Apple Keynote iPhone 5 – Special Event September 2012 (Full Transcript)

Title: Apple Keynote – iPhone 5, iPod & iTunes 11 – Special Event September 2012 (Full Transcript)

Event Date: September 2012

Speaker (s):

Tim Cook – CEO, Apple Inc.

Phil Schiller – SVP, Worldwide Marketing, Apple Inc.

Rob Murray – Executive Producer, EA Studios

Jeff Robbin – Vice President of iTunes, Apple Inc.

Eddy Cue – SVP, Internet Software and Services, Apple Inc.

Greg Joswiak – VP of iOS and iPhone Marketing, Apple Inc.

Tim Cook – CEO, Apple Inc.

Good morning. Good morning. Good morning. Good morning, thank you. Thank you, thank you. Thank you.

Thank you for coming this morning. We’ve got some really cool stuff to show you. It’s an amazing time at Apple, an extraordinary time and I’d like to show you some of the things going on, I’ll start with a few updates beginning with Apple Retail.

This is a beautiful store in Barcelona. It’s on the Passeig de Gracia which is a great location in Barcelona. We spent two and a half years working every detail of the store, getting everything exactly right. We used limestone from a local quarry to restore it and modernize it. No one would have done this but Apple.

Here’s a picture of the interior. It’s absolutely gorgeous. It’s now one of our largest stores in the world. It has a signature glass staircase and the opening had a signature crowd. All right. Thank you.

Our customers in Barcelona love this store. It’s the perfect place to explore and discover Apple’s latest products. Now these photos don’t quite capture the energy and the enthusiasm that we saw at the opening, but we prepared a video and I’d like to run it for you this morning.

[Video Presentation]

Our stores offer the best buying experience and the best customer service on the planet. We now have 380 stores around the world, we’re operating in 12 countries. We’ll enter our 13th country on Friday, opening our very first store in Sweden and we’re excited about that.

We welcomed 83 million visitors to our store last quarter. That’s almost 1 million people per day and several days were significantly higher than that. It’s absolutely amazing. So that’s a brief update on Apple Retail.

Now on to the Macintosh. We’ve had a very busy summer for the Mac. We launched Mountain Lion in July. Mountain Lion is the 9th major release of the world’s best desktop operating system and the very first with iCloud built right in. The reviews had been fantastic.

PC Magazine said, “Once again OS X takes the prize as the world’s best consumer operating system.” And more importantly, our customers have responded. They’ve downloaded 7 million copies of Mountain Lion making it the fastest selling OS X of all time.

Also earlier this summer, we launched the new MacBook Pro with a radically thin and light design and a stunning retina display. It is the best Mac we’ve ever made. And our customers have responded to this. Together with MacBook Air, our notebooks now rank number one in the US in market share for the last three months. This is incredible. With July being 27%.

Now this isn’t just the momentum of a few months. In fact, over the last year, the Mac has significantly outgrown the PC. And it’s not just the last year. In fact for the last 6 years straight, the Mac has grown significantly faster than the PC. So that’s the Mac, we’re really happy with how we’re doing with the Macintosh.

Now the iPad, the iPad is driving the post-PC revolution at a breathtaking pace. Our latest iPad which has a stunning retina display, a super fast A5 chip and LTE was announced in March and the reviews had been phenomenal. Here’s one from Ed Baig of USA Today. “The new iPad snatches the crown from its predecessor as the finest tablet you can buy.” And our customers have responded to this.

Just last quarter, we sold a whopping 17 million iPads setting an all new record for iPad sales. Now, to put this achievement in some perspective, we sold more iPads than any PC manufacturer sold of their entire PC lineup. Yes, we are in a post-PC world. Now this brings our total to 84 million units which is absolutely shocking when you think that this is a product category that didn’t even exist two and a half years ago.

Now, our competitors have taken note of this. And over the last year, they’ve launched hundreds of tablets to compete. And so, how has iPad fared in this period of time? Well, if you look at the last — a year ago, iPad had a 62% market share. So what happened over the last year with hundreds of new tablets coming to market? Well, the latest data shows iPad with 68% share. It actually went up. And the gap is even more staggering when you look at usage statistics.

iPad accounts for 91% of the web traffic of all tablets. Now, I don’t know what these other tablets are doing. They must be in warehouses or on store shelves or maybe in somebody’s bottom drawer, you know. Now, iPads are being used everywhere by everyone, from consumers to educators, to students and even enterprise. As an example, almost all of the Fortune 500 are testing, are deploying iPad, and they’re investing in custom apps. This is something none of them do on the PC. Apps like this one from GE Capital which helps them manage the business on a real time basis, or this one from Mayo Clinic which helps thousands of doctors deliver better patient care, or this one from Ducati which helps dealers custom configure bikes for their very lucky customers.

Now of course the App Store is the place for all of us. It’s the most vibrant app ecosystem on the planet. And we’ve recently crossed 700,000 apps in the store with — And 250,000 of those have been specifically tailored for iPad to take full advantage of the larger beautiful canvas.

Now, there’s something in the App Store for everyone. And believe or not, every app seems to have its fan, or fans. In fact, 90% of the apps that I just showed you, the 700,000, are downloaded each in every month. And the average customer now is using over 100 apps. The App Store has been an absolute revolution. It’s phenomenal.

And together, with the incredible products, these have helped us achieve another huge milestone. Last quarter, we sold our 400 millionth iOS device. This is amazing. No one could have predicted this. Now, today, we’re taking it to the next level making a huge leap. We have some very exciting news to tell you about iPhone. And to do that, I’d like to invite Phil Schiller to take you through it. Phil?

Phil Schiller – SVP, Worldwide Marketing, Apple Inc.

Good morning. It’s really neat to stand here and see all the Apple logos going from all the computer screens facing me. Well, we’re here to talk about the iPhone. We launched the first iPhone in 2007. And what an incredible breakthrough it was for the entire industry. I think Time Magazine put it the best, when they put iPhone on the cover of the magazine. They called it “The innovation of the year” and they wrote that it is “the phone that has changed phones forever.” And boy, were they right. It simply went on to become the number one smartphone in the world.

We started with that first iPhone. And each and every year, we introduced new versions with new features, new innovations. Each time, setting a new bar for what is the gold standard in the phone marketplace. And we’re going to do that again today. Today, we’re going to introduce iPhone 5. And I’d like to show it to you right now.

So let’s take a look at the brand new iPhone 5. Is it an absolutely jewel. It is the most beautiful product we have ever made, bar none. We’ll put up video up on screen so you can see it even bigger, since it’s so small. And this is iPhone 5. I’m going to take you through it. And I hope when we’re done, you’ll love it just as much as we do. Thank you.

So, iPhone 5, it is made entirely of glass and aluminum. It’s designed and built to an exacting level of standard unlike anything we or anyone in our industry has made before. And I don’t think it is an exaggeration to say that the hardware and software engineering that has gone into this product is the most challenging our team has even taken on. And what they’ve accomplished is simply amazing. So let’s walk through it.

First, iPhone 5 is the thinnest phone we have ever made. It is the lightest as well. The new iPhone 5 is just 7.6 millimeters thin, that’s 18% thinner than the iPhone 4S. And best of all, it’s the world’s thinnest smartphone. It also weighs just 112 grams, that’s 20% lighter, 1/5th lighter than the iPhone 4S. 4Volumetrically, it’s smaller as well.

So before we get into it, this is the monumental challenge the team had. Can you make a phone that has everything the iPhone 4S has before we even talk about new features and the design that’s thinner, lighter and smaller than the previous product? It is really easy to make a new product that’s bigger. Everyone does that, that’s not the challenge. The challenge is to make it better and smaller. So let’s start with the product.

It starts of course with the display. iPhone 5 is a retina display, the same 326 pixels per inch and it is a stunning display in every way. Every iPhone to date has had a 3.5- inch screen but the new screen on iPhone 5 is a 4-inch display. In terms of pixels, it’s 1,136x 640, so the same width but taller giving it a natural 16:9 aspect ratio.

