Notes Floating Around

Not sure how much I can write in a post so this will span over several posts. Please comment re: accuracy, spelling etc. Note that International (that is, not American) English is used for this transcript. The timestamps on these posts will be adjusted accordingly so when viewing this link (this tag – http://sundigger2088.wordpress.com/tag/mwsf07-keynote/ ), the transcript flows chronologically.

MacWorld San Francisco January 2007 Keynote Featuring Steve Jobs

(Steve Jobs) “Good morning…”. James Brown… So thank you. Thank you for coming. We’re going to make some history together today. So welcome to MacWorld. You know, it was just a year ago that I was up here and announced that we were going to switch to Intel processors. A huge, heart transplant to Intel microprocessors. I said that we would do it over the coming 12 months. We did it in 7 months. And it’s been the smoothest and most successful transition that we’ve ever seen in the history of our industry. And it was because we made a beautiful, seamless version of OS 10 for Intel processors. And our team created Rosetta software which lets you run PowerPC apps on top of OS 10 on Intel processors. Our hardware team got to cranking out a new Mac with Intel processors every month. And we completed this transition in 7 months. …We didn’t do this alone… We did this with the help of a lot of folks. Our new colleagues at Intel. Really helped us. Thank you very much. Our third party developers, rapidly moving their apps to Universal versions… to run at native speeds on Intel processors. Thank you very much. And most of all, our users… the minute you saw these lightning-fast machines, you bought ‘em. And we’ve had an extremely successful year, and I want to thank our users very much.

(Switchers) Now, as many of you know, our retail stores have for a while, been selling over half their Macs, to people who’ve never owned a Mac before. Switchers. I’m pleased to report, that now, in the US, Macs selling through all channels, over half of them, are selling to people who have never owned a Mac before. It’s not just limited to our retail stores anymore. Half the Macs we’re selling in the US. We are picking up lots and lots of new members of the Mac family, and we couldn’t be happier. As a matter of fact, here’s one that might be coming on soon… Jim Allchin of Microsoft was quoted recently that if he didn’t work at Microsoft he would buy a Mac, and he’s retiring soon, so I’ve alerted our Seattle stores to keep an eye out for him. Give him really good service. You know, Vista’s coming out, and our ads with the Mac guy with the PC guy, we’ve made a little ad for Vista, and I’d like to show it to you know, if you’d like to see it. So let’s go ahead and run it. [Upgrading to Vista "Surgery" PC and Mac guy ad runs]. So, 2007 is going to be a great year for the Mac. But this is all we’re going to talk about the Mac today. We’ll move on to some other things, and over the course of the next several months we’re going to roll out some awesome stuff for the Mac. But for today, we’re going to move on.

(On iPods) So the first thing I’d like to do, is give you an update on our music business. As you know, we’ve got the iPod, best music player in the world. We’ve got the iPod Nanos, brand new models, colours are back, and we’ve got the amazing new iPod Shuffle. The iPod, in addition to being the world’s best MP3 player, has become the world’s most popular video player. And by a large margin. The iPod Nano is the world’s most popular MP3 player, by a wide margin. And the new Shuffle, is the world’s most wearable MP3 player. So we had an incredible lineup for this holiday season. All refreshed and new products.

(iTunes Music Sales) I’d like to tell you some new things about iTunes now, that are pretty exciting. Number 1, we have crossed a major milestone. We have sold over 2 billion songs on iTunes. It’s amazing. Now, there was an article recently that said iTunes sales had slowed dramatically. I don’t know what data their looking at, but this is our data, and what we see is iTunes sales were really up this past year. [Shows graph of 30 mil. songs in 2003, 191 mil. in 2004, 614 mil. in 2005, 1.2 bil. in 2006]. It took us over 3 years to get to a billion songs, we got our 2nd billion in 10 months in 2006. And growing off us a 600 million song base we doubled it in 2006. So we couldn’t be happier with the growth rate of iTunes, and selling 2 billion songs. We are selling over 5 million songs a day. Isn’t that unbelievable? 5 million songs a day. That’s 58 songs every second, of every minute, of every hour, of every day. And the last time we talked to you, we said that we were the 5th largest music reseller in the US. Now all these other guys sell music on CDs, of course, we sell it online. But if you add up all the music that’s sold, we were the 5th largest reseller. Because of the growth of iTunes I am pleased to report that we have now passed Amazon, we sell more music than Amazon, and we are now number 4. And you can guess who our next “target” might be. So that’s an update for music. [Shows slide of list, top to bottom: Wallmart, Best Buy, Target, iTunes, Amazon].

