October Event 2014

[ Silence ][ Music & Cheering ][ Music ][ Applause & Cheering ]Good morning. Good morning. Good morning. Thanks to everyone for joining us this morning. It’s been an incredible year. And tremendously busy already but we’ve got a few more thingsto share with you before we close out the year. As you saw from the video, we had an amazing receptionto the iPhone 6 and iPhone 6 Plus launch. The stores were absolutely electrifying with energy. It was unbelievable. There was no better place on earth to be. These phones are the best phones we’ve had ever created. And the reviews have been off the charts. It doesn’t get any clearer or any better than this reviewfrom one of the industries preeminent reviewers. Walt Mossberg said simply,”It’s the best smartphone on the market. “You can’t hope for better than that. [ Applause ]Now, with great reviews and a great customer response,it’s no wonder that these iPhones have become the fastestselling iPhones in history. And the first 30 days, we have set a new high watermarkfor the most orders taken and I don’t mean by a little,by a lot, a whole lot. [ Applause ]Our rollout around the world is going well. In fact, by the end of this week we’ll be in 32 countriesand just in a few hours from now, we will launch in Chinawith support for TD-LTE and FDD-LTE, iPhone 6and 6 Plus customers will have accessto China’s fastest networks on all 3 major networks. This is the very first time we’ve launched a new iPhoneon all three networks and we’re doing it perfectly alignedto the early stages of China’s huge 4G rollout. We couldn’t be more excited about this and I will tell youthat the preorders as you might guess have set a new record. We can’t wait to get started. With what’s going on in China, what’s going on hereand the other countries around the world and all of the reviewsand the customer response,this is our biggest iPhone launch ever. [ Applause ]So, that’s a quick update on iPhone. Now, the iPhones also get the benefitof another major announcement that we made last monthand of course I’m talking about Apple Paywhich is an entirely new way to pay for thingsin stores and in apps. Apple Pay is built right into Passbook integrated right inand everything you need is built on iPhone 6 and 6 Plus. It’s an easy, it’s secure and yes,it’s a private way to pay for things. We think that it is going to be profound. We’re getting going in the United States. We’ve got all three major networks supporting usand we have all of the nation’s top banks supporting us. And just since last month announcing this we have signedanother 500 banks. They will be rolling out support later this yearand early next year showing the supportand the enthusiasm around Apple Pay. We’ve got many of the largest retailersin the country supporting us and as you might guesssince we announced last month, there’s even morethat will be rolling out between now and end of the year. Now, Apple Pay also works online in apps. You can buy products and services right in the app. And it’s pretty simple. Find those pair of Beats headphones you want,and boom, you’ve bought them. I’ve been wanting this a long timeand Jimmy won’t get me a pair. [ Laughter ]We’ve got a lot of people behind us here as well. A lot of great apps and a lot of great developersand as you might guess since last month,many more people had committed to rollout between nowand the end of the year. So, we believe Apple Pay is going to be huge. It’s going to change the way we pay for things. And, I’m excited to announce todaythat we are beginning on Monday. [ Applause ]The journey begins and we can’t wait. Now, also last month,we announced an entirely new category. Of course I’m talking about Apple Watch. It’s the most personal device we’ve ever created. You can wear this powerful technology right on your wristand it’s just as much about personal expressionas it is about functionality. We’ve had great reception from the tech community. But we’ve also had great reception from the healthand fitness community. And, by people who know a lot about fashionand style even more than I do. [ Laughter ][ Applause ]In fact, this month the Apple Watch ison the cover of Vogue China. We are really proud of this. It’s an incredible image and we’re so proudto be associated with Vogue in China. Now, as we showed you last month, we have been workingwith selected third party developers on Apple Watch. And, like BMW, like American Airlines, like Starwoodand they’ve created some really unique personal experiencesfor Apple Watch. I’m pleased to tell you today that we have developed WatchKitwhere many other developers can join this partyand we are rolling out WatchKit next month and timefor developers to really do some fantastic work before we beginshipping Apple Watch. We are– we can’t waitto see what amazing experiences they’ll come up with. Now, Apple Watch will be shipping in early next yearand every day I look forward to that day. [ Laughter ][ Applause ]So, that’s some quick updates around iPhone 6, iPhone 6 Plus,Apple Pay and Apple Watch. They join an incredible product lineup onethat I would call our strongest product lineup ever. Each of these products are not only individually the bestin class within its category but they’ve been designedto work seamlessly together. And this is made possible by the most advanced operating systemson the planet, iOS 8 and OS X Yosemite. Today we’ve got some terrific updates on both of theseand to tell you all about them. I like to turn this stage over to Craig Federighi. Craig. [ Applause and Cheering ]Good morning. [ Applause ]Well, iOS 8 has been out for just under a month and I’dlike to give you a quick update. Now, iOS 8 of course is a major new operating systemfor iPhone, iPad, and iPod touch. And the early reviews have been just great. The Wall Street Journal said that “iOS 8 pulls out aheadof the competition by leveraging the greatest strengthsof the iPhone: its app and its ecosystem. “But what’s even cooler is just how manyof our customers are already using it. You can see that in just under four weeks,nearly half of iOS customers are running iOS 8. Now, if you consider that in combination with iOS 7,that means that 94 percentof iOS users are running their operating system that shippedin just over the last yearwhich means they’re getting the latest featuresand all the latest security protections. Now, the situation with other mobile platforms issomewhat different. So, when you look at Android for instance, the vast majorityof customers are running an operating system that’s morethan two years old. And if you focus just on KitKat, the latest release. After 313 days, it achieved just 25 percent penetrationof our user-base. iOS 8 has nearly doubled that in just 26 days. We couldn’t be happier. [ Applause ]Now, iOS 8 is a major feature release with somethingfor all of our customers. Things like TapToTalk, and easy location sharing in Messages. Our new QuickType keywordwith smart predictive typing suggestions. And Family Sharing that makes it easy to share your calendars,your to-dos, your photos and even your purchaseson the App store and the iTunes store. But what really sets iOS 8 apart is all the incredibletechnologies that it puts in the hands of our developers. It’s amazing what they’ve done with