Introduction and Transformation:

Steve Jobs kicks off the presentation by setting the stage for an informative session, mentioning that it’s going to be a long show. He speaks about the extensive efforts that have gone into reinventing Apple over the past two years. This transformation has touched all aspects of the business: management, marketing, distribution, and product engineering.

Customer Loyalty and Product Line:

Jobs acknowledges the importance of a loyal customer base that has stuck with Apple through these changes. He declares that as a result of the reinvention, Apple now has the strongest product line in its history. He notes that the company filled out its product matrix last quarter with the release of the iBook.

Record-Breaking Sales:

A major revelation Jobs shares is that Apple sold over 1,350,000 Macintosh computers in the previous quarter. This figure marks a record-breaking performance, as it’s the highest number of Macs sold in any quarter in Apple’s history.

Operations and Engineering:

Jobs credits the company’s operations and engineering teams for the exceptional performance, emphasizing the scale of effort required to achieve this milestone. He indicates that a Mac was sold every six seconds throughout the entire quarter.

Acknowledgment of Community Support:

Jobs wraps up by thanking the Mac community for its unwavering support. He credits them with playing a crucial role in the company’s success, stating that their belief and trust have been instrumental in driving sales of Apple’s new products.

Overall, the segment encapsulates Apple’s successful transformation, record-breaking sales, and community support, all of which make for an optimistic outlook on the company’s future.

Power Mac G4:

Steve Jobs introduces the Power Mac G4 as Apple’s flagship pro desktop, highlighting its G4 chip with a velocity engine. The chip provides supercomputer-level performance on a personal desktop. The Power Mac G4’s design allows easy access to any internal part and comes with a 22-inch LCD display, claimed to be the largest and finest in the market.

Portable Lineup:

Apple’s portable segment, consisting of iBooks and PowerBooks, captured an 11% market share in the last quarter. The iBook, especially, was a hit, becoming the top-selling consumer portable in the U.S. for two consecutive months. Market research indicates that 28% of iMac buyers are new to Apple, and more than half of the iBooks sold were the first portable computers in their households.

Consumer Engagement:

Jobs reveals important consumer statistics for Apple’s portable line. About 90% of iBook owners use the internet, and 70% have made online purchases. The numbers suggest a high level of consumer engagement and tech-savviness among Apple users.

iMac Series:

Jobs discusses the new iMac’s performance, design options, and market reception. He mentions that the special edition iMac was particularly popular and reveals statistics showing 44% of iMac buyers are new Apple customers. Also, 93% of iMac owners go online, and 62% of those were online the first day of purchasing the product.

Upcoming Software and Peripherals:

Apple plans to introduce new software, including IBM’s VIA Voice for voice recognition and a new version of AppleWorks with over 100 features. Apple also announces Microsoft’s IE5 browser and highlights various new peripheral products like a USB microscope, 100 GB portable RAID drive, and a new Canon scanner.

AirPort Wireless Networking:

Jobs wraps up by emphasizing the strategic importance of Apple’s AirPort technology. With a throughput of 11 megabits per second, the AirPort makes every Apple computer wireless-ready and supports up to 10 devices per base station. Apple aims to lead the wireless networking revolution with this product.

Overall, Jobs emphasizes Apple’s strong product lineup, successful market positioning, and innovative technologies aimed at keeping the company at the forefront of the industry.

Introduction of Desktop Movies:

Steve Jobs introduces the concept of “desktop movies,” emphasizing its strategic importance following its rollout last quarter with new iMacs. He identifies desktop movies as a “killer app” with enormous potential.

Firewire Technology:

Jobs credits the in-built Firewire technology in the new iMacs for making desktop movies possible. This technology is compatible with all digital camcorders, allowing easy connection between devices without the need for additional cards.

iMovie and QuickTime:

QuickTime serves as the foundational software, enabling the in-house development of iMovie. Jobs describes iMovie as a “breakthrough application,” making movie creation extremely accessible. Users can create their own desktop movies in just five to ten minutes.

Adoption Rates:

He shares research indicating that 10% of iMac DV owners have already created an iMovie, despite the technology being only 90 days old. When considering people planning to make an iMovie, this statistic rises to one in three iMac DV owners.

Marketing Strategy:

Jobs transitions into the marketing aspect, mentioning Apple’s “Think Different” campaign, which honors people who have changed the world. Over the next six months, the campaign will focus on film directors, connecting directly to the desktop movies initiative.

Iconic Film Directors in Marketing:

Steve Jobs announces that Apple’s “Think Different” campaign will now feature iconic film directors like Charles Chaplin, Frank Capra, Stanley Kubrick, and Francis Coppola. These directors will appear in print ads and billboards nationwide.

TV Commercials for iMovie:

Jobs previews three television commercials designed to explain the ease and accessibility of iMovie and desktop movie creation. The commercials aim to portray the product as user-friendly and fun, reinforcing the message that anyone can be a filmmaker.

