Steve Jobs on the iPad: Introducing a new category

Thank you, thanks for coming today, thank you, thank you, thank you, thank you, thank you. Good morning, and thank you all for coming today. We want to kick off 2010 by introducing a truly magical and revolutionary product today. But before we get to that, I've just got a few updates. The first is an update about iPods. A few weeks ago, we sold our 250 millionth iPod. iPods have changed the way we discover and purchase and enjoy music. And with 250 million of them, I just didn't want to let this moment pass without just recognizing it. It's pretty amazing. And so that's our first update. The second update is about our retail stores. You know, we now have 284 retail stores. It's amazing.

And last quarter, the holiday quarter, we had over 50 million visitors to our stores. 50 million people in one quarter. One of our newest stores is our fourth store in New York City. It's on Broadway a few blocks up from Lincoln Center, and it's really beautiful. This is a shot of it before it opened. It'll never look this good again. And here it is on opening day, a shot across the street. It is so wonderful to be putting these stores with their phenomenal buying experience right in the neighborhoods of our customers. It feels great. And so this is one of our latest and greatest retail stores. Next update, store of another kind, the App Store, an incredible phenomenon, delivering applications to iPhone users and iPod Touch users around the world. We have over 140,000 applications now on the App Store. And a few weeks ago, we announced a user downloaded the 3 billionth application from the App Store. This is in around 18 months since inception, 3 billion applications in the App Store. And lastly, we started Apple in 1976. 34 years later, we just ended our

holiday quarter, our first fiscal quarter of 2010 with 15.6 billion dollars of revenue. I don't even believe that. Now, what that means is that Apple is an over 50 billion dollar company. Now, I like to forget that because that's not how we think about Apple, but it is pretty amazing. Now, where does Apple get this revenue? It gets it from three product lines, iPods, iPhones, and of course, Macs. Now, what's really interesting about this is that iPods are mobile devices. iPhones are all mobile devices. And most of the Macs that we ship now are laptops. They're mobile devices too. Apple is a mobile devices company.

That's what we do. And we asked ourselves, with 15.6 billion dollars of revenues last quarter, how does Apple stack up against all the other companies that sell mobile devices? And it turns out that by revenue, Apple is the largest mobile devices company in the world now. It's amazing. Apple is larger than Sony's mobile devices business, selling great camcorders and digital cameras and stuff that they make. It's bigger than Samsung's mobile devices business with all their handsets that they sell. And by revenue, it's even bigger than Nokia's mobile devices business with all of the handsets that they sell. Apple is the number one mobile devices company in the world. So those are the updates that we have today. So now let's get to the main event. I chuckled when I saw this. But before we get to that, I want to go back to 1991 when Apple announced and shipped its first PowerBooks.

This was the first modern laptop computer. Apple actually invented the modern laptop computer with these PowerBooks. It was the first laptop that had a TFT screen, the first modern LCD screens. It was the first laptop that pushed the keyboard up creating palm rests and had an integrated pointing device, in this case, a trackball. Well, of course, almost 20 years later, we've got incredible laptops now. Just a few years ago, in 2007, Apple reinvented the phone with the iPhone. And a few years later, we've got the great iPhone 3GS, the best phone in the world. And so all of us use laptops and smartphones now. Everybody uses a laptop and or a smartphone. And the question has arisen lately, is there room for a third category of device in the middle, something that's between a laptop and a smartphone? And of course, we've pondered this question for years as well. The bar is pretty high. In order to really create a new category of devices, those devices are going to have to be far better at doing some key tasks. They're going to have to be far better at doing some really important things, better than the laptop, better than the smartphone.

What kind of tasks? Well, things like browsing the web. That's a pretty tall order. Something that's better at browsing the web than a laptop? Okay. Doing e-mail. Enjoying and sharing photographs. Video. Watching videos. Enjoying your music collection. Playing games. Reading e-books. If there's going to be a third category of device, it's going to have to be better at these kinds of tasks than a laptop or a smartphone. Otherwise, it has no reason for being. Now, some people have thought that that's a netbook. The problem is netbooks aren't better at anything.

They're slow, they have low quality displays, and they run clunky old PC software. So they're not better than a laptop at anything. They're just cheaper. They're just cheap laptops. And we don't think that they're a third category device. But we think we've got something that is. And we'd like to show it to you today for the first time. And we call it the iPad. So let me show it to you now. This is what it looks like. I happen to have one right here.

That's what it looks like. Very thin. Just like this. So let's give you a little overview. It's very thin. And you can change the background screen, the home screen, to personalize it any way you want. People put their own photos on it, I'm sure, but we ship a few and you can make it anything you want. And what this device does is extraordinary. You can browse the web with it. It is the best browsing experience you've ever had. It's phenomenal to see a whole webpage right in front of you and you can manipulate with your fingers. It's unbelievably great.

way better than a laptop, way better than a smartphone. And you can turn iPad any way you want. Up, down, sideways, it automatically adjusts however you want to use it. And again, to see the whole web page is phenomenal. Right there, holding the internet in your hands. It's an incredible experience. Phenomenal for mail. Want to focus in on a message? You can do that. See your inbox. Again, just turn iPad sideways. Get a different view on your mail. Push the compose window. A keyboard pops up that's almost life size. It's a dream to type on.

For photos, your albums are shown as stacks of photos. Your albums are events. You can unfold them. Look at all your photos. Flick through them. Got some great slide shows built in. It's a wonderful way to share your photos with friends and family. Built in a calendar, you can see your month's activities or your day's activities and everything in between. Built in a great address book for your contacts. Have a great Maps application, which works with Google's back end. Show you Maps, satellite views, zoom in on things. iPad is an awesome way to enjoy your music collection. And, of course, we have the iTunes store built right into the iPad so you can discover music.

You can purchase it. Movies, TV shows, podcasts, iTunes University, everything built right into the iPad. YouTube, you can watch YouTube on it, including YouTube in high def now. They've got a lot of high def video. And, of course, it's awesome to watch TV shows and movies on. So that gives you a little overview of what the iPad can do. But it's nothing like seeing it. So I'd love to show it to you now. Let's take a look at it. Again, using this thing is remarkable. It's so much more intimate than a laptop.

And it's so much more capable than a smartphone with this gorgeous large display. So this is the lock screen. I unlock it. The icons fly in. Let's go right to the web. So here we are at apple.com. And I'm just going to go to Safari. I just touch the bookmarks icon. And touch the New York Times, let's say. And here we are right at the New York Times. You can see how fast it is. And I can just scroll around here and look at the whole front page of the New York Times. Anywhere I want to go, anything I want to make bigger, I can make bigger. If I want to go into a story, I can just touch the story.

