2:00

good morning
2:09
thanks for joining us here we saw that on YouTube this morning couldn't help
2:13
but to
2:14
Marsh a red so thanks for coming
2:18
%uh week for would love to answer questions today
2:23
before we do I've got about just fifteen minute quick presentation
2:27
to maybe go over some stuff in a more efficient manner and then
2:31
open up for questions son right great
2:34
well let me get started you know
2:38
we're not perfect
2:41
we know that you know that an hour
2:46
phones aren't perfect. higher but
2:51
we want to make it Nick all of our users happy
2:54
if you don't know that about Apple you know ap
2:58
we love making users happy that's what drives us to make these products in
3:04
first place
3:04
so were to talk about how we're gonna do that today
3:08
before we get into that though i wanna talk a little about the problems
3:13
and the data that we've got they can help inform us
3:17
about what the problems really are so that we can make sure we make
3:21
all our users happy sought to start the iPhone 4
3:26
is perhaps the best product we've ever made apple
3:29
and we have sold well over three million
3:33
since we launched it three weeks ago just three
3:38
weeks ago and
3:42
it's been judged the number one smartphone in a variety
3:47
publications these are just a few wired Engadget PC world
3:51
Consumer Reports so people seem to like it
3:56
one portly users seem to love it
3:59
it already has the highest customer satisfaction rating

4:03
up any iPhone ever and any smartphone out there
4:06
so that's not bad in the first three weeks
4:11
however we started getting some reports of people having
4:16
issues with the antenna system which is a very advanced
4:20
new antenna system and a
4:24
the problems they were saying obviously Gizmodo put their
4:28
video on the web people were touching X marks the spot here
4:33
and the they were seeing a
4:37
but large drop in bars and this has been since dubbed
4:42
antennagate so we heard about this
4:47
not long after we started shipping just 22 days ago from today
4:53
right it's not like Apple's had its head in the sand for three months in the
4:57
skies it's been 20
4:59
to days and
5:02
you know Apple isn't engineering drilling company
5:05
we got some finest scientists and engineers here
5:09
in the world in the areas that we need to create approx
5:13
in the way we work as we want to find out what the real problem is
5:18
before we start to come up with solutions
5:21
and so we've been working our butts off for the last 22 days
5:26
to understand what the real issues are here
5:29
so that we can come up with real solutions and today
5:33
we want to share with you what we've learned so let's
5:38
goal right to the data antennagate
5:43
doesn't seem like a good idea if you can
5:47
touch of all on one particular grip your phone in a certain way and
5:51
bars go way down that doesn't seem like a good thing well it turns out
5:55
it's certainly not unique to the iPhone 4 that was one of the first things we
6:00
learned
6:01
you could go on YouTube and see

6:04
videos have Nokia phones Motorola phones and other phones doing the same thing
6:09
nobody ever looked at a much before and frankly
6:13
we didn't trust him either so we did our own testing
6:17
me extremely sophisticated testing here can't let me show you an example
6:22
have some other smartphones so we're gonna start of
6:26
with some very credible farm these are all good phones there's nothing wrong
6:29
with
6:30
are the first this the blackberry bold 9700 made by RIM
6:34
this is perhaps the most popular phone popular smartphone business
6:39
so let's take a look at what happens when you hold it in a totally normal way
6:44
CDC the bars right there got five bars
6:48
and we're gonna grab it like you might usually gripper to make a phone call
6:53
you'll see the bars go down 21 fairly rapidly
6:59
union group it the bars go back up to $5
7:03
pretty much identical to the videos on the web about the iPhone 4
7:09
so there's the BlackBerry Bold by bars to one bar
7:14
different people grip phones in different ways but you'd imagine that's
7:17
pretty popular way to grip the iPhone
7:20
next the HTC Droid Eris
7:23
an Android phone let's take a look at
7:29
starts off with the four bars they only have four bars
7:33
and the time it takes for the bars to go down
7:36
is dictated by their algorithm the signal goes down right away
7:39
but the algorithm sometimes the laser to make sure it's not just a temporary
7:42
glitch
7:43
as to not confuse user so it goes down
7:48
20 bars and then when you take your hand away from wherever there in 10 a weak
7:53
spot is
7:54
because backup eventually four bars there
7:58
so again