them. Let’s take a look. We’ll start with extensions. We’ve seen an absolute flood of updates to the App storewith applications improving their functionalityvia extensions. So now, with iOS 8, when you swipe down from the topof your phone to get into your today view,you have access not just to the system’s built in widgets,but also these great third party widgets as well. And when it comes to sharing, you of course have allof the system sharing options but also thoseof the third party apps you use the most. And so, with just a single tap for instancefrom almost anywhere in the system,you can post to Evernote. Now, we’ve also added support for third party actions,the ability to edit your photos using third party filterswithout even leaving the photos app. And access to your Documents. Not just on iCloud, but also in Box, in Dropbox,and just about any other boxwhere we happen to put some files. Now, we also have support for third party keyboards. So, whether you like to type by swiping your finger allover the screen or enrich the life of your friendswith sending them animated gifsor communicating your native language of Klingon,iOS 8 has you covered, believe itor not this is actually in the App store. So[ Laughter ][ Applause and Cheering ]Go Klingon. [ Applause ]So, next up, HealthKit. Developers really embraced HealthKit. So, when you’re taking a run, or cycling with Strava,all of the data about your workout, activity data goesinto your Health profile in HealthKit. With apps like Lifesum they are ableto combine activity information with informationabout your eating habits to make a custom diet recommendations. And then you have apps like Sharecare, AskMD which are ableto take your profile including things like datafrom your Bluetooth scale or other sensors to make–to offer personalized health consultation. Now, we’ve also given developers access to Touch ID,which means now if you want to get into eTradeor unlock your passwords in one password, you can do itwith a security and the convenience of your fingerprint. And then, there’s Metal. With Metal, you get direct access to the powerof the 64-bit A7, A8 and the amazing GPUs they have inside. And so, whether you’re racing around the track in Asphalt 8,creeping around the rooftops in Assassin’s Creed Identity,or slashing your way through Gods of Rome,you can do so with unparalleled visual fidelity,things you never seen on mobile platforms. [ Applause & Cheering ]Next is Swift. An entirely new programming language that we introducedto take development of iOS and OS X apps to the next level. Now, Wired said that, “Swift’s impact could be greaterthan any other language that has sprung up in recent years,and it may achieve mass adoption fasterthan any language in modern history. “And from everything we can see, they are right. We’ve seen a flood of applications written in Swift,in the App store already. And our enterprise partner, IBM, has completely embraced Swiftfor their custom enterprise applications. In fact, they’ve said that, “Swift is incredibly interactiveand intuitive, giving the thousands of developerson our teams the flexibility to create powerful appsthat will transform enterprise mobility. “[ Applause ]There will be many new Swift programmers being mentored everyday because major universities have incorporated Swiftinto their programming curriculumto teach new students this awesome new language. That’s a quick update on iOS 8. Now, let’s turn our attention to iOS 8. 1. Now, needless to say when we put a major new operating systemin the hands of hundreds of millionsof users we do get a little bit of feedback. And that takes us to improvements. So, one of our major goals of course with iOS 8. 1 isto address the top sources of customer feedback and of courseto even bring back the beloved camera roll. But not just that, we’ve added support in 8. 1 for Apple Pay,on iPhone 6 and 6 Plus and the public betaof iCloud Photo Library. So, now, everyone can have every photo you takeon all of your devices. And this means that any organization you do,or any edits you make on any device are instantly reflectedon all of your devices. This is true on your iPhone, your iPad,and you can even access your photo library on your Mac,or on your PC via icloud. com. Now, this isn’t just your photos,it’s also your videos as well. And they’re on their original format and resolution. No downscaling. It’s available in public beta with iOS 8. 1and it uses your iCloud storage. So, your first five gigabytes are free,for just 99 cents you can get 20 gigabytes moreand you can get a massive 200 gigabytes for just 3. 99. So, that’s iOS 8. 1 and a quick update on iOS 8. Now, let’s turn to OS X and Yosemite. So, it was just this Junethat we publicly unveiled Yosemite to the world. The reception has been fantastic. We’ve had over a million members of the Mac community signup to be part of the Yosemite public beta. And the reception has been just awesome. We’re all in love with the gorgeous new design of Yosemite. It’s just amazing. Has this gorgeous dock with these vibrant icons,it’s so precise, this clean and consistent useof typography throughout the system. Notification Center is more useful than ever. Let you get it all of your widgets justat a glance including third party content. And Spotlight has been absolutely super charged. So now, in addition to searching content locally in your Mac,it also taps in to sources on the internet,things like maps and Wikipedia. Just right there whenever you need them. And of course all of the apps builtinto Yosemite have been completely revitalizedwith this new UI. So, Safari for instance, all the power of the world’s most–powerful browser are packed rightinto that elegant toolbar right there at the top. If you want to get it all of your favorites,just tap in the address field, they’re right there. And if you start typing,you don’t just get Google search suggestions,you also get Spotlight suggestionswhich often provide the answer to your questionwithout even completing the search, it’s just really fast. Now, Safari is better at sharing than ever as well. You can share the system sources and through extensionsto third party sources as well right with in the app. Safari users also of course love tabs. And so, we have a great new tab view provides a bird’s-eye viewof all of your tabs, stacks, multiple pages from the sitesinto stacks like this and you get access to tabs you’ve openedacross all your devices listed right there along the bottom. But of course Safari is also blazing fast. In fact, when you look at the kind of JavaScript that’sin typical websites, Safari is literary six times fasterthan other browsers. And when it comes to battery life,no browser can compare to Safari. If you look at our 13-inch MacBook Air for instance,browsing Safari gets you more than two hours,greater battery life than other major browsersand with Netflix streaming, three hours longer. Safari is just incredibly efficient. Now, our Yosemite designed extensive courseto Mail as well. It’s not just gorgeous but it’s more functional than ever. Now, you’re replying to a message and you need to fillout a form, you can use mark up. You can even fill out your signatureon a form right there inside the message. It’s incredibly convenient and you can also