I can just touch it. And I go into that story. Back to the front page. And so I can browse around the New York Times so easily. It's really great. I go down here. And I can see what's happening here. See what's happening today? And again, just so easy to go into a story like this. See the photographs, read the story. It's that simple. Let me go to another website here.

Let's go to Time Magazine. Let's go to another website. Just flick through the website, see what's happening. Go to another one here. Fandango. Want to buy some tickets to a movie? Grab the tablet that's in the kitchen. Go to Fandango on your iPad and buy your tickets. It's that simple. It's a simple website in the palm of your hands. Let me go to another one. It's kind of nice, National Geographic. And again, we can look at this in landscape mode if we'd like.

Go back to portrait. It's very, very simple. And again, I can zip around this website just touching on pictures of animals, what I want to see. It's just gorgeous, right in the palm of your hand. So that is browsing the web. Let's go to email. So here I've got a message. As you can see, I can have photographs in the message. And I can have my inbox right here.

I can turn it sideways like this. And I can also browse messages just by having my inbox here on the left. Take a look and see what kind of messages I've got. Here's another one. This is the Paris Metro. Let me go focus on that message here. And I can just make this as big as I want and check out the Metro in Paris. Napa Valley. Here's a PDF. You can just tap on the PDF. It displays it, shows me all the wineries. And I can plan out my trip to Napa Valley. So that's how simple mail is.

Now, if I want to reply to a message or go ahead and send a message, I just hit the Compose button here. And up pops this gorgeous keyboard. And let's say Scott Forstall and Phil Schiller. And there we go. It's that simple to do email on the iPad. OK. Next, let's go into Photos. This is what Photos looks like. I can just look at everything as a list of photos, again in portrait or landscape, and just fly through.

I can look at any photo like this by tapping on it. And again, turn it from portrait to landscape and just flick through my photos. It's that simple. I also can look at my photos as albums, and it grabs the metadata from any PC or Mac. And if I'm on a Mac, I can also get events, faces, and places for my photo. Now, once I have these, I can look inside of any album, as an example, and say, is this the one I'm looking for? And I can just pinch it open. No, that's not it. Is this the one? No, that's not it. This must be the one. Yep, that's it. And again, just flick through these photos.

I have a little bar at the bottom if I want to scrub through them. Or I can just flick left or right through the photos. It's really wonderful. I have, again, events, faces. Now, let's see all the photos with Liz in them here. And places. Shows me a map of all the places I've taken photographs. So I can just hold down one of the pins, push on one of the pins, and see all the photos I took there, see all the photos I took in New York. Let's go to Paris. Here's all the photos I took in Paris.

Just tap on it to open them. And in addition to just looking at them as we have, we have built-in slideshows. And so I can bring up a slideshow here, and select my music, and pick one of the different transitions. I'm going to pick one called origami, and just push Start Slideshow. You get the idea.

Isn't that cool? So that's Photos. Let's take a look at our music collection. Built-in iPod and here's all my albums. And I can just scroll through my albums, find something I like. When I see something I like, I just tap on it and say, you know, let's play a song. See the album artwork? You know? It's just all works. Bob Dylan again.

So again, a great way to enjoy your music on your iPad, your whole music collection. Let me show you a few other things. The iTunes store. Again, built right in. I can sample music, discover songs, buy them. And of course, in addition to music, I've got movies, TV shows, podcasts, audio books, and iTunes U. All right here, all built right into the iPad.

Got a great calendar. Here, look at that month view. And I can just drag my finger over events and get a little more detail on them. I can look at things as a week view or a day view or a list view. You know? Very nice calendar. And great contacts application, great address book. Let's go through it like this if we want. Here's Scott. That's an example. So great contacts and calendars. Now, we've also got a great maps app, as I was showing you. And again, here's the Eiffel Tower. We just tap the corner. Let's go to satellite view. And again, we can just pinch this as big as we'd like. There we go. There's the Eiffel Tower. So great maps app. Let's go to our current location here. So let's, here's our current location in San Francisco. And I'm going to type in sushi. And we should find all the sushi places nearby. And again, I can just tap on a pen to find one. And there we go. Here's Sushi Boat. So I want to go find that one after this presentation, maybe get some lunch. And I can just hit on Google Street View right here. And there's Sushi Boat right there. So I'll probably have a pretty easy time finding Sushi Boat as I go

get some sushi. All right. So that's maps. Now, let me show you video. Video is wonderful. Let's go to YouTube. And I'm going to pick a clip called Wet and Woofy that I know is in high def on YouTube. And here it is. And again, I can even go full screen here, go into landscape. Look at that. That's off of YouTube. Isn't that incredible? All right. So that's YouTube. And again, here's related clips and more from that person. And again, whether it's in portrait or landscape, it just all works. And of course, videos. Let's go into landscape for this. And we've got movies, TV shows, music videos. You know, so I can go into a TV show like Modern Family as an example, pick an episode and watch it.

Let me go that. Let's do that with a movie. Let's pick Star Trek. And let's go to chapters. Oh, what's a good one? You know, here we go. And again, I can scrub through if I want to. Yeah. Isn't that nice? Let's go back, pick another movie that I love which is Up.

It's an awesome movie. And one of my favorite sequences ever in any movie is this sequencing up right here. And you can tap to fill the screen if you'd like. Isn't that wonderful? So that is video on the iPad. And that gives you a little bit of an overview as to what the iPad can do. I have to say though, watching it is nothing like getting one in your hands and feeling all of that just right in your hands and right underneath your fingertips. So, let's go back to the hardware a little bit. The iPad is really thin. It's a half an inch thin. And it weighs just one and a half pounds. That is thinner and lighter than any netbook. And it's got a gorgeous 9.7 inch IPS display.

Super high quality display using IPS technology so you get great angle of view as well. Very high quality display. And as you know, Apple builds the best capacitive multi-touch sensors in the world. Married to our great display, it's terrific. Super responsive, super precise. iPad is powered by our own custom silicon. We have an incredible group that does custom silicon at Apple. We have a chip called A4 which is our most advanced chip we've ever done that powers the iPad. It's got the processor, the graphics, the IO, the memory controller, everything in this one chip. And it screams. And you can have 16, 32 or 64 gigabytes of flash solid state storage inside the iPad. It's got the latest in wireless networking.