But why would we design it that way? What is the design center for a phone? It’s this, it’s your hand. A phone should feel great in your hand and more importantly, should be easy to use with this magical device we all carry called a horizontally opposed thumb. It does most of the hard work for us. So when you carry your phone, it should fit beautifully in your hand. It should be easy to send messages, type e-mails, surf the web and it’s just how we designed iPhone 5. This display is simply amazing.

Let’s zoom in a little closer. You see with the vertical pixels now we’re able to add a fifth row of icons to your home screen, so more apps on every screen. And all the software that comes on the iPhone 5 has been updated to take advantage of this display, so you see more of the web when you’re surfing Safari. You see more of your e-mail and mail. Your calendar shows more events. And as you probably know when you turn your calendar sideways in the iPhone, it automatically goes into week view, and now you see a full five-day work week where previously it was just over three days. It’s a really useful view. And all of our software is being updated as well to take advantage of this display, our iWork applications. So Keynote, Pages, Numbers, all take advantage of this gorgeous display. Our iLight software as well, iPhoto, iMovie, GarageBand, there’s much more room to work and play.

And Tim told you the 700,000 applications in the App Store, what happens with all of them? Well, this is part of the brilliance of the design. Here is an application that has not been updated because the developer didn’t know yet about iPhone 5, it’s exactly how it would run when you launch it. It runs at the same size as it does on every previous iPhone. You don’t have to stretch it or scale it. It fits perfectly with the same dimensions. We center it or we just subtly place black borders on either side of it that you don’t even notice. It works exactly as the developer intended it to.

The same is true in the vertical position as well. So all your software works just like before. Now we have given some of the developers early access to take a peek at the iPhone 5 and this new 4-inch retina display and to see what they’ll do with their applications and what we learned is two things. One, they can update their apps very quickly. And number two, when they want to, they don’t want to just make it bigger, they want to do more with this display.

So let me just show you two quick examples before and after of two popular applications. First, CNN, this is the application if you use it like many of us do, it’s working just like they used to. But now with their update, they take more advantage of that beautiful display, have more areas to present their stories, just a better application.

Here’s a second example. OpenTable, you’ve likely used this to make reservations. This is how it is currently, it works just like before and here is their new update, taking advantage of this gorgeous display. They’ve updated to show restaurants, they’ve actually applied some of the techniques and user interface of their iPad app into the iPhone now with a larger display area and everything you do looks gorgeous on this display. Photos, TV shows, of course movies take advantage of that beautiful wide screen display. But I say it looks better, they really do look better. This display has 44% more color saturation than the iPhone 4S display. And if you know about this stuff, this takes now — us to full sRGB color specification. So this is the most accurate display in the industry, and the engineering team went much further than that. They did some breakthrough work and have integrated the touch sensors right into the display itself. Others put a layer part in a layer on top. By doing this, we make it 30% thinner than the previous display and we remove a layer making the image sharper, having less glare in sunlight. This truly is the world’s most advanced display, we couldn’t be prouder of it. And that’s the first feature in the new iPhone 5.

Next, ultrafast wireless technology. Again, you can imagine the challenge engineering team faced, make the iPhone thinner, lighter, smaller, build in all the wireless technology you had with iPhone 4S and take it further. And that’s what they have done, we’ve built in GPRS, EDGE, EVDO, HSPA, making it a great 3G world phone just like the iPhone 4S. But to that, we’ve added HSPA+, Dual Carrier HSDPA, and yes, LTE. So, LTE gives you a theoretical maximum downlink of up to 100megabits per second, and it just screams.

So, how do they do this? This took a lot of incredibly advanced engineering. There’s now a single chip, baseband chip for voice and data, and a single radio chip as well. This saves a great deal of space. And we have a really unique Apple innovation in a dynamic antenna. We started this with the iPhone 4S and taken it much further with iPhone 5 where it can automatically switch antenna connections on the base antenna between different networks creating different virtual length antennas.

Now, you probably know LTE is probably the most complicated networking technology ever brought to this earth. And, there are different bands and frequencies around the world. So, an important question is who we’re working with to rule out LTE on iPhone 5. Well, in the US, we have great partners who are working with AT&T, Verizon, and Sprint to support LTE on iPhone 5. In Canada: Rogers, TELUS, Bell, Virgin, Fido, Koodo. In Asia: SoftBank, KDDI, SKT, KT, SmarTone, M1, and SingTel. In Australia: Telstra, Optus, Virgin Mobile. In Europe: Deutsche Telekom and the brand new Everything Everywhere that’s just launched their EE LTE network in the UK.

Now, in Europe there’s something else really interesting going on, there’s a lot of adoption of this new Dual Carrier HSDPA network. So, here’s a list of all the carriers we’re working on that with us as well, just great coverage of that dual-carrier network. So, ultrafast wireless doesn’t just stop with cellular, we’ve also built in higher performing Wi-Fi as well. With iPhone 5, we have 802.11a joining b/g/n. 802.11n is now 2.4 and 5 gigahertz and that’s dual-channel 5 gigahertz for much greater performance. So, you can get a theoretical maximum performance of 100 megabits per second of bandwidth on 802.11. So, that’s ultrafast wireless.

Now, we’re going to keep going with this and what you’re going to hear as I go through each step, we’ve updated every aspect of iPhone 5. Everything has been enhanced, reengineered, redesigned over iPhone 4S.

So, what’s next? System performance, a brand new chip, the Apple A6 chip. Compared to the A5, it’s two times faster at CPU, two times faster at graphics. Our expertise in chip design is really showing itself here because not only is it a huge jump forward in performance, it’s also a 22% smaller making more space and energy efficient. Team has done a remarkable job. You’re going to see that across many of the things you do. Whether you’re launching apps like Pages, saving images from your photo app, loading up the music app with songs to play, viewing attachments and Keynotes, really seeing basically 2x performance across the board. And developers are going to love what they can do with this new A6 chip, the performance they get for their CPU and graphic intense applications.

So we thought, let’s get a developer to get their hands on this A6 chip and new iPhone 5 and show you what can be done with state of the art performance and graphics. So, I’m really excited to invite out Rob Murray, executive producer, EA studios, to show you some amazing work they’re doing on the new A6 chip on the iPhone 5, Rob. Welcome.

Rob Murray – Executive Producer, EA Studios

Thanks Phil. Hi everyone. Now we are known for creating the ultimate racing experience on iOS. With the new iPhone, let’s just take this to a whole new level. So today, I’m going to show you Real Racing 3 for the first time. And you’re going to see a Porsche GT3 racing on a legendary raceway, Laguna Seca. And we’ve got Vince up here to help. Hi, Vince. Let’s get it started.

Look at the graphics here. Now, these graphics they’ve been built to full console quality and they’re running on the powerful new iPhone. I mean, all this is running in the palm of your hands. It’s incredible. Have a look down the side of this Porsche. See the reflections and see the car in the track reflecting dynamically in the body work.

Now, this not only looks awesome but it actually shows you a bit of what’s going on around you. I mean, it actually makes the game easier to play. As do rear view mirrors, yes for the first time in Real Racing, you could see behind you. It’s great.

So, you’ve seen the graphics, but these are thing — these are more– racing recently. So we’re taking this out on the track today and that’s me up ahead, Rob M., the flight control icon there. And you’re seeing Vince trying to catch me. Now you might be wondering, now Vince and I are racing, and we are. How is it that he’s driving but I’m just standing here? Well, we used Game Center to produce one of the coolest new features in Real Racing 3, time-shifted multiplayer. So I can challenge Vince one day and he can race me the next. And what you’re seeing up ahead, that’s actually my race from yesterday. See a lot closer if Vince could catch me. Nice one, Vince. So this is not just a ghost because you saw Vince bump me. He can fully interact with his vehicle. He can jostle for race position and he could actually affect my final time in the race.

Now, this is something we have never seen done before. And this is Real Racing 3 for the powerful new iPhone. Real tracks, real cars, real people you can play against anytime you like. That’s coming to the App Store later this year. Thanks everyone.