Interactive Feedback Session:

Jobs employs an “applause-o-meter” to gauge the audience’s reaction to the commercials. He states that this segment of the presentation is crucial as it will help Apple decide where to allocate a significant amount of their marketing budget.

Message in Commercials:

The commercials themselves revolve around the ease of creating home movies. They outline three simple steps: having fun, connecting a digital camcorder, and then having more fun while editing. The message is that with an iMac, the user already has access to all the elements needed to become a movie director.

Engaging the Audience:

The session concludes with Jobs thanking the audience for their feedback. He emphasizes that the data collected will be very helpful in making budgetary decisions for their marketing campaign.

Reinventing Apple:

Steve Jobs starts by highlighting that Apple has been successfully reinvented in the last two years. With strong product lines, the company is ready to expand its focus beyond just making computers, referred to as “the box.”

Unveiling Internet Strategy:

Jobs announces that he will talk about Apple’s Internet strategy, a plan that has been two years in the making. He mentions that Apple has already built up four key Internet assets, starting with QuickTime.

Success of QuickTime:

QuickTime, according to Jobs, has been a tremendous success for Apple. Launched seven months prior, QuickTime 4 had over 25 million downloads and gained a 33% market share in the media player industry by November, surpassing Microsoft’s Media Player. This data comes from Nielsen’s net ratings, lending credence to the achievement.

Demographics and Monetization:

Jobs also shares that QuickTime is particularly popular among young users under 21, a demographic that frequently makes online purchases like music CDs. When questioned about monetization, Jobs explains that Apple sells ‘pro’ versions of QuickTime for $29.99 and that these have been selling well.

Strategic Partnership with Akamai:

Faced with the technical limitations of broadcasting video content over long distances on the Internet, Apple decided to partner with a small company called Akamai. Apple invested $12.5 million in Akamai, a stake that later soared to a value of over a billion dollars. Jobs concludes by stating that because of this, Apple has made more profits from Internet streaming than any other company.

This segment reveals Steve Jobs’ vision for expanding Apple into new territories, capitalizing on the Internet’s possibilities, and strategically leveraging partnerships to solve technological and financial challenges.

Core Operating System:

Steve Jobs discusses the second key Internet asset of Apple: its core operating system. He mentions the inclusion of Sherlock 2, a powerful Internet search engine integrated into the OS. The system also now supports multiple users, allowing households with parents and children to create separate environments, enhancing privacy and personalization.

Internet Keychain:

One notable feature is the “keychain,” a digital repository where users can save all their Internet passwords. Once logged into the keychain with a single login, all the passwords are automatically entered into relevant platforms, reducing the hassle of remembering multiple credentials. The OS also includes an auto-updating feature, ensuring it stays up-to-date.

Success Metrics:

Jobs highlights that their new OS has been well-received, selling over 1 million copies in the last 60 days. He implies that the updated operating system is crucial to Apple’s overall Internet strategy.

Apple.com and the Apple Store:

The third key asset Jobs discusses is Apple’s website, which receives 1.5 million daily visitors and 9.5 million weekly visitors. The fourth asset is the Apple Online Store, which opened in 1997 and is now generating an annualized sales rate of over $1 billion. The entire online store is built using Apple’s technology.

User Interface Changes and Community Involvement:

Apple.com is being revamped with a new tab bar to direct visitors more efficiently. Jobs mentions the introduction of ‘iReview,’ a platform for reviewing and ranking websites. It aims to become a trusted advisor for Internet users, and allows the community to append their own reviews.

iCards Service:

The last feature Jobs mentions is ‘iCards,’ an Internet greeting card service. It aims to differentiate itself from competitors by offering higher quality, both in terms of aesthetics and user experience.

Jobs’s presentation covers the significant upgrades Apple is making in its internet services and products, emphasizing the importance of community involvement and providing trusted, quality experiences for users.

Introduction to iCards and iReview:

Steve Jobs presents two new services, iCards and iReview. For iCards, he describes how Apple has licensed high-quality artwork and created software that allows users to type messages, which are then integrated into the cards and sent via email.

Features of iCards:

iCards are unique in that they appear directly within the recipient’s email, not as an attachment or a link to a website. This user-friendly approach aims to simplify and enhance the experience of sending digital greeting cards.

Overview of New Apple Website:

Jobs also showcases the revamped apple.com, highlighting its ease of navigation, with dedicated sections for the store, QuickTime, and support. The website includes numerous subheads and a submenu to help users find what they are looking for.

iReview Platform:

iReview serves as a hub for reviews across 15 different categories such as movies, news, and sports. These reviews are aggregated and sorted by various metrics, including popularity. This section is constantly updated to reflect what viewers are most interested in.

User Interactivity:

In iReview, users can go into specific categories to see all reviews related to that topic. Jobs also shows the process of submitting a review, detailing how users can rate and comment on different websites, making the platform interactive and continually updated.

Target Audience:

Jobs states that iReview is intended to benefit both beginners and frequent internet users alike. He believes it will be a valuable resource for people looking to find reliable information on various topics.