Wi-Fi 802.11n and the latest Bluetooth 2.1. And the usual suspects, accelerometer, compass, speaker, microphone. It's got a 30-pin connector so it plugs into the whole ecosystem of iPod accessories. And it's got battery. What is the battery life of this remarkable device? We've been able to achieve 10 hours of battery life. It's one and a half pounds of life. 10 hours of battery life, which means I can take a flight from San Francisco to Tokyo and watch video the whole way on one charge. It's pretty nice. And in addition to 10 hours of battery life, it has over a month of standby life. So we could just set the iPad down, it would go to sleep automatically. We'd come back in a month, it would still have charge.

It's remarkable. Environmentally, the iPad's a great citizen. It's arsenic free, bromide flame retardant free, mercury free, PVC free, and its aluminum and glass enclosure is highly recyclable. So that's a little bit of an overview of the iPod's hardware. Now, let's go back to software. We've seen some great built-in applications, some all new built-in applications. But now let's talk about third-party applications. Let's talk about the App Store. And to help me do that, I'd like to invite up Scott Forstall, our Senior Vice President of iPhone Software. Scott?

Thank you. Good morning. The App Store has been a huge success. We launched it just about a year and a half ago, and already our customers have downloaded over 3 billion apps, choosing from among the more than 140,000 apps available on the store. Well, we built the iPad to run virtually every one of these apps, unmodified, right out of the box. Now, we can do that in two ways. We can run these apps with pixel-for-pixel accuracy black boxed in the center of the screen. We can also automatically pixel double and run those apps full screen.

This is really cool. Let me go ahead and show you how it works. So here I have an iPad. We downloaded a number of apps from the App Store, all unmodified. And let me launch just a couple for you. We'll start with Facebook. Here it is. This is the Facebook that you know and love. It just works. I can tap on a photo. I can flick to a new photo. And now if you look in the bottom right corner of the screen, there's a button that says 2X. When I tap on it, we automatically scale the application up to full screen. I go back to my news feed. I can switch, say, to my profile, see my wall.

It all just works. Now, Facebook uses a lot of text, photos, and some video. But what about an application that really drives the graphics hardware? What about a game? Let me go ahead and launch a game here. This comes from ESPN, and it's called X Games Snowcross. Now, you can see at the beginning of this game, it plays a video. The video works great on the iPad. Let's skip the rest of the video here and get right to the game.

So I'll race an arcade. I'm going to choose the default. I will race Breckenridge with Levi, and let's go. So here you can see this is an OpenGL ES game, so it really drives the graphics hardware. And again, this is an unmodified game right off the App Store. I'm steering it with the accelerometer, and even the game I can take full screen. So you can see, hey, some tricks. You can see that even with an OpenGL ES game, very graphically intense, you get tremendous frames.

And I have to say, having played some games on here, they're smooth and they're incredibly fun. So there you go. Right out of the App Store, unmodified. The great thing is all of those iPhone apps that you know and love, that you've already been running, will run on your iPad. In fact, when you buy your new iPad, just take it home, hook it up to iTunes, download all those apps that you already have, throw it onto your iPad, and you're good to go. Now, if the developer spends some time modifying their application, they can take full advantage of this large touchscreen display.

And you can see, that's what we did for all of our applications. We rewrote the user interface of every one of our apps to take full advantage of this large touchscreen display that comes with the iPad, like photos and music, calendar, and YouTube. They all look great. And we expect developers are going to want to do the same thing. So to that end, we've enhanced the iPhone SDK to now support development for the iPad as well. And we're releasing this SDK today. So developers can go to apple.com today and download the SDK and get going.

And this SDK even includes an iPad simulator, so you can run your iPad apps right on your Mac as you develop them. You know, we think it's going to be a whole other gold rush for developers as they build apps for the iPad. And of course, every iPad comes with the App Store loaded up on it. So you have a great distribution channel to get your apps out to all of our customers. Now, we're going to take and highlight and feature all of the apps that are built specifically for the iPad in the store. You'll still be able to get to all of the iPhone apps, but if you create an application specifically for the iPad, we're going to put it front and center.

Now, we're really excited about the possibilities for developers on the iPad. And so just about two weeks ago, we invited a few developers to Apple to give them a sneak peek at the iPad and see what they could create in just a couple short weeks. And I'd like to invite a few of them on stage to show you what they've created, starting with Gameloft. Gameloft is one of the largest developers of games for the iPhone and iPod Touch. They have over 60 games on the App Store that have been downloaded more than 55 million times. To show you what they've been able to do in just a couple weeks on the iPad, I'd like to invite up Mark Hickey.

Mark. Thank you, Scott. Thank you. Good morning. Today, my colleague Bogdan and I are here to show you some amazing new gameplay mechanics that we've worked into our award-winning first-person shooter called Nova. So what's different about Nova on the iPad versus Nova on the iPhone or the iPod Touch? Well, when you hold the device in your hands, you'll see the display is just huge, which makes the game immensely fun to play. But the size also gives you a lot more flexibility when it comes to controlling the game. For example, I can slide the D-pad up and down the side of the screen, or if I want to quickly access some firepower, I can drag the rocket launcher down next to the fire button. So with the controls set up how we like, take a look at the bottom left corner of the screen.

We've added a mini-map, and you can stretch the mini-map out across the screen just by dragging the corner with your finger. When we do that, you'll notice that there's this red dot on the screen. This tells us that there's an enemy nearby. Well, another cool feature that we've added is that now you can slide two fingers across the screen to throw grenades, like so. Nice shot. So the iPad gives us the ability to interact with the game world in ways that weren't really possible before. In order to open these airlocks, you physically apply three fingers to the control disc and turn your hand in order for the passage to open. Now, we all know that first-person shooters are about combat, so we designed a system that we're calling MTA, Multiple Target Acquisition.

With the rocket launcher selected, you can drag a targeting box around a group of enemies and fire on all of them simultaneously. Check it out. Definitely useful when you're outgunned and outnumbered. Now, this is what we were able to accomplish in just a few short days working with this exciting new hardware. The games look incredible at this higher resolution, and the form factor opens up countless new doors for us in terms of game design. We'll show you what else we have in store for you in the iPad version of Nova ships later this year. Thank you very much. Thanks, Mike. Great stuff.

Next up, the New York Times. The New York Times has been publishing a newspaper for more than 150 years. It's commonly referred to as the paper of record, with a huge readership both nationally and internationally. It also produces one of the best web news sites in the world and one of my favorites. To tell you about their plans for the iPad, I'd like to invite up Martin Nissenholz. Martin. Thanks, Scott. It's great to be here today. I want to introduce my colleague Jennifer Brook, the interaction designer on this application, and Adam Kaplan, the engineer. So Steve showed you the website, the Times website, and it's just incredibly beautiful.