Phil Schiller – SVP, Worldwide Marketing, Apple Inc.

If you are a fan of the Real Racing app like I am, you know that. It is truly state of the art in the physics and the realism it brings. And now, to marry that with console-quality graphics is unheard of and unseen before, truly epitomize what can be done in the palm of your hand with that A6 chip. So we’ve got an A6 chip, we’ve got LTE networking. We’ve got a larger 4-inch retina display. You can imagine the challenge the team face now of trying to even match the battery life the iPhone 4S has in a thinner and lighter design and we’re really proud because what they’ve done has not only matched but exceed the battery life of the iPhone 4S. So 8 hours of 3G talk time and 3G browsing, 8 hours of LTE browsing, 10 hours of Wi-Fi browsing, 10 hours of video playback, 40 hours of music playback, 225 hours of standby time. Incredible battery life in the world’s thinnest smartphone.

Next, the camera. Another area we’ve spent a tremendous amount of engineering in. Now, if you know anything about camera design, you know the biggest challenge is vertical height. Making something thinner is the worst thing you do to camera team. So we asked them to go ahead and try to create a camera to fit in a new thinner, lighter iPhone 5 and deliver the kind of performance we had with the iPhone 4S camera that is heralded as perhaps the best camera in the entire market, and they have done that. They have built in an 8-megapixel sensor, 3264×2448, backside illuminated for great low light performance, hybrid IR filter, five-element lens and a fast f2.4 aperture. All the things you loved about the iPhone 4S now on a camera design that’s 25 percent smaller. That was a huge undertaking. But they didn’t stop there. They’ve enhanced this camera even further.

A few of the examples of what it has now it has a new dynamic low light mode. So when you’re in low light situations, the ISP senses that and is able to combine multiple pixels together to give you up to two f-stops greater performance in those scenarios, and you’ll really the see difference in your low light pictures. And this optical system has been amazing with this five element lens, one of the best ways to get a better, sharper image through an optical system is more advanced alignment of those lenses for focusing. And the team now is measuring down to the micron level to create better aligned lenses and you really see a difference in the quality of the image.

And for the first time, we cap off this optical system with a sapphire or crystal lens cover. You know, sapphire is renowned for being hard and crystal clear and it helps protect your lens and make your images clearer and sharper. On top of this camera system, we have a new ISP image signal processor from Apple built in to the A6 chip and it does some tremendous things to help improve your photography. The spatial noise reduction, you want to remove the noisy particles especially in low light images, so by looking at surrounding pixels, we can determine where the noise is and help remove that. We also have an Apple technology called a SmartFilter that looks at the image before the ISP does its noise reduction and can figure out where those areas that should be uniform color like the blue sky and other areas where they’re textured and you shouldn’t be doing noise reduction on that, and it’s really powerful to deliver amazing low light performance.

We also have faster photo capture and the iPhone 4S was already really fast. This is now 40% faster. But it all adds up to simply using it and seeing what kind of pictures you can get. So we’ve taken the iPhone 5, we’ve taken pictures with it and these are from the camera untouched and see what you think. The ocean just looks bluer on the iPhone 5. Kids look happier, they really do, and the world is just a more beautiful place when you take pictures with the iPhone 5.

Now this is incredible, this is a macro photo, beautiful okeh or blurred background as you would want from a great camera system. I’m just going to zoom in a little bit. Look at that bee, you can see the veins on the wings of the bee. And if you’ve ever tried to do that in a photo, it’s not easy, this camera is tremendous. And with iOS 6 and iCloud, you now have the new feature called shared photo streams where you can take your photos and automatically share them with your friends and family where they can like them and comment on them.

But perhaps, the most amazing feature of the new camera in iPhone 5, it’s called Panorama, and this is incredible. With typical legendary Apple ease of use, you just tap and say, I want to take a panorama photo. You hold your phone vertical to get the maximum area and then you just sweep your scene and the software tells you what pace to sweep it out to get the perfect image. And what it does is astounding. You get remarkably beautiful photographs, incredible panoramas. This image is 28 megapixels in size taken right on your iPhone 5 camera. And what the software does is unbelievable. Behind the scenes in real time while you’re panning is taking slices of photos, finding edges, stitching them together, creating seamless transitions between those photos for one beautiful panorama. It’s even able to determine a nonlinear path through it if you’re not perfectly stable and align it and remove some of the echo artifacts you get of people or objects who are moving while you’re trying to get that pan. It is truly breakthrough software for panorama photos.

Let me zoom in a little more and show you the quality of this image, it’s simply stunning the detail. Now we use this one because it’s a tough one so you can see the exposure changes from one end to the other as it goes from dark to light. There’s even people standing there in the corner, they were tougher to see when we pulled out to such a large photo. And one other example just to show you how much fun you can have with the Panorama feature, this is one panorama photo, this — it looks like there’s two people in it, those are not twins, that’s the same person. I’ll leave it to fans of the iPhone to figure out how to do pictures like this and have a blast taking fun panorama photos.

Well, the camera is amazing for taking pictures, it’s also a lot better for video as well. They still take 1080p HD video, we’ve improved the video stabilization with the new ISP and the A6 chip. We have face detection for up to 10 faces while you’re shooting the video and of course, you can take photos while you’re recording video. And the camera on the front has been updated as well. The FaceTime camera is now a FaceTime HD camera, 720p backside illuminated for great low light performance. It has face detection and you can do FaceTime over cellular networks as well. So that’s the new camera, iSight and FaceTime cameras built in to iPhone 5.

Everything has been updated in iPhone 5 and that goes for the audio system as well. We now have not two but three microphones built in to iPhone 5, one on the bottom, one on the front and another on the back. This helps in many situations, you’re doing a FaceTime call, you’re creating a video, you can get the perfect placement for your microphones. We can use them for noise cancellation solutions, and we can use them for beamforming which is important on voice recognition and applications like Siri. So a big advancement in the microphones. We’ve improved the speaker as well. Now, instead of two magnets in the transducer, there’s five magnets that gives a better frequency response for the audio, and best of all, they fit into a space that’s 20% smaller, all sounding better.

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We’ve even updated the ear piece, so that when you hold it in your head and make a call, not only doing noise cancellation and your voice going out to whoever you’re speaking with, we do noise cancellation on what you hear through your own ear piece, removing some of the surrounding noise in your area to make it clearer to listen to your call. And we’ve got a new technology called wideband audio if you want amazing sound performance. But what’s this? On typical cellphone call, this is what it looks like, the frequency of the data in your voice, and you see it’s somewhat compressed around the midrange to help make that call more intelligible. But it doesn’t sound entirely natural all the time. So the wideband audio, we can fill out more the frequency spectrum and make your voice sound even more natural. This is a new technology, we’re just starting it, and we have carrier partners around the world working with us on it. We’ll have 20 at launch supporting this, great partners like Deutsche Telekom and Orange supporting it at launch. So that’s the new audio system in the iPhone 5.

Next, the connector. You know the iPhone from its start has used the iPod 30-pin connector which we launched originally in 2003. And it served as well for almost a decade. But so much has changed since we first created that 30-pin connector. So many of the things we used to do over the wire, we now do wirelessly. We use Bluetooth now to connect to speakers and headphones and car systems. We use Wi-Fi to for example, use, do airplay to our TV or for our stereo. We can do Wi-Fi syncing to iTunes now. And best of all with iCloud we can download all our content wirelessly and even backup to the cloud. So a lot has changed and it’s time for the connector to evolve, and that’s just what we’ve done. Our new connector is called Lightning. So now, we have Thunderbolt and Lightning in our connective strategy. This connector is a modern connector for the next decade. All digital, 8 signal design, it’s adaptive to what those signals need to be for the different accessories you might plug into. It’s more durable and much easier to use, because now you can plug it in either direction, it doesn’t matter. And best of all for the engineering team to make a product like this, it’s 80% smaller. It’s a huge difference in the world’s thinnest smartphone. We’re working with accessory makers to have them integrate Lightning connectors into products you may choose to buy.

