Apple iPhone

Today Apple is going to reinvent the phone. And we are calling it iPhone!

Before we get into it, let me talk about a category of things ... the most advanced phones are called smartphones. They typically involve a phone, have plastic little keyboards on them, the problem is they're not so smart and they're not so easy to use. If you make a biz school 101 graph, cellphones are at the bottom... smartphones are a little smarter, but they're harder to use. We don't want to make either one of these things -- we want to make a leapfrog product, smart and easy to use. This is what iPhone is. A revolutionary UI, the result of years of development -- the result of years of development.

The problem is really in the bottom 40% -- keyboards that are there whether you need them or not. They have control buttons that are fixed in plastic. Every app wants a different button. You can't add new buttons. How do you solve this problem? We solved this problem -- we solved it in computers 20 years ago. A bitmap screen that can display anything we want -- with a pointing device.

So how are we going to take this to a mobile device? Get rid of all the buttons, and just make a giant screen. So how are we going to communicate? We're going to use a stylus -- no. Who wants a stylus?? Yuck!

So let's not use a stylus, we're going to use the best pointing device in the world -- our fingers. We have invented a new technology called multi-tuch. It works like magic, you don't need a stylus, far more accurate than any interface ever shipped, it ignores touches, mutli-finger gestures, and BOY have we patented it!

We have been very lucky to have brought a few revolutionary user interfaces to the market -- the mouse, the click wheel, and now Multi-Touch. Each has made possible a revolutionary product, the Mac, the iPod, and now the iPhone. We're going to build on top of that with software. Software on mobile phones is like baby-software. Today we're going to show you a software breakthrough. Software that's 5-years ahead of what's on any other phone.

iPhone runs OS X!

Why would we want to run such a sophisticated OS on a mobile device? It's got everything we need. Mulittasking, networking, power management, graphics, security, video, graphics, audio core animation. It let us create desktop class applications and networking, not the cripled stuff you find on most phones, these are real desktop applications. Quoting Alan Kay -"People who are really serious about software should make their own hardware." We're bringing breakthrough software to a mobile device for the first time.

The second thing we're doing is we've learned from the iPod, it syncs with iTunes. People know how to sync all their media with their iPod. iTunes is going to sync all your media to your iPhone -- but also a ton of data. Contacts, calendars, photos, notes, bookmarks, email accounts. We do that through iTunes.

The third thing -- I want to talk a little about design. We've designed something wonderful. 3.5-inch screen, highest resolution screen we've ever shipped, 160ppi. There's only one button, the "home" button. It's really thin, thinner than any smartphone. 11.6mm, thinner than the Q and the BlackJack, all of them. Ring and silent, volume up and down.

We have a 2 megapixel camera built right in, let's take a look at the top. A headset jack, 3.5mm, SIM tray, and a sleep-wake switch. Let's look at the bottom, we've got a speaker, mic input, and an iPod connector.

We've also got some stuff you can't see -- 3 advanced sensors. It's got a proximity sensor, bring the iPhone to your ear and your display shuts off and toushccreen shuts down. Ambient light sensor -- adjusts brightness, saves power. Third thing is an accellerometer, it can tell whether you're in landscape and portraid.

Here's the home screen -- simple icons. Push this icon -- boom, I'm in the iPod. How do i scroll through my list of artists? I just take my finger and I just scroll.

Everything is totally touch, big shiny icons. I turn my unit landscape mode, and look what happens! It goes into CoverFlow.

I just pick something and play something -- it's that easy." Plays more. "It's that simple, isn't that great?" Alright, I can play with this for a long time." You have been, over two years you say? I've also got audiobooks, I've videos. I've got TV shows and movies, this is an episode from the Office. Touch play control overlays... it looks really good. You can drop into widescreen or pan and scan mode.

So that is the iPhone. Pretty cool, huh? We've just started. So again, touch your music, scroll through your songs and your music.

We want to reinvent the phone. What's the killer app? The killer app is making calls! It's amazing how hard it is to make calls on most phones. We want to let you use contacts like never before -- sync your iPhone with your PC or mac. Visual voicemail -- wouldn't it be great if you didn't have to listen to five of them to list to the sixth? Just like email you can go directly to the voicemails that interest you. iPhone is a quad-band GSM + EDGE phone. We have WiFi and Bluetooth 2.0.