Unbelievable imagery, unbeatable readability. So why did we come out here three weeks ago to develop this new application for the iPad? Well, we developed an application for the iPhone that has been downloaded over 3 million times, and we optimized for that device. And now we want to do the same thing for the iPad, creating something that joins the best of print with the best of digital all rolled up into one. something that you can really immerse yourself in, lean back, and enjoy. So let's take a look. I'm so excited to share with you what we've been working on in the last couple weeks. We think that we've captured the essence of reading the newspaper, the finite snapshot in time, the exquisite typography, images, and content, and a superior reading experience, all in a native application.

Let's take a look. From the front page, you can easily flip through sections, tap into articles, or we can skip ahead to my favorite section to see today's latest stories. It captures the essence of reading the newspaper, but as you're about to see, it's so much more. I can save articles to my reading list, and it will sync to my iPhone so I can read them whenever I want. Or we can jump ahead to 36 hours to see the latest story and travel. The reading experience is great. You can tap to change the number of columns, resize text with a pinch, or we can flip through dozens of amazing slideshows. Let's jump to sports to see the latest coverage in the Olympics.

It's an incredibly physical sport. In my opinion, skier-cross athletes are some of the best skiers on the planet. Yeah, it's great to see skier-cross making it into the Olympics in 2010. When you're done reading, simply turn on updates to get breaking news and latest stories in all sections. It's everything you love about the paper, everything you love about the web, and everything you expect from The Times. Thanks, Jennifer. So this is just the beginning. Thanks. We've been at this for three weeks, and I'm incredibly psyched to pioneer the next version of digital journalism. Thanks so much. Thank you.

Thank you. I already find myself reading The New York Times with my iPad in the morning through Safari. I can't wait to get this app. Next is Brushes. Brushes is an extremely popular iPhone painting app. It's used by artists all over the world to create amazing works of art just using their fingertips. Equally amazing is the fact that Brushes is a one-person shop. To show you what he's been able to accomplish in just a couple weeks, I'd like to bring up that one person, Steve Sprang. Steve. Good morning.

Brushes is a simple yet powerful painting application designed for the iPhone. Artists of all skill levels have used it to produce countless paintings with just their fingertips. These paintings have appeared on the web, in galleries, and even in print. New York City street scenes by George Columbo have been used on the cover of The New Yorker on three occasions. Today I'd like to show you how Brushes looks on the iPad. We'll start here in the gallery where I've included a handful of original iPhone paintings. You can swipe between these, and you'll be able to share them in a variety of ways. When you want to edit a painting, you simply tap it, and it expands to fill the screen. Brushes takes full advantage of the new interface elements available in iPhone OS 3.2, allowing you to access your controls without significantly obscuring your artwork.

The color panel has been redesigned to include an area for swatches where you can store your favorite colors. These can be rearranged, and you can double tap one to quickly select it and dismiss the panel. Of course, all of your favorite brushes from the iPhone are available here, too. You can adjust the size, the spacing, and the opacity. By pinching, you can zoom in up to 32 times. And by tapping and holding, you can activate the eyedropper tool, which allows you to pick up existing colors off the painting. Painting is as simple as dragging your finger across the screen. In this example, I'm removing the umbrella by painting over it with the background color. If you mess up, you can always undo.

When you're done painting, just tap the gallery button to return to the gallery. On the iPad, brushes is going to support in-app playback of your paintings. Just tap the play button to see a replay of your actions. I'm really excited about the possibilities for brushes on this device. Artists have already done amazing things with the iPhone, and I think with this larger screen, they're going to have a true portable paint studio. I can't wait to see what they can do with it, and I plan to have brushes available at the product launch. Thank you. Thank you. It's amazing. I mean, imagine an artist with a canvas this large that they can carry anywhere they go, including art students, in a way is only a pound and a half. No paints, no easel. It's going to be incredible.

Next up, Electronic Arts. Electronic Arts has been a major supporter of the iPhone platform ever since we launched the App Store, with over 40 titles already. EA is the number one worldwide publisher of mobile games. To show you what they're doing for the iPad, I'd like to invite up Travis Boatman. Travis. Thanks, Scott. Hey, everybody. So when Apple invited us to come on site and work with them on the iPad, we couldn't have been more excited. But as gamers, the first thing we wanted to check out was this device's performance. And what better game than Need for Speed?

Now, as you can see here, we have a gorgeous 3D version of the BMW M3 GT displayed on this huge display. What you're going to see next took us a very short period of time to get up and running on the device. And the reason why that's important is that means we're going to be able to bring all of our other great EA games from the App Store to this device in no time. Now, we've made games for consoles and we've made games for the iPhone. But building for the iPad is something completely different. It's a little bit like holding a high-definition television screen just inches from your face. The field of view and the sensation of speed that you get is just incredible. It's not unlike if I turned around and was driving this monitor with my hands.

Except I couldn't clearly lift that up. But this thing's so light that John's able to hold it in his hands and use the accelerometer to steer our car like a steering wheel. It's really cool. It's also fully touch-enabled. And we had a lot of fun experimenting with different types of interfaces. For example, if John wants to see inside the car, there's no buttons required. He just taps right on the car. We had so much screen real estate, we started adding fun things like the shifter. Again, really intuitive. The user just swipes up and down with his finger to change gears. We also have so much screen real estate, we added mirrors. Simply tap on the mirror to look behind you. Yeah, well, you've got to be careful where you're looking if you're driving. So beyond just a large screen and it being completely touch-sensitive, again, for us, performance is really important.

And a game like Need for Speed really pushes the limits. So we want to show you exactly how fast this device in this game really goes. Yee-haw. Nice driving, John. So that's Need for Speed running on the iPad. And you can expect a lot more great stuff coming from EA soon. Thanks, everybody. Thanks, guys. Last up is MLB.com. MLB.com is the official website of Major League Baseball and the publisher of MLB.com at bat.

Now, that app has been downloaded nearly 2 million times and has streamed over 60 million videos, making it one of the most popular sports apps in the App Store. To show you what they're doing with the iPad, I'd like to invite up Chad Evans. Chad. Thanks, Scott. Good morning, everybody. Joining me is Tracy Pessin, our director of mobile engineering. We were extremely excited to build something for the iPad. And we realized we couldn't just take our existing iPhone application and make it bigger. We really need to create a whole new experience to take advantage of the big, gorgeous, interactive display. So let's take a look at the demo. So you're currently looking at our live game experience with data from last April. Across the top, you have our league scoreboard, which allows you to navigate to any of the day's games.