Candid Reviews:

Jobs emphasizes that iReview will include both positive and negative reviews to provide a more balanced and realistic overview of the quality of websites. He uses the example of a negative review for a gaming information platform, stating that they are “very blunt” in their assessments.

Overall, Jobs positions both iCards and iReview as unique, user-focused platforms aimed at enhancing the online experience for a wide array of users.

Introducing iCards:

Steve Jobs unveils iCards, describing it as the “Apple of greeting cards.” He showcases different categories of greeting cards like birthdays, fine arts, and get well cards. The platform allows for easy customization and sending of these cards.

Technical Hiccups:

Jobs encounters multiple technical difficulties while trying to demo the iCards service. He has trouble navigating and even has to refresh the page multiple times. Despite the glitches, he notes that there are “a few little bugs to work out.”

iTools: A Revolutionary Concept:

Jobs introduces iTools as a revolutionary internet service, explaining its potential to offer a seamless experience between server and client because Apple controls both ends. This control allows Apple to offer services “far beyond what a browser can do.”

Unique Selling Proposition:

Jobs emphasizes that the unique advantage of iTools is that it is specifically designed for Mac users. He also asserts that it takes “unfair advantage” of the Mac OS to deliver services that others cannot offer.

Underlying Technology:

Jobs mentions that all of these features are possible because of OS 9, stating that it has the necessary technology to make iTools a reality. He teases the introduction of the first four iTools services, although he does not specify what they are in this segment.

The overall tone suggests enthusiasm for these new services, despite the technical setbacks experienced during the demonstration.

Introduction of KidSafe:

Steve Jobs presents KidSafe, a revolutionary way to protect children while they are online. This approach is designed to address significant shortcomings in the existing strategies of internet filtering.

Limitations of Traditional Filtering:

Jobs points out that current filtering strategies are outdated and ineffective. These filters are designed to block out websites that are inappropriate for children. However, the rapidly evolving nature of the internet makes it impossible for these filters to keep up, leaving numerous unsafe sites accessible.

KidSafe’s Unique Methodology:

Unlike traditional filters that focus on blocking what children should not see, KidSafe proposes to specify what they can see. It has a database of over 50,000 websites approved for children by certified teachers and librarians in the U.S. and Canada.

Technical Implementation:

KidSafe works by integrating a module into the Mac OS 9 operating system. This module cross-checks each site request against a continually updated database on Apple’s internet servers. If the site is safe, access is granted; otherwise, the user receives a message stating that access is denied.

Parental Controls and Multi-User Features:

KidSafe can be customized to disable chat rooms, emails, and downloads that could be harmful. It also integrates with Mac OS 9’s multi-user features, allowing parents to toggle KidSafe on or off depending on who is using the computer.

Importance and Future Expansion:

Jobs emphasizes the scalability of the KidSafe approach. The database is updated monthly with 10,000 new safe sites, each approved by certified educators. The service is projected as a vital tool for ensuring online safety for children.

Mac.com: An Exclusive Email Service:

Steve Jobs introduces Mac.com as Apple’s own email service exclusively for Macintosh users. This service is promised to be reliable, private, and secure because it is directly run by Apple. It is also designed to be compatible with popular POP email clients like Outlook Express and Netscape Navigator.

Features of Mac.com:

Mac.com comes with convenient features such as auto-reply for when users are on vacation and mail forwarding to other email addresses. These configurations can be easily set up on a webpage interface. Jobs humorously notes a “gold rush” for email names, implying high demand for this new service.

iDisk: Revolutionary Internet Storage:

Jobs unveils iDisk, described as a profound innovation, providing each user with 20 megabytes of internet storage securely hosted on Apple’s servers. Unlike conventional cloud storage, iDisk aims to make file sharing and transfer exceptionally simple.

Seamless User Experience with iDisk:

Jobs emphasizes the ease-of-use of iDisk, stating that its icon appears on the Mac desktop at the click of a button. Files can be dragged and dropped into folders within iDisk, which are automatically transferred to Apple’s secure servers. This functionality allows for a simple, seamless transfer of files between work and home computers, as well as public sharing.

iDisk’s Compatibility with Other Services:

iDisk is designed to work with other iTools, such as iCards. Users can drag their personal photos into iDisk, and iCards can access these images to create personalized greeting cards. Jobs concludes by stating that iDisk is as easy to use as a folder on your Mac desktop and predicts it will be a significant development.

Interconnected iTools:

Both Mac.com and iDisk exemplify Apple’s strategy to create an interconnected ecosystem of services, aiming to enhance user experience and retain customer loyalty. The services are not just standalone features but are integrated to work seamlessly with each other.

HomePage Introduction:

Steve Jobs introduces HomePage as a tool that simplifies the process of creating personal websites. Recognizing that existing tools from companies like Macromedia and Adobe are too complicated for many users, HomePage aims to allow people to build a website in less than 10 minutes.