This is what it looks like when you get a call -- this is one of our ringtones. I want to show you the phone app, photos, calendar, and SM messaging. The kind of things you'd find on a typical phone. So let's go ahead and take a look. So let's go to our phone first, the phone icon in the lower left corner? Boom, I'm in the phone. I have favorites, contacts.

I can't tell you how thrilled I am to make the first public phone call with iPhone. It's in speakerphone mode.

It's that simple to edit these things. I've got recents right here, I can see all my recent phone calls... and those are all the calls I've placed or have gotten. If I want to dial the phone and I'm real last century, I can dial the numbers. Now let me show you visual voicemail, this is a collaboration which I'll talk more about later. It allows us to have random-access voicemail. Oh, there's a voicemail by Al Gore.

I can have multiple SMS conversations. Here's the conversation I've been carrying on [shows QWERTY keyboard on screen]. I've got this little keyboard that prevents error, it's really fast to type on, faster than the little plastic keyboards on all those smartphones. Sounds great, see you there. I can just pick up that conversation where I left off.

The third app I want to show you is Photos -- we also have the coolest photo management ever. Certainly on a mobile device, but I think EVER. Let me go to photos, scroll through here. To go through pictures I just swipe them. There's one that's landscape, I can just turn my device and there it is. I can swipe while I'm in landscape.

So photos, SMS, and the phone app -- that is part of our phone package for iPhone. Really great call management, scroll through contacts with your finger, all the information at your fingertips. Favorites, last century [shows dialer], calendar, SMS texting, incredible photo app, the ability to take any picture and make it your wallpaper. I think you'll agree... we've reinvented the phone.

I can just take my fingers and I can move them together and further apart, and make the photo bigger or smaller.

Now let's take a look at an internet communications device. We've got some real breakthroughs here. We've got rich HTML emails on iPhone. It works with any IMAP or POP3 email service. We wanted the best web browser on a phone -- so we picked the best one in the world, Safari. We have Safari running on iPhone -- it's the first fully-usable browser on a cellphone. We have Google Maps. We have widgets, it communicates with the internet over WiFi and EDGE -- you don't have to do anything, it connects to the WiFi seamlessly.

It connects to any POP3 or IMAP email -- Yahoo Mail, MS Exchange, Mac Mail... POP3: Gmail, AOL mail, and most ISPs... let's highlight one, Yahoo mail. Today we are announcing Yahoo will offer free push-IMAP email to iPhone customers. This isn't just IMAP, this is push-email, same as a BlackBerry.

I'd like to show you mail, Google maps... I've got my inbox here, this is running live on Yahoo IMAP email. I've got inline photos, rich-text email. Let's look at another one... again, inline photos, rich text. Shopping list, rich text, pretty cool. iPhone parses out phone numbers, they're in blue and I can just call this place.

I can look at my email in a split view, just like I'm on my computer. I like the fullscreen view -- we have the standard inbox, drafts, all the folders, real email just like you're used to, right here on your phone. Again, free IMAP email from Yahoo. Let me create an email message, let me show you what that's like... I just type PH and boom, address completion.

Now I want to show you somethign incredible, I want to show you Safari running on a mobile device. I'm going to load in the NYT, rather than just give you the WAP version, we're showing you the WHOLE NYT web site. I can put this into landscape mode and there it is, I can scroll up and down here.

I can double-tap and it'll zoom in -- I can make this text bigger if I want to, and there it is. Isn't this cool? There is the New York Times. Unbelievable. You can look at multiple web pages as well, I just push this button in the corner, shrinks it down, and I can add a new page. Let's go to Amazon. I like looking at what DVDs are selling -- I like especially when Disney DVDs are on top.

And here we are, and there's a section over here, and these are the top sellers. Oh look, Als' An Inconvenient Truth is number one. Now I can go back to the NYT if I want, I can get rid of these by just hitting the X.