On the field, you have our game day pitch tracker, which shows you the trajectory of every pitch thrown. And you can tap on a pitch to bring up additional details. You can also tap any player to flip open his baseball card. So you can see all the stats relevant to the current game situation. And now with all this great screen space, we can actually show you video highlights while all this is going on. So you can replay the game's best. High drive. Right center field. Hit a ton. Up in Triple Valley. I love that. Across the bottom, you've got your game controls. So you can see the box score, the field, the summary, the batter-pitcher matchup, and scroll through the lineup.

And it looks like we've got a man on first now. So we can take a look at all the action with MLB.TV, where you can watch live with your choice of home or away announcers. So the first thing you'll notice is that baseball looks absolutely amazing on this screen. And now we can enhance it with great live data from MLB.com, like the scoreboard, the field, the box score, and player cards, all while you watch. So let's take a look. So we really think this device, with its big interactive display, allows us to create a really rich, immersive, interactive experience for fans who enjoy the national pastime.

Thank you. Did everyone know that instead of carrying a transistor radio into the backyard to listen to baseball, I'll be taking my iPad and this app? Now, we really are incredibly excited about the opportunities for developers to build amazing apps for the iPad. And we're providing an SDK today to let developers get going on that. Now, while we wait for those apps to come out, we can all run all of our existing iPhone apps, unmodified, right on our iPad. And that is the app story for the iPad. Steve.

That's great. Thank you, Scott. Isn't it awesome? And these guys only had two, two and a half weeks to work on this stuff. So imagine what they're going to do in the next few months. People are going to go crazy. So we've seen some really great apps. Let me show you another one of our apps that we're very excited about. Of course, that's an e-book reading app. Now, Amazon's done a great job of pioneering this functionality with their Kindle. And we're going to stand on their shoulders and go a bit further. So this is what a Kindle looks like. I'm sure many of you have used one. This is reading a book on the new iPad.

It's really nice. And our new app is called iBooks. Now, iBooks has a bookshelf. It looks like this where you have all your books. If you want to read one, we just saw what it looks like. It's terrific. You can go into portrait and see both pages if you'd like. And in addition to having your bookshelf and being able to read books, there's a button in the upper left corner of the bookshelf, which is the store. And we've created the new iBooks store, fully integrated with the iBooks app, to allow you to discover and purchase and download e-books right onto your iPad. So you can discover books.

We've got, of course, our top charts lists, the New York Times bestseller lists, and we've got five of the largest publishers in the world that are supporting us in this and are going to have all their books on the store. And we're going to open up the floodgates for the rest of the publishers in the world starting this afternoon. So we're going to have a lot of books on the bookstore. We're very excited about this. I think it's going to be a great app. So let me go ahead and show it to you. So there's our bookshelf.

Here's some of our books. And probably the best thing is let's go into the store right now. I hit the store button. It's kind of like a secret passageway. It flips around. And here is the iBooks store. And if you've used iTunes or the App Store, you're already familiar with this. And we can look at books here. We can look at the New York Times bestseller lists, et cetera. Let's go back here. And I want to actually buy True Compass by Edward Kennedy. So I just tap on it. I get more detail about it here. Take a look at the reviews of it. And I'm going to buy it. I get a sample of it to read if I'd like, but I'm sold already.

So I'm just going to go tap on it and buy this book. And the book downloads right onto my bookshelf like that. And that's all there is. It's just so simple. And now if I want to read that book, I just tap on it. And here it is. And this is what it's like to read a book. I have some controls. I can just tap in the center and the controls go away, get them back, send them away. And to flip the page, I just flip forward. I tap anywhere on the right. And I flip forward. Flip back, just tap on the left. That's it. I can even flip myself if I want by dragging it if I'd like, you know.

Very simple. And I can go to the table of contents here. And I can just pick a chapter and go there. I'm going to pick part two, Brotherhood. And again, you can have photos, black and white, or color. You can have video if you'd like in your books, whatever the author wants. It's very, very easy. And this is what it's like. And we can change the font size if we'd like, bigger or smaller. We can change the font. Pick a different font. Whatever you want.

And that is iBooks. So iBooks, again, a great reader, a great online bookstore. The iBookstore, all in one really great app. We use the EPUB format, and so it is the most popular open book format in the world. We're very, very excited about this. We think the iPad is going to make a terrific eBook reader, not just for popular books, but we are also very excited about textbooks as well.

Now, something very exciting, iWork. A little over a year ago, I asked the head of our iWork team to take a look at creating a version of iWork for the iPad. And the initial reaction was, ah, the iWork apps, Keynote, Pages and Numbers, are really heavy-duty apps. They require a lot of horsepower. Could the tablet power them? And the answer turned out to be resounding, you betcha. And then, could we come up with an entirely new user interface for these apps?

It's very different than running on a personal computer. And what they came up with is really magnificent. And so to tell us about iWork on iPad, I'd like to invite up Phil Schiller, our Senior Vice President of Product Marketing. Phil? Thank you. Good morning, everyone. This is really exciting. iWork is a suite of applications that millions and millions of our customers on the Mac truly love. These applications are innovative. They're beautiful. They're creative. They're fun. Our customers at home and in schools and in business are able to create professional quality presentations, word processing documents, and spreadsheets, all with this amazing software.

As Steve told you, the iWork team has been hard at work for a year now, seeing if they can take this amazing software and bring it to a multi-touch tablet, the iPad. And I can tell you, they've done some amazingly remarkable work. We have a completely new version of Keynote designed specifically for the iPad, where you can create professional presentations just with your fingers. There's a complete new version of Pages. It is the most beautiful word processor you will ever see. And there's a complete new version of Numbers, a spreadsheet that is fun and cool to use. When's the last time someone's told you that? Really, the only way to appreciate how amazing the software is is for me to show you.

So I'm really honored to be the first to show you the new iWork applications on the tablet. So here we go. I get to sit in the chair. Let's launch Keynote. Keynote runs in landscape orientation because that's the way our slides are. Our slides are designed horizontally. And when we launch into Keynote, the first thing we do is we see our slide library. This is a library of presentations that we have created in Keynote. I can create a new presentation by just tapping a button to do so, and I have access to these gorgeous templates, just what you would expect in Keynote. I'm going to go into this first presentation, Seven Wonders of the World.

