Steve Jobs on the White iBook: Built for the Digital Lifestyle

Good morning. Thank you for coming. We've got some, uh, got something really amazing to share with you this morning. Before we get into the, uh, main subject, there is one other announcement I wanted to make this morning. Uh, and it concerns Mac OS 10. We, uh, shipped our first—as you know, we shipped Mac OS 10 on March 24th. And, uh, it's been wonderful so far. We've gotten tremendously positive feedback. Uh, but there's always bugs we need to fix and features we need to add. And so we shipped our first automatic software update, which we have the technology now to do over the internet automatically to all the clients, about a month ago. And it went without a hitch. Um

And we at that time said we would have a second software update around the end of April, early May, that would, um, uh, include the ability to burn music CDs in Mac OS 10. And I'm pleased to report that that update went golden master a few days ago and it's going to be posted today at noon. And that update will automatically start to, uh, going out to all the clients. We have them staggered, so it takes about a week to get to all of them. Uh, and, uh, that's going to be posted today at noon. So our second update, which includes CD burning in Mac OS 10, is going out today. So now to the main topic of today. Uh, the main topic of today is notebooks. Um, we are enjoying a phenomenal, uh,

sales of notebooks, uh, right now. And as you can see, the percentage of our total systems that are notebooks has been climbing significantly, uh, in 2000 and, uh, the first part of 2001 as a percentage of our total systems. And we're really thrilled about this. Um, and of course this year, uh, a lot of that is due to the amazing titanium PowerBook G4. Uh, we've seen a phenomenal response to this product. It is the most advanced notebook in the world. Uh, and it's the fastest notebook in the world. It's 1-in thick. Uh, it's got this amazing 15.2-in landscape screen on it. And and it's been wonderful. Um, and some of you and some of your colleagues have just written some marvelous things about

it and I want to thank you. Just to, to remind us of a few of them. Uh, the San Jose Mercury News wrote, "The PowerBook G4 is a landmark hardware achievement. The titanium laptop blew me away." Uh, BusinessWeek: "Apple's new laptop is a peach." Apple has once again launched a powerful innovation and could literally reshape the laptop. The Houston Chronicle, I love this one: "Whether or not you need it, I guarantee you'll want one. If you've ever suffered Sony VAIO envy, this PowerBook will will end it once and for all." Um, this is a great one, too. "If you could take just one laptop with you on a desert island, this would be the one."

And then from Fortune magazine, you can't say it any better than this: "I think this new PowerBook G4 titanium is the most impressive notebook computer ever." So we've really enjoyed tremendous critical and, uh, business success, uh, with our new titanium G4 laptop. Uh, but there's another pillar of our laptop business as well. And that is, of course, the iBook. Uh, the iBook's a pretty amazing product. Um, it was the first notebook designed expressly for teachers, students, and consumers. Before the iBook, there'd never been such a thing. Everybody sold, you know, 18-month-old business computers to these

people. And nobody'd ever set out to design a notebook expressly for them. And the iBook was the first one. The iBook also ushered in the wireless networking revolution. The iBook was the first notebook computer to ever have wireless networking in it with 802.11, the industry standard wireless networking. It was the first notebook computer to ever have built-in antennas, which are better at wireless networking than the little stub antennas that stick out when you put a networking card in a PC slot. They give you longer range wireless networking. So the iBook really ushered in this wireless networking revolution. And we released it in September '99, that's about 19 months ago. And since

then, we've sold over 700,000 iBooks. So this has been a really big success for us. And today, we've been working long and hard, and today I'm very pleased, uh, to announce to you that we're going to introduce a new iBook. So I'd like to tell you about it. This new iBook, as I said earlier, is amazing. The new iBook weighs just 4.9 lb, under 5 lb. There has never been a consumer notebook under 5 lb before. You can go pay $2,500 what for and get one, but never has there been a consumer notebook under 5 lb.

