MacWorld 2007 keynote notes

Published by in apple on January 9th, 2007

These are my notes from Steve Jobs’ keynote at MacWorld, January 9, 2007.

Thank you for coming. We’re going to make some history today.

We switched to Intel processors in 7 months
- smoothest and most successful transition in the history of the industry

Over half of Mac sales across the US are being sold to switchers

- showed a new Windows Vista Mac ads

2007 is going to be a great year for the Mac
- but today, that is all we are going to say about the Mac

Now on to some updates
- Our music business
- iPod Nano is the world’s must popular mp3 player
- great lineup for

Several things about iTunes
- have sold over 2 billion songs on iTunes (purchased and downloaded)

Got 2nd billion in 3 months
- doubled songbase in iTunes in 2006

Are selling over 5 million songs per day on iTunes, 58 songs every second
- last time we talked, iTunes was 5th largest music seller behind Walmart, BestBuy, Target, and Amazon
- have no passed Amazon, are now #4

Now update on TV shows
- have over 350 TV shows on iTunes now
- have sold 50 million TV shows on iTunes

Movies
- pioneering partner was Walt Disney on TV and movie sales
- in first four months of selling movies, have sold 1.3 million movies in first 4 months
- exceeded all expectations

Today, Paramount is joining Disney in selling movies on iTunes
- 100 movies offered so far on iTunes
- now increasing to 250
- hope to add more as more studios join in

Had very strong lineup of music players
- new competitor: Microsoft’s Zune
- how did they do? not sure because data for Dec not out yet
- Microsoft got 2% marketshare, iPod 62%, others 36% in November (Zune launch month)

Have some new iPod ads (showed 2)

That was update to music business

Now: Apple TV (code name was iTV)
- a way to enjoy your media on your bigscreen TV
- previewed this in September
- you can buy great content on the iTunes music store
- can also put content on your iPod
- can now wirelessly tranmit content from your Mac to your TV
- connectors: Power, USB2, ethernet, HDMI, component video, WiFi networking, audio, optical audio

(no composite out)

720 P
- 40 GB hard drive
- 50 hours of video
- 801.11, all 3 popular standards: b, g and n
- intel processor to do user interfaces we like to do
- works with video, music and photos
- designed for widescreen TVs
- can auto-sync from one PC and stream from up to 5 computers
- can set up your Apple TV to automatically sync up most recent programs

PCs or Macs can do the streaming
Demo
- when you go to the movies screen, top choices are iTunes Top Movies and Theatrical Trailers
- showed trailer of “The Good Shepheard
- showed excerpt from movie “Zoolander”
- went into television show Heroes

Now Music
- great for listening to music on your home theater
- can shuffle songs, shows album art, flips back and forth to not

(Steve skipped over the podcast option)

Photos
- digital pics are high def
- can stream photo slideshows directly (like playing from iPhoto slideshow)

Under sources
- can choose other sources
- shows a PIN number, then the other source can authenticate to your Apple TV
- Phil Shiller showed TV excerpt from 30 Rock

Apple TV priced at $299
- will ship next month, in February, taking orders starting today
- enjoy your media on your big screen TV

This is a day I’ve been looking forward to for 2 and a half years
- every once in a while a revolutionary product comes around that changes everything
- one is very fortunate if you get to work on just one of these during your career
- in 1984, we introed the Macintosh, it changed the whole computer industry
- in 2001, we introduced the first iPod: didn’t just change the way we all listen to music, it changed the entire music industry

Today we are introducing 3 revolutionary products of this caliber

1: Widescreen iPod with touch controls

2: REVOLUTIONARY MOBILE PHONE

3: BREAKTHROUGH INTERNET COMUNICATOR

iPod / Phone / Communicator
- these are not 3 separate devices
- this is one thing
- we are calling it: iPhone
- today Apple reinvents the Phone

showed image of original iPod with a rotary dial phone interface

Most advanced phones are now called “smart phone”
- combine phone with email, and the baby internet
- have plastic keyboards
- problem: they are not so smart, and not so easy to use

show graph: x axis easy to use, y axis smart

we want to make a leapfrog device that is way easy to use, and very smart
- in upper right corner of the graph

starting with a revolutionary UI
- result of years of R&D
- interplay of software and hardware

Compare MotoQ, BlackBerry, Palm Treo, Nokia E62
- problem is the lower section: control buttons fixed in plastic
- each application needs customized interfaces
- doesn’t work because buttons and controls can’t change for each appliation
- how do you solve this?