We open it up, and the first thing you see is a great layout. I have a big, beautiful slide to work on so I can create my content. I've got some menu items on the top, and I have my slide navigator, something familiar to all Keynote users, on the left-hand side. To move around the slide navigator, I just scroll with my finger. It's that easy. I want to go to a slide, I just tap on it, slide two. Now, this slide shows you it has beautiful text, great templates. Slide three, you can see there's a table. You can create tables right in Keynote. The next slide, four, shows a chart. You can create beautiful charts and graphs in Keynote. Now, here I am on slide five. It's an introduction slide. I think I want that further up in the presentation. How do I move a slide around in the navigator without a keyboard or mouse?

It's really simple. I'm going to hold my finger down on it. It pops up out of the canvas. I drag it wherever I want and let go, and now I've rearranged my slide. Well, that's for one. What if I want to move a bunch of slides? Watch this. I'm going to pick slide five, drag it over, and then I'm going to tap four, tap three, and they create a bundle that I can drag and place anywhere I want, and they snap into place. So, multi-touch gestures used to arrange all my slides. Slide eight shows you can have incredible graphics and photos on this. Well, how do I get them in? I've got a media navigator. I can get right into all my content, like my photos and my photo albums, and just bring them right on. And when I bring the photos onto a slide, how do I move them around?

Of course, I use my finger. I just tap on a photo, and I can drag it around, place it wherever I want, get those convenient guides that I'm used to to help me align things. I'm going to resize a photo. How do I do that? Easy. I grab one of these blue handles, and I start resizing. Now, let's say I'm resizing this photo, and I want it to be exactly the same size as the one below it. While I'm resizing, I just tap the other one, and it sees I want to match them, and I let go, and they're now matched to the same size. I want to rotate a photo. I use two fingers. I want to mask a photo. Watch this. I just double tap, and I can expand this image, move it around, tap done. I've just done a mask, and that's an advanced technique that people do in presentations. It's so easy in Keynote. What else is easy?

Animations. Keynote has beautiful animations. The same is true in the iPad. Let's say I want to bring this chart in with a build. Well, I go into animation mode. It's a button on the top right, and I see there's no build in assigned yet, so I'm going to tap the build in button, and I have access to all these great animations. Let's do a scale, and it will automatically preview that scale. I'll use the same technique if I want to create transitions on slides. In animation mode, I tap the slide. I see that there hasn't been a transition set yet, so I select it, and I have great transitions. Let's pick the cube, and I'll preview that as well. So very quickly and easily with just my finger, I'm doing very advanced slide animation techniques. Whenever I'm ready to present, I start wherever I want.

We'll start with slide six. I hit the play button, and once I do that, we're now presenting, and I can advance slides by either tapping or swipe right to go forward or left to go back. So I tap to go to the next slide, tap to bring up that chart we just animated, tap to do that cube transition we just did. Now watch this one. When I tap, that's called magic move, automatic animation transitions created in Keynote, a very advanced feature that's on the iPad as well. Look at the quality of some of these graphics and transitions. They're just beautiful. Anytime I want to get out of it, I just double tap, and I'm back into Keynote, and out to all my presentations. So that's a very quick, brief view of Keynote and all the power it has on the iPad.

Now let's go to Pages. Like Keynote, with Pages, I see a library of documents that I've created in here. I also can get access to a lot of templates to start anything new. Let's go into this first one, Life in the Serengeti. Again, this is a document that was created right on the iPad. It's beautiful. I can scroll through the text and headlines and copy. If I tap anywhere in the text, up pops my keyboard, and down comes the ruler. It's the most beautiful ruler you've ever seen in an application. It gives you access to your most needed formatting commands. If I want to just focus on typing, I can turn it horizontal, and I get a bigger keyboard, and it's all focused on the text.

Now, scrolling up and down is something I can do easily with my finger, as you see. But if I want to even get through the document even quicker, I've got a new tool called the Page Navigator. I hold my finger on the right, and now I see a smaller version of each page. I can go to whatever page I want. Let's go to Page 6. Now here you see something really advanced happening. We're seeing automatic text wrap around a graphic. I can hold down on this giraffe's head and start moving it around, and you see the intelligent auto-wrap happening. I can tap on the text to type, or I'm going to tap the Info button on the top to bring down a control panel where I can set a whole bunch of things, formats. I can create outlines. I can even affect the layout of this text.

With one tap, I'm going to make it a two-column format. With just that simple, easy control, I can create a beautiful two-column format with text wrapped around it. So that's just a brief view of Pages. It is the most beautiful word processor you've ever used. And last, Numbers. Numbers, again, gives me a library of spreadsheets I may have created. It has great templates. Let's go into this first one, the soccer team. Now this is going to show a lot. Right in this first screen, you can see I have great text. I have beautiful photos. Of course, I have tables of data. I have charts linked to tables. I even have tabs along the top, so one document can actually hold many spreadsheets. So let's do some typical tasks you might do with a spreadsheet, but all without a keyboard and mouse.

I'm going to tap this center table. Let's say I want to rearrange some of the columns. How would I do that with just my finger? I'm going to tap right above the column, Andrew. I'm going to grab this handle and also select the Amy column. And let's move those columns to the end of the table. So I'm going to hold my finger. They pop up. And I just drag them across, let go wherever I want them. And I've reorganized columns in a table, and the link chart has automatically been updated as well. It's that easy. Let's go to the next tab. I have some more data in a table here and a pie chart associated with it. What about adding more rows of data and maybe doing a calculation on those columns to do a subtotal? That's really easy. I'm going to tap the table. I'm going to tap the button on the bottom left to add a row. And now I'm going to double tap the first cell in this row and something really amazing happens.

I brought up the data entry keyboard. This is one of the amazing benefits of a touch interface and soft keyboards. The default keyboard is exactly what you need for numeric data entry to quickly get at and enter data in your cells. Or I could bring up a time and date keyboard to do formulas using times and date. Of course, I can enter text. And I've got access to all my formulas and functions. There's over 250 formulas and functions built in to Numbers. I can go into any one of them, even get help built on it right here by tapping. But what I want to do is simpler than that. I just want to do a sum on the column. And that's a button right there on the keypad, so I'll tap it, sum. And Numbers is smart enough that it recognizes where I am, the column of data, and automatically created the formula to sum that column.

All I have to do is tap the green checkbox to accept it because it's right. And what if I want to move and fill that across all of them? I could copy and paste, but there's an even faster way. I just tap that cell. I tap fill. And now I drag the yellow box across to where I want to fill across, and it's done that. It's filled across and automatically created my subtotals. You see a pie chart here. I have the easy ability to affect that pie chart. I can tap the info button, change it to a different style graph, or change the way it looks. Make it black and white or give it really vibrant colors. And what if I think Chris has done a great job and I want to highlight his wedge of that pie? I'm going to drag it out of the pie chart.