8:01
the HTC DROID era same behavior four bars 20 bars
8:07
Samsung on you too windows mobile phone
8:11
let's take a look at it
8:16
it's got four bars to start
8:21
weak grip it no not unusual way
8:27
this when I believe they have a long history sis in the algorithm
8:30
so take to minute or so to drop bars but again the signal strength dropped
8:34
immediately
8:36
now let's play Ghost are quickly they're trying to save battery life
8:53
again signals are down to I believe one bar but they're just taking their time
8:57
to show it to make sure they're not making a mistake
8:59
none of this is standardized by the way
9:03
many factors come up with their own delays in
9:07
and so again
9:11
you'll see it go back up I think they go back up a little faster go down
9:16
so we get back to four bars here pretty quickly
9:19
now these phones
9:33
so we could go on and on had another five or six phones to show you
9:37
they most smartphones be hit exactly the same way
9:40
now these phones were all tested in areas have
9:44
relatively weak signal strength just like people have been testing the iPhone
9:47
4
9:48
and you see that the bars go from flight the 140
9:53
421 this is a wife in the smartphone world
9:58
phones are
10:01
perfect and it's a challenge for the whole industry
10:05
and we're all doing the best we can
10:08
but every phone has weak spots
10:13
most every smartphone we tested behave just like this
10:18
when it's in a relatively weak signal area and you grip it in a certain way

10:22
that's not unusual
10:23
now we're not perfect
10:26
we made it very visible will help from our friends on certain web sites
10:32
what we did was
10:35
X marks the spot we want to a lot of trouble to put this really beautiful
10:40
online in the stainless steel the say
10:42
here's where you touch it everybody you know
10:45
might as well just could just put up you know wait a little while
10:49
red flag right there and we get incorrect bars
10:54
so that when it didn't drop the drop
10:57
what far more catastrophic than in reality it was
11:01
you thought you were dropping from five bars to one bar when in reality you're
11:05
probably driving from
11:06
two or three bars to one bar but we screwed up on our algorithm by the way
11:10
so many other phones
11:12
might be being a little too liberal with their algorithms to but
11:16
that's their that's their choice our choices to put the correct algorithm in
11:20
which we just don
11:21
with the release we San yesterday and
11:25
hopefully help give people a better indication of the signal strength that
11:28
they're in
11:29
their bars will still drop by a bar to
11:32
when they put their finger or they grip that place in just
11:35
just grip the phone in just the right place and again
11:38
all smartphone seem to do that we haven't figured out a way around the
11:43
laws of physics
11:44
yet so we do a lot of testing
11:49
we've got an extremely sophisticated
11:52
antenna lap this is one of the pieces of equipment somebody will sit there
11:57
and rotate around inside this these are all intense

12:00
looking at the antenna reception from every angle
12:03
again fully automated testing
12:07
where we're testing the recession free space you here's our biggest one right
12:12
here
12:13
again you have to build these wrongs
12:16
because if you don't shield what your testing from
12:20
all of the outside interference you don't get accurate tests
12:24
and you can put your equipment in the reminder the equipment can all be
12:27
reloaded outside the room
12:28
now this is a state-of-the-art
12:32
Internet has facility we have 17
12:36
in a court chambers these things are not cheap we've invested over 100 million
12:42
dollars
12:43
in montana testing facilities over the last five years we have 18 phd
12:49
scientists and engineers on our state a much larger step
12:52
18 phd scientists and engineers working in this area
12:56
and they do some very advanced antenna design
12:59
and so the iPhone antenna went through all of this
13:03
we tested it we knew
13:06
if you gripped it in a certain way the bars are gonna go down a little bit just
13:10
like
13:11
every smartphone we think would be a big problem
13:15
because every smartphone has this issue
13:18
so phones aren't perfect.
13:23
and it's a challenge for the entire industry
13:27
and we're hoping to make some contributions to this in future years
13:31
matter fact we think we've started with this antenna which is a more advanced
13:34
antenna than
13:35
ever has shipped on a smartphone before people reporting better reception with
13:40
this antenna the nape