We solved it in computers 20 years ago: a bitmapped screen that can display anything we want, any UI, and we solved it with the pointing device (mouse)

we are jut going to make a giant screen
- we don’t want to carry around a mouse
- use a stylus? no. you can lose it, have to put it away, etc
- we are going to use the pointing device we are born with: our finger!

New technology: multi-touch
- works like magic
- don’t need a stylus, far more accurate than any touch display ever shipped
- multi-fingered gestures
- patented!

Revolutionary user interfaces
- mouse
- click wheel
- multi-touch

Each of these revolutionary UIs have made revolutionary products possible: the Mac, the iPod, and now the iPhone

Software on mobile phones is like baby software
- today we are going to show you software that is at least 5 years ahead of

iPhone runs OS X!
- why run such a sophisticated operating system on a mobile device
- sncying, networking, multi-tasking, low power, security, video, cocoa, core animation, graphics, aduio

THIS IS THE FIRST OS X IPOD

This is desktop class, not the crippled stuff you find on most phones

Quotation from Alan Kay: “People who are really serious about software should make their own hardware”

We are bringing breakthrough software to Phones
- syncing with iTunes
- are going to ship 100 millionth iPod this year
- tens of millions of people know how to sync their iPod and media
- are going to do the same thing with iPhone

Going to sync all your content onto your iPhone
- also a ton of data
- contacts, calendars, photos, notes, bookmarks, email accounts
- along with music, audiobooks, movies, all iPod content

CAPACITY ON SCREENSHOT OF IPHONE ON ITUNES LOOKS LIKE 8 GBa

Design
- something winderful in your hand
- 3.5 inch screen
- 160 pixels per inch (ppi)
- just one button at the bottom, the home button
- is thinner than any other smartphones 11.6 mm
- on back: 2 megapixel screen
- headset jack on top
- try for sim card
- sleep and wake button at top
- speaker, mic, and 30 pin iPod connector (same connector)

Stuff you can’t see
- 3 advanced sensors
- proximity sensor
- when you bring it to your ear, it turns off display and turns off touch interface
- ambient light sensor
- accelerometer, can tell when you switch to portrait to landscape

Fits beautifully in the palm of your hand

iPod
- you can touch your music
- widescreen video
- find your music faster
- gorgeous album art
- cover flow for first time on an iPod

To turn it on, use your finger and drag the slider
- just drag your finger to scroll
- buttons at the bottom determine mode

When you turn it, it goes right away from landscape to portrait mode
iPod options:
- playlists, artists, songs, videos, more

can with a click switch a widescreen formatted DVD to fullscreen mode

Pretty cool, huh! We just started!
- widescreen video like you’ve never seen it before
- cover flow (album art is scrolling left and right, other things can flow left to right too)

on screen controls

someone at apple who just saw the demo recently said, “you had me at scrolling”

THE PHONE
- we want to reinvent the phone
- the killer app is making calls
- most people actually dial their numbers most of the time
- lets you use contacts like never before
- have everyone’s numbers
- have visual voicemail
- wouldn’t it be great if you got 6 voicemails and you can go directly to the ones that interest you
- Quad-band GSM + EDGE phone
- went with most popular standard internationally: GSM
- plan to make
- also have Wi-Fi and Bluetooth 2.0