I just hold my finger on it and drag to position it wherever I want. You know, things that are hard to do on a spreadsheet with a keyboard and mouse are really easy to do with this touch interface. Numbers is so powerful, you can create spreadsheets like this one that has formulas, checkboxes, ratings. I can even take a table just like this one and in one simple tap command create a form. Now, all the data in that spreadsheet is represented as a form on the tablet that I can enter. I just hit the arrows to move between the different records. I can decide that Andrew here has done a great job goaltending and his accuracy is great. And with a simple touch, now I've created a form, I've entered data, all in an advanced spreadsheet on the iPad. So that's a quick look at iWork on the iPad.

These applications are incredible. They really show the tremendous potential and power of the iPad to do tasks that were before advanced and difficult and now they can be fun and easy and really professional. Applications like this are amazing. So what are we going to charge for them? I'm really excited that we're going to charge just $9.99 each for these applications. That's just great. These are three completely new applications. They have amazing new user interfaces. They're compatible with iWork and the Mac, so you can import and export between the iPad and your Mac.

You can easily connect to a projector, so when you're running a keynote presentation with a simple cable, you can present it to a larger audience. Again, price is just $9.99, and they're going to be available right on the App Store, right on the iPad. So everyone who gets an iPad can quickly and easily purchase and download these three applications. So that's Keynote, Pages, and Numbers, and that's iWork on the iPad. Thank you. Thank you, Phil. Isn't it great? I'm very happy. So, a few other things.

I'd like to talk for a minute about iTunes. The iPad syncs over USB with iTunes running on your Mac or your PC, exactly like an iPhone or an iPod Touch. And so, when you sync, you sync everything. You can sync your photos, your music, your movies, your TV shows, your contacts, your calendars, your bookmarks, and of course, all those applications that you might have already bought for your iPhone or your iPod Touch. Backups are synced back. If you ever lose your iPad and you get another one, you can restore it right from the backup, right where you left off. So USB syncing to iTunes running on your Mac or your PC, and we think this is a real benefit.

Now I'd like to talk about wireless networking. Every iPad has Wi-Fi in it, the latest and greatest Wi-Fi. But we're also going to have models of iPad with 3G, cellular wireless data built in, as well as Wi-Fi. Now, what does it cost for the data plans? Well, in the US, telecom companies typically charge about $60 a month for a data plan for a laptop. We've got a real breakthrough here. We've got two awesome plans for iPad owners. The first one gives you up to 250 megabytes of data per month.

That's a fair bit of data. Most people will get by on that. Up to 250 megabytes of data per month, just $14.99. And if you feel you need more, we have an unlimited plan for just $29.99. So these are real breakthrough prices. We've got a breakthrough deal with AT&T that's providing this service, $14.99 for up to 250 megabytes, $29.99 for unlimited data. And AT&T is throwing in free use of their Wi-Fi hotspots all throughout the US.

They have more Wi-Fi hotspots than anyone, and this is really great as well. Now, how do you turn this on and manage it? You don't have to go to a store. You don't have to call anybody. You can activate this right on the iPad itself. And there's no contract. It's prepaid. So there's no contract, and you can cancel it anytime you want. So for $14.99 a month, you can buy your new iPad, activate it right on the iPad, $14.99 a month for 250 megabytes of data, and you can cancel it whenever you want. We think it's a phenomenal offering. Now, so we've got a breakthrough deal in the US.

What about international? Well, we hope to have our international deals in place in the June-July time frame. We think we can probably do a lot of them by June. And so we're going to start on that tomorrow. However, all of the iPad 3G models are unlocked, and they use the new GSM microSIMs. So internationally, some of the carriers offer microSIMs. It's a very high likelihood they'll just work. And we'll be back this summer with some even better deals for our customers internationally. So Wi-Fi plus 3G if you want it.

We're very excited about this. And so iPad, it's phenomenal to hold the internet in your hand. Email is fantastic on this device. It's the best device I've ever seen for enjoying and sharing photography, great for enjoying your music collection, and video is phenomenal on it. It runs almost all of the 140,000 apps on the App Store, as well as a whole new generation of apps that will be designed specifically for the iPad.

And the new iBooks application with the iBook Store, you can carry literally thousands of books around on your iPad. And the iWork suite of apps for doing productivity applications with the best user interface we've ever seen for something like this. An amazing product, tremendous breadth. What should we price it at? Well, if you listen to the pundits, we're going to price it under $1,000, which is code for $9.99.

When we set out to develop the iPad, we not only had very ambitious technical goals and user interface goals, but we had a very aggressive price goal. Because we want to put this in the hands of lots of people. And just like we were able to meet or exceed our technical goals, we have met our cost goals. And I am thrilled to announce to you that the iPad pricing starts not at $9.99, but at just $499.

At $499, a lot of people can afford an iPad. So $499 for a 16 gigabyte iPad. That's our base model, 16 gigabytes with Wi-Fi built in. For 32 gigabytes, it's $100 more. And for another $100 beyond that, you get 64 gigabytes of storage. The 3G models cost an extra $130 to build in the radios. And so $629, $729, and $829. And these will be the six models of iPads we have, starting at $499. But the most expensive model, with 64 gigabytes and 3G, just $829.

We think it's an unbelievable price offering. So $499. But when can you get your hands on one of these? We will be shipping iPads in 60 days. Worldwide availability of the Wi-Fi models. It'll take us probably another 30 days beyond that to get the 3G models through the approval process with the carriers. And so within about 90 days, we'll be shipping the 3G models. So soon, you will be able to get an iPad in your hands, starting at just $499. We've got some really great accessories as well.

Let me show you three of them. First one's very simple. We have a dock. Why is that so interesting? Because you know the slideshow I showed you? Well, when you're in the lock screen, there's a little button that you just push, and it puts you in the slideshow. And you have a great picture frame to look at your photos while the iPad is charging on your desk. It's very nice. We have another dock for the iPad that's interesting, the keyboard dock. So, full-size mechanical keyboard, you slide your iPad into it, of course it charges, has a 30-pin connector out the back for charging, so you can charge your iPad, and when you really need to do a lot of typing, this is the way to go.