Hosting and Features:

Jobs states that websites created through HomePage will be hosted on Apple’s internet servers. Users can incorporate a variety of content, including electronic photo albums, iMovies, resumes, and birth announcements.

iDisc Integration:

HomePage is designed to work in conjunction with iDisc, another Apple service. iDisc enables users to import content such as photos and iMovies directly into their HomePage website. Content can simply be dragged into designated folders on iDisc, and HomePage will automatically locate and display them.

Website Accessibility:

Jobs emphasizes the 24/7 availability of the HomePage websites, hosted on Apple’s servers, allowing global access. He also mentions that users can update their sites as frequently as they want.

KidSafe Web Filtering:

Steve Jobs transitions to discussing KidSafe, a web filtering tool that restricts content available to children. Jobs notes that KidSafe doesn’t just indiscriminately block words, like “sex,” but filters based on the context, allowing educational material to pass through.

Revolutionary iDisk:

iDisk is presented as a revolutionary tool that allows users to store files, including documents, pictures, and movies, securely on Apple’s internet servers. Jobs demonstrates the ease with which files can be dragged and dropped into iDisk folders, emphasizing its user-friendly nature.

Inter-user Sharing:

With iDisk, users can also access public folders of other users if they know the login name, providing a means for selective file sharing. Jobs offers a demonstration by accessing Phil’s public folder.

Steve Jobs presents these tools as part of Apple’s larger ecosystem, aiming to make life easier for users through seamless integration and user-friendly design.

Accessibility of Shared Content:

Steve Jobs highlights the ease of accessing shared content through a product that loads data from Apple’s internet server. This involves the user being able to effortlessly view photos and QuickTime streaming movies from another user’s public folder. The point here is to underscore the simplicity and accessibility of Apple’s sharing features.

iCards and Personalization:

Jobs briefly mentions the iCards service. Although he is unable to access it during the presentation, he suggests that users can take photos they have stored and create their own personalized cards with them. This points to the customizability and user-oriented nature of Apple’s services.

Building a Website with Homepage:

Jobs introduces Homepage as the fourth iTool, emphasizing its ease of use in website creation. Within a few simple steps, users can make a photo album-based website. It fetches pictures from the user’s iDisc folder and creates a webpage, showcasing how Apple is trying to make web publishing accessible to everyone.

Adding Dynamic Content:

He further explains how to add other types of content to the website, such as an iMovie theater. This again is done with a few simple clicks, demonstrating Apple’s commitment to making complex tasks like website building and video streaming user-friendly.

Streamlined Publishing:

All the changes made to the website are instantly published on Apple’s web server, making it accessible worldwide. Jobs notes that these features are not only easy to use but also easy to edit, promoting user flexibility.

Introduction of iTools Suite:

Jobs wraps up by naming all the iTools that are making their debut. These include Homepage Builder, iDisc, KidSafe, and Mac.com. He suggests that these tools are set to be a game-changer, emphasizing the overall goal of making complex digital tasks straightforward for the everyday user.

Introduction of iTools:

Steve Jobs announces iTools, a new service requiring OS 9, to enhance user experience. iReview and iCards, however, are available to everyone irrespective of the OS they are using. These tools are free to use and can be accessed via www.apple.com.

Monetization Concerns:

Jobs addresses the concern of monetizing these free services. He reveals that Apple has 25 million customers and spends significantly on marketing. He suggests that by offering excellent services like iTools, they can monetize their large customer base.

Internet Access Partnership:

Jobs discusses the importance of providing customers with the best internet access and ponders whether Apple should handle this in-house or collaborate with a partner. After weighing the options, Apple decides to partner for this service to focus its energies on improving the user setup experience and web experience.

Picking the Right ISP:

Apple had three primary choices for Internet Service Providers (ISPs): America Online, Earthlink, and Microsoft Network. After thorough examination, Earthlink is chosen as the best partner. Earthlink has been working with Apple for two years and has won numerous awards for their service.

Details of EarthLink Partnership:

This partnership is a multi-year deal where Earthlink will be the default ISP on all Apple computers. Jobs notes that the collaboration will make internet access seamless for Mac users, and Apple will profit from every new Earthlink Mac customer. Users are encouraged to switch to Earthlink to further support Apple’s R&D efforts.

Strategic Investment:

Jobs announces that Apple will make a significant investment in Earthlink, amounting to $200 million, citing strategic and financial reasons. This investment indicates that the partnership is not merely transactional but strategically important for both companies.

Introduction of Gary Betty:

Steve Jobs introduces Gary Betty, the CEO of EarthLink, stating he will be a significant part of Apple’s future. This sets the stage for a strategic partnership between Apple and EarthLink, solidifying their collaborative plans.

EarthLink’s Commitment to Mac:

Gary Betty explains EarthLink’s origins in 1984 with a software product for the Mac. He emphasizes that Macintosh has always been special to EarthLink. The company even has specialized support for the Mac environment, underscoring EarthLink’s commitment to providing top-tier service to Mac users.

Strategic Importance of Partnership:

Betty elaborates on why the partnership with Apple is a “big deal” for EarthLink. The scale that Apple provides will significantly contribute to EarthLink’s future growth and success. He also expresses hope that Apple’s investment will yield high returns, similar to other successful ventures.