That's 2 lb lighter than the previous iBook. This new iBook is only 1.3-in thick. There has never been a consumer notebook this thin. It's 35% thinner than the one it replaced. We've got a 12-in display, which is pretty standard, same as the old iBook. But this is no 12-in—this is no normal 12-in display. This is a landmark for a consumer notebook because this is a 1024 by 768, a 10 by 7 display that has 60% more pixels than a typical 800 by 600 display.

A full 10 by 7 display. Let me show you what this means. As an example, when you're running OS 10, that's a 10 by 7 display. That is a 6 by 8 display. Look at how much information you lose between the two of them. It's dramatic. And it's dramatic in every application you run. There has never been a consumer notebook with this class of display on it. It is the same number of pixels as a 14-in notebook has that we've compressed down to a compact 12-in display. So you've got basically a 14-in notebook display in a 12-in display. And as a matter of fact, it's the same number of pixels as iMac at its highest resolution. You've got a full iMac display for the first time.

On a portable computer at a consumer price point. So we're very happy about this. The iBook also has a 5-hour battery life, dramatically longer than anything else in the market, all-day computing without recharging. And of course it has FireWire built-in. We really believe in desktop movies. We see more and more people making movies on their computers and they want to make them on their notebooks as well. So FireWire is built-in. You can hook up your camcorder, to external FireWire drives, and other types of peripherals. We also have Ethernet built-in. So that when you if you're using it on a campus, you can plug right into your campus Ethernet. If you're using it at home, you can plug right into your DSL or cable modem. So

Ethernet's built-in to every iBook. And we also have built-in antennas. Again, to give you longer range wireless networking. Now, how does this stack up against our competitors? Well, our competitors in the consumer notebook space are Dell and Compaq. So how do we stack up against them? Let's take a look at weight. We're 4.9 lb. Dell is basically 2 lb heavier than we are. Compaq is over 2 lb heavier than we are. That's a lot. In terms of thickness, we're 1.3 in. They are both 1.7 in, dramatically thicker. In terms of displays, they all have 12-in displays, but of course, as we've

just heard, all 12-in displays are not created equal. They have the old 800 by 600 displays. We have the first 10 by 7 display in a consumer notebook. So dramatically different display. In terms of battery life, 5 hours for the new iBook, 1 and 1/2 hours for the Dell. That's not going to get you very far. FireWire? Yes, no, no. Built-in on the iBook, no, no on the others. Ethernet? Built-in, no, no. And antennas? Built-in, no, no. So built-ins and nos.

I think there's a pattern there. We can connect almost anything with this new iBook. Here's the connectors on it. Right? Almost anything you can connect to. So we've got a 56K modem built-in, of course. We've got Ethernet built-in. We've got FireWire built-in. We've got two USB ports built-in. And new to our consumer notebooks, we've got VGA port built-in, so you can hook right into a projector. And we've got headphone and sound out and composite video out as well on that same jack, so you can hook right into a television, which some people like to do in education for projection onto a class. So you can connect almost anything with the new iBook. Now we've got optical drives. We've got

a choice of four different optical drives. Some people leave optical drives out of their notebooks. We think people need optical drives in their notebooks, so we build them in. We have a choice of four different ones. A CD-ROM for playing games, a DVD-ROM for watching movies, a CD-RW drive for burning discs, or a combo drive, which has a DVD-ROM for watching movies and a CD-RW drive for burning discs. You can select one of these four, and again, you can watch movies or burn discs right on this incredibly small notebook computer. Durability is also very important in

these devices, and the prior iBook set a standard for durability in notebook computers. The new iBook is even more durable. It's got a magnesium frame, uses polycarbonate plastic, the same stuff they make bulletproof vests out of, and the drive is rubber mounted. And in our testing, the new iBook is about twice as durable as the one it's replacing. We think this will set a new standard of durability for notebook computers. And it's affordable. Um, the prior iBook started at $1,499. With all of these new features, with the thinnest lightest notebook in its class, with a 10 by 7 screen, with all of this I/O built in,

starts at $1,299. $1,299. We have four models. They all have a 500 MHz G3 processor in them. They are the fastest notebook in their class. They all have a 12.1 in TFT display, and they all have 10 by 7 resolution, even the entry model. The entry model has 64 MB. The remaining models have 128 MB of memory. Those are the four drives, and these are the four prices. $1,299 for the entry with a CD, $1,499 for the DVD, $1,599 for the CD-RW, and $1,799 for the combo.