Just keep one of these in your den, when you've got a right to war and peace, just plug your iPad into it. Third accessory, really nice case. Protects your iPad, but it also flips around in back of itself, and is a really nice stand if you're going to do typing, and a great way to watch movies. So a nice case as well. So three accessories for the iPad. Now, we made a video, which we're going to put up on the web, but since we've got this really great projection system here, I thought you might like to see it on the big screen. So let's go ahead and run the video. You know, it's true, when something exceeds your ability to understand how it works, it sort of becomes magical, and that's exactly what the iPad is.

It's hard to see how something so simple, so thin, and so light, could possibly be so capable. The iPhone was a revolution, and we learned so much from it, and developed so many amazing technologies, all the applications, the multi-touch user interface, it was truly an incredible breakthrough product. We wanted to take all of that, and apply that to a whole new class of product. The iPad is the best web-surfing experience, the best e-mail experience, the best photo and movie-watching experience, it's going to change the way we do the things we do every day. The face of the product is pretty much defined by a single piece of multi-touch glass, and that's it.

There's no pointing device, there isn't even a single orientation, you know, there's no up, there's no down, there's no right or wrong way of holding it. I don't have to change myself to fit the product, it fits me. We looked at the device, and we decided, let's redesign it all. Let's redesign, reimagine, and rebuild every single app from the ground up, specifically for the iPad. And with this large a display, you get apps that aren't just a little bit better than their smaller counterparts. You get apps that are an order of magnitude more powerful. The iPad is the best way to browse the web, for the same reasons that it just feels right to hold a book, or a magazine, or a newspaper in your hands as you read them, it just feels right to hold the internet in your hands as you surf it.

And with a screen this large, you can just see more of the web as you're surfing it. Take the New York Times, you can see all the top stories, they're all just right there. If you see something, you just reach out and tap it, it's completely natural, you don't even think about it, you just do. The iPad is a world-class email client that's incredibly fun, but very productive. You can go through huge quantities of email really quickly, and it's fun because you're doing it all with your hands. When you want to compose a new message, the keyboard automatically slides up from the bottom, and this keyboard is practically the same size as a laptop's keyboard. If you want to focus on a single message, just rotate to portrait, and everything else gets out of the way so you can concentrate on the content you care about.

iPad is absolutely the best way to view and share your photos. You see every one of your albums there as just a stack of photos, and you can just pinch open to peek in a stack, or just pinch it open and look at all your photos. If you want to share with a friend, you can just flip over the iPad, and the iPad automatically flips the photo to the correct orientation. This is an unbelievable device for watching video. The user interface we built for this is just fun. When you see something, you touch it with your finger, and it starts playing. There's no delay. The quality of this video is amazing.

You can double-tap to fill the whole screen. We also built an incredible Maps application on here. It's really fast. We created a calendar application like nothing you've ever seen on a computer before. Another app we're really excited about is called iBooks. When you couple books with a high-res color display, reading an e-book is just such a pleasure. Not only can you read books on it, but the UI actually flips over to reveal a bookstore behind it. With a tap of your finger, you can purchase and download a book and immediately start reading it. Now we have three phenomenal stores on the iPad.

The iTunes Store, the App Store, and now the iBooks Store. We built the iPad to run virtually every one of the more than 140,000 apps available on the App Store, as well as the ones already downloaded onto your iPhone. So the apps you use every day and all the games you love playing will run on your iPad right out of the box. Plus, with the release of the iPad SDK, developers will be building apps specifically for the iPad. So there's going to be a whole new gold rush for app developers. The iPad is the most advanced piece of technology that I've ever worked on at Apple. The innovation in the product really starts with multi-touch itself.

This multi-touch is the largest that we've ever built in a product. And it's on multi-touch of this size that you really feel the power and performance that multi-touch can offer. By putting well over 1,000 sensors in this multi-touch design, the level of multi-touch accuracy that the customer will experience is unprecedented. When you take the product out of the box and hit the power button, the display immediately comes to life. And I think our customers' experience with that will be, wow, this is a really vibrant display. The backlighting system is LED. And LED is what gives you the crispness and color quality in the display itself. Beyond that, we use IPS technology. IPS is a premium display technology that gives you not only a great experience looking directly at the device, but also off-angle when you're sharing the device with someone else.

The reason why this product responds so well and you really feel the performance of it is because of the custom silicon that we designed for this product. That silicon is called A4. And it's really built by our hardware team in concert with our software team. And what that gives you is a level of performance that you can't achieve any other way. It also gives you the efficiency to achieve a battery that lasts all day long. Apple's the one place that you can really do this. We build battery technology. We build chip technology. We build software. And we bring all those things together in a way that no one else can do it. One of the most important features we designed in the iPad was an affordable price.

Usually when you get the brand-new, latest technology, it starts at a high price. Over time, it gets more affordable as it works its way down. We wanted to do it differently. We wanted to take all this advanced technology, hardware and software, do everything we could to get it into the hands of as many people as possible right from the start. The iPad starts at just $499. And that's really exciting. The iPad, on one hand, is clearly way bigger than just the new product. This is a new category. But yet, millions and millions of people are going to be instantly familiar with it. They're going to know how to use it. In many ways, this defines our vision, our sense of what's next.

Let's go back to the beginning. Do we have what it takes to establish a third category of products? An awesome product in between a laptop and a smartphone. Well, the bar is pretty high. It's got to be far better at doing some key things like these. And we think we got the goods. We think we've done it. And we are so excited about this product. Another thing we're so excited about is that because we've shipped over 75 million iPhones and iPod Touches, there's over 75 million people that already know how to use the iPad.

So we can't wait for them to get their hands on it. And as you know, we have the iPad. iTunes Store, the App Store, and now the iBook Store, all on the iPad. And between these stores, we have over 125 million accounts with credit cards, all enabled for one-click shopping on all of these stores. And users have downloaded over 12 billion products from these stores, over 12 billion products. So we are at scale and we are ready for the iPad.

Now the iPad, if you were to sum it up, is our most advanced technology in a magical and revolutionary device at an unbelievable price. Our most advanced technology in a magical and revolutionary device at an unbelievable price. And we think this is going to be a really great combination. Now the reason that Apple's able to create products like the iPad is because we've always tried to be at the intersection of technology and liberal arts, to be able to get the best of both, to make extremely advanced products from a technology point of view but also have them be intuitive, easy to use, fun to use, so that they really fit the users. The users don't have to come to them. They come to the user. And it's the combination of these two things that I think has let us make the kind of creative products like the iPad. So we've got a hands-on area next door. We'd like you to go get your hands on an iPad, because when you feel all this power and this much fun and the Internet in

your hands, you'll never want to go back. So thank you so much for coming this morning and we hope you love the iPad as much as we do. Thank you very much.