markup your drawings as with your pictures as wellwhich is a fantastic way to communicate. Now, Mail also now has Mail Dropso you can send absolutely enormous attachmentsup to 5 gigabytes securely encrypted through iCloud. Messages has a beautiful new design–excuse me, for Yosemite as well. And it has powerful features like named group chats,easy location sharing and really convenient accessto all the photos that you share in your conversations. iTunes has been updated for Yosemite as well. It has a convenient new shelf across the top with allof your recent additions to your library. And then there’s iWork. It’s the most popular desktop productivity suiteacross all Apple devicesand it’s a got a great update for Yosemite. In addition to this beautiful new design, it’s more functionalthan ever with the side bar that summarizes all the commentsand documents that you have under review, we have an updateto Numbers, lots of power user features like the abilityto transpose tables in a single step. And then there’s Keynote with a customizable presenter displayand these cool new text effects. It’s really nice. [ Applause ]So next, there’s iCloud Drive. So, with iCloud drive, you can store any file in the cloud. Its accessible right from the Finder,right from the side bar there,and you get access the application folders of allof the applications on your Mac. But not just that, also the data that you have scoredfor application on your iOS devices. And best yet, you can put any other files you want in thereand organize however you want in folderswith tags and search them. And then access them across all of your devices,your iOS devices, your Mac, and if you’re having to workunder extreme duress even a Windows PC. [ Laughter ]So, now–[ Applause ]So, those are just someof the wonderful new user features in Yosemite. But actually, what makes both Yosemite and iOS 8so special is the way that they work together. Now, working together is something we’ve been focusedon for years now and at the center of it is iCloud. It’s almost easy to takefor granted the way we can edit our contactsor update our calendar, or to-do’s or Safari bookmarksand we just know that it’s going to be available to usacross all of our devices. And now, with Yosemite and iOS 8, all of our documentswith iCloud Drive and all of our photos and videos are syncedwith our iCloud Photo Library. We’ve also advanced on technologies for our devicesto communicate in proximity, taking advantageof the most advanced Wi-Fiand Bluetooth low energy technologies. So now, with the latest Macs and iOS devices,you can actually AirDrop between iOS and OS 10. And you can AirPlay to your Apple TV evenwithout connecting to any Wi-Fi network. It’s really awesome. [ Applause ]But the area where I think we’ve really taken itover the top is something we call Continuity. Now, with Continuity, your devices are aware of each otherand allow you to work at any momentwith the device that’s right for that time. It starts with Handoff where you can work on one deviceand just pick up where you left off with just a swipeacross the lock screen of another. And there’s Instant Hotspot, so you can take advantageof the cellular data connection of your phone from your iPador your Mac without even touching the phone in your bag. There’s the ability to receive text messages on any device. So, not just your iMessages but also you can sendand receive SMS from any of your devices. And finally, you can also makeand receive regular telephone calls using your Macas a speakerphone using your phone. It’s really magical. And to drive that home, I’d like to give you demo now. [ Applause ]All right. Well, so let’s take a look at life in the world of Continuity. Now, Tim has sent me a note here about doublingdown on secrecy at Apple. We want to preserve the same kind of airtight securityor secrecy rather that makes a the announcements at an eventlike today a shocking revelation to all of you. So, I’ve been tasked to create a new employeeorientation presentation. And so, I’ve been taking some photos around campus about someof our new secrecy measures. We’re tightening things down a little bit. So, we see redacting some things in the menu. We don’t want any leaks there. We’ve upgraded the door to Johnny’s lab and, you know,I should favorite some of these photos because I think I’dlike to incorporate them in my presentation. We’re saving a step with the printer,just go straight into the shredder. And of course, we’ve increased the number of laserson the path to the bathroom. So, that’s good. So, I can now incorporate this right here in my presentation. We’ve got my cover slide here and this looks like a good placeto add that new content. But, you know, I actually have my iPad right here. And what’s really great is with Continuity,I can just pick up where I left off. You know, it’s in the lower left hand corner of the screen. My iPad is aware of what I’ve been doing on my phone. There’s little keynote icon, I can swipe upand it takes me right to that documentin exactly the place where I was working. So, it knows right where I am. I’m just going to open this up and we’ll seethat I can see my photos here. Let me try that again. There we go, they are mythey’re the photos that I just favorited. And just to show you that this is all completely live. I’m going to go back into my photo library here. I’m going to favorite this last photo with the lasers,give it a little heart. And you’ll notice here in–on the iPad, it shows up automatically right there. [ Applause ]That’s super cool. So, let’s just add that photo to my presentation. And, you know, while I’m working on my iPad,my phone can even be across the house. And if I were to receive an SMS for instance,I could pick it up– oh, here it is. What a coincidence. Right here on my iPad. This is a regular SMS. Now it says, “Hey Craig, check out the latest Apple rumor. “Uh-oh, well, these are usuallyhave no merit at all but I’ll just checkin as what this is all about. Apple “Spaceship” actual spaceship. OK. Well, it turns out in this case unfortunately they didnail it. So, this will be a good one to addas cautionary tale to my presentation. Now, I could do that right here in my iPad but, you know,I’ve got this beautiful Mac right here. Let me just pick up where I left off on a Mac. So, we’ll just look at the Mac display and you knowas the Mac is aware of what I’ve been doing. You see right down here, it saysthat I was using Safari in my iPad. I click and it takes me right to that same page. It’s just magical. And of course, I can get to my presentation as well. We see I have iCloud Drive right here in the Finder. And there’s my keynote folder. And of course there’s my presentationon secrecy at Apple. So, I can open that up and of course it takes me exactlyto where I was in the presentation. So, let’s add my picture for about Controlling Leaks,I can just drop that one right in there. That’s really cool. And so, next, I’m going to moveon to the next slide in my presentation. And, you know, I heard that our new Chief of Secrecy,Steven Colbert has some concernsabout his part of the presentation. And so, actually, I can give him a callfrom my Mac right here at his office. So, let’s just type up Steven, there’s his work numberand I can just dial right