabyte solid state drive now as an option. In addition to that, we're putting in a mini display port so you can drive all of our new displays. So again, at seventeen ninety nine, thirteen point three inch LED backlit display, the new NVIDIA GeForce 9400 for four times faster graphics, one point six gigahertz Intel Core 2 Duo processor, two gigabytes of fast memory, hundred twenty gigabyte hard drive.

We have a second model. At twenty four ninety nine, gives you a faster processor and more importantly the solid state drive. The new MacBook Airs will be available in early November. Another cool product that we are introducing today is a new cinema display. It's a twenty four inch and it's gorgeous and it's our first cinema display that uses LED backlighting. It's really really nice. Very thin. Again, corner to corner glass. It's got some cool features on it for notebooks. If you notice the second cable right here coming out. The first one plugs into the AC.

Second one has three connectors on it. What are they for? Well, the first one is a MagSafe connector. So you can plug it right into your notebook and power your notebook. Second is USB, so you can plug it into your notebook and have access to all your peripherals. And the third is a mini display port connector for access to the video. And so you can just plug this into your MacBook Pro and you're all set. No extra cables, no power supplies, nothing. You're off to the races. So twenty four inch LED backlit display, the largest LED backlit display we've ever made. High res, built in eyesight camera and a mic so you can do video conferencing right from the display.

Built in stereo speakers. MagSafe charging connector. Mini display port connector and three port USB 2.0 hub. So it's everything you need to just plug in your notebook, have everything there for video conferencing, everything else you need. Eight ninety nine. And these will be available in November. A great companion to the MacBook Pro. So these are some of the new products we wanted to introduce today. But there is one more thing. Of course, that one more thing is the MacBook. The MacBook is an amazing product. It is the best selling Mac.

Ever. We sell a ton of these MacBooks and people love them. They are one of the best products in the industry. And they sell for ten nine. The entry price is ten ninety nine. And we're going to keep right on selling these to a lot of people. But we're going to reduce the entry price today to nine ninety nine. Make them a little more affordable. And I think we'll just keep on selling these for an awful long time. They're fantastic products. But we've heard from a lot of MacBook customers and the top three things they'd like in their MacBook are a metal enclosure. They lust after the MacBook Pro's metal enclosure.

Faster graphics. They want to play games. They are doing a lot of graphic intensive applications with photos and other things. They want faster graphics. And a lot of them want LED backlit displays for that instant on and brighter displays. So these are the three top things we've heard. And we figured out a way to bring these to the MacBook line. And so we are introducing a new generation of MacBook on top of our white plastic MacBook. And here it is. Again there it is. It's an all new MacBook. Corner to corner glass.

LED backlit display. It is our new next generation MacBook. So let's take a look at it. It's got the same features in many ways that the MacBook Pro does. Precision aluminum unibody enclosure, LED backlit display, next generation graphics, the multi-touch glass trackpad, mini display port connector, and it's environmentally responsible. The same unibody construction for the MacBook as we used in the MacBook Pro. In this case, it eliminates almost 60% of the major structural parts, providing a much more rigid product as well.

So unibody precision aluminum enclosure. Again, the NVIDIA graphics, we're using the 9400M, and we're getting five times the graphics performance, 5x. Here's our system architecture. It's very clean, it's very simple, and of course, we've got that gorgeous glass trackpad with all the gestures. We've got our new display connector. So again, you can just hook this up, drive large displays with it, and we've got five hours of battery life. We haven't skimped on environmental responsibility on this product either.

Just because it's a consumer product, we think it's maybe more important. Arsenic free, BFR free, mercury free, PVC free system, highly recyclable, and we've been able to get the packaging 42% smaller. And this product as well meets EP gold. So the new MacBook. It's going to come in two models. Well, before that actually, the new MacBook Pro delivers metal enclosure, the much faster graphics, the LED backlit display. Now to get into these features, yesterday cost $19.99.

You had to step up to a MacBook Pro to get those features. Starting today, you can get these features for just $12.99. That's $700 more affordable for these key features. That's a 35% lower entry price for these features. So two models, $12.99, 13.3 inch LED backlit display, a 2 gigahertz Intel Core 2 Duo with 3 megabytes L2 cache, 2 gigabytes of fast DDR3 memory, the NVIDIA GeForce 9400M, 160 gig hard drive, slot loading super drive.

This is a beautiful machine for just $12.99. And second model, $15.99, adds a faster processor, a larger hard drive, and a first for a MacBook, a backlit keyboard. You can get upgrades and accessories, more memory, larger hard drives, a solid state drive, all the video cable adapters. And again, the new MacBooks are shipping today. They should hit the stores tomorrow. So we think the new MacBook is going to be also a huge success. This is the sweet spot of our market. Our customers have been waiting for a product like this for years.

