in a while a revolutionary product comes along that changes everything

and Apple has been well first of all ones very fortunate if you get to work

on just one of these in your career apples been very fortunate it's been

able to introduce a few of these into the world 1984 we introduced the

Macintosh it didn't just change Apple it changed the whole computer industry

in 2001 we introduced the first iPod and it didn't just it didn't just change the

way we all listen to music it changed the entire music industry well today

we're introducing three revolutionary products of this class the first one is

a widescreen iPod with touch controls

the second is a revolutionary mobile

and the third is a breakthrough internet communications device so three things a

widescreen iPod with touch controls a revolutionary mobile phone and a

breakthrough internet communications device an iPod a phone and an Internet

communicator an iPod a phone

these are not three separate devices this is one device

and we are calling it iPhone

today today Apple is going to reinvent the

phone and here it is

No

actually here it is but we're gonna leave it there for now so before we get

into it

let me let me talk about a category of things the most advanced phones are

called smart phones so they say and they typically combine a phone plus some

email capability plus they say it's the internet or the baby internet into one

device and they all have these plastic little keyboards on them and the problem

is that they're not so smart and they're not so easy to use so if you kind of

make a you know business school 101 graph with a smart axis and the easy to

use axis follows regular cell phones are kind of right there they're not so smart

and they're you know not so easy to use but smart phones are definitely a little

smarter but they actually are harder to use they're really complicated just for

the basic stuff people have a hard time figuring out how to use them well we

don't want to do either one of these things what we want to do is make a

leapfrog product that is way smarter than any mobile device has ever been and

super easy to use this is what iPhone is okay we're gonna reinvent the phone now

we're gonna start with a revolutionary user interface is the result of years of

research and development and of course it's an interplay of hardware and

software now why do we need a revolutionary user interface I mean

here's four smartphones right Motorola cue the BlackBerry Palm Treo nokia e62

the usual suspects and what's wrong with their user interfaces well the problem

with them is really sort of in the bottom 40 they're it's it's this stuff

right here they all have these keyboards that are there whether you need them or

not to be there and they all have these control buttons that are fixed in

plastic and are the same for every application well every application wants

a slightly different user interface a slightly optimized set of buttons just

for it and what happens if you think of a great idea six months from now you

can't run around and add a button to these things they're already shipped so

what do you do it doesn't work because the buttons and the controls can't

change they can't change for each application and they can't change down

the road if you think of another great idea you want to add to this product

well how do you solve this hmm it turns out we have solved it we solved

it in computers 20 years ago we solved it with a bitmap screen that could

display anything we want put any user interface up and a pointing device we

solved it with the mouse right we solve this problem so how are we gonna take

this to a mobile device but what we're gonna do is get rid of all these buttons

and just make a giant screen a giant screen now how are we gonna communicate

this we don't want to carry around a mouse right so what are we gonna do

Oh a stylus right we're gonna use a stylus No

who wants a stylus you have to get them and put them away and you'll lose them

yuck nobody wants a stylus so let's not use a

stylus we're going to use the best pointing device in the world we're gonna

use a pointing device that we're all born with were born with ten of them

we're gonna use our fingers we're going to touch us with our fingers and we have

invented a new technology called multi-touch which is phenomenal it works

like magic you don't need a stylus it's far more accurate than any touch display

that's ever been shipped it ignores unintended touches it's super smart you

can do multi-finger gestures on it and boy have we patented it

so we've been very lucky to have brought a few revolutionary user interfaces to

the market in our time first was the mouse the second was the

click wheel and now we're gonna bring multi-touch to the market and each of

these revolutionary user interfaces has made possible a revolutionary product

the Mac the iPod and now the iPhone so a revolutionary user interface we're gonna

build on top of that with software now software on mobile phones is like it's

like baby software it's not so powerful and today we're gonna show you a

software or breakthrough software that's at least five years ahead of what's on

any other phone now how do we do this well we start with a strong foundation

iPhone runs OS 10

why why would we want to run such a

sophisticated operating system on a mobile device well because it's got

everything we need it's got multitasking it's got the best

networking it already knows how to power manage we've been doing this on mobile

computers for years it's got awesome security and the right apps it's got

everything from cocoa and the graphics and it's got core animation built in and

it's got the audio and video that OS 10 is famous for it's God all the stuff we

want and it's built right in to iPhone and that has led us create desktop class

applications and networking right not the crippled stuff that you find on most

phones this is real desktop class applications now you know one of the

pioneers of our industry Alan Kay has had a lot of great quotes throughout the

years and I ran across one of them recently that explains how we look at

this explains why we go about doing things the way we do because we love

software and here's the quote people who are really serious about software should

