[ 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.

It's really just a fantastic way to read. As you can imagine, this is about a good time

for another notification. Here's one right here for my friend Mina who's just in town

and she wants to apparently meet at Coit Tower. Now with data detectors, I can actually just

click on this and get a view right of the time and appointment. But what's great is

when I go into our great new Calendar app, you notice it's also extracted the location.

It's even shown me a map of that location and the weather expected for that time. And

because Calendar is completely location aware, it also knows where my previous appointment

is and it can actually let me know how long it will take to travel from one spot to the

other. I can drive or walk. It looks like it's going to be a nice day, so I'll go ahead

and walk. You notice it marks out the travel time right here on my calendar. I can ask

to be alerted on my phone and computer when I need to leave. Now I'm just going to click

right into this map, be taken into a great Maps app. So of course we have Multi-Touch

gestures. We see Coit Tower here. I can zoom. I can pan the map around like this. And we

have a satellite view with of course flyover, and it just looks gorgeous. Looking into the

city here, you can see the route that I can travel up the Coit Tower. And when I'm ready