here and it’s going to dial–my Mac is going to actually make a speakerphone callthrough my phone. And by the way, yeah, I have the coolest job in the world. I get to talk to Steven Colbert. [ Ringing ] Hello? Hi Steven, it’s Craig from Apple. I’m sorry, I don’t recognize that name. Oh, oh, right. Hello Red Delicious, this is Granny Smith, over. Is the squirrel in the basket?Roger. Foxtrot Thunderbolt Retina Swift Lightning. OK. The line is secure. Glad you called today. I[ Applause ]I have some critical feedback. [ Applause ]I have some very critical feedback on the contentof your presentation today specifically I’ve got a bigproblem with my title. >> Well, Chief of Secrecy officer,that’s a pretty impressive title. >> I just don’t think it’s big enoughto capture how important my role is at Apple, OK?Let me run this one by you. Hear me out. Supreme Allied Commander of Super Secrecy. I don’t know. Craig, if Supreme Allied Commander was good enoughfor Ike, it’s good enough for me. OK it beat Hitler. I will also accept Intergalactic Chancellor. Intergalactic Chancellor, how about– Yes. Supreme Commander? You let him know? Who? I’m sorry. I mean, Chairman Honeycrisp. Yes. Absolutely. I will let the chairman know. [ Applause ] Glad you keep it my way. Now, please, get back to work because you know what I seewhen I look at my wrist?My wrist, where’s the watch?Chop, chop, I’m Jonesing for some jewelry, Craig. I’ll get right on it Steven. >> All right. Over and out Granny Smith. >> Over and out Red Delicious. [ Cheering & Applause ]I’m glad we were able to sort that out. So, we-I have one more slide to work on my presentation here,the– oh, an email update from Philabout a new badging protocol. So, check out this video. It really demonstrates Apple’s commitment to badging excellent. Well, that’s great. I’m going to drop that one in my presentation. And, you know, I’m sure it’s a great video. So, I’d like to play this now. And what’s really cool is I have an Apple TV. We can bring that up here and we can see it can actually AirPlayfrom my Mac to my Apple TV just like this. And project my presentation that wayso we can enjoy the presentation I put together. And of course to control the presentation, you know,the best remote you have is the one you’re wearingon your wrist. So, I’ll just bring up a remote here. Let’s see, so there is our Secrecy Team. Of course, we’ve got the path to the bathroom, controlling leaks,our new Supreme Commander. And let’s take a look at that video from Phil. [ Music and Noise ][ Laughter ][ Music and Noise ]See you at lunch. [ Laughter & Applause ][ Music and Noise ][ Laughter ][ Applause & Cheering ]>> Thank you. Now, I have a full understanding of Continuity. All right. So, this is just a quick overviewof the amazing new Yosemite releasefrom its beautiful new design, powerful spotlight search,iCloud Drive, the amazing and elegant new Safariand of course, these Continuity features. Now, there’s much, much more to Yosemitethat I can possibly cover todaybut the good news is I don’t have to because now,all of you can get access to Yosemiteon the Mac App Store today. [ Applause ]And you know what?It’s available for free. There’s also 8. 1 which has its support for Apply Pay,also iCloud Photo Library and Continuity availablefor download this Monday. And it’s free as well. [ Applause ]Finally, iWork, an update for OS X alsofor iOS also available today and also free. [ Cheering & Applause ]And that is my quick update on iOS 8 and OS X Yosemite. Thank you. Back to you Tim. >> Thanks Craig. [ Applause ]It’s really great to have Steven on board. I hope he can do a better job than I’ve doneon controlling [inaudible]. I’d like to now talk about iPad. The iPad is this simple and magical device. It’s always been a unique blend of simplicity and capabilitybut while the iPad has beautifully simpleon the outside since the very first one,it has advanced technology just jam-packed on the inside. From Apple’s custom designed powerful chipsto the ultra-fast Wi-Fi and cellular connectivityto the incredible eyesight and face time cameras. The technology is jam-packed in this incredibly thinand light package that you can takewith you everywhere you go and use all day long. And as we packed more and more power and moreand more performance and more capability in iPad,our customers and developers have begun to use itin ways we could not imagine. And now, as you look around, iPad is everywhere. It’s transforming the way we work, the way we learn,the way we play, and it’s transforming the way wecommunicate, with so many people using iPad for so many things,in so many different places. It’s not surprising that we’ve sold more iPadsin the first four years than we’ve soldat any product in our history. In fact, we’ve sold over 225 million iPads around the world. [ Applause & Cheering ]To put this in a little more perspective,if you look at the top four by volume, PC manufacturers,the number of sales that they’ve done for the last 12 monthsand compare that to iPad, iPad beats them all. And this is their entire PC lineup every notebook,every desktop, every two in one, every all in one,every toaster refrigerator in one, all of them. This is pretty fantastic and not by a little but by a lot. But what’s more important to us isthat iPad has consistently been rated number onein customer satisfaction. This is what makes our heart singand iPad mini Retina has scored an unbelievable 100 percentcustomer sat. [ Applause ]These numbers are– you just don’t see these numbersin customer sat. And so, why are so many iPad users so satisfied?We think it comes back to this unique blendof simplicity and capability. And the fact that you can do so many things on iPad and you havesuch a great experience doing it. At the root of this is that we have over 675,000 appsin the App Store that have been custom designedto take advantage of the big beautiful screen on iPad. And this is a huge advantage over our competition. The Verge said it well, “A tablet is only as goodas what you can do with it, and thanks to the hundredsof thousands of apps for the iPad Air, you can do morewith it than any other tablet. “This was one of the reasons they named the iPad Air,”The best tablet you can buy. “[ Applause ]So, iPad Air is number one in customer satbut it’s also number one in usage. It’s number one in education. It’s number one in enterprise. It’s number one in consumer. When we launched the iPad Air just a year ago we didso by showing that all of this power of the iPad wasin a design that was so thin. It was thinner than a pencil. You may remember this, so what do you dowhen you make the best tablet in the world?How do you make it better?You do this. [ Music ][ Applause ]This[ Applause ]This is the new iPad Air 2. It’s unbelievably gorgeous, and look how thin it is. Can you even see it?[ Laughter ]It is so incredible. And to tell you more about it,I’d like to invite Phil Schiller up. Phil. Thank you, Tim. [ Cheering & Applause ]Thanks. [ Applause ]Thank you. Well, good morning everyone. I’m so excited to be able to tell youabout the incredible new iPad Air 2. It is the thinnest iPad we have ever made,just 6. 