For example this holiday season, we have great partners working with us, partners like Bose, JBL, Bowers and Wilkins, Bang & Olufsen and many more. But what about all the devices and speakers and connectors you have now that you already have that use a 30-pin connector? But we’re creating a bunch of accessories to help you with that. This is a 30-pin to Lightning adapter, and it works just like you’d expect. You can plug your 30-pin cable into it and it into your iPhone 5. So a typical example for this might be in your car, where you have an iPod connection kit. You just plug in as adapter, you can just leave it there. And now whenever you jump in your car, plug in iPhone 5 and you can charge and listen to your music as you go. So, that’s the new Lightning connector.

Perhaps one of the most important features of iPhone is the software it runs. And we have iOS 6, the latest version of the world’s most advanced operating system. And it’s been designed from the very beginning to take full advantage of this beautiful 4-inch retina display, now the performance and features the iPhone 5 has to offer. So we’d like to do is have you see for the first time iOS 6 running on the new iPhone 5. To do that, I like to invite up Scott Forstall. Scott?

Scott Forstall

Thanks, Phil. We are really excited about iOS 6. It has so many new features in it and I like to go ahead and demo just a few of those for you here on the iPhone 5. We’ll start off with our brand new Maps application. We have built Maps from the ground up to use vectors so it’s incredibly smooth, zoom in and out, to rotate around. We’ve also built a search engine in so you can look for local points of interest. We included over a hundred million points of interest including restaurants. Let me go ahead and search for a Luce Restaurant. When it finds it, we have this great info card which includes reviews with the partnership with Yelp and lots of photos. And we’ve also built in free turn-by-turn directions. And so just by tapping on that car icon, you get a quick route and let’s go ahead and start.

Starting route to Howard Street. Turn left on to Mission Street. In 900 feet, turn left on to 4th Street. You can see we have this beautiful 3D turn-by-turn directions. As we take you around turns, we use a cinematic camera angle to fly you around.

Turn left on to 4th Street then turn right on to Howard Street. We all– Have all the footprints of these buildings correct. In 600 feet, turn right on to Howard Street. At anytime, you can tap to get an overview.

Turn right on to Howard Street then a destination is on your right.

I can zoom out and see the whole route. In 700 feet, the destination is on your right. I can zoom in or just tap to resume. And all of this works in landscape in addition to portrait.

Arrived at Howard Street. And that is turn-by-turn.

We’ve also got great satellite imagery. So let me switch to satellite here. When you’re looking at this, actually in the bottom left corner, there’s a button of a 3D buildings. And when you tap on that, it takes you into Flyover. And Flyover literally allows you to fly around the scene with your fingers. It’s just gorgeous. And we’ve added Flyover for areas around the world, so let me choose one other. Let’s go to Big Ben in London. It’s amazing. You can take, you just tap on it yourself and zoom right in. Give yourself a virtual tour of the area. If you take two fingers, you can change the camera angle and down, zoom around so you can see the Parliament. Just gorgeous. And that is Maps in iOS 6.

Next step, I’d like to show a nice little enhancement we made to Notification Center. Now you can get to Notification Center anytime just by flicking your finger down from the top of the screen. And now, right from Notification Center, you can post to Facebook or tap to tweet. I’ll go ahead and tweet and I’m going to tweet “Love Flyover.” And it’s that easy to tweet from anywhere.

The next step, let me show you some enhancements we’ve made to Safari. Now first you’ll see Safari just looks great on this big 4-inch display. When you go into landscape, it looks great and you see those arrows in the bottom right. If you tap on them, it now takes you to full screen mode. So the page takes the entire large display.

Now here you can see there’s an article about David Hockney. Now, I have another website opened to a David Hockney article back on my Mac and now, in iOS 6, I can get back to any of the articles I have opened on any of my devices on the go. It’s something we call iCloud Tabs. So when I tap on iCloud Tabs, it shows the four windows I have opened back on my Mac. I’ll choose that first one, it takes me right to that web page on the go to iCloud Tabs.

Next, I’d like to show you some enhancements to Mail. We’ve added a feature called VIPs to mail. And VIPs allows you mark people as VIPs and then all of the messages from them in the inbox are collected in one place. So here’s a message from one of my VIPs. It’s also a lot easier to now flag something. So this is about a family camping trip. And to flag that, see on the bottom left corner is the flag icon, if I just tap on that and say flag, it will automatically be added to this dynamic flagged mailbox so it’s easy to go and get back to it at any time. And those are some enhancements for Mail.

Next, I’d like to show you a brand new app and that is Passbook. Passbook is the best way to collect all of your passes in one place. Here I have a movie ticket, an airline boarding pass, here is a coupon from Target, here’s a store card from Starbucks complete with the balance. Here is a ticket for a concert. Here’s a ticket for a baseball game. Now, this is a baseball game I’ve already gone to so I can flip it over, tap the trash icon, and we’ll go ahead and shred that for you.

And one of the really cool things about Passbook is it integrates with the lock screen. So if I have my phone locked and in my pocket and I get to the airport, my boarding pass automatically appears on the lock screen, I slide across, it brings up my boarding pass, I scan it and get on the plane, it’s that simple. And that is Passbook.

Next, I’d love to show you shared photo streams. Shared photo stream is the easiest way to share photos with your friends. I’ll go here in photos and here is my camera roll. Let me choose a few of the photos I’ve taken recently and I’ll say share to the photo stream. I’ll share this with let’s see, Ashley and Wendy. I’ll name it “Fun” and that’s it. It’s that easy to share photos with your friends. It looks like this. They’ve already received the Push Notification with those photos on their phones. Here is a shared photo stream I have subscribed to. The great thing is you can comment on photos, your friends can comment on photos, and if you just like a photo, just tap that like button up top and your friends will be notified that you like that photo. And that is shared photo stream.

There’s one more thing I’d like to demo for you and that’s some great enhancements to Siri. Siri now knows all about sports so I can ask questions like, “How did the 49ers do last weekend?”

The 49ers beat the Packers by a score of 30 to 22 last Sunday.

So sport scores, you can ask about standings. What are the current NFL standings?

Okay, these are the standings for the NFL. Scroll down, you can see there is the Niners 1 and 0. You can also now launch apps just by talking to your phone. So I could say launch Yahoo Fantasy Football, and that’s it. Immediately it launches the app.

Now, Siri has also learned a lot more about movies so I can ask. Can you recommend a good movie in theaters?

Checking for movies, that is a very subjective question. Here is what others have found to be the best movies.

So, we can find all sorts of information of movies, sort by rating. Siri also knows a lot more about restaurants, so it can help find a restaurant, even help you book a table like this. Find a sushi restaurant for 4 at 8 o’clock.

Checking for sushi restaurants. These restaurants have tables for 4 around 8 p.m. Tap the one you’d like to reserve.

So I can tap one but if I want to change the time, I can just tap on say 7:45 there, and then tap make reservation which takes me directly to the OpenTable app to finalize my reservation. We’ve also integrated Facebook right into Siri, so I can now post by talking to my phone. Post looking forward to sushi tonight to my wall.

Here is your new Facebook status, ready to post it? I’ll go ahead and post that. Okay, I posted your Facebook status.

Thanks Siri.

No problem.

And those are just a few of the new features in iOS 6, there is so much more. You saw some of the Facebook integration, we’ve integrated Facebook into many of the apps throughout the OS. There’s some great enhancements to the Phone app including the ability to automatically send an SMS or iMessage back when someone is calling you on the phone and you can’t answer it right then. We’ve taken FaceTime beyond Wi-Fi and now, you can make a FaceTime call from wherever you are over the cellular data network. We’ve got some great enhancements for accessibility including single app mode and these are only 10 of the more than 200 new features in iOS 6. We think you’re going to absolutely love it and that is iOS 6, thanks.

Phil Schiller – SVP, Worldwide Marketing, Apple Inc.