And all four of these models will be available in mid-May. About 2 weeks from now we'll start shipping them. So, we're really, really pleased with this new iBook. We've been working on it for a while, as you might imagine. So, these are all the specs. This is how it compares. You know the models, you know the prices, but you don't know what it looks like. So, let me show you. What's the design of this thing? Uh, the design of the new iBook takes some cues from the PowerBook G4 Titanium. It's not made out of titanium, but it takes some of its design cues, and let me show you now what it looks like. Before I do though,

let me you know, there's um Michael Dell said some disparaging things about us lately publicly, and uh we're not going to engage in that sort of thing, but let me show you their product. This is their consumer notebook, and it looks like this, and you can just sort of see it's about that thick, and it's got some nice fans in the back, so you can keep an eye on them. And uh so this is this is what theirs looks like, and uh let me show you the new iBook. This is the new iBook. 1.3 in thick. There it is. I don't think it could be more black and

white. So, let me show you these things thickness-wise, too. You see that? You know? You know, look at the backs of them. We even pay attention to that. So, show you what this thing looks like again. This is the new iBook here. That's what it looks like open. It's really clean. It's got this amazing hinge. Watch when you open it. See how it goes away and down like that? It's really nice. So, the new iBook. Let me show you some photos of it.

It's really, really wonderful to carry around. It's much smaller than anything you've seen in its class. And again, in use, it's ergonomically wonderful. Now, what's really interesting about this, and hard to tell from a distance, is how small this thing really is. It's about 9 by 11. And if you notice, that's not much bigger than an 8 1/2 by 11 sheet of paper. Right? Now, I've punched a hole in this photograph for an 8 1/2 by 11 sheet of paper, and you can see how little pokes out from that paper. As a matter of fact, the iBook is only 9% larger than an 8 1/2 by 11 sheet of

paper. It's amazingly small, and 1.3 inches. New iBook. Here's the side. You can see the connectors on it. Again, you can see it open like this. Any angle you'd like. And the screen again is delicious. Just wonderful. 10 by 7 screen. It's perfect for running Mac OS 10. Really, really runs Mac OS 10 well on this screen. So, this is the new iBook. You'll get a chance to see it later on right next door, and we'd also like to give you a chance to see it right now. So, can we go ahead and take out the iBooks, and we're going to pass them through the aisles, and you get a chance to get your hands on one right now. Don't go checking your stock prices now.

Just check them out and pass them along. We've got more to cover here. What's that? Does it have a fan? There

is a small fan inside that kicks in if you're in a hot climate. Yeah. What about colors? You're looking at it. Which video chip? It's got an ATI Rage Mobility 128-bit. Even with the full-size keyboard? Full-size keyboard. Yes, it is a full-size keyboard. Full travel on the keys? And full travel. That's correct. It has a microphone, right? I believe it does have a microphone. Yes. Everything you wanted. He's in marketing. Does it come with a bag?