1 millimeters thin. That’s 18 percent thinner than the first iPad Airwhich was already 20 percent thinner than the iPad before it. It makes it the world’s thinnest tablet. It’s incredibly beautiful to hold all day long. The progress the team has madeover just the last couple years is unbelievable. Here is the original first iPad next to the new iPad Air 2. The new iPad Air 2 is so thin you can stack two of themand still be thinner than the original iPad. It is amazing. [ Applause ]What the team has done to pack so much technologyand performances into the thinnest iPad is unbelievable. So, how did they do it?Let’s start with the display. The display is made up of a number of components,primarily the LCD, the touch layer and glass. And in every iPad there’s been a micro thin layer of airbetween each of those layers. We’re not satisfied with that. The team has optically bonded those together, laminated themto make a single component with no air gap. And that reduces the internal reflectionand makes a sharper image and a thinner display. It makes the graphics of the text feel like they sit righton top and you’re touching them with your finger. It’s really beautiful. In addition, we’ve now created an anti-reflective coatingfor this multi-touch surface. This has never been done in a tablet before. It reduces reflectionsby 56 percent making it even more beautiful as an image. So, it is an incredible display. It is the only tablet that has this kind of a surfaceand has the lowest reflectivity of any tablet. So, this would be the best tablet display you’ve ever seenand the thinnest tablet, but there are so much morethat makes the iPad Air 2 great. And it starts with the brains inside it. A whole new generation chip, A8X. You’ve heard of the A8 chip with the iPhone 6 and iPhone 6 Plusand it’s blowing people away. But this is a new version created specificallyfor iPad Air 2. It is unbelievable. It’s a second-generation, 64-bit architecture. It has 3 billion transistors. The iPad Air had an A7 with 1 billion transistors. Three billion, it deliversup to 40 percent faster CPU performancefor most of your apps. Some apps can achieve 2X performance in CPU. And the graphics are out of this world. Two and a half times faster what was already the industry readinggraphic performance. Just look what the team has done. The original iPad started with an A4 chipand now we’re 12 times faster than that with iPad Air 2. And check out this graphics performance. We’re now at 180 times faster. [ Applause ]Add to that the work the software team is doingwith technologies like Metal so that developers get full accessof that performance without any software overhead. We’re able to now deliver console level graphicsin the palm of your hand. And that’s what a lot of the developers are doing. We’re working with game developersand they’re now bringing the engines notfrom their mobile gamingbut from their desktop gaming systems right on to iPad Air 2. And all these power in such a thin package,the team has worked to ensure that you havethat great all day battery life, 10 hours of battery. So you don’t have to give up any of that. Along with the A8X, we have the new M8, motion coprocessor. This works to read data from the sensors like the accelerometerand gyroscope and it instantly calibrates itso all your apps get incredibly accurate data. And there’s also the new barometerfor measuring relative elevationand developers can take advantage of that too. But perhaps, the feature people love the mostabout their iPads is the camera, the built-in iSight camera. And some people have been surprised by thatbut it really makes a lot of sense. The iPad is the best view finderfor composing your photos and your videos. You can see the scene, you can take incredible photos,you can edit them right on the device and share them instantlywith people around the world. And not only do we all like taking pictures and videosbut developers like taking advantage of these camerasto build incredible applications that haven’t existedon any other platform, things like applicationsfor helping coaches train their players with coaches’ eyeor consumer apps like Prizmo that lets you scanand translate documents on the fly. Or apps like Caribu that let a parent read with face timeto their children from anywhere around the world, or Homestylerthat lets you create a virtual reality image of your own homethan lay out the furniture and interior design of it. This and hundreds of more applications take full advantageof the cameras we’ve built into the iPad. And they, the developers and the customers who use this app,they’re going to love the new iSight camera. It’s a huge jump forward for iPad. It’s a full new 8 megapixel iSight camera. It has large 1. 12 micron pixels. Has a fast 2. 4 aperture that takes photos at 1080p HD video. It has a great sensor. It’s combined with the Apple design lensbut really what rounds it out is the brains behind it all,the image signal processing that’s done in that A8X chip. And it does an incredible job. I’m going to show you some photos now that were takenwith an iPad Air 2, unretouched right off of it,and tell me you’re not going to be blown awaythat these were taken with an iPad. Look at that photo, that’s a beautiful landscape scene. You can see the quality of the auto HDRthat creates an amazing exposure. Look at the low noise in that blue skyand it is a remarkable photo. Here’s another. People are just not going to believe these are takenwith the iPad you bring with you to do workand you’re taking incredible photos with it. Here’s a shot from above the Golden Gate Bridge. You see the incredible accurate color it deliversand the great depth of field. Here’s my favorite of the bunch. It’s a portrait photo. The skin tones are just perfect. The background is painterly. It’s an amazing photo. Of course, we all love taking macrosand showing them to the world. Here’s a great one. Look at the level of detail on the feathers. You can’t tell, is that taxidermy or live. Don’t worry, it’s live. For the first time with iPad,you can take large panoramas up to 43 megapixels. So you take your iPad in vacation,you can share your mountain scenery with all your friends. For the first time on iPad, you can take burst mode photos. So, taking something that’s high speed action,you can grab it just like this photo. Yeah, isn’t that incredible. For the first time with the iPad iSight camera,you can do timelapse. So, here’s a timelapse. It’s taken in Venice, you maybe recognize it. Now, there’s a group of boats that are goingto start coming down together. See there they are. That was the George Clooney wedding party that cameby as we were shooting them. [ Applause ]Still waiting for my invitation. This we took recently in Albuquerqueat the balloon fiesta, that gathering there. It’s a lot of fun. Yeah, it is. Also, for the first time in iPad, you can do slo-mo videos. Yeah, customers are going to love taking these. This is 120 frames per second at 720p. [ Noise ]Pretty cool. [ Applause ]If you heard that audio, there’s now dual microphonesto get better quality audio in your videos as well. One addition to the all-new iSight cameraand all those capabilities is a new FaceTime camerain front side as well. A whole new FaceTime camera sensor,has a larger 2. 