Thank you, Scott. Without doubt, the most advanced operating system on any mobile device and it powers iPhone 5. Now, iPhone 5 comes in this beautiful black design, the glass is all black, the aluminum is a color we call slate and there’s another color as well. There’s a white iPhone, the glass is all white, it’s got a beautiful bright silver aluminum finish. I think customers are going to love it just as much as the black one. They’re both stunning and they’re the thinnest and lightest phones we have ever made. And even with that, the team has packed in innovation at every level of the design. It’s the most innovative display with that 4-inch retina display. It’s got ultra-fast wireless with the LTE and faster Wi-Fi. The brand new generation A6 chip would double the performance and it’s smaller and more energy efficient. The all-new iSight camera, as well as FaceTime camera and that killer Panorama feature. It’s got all new audio systems with new microphones, new earpiece and we’ve got the Lightning connector and of course iOS 6. iPhone 5 is the best phone we have ever made and what would be the best phone without a killer video? So I like to run our video now.

[Video Presentation]

When you think about your iPhone, it’s probably the object that you use most in your life. It’s the product that you have with you all the time. With this unique relationship people have with their iPhone, we take changing it really seriously. We don’t want to just make a new phone. We want to make a much better phone. iPhone 5 is the result of this approach. It’s being completely redesigned and for the first time ever, we’ve increased the size of the display. By making the screen taller but not wider, you can see more of your content but still comfortably use it in one hand. And yet, even with the larger display, iPhone 5 is the thinnest, 52:17lightest iPhone we’ve ever built.

To achieve a design this thin, we had to look at making many of the components inside the design smaller. It’s actually 18% thinner and 20% lighter than the previous iPhone. It took an incredible cross collaborative effort to do this. From the beginning, we knew we wanted to bring LTE to the iPhone. What LTE does is it enables really fast downloads over your cellular network. You’ll notice a big difference compared to previous network connectivity. In fact, LTE can actually be faster than the average Wi-Fi connection at home. The conventional approach of designing LTE into a world phone uses two chips. With the new iPhone, both voice and data technology are combined onto a single chip, this is one of the real breakthroughs that enables iPhone 5’s thin design.

We’re also introducing an all new Apple design A6 chip. It delivers performance that’s up to twice as fast as the previous generation. You’ll experience a big increase in speed in everything you use your iPhone for, especially in the way it delivers more detail and boosts frame rates in graphics-intensive apps. The A6 chip is so power efficient that it increases performance while also increasing its battery life. Given the dimensions of the new phone and all the capability that we wanted to add, we needed to manage space inside the phone very carefully. We’ve created the new much smaller Lightning connector. It’s all digital, so it’s designed for today’s uses and we made it reversible so it fits either away.

We also moved to a sapphire lens cover which is thinner and more durable than the previous cover glass. This really protects the optics and keeps your photos looking great. I don’t think the level of invention has ever been matched by any another product we’ve done. The seamless integration between hardware and software makes everything you do on iPhone 5 just feel more fluid, responsive, and fast. And with its amazing display, you just feel like you can do more. It’s great for watching HD videos in full wide screen. And in portrait mode, iPhone 5 still fits so comfortably in your hand. Our all new Maps application is fantastic. If you look at things like Flyover, it’s a completely different experience than you’ve ever had before in Maps. And using turn-by-turn spoken directions makes it really easy to get where you’re going.

Turn left on to Lombard Street then turn right on to Van Ness Avenue.

The Panorama feature is simply awesome. You can capture a panorama photo just by moving your camera through the scene. Once you’re done, the app combines what you captured into one beautiful panoramic shot. And now, Siri can do more for you. You can get sports scores and team schedules. Siri can also find places to eat and even help you make a reservation. Facebook is now integrated right into iOS 6. So you can post photos or share anything else you want to directly from your apps. And now, you can make a FaceTime call right over the cellular network. So no matter where you are, you’re always able to see the ones you love. Along with the experience of actually using it, what makes iPhone 5 so unique is how it feels in your hand. The materials it’s been made with, the remarkable precision with which it’s been built, never before have we built a product with this extraordinary level of fit and finish. We’ve developed manufacturing processes that are most complex and ambitious. Starting with the aluminum, we machine all of the surfaces of the enclosure. We then polish and texture them. We then use crystal and diamonds to cut the chamfers. It’s so exact that you’re left with a near mirror finish. These techniques created dramatic distinction between the product’s lightly textured back and its highly polished chamfered edge. This manufacturing precision extends to have these many pieces seamlessly come together.

The inlay of the product is matched to the housing through a highly sophisticated process. With the parts on the conveyer, two high powered cameras take pictures of the housing. An instantaneous analysis is done and then the best match out of a possible 725 cuts is determined. The variances from product to product, we now measure in microns. We believe that going to such extreme lengths is the only way that we can deliver this level of quality. To create the new iPhone, we began with the design that we really loved. But to build it, to implement it, we had to look way beyond what we knew to be possible. It took all of our learning, our best thinking, to realize something so simple, so clear, and yet so truly extraordinary.

Well, I don’t know about you but for me I think there’s just two questions left. How much do I have to spend to get one? I want one. Well, the great news, it’s the same price as the iPhone 4S it replaces. $199 for 16 gigabytes, $299 for 32 gigabytes, $399 for 64 gigabytes, and a typical 2-year carrier contract. What’s equally impressive is what happens with the entire line. So now, you’ll be able to get iPhone 4, 8 gigabytes on free contracts. That’s amazing. iPhone 4S for just $99 with 16 gigabytes and the iPhone 5 starting at $199. Clearly the state of the art best phones at every price points from free on up.

And the second question, when can I get my hands on one? You know, a lot of customers are going to be asking that. But you can start to pre-order this Friday, September 14th. And we’re going to ship the iPhone 5 just one week later, September 21st in the US, Canada, UK, France, Germany, Australia, Japan, Hong Kong, and Singapore, an incredibly quick start. And just one week later, over 20 more countries around the world, this is just before the end of this month. By the end of this calendar year, we hope to be in 100 countries, 240 carrier partners around the world. This will be our fastest phone rollout ever. Of course they all run iOS 6.

I think we did the best job in the industry of helping to support our customer base with great upgrades. So if you have an iPhone 4S, iPhone 4, iPhone 3GS, the new iPad, iPad 2, and the iPod touch 4th generation. We have an upgrade for free to iOS 6 next week on September 19th. So that is iPhone 5.

Thank you very much. I’m going to turn it back to Jeff Robbin.

Jeff Robbin – Vice President of iTunes

Thank you. iPhone 5 and iOS 6, the biggest things to happen to iPhone since iPhone. And I am so incredibly proud of everyone at Apple that helps makes today occur. These products are simply amazing. Now, in addition to announcing iPhone 5, we have something near and dear to our hearts to talk to you about today and that is music. Apple loves creating music products. Music is deeply imbedded in our DNA. And this is the reason that we created iPod and iTunes. And these products have gone on to just revolutionize the music industry. We get really excited when we can make music products that make enjoying music even better or even simpler.

Today, we’re announcing exciting changes with both iPod and iTunes. So let’s get right to it. We’d like to start it with iTunes and I’d like to invite Eddy Cue up to take you through it, Eddy.

Eddy Cue – SVP, Internet Software and Services, Apple Inc.

Thanks, Jeff. So, thanks. So let’s talk about iTunes. So the iTunes store is the number one music store in the world. It offers more than 26 million songs and all of you have purchased and downloaded over 20 billion songs since we launched it just nine years ago. Now last year, the iTunes Store was available in 23 countries, but we’ve been hard at work to make it available to even more people. And today, I’m happy to report that the iTunes Store is available in 63 countries around the world. And with that, we now have 435 million iTunes accounts all with one click purchasing. And all of these customers can easily shop from anywhere with their iPhone, their iPod touch, their iPad, or on iTunes on their Mac and PC.

But over the last couple of years, it’s been an amazing trend. More than two-thirds of our downloads now come directly from iOS devices. And that’s why we spent the last year redesigning all of our stores for iOS, making them more fun and easier to use. Here is the new iTunes Store on the iPad. It’s a beautiful new design, everything is faster, large showcases on the top to show you what’s hot and new, and we use the same design for movies, for TV shows, it works great for the App Store, the iBookstore, and it transforms beautifully to the iPhone. Here is the iTunes Store on the new iPhone 5. You can just swipe to see more albums, tap on charts to see all of the top songs and they automatically update as you scroll.