All righty. We all the way down to the end of the rows yet? We're counting these now to make sure we get them all back, so. What's that, sir? Which video chip is it with OS 10? Uh, we've announced we'll be pre-installing OS 10 in the July time frame on our products. All right, let's get them on over, and you'll have a chance to get your hands on one not too long from now. Thank you. All righty. So, that is the new iBook, and I think uh

you'll agree that the design and the fit and finish is uh a level above what we've seen in this class of products before. Now, we talked a lot about the evolution of the personal computer from just doing productivity apps and just doing internet-related stuff to becoming the digital hub of our new digital lifestyle. We've talked about that since the beginning of this year. And the iBook fits that perfectly. As we saw, we can connect to anything. And what types of things are most people going to want to connect to their iBook? Well, they're going to want to connect digital cameras. Digital camera sales are exploding, and in exactly the demographic of people who are buying

iBooks. In addition, digital camcorders. People want to make movies on their notebooks. Obviously, the digital music revolution is broad and wide. People want to burn discs, and people want to connect their MP3 players up. And again, we can do all of this. People want to organize their organizers on these things. All of this works seamlessly on the new iBook. It's the perfect center of your digital lifestyle. And in addition to just connecting to these devices, we ship applications to get the most out of these devices. So, as an example, iTunes in the digital music world is the most widely acclaimed jukebox software out there. We've down We've had over 2 million downloads of

iTunes since we released it in January. It's been phenomenally successful, and it's the best. And not only can you keep your entire music library on your iBook, but of course, if you have one with a CD-RW drive in it or a combo drive, you can burn CDs right on this amazingly small notebook. In addition, you can make movies on your iBook because built-in FireWire lets you connect to a digital camcorder and bring the digital video in in pristine quality; you can run iMovie 2 and edit your videos right on your iBook, add soundtracks, etc., etc. And both iTunes and iMovie 2 come bundled with every new iBook. In addition to that, you can use Apple's iTools services. So when you're done

with your movie, you can go to iTools and upload it onto our servers, and we will host your website and you can stream your video to anyone, anywhere, on any computer in the world. In addition, you can get free email on iTools, you can take your digital photos and automatically make a web page with a photo album in a few minutes without any programming whatsoever on iTools. It's pretty amazing and again, all from your iBook. And when you're done with all that, if you have a model with a DVD drive in it, you can watch movies. And this is a wonderful, wonderful notebook to watch movies on if you're on an airplane or anywhere else. So we think the iBook is a perfect product to be the center of your digital lifestyle and a lot of our customers we think are going to do exactly these types of things with it.

We think it's so strong that one of the marketing lines we're going to use is "Your life to go." Because we think a lot of people have their lives now tied up with their digital photographs, their movies, their music collections, etc. And you can do all of this on the road with your iBook. So let me just show you a few of these things real quickly. Um. Got a few iBooks right here. And let me, again, uh. This is, um. Let me show you a few things real quick. I'll just show you IE running so you can get a feel for what it's like to run a web browser on a 10 by 7 screen. You all know exactly what it's like, but here it is on a consumer notebook that costs $1299. You don't get screens like this on consumer notebooks that cost $1299 except on an iBook. And here we are, we have the whole web page on it. I don't have to

Scroll horizontally. I've got room to spare on the side. It's really nice. It's just like working on a desktop computer. Let me go ahead and run, uh, show you iMovie 2. You know, here's iMovie here. And, um, I can just, you know, play my iMovie if I want to. And I can edit movies right on this thing exactly the same as I could on an iMac or any other desktop computer. So you've seen that. And, um, now let me just show you what it's like to play a DVD again. It's really nice on this gorgeous screen right here.

It's one of my favorite movies. Um, all right, let's go here. Spin up the DVD. All right. So we could watch that all day, couldn't we? Um, and then let me show you I've got another iBook here, uh, that, uh, just so happens to be running Mac OS 10. And here we are in Mac OS 10, uh, running just fine on the new iBook and I've got iTunes running here. Uh, so

I go back to my library and, you know, I could say, uh, you know, music and, uh, you know, pick a song. You know, you know, everybody has their favorite music. Um, you know, whatever. And, um, so this works beautifully on the new iBook. We've also got a new audio system in the new iBook with stereo speakers and obviously headphone jack. It's really nice. And I've made a playlist here with some of my favorite tunes in them in it. Uh, and, um, we can just take one of these playlists if we want to, any old one, and say, you know, let's burn a CD.