2 aperture, let’s in 80 percent more lightand combined with the 8X chip, you get improved face detection. For the first time, you can do burst selfieswhich kids love to do. This chip is amazing. It does HDR with a single image not combining multiple images,which keeps it really sharp. And you can do videos with HDR as well. So with all these great new cameras,all these great new performance, also faster connectivity too. iPad Air 2 has faster Wi-Fi, 802. 11ac with MIMO. That delivers 2. 8 times faster performanceup to 866 megabit per second throughput. There’s also faster LTE with more bands. There’s up to 150 megabit per second,that’s using carrier aggregation. And has 20 LTE bands that’s more than any other tablet,so it connects at high LTE speedson more networks around the world. But perhaps the most requested featurefrom customers is Touch ID. [ Applause ]Now like many of us, if you have Touch ID in your iPhone,you’ve probably picked up your iPad and put your fingeron the Home button, only to see that it doesn’t unlockbecause you didn’t have Touch ID. We get used to it so quickly. Well now with iPad Air 2, there is Touch IDand it reads your fingerprint and quickly unlocks your iPadwithout having to enter the passcode. And it works with our stores. So you can purchase in the iTunes Store, in the App Store,and it works with the new iOS 8 developer appsthat support Touch ID so it can unlock Evernote or Mintor your Day One journal, just with your fingerprint. And as you know, all of us who use iPads,we’re prodigious shoppers. We love to use our iPad to sit back and surf the weband make purchases and–particularly with all those 675,000 apps,many of them help us make purchases. And now, with Touch ID, you’ll be able to use Apple Payto make online purchases. Now this isn’t for a retail point of sale purchase,this is for online purchasing within all the apps,they’re going to support Apple Pay, and there are goingto be many of them growing starting on Monday. So it would be the best way to shop online. Of course, iPad Air 2 comes with the brand new iOS 8. 1that Craig just showed usand all the incredible features it has. And our developers have had a great time using the performanceof the A8X chip and taking advantage of all the poweron iPad 2 to do remarkable things, and developers have too. We’ve given a few of them early access to the iPad Air 2and to see what they can do with itwith their incredible applications. Well, I like to show you two of those this morning. The first is a great team, the– two brothers started a companyin Lithuania, and they’ve had a hit applicationin OS X called Pixelmator. Perhaps you know it. It’s a professional quality image editing application. It’s been a big hit on the Mac and now they’re here todayto show you the work they’re doing on iPad. I’d like to bring up Aidas to tell you all about it. [ Applause ]Welcome. Thank you. Thank you. After two years of work, we are really excitedto show the new Pixelmator for iPad today. It’s a full featured image editing app. We are going to open a 4K image of the Arabian Desert. It’s really exciting that we can work so smoothlywith large images like this. The new iPad handles those images fasterand better than ever before. We created a graphic, we’re using the shadowof the actual oryx in the sand and some textwhich we’ll bring in as a new layer. I’d like to place it here at the bottom. But you see, there is a straggler oryxthat would interfere with the graphic. So, let’s remove the oryx right now. We were able to bring our repair toolfrom our award-winning Mac version to the iPadand it works fantastic. By simply brushing over the oryx, our app will take careof removing it but still maintain the background. That is two times faster on the new iPad compared to iPad Air. [ Applause ]Notice how the texture in the sand is intact evenuntil the oryx is gone. Let’s place the graphic back at the bottom and size it to fit. Now, let’s blend the graphic with the backgroundto complement the color of the sand. Next, I’d like to apply a filter to enhance the colorand darken the edges a bit. We can adjust the depth and strength of the effect. Notice the very fast response time. So, that’s a quick peek of Pixelmatorfor iPad coming later this month in the App Store. The power of the new iPad is perfect for the new Pixelmator. We’ve seen improvement of up to three timesin many aspects of the app. It’s a fantastic pairingthat would make image editing a breeze. Thank you. [ Applause ]>> Next, there’s an exciting new video editing applicationthat has everyone abuzz, it’s called Replay. It’s from a bunch of brilliant scientists from France. And to tell you all about it, I like to bring up Jeff Boudierto show you what they’ve been up to. [ Applause ]Welcome. Thank you. With Replay, you can use your iPadto create amazingly rich videoswithout knowing anything about editing. With me is my co-founder Francois. Let’s take a look. We all take so many photos, so many videos. Often we don’t have time to do anything with them. Like these videos from a trip in Utah. To make a nice movie edit out of all these,it would take me hours of work, right?Well, let’s select all these clipsand see how long it takes Replay to make a movie. [Background Music] My movie is already playing. What just happened?In one tap– Thank you. In one tap, Replay analyzed all my videos added beautiful motiongraphics and synchronized everythingto the beat of the music. OK, let’s do it again, but try a different style. I love this style. Replay runs computer vision algorithmsto find the best accent colorfor each video then desaturates the rest. And with Metal, this code runs 20 times fasterthan using the CPU. [ Applause ]But this style is too romantic. Let’s try something more vibrant. [Background Music] Nice. I love how Replay picks the background colorsto match the videos. Now, I want to add a text slide. Let me show you how easy it is. How about Utah road trip?Just as easy, I can add captions,trim videos, or reorder things. The result again is instant. We created a custom-rendering engine on top of OpenGL. And with each new processor, Replay gets faster. With A8X, we get four times faster rendering than on A7. Now, I’m really excited to show you something never done beforeon mobile. It’s very Hollywood. See how the light interacts with the text. I can even set the lighting color while my movie is playing. This effect is called volumetric lighting and Replay renders itin real time on the iPad. This is truly desktop class performance. We believe video creation should be easy and instant. With this new iPad and Metal, our vision becomes reality. This new style will be available end of Octoberand you can get Replay for free on the App Store today. We can’t wait to see what you’ll create. Thank you, thank you. [ Cheering & Applause ]So those are just two examples from theover 675,000 apps from the App Storethat take unique advantage of iPad. You can see now, the apps are doing things on iPadon a thin mobile devicethat previously would have taken high-end desktop computersto do. And you can do this anywhere you go. So this is the new iPad Air 2 packed with an incredible rangeof new technologies and innovation. Next generation Retina display with no air gapsand anti-reflective coating. Our second-generation 64-bit chip for iPad,the A8X with 3 billion transistors. The new 8 megapixel iSight cameraand then all those incredible features. The new FaceTime HD camera, ultrafast 802. 