Here is the App Store. We’ve integrated Facebook likes into every one of our product pages. So now you can like an app and see if your friends like it too. So the new stores on iOS completely redesigned from the ground up, faster, easier to use. Now, if you preview a song today and you leave the album page, it stops playing. Well now, when you preview a song, you can browse the rest of the store and it will keep playing and with 90-second previews, this is great. Much better results from search and you can share directly on Facebook and Twitter. All of these stores will be available with iOS 6 on September 19th.

Now let’s talk about iTunes on your Mac and PC. iTunes is the world’s most popular media player. Now, iTunes was at the center of your digital hub. It was the place where you kept all your music, movies and TV shows, but iCloud changed all of that. iCloud keeps your purchases and makes them available to all of your devices and it’s been a huge, huge hit. We now have over 200 million customers using iTunes in the Cloud. And they’ve downloaded more than 15 billion songs, movies, TV shows, apps and books right from the Cloud. But we’re not standing still. This is the current iTunes and today we’re introducing brand new version and it is dramatically simpler and we’ve built iCloud right in. And I’d like to show it to you right now.

Now, rather than walking through all the features, I’d like to invite Jeff Robbin up to give you a demo. Jeff?

Jeff Robbin – Vice President of iTunes

Thanks Eddy. Okay, let’s take a look at the new iTunes. Here’s what it looks like. We’ve got a beautiful new edge to edge design where you can really focus on your music. When you click on an album, it expands in place. And iTunes automatically analyzes the album cover to provide this beautiful-themed experience. This is what Adele looks like. Here’s “Abbey Road,” Bruno Mars, and you can just double click to hear a song. And each album also comes with a feature we call In The Store where you can see the top songs and albums from that artist as well as recommendations.

Now of course you can also browse your library by artist. You can see here we’ve got the list of artists down the left as well as all the albums down the right, and I can just click on an artist and just see those albums by that artist on the right. We’ve even given the artist the ability to share photos with you right in your library. Just click Gallery. And here are some photos that Coldplay is sharing. And of course, we’ve also got the Familiar Song List View. But what about playlists? If I click playlist, we can see them on the list on the left here. I can just select one and click Play.

Now, when I want to add a song to a playlist, I just click Add and now unlike previous versions of iTunes, you can actually see your entire music library and the contents of your playlist at the same time. So I can just drag in new songs and click Done when I’m finished. Now, what about when I’m browsing my library? Let’s go back to Albums and whenever I start to drag an album, iTunes just brings in a list of my playlist from the side and it can drop new songs right there. And that’s playlists inside iTunes.

We’ve also added a really cool new feature we call Up Next. Just click this icon in the LCD and you can quickly see what songs are coming up next. You can rearrange them and when you see a song you want to hear right now, just double click. But we’ve also made it really easy to add new songs to Up Next. So I can go to an album and I can go ahead and just choose Play Next. And if you look as Up Next, you’re now going to see Up Next is that new song and when iTunes is finished playing with it, it’s going to go back to my playlist and pick up right where it left off. We think this is a great way to listen to music in the new iTunes.

Now, we’ve also improved search. I can go ahead and just type “say”– oops, apparently, I can’t type say. And so, what you see is iTunes searching across your entire library. Albums, songs, artists, music videos, and I could just double click to play or just click, and iTunes takes you right there. It’s a really easy way to search your library. Now we know that people love to listen to their music in the background while they’re doing other things. So we’ve really improved the new mini-player. So up here in the upper right corner, you’ll see a new icon and if I just click it — it switches to the completely redesigned mini-player. And I can just roll over and get the controls, click Play. [Background Music] Picked up where I left off. I can skip to the next song, and the mini-player shows me the song that’s playing.

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Now if I want to hear a different song, I can search and I’ll just type OK. And we’ve built search right into the mini-player. So I can either double click and hear that song right now or I can click plus and it adds it to up next which of course is also built into the mini-player. And so, you can see there’s that song coming up next and then it’ll go back to the playlist and pick up where it left off. So, a brand new mini-player inside the new iTunes.

Now let’s go back to the main library. And as Eddy mentioned, we’ve built iCloud right into iTunes. So my music purchases, movies, TV shows, all right in my library. So let’s switch to movies. And this is my entire library including movies both on my computer as well as in iCloud. So here is one, “The Avengers.” I was watching this earlier on my iPad but I didn’t get to finish it. Well, iTunes can pick up right where I left off right from iCloud.

[Video Clip]

I love that. iCloud built right into iTunes. And now, let me give you a quick tour of the redesigned iTunes Store. I’m just going to click this button to go to the store and this is what it looks like, very similar to the store on the iPad. And we’ve got this beautiful showcase up top where you can see what’s new and what’s hot and I can just click to cycle through as well as the shelves, here’s new music. It’s really easy to just scroll through as well as New & Noteworthy. And if you see an album you’re interested in, just click. Here’s album from Bruce Springsteen, been remastered. f I want to preview a song, just click Play. Let’s go to his artist page, click here, and you notice that the song kept playing. So while I’m browsing the store, you can keep those previews going. So this is Bruce’s artist page. You’ll notice over on the right, we’ve added concerts. So I can actually see his tour information as well as what concerts are near me. And of course, the new store redesign looks great for movies, TV shows, apps, and the bookstore. So, those are just the few of the new features in the new iTunes and looking forward to you enjoying it as well as we do.

Thanks.

Eddy Cue – SVP, Internet Software and Services, Apple Inc.

Thanks Jeff. That was great. So the new iTunes dramatically simplified user interface. Play your music, your movies, and TV shows right from iCloud, a completely new mini-player, a great new way to listen to your music with Up Next and of course, the redesigned iTunes store. The new iTunes will be available in late October and that’s our update on iTunes. We think you’re going to love it and we can’t wait for you to get your hands on it. So, thank you.

I’d like to bring up Greg Joswiak to give you an update on iPod.

Greg Joswiak – VP of iOS and iPhone Marketing, Apple Inc.

Thanks Eddy. Okay, let’s talk about the iPod. iPod has changed the way we all listen to music. And the iPod is the most popular music player of all time. In fact, we’ve sold over 350 million iPods. And we had millions, and millions to this every quarter. But like Tim said, we don’t do this just for the numbers. iPod and music are part of the DNA of the company and we love music and we have the most loved family music players there is. And we’re going to make some exciting changes that line up today. So let’s start first with the iPod nano. So the Nano from the very beginning was about the best ultra portable music experience and we’ve had six amazing generations of the iPod nano. When we look and create new iPod nano, we really wanted to take the opportunity to reinvent the Nano. And if we’re going to reinvent it and make an even better music player, well, what elements would we want to create and give to the Nano to do just that.

Well, for one, we’d want to give it a really large display to make it easy to navigate and experience your music. We’d want to have really easy to use controls. We’d want to make it thin and light and make it out of the highest quality lightest weight materials with precision engineering. And of course, we’d want to give it the latest technologies like the Lightning connector. Well that’s just what we did with the all new Nano. The new 7th generation iPod nano which by far the best Nano we’ve ever created and here it is. It is incredibly ultra portable and ultra light. As you see it in your hand there it is really small and has perfect size and shape for your hand. And ultra portable course means ultra thin. And it is only 5 millimeters thin. Almost 40% thinner than the iPod nano it replaces and the thinnest iPod nano we’ve ever created. And despite its small size, we’ve given it really big easy to use control. So you can control your volume as well as even play, pause your music or go forward and backward through your list without ever having to look at your display.

