[ Music & Cheering ]

[ Music ]

[ Applause & Cheering ]

Good morning.

Good morning.

Good morning.

Thanks to everyone for joining us this morning.

It's been an incredible year.

And tremendously busy already but we've got a few more things

to share with you before we close out the year.

As you saw from the video, we had an amazing reception

to the iPhone 6 and iPhone 6 Plus launch.

The stores were absolutely electrifying with energy.

It was unbelievable.

There was no better place on earth to be.

These phones are the best phones we've had ever created.

And the reviews have been off the charts.

It doesn't get any clearer or any better than this review

from one of the industries preeminent reviewers.

Walt Mossberg said simply,

"It's the best smartphone on the market."

You can't hope for better than that.

[ Applause ]

Now, with great reviews and a great customer response,

it's no wonder that these iPhones have become the fastest

selling iPhones in history.

And the first 30 days, we have set a new high watermark

for the most orders taken and I don't mean by a little,

by a lot, a whole lot.

[ Applause ]

Our rollout around the world is going well.

In fact, by the end of this week we'll be in 32 countries

and just in a few hours from now, we will launch in China

with support for TD-LTE and FDD-LTE, iPhone 6

and 6 Plus customers will have access

to China's fastest networks on all 3 major networks.

This is the very first time we've launched a new iPhone

on all three networks and we're doing it perfectly aligned

to the early stages of China's huge 4G rollout.

We couldn't be more excited about this and I will tell you

that the preorders as you might guess have set a new record.

We can't wait to get started.

With what's going on in China, what's going on here

and the other countries around the world and all of the reviews

and the customer response,

this is our biggest iPhone launch ever.

[ Applause ]

So, that's a quick update on iPhone.

Now, the iPhones also get the benefit

of another major announcement that we made last month

and of course I'm talking about Apple Pay

which is an entirely new way to pay for things

in stores and in apps.

Apple Pay is built right into Passbook integrated right in

and everything you need is built on iPhone 6 and 6 Plus.

It's an easy, it's secure and yes,

it's a private way to pay for things.

We think that it is going to be profound.

We're getting going in the United States.

We've got all three major networks supporting us

and we have all of the nation's top banks supporting us.

And just since last month announcing this we have signed

another 500 banks.

They will be rolling out support later this year

and early next year showing the support

and the enthusiasm around Apple Pay.

We've got many of the largest retailers

in the country supporting us and as you might guess

since we announced last month, there's even more

that will be rolling out between now and end of the year.

Now, Apple Pay also works online in apps.

You can buy products and services right in the app.

And it's pretty simple.

Find those pair of Beats headphones you want,

and boom, you've bought them.

I've been wanting this a long time

and Jimmy won't get me a pair.

[ Laughter ]

We've got a lot of people behind us here as well.

A lot of great apps and a lot of great developers

and as you might guess since last month,

many more people had committed to rollout between now

and the end of the year.

So, we believe Apple Pay is going to be huge.

It's going to change the way we pay for things.

And, I'm excited to announce today

that we are beginning on Monday.

[ Applause ]

The journey begins and we can't wait.

Now, also last month,

we announced an entirely new category.

Of course I'm talking about Apple Watch.

It's the most personal device we've ever created.

You can wear this powerful technology right on your wrist

and it's just as much about personal expression

as it is about functionality.

We've had great reception from the tech community.

But we've also had great reception from the health

and fitness community.

And, by people who know a lot about fashion

and style even more than I do.

[ Laughter ]

[ Applause ]

In fact, this month the Apple Watch is

on the cover of Vogue China.

We are really proud of this.

It's an incredible image and we're so proud

to be associated with Vogue in China.

Now, as we showed you last month, we have been working

with selected third party developers on Apple Watch.

And, like BMW, like American Airlines, like Starwood

and they've created some really unique personal experiences

for Apple Watch.

I'm pleased to tell you today that we have developed WatchKit

where many other developers can join this party

and we are rolling out WatchKit next month and time

for developers to really do some fantastic work before we begin

shipping Apple Watch.

We are-- we can't wait

to see what amazing experiences they'll come up with.

Now, Apple Watch will be shipping in early next year

and every day I look forward to that day.

[ Laughter ]

[ Applause ]

So, that's some quick updates around iPhone 6, iPhone 6 Plus,

Apple Pay and Apple Watch.