And we're going to give it to them at just $12.99. So two new notebooks, two new notebook families, both have a new way to build. We're building both in a whole new way, a new way to build notebooks from a slab of aluminum to a notebook. New graphics for our notebooks, dramatically faster. A new trackpad that's the best we've ever built. And LED backlit displays that are far brighter, instant on, far more environmentally responsible. And all these great features are now $700 more affordable because we're bringing them down to the MacBook price point.

So two new great portable lines. And I've got a video I'd love to show you if you'd like to see it. Let's run the video. The MacBook is our most popular Mac. But what we've done, and we've made a habit of doing this at Apple, is we decided just to start over. The new MacBook is a quite remarkable engineering achievement. It really represents just a complete revolution in the way that notebooks are made. I mean, traditionally, notebooks are made from multiple parts.

But the problem is when you have multiple parts, you add size and weight, and you increase the opportunity for failure. And the huge breakthrough that we had with the MacBook was to replace all of those parts with just one part. And that one part we called the unibody. We figured out a way of being able to make the notebook fundamentally thinner, lighter, more robust, and with sort of a degree of fit and finish that we've never even dreamed of before. And the only way to make that one part was to machine it from a single piece of aluminum. Aluminum was the ideal choice for this product because it provides us the thinness and lightness that we want in a portable category.

Great strength-to-weight ratio also provides us some really nice options from a finishing perspective. The beginning of the unibody starts with a solid block of aluminum. Then we go through an extrusion process, which is kind of like how you make pasta. And the output of that goes through 13 separate milling operations. We take a part from a solid block down to the finished, finely detailed part that has all of the features that we need to go off and assemble the new MacBook. If you have the expertise to do that machining correctly, you can achieve an assembly method that is simple enough that we can get it right every single time. Machining enables a level of precision that is just completely unheard of in this industry.

We have been so fanatical in the tolerances of how we machine and build these products. In many ways, I think it's more beautiful internally than it is externally. I mean, I think a lot of people are going to say, well, I don't think it's beautiful. I don't think it's beautiful. I think it's beautiful. I think it's beautiful. I think it's beautiful. I think it's beautiful. And I think it's beautiful. And it is externally. I mean, I think that testifies to just our care. I mean, just how much we care. The new MacBook is the most advanced product from the point of view of the technologies that are going into it, the amount of engineering required to create not only the fit and finish of the mechanical part of the product, but also the marriage of electronics and mechanical design to create the kind of refined product that we have.

When you open up a MacBook, it's just all display. The glass display goes right up to the edge of the product. We went with glass and LED for many reasons. This has allowed us to have an aluminum housing that was not only thinner, but more structurally sound. There are a number of advantages in using an LED backlight. For one, the LED backlight is on instantly. There's no warm-up time for the LEDs. It's also energy efficient. LED takes 30% less power than a standard display. What you notice as a customer is the color has a lot more pop. It's brighter. The intensity of the color is higher. And you get a much more vivid display. There's a story behind each part.

When NVIDIA came to talk to us, they were really interested in building very high-performance graphics, but in a desktop chip. What we were interested in was taking that same level of performance and putting it in a portable computer. In graphics-intensive applications, our customers will notice a world of difference. The graphics subsystem in the new MacBook is five times faster than the previous MacBook product. Scenes are rendered with a lot more sophistication. The frame rates of motion are much higher. It's pro-portable-level graphics, but built in a consumer notebook. The new trackpad is made entirely from glass. We've even managed to get rid of the separate button that stole space from the tracking surface. And we did that by making the entire glass trackpad the button.

We were working for months developing just the right texture, just so that the coefficient of friction was absolutely optimal for tracking, gestures, and actually making the click. One of the things I'm most proud of is the environmental story. We've achieved a design that's both ENERGY STAR compliant, as well as rated EP Gold. It starts not just from a concept, but all the way through selection of components, how they're engineered, how they're packaged and shipped, and at the end of the day, how they're recycled. We've set ourselves on a really ambitious plan to remove toxins from the electronics, the boards, the flex cables, things like mercury in displays, arsenic in glass, BFRs and PVCs from all of our internal cables.

Even the packaging of our products has evolved since we focused on the environmental sensitivity of our products. By packaging our new MacBook in smaller packaging, we're able to create more dense palettes of computers, we're able to take less plane space, less fuel, and have a smaller carbon footprint as a result. We've chosen both materials and processes that are the best in the industry from an environmental perspective. I love the way that we don't reserve our very best ideas for the very highest end products. Our very best ideas, all of our innovation, we bring to the most popular Mac that we make.

When you start using it, when you start putting your photographs on it, when you start working on your personal projects, it becomes so much more than just a collection of parts. We've refined and refined every detail in the service of the user, just to get rid of complexity. If something doesn't need to be there, it's not there. I don't know how we could make something any more essential, any simpler, than the new MacBook.