Apple’s Financial Benefits:

Steve Jobs reiterates that Apple will profit from every new EarthLink Mac customer. He optimistically predicts that this strategy will make Apple one of the ten most profitable internet companies in the coming years. The profits will be invested back into developing better products.

Expanding Apple’s Internet Assets:

Jobs outlines Apple’s ambition to extend beyond just hardware (“the box”). He mentions foundation internet assets and new areas like iReview, iTools, and iCards. These offerings take advantage of Apple’s control over its operating system to provide unique internet services to Mac users.

Teaser for Mac OS X:

Jobs ends by teasing the announcement of Mac OS X, suggesting that Apple’s innovation will not be limited to partnerships and internet services, but will also span operating systems. This points to Apple’s broader vision of being a versatile player in the technology ecosystem.

Single OS Strategy:

Steve Jobs starts by emphasizing Apple’s commitment to a single OS strategy. Unlike competitors who may maintain multiple operating systems, Apple aims for unification under Mac OS X. This approach is crucial for the company’s focus and development resources.

State-of-the-Art Plumbing:

Jobs underscores the need for Mac OS X to possess state-of-the-art “plumbing,” referring to the operating system’s kernel and networking capabilities. He argues that top-quality infrastructure is essential for delivering a superior operating system experience.

Importance of Graphics:

Graphics are highlighted as a critical aspect. Jobs points out that nearly all applications, whether professional design software or everyday apps, depend on strong graphical capabilities. The aim is to provide “killer graphics” for enhanced user experience.

Internet-Centric Design:

Jobs states that Mac OS X is designed with the internet in mind from its inception. The idea is to make the most of constant internet connectivity, adhering to internet standards throughout the operating system to benefit users.

Migration Strategy:

Acknowledging the existing 25 million users on Apple’s current OS, Jobs emphasizes the need for a smooth migration to Mac OS X. This underpins the aim to make it the next great personal computer operating system.

Rollout Timeline:

The rollout of Mac OS X is described as a 12-month process. Jobs outlines key milestones, including developer betas, a final public release in the summer, and pre-loading on all new machines a year from the announcement. This phased approach aims for a seamless transition and adoption.

Darwin Kernel:

Steve Jobs starts with the foundation of Mac OS X: the Darwin kernel. He describes Darwin as a “super modern kernel” featuring protected memory, preemptive multitasking, and modern networking. Importantly, Darwin is very similar to Linux, incorporating free BSD Unix and a mock microkernel. It’s also open source, a factor that encourages community contributions to its development.

Killer Graphics Layer:

The next layer above Darwin is the graphics layer, which is divided into three components: 2D (Quartz), 3D (OpenGL), and media (QuickTime). All three are integrated seamlessly into the OS. This layer plays a significant role in the overall user experience and application performance.

Quartz and PDF Rendering:

The 2D component, Quartz, is based on PDF technology. PDF rendering is done on the fly, allowing for quick imaging of PDF documents. The technology provides anti-aliasing and compositing features, all built into the OS. This is notable because it means all applications can leverage these advanced graphic capabilities without additional development effort.

OpenGL and 3D Support:

OpenGL, the 3D standard, is highlighted for its industry-wide support and advancement. It is fully supported by hardware and integrated into the core of the OS. This enables more robust 3D graphics capabilities for developers and users alike.

QuickTime for Media:

QuickTime is the media component that supports digital video and audio as well as live internet streaming. It is integrated into the core of the OS and holds a 33% market share as an internet standard. This pre-installed capability could influence multimedia applications and streaming services.

APIs as the Next Layer:

Jobs ends the segment by mentioning that the next layer above the graphics is the Application Programming Interfaces (APIs), though he doesn’t go into details in this part of the presentation. APIs would likely provide the bridge for software developers to effectively leverage the underlying OS features.

Three APIs for Mac OS X:

Steve Jobs describes the architecture of Mac OS X, focusing on its three core APIs: Classic, Carbon, and Cocoa. Classic is designed for running Mac OS 9 applications without modification. Although these apps won’t leverage Mac OS X’s new features, they function well. Carbonized apps are the next step up, requiring one to three months of work by developers to become fully compatible with OS X, unlocking its new features. Cocoa, the third API, is different altogether. It’s an object-oriented API allowing for applications to be written in languages like Java.

Migrating Apps:

The APIs offer varying levels of compatibility and feature access, serving as a migration path for developers. Classic for existing Mac OS 9 apps, Carbon for easy transition to Mac OS X, and Cocoa for building new applications with advanced capabilities. This approach makes it easier for developers to adapt their software for the new OS.

Introduction of Aqua:

Jobs reveals a significant update: Apple has secretly been working on a new user interface called Aqua for the past 18 months. Aqua aims to bring a revolutionary look and feel, capturing Apple’s legacy while being highly forward-looking. The design is so attractive that Jobs jokes people would “want to lick it.”

