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An iPod, a phone, and an internet communicator.
An iPod, a phone.
Are you getting it?
These are not three separate devices.
This is one device.
And we are calling it iPhone.
And to unlock the phone, I just take my finger and slide it across.
Right? You want to see that again?
Go to sleep.
We wanted something that you couldn't do by accident in your pocket.
Just slide it across. Boom.
Hey, Johnny, how are you doing?
I'm good. How are you doing?
Well, it's been two and a half years, and I can't tell you how thrilled I am
to make the first public phone call with iPhone.
This is a day I've been looking forward to for two and a half years.
Every once in a while, a revolutionary product comes along that changes everything.
And Apple's been very fortunate.
It's been able to introduce a few of these into the world.
In 1984, we introduced the Macintosh.
It didn't just change Apple.
It changed the whole computer industry.
In 2001, we introduced the first iPod.
And it didn't just change the way we all listen to music.
It changed the entire music industry.
Well, today, we're introducing three revolutionary products of this class.
The first one is a widescreen iPod with touch controls.
The second is a revolutionary mobile phone.
And the third is a breakthrough Internet communications device.
Three things.
A widescreen iPod with touch controls, a revolutionary mobile phone,
and a breakthrough Internet communications device.
An iPod, a phone, and an Internet communicator.
An iPod, a phone.
Are you getting it?
These are not three separate devices.
This is one device.
And we are calling it iPhone.
Today, Apple is going to reinvent the phone.
Here's four smartphones, Motorola Q, the Blackberry,
Palm Treo, Nokia E62, the usual suspects.
And what's wrong with their user interfaces?
Well, the problem with them is really sort of in the bottom 40 there.
It's this stuff right here.
They all have these keyboards that are there whether you need them or not to be there.
And they all have these control buttons that are fixed in plastic
and are the same for every application.
Well, every application wants a slightly different user interface,
a slightly optimized set of buttons just for it.
Well, how do you solve this?
Well, what we're going to do is get rid of all these buttons
and just make a giant screen.
A giant screen.
Now, how are we going to communicate this?
We don't want to carry around a mouse, right?
So what are we going to do?
Oh, a stylus, right?
We're going to use a stylus.
No.
Who wants a stylus?
You have to get them and put them away and you lose them.
Yuck.
Nobody wants a stylus.
So let's not use a stylus.
We're going to use the best pointing device in the world.
We're going to use a pointing device that we're all born with.
We're born with ten of them.
We're going to use our fingers.
We're going to touch this with our fingers.
And we have invented a new technology called multi-touch,
which is phenomenal.
It works like magic.
You don't need a stylus.
It's far more accurate than any touch display that's ever been shipped.
It ignores unintended touches.
It's super smart.
You can do multi-finger gestures on it.
And boy, have we patented it.
Third thing I want to talk about a little is design.
We've designed something wonderful for your hand.
Just wonderful.
And this is what it looks like.
It's got a three-and-a-half-inch screen on it.
It's really big.
And it's the highest resolution screen we've ever shipped.
It's 160 pixels per inch.
Highest we've ever shipped.
It's gorgeous.
And on the front, there's only one button down there.
We call it the home button.
It takes you home from wherever you are.
And that's it.
Let's go ahead and turn it on.
This is the size of it.
It fits beautifully in the palm of your hand.
I'm going to go ahead and just push the sleep-wake button.
There we go, right there.
And to unlock the phone, I just take my finger and slide it across.
You want to see that again?
Go to sleep.
We wanted something that you couldn't do by accident in your pocket.
Just slide it across.
Boom.
And this is the home screen of iPhone right here.
And so if I want to get in the iPod, I just go down to that lower right-hand corner
and push this icon right here.
And boom, I'm in the iPod.
I want to get home, I push the home button right here, and I'm home.
Back in the iPod.
Now, here I am.
You can see five buttons across the bottom.
Playlists, artists, songs, videos, and more.
I'm in artists right now.
Well, how do I scroll through my list of artists?
How do I do this?
I just take my finger and I scroll.
Isn't that cool?
Alrighty.
So that is the iPod.
Pretty cool, huh?
We've just started.
Now, let's take a look at a revolutionary phone.
We want to reinvent the phone.
Now, what's the killer app?
The killer app is making calls.
It's amazing.
So let's go to our phone first.
You see that icon in the lower left-hand corner of the phone?
I just push it right here.
And boom, I'm in the phone.
And I've got five buttons across the bottom.
Favorites, recents, contacts, keypad, and voicemail.
I'm in contacts right now.
Again, how do I move around my contacts?
I just scroll through them.
And so let's say I want to make a call to Johnny Ive.
I can just push here, and I see Johnny Ive's contacts
with all his information, his three phone numbers, his email,
whatever else, his address, whatever else I've got.
It's all in one place.
And if I want to call Johnny, all I do is push his phone number,
and he'll call his mobile number right now.
And now we are calling Johnny here.
I can turn on a speakerphone like this if I wanted to.
Hi, Steve.