11AC wirelessand 20 bands of LTE for fast performance around the world. And of course the most requested feature, Touch ID. All of this packed into the thinnest iPad we have ever made. You just have to hold it outside when you get a chance to,to see just how incredible this is. It will blow you away. So if you want to get one and if you’re like me,you’re just dying to, what will it cost?Well first, it comes in silver, space gray and the new goldthat you’ve seen here, and it starts at $499. That’s the price of the previous iPad Air for Wi-Fi with 16 gigs. $599 for 64 gigs, that’s $100 less than before. And $699 for 128 gigs, again $100 less expensive than before. So, much more power, great new features,thinner device and more affordable. There are also cellular versions for $130 more,and that is the new iPad Air 2. At the same time, we have an update todayfor iPad mini as well. We call it iPad mini 3. It’s the third generation of iPad mini. It comes in silver, space gray and gold,and of course it includes the new Touch ID feature as well. It will start at $399, $499 and $599, new memory configurations,and have cellular versions as well. And both iPad Air 2, iPad mini 3 are madein the most environmentally friendly way possibleand we’re really proud of thisand I always want to part with that. [ Applause ]So those are the two new lines of iPad,iPad Air 2, iPad mini 3. We’re going to keep iPad mini 2 and iPad Air on the lineand reduce them by $100 so everyone has somethingat each price point, so those are more affordable as well. And the original iPad mini, we’re going to continueto sell it now at our all new priceof just $249, previously was $299. So that now means our lineup has the lowest price point everfor iPad, $249, it means iPad 2–mini 2 and iPad Air had been reduced by $100. We have an all new iPad mini 3 and all–a new iPad Air 2 at the high end with more featuresand capabilities in the thinnest iPad we’ve ever offered. So, a lot of changes up and down the entire line. To get iPad mini 3 and iPad Air 2, you can startto order them tomorrow. We’ll take preorders tomorrow, October 17th, and they’ll beginto ship by the end of next week. So that’s iPad. [ Applause ]I think this graphic says a lot in a very simple imageabout the things we create, how beautiful they are,how incredibly advanced they are at each category,and how each one is pushing on the nextto be even better and to do even more. As iPad continues to evolve and challenge what a computer can bethat you can hold all day long, it then challenges usat the higher end to move those forward as well. And nobody is better at that than Apple. Let’s talk a little bit about what’s happening with the Mac. We have the best lineup we’ve ever had. It’s the 30th birthday of the Mac this year,and these are the best ever. And their results are fantastic. If you look at Mac compared to the rest of the industry,this is based on the last quarter,the Mac grew 18 percent year over year while the restof the industry didn’t do as well. And the reason is very simple. Our customers love their Macs. This summer we updated MacBook Air. It got faster, better battery life, better value. People bought them like crazyand the reviews were off the charts. I think this one said it best. From the Wall Street Journal,”The MacBook Air is the best laptop ever made. “Who are we to argue?[ Laughter ][ Cheering & Applause ]For customers who want a higher level of performance,they love the MacBook Pro. It delivers all day battery life, incredible performanceand best of all, that beautiful Retina display. It’s been really fun to watch the migrationof the Retina display. It started with iPhone, we moved into iPod Touch and movedinto iPad and then into the Mac with the MacBook Pro. Well today, we’re really happy for youto see the continuing marchof this incredible Retina technologyand the next step we’re going to take with it. [ Music ][ Applause & Cheering ]So yes. [ Applause ]We are so excited to tell youabout the all new iMac with Retina display. There has never been a desktop display like this. It is simply stunning. We have never seen a level of detail in a desktop displayas you’ll see with this iMac. It is truly remarkable. It’s a 27-inch display that has 5120 pixels by 2880 pixels. If you’re really fast with math you knowthat is an insane 14. 7 mega– million pixels on one display. It is the world’s highest resolution display. This is an incredible feat of engineering. We call it the Retina 5K display. So to put it in context, we all look at HD TVs all day. They’re 1920 x 1080, that’s overlay those pixels on topof the retina 5K display. There are seven times more pixelson the Retina 5K display than on your HD TV. [ Cheering & Applause ]Now let’s compare that to the new standard 4K digital cinema. And there it is, 4096 x 2160,the Retina display still has 67 percent more pixels than that. It is stunning. What’s more remarkable is the work the engineering teamto fit those 14. 7 million pixels into our beautiful iMac design. It’s just five millimeters thin. It’s an incredible feat of engineering. It took a lot of invention. It starts with the chip that controls the display. It’s called a timing controller or TCON. One didn’t exist to drive this display quickly and efficientlyso our team had to invent one. It started with having to create a new material, oxide TFT,to be able to charge those pixels quickly and evenlyacross the whole display. And then taking technology from our Retina iPad display,organic passivation, to reduce cross-talkbecause those pixels are getting so close together,to keep the image really sharp and beautiful. It took building a new backlight technology,an LED backlight that’s just as bright as previouslybut consumes less power and is thinner. And all put together, this new displaywith four times the number of pixelsof the previous version uses almost a third less energy. That’s incredible work. And to make it even more beautiful,we use our Apple photo alignment technologyto give higher contrast ratios on access,and a new compensation film so it looks better off access too. It is a remarkable feat of engineeringand the most beautiful desktop display for everything you do. When you read text, it looks incredible, crisp and sharp,with magazine quality. If you work with photos, you have never workedat a desktop display with this level of detail in your photos. When you love to edit video like here in Final Cut Pro,you’ve never had the ability to do 4K video editing,pixel for pixel with room leftover for your bins and timelines. And if you’re Craig and you’ve worked so hardon a beautiful version of OS X, there has never been a displayto show off that great new user interface as beautifulas this new Retina 5K display. We have a brief video to tell you a little bit more about it. >> [Background Music] The Mac enables peopleto do amazing things. And for many people, it’s the most important creative toolthat they use. And what we really love doing is making it better. On an iMac, the experience begins with the display. And now we’re really proud to introduce the first iMacwith the Retina 5K display. With 14. 