User Interface Details:

Aqua’s interface details range from the look of buttons, checkboxes, and radio buttons to more complex dynamics like window shadows. Great attention is given to both aesthetics and functionality. For instance, the buttons at the top of a window are color-coded to indicate close, minimize, and maximize, with additional visual cues provided by subtle changes in shading and transparency.

Goals for Aqua:

The dual purpose of Aqua is to offer a powerful interface for pro users while being incredibly accessible to those new to computing. Jobs draws a parallel with Pixar films, aiming to create a product that appeals to a wide range of users. Aqua incorporates ‘fit and finish’ aspects—fine details that make the interface feel polished and engaging.

Technical Aspects:

Aqua takes advantage of the computing power available to deliver dynamic interface elements. For example, the button to be activated by hitting return gently dims and brightens, eliminating the need for more obtrusive visual cues. It also allows real-time dragging and resizing of window contents, along with proportional scroll bars that only appear when necessary.

This segment from Steve Jobs unveils the architectural and design strides taken with Mac OS X, making it adaptable for developers and captivating for users.

Addressing Window Management:

Steve Jobs presents a solution for a common problem in Mac OS: managing numerous windows and panels. He notes that dealing with these elements can make the user feel like a “janitor” and aims to simplify this process.

Streamlined Save Panel:

He introduces a new “Save Panel” feature. In previous versions, Save Panels were modal and prevented users from interacting with other apps. Even when they were not modal, they often became confusing if the user navigated away and then returned. The newly-designed Save Panel solves these problems by being both non-modal and more intuitive to manage.

Adaptive and Flexible Interface:

Steve Jobs discusses how the new Save Panel adapts to different window sizes and positions. If a window is small or pushed against the screen edge, the Save Panel adjusts itself accordingly. This feature shows the attention to detail in user interface design.

Intuitive Saving Options:

The revamped Save Panel features a simplified design, including a drop-down list of favorite and recent locations to save files. For more complex needs, users can open a full browser to select their save location, making the process more versatile yet still straightforward.

Teaser for More to Come:

Steve Jobs ends the segment by suggesting that these improvements are just the beginning, indicating that there are more user-friendly updates in store.

Overall, the focus is on enhancing user experience by making it simpler and more intuitive to manage windows and save files in Mac OS.

Menu Innovations:

Steve Jobs explains the design of Mac’s menus, emphasizing their simplicity and efficiency. He believes that Mac’s menus are the best in the world and have set a standard. Jobs mentions that 25 million people already know how to use them. One new feature he highlights is that the menus are semi-transparent, adding a sleek design touch, while maintaining usability.

Finder’s Evolution:

Steve Jobs addresses concerns about changing the Finder, a key part of Mac’s interface. He says that while the Mac Finder was brilliant, they are enhancing it for greater utility. The new Finder offers different modes: icon view, list view, and a new browser view. This allows for a tree-style view of all files and locations, facilitating easier navigation.

Usability Features:

Jobs also shows off a search field for quickly finding files. He presents a ‘Back’ button, akin to web browsers, for easy navigation. The Finder also has a preview mode for documents and even QuickTime movies, allowing users to view file content without opening them.

Shortcut Buttons:

In addition to traditional navigation tools, Jobs introduces shortcut buttons placed within the Finder. These include buttons for ‘Computer’, ‘Home’, ‘Apps’, ‘Docs’, ‘Favorites’, and ‘People’. Each serves as a quick jump to frequently accessed places or functions, simplifying user navigation.

Multi-User & Network Features:

The new Finder is designed with multiple users and network environments in mind. Jobs describes how the ‘Home’ button can lead to different user home directories, depending on how the Mac is set up. The ‘People’ button makes it easier to find and access other people’s directories on a network, given the right permissions.

Concluding Remarks:

Jobs sums up the new Finder as offering far greater power to professional users while being easier to use for beginners. He feels that the new design elements and features raise the standard for what users can expect from personal computers.

Three Key APIs:

Steve Jobs begins by highlighting three different APIs that operate on Mac OS 10. These are Classic, Carbon, and Coco. Classic allows existing Mac OS 9 apps to run without any modifications. Carbon enables developers to update their existing apps efficiently to be compatible with Mac OS 10. Coco is an advanced object-oriented API that dramatically shortens the app development process.

Classic API in Action:

Jobs demonstrates the Classic API by running a Microsoft Excel spreadsheet, an app designed for Mac OS 9. The application works seamlessly but does not inherit Mac OS 10’s new user interface features. The purpose is to show that older applications can run without modification, but with the trade-off of not leveraging the new UI advantages.

Carbon API and Its Capabilities:

To demonstrate the Carbon API, Jobs opens Internet Explorer 5, an app that has been “carbonized” to run on both Mac OS 9 and Mac OS 10. Interestingly, the company that authored the app had never seen Mac OS 10’s new user interface. Nonetheless, Internet Explorer 5 inherits the new UI features such as updated scroll bars, window bars, and shadowing when running on Mac OS 10. This shows that Carbon allows developers to easily adapt their apps to the new system while gaining its features.

The segment is an insightful overview of how Mac OS 10 aims to offer compatibility and ease of transition for both developers and users through its various APIs.