Hey, Johnny, how are you doing?
I'm good. How are you doing?
Well, it's been two and a half years,
and I can't tell you how thrilled I am
to make the first public phone call with iPhone.
I remember when we first started working on this,
and it's just unbelievable.
Whoa, whoa, what is this?
I've got another call coming in.
Johnny, can I put you on hold for a minute?
Yeah, sure.
Okay.
So I put Johnny on hold.
Hi, Phil.
Hi, Steve, I wanted to be the first call.
Sorry, Phil.
As you can see, it's put Johnny on hold,
and Phil, I can just touch Johnny and bring Johnny back.
Hey, Johnny, you there?
Yeah, I'm here.
Hey, listen, Phil called.
Do you mind if I conference him in?
You can see the button has changed
to merge calls right there in the middle,
so I just push that right here,
and now I've created a conference call.
Johnny, you there?
I'm here.
Do you have anything to say on the first phone call?
It's not too shabby, is it?
It's not too shabby.
You take care, Johnny.
I'll see you later.
And I end this call, and Phil's on hold.
I take him off of hold.
Phil, thanks very much.
I've got to get back to the keynote now.
All right, talk to you later.
Bye-bye.
Bye.
All righty.
All right, now I want to show you something incredible.
I want to show you Safari running on a mobile device.
So let's go to the web, and here we are.
I'm going to load in, rather than Apple.com here,
a little more universal site.
I'm going to load in the New York Times.
It's kind of a slow site because it's got a lot of images,
but here we are loading it.
We're loading it over Wi-Fi right now.
And guess what I can do?
I can just put this into landscape mode,
and there it is right there.
And I can scroll here if I want,
scroll up and down here.
Boom, still loading it in.
There we go.
Or I can just get back like this.
Now, this is really great,
and I can see the whole page,
but, of course, I can't read it.
It's a little too small.
So I can get in with my fingers and pinch it,
but we have an optimization here.
I can just double-tap on anything,
and it automatically fills up the screen with it.
And I can just scroll around like this
and scroll over here,
and I can even make this text bigger if I want to.
And there it is.
And just double-tap again to get back to the full page.
Isn't this cool?
And so I'm just...
Look at this.
There is the New York Times.
And, again, any article I want,
there we go.
Unbelievable.
And there we go.
Isn't that incredible?
Safari.
So iPhone is like having your life in your pocket.
It's the ultimate digital device.
So what should we price it at?
Well, what do these things normally cost?
An iPod, the most popular iPod, $199 for 4 gig nano.
What's a smartphone cost?
Well, they say you get the phone
and some of the Internet with it,
although that's questionable.
But they cost somewhere between...
around $299.
You can get them for $199.
Palm just introduced a new one at $399 yesterday.
So generally average about $299 with a 2-year contract.
Now, these phones sort of do music,
but nobody uses them for music
because they're not very good.
And so they end up buying an iPod to go with the phone.
We know. We sell the iPod.
And so people spend $499 on this combination.
What should we charge for iPhone?
Because iPhone's got a lot more than this stuff.
So how much more than $499 should we price iPhone?
Well, we thought long and hard about it
because iPhone just does so much stuff.
For 4 gigabyte model,
we're going to price it at that same $499.
No premium whatsoever.
$499.
And we're going to have an 8 gigabyte model for just $599.
So we're going to price it starting at $499.
Let's take a look at this market and how big it is.
Game consoles.
26 million game consoles were sold in 2006 worldwide.
Actually a little smaller than you'd think.
It's not such a big market.
Digital cameras dwarfed it at 94 million.
MP3 players, 135 million.
And PCs, about 209.
Mobile phones, just about a billion last year worldwide.
So what does this tell you?
What this tells you is that 1% market share
equals 10 million units.
This is a giant market.
If you just 1% market share,
you're going to sell 10 million phones.
And this is exactly what we're going to try to do
in 2008, our first full year in the market,
is grab 1% market share and go from there.
So we're going to enter a very competitive market,
a lot of players.
We think we're going to have the best product in the world
and we're going to go for it
and see if we can get 1% market share,
10 million units in 2008, and go from there.
So today we've added to the Mac and the iPod,
we've added Apple TV, and now iPhone.
And so we thought about this and we thought,
you know, maybe our name should reflect this
a little bit more than it does.
So we're announcing today
we're dropping the computer from our name
and from this day forward we're going to be known
as Apple Incorporated
to reflect the product mix that we have today.
You know, I didn't sleep a wink last night
and I was so excited about today
because we've been so lucky at Apple.
We've had some real revolutionary products.
The Mac in 1984 is an experience
that those of us that were there will never forget.
And I don't think the world will forget it either.
The iPod in 2001 changed everything about music.
And we're going to do it again with the iPhone in 2007.
We're very excited about this.
You know, there's an old Wayne Gretzky quote that I love.
I skate to where the puck is going to be,
not where it has been.
And we've always tried to do that at Apple,
since the very, very beginning.
And we always will.
So thank you very, very much for being a part of this.