But when you do look at your display, you’re going to love it because it’s the biggest display we’ve ever put in an iPod nano at 2-1/2 inches. And it’s a multi-touch display and we’ve redesigned the Home screen and give it a new Home button, so you can always go back this Home screen from no matter where you’re at. It’s super easy to use. And of course it’s an iPod nano, so it comes in a collection of really fun colors. Seven different colors and if you notice, we’ve color-matched wallpaper of the iPod nanos to match the beautiful enclosure of the iPod nano. So you can now experience the color on the front as well as the back. It’s really beautiful. And of course that bigger screen is great for experiencing your music even better, full album art, song information, touch controls, all up in the screen at the same time. And we’ve integrated an FM tuner that even has live pause so you can pause your FM or go back and listen to something again. And of course the Nano is a fantastic photo viewer. And with multi-touch, you can simple pinch and zoom your photos. And we’re bringing video back to the iPod nano.

And it’s wide screen video and as you notice we have a wide aspect display. So it uses every pixel of that display, really beautiful video. And we’re building Fitness and Pedometer right into the Nano. So it means you can track your runs and your walks and integrate with Nike+ right out of the box, nothing extra to have to buy. That’s fantastic. And one of the biggest requests we’ve had was for Bluetooth. So we’re integrating Bluetooth for the first time to the iPod nano so you can stream your music wirelessly to speakers like your Jambox, wireless headphones, and of course even your car, all without ever having to plug it in.

But when you do plugged it in, of course, as you would expect, we’ve given it the all new Lightning connector, super small, super durable, reversible, easy to use. So the new Nano, more beautiful than any Nano we’ve done, more portable, more feature rich, but also more battery life. The longest battery life we’ve ever had in a Nano with up to 30 hours of music playback. So this is the all new 7th generation iPod nano.

Hope you love it as much as I do, because I love it.

Next, let’s talk about the iPod touch. The iPod touch is the most popular iPod we make. And it’s the world’s most popular music player. But what a lot of people don’t realize is it’s actually the world’s most popular game player as well, with access to over 175,000 game and entertainment apps. And with Game Center, you’re connected to a network over 150 million game players. But it’s not just a great music player and great game player, it’s a great iOS device. And we wanted to take everything that costumers love about the iPod touch and make it even better within an all new 5th generation iPod touch. And here it is. The best iPod touch we’ve ever made.

And when you turn it on your side, on a side, you’re going to be amazed, because it’s only six millimeters thin. Not just the thinnest iPod touch we’ve ever done. It’s almost as thin as the iPod nano, yet it’s a touch. And when you pick it up, you’ll hardly believe the weight of it. It is incredibly light. It’s the lightest iPod touch we’ve ever created. So, thin and light, again, perfectly for your pocket, perfect for taking with you wherever you go. And we’ve made it out of this really high quality anodized aluminum with an amazing finish. And on the bottom, you’ll see that we have a head phone jack, speaker and of course the Lighting connector. But I know the thing you probably notice first and foremost was that display. It is the exactly the same 4-inch retina display that we have in the iPhone 5. And, that means we were able to increase the screen size of the iPod touch without sacrificing any portability or any of the one-handed operation. Absolutely fantastic. And of course, the bigger displays, great for experiencing everything better that iPod touch users love, like your music. Again, full album art, song information, touch controls all up in the screen the same time, easier to navigate through your long list of music. Perfectly matched for widescreen video, again, using every pixel that display. And of course, even a better and more immersive game experience. So that’s the new design, a new display of the iPod touch.

And we made it faster. We’re bringing the A5 chip to the iPod touch which brings dual core processing to the iPod touch for the first time, which not only doubles the performance from where the A4 was on the 4th generation iPod touch, but even more important with the dual core graphics can increase the graphics performance by up to seven times where we were with the A4. And what that means is that we can do things with the new iPod touch. You just couldn’t do with the 4th generation iPod touch. And to give you an example of that, I’d like to invite up a developer Torsten Reil from NaturalMotion Games give you an example of something he’s working on that takes advantage to the new iPod touch. Torsten?

Torsten Reil – NaturalMotion Games

Thanks Josh, thank you. Hi, we have to show you something that we think is unlike anything you’ve seen before. We’re to show Clumsy Ninja, a next generation interactive toy running on the new iPod touch. Now, until now game characters has been based on play back animation. Today, we’re showing for the first time a character that is based on the real time simulation of his body, of his muscles and of his central nervous system. This means that Clumsy Ninja is self aware, aware of his environment and fully interactive. So, [Berkley] here is interacting with the ninja now. And you can see that he’s lifting his arm and the ninja is noticing that. Now, he can lift his other arm as well and pull him a little bit to the right, and you see that he is reacting to that in real time.

Now, we can even pick him up a little and flick him up into the air. And the ninja is landing on his two feet. And the reason he’s able to do that is because the iPod touch is calculating all the required body motions in realtime which we think is amazing. Now, Clumsy Ninja probably didn’t like that very much but he does like being tickled. And so, Berkley can select the tickle feather and tickle him a little bit. So he likes that to a point and has decided to hide behind the tree. But you can probably tell Clumsy Ninja isn’t very good at hiding and that’s because he’s a Clumsy Ninja. You have to help him become a better Ninja by playing with him and doing different exercises. So, let’s do the first exercise which is the punch bag.

Now, Clumsy Ninja can actually see because we are rate casting out of his eyes in realtime. So, when Berkley picks up the punch bag here, the Ninja will notice it. And he’s going to try and play with it as well. Now, this is the first time he actually sees the punch bag, so you can tell he’s not very good at it yet. But Clumsy Ninja can learn, the more we play with him the better he becomes at punching the punch bag. Let’s try something else out. Something that he’s seen before which is the Ninja trampoline. So, the Ninja trampoline, we’ve already played with the Ninja. And you can tell that he’s quite a bit more confident on this already. He’s already jumping quite high, and even throwing some special shapes. Actually, he’s probably getting a bit ahead of himself. So let’s bring him back to safety. There you go. This completes our first training session with Clumsy Ninja.

He’s based on many years of research at NaturalMotion and Oxford University. And he’s using technology that not long ago would have required a super computer, now running in the palm of your hand on the new iPod touch. We think that it’s truly remarkable. Clumsy Ninja is looking forward to playing with you this holiday season, thank you.

Greg Joswiak – VP of iOS and iPhone Marketing, Apple Inc.

Fantastic game. That’s Torstein Reil, again, from NaturalMotion Games. So with all this performance would we sacrifice battery life? And of course the answer is no. So we have up to 40 hours of music playback with the new touch. And we’ve actually increased the video playback. We now have up to eight hours of video playback. So, the Apple A5 chip taking the performance to the next level for iPod touch. So, the camera, iPod touch customers love to shoot video and take pictures with their cameras. But we’re going to make it significant upgrade to the camera system of the iPod touch.

For the first time, we’re building an iSight camera into the touch. It’s a 5 megapixel iSight camera. And as you can see from the features that is every bit the latest technology for sensors and lenses. And for the first time building auto focus and flash into the iPod touch. And just like the iPhone 5, we’re using a sapphire crystal lens cover to keep your pictures looking clear and sharp. And the pictures we take with this iPod touch are very clear and sharp. I want to give you an example. These are actual shot with an iPod touch. So see just the level of detail. Amazing skin tones and the colors just pop, look how beautiful the sky looks, and significantly improved, auto exposure for darkness and better outdoor as well as inside in low light. And we’ve given it the really easy to use Panorama feature, which allows you to take just breathtaking panoramas, really is by just sweeping your iPod touch.

And for the first time, you can download iPhoto from the App Store and do the photo editing right there in the iPod touch. And as Scott showed you, there’s never been an easier way to share your pictures than with Shared Photo Streams. So with all this capability, iSight camera alone rivals point shoot cameras. But the ability to edit on the device, share on the device, Panorama, we think it takes things even further. But there’s still more. You may have notice on the back of the iPod touch, the bottom corner there’s a little circle. Circle is actually a hidden button, that’s part of a feature we call the iPod touch loop. And if you push that little button with your finger, it pops out. It can attach the loop. And just like that, you’ve added a really handy and convenient wrist strap to your iPod touch. That added security when you’re taking pictures or just waking around town. The iPod touch loop, and that’s included. And that’s included with the new iPod touch. So in addition to making the still pictures better, we’d make the HD video recording better as well. It’s now 1080p.