Want to show 4 things
- phone app
- photos
- calendar
- SMS messaging (texting)
- things you would find on a typical phone, but in an untypical way

Phone choices
- favorites, recents, contacts, keypad, voicemail
- example: Jony Ive
- with one button, add as a conference all
-simple touchpad dialing
- great integration

Visual voicemail
- allows us to have random access voice
- listen in any order that you want

Now SMS texting
- not only SMS texting, multiple sessions, can carry on multiple conversations with different people (threading)
- keyboard does error protection and prevention
- interface just like iChat

I AM WONDERING AT THIS POINT IF THIS WILL VIDEOCONFERENCE (I BET THIS WILL)

Now photos
- go through photos, scroll through with your finger
- can just swipe through photos, if something is landscape you can just turn the device to view it
- can take any of these and make them bigger
- we call this “the pinch”

I AM THRILLED IT HAS A BUILT-IN 2 MEGAPIXEL CAMERA

You’ll agree when you get your hands on it, we have reinvented the phone

Now the internet communications device
- we have some real
- rich HTML email
- any IMAP or POP3 email service
- favorite mail service: it will likely work with it
- Safari web browser: first fully usable HTML browser on a phone
- Have Google Maps: maps, satellite, directions, traffic
- have widgets: weather and stocks
- and commnicates over Wi-Fi and EDGE networking
- seamlessly switches to the WiFi network when detected

talk about email
- examples: IMAP best, folders on the server: Yahoo Mail, MS Excchange. .Mac Mail
- POP3: Google Gmail, AOL mail, most ISPs

highlighting Yahoo Mail
- is the biggest mail service in the world
- have over a quarter million users
- today announcing: yahoo will provide free “push” IMAP email to all users
- will push email right out to the phone when you get it, same as a blackberry

Now going to show Mail, Safari, Google Maps, and Widgets
- inline photos, rich text email
- can just touch phone number in an email and call that number
- did demo of sending an email

Now Safari running on a mobile device
- loading the NYT
- entire website, not a WAP version
- can double tap anything to zoom in, can make text bigger
- can look at multiple webpages
- add a new page, DVD section of Amazon

If you have ever used a web browser on a web phone, you’ll know how amazing this is!
- this is a revolution of the first order, to bring the REAL internet to your phone

Now widgets, loading stocks and weather

To conclude the internet device section, now Google Maps on iPhone
- going to Moscone West (where we are now)
- now put in Starbucks, can call the number right away
- can zoom by double clicking or pinching
- can flip between maps and satellite images
- unbelievable!

All these amazing things
- this is a breakthrough, revolutionary
- all with EDGE and Wi-FI networking

MY THOUGHT: IT IS AMAZING TO SEE OS X ON A HANDHELD

- it is the internet in your pocket, for the first time ever

On Google partnership
- can’t think about the Internet without thinking about google
- we have google search built right into the browser

Now introduce Dr. Eric Schmidt, CEO of Google
- we could merge the companies and call the
- you can merge without merging
- each company should do the absolutely best they can do each time, and Steve has shown this today

Internet architectures let you combine brain trusts
- particularly like the way this has come together in one place
- Google has worked hard to partner with Apple, focus on innovation, working hard and having fun while you’re doing it
- understand this is a set of data from maps, partners, you really can get the full integration
- it was very difficult

this is the first of a whole new set of data services
- tapping a cloud of computers
- congrats to Steve

Can’t think of the Internet without thinking of Yahoo
- on phone, yahoo search is built right in (can choose the one you want)
- also have Yahoo IMAP services

Now intro Jerry Yang, co-founder and Chief Yahoo!
- are proud at Yahoo to be partnering with Apple, not only on this but hopefully also a host of other services
- Yahoo go, yahoo one search, hopefully will be able to integrate that
- basically like having a blackberry but without an exchange server
- lastly, want to take what Apple is doing with reinventing the phone, and doing that on the Internet

MY THOUGHT, THIS WILL GREAT WITH GROKKER AND VISUAL WEB SEARCHES

Steve
- it has been great having the 2 greatest companies on the web right down the block: Google and Yahoo

Lets put all these tools together and see what you can do in a real live scenario
- listening to iTunes
- get a phone call
- go to photos
- tap address, and send to someone
- still on the call, goes to Fandango
- when call hangs up, it goes right back into your music

I LOVE THIS!!!!