7 million pixels, this goes way beyond HD. It gives the ultimate all-in-one computer the ultimate display. And it made you see incredible detail on a scalethat just hasn’t been done before on a desktop. We started by moving to an oxide TFTor thin film transistor panel. Oxide TFT is needed to get these many millions of pixelsto charge quicker and then stay charged longer. We manufactured an oxide TFT based display more preciselythat had ever been done before. One of the great results is the vivid brightness you seeacross the whole screen. Communicating to all of those pixels requires a lotof brainpower. In a display, it’s called the timing controller or TCON. The TCON tells every pixel what to do and when to do it. For this new Retina display, a TCON didn’t existthat could do the job. We had to create it, this single incredibly advanced chip that’sresponsible for directing millions of pixels. Whether you’re looking at photos or textor even editing 4K video, the picture is stunning. We’ve also improved the contrast ratio so you get brighter whitesand darker blacks from any viewing angle. >> When I’m working on imagery, I need to see the details in itto make accurate judgments of color and exposure to be ableto make it look on screen exactly how it appeared to mewhen I saw it in reality. >> For this display to be possible,millions of pixels have to be drivenwith more energy efficiency. We use power saving LEDs and organic passivationwhich enables a clear accurate signal to be sent to each pixel. This dramatically increases the display’s performanceand image quality while actually decreasing its power usesby 30 percent. >> Every photograph I shoot, there is so much workto be done before it’s really finished. To get there, the tools I use need to be powerful and precise. And now that I’ve had a chance to experience the sharpnessand the resolution and the incredible tonal rangein the new iMac, I just can’t imagine a better toolfor the work I do. >> With its stunning Retina 5K display and allof this new capability, the new 27-inch iMac isby far the most amazing iMac we’ve ever built. [ Applause & Cheering ]So not only have we built an iMacwith the most incredible display we’ve ever made but throughout the product line we’ve updated everythingto make it the best iMac ever. So if you look inside it,it has the fastest chip we’ve ever put in an iMac. It starts with a 3 and a half gigahertz Intel quad-core i5but upgradable to 4 gigahertz i7, the fastest ever in an iMac. The graphics, a Radeon R9 M290X, upgradable to a 295X. So how fast is that?The previous fastest chip in an iMAac was 2. 4 teraflopsto compute power, not bad. This is 3. 5 teraflops, 45 percent fasterthan the previous version. I/O is faster as well, it is now Thunderbolt 2,20 megabit per second bin with [inaudible]. It’s faster storage, standard terabyte Fusion Drive. And it’s all built together like all of our productsin the most environmentally friendly manner includingsupporting the latest Energy Star 6. 1. So it’s a very efficient desktop product. So what does this amazing state of the art new iMac cost?Well, let’s make a comparison. If you’ve ever tried to buy a high end display,for example a new 4K IPS TFT display,not quite as many pixels as the iMac,not quite as beautiful display but still not bad. You know that these range in the price of $3000 or more. So that’s why we’re really excited to tell you the new iMacwith Retina 5K display is going to cost $2499. [ Cheering & Applause ]And for that, we throw in an entire computer. It’s got a 3 and a half gigahertz i5 standard,Radeon R9 chip, 8 gigs of memory and a terabyte Fusion Drive. And it starts to ship today. So that is the new iMac with Retina display. It joins the rest of the iMac line. A 21 and a half inch iMac starting at $1099,27-inch iMac starting at $1799, and the new iMacwith Retina 5K display at $2499. I can’t wait for you all to see itand experience the incredible images that it produces. There has never been a desktop computer like it. I think it’s the perfect fittingto the 30th birthday of Macintosh. We have one other small update today and that’s the computerthat a lot of our customers loveand we’re getting the first back. It’s called Mac mini. Perhaps you’ve added one to your own home network,but we have a whole new version today. It’s updated with faster processors,fourth-generation Intel Core processors,faster graphics Intel Iris and HD Graphics 5000,faster storage, PCIe-based flash storage, faster Wi-Fi, 802. 11acand now has two Thunderbolt 2 ports, so it’s packedwith all the I/O you need in a very small design. And most important to us, it is not only compactedas the world’s most energy efficient desktop computerwhich is really great. A lot of customers choose this for their first Mac. Previously, Mac mini started at $599. The new faster more capable Mac mini starts at just $499. [ Applause ]And it’s shipping today as well. So that’s our update for the Mac. Let me turn it back to Tim. [ Applause ] What do you think?It’s a very cool stuff. [ Applause ]This is the strongest lineup of productsthat Apple has ever had. And we believe that each oneof these play a very important role. People need different types of technologyfor the way they live their lives,we all do different things. In fact, many of us and many of our customers use more than oneof our products every day. Sometimes you want to sit at your desk in frontof a huge beautiful immersive screen packedwith powerful technology. And we’ve made that much better todaywith the Retina 5K screen for iMac. Sometimes you want to take that powerful technologywith you wherever you go. And we’ve made our notebooks even better this yearwith MacBook Air and MacBook Pro. Sometimes you want to be close to your content, touching it,and we’ve made that experience even better todaywith the iPad Air 2, more powerful and incredibly fast. Sometimes you want to hold that powerful technology in the palmof your hand and there’s no better thing for your handthan the iPhone 6 and iPhone 6 Plus. And soon, you can wearthat powerful technology right on your wrist. Yup. This incredible lineup of products and the ecosystemthat supports them is something only Apple can create. They’re designed to be incredible products individuallybut they’re also designed to work together seamlessly. And because we create both the hardware and the software,we can deliver something that no one else can do. A simple, intuitive, and yes,a magical experience for our customers. This is our vision of personal technology,and we are just getting started. I’d like to thank all the teams at Apple that have workedso hard for not only this year–much of what you see here is multi years of work–to bring these products out on top of all the other thingsthat you’ve seen during the day. They are doing the best work of their lives. And I and the executive team really appreciate it. [ Applause ]I want to invite all of you to come across the hallto get your eyes on this Retina 5K display. You’re not going to believe it, it’s killer. And to hold the iPad Air and see how thin and powerful it is. We also have a station set up next door so that you can tryout Apple Pay if you haven’t tried it yetand you can be among the first to buy something on it. [ Laughter ]Thanks very much for joining us. [ Applause & Cheering ][ Silence ]