Compatibility and Interface:

Steve Jobs showcases the seamless compatibility of new control elements within MacOS X. Internet Explorer, a “carbonized app,” runs smoothly on the platform, highlighting that Microsoft has not yet seen this user interface, thus showing how compatible it is.

Email Client Features:

Jobs argues that the most used application on the internet is not a browser but email. He introduces a built-in MacOS X email client that supports full POP and IMAP. The client offers inline imaging for attachments and ‘smart addressing,’ which auto-completes email addresses.

Font Management:

He also highlights system-wide font management through a new font panel. Fonts can be organized into collections, and a ‘Buy Fonts’ feature is integrated to directly purchase and download new fonts.

Mailbox Functionality:

Jobs explains that the email client allows easy management of multiple mailboxes. Items can be simply dragged and dropped into different mailboxes.

Stability and Performance:

Jobs demonstrates the ‘Bomb App,’ an application designed to crash the system to show that Mac OS X is resilient to system failures. The app does not crash the system, emphasizing the robustness of MacOS X.

Graphics Capabilities:

The graphics engine, named Quartz, is PDF-based and capable of real-time resizing, rotation, and shadow effects. It also supports full anti-aliasing and transparency, allowing for rich graphical experiences.

Real-world Applications:

Jobs briefly mentions the presence of other applications like QuickTime and even teases the audience with a trailer for Mission Impossible 2. He concludes by showcasing how Quartz’s graphics capabilities can make applications like Toy Story 2 come alive on the screen.

This presentation segment by Steve Jobs serves as a comprehensive overview of MacOS X’s capabilities, from compatibility to advanced features, designed to enhance user experience and system performance.

Introduction of 3D Graphics on Mac OS X:

Steve Jobs introduces the use of 3D graphics on Mac OS X, specifically highlighting the use of OpenGL hardware acceleration. He announces that Quake III, a popular game, has been successfully ported to Mac OS X.

Phil Schiller’s Role:

Phil Schiller, Apple’s Vice President of Worldwide Product Marketing, joins Steve Jobs on stage to demonstrate the game. Schiller expresses his excitement about playing games on Mac OS X, hinting at the fun aspect of his job.

Significance of OpenGL:

Schiller emphasizes the importance of OpenGL, which is integrated into the core of Mac OS X. He describes it as high-performance and powerful, predicting that Mac OS X will become a great gaming platform.

Demonstration of Quake III:

Phil sets up to demonstrate Quake III, detailing that it’s the first game ever shown on Mac OS X. He discusses some of the technical aspects like loading graphics maps, sound files, characters, and weapons. The demonstration aims to showcase Mac OS X’s capabilities rather than the game’s violent aspects.

User Experience Focus:

The demonstration is tailored to show the performance and capabilities of Mac OS X as a gaming platform. Phil mentions that his keyboard is set up with his favorite Quake settings, emphasizing the user-customizable aspects of the experience.

Invitation for Post-Show Demonstration:

Phil adds that he would be happy to provide a more detailed, “blood and guts” demonstration after the main presentation, suggesting that the current demo is just a glimpse of what the platform can handle.

Failed Demo and Transition:

Steve Jobs acknowledges a failed demonstration of Quake III due to technical difficulties but moves on smoothly to present another feature of Mac OS X.

The Organizing Principle: The Desktop and The Dock:

Steve Jobs discusses the evolution of the desktop as an organizing principle for computing. He explains how multitasking and increasing complexity have created the need for an enhanced organizational system. Jobs introduces “the Dock” as that next step in organizing work on Mac OS X.

Dock’s Core Functionality:

Jobs shows off the Dock, which sits at the bottom of the screen and remains centered. Items can be dragged into the Dock for easy access. It dynamically resizes based on the number of items added.

Advanced Dock Features:

The Dock has advanced features like window minimization with a special “genie effect,” and magnification for easier access to smaller icons. The Dock can hold all sorts of items, from websites to applications, and can be customized for size and arrangement.

Adaptive and User-Friendly:

Jobs demonstrates how the Dock shrinks and expands to accommodate new items. The Dock also has a “magnification” feature, allowing for dynamic resizing of icons as the cursor hovers over them. These aspects make the Dock both flexible and user-friendly.

Final Demonstrations and Closing:

Jobs concludes by showing that the Dock can be hidden if a user prefers, it can hold up to 128 items, and can be customized to fit individual needs. He also hints at future enhancements, like being able to watch minimized QuickTime movies directly from the Dock.

The segment serves as a comprehensive introduction and demonstration of the Dock, highlighting its role in making Mac OS X a more organized and user-friendly operating system.

Introduction of Mac OS X:

Steve Jobs discusses the next-generation Macintosh operating system, Mac OS X, as the foundation for the next decade of Mac computing. He expresses that the operating system has already gained commitments from over a hundred top developers, even before revealing the new user interface.

