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  • [ Music ]

  • [ Silence ]

  • [ Applause ]

  • >> Thank you, thank you, thank you, thank you, thanks for joining us, and good morning.

  • I really love that video. We played it for the first time at the Developers Conference

  • in June and I wanted to open with that this morning because I think it does such an incredible

  • job of talking about our values. It reflects the unique way that Apple creates what we

  • believe are the very best products in the world. You're going to see some amazing products

  • this morning that could only have been developed in that unique way. We are really excited

  • to show them to you but before we dive right in, I've got a few updates beginning with

  • iPhone. As you may have heard, we launched two new designs last month. We launched the

  • amazing iPhone 5c in a range of gorgeous and vibrant colors. Harry McCracken of TIME Magazine

  • called it the perfect example of hardware and software integration. And we announced

  • the forward thinking iPhone 5s with its blazing fast 64-bit A7 chip, a stunning iSight camera

  • system, and of course Touch ID. Walt Mossberg of The Wall Street Journal called it our--called

  • it the best smartphone on the market. And millions of people agree by the end of the

  • launch weekend, we had sold 9 million iPhones making it the biggest iPhone launch ever.

  • [ Applause ]

  • The excitement and energy around the launch was absolutely palpable. And there was no

  • better place to witness it than in one of our retail stores. We prepared a brief video

  • for you this morning to share that excitement with you and I'd love to run it for you.

  • [ Pause ]

  • [ Music ]

  • [ Music & Discussions ]

  • [ Music & Cheering ]

  • [ Music ]

  • [ Applause ]

  • I know I can speak for everyone in Apple that when we see customer response like this, it

  • makes all the hard work worthwhile. Both new iPhones shipped with iOS 7, a bold new redesign

  • with great new features and the biggest change to iOS since the original iPhone. The reviews

  • have been tremendous. David Pogue of the New York Times called it some of Apple's best

  • work. And millions of customers, hundreds of millions of customers agreed. They love

  • the bold new redesign and the stunning new features. We made the updates easy and quick

  • to get in just five days after launch over 200 million devices were running iOS 7, making

  • it the biggest and fastest software upgrade ever. And I'm pleased to tell you that as

  • of today, nearly two-thirds of the devices are running iOS 7. Now, this is tremendous,

  • it blows away the other guys. And we love this because it makes, it gives our users

  • the latest software so they can enjoy the greatest features and the best possible experience.

  • One of the great new features that shipped with iOS 7 was iTunes Radio. iTunes Radio

  • is a fun and easy way to discover and explore new music. And it runs on iOS devices but

  • also in your Mac or PC through iTunes and even on your Apple TV. Artists loves iTunes

  • Radio. Justin Timberlake called it an amazing way to discover new music and debuted his

  • album on iTunes Radio. Now, even more importantly, customers love it. We now have had over 20

  • million users listen in on iTunes Radio and this number continues to grow. And they've

  • been really active. They've listened to over a billion songs. And this is just in the U.S.

  • in the last month. It's absolutely fantastic. Next stop, the App Store. The App Store continues

  • to grow in size and scope. We now have over a million apps on the App Store and our users

  • have downloaded an astonishing 60 billion times. Now, this is staggering, and the App

  • Store continues to be the best place for developers to be rewarded for their creativity. Developers

  • have now earned over 13 billion dollars. It's hard to imagine your life without these phenomenal

  • apps. It's been an enormous sea change. Next stop, the Mac. We have an amazing lineup of

  • desktops and notebooks. And we've had one focus since the beginning to build the best

  • personal computers in the world, computers that people just love to use. And we've done

  • that through a combination of incredible hardware and beautiful design coupled with OS X, the

  • world's most advanced desktop operating system and apps like iWork and iLife, phenomenal

  • apps for your productivity and creativity. And it all--Mac just works seamlessly with

  • all of your iOS devices with iCloud. And all of this comes together in this really delightful

  • experience that our users just love. Now, our competition is different, they're confused.

  • They chased after netbooks. Now they're trying to make PCs into tablets and tablets into

  • PCs. Who knows what they will do next? Well, I can't answer that question. But what I can

  • tell you is we have a very clear direction and a very ambitious goal. We still believe

  • deeply in this category. And we're not slowing down on our innovation. We've been really

  • hard at work on the Mac, and we've got some exciting new products to share with you this

  • morning. To start things off, we'd like to start with OS X and to do so, I'd like to

  • invite Craig Federighi to the stage. Craig?

  • [ Applause ]

  • >> Thank you, Tim. Well good morning. Well let's talk about OS X. So the team has been

  • hard at work on the latest release of OS X, our tenth release in the history of OS X.

  • And this one is a doozy. We really focused on three major areas in OS X. Some core technologies

  • to fundamentally accelerate the performance of your Mac, some features that smooth the

  • Mac experience, and some great new apps. Now, one of our biggest missions with Mavericks

  • was to fundamentally upgrade your hardware to get more charge out of your battery, to

  • get more out of your memory, and higher performance out of your GPU. Now, while we considered

  • going door to door with a bag of parts and we would love to meet you, we're software

  • guys and actually kind of shy. So, we decided to do it with some code. And we started with

  • power efficiency and made changes deep and broad across the systems and the result is

  • outstanding. Now of course, battery life varies by the model that you choose. But even if

  • you take our 13-inch MacBook Air, the latest which is just has fantastic battery life,

  • and all you do is install Mavericks, you get up to an hour longer web browsing on a single

  • charge and up to an hour and a half longer watching iTunes video. It's really fantastic.