They join an incredible product lineup one

that I would call our strongest product lineup ever.

Each of these products are not only individually the best

in class within its category but they've been designed

to work seamlessly together.

And this is made possible by the most advanced operating systems

on the planet, iOS 8 and OS X Yosemite.

Today we've got some terrific updates on both of these

and to tell you all about them.

I like to turn this stage over to Craig Federighi.

Craig.

[ Applause and Cheering ]

Good morning.

[ Applause ]

Well, iOS 8 has been out for just under a month and I'd

like to give you a quick update.

Now, iOS 8 of course is a major new operating system

for iPhone, iPad, and iPod touch.

And the early reviews have been just great.

The Wall Street Journal said that "iOS 8 pulls out ahead

of the competition by leveraging the greatest strengths

of the iPhone: its app and its ecosystem."

But what's even cooler is just how many

of our customers are already using it.

You can see that in just under four weeks,

nearly half of iOS customers are running iOS 8.

Now, if you consider that in combination with iOS 7,

that means that 94 percent

of iOS users are running their operating system that shipped

in just over the last year

which means they're getting the latest features

and all the latest security protections.

Now, the situation with other mobile platforms is

somewhat different.

So, when you look at Android for instance, the vast majority

of customers are running an operating system that's more

than two years old.

And if you focus just on KitKat, the latest release.

After 313 days, it achieved just 25 percent penetration

of our user-base.

iOS 8 has nearly doubled that in just 26 days.

We couldn't be happier.

[ Applause ]

Now, iOS 8 is a major feature release with something

for all of our customers.

Things like TapToTalk, and easy location sharing in Messages.

Our new QuickType keyword

with smart predictive typing suggestions.

And Family Sharing that makes it easy to share your calendars,

your to-dos, your photos and even your purchases

on the App store and the iTunes store.

But what really sets iOS 8 apart is all the incredible

technologies that it puts in the hands of our developers.

It's amazing what they've done with them.

Let's take a look.

We'll start with extensions.

We've seen an absolute flood of updates to the App store

with applications improving their functionality

via extensions.

So now, with iOS 8, when you swipe down from the top

of your phone to get into your today view,

you have access not just to the system's built in widgets,

but also these great third party widgets as well.

And when it comes to sharing, you of course have all

of the system sharing options but also those

of the third party apps you use the most.

And so, with just a single tap for instance

from almost anywhere in the system,

you can post to Evernote.

Now, we've also added support for third party actions,

the ability to edit your photos using third party filters

without even leaving the photos app.

And access to your Documents.

Not just on iCloud, but also in Box, in Dropbox,

and just about any other box

where we happen to put some files.

Now, we also have support for third party keyboards.

So, whether you like to type by swiping your finger all

over the screen or enrich the life of your friends

with sending them animated gifs

or communicating your native language of Klingon,

iOS 8 has you covered, believe it

or not this is actually in the App store.

So

[ Laughter ]

[ Applause and Cheering ]

Go Klingon.

[ Applause ]

So, next up, HealthKit.

Developers really embraced HealthKit.

So, when you're taking a run, or cycling with Strava,

all of the data about your workout, activity data goes

into your Health profile in HealthKit.

With apps like Lifesum they are able

to combine activity information with information

about your eating habits to make a custom diet recommendations.

And then you have apps like Sharecare, AskMD which are able

to take your profile including things like data

from your Bluetooth scale or other sensors to make--

to offer personalized health consultation.

Now, we've also given developers access to Touch ID,

which means now if you want to get into eTrade

or unlock your passwords in one password, you can do it

with a security and the convenience of your fingerprint.

And then, there's Metal.

With Metal, you get direct access to the power

of the 64-bit A7, A8 and the amazing GPUs they have inside.

And so, whether you're racing around the track in Asphalt 8,

creeping around the rooftops in Assassin's Creed Identity,

or slashing your way through Gods of Rome,

you can do so with unparalleled visual fidelity,

things you never seen on mobile platforms.

[ Applause & Cheering ]

Next is Swift.

An entirely new programming language that we introduced

to take development of iOS and OS X apps to the next level.

Now, Wired said that, "Swift's impact could be greater

than any other language that has sprung up in recent years,

and it may achieve mass adoption faster

than any language in modern history."

And from everything we can see, they are right.