(iTunes TV and Movies) Now I want to talk about TV shows. We’ve got awesome TV shows on iTunes. As a matter of fact we have over 350 TV shows you can buy episodes from in iTunes. And I’m very pleased to report that we have sold now 50 million TV shows on iTunes. Isn’t that incredible? Now, let me go on to movies. When we started with television shows, the pioneering partner we had was the Walt Disney company. They decided to throw in with us and sell TV shows, and boy did it work. When we decided to sell movies, they were right there with us again as our pioneering partner to sell movies. And I am really pleased to announce that in the first four months of selling movies, we have sold 1.3 million movies on iTunes. Which I think has exceeded all our expectations. And today, we have a new partner, joining the Walt Disney company to sell movies on iTunes, and that is Paramount. Paramount is going to be selling movies on iTunes, and we’re thrilled because they have some awesome movies. Let me just show you a few of the titles that are going up as we speak… all six Star Trek movies… So we are going to moving up from the 100 movies we’ve offered so far to over 250 movies now offered on iTunes, these are getting up as fast as we can over the next week or so, and we hope to be adding even more movies as other studios throw in with us, as [sic] 2006 rolls on. And that’s an update on iTunes.

(On Zune And Marketshare) Now as I said, we had a very strong lineup of music players for this holiday season. We always have stiff competition. That’s just part of this business. And we had a new competitor this last holiday season. Which was of course, Microsoft’s Zune… So how did they do? Well we don’t have data for December yet, because it’s not out until next week or the week after, I forget. But we have data for November which was their launch month, should’ve been real big. [Shows slide of pie chart as he describes, chart source: "NPD for November 2006"]. And they garnered 2% market share. iPod had 62% market share, and the rest had 36(%). Now again, we don’t have data for December, you know, we went up quite a bit in December, in terms of market share, and we’ll find out how they did. 2% in their launch month. So no matter how you try to spin this, um, what can you say? So that’s an update on how we’re doing in the music business.

(New Ads) And we’ve got a few new ads for iPods. You know, we work with some of the greatest folks to create advertising. And they created this wonderful ad that I’d love to show you know, so let me go ahead and roll it… [Shows new iPod ad (coloured silhouettes on black background]. Woo! Now, just to let you in on our process a little bit, these guys are incredibly creative, they couldn’t stop, and they took the same song, which is an up and coming British pop group, and they took the same dancers and they did some different animation. And they came up with what you’re about to see… [Shows new iPod ad (coloured silhouettes on coloured animated background)]. So, those will be running shortly. And that is an update to our music business.

(AppleTV Update) Now, I’d like to talk about a product we introduced in September, the codename is iTV, we have a new name for it, it’s AppleTV. You should never… you should either go with your codename, like we did with the Mac, or you should pick a real name quite a bit different from your codename. So I’ll probably stumble and call this iTV 5 times today by mistake, I apologise, it’s AppleTV. And AppleTV is a way to enjoy your media on your big screen TV. So let’s backtrack and talk about what we did when we previewed this in September. You can buy great content on the iTunes Music Store. Movies, TV shows, and music of course. And you can download it on your computer, either PC or Mac, I’m going to use a Mac here, and you can put other content on your computer from other places of course, and you can put that content on your iPod, right? Now, you can go out and buy a widescreen TV, hook up an AppleTV to it, and wirelessly transmit that content from your PC to your AppleTV, and watch it on your big screen TV. It’s that simple. Right, it’s that simple. So, this is it, let’s take a look around the back at the connectors, refresh ourselves, we have a power connector, USB2 and Ethernet, we have Wi-Fi wireless networking built in, and then we have ways to get video out. HDMI connector which is digital audio and video, or component video, and analog and digital audio. Right, all at the back. Most people however, will just use these three [Slide shows Power, HDMI and Wi-Fi labels]. They’ll plug it in, there’s no power brick necessary, and they’ll hook up an HDMI cable to their widescreen TV, and they’ll use wireless networking to get their content. So it’s really, really easy to use.

And, let me tell you a little more in depth about what this box does. First of all, it delivers up to 720p high-definition video. Right? Number 1. Number 2, it’s got a 40gb hard drive inside of it, so it will store up to 50 hours of video…