Now comparing this to contacts, mail, calendar, web, music players to competitors
- accessories with iPhone
- addition to headphones: is microphone and a switch, great reception, push it to answer or hang up on a call
- also have bluetooth headset, very small and very simple

Battery life
- this is a lot of stuff
- many
- have managed to get 5 hours of talk time / video / web browsing
- 16 hours of audio playback

lots of high technology in iPhone
- have pushed state of the art in every facet of this design
- multi-touch screen (a first)
- more miniturization than ever before, lots of new silicon
- power management
- OS X in a mobile device
- 3 advanced sesnsors
- desktop class aps
- widescreen

Filed for over 200 patents in the inventions in iPhone, and we intend to protect them
- this is the ultimate digital device

What should we price this at?
- most popular iPod: $199 for 4 GB
- most smart phones are around $299 to $399
- no one uses these
- people spend $499 for the combination phone and iPod (has video, widescreen, multi-touch, wifi, safari, html email, cover flow, etc…)

For 4 GB: $499 with 2 year contract
For 8 GB: $599 with 2 year contract

When available: shipping in June 2007 in US
- have to get FCC approval
- going to Europe in Qtr 4
- to Asia in 2008

Our partner will be Cingular: #1 in US, 58 million subscriber
- will be exclusive partner in US
- visual voicemail is the first fruit of this collaboration

Will be selling these in Cingular stores

Intro CEO of Cingular: Stan Sigman
- entered into a contractual agreement without ever seeing the device

The new AT&T
- 11 days ago Cingular become full part of
- Will help bring about the vision: wireline, wireless, broadband, and video coming together
- Cingular and Apple are truly raising the bar
- taking the mobile phone experience
- best network with the best device
- networks are the foundation of what Cingular and AT&T do
- Cingular network has fewest dropped calls
- AT&T is the largest provider of broadband
- quality of AT&T is legendary
- putting these together with Apple products: best voice and data services, with the best user experience available anywhere
- you get real compelling products and services
- visual voicemail
- took innovation

2100 Cingular stores partnering with Apple stores
- unmatched distribution
- we are pleased to partner with Apple, to deliver one of the most anticipated phones
- this is just the beginning
- we are changing the way companies work together
- Apple and Cingular have a multi-year exclusive partnership
- iPhone is only available with Cingular, not MBNO, is a unique relationship that lets each company be themselves
- our customers will get the best network and services in the industry
- Apple, Cingular, and AT&T have come a long way, and are now picking up the pace

Steve
- we started working together 2 years ago
- come from different worlds
- we love these guys, we are going to bring some great things to market together in the years ahead

How big is this market

When I was in high school, Steve Wozniak and I made a device called a TV jammer

2006 Units
- Game consoles: 26 million
- digital cameras (4 million
- mp3 players: 135 million
- PCs: 209 millon
- mobile phones: 957 million

So if we get 1% marketshare that is HUGE!

Today we have added to the Mac and the iPod, added Apple TV
- Mac, iPod, Apple TV, iPhone

The mac is the only one you really think of as a computer

Now are dropping the “computer” from our name, and our name is “Apple Inc.”

THIS REFLECTS HOW APPLE IS REALLY NOW MUCH MORE THAN A COMPUTER COMPANY

1984: Macintosh
2001: iPod
2007: iPhone

Wayne Gretsky: “I skate to where the puck is going to be, not where it has been.”

We have a really great treat today
- John Mayer agreed to come and perform for us today
- he is a 3 time Grammy winner, and he has been nominated for 5 Grammys today

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