  • We've also made big improvements with memory. Now, Mac users love to push their systems

  • to the limit, and that's great as long as you have enough memory. But when you start

  • to exhaust the system's free memory, things can slow down. And that's where our new Mavericks

  • feature called compressed memory comes in. With compressed memory, Mavericks can actually

  • compress almost instantaneously inactive parts of your--contents of memory making space for

  • new allocations. This allows us to fit 6 gigs of data in just 4 gigs of system RAM. And

  • what this means is you can run more applications and never slow down. Next, graphics. We've

  • made enhancements to the graphic system system-wide and we focused particularly on integrated

  • graphics. Now, some of our latest Macs include high performance integrated graphics where

  • the CPU is combined on the same die with the GPU and sharing the same system memory. Now

  • in the past, OS X allocated a static amount of memory set aside for graphics. But Mavericks

  • is much smarter. If you're running a task that needs lots of memory but doesn't need

  • much graphics, Mavericks can allocate just a little bit to graphics. But if you're doing

  • something graphics-intensive like playing many streams of high resolution video, Mavericks

  • can give the graphics subsystem everything it needs. And what this means is high performance

  • no matter what you're doing. Finally, we brought OpenCL to integrated graphics. Now OpenCL

  • takes compute-oriented tasks that would normally run on the CPU and instead, takes advantage

  • of the massive, parallel compute power of the GPU to make them run much faster. And

  • we see in benchmarks results of up to 1.8x acceleration for these tasks, and sometimes

  • 2x and higher for image-processing tasks. It's really fantastic. Now of course, Mavericks

  • has many great enhancements for your Mac user experience as well. Things like shared links.

  • So in Safari, you can discover new links on the web from people you follow on Twitter

  • and LinkedIn. We've enhanced notifications so now you can respond in a notification right

  • there while staying in the app that you're already in. In the Finder, we now have tags.

  • It's a great way to organize files no matter where they are, whether on your Mac or in

  • iCloud. And we made big improvements to our handling for multiple displays so you can

  • take an app full screen on any display and get at your dock and menu bar just like it's

  • your primary display no matter which display you're using. We've also brought some great

  • new apps to the Mac as well. We have a fantastic new Maps app. It's a native app, high performance,

  • Multi-Touch gestures, turn by--or driving directions, and flyover looks great on your

  • big Mac display. We've also brought iBooks to the Mac. You have your whole book library

  • there and your iBooks textbooks as well. But of course, the best way to appreciate and

  • experience Mavericks is with a demo, excuse me, and I'd like to give one to you right

  • now. All right, let's take a look here at Mavericks. And of course, the Mac has no equal

  • when it comes to a tool for getting projects done. I'm going to work on a project right

  • here and open up pages, and open up a document for "Mission to Mars." And what's really great

  • now in Mavericks is I also have access right here on my Mac to iBooks. So I have my book

  • library here, I can open one of my books, this is a textbook on Mars. Of course, you

  • see these beautiful interactive textbooks. I can just use Multi-Touch gestures to move

  • between the pages of a chapter just like this. Of course, they're these great interactives.

  • There's a video here I can play.

  • >> 3, 2, 1 start, 0 and lift off. The Atlas V .

  • It's really, really nice. It's a great way to learn but it's also a great way to

  • work. So if I have a quote for instance that I want to move into a report that I'm writing,

  • it's a citation, you can just click, drag that quote right into my document just like

  • that, and now, it's much easier to organize my content as well with tags. So you see here,

  • I have the contents in my documents folder. It's a lot in here. But I've been able to

  • categorize my topic with tags. So if I want to see on my content related to Mars, I could

  • just access it right here. So I'll drag an image out that I want to add to my document

  • just like this. That looks pretty good. And tagging your own document is really easy as

  • well. I can just click here on the title bar and add a tag. As you can see, I can select

  • from any tags I've already created like Mars. And I can also tag a single document with

  • multiple tags. So, this one also has to do with school. I'll tag it just like that. And

  • you'll notice, it appears here under Mars as well as under school. Now, Mavericks is

  • also really great for keeping track of what's going on even when I'm working. So for instance,

  • if a notification comes in, like this, let's see. Oh, yup, I can actually respond right

  • here to my wife. Let's see. OK, well, let's see, Phil is my fashion guru. So you can just

  • respond right there. It's really convenient.

  • [ Applause ]

  • Now, we support a new kind of notifications in Mavericks as well which is website notifications.

  • If I've signed up for a particular site, I can see a notification like this. Here, we'd

  • see Major League Baseball sent me a notification. Zoom back out here, you can see, I get a story

  • right here. I can read it like this. I have another notification from a website, this

  • one for an item I'm following on Gilt. Get a notification. It's available. That looks

  • really like just what I need. So, I can buy it right now. And what's great is with iCloud

  • keychain in Mavericks, my passwords are synced across all my devices so I can log right in

  • without having to remember or type my password. And that also works for entering my payment

  • information. Just click here into the card number field, my credit cards are listed,

  • you want to write down that number right now, and along with my expiration date. But you

  • don't have my security code. I have to enter that in manually for extra security. Now,

  • while we're here in Safari, let's take a look at our great new top sites view. And on the

  • left here, you see shared links. So I can click to view an article. Here's a nice one

  • about Apple's new campus. I for one look forward to working in outer space. So I can gesture

  • back right to my list and do searches. So for instance, I can search for stories shared

  • that have Mars in it, I can click in like this. And we have a great new reader view

  • as well. It looks really nice. And as I scroll through the articles with Safari's accelerated

  • scrolling, I can go right from the end of one article right into the next just continuously.