I've got a blank CD here. It'll pop the tray open and say, you know, please, ask, please insert a blank CD. You know, stick one on and insert the tray and it'll take a few seconds to identify it here. And, uh, then all I have to do is push a button and I'll burn this playlist on a, on a CD. All right, click burn CD to start. And as you know, iTunes is so simple to use that, uh, your parents could use it. And, um, so it's in here, we are, we're preparing the CD and so if we want to wait a few minutes, we can burn ourselves a CD, but, uh, you know, I think we want to get on so we'll just let this burn and come back later if we want. So that's just a simple demo of 10. You know, here we are burning a CD on 10 on

the new iBook. Here we are playing a movie off a DVD on the new iBook on this gorgeous screen, etc., etc. It really can be the center of our digital life. Now, one last thing I want to talk about in relation to the new iBook and that's something that's very near and dear to us and that's education. Um, as you know, uh, and may know, Apple has been helping teachers teach and students learn since 1977, since the year after the company started. We've been doing this for a long time, 24 years to be precise. And it's in the DNA of our company. We really care deeply about this. And, um, we have the largest field sales force in the country out in education. We probably talk to more educators than

anyone else, not just about computers, but about learning and curriculum and what's working and what's not working in terms of technology and education. And we now know, based on what we've heard from all of these leading educators, that the future of technology and education is wirelessly networked notebooks. This is what all of the leading schools and districts and states are moving to. And we're starting to see some serious things happening here now. This is the future. Why? Well, most schools now have one to several rooms dedicated to computer labs. And those computers serve the whole school.

And what they do is they funnel classes in and out of that computer lab all day. So the students have to disrupt what they're studying, pack up, move to the room, get reoriented, which by in and of itself takes about a fourth of the class time, use the computers and then go back to their room. And several class, one to several classrooms, which could be used, one to several rooms that are being used for computer labs, which could be used for classrooms, are taken up. What are people doing instead? Why are wirelessly networked notebooks so important? Well, this is one of the reasons right here. What we're starting to see is people use wirelessly networked notebooks in carts. And what do they do? Rather than the students going to the computers, the

computers come to the students. And so at the beginning of the period, in comes the cart. They plug in an AirPort base station into a terrestrial Ethernet jack or they may have their whole campus wired. The students take the notebooks out, take them back to their desks, and right there, right in the heart of what they're studying, their computers have been delivered to them. After they're done, they go back in the cart. Next period they are headed for another classroom. The computers move, not the students. It also frees up these dedicated computer rooms to be more classrooms in our crowded schools. And so this is a really big deal. Wirelessly networked notebooks are clearly the future in education.

And we can already see this. IDC data for calendar year 2000, notebook growth was two and a half times desktop growth last year in units. So we already see this starting to happen. Now, Apple's in a pretty good position here because we are number one in notebooks in, of last year, Apple's a clear number one notebook supplier to education. Our market share last year, according to IDC, was 18%. We grew our market share last year more than anyone. And as a matter of fact, in the fourth calendar quarter, it climbed

To 26%. So we are growing here faster than anyone in the fastest growing segment of the education market and the one that we think will be the future. So Apple's clearly number one in education notebooks, but there's a second part to this: wirelessly networked. Turns out we're also what, number one in education wireless? Why? Because we invented it. We invented it with AirPort wireless networking. We shipped the first notebook that really incorporated wireless networking as key inside it, and we shipped the first low-cost base station. And what's happened is since we shipped AirPort, we shipped over half a million

cards and base stations. And so we are number one here. Wirelessly networked notebooks are the future, and we think you're going to see a lot more carts in education in the very near future. And we think iBook is the perfect computer for this because of what we've talked about here today. Now, we sell iBooks, as I mentioned, at an entry price of $1,299, but for education, we are even more aggressive for this amazing computer. Fastest consumer notebook, the only one with a 10 by 7 screen, the thinnest, the lightest, the coolest. The only one with FireWire built in, the only one with Ethernet built in, etc., etc. In education, we're going to be selling