make their own hardware you know Alan said this thirty years ago

and this is how we feel about it and so we're bringing breakthrough software to

a mobile device for the first time it's five years ahead of anything on any

other phone the second thing we're doing is we're learning from the iPod syncing

with iTunes you know we're gonna ship our hundred millionth iPod this year and

that's a tens of millions of people that know how to sync these devices with

their PCs or Mac and sync all of their media right onto their iPod right so you

just drop your iPod in and it automatically syncs you're gonna do the

same thing with iPhone it automatically syncs to your PC or Mac right through

iTunes and iTunes is going to sync all your media onto your iPhone your music

your audio books podcasts movies TV shows music videos but it also syncs a

ton of data your contacts your calendars photos which you can get on your iPod

today your notes your your bookmarks from your web browser your email

accounts your whole email setup all that stuff can be moved over to iPhone

completely automatically it's really nice and we do it we do it through

iTunes again you go to iTunes and you set it up just like you'd set up an iPod

or an Apple TV and you set up what you want sync to your iPhone and it's just

like an iPod charge and sync so sync with iTunes third thing I want

to talk about a little is design we've designed something wonderful for your

hand just wonderful and this is what it looks like it's got a three-and-a-half

inch screen on it it's really big and it's the highest resolution screen we've

ever shipped it's a hundred and sixty pixels per inch

highest we've ever shipped it's gorgeous and on the front there's only one button

down there we call it the home button it takes you home from wherever you are and

that's it let's take a look aside it's really thin

it's thinner than any smartphone out there at eleven point six millimeters

thinner than the Q thinner than the Black Jack thinner than all of them it's

really nice and we got some controls on the side we got a little switch for ring

and silent we've got a volume up and down control let's look at the back on

the back the biggest thing of note is we got a two megapixel camera built right

in the other side and we're back on the front so let's take a look at the top

now we've got a headset jack three-and-a-half millimeter all your

iPod headphones fit right in we've got a place a little tray for your SIM card

and we've got one switch for sleeping wake just push it to go to sleep push it

to wake up let's take a look at the bottom we've got a speaker you've got a

microphone and we've got our 30 pin iPod connector so that's the bottom now we've

also got some stuff you can't see we've got three really advanced sensors

built into this phone the first one is a proximity sensor it senses when physical

objects get close so when you bring iPhone up to your ear to take a phone

call it turns off the display and it turns off the touch sensor instantly why

do you want to do that well one to save battery but - so you don't get spurious

inputs from your face into the touch screen just automatically turns them off

take it away boom it's back on so it's got a proximity sensor built in it's got

an ambient light sensor as well we sense the ambient lighting conditions and

adjust the brightness of the display to match the ambient lighting conditions

again better user experience saves power and the third thing we've got is an

accelerometer so that we can tell when you switch from portrait to landscape

it's pretty cool you show it to you in a minute

so three advanced sensors built-in so let's go ahead and turn it on this is

the size of it it fits beautifully in the palm of your hand so an iPod phone

and an Internet communicator let's start with the iPod you can touch your music

you can just touch your music it's so cool you got a widescreen video you can

find your music even faster gorgeous album art on this display

built-in speaker and why not cover flow first time ever on an iPod and so rather

than talk about this some more let me show it to you

all righty now I've got some special special iPhones up here they've got a

little special board in them enough so I can get some digital video out I got a

little cord here which goes up to these projectors and so I got some great

images and you get to see what it really looks like

so let me I've got a camera here so you can see what I'm doing with my finger

for a few seconds and let me go ahead and get that picture within picture up

I'm going to go ahead and just push the sleep/wake button there we go right

there and to unlock the phone I just take my finger and slide it across all

right I'm gonna see that again they sleep we wanted something that you

couldn't do by accident in your pocket and just slide it across boom and this

is the home screen of iPhone right here and