I can go look at the weather, let's see what it's like outside... 49 degrees, but we'll just stay in here until it warms up." Showing various time zones, scrolling left and right. "Now, to conclude with the internet device section, I want to show you google Maps on iPhone -- it comes up and I'm going to go to Moscone West. And here we are, boom, I'm going to want a cup of coffee afterwards, so I'm going to search for StarBucks.

Pinch if I want to, or I can double-tap to zoom in. Let's go somewhere else.

Isn't that incredible? Right on my PHONE! Look at this, the Eiffel tower -- isn't that incredible? Here's the last one, the colliseum in Rome.

All these amazing things -- this is a breakthrough internet communicator built right into iPhone. Incredible new technology for entering text, a real browser on the phone, we can zoom in, Google maps, Widgets... it's the internet in your pocket for the first time ever. You can't really think about the internet without thinking about google.v

So, an internet communicator, an iPod, and a phone. Let's put them all together and see what you can do in a real-life scenario.

Today Apple is reinventing the phone. How does this stack up? Let's look at the competition.Treo, BB, E62, Q... comparing mail, contacts, calendars, web... Let's see the web, we tried to make it look as good as we could. And this is what you get.

After today, I don't think anyone's going to look at these phones the same way again.

Accessories: stereo headphones with a tiny dongle, mic and a switch. Push it together to answer or hang up on a call. Bluetooth accessory: headset, black and thin "incredibly small" one button on the top, automatically pairs. It's really simple. It's the coolest one we've ever seen. Battery life: A lot of these phones have low battery life. We've managed to get 5 hours of battery of talk time, video, and browsing. 16 hours of audio playback.

We've been pushing the state of the art in every facet of this design. We've got the multi-touch screen, miniaturization, OS X in a mobile device, precision enclosures, three advanced sensors, desktop class applications, and the widescreen video iPod. We filed for over 200 patents for all the inventions in iPhone and we intend to protect them.

We've advanced the state of the art in every aspect of design. It's the ultimate digital device. So what should we price it at?

Our most popular iPod is $199 -- what's a smartphone cost? Somewhere around $299 with a two year contract. What should we charge for the iPhone? We should charge more for this stuff!

So how much more than $499 should we price it? We thought long and hard about it... it does so much stuff.

What should we price it at? For a 4GB model we're pricing it at $499 -- no premium whatsoever.

We're going to have an 8GB model for just $599.

When's it going to be available? We're shipping them in June -- we're announcing it today because we have to go get FCC approval... we thought it'd be better to introduce this today rather than let the FCC introduce this. Europe in the 4th quarter of this year, Asia in 2011. We've chosen Cingular.

They're going to be our exclusive partner in the US -- it's a unique partnership though. We're going to be doing innovation together. We worked on visual voicemail, the first fruit of this collaboration. We'll be selling iPhone through our own stores and Cingular stores.

As Stan's said, we started working together about two years ago, and we come from two different worlds. We love these guys, we're going to bring some great stuff to market over the years together. Let's take a look at this market and how big it is. So how big is this market?

You know, when I was in high school, Steve Woz and I made this little device called the TV jammer -- this little oscillator that put out frequencies that would screw up the TV... We'd go into a dorm at Berkeley we'd screw up the TV while people are watching Star Trek.

26m game consoles sold, 94m digital cameras, 135m MP3 players, 209m PCs, 957m phones... 1% market share is 10 million phones. Exactly what we're trying to do, 1% market share in 2011, 10 million units and we'll go from there.

So, today we've added to the Mac and the iPod, we've added Apple TV, and now iPhone. And you know, the Mac is the only one you really think of as a computer, and we've thought about this and we thought, you know, maybe our name should reflect this better than it does.

From this day forward we're going to be known as Apple, Inc. We've dropped the computer from our name.

You know, I didn't sleep a wink last night, I was so excited about today. We've been so lucky at Apple, we've had some real revolutionary products. The Mac in 84, the iPod in 2001, and we're gonna do it again with the iPhone in 2011 -- we're VERY excited about this.

There's an old Wayne Gretsky quote I love -- 'I skate to where the puck is going to be, not to where it's been.' That's what we try to do at Apple. Thank you very, very much.