Single Window Mode:

Steve introduces a feature called “single window mode.” Aimed at both beginners and professionals, this feature is designed to minimize screen clutter and simplify workflow. When activated, all windows other than the active one are minimized. When another window is clicked, the two switch places automatically. The feature can be turned on or off, providing flexibility to users.

Managing Complexity:

Addressing the need for an efficient way to manage multiple applications and files, Steve talks about how computing has evolved. As computer usage has become increasingly complicated with multiple windows and tasks, there has been a need for a new organizational principle.

Desktop Customization:

In the demonstration, Steve shows how users can change the size of icons on their desktop. This feature allows for further customization of the user interface, making it adaptable to individual needs.

Excitement for Developer Engagement:

Steve mentions the enthusiasm within the company about Mac OS X, highlighting that over a hundred of the top developers are already committed to the platform. He notes that these developers had committed without seeing the new user interface, emphasizing the existing trust and excitement around the operating system.

The segment serves as a brief, yet informative introduction to Mac OS X, showcasing features designed to simplify and enhance user experience while indicating strong developer support for the platform.

Adobe’s Commitment:

Bruce Chisholm, the Executive Vice President of Adobe, praised Mac OS X and credited Apple for Adobe’s successful year, surpassing the billion-dollar mark. He stated that Adobe will optimize its applications for Mac OS X and aims to have key apps “carbonized” by its launch.

Microsoft’s Strong Support:

Kevin Brown from Microsoft declared that the company fully supports Mac OS X. Microsoft’s Mac business unit has had its best year, with over 2 million downloads of Internet Explorer 4.5. Brown announced Microsoft’s intention to launch Internet Explorer 5 and Outlook Express 5 for Mac OS X, along with a new version of Office.

Positive Reactions and Future Collaborations:

Steve Jobs mentioned the skepticism when Apple announced its partnership with Microsoft two and a half years ago. He highlighted the good that has come from this partnership, particularly in the development of Mac applications.

Macromedia’s Quick Adaptation:

Rob Burgess from Macromedia was particularly enthused about Mac OS X. Macromedia had successfully ported its popular Flash application to the new system in just a week and a half, emphasizing the ease of adoption. Burgess also praised Apple’s focus on design and promised support for other popular Macromedia applications.

Industry-Wide Anticipation:

Across the board, the speakers conveyed a sense of excitement and optimism about Mac OS X. They mentioned their companies’ commitments to the platform and praised Apple for its innovations. This industry-wide endorsement indicates strong support and a promising future for Mac OS X.

Quark’s Dedication:

The speaker from Quark expressed a long-standing commitment to Apple and particular excitement for OS X. Acknowledging that porting Quark Express to OS X would take more than a week and a half, the speaker emphasized Quark’s dedication to make it compatible with the new operating system. Quark has been an Apple partner since the mid-’80s and plans to continue its support for OS X and beyond.

Id Software’s OpenGL Success:

John Carmack, co-founder of Id, talked about the company’s successful simultaneous development for Mac due to Apple’s support of OpenGL. Carmack praised OS X for combining Unix-like features with Mac’s user-friendliness. He also announced that their next product would be exclusively deployed on OS X, indicating a forward-looking approach.

Palm Computing’s Growth:

Carl Jankowski, the new CEO of Palm Computing, highlighted the company’s rapid growth in its developer community, now numbering 35,000 and growing by 1,000 per week. Jankowski announced Palm’s commitment to the Mac community, stating that most of their development work is done on the Mac platform. Palm looks forward to a long-lasting partnership with Apple, sharing a common philosophy of simplicity and seamless integration.

General Industry Excitement:

Throughout the presentation, there was a common thread of enthusiasm and commitment from various industry leaders. These endorsements suggest that OS X is not only receiving strong support but is also influencing future technology developments across multiple sectors.

Vertical Integration:

Steve Jobs stresses the importance of Apple’s vertical integration, meaning that Apple controls both the hardware and software components of its products. This enables the company to offer a seamless customer experience, a feat Jobs claims no other company can match.

Innovation Through Integration:

The talk highlights how this vertical integration allows Apple to innovate at a faster rate than competitors. Jobs cites examples like the inclusion of USB ports in the original iMac and Apple’s pioneering role in desktop movies to illustrate this point.

Software Importance:

Jobs doesn’t just focus on hardware; he also talks about Apple’s software capabilities. He notes that the company owns the second highest volume operating system in the world and introduces its new operating system, Mac OS X.

Seamless User Experience:

Jobs emphasizes that the magic happens when hardware and software are seamlessly integrated. He cites “iMovie and the new iMacs” as examples of this integration, adding that Apple’s unique position enables it to offer a user experience where the “whole is greater than the sum of its parts.”

Expansion Beyond Hardware:

Jobs mentions that Apple is broadening its focus to include internet-based tools. These ‘iTools’ leverage the company’s control over its operating systems to offer features that other companies can’t.

Recognition and Announcement:

Jobs takes a moment to recognize the hard work of the Apple team and their contributions to the projects he discusses. Finally, he announces that he will officially drop his “interim” CEO title at Apple, signifying his long-term commitment to the company.