With video image stabilization and face detection. And just like iPhoto, you can download iMovie from the App Store and do your video editing right there on the device. We’ve improved the front camera as well, face time HD cameras, so better face timing as well as even recording 720p HD video there. And with the better camera, you take better self portraits, better profile pictures. So that’s the amazing new camera technology of the new iPod touch. So we’ve improved the wireless capabilities as well. We’ve upgraded Bluetooth to 4.0 with low energy capabilities. We have support for 802.11, a/b/g, and dualband N, and we have support now for up to 150 megabits per second max bandwidth. And with the with the A5 combined with Wi-Fi means we bring AirPlay Mirroring for the first time to the iPod touch which means you can take your gaming experience from your device to the big screen through Apple TV for the time with iPod touch. So improvements to the wireless across the board, and as you probably guess, this is all powered by iOS 6, the most advance operating system in the world with over 200 new features of iOS 6. And for the first time, we’re supporting Siri on the new iPod touch.

So the iPod touch is better now in every way. The 4-inch retina display, A5 chip, iSight camera and loop, 1080p video recording, better wireless, Lightning connector, Siri, and iOS 6. But it’s still even better than that ’cause for the first time, iPod touch now comes in colors. With five really beautiful choices and each one of them comes with its own loop, color-coordinated. So that’s the new iPod touch, the heart of our music lineup for the holiday along with the 7th generation iPod nano. And we’re going to update the colors of the iPod Shuffle to match the seven new colors of the iPod nano. So this is our iPod lineup for the holiday. But I want to turn our attention to just something else that’s really important to music, and that’s speakers. Apple, I don’t think a lot of people realize, is one of the biggest providers, if not the biggest providers of speakers in the entire world.

Think about it. Sound is so important to our products. We integrate sound and speakers and they’re just about everything we sell. We have speakers in our MacBooks, our iMacs, our iPhones, our iPads, our iPod touch, all come with speakers. But we also include speakers in these things, headphones. And to date, we’ve shipped well over 600 million sets of headphones. So if you’re doing the math, that means over 1.2 billion little speakers. And doing a great headphone is hard because ears are really, really challenging. Everybody’s ears are different but you got to make one size fit all. So that’s why we’ve spent three years in designing an entirely new headphone, and we call them EarPods. And for the moment you see them, you’ll see that not only they beautiful, they look unlike any headphone you’ve ever seen before. And we even made the controls bigger and easier to use. But we made a video even give you better ideas to what it took to create a breakthrough in both comfort and audio quality that the EarPods represent. So I’d love to run the video. The human ear is so unique. No two are alike. Making one headphone to fit everybody’s ears would be like trying to make one pair of shoes to fit everybody’s feet. I mean, it’s impossible. But that’s exactly what we tried to do with the new EarPods. Everything about their design is focused on delivering incredible sound of comfort. It’s part of an exhaustive research and development effort.

We three-dimensionally scanned hundreds of ears and look for a commonality. From that, we were able to determine a common volume. This was our starting point to developing a form to fit a broad range of ears. The shape of the EarPod is actually defined by the geometry of your ear. They rest comfortably in your ears, but they don’t create a seal the way in-ear headphones do. EarPods are designed to intentionally direct sound right into the ear canal. To optimize the acoustics, we’ve built in a series of ports, each with its own unique purpose. A port in the back tunes midframe frequencies and provide a consistent listening experience from one person to the next.

To provide rich powerful bass, we built ports into the stem that actually work in sympathy with the speaker. By letting air flow in and out of the acoustic chamber, they relieve pressure in and out of the speaker to move more freely producing greater low frequency sound. Sound is so important to the way that you experience an Apple product so we wanted to make a headphone that was absolutely the very best it could be.

So the new EarPods, I think the music lovers are really going to love this. And of course what we want to do is to make this available as soon as possible. So we’re going to start shipping this as a stand-alone accessory. So people can start upgrading their music listening experience right away, this would be available starting today. But you might have guessed that we want to include this with the couple of our products as well. So we’ll be including EarPods with the new 5th generation iPod touch, we’ll be including them with the new 7th generation iPod nano, and of course with the new iPhone 5. All include the new EarPods.

So, let’s review what we did today and go over a line up for the fall for the holidays. So we have the iPod Shuffle, still 2 gigabytes starting at only $49 but with 7 new colors. The iPod nano we’re making available on one high capacity 16 gigabyte model for $149, again, 7 beautiful colors. We’re going to keep the 4th generation iPod touch in the line up, but we’re going to double its memory, now have 16 gigabytes and iOS 6 over 200 new features at $199. And you can double your memory from there to 32 gigabytes for $50 more to $249. And the new iPod touch with its 6 millimeter design, A5 chip, 4 inch retina display, iSight camera, 5 colors, EarPods and more, for only $50 more than that, so 32 gigabytes for $299. And we’re going to make the new Nano and the new touch available next month, in October. And that is our lineup for the fall. We hope you love this as much as we love it because it’s the best iPods we’ve ever done. And we do have one more color for each of these as well. There are red ones.

These are our product red models that we make available on our Apple retail and our Apple online store and we give a portion of the profits of these products to fight AIDS in Africa. And to date, Apple has contributed over $50 million to this important cause. So hopefully you’ll buy one of these as well. So that’s our iPod lineup. I’d like to turn the show back over to Tim.

Tim Cook – CEO, Apple Inc.

So that’s iPod and iTunes. They are a great duo. Now, we do love music and we love this new lineup of iPods. We’re so excited about them that we created an ad and I’d like to run it for you this morning.

[Video Presentation]

It’s pretty cool. We are very excited about all of the products we’ve launched today. Let’s review. A whole new lineup of the world’s most popular music players with an entirely new iPod touch and a reinvented iPod nano; a completely new iTunes with a redesigned music players, seamless integration with iCloud and a stunning new look. And iPhone 5, the thinnest, lightest, and best iPhone we have ever shipped, powered by iOS 6, the world’s most advanced mobile operating system now with 200 new features for you to discover and explore.

Now, when you look at each of this, they are incredible industry leading innovations by themselves. But what’s that sets them apart and what places Apple way out in front of the competition is how they work so well together. Only Apple could create such amazing software, hardware, and services, and bring them all together in just such a powerful yet integrated solution. Apple has never been stronger. And that’s because of the dedication and creativity of our employees throughout the world that they bring to their jobs every single day. They are doing the best work of their lives, work that has real significance because delivering revolutionary products make a real difference in people’s lives.

Now, whenever we have a music event, we like to remind ourselves and our customers of why we do what we do and there’s no better way to do that than to have one of our favorite musical artist performed. We are truly honored today to have an incredible band joined us. They’re not only one of the most popular bands in the world. They’re one of the most artistically respected. They’ve won 11 Grammy Awards including 5 in the last year alone. They sell out arenas around the globe. And if you haven’t seen them before, you are about to discover why. Please join me in welcoming Foo Fighters.

Foo Fighters

Hello! What an amazing day, huh? This is called “Times Like These.”

[Music]

One of the great things about being here is getting to meet all the people, these incredible people. They’re shaping our future. And just like when you get to meet someone, like Little Richard or Tom Petty or Jimmy Page, you realize these are just people that took it upon themselves to do something different. They change the world and shape our future but you meet them and they’re flesh and bone. They’re people and it’s totally inspiring. This one is dedicated to all of those people.

[Music]

We got one more for you. This song is about starting over. It’s called “Walk.”

[Music]

Do you remember the days we built these paper mountains then sat and watched them burn? I think I found my place. Can’t you feel it growing stronger? Little conquerors. I’m learning to walk again. I believe I’ve waited long enough. Where to begin? I’m learning to talk again. Can’t you see I’ve waited long enough? Where do I begin? Now.

[Music]

Thank you very much again. You guys are absolutely awesome.

Tim Cook – CEO, Apple Inc.

I hope you’re as excited as we are by what you saw today. We’ve got a hands-on area set up so please get your hands on these amazing products. Thanks very much for coming.

 

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