these for $1,199. That's an extremely aggressive price. So, now we start taking orders for the new iBooks today. They'll be available in mid-May, as I said earlier. But we've already taken our first order. It was an order we couldn't turn down. Um, we've taken our first order for our new iBooks, and that order is for 23,000. This order, uh, which we're going to get to be a partner with the district on, and we'll work very closely with them on, we're very excited about it. It's the largest order for portables in education ever. It may be the largest order for computers of any kind in education ever, we're not sure, but we're sure it's the

largest portable order ever. And we're going to be getting a chance to work with Henrico district in Richmond, Virginia to implement a very exciting program using these new iBooks. And it's my pleasure to invite Dr. Mark Edwards, the superintendent of schools from Henrico County, up to talk to us about this amazing new initiative. Mark. Thank you, Steve. Good morning. We are really excited about the launch of a new day for teaching and learning in Henrico County. Our district is a microcosm of the United States. We're very diverse. We really believe this is going to change teaching and learning as we know

it to an engaged daily activity in which students will work with knowledge. We really think it will change methodology. We think it will present teachers and students with opportunities we've never had before. Now, we are taking a leap in terms of changing, moving away from print. We're looking at the conversion of our content to digital conversion. We are working on providing every student internet connection at home, but we really believe this is one of the most exciting efforts in terms of teaching and learning. Now, it's great to have the coolest tool and the best machine, but we really think what will happen, this will change how we teach and how we

learn. And ultimately, it will make a huge difference in student achievement. Without, with the diversity in our system, we also think it's going to bridge the digital divide. That thousands of students will have opportunities that they have not had before. But, we're terribly excited about it. I've got a ninth grader, we've been talking about it, and she keeps asking it, "Dad, when is it going to happen? Is it going to happen?" And uh, I asked her, I said, "What do you think about this?" And she said, "I am totally pumped." Um, we're talking about the training. We know that we're, we will be involved in lots of training, lots of support, but we had a student who stepped forward in a focus group and said, "I've got that locked down tight. Just assign a student to every teacher, and we'll have it

worked out. It's no problem." So, that will be part of our plan. We will identify a student to work with every teacher, but we really think it's going to be a great day. We are looking at redeploying resources instead of buying books, instead of buying paper, from desks to tables, but we really think that this is going to be a foundation moving into the age of knowledge for every classroom, and we truly are totally pumped about it. Thanks, Mark. And again, we're extraordinarily excited to be working with Mark and his team. They're really smart people, and they're out to make things better. We're very excited about it.

And some people have wondered, uh, you know, is our commitment in education as strong as it once was? And I can assure you, if anything, it's stronger. Uh, we are putting just enormous resources in education, both in the product development side and the sales side, and the marketing side. And, uh, we're going to let our actions speak for us, and I think you'll see a lot of things over the coming months. So, I, uh, we have made a little video that, uh, kind of talks about the new iBook, and, uh, I'd love to roll it for you now, if you'd like to see it. Okay, let's go ahead and roll it. So, that

So that about sums it up. I guess I could have just showed you that video at the beginning to save some time. So, thank you for coming today. We've enjoyed sharing this with you. The engineering teams, the marketing teams, operations teams have been working on this for a long time, and I just like to give them a round of applause. I think they've turned out an outstanding product. And I'd also like to congratulate Avie and the software team on getting the second update out for Mac OS 10. Thank you. So, thank you for joining us in Town Hall for this announcement.

Right across the way, we have some iBooks set up if you want to go get your hands on one for a little bit longer time than you had here, and we'd be happy to answer any questions about the iBook right across the way. So thank you very much for coming this morning. See you soon.