13:41
ever seen with their smartphones before so
13:45
what we learned the first thing we learned
13:50
is smart phones have weak spots
13:53
this is not unique iPhone 4 this is
13:57
a property of smartphones they have weak spots
14:01
you can grab them in the course of normal use and they're all different
14:05
but you will you will drop perception
14:10
next some really interesting data from AppleCare
14:14
as you know we get very high marks in terms of customer service
14:19
our customer service program is called AppleCare whenever
14:22
anyone calls in for a problem in addition to solving a problem there law
14:27
and we look at the statistics
14:29
and we got the statistics on AppleCare
14:34
and we asked ourselves what's the percentage all iPhone 4
14:38
users who have called AppleCare about issues relating
14:42
anything about the antenna or reception for anything even near
14:46
antenna reception
14:50
in other words if you read all these articles out there you would've thought
14:53
cheeses at least help our customers must have called into
14:56
complain or ask questions or be angry
15:01
right so what percent of iPhone users have called AppleCare
15:08
hard data 1/2
15:12
1 percent one-half of one percent 0.55 percent
15:20
the state is just a few days old 0.55 percent
15:26
historically for us this is not a large number
15:31
so this this doesn't really John live
15:35
with what you read about this problem
15:41
but keep going so smart phones have weaknesses
15:45
an AppleCare but half a percent of our iPhone you for users who called in about
15:49
problems related to

15:51
perception antennas acceptor even after reading all these articles out there
15:57
point by five percent the third
16:01
return rates
16:04
like Apple AT&T who is the largest
16:08
reseller iPhones in the world has a if you will
16:11
buyers remorse return period
16:15
and people return phones for all sorts of reasons
16:19
the reception in their area is what they hoped
16:22
they tried out they just don't like it the antenna
16:26
doesn't work for me rip it a certain way whatever yes
16:29
no questions asked they can return a phone
16:33
just like it to Apple and
16:36
so what are the return rates to our largest reseller
16:41
by phone force well what we're gonna do is compare to iPhone 3GS
16:46
because iPhone 3GS has been the best
16:50
selling smartphone in history it's the gold standard
16:55
so in the early days i phone 3GS a year ago
16:59
AT&T's return rates were six percent
17:02
which is below the smartphone average
17:06
everybody was pretty happy about that
17:09
what are they for the iPhone 4 again
17:13
you go online you read all these articles about it
17:18
and you think it must be she's at least half the people must be returning the
17:22
farms right
17:26
pretty serious well we cut the data
17:30
now and the hard data says
17:34
its 1.7 percent
17:37
is West than a third up the
17:40
return rates for the iPhone 3GS
17:45
hard data just a few days old

17:50
so smart phones have weak spots
17:56
about a half of one percent all iPhone owners have called Apple care about
18:00
anything related to antennas and reception
18:04
and the returns at our largest iPhone 4
18:08
reseller our third what they were
18:12
for phone was regarded as spectacular
18:15
a year ago
18:18
okay pretty interesting
18:23
one more data point AT&T
18:27
has given us the early call dropped rate
18:30
information just three days ago
18:34
they obviously run the net a very sophisticated network they do a great
18:37
job
18:38
and they'll on call drops
18:41
that helps them improve their network and so
18:46
we can't give out be absolute call drop data that's
18:50
very confidential proprietary them for competitive reasons they don't give it
18:54
out
18:54
and I totally agree with them but they're gonna let us release
18:57
the Delta to the iPhone 3GS
19:02
so how is the call drops
19:07
how i phone call how
19:11
the call drops on iphone 4 compare
19:14
the call drops an iPhone 3GS
19:17
during its early period a year ago
19:21
how many additional calls were dropped
19:24
for every 100 calls you make on iphone 4 compared an iPhone 3GS
19:30
and I can tell you since we are being totally transparent
19:35
but even how we believe the iPhone 4's antenna
19:39
is superior to that of the iPhone 3GS

19:43
I must report to you that the iPhone 4
19:47
drops more calls per 100 than the iPhone 3GS
19:51
that's what the data says we got three days ago
19:56
so how many more calls per 100
20:01
does the iphone 4 drop than the iPhone 3GS
20:06
again listening to antennagate
20:10
on the web you would think what it must be dropping half the calls it must be
20:14
dropping which
20:15
50 more calls for 100 or 25 more calls for 100
20:20
right would you expect a this is the hard
20:25
data
20:28
iPhone 4 drops less than 1
20:33
additional call per 100
20:36
more than the iPhone 3GS
20:39
less than one additional call
20:43
100 now
20:48
even less than one is too much for us
20:51
we were trying to find out what we want to drive the slower than the 3GS
20:56
but this does put it in perspective
21:01
so I have my own pet theory on this
21:06
which we have no proof but I'll get you anyway
21:11
when the iPhone 3GS came out we did not change the design from the iPhone 3
21:17
and there was a healthy market a cases for the iPhone 3
21:21
G there are you in stores that 3GS perfectly since design didn't change
21:26
and in our stores eighty percent
21:29
on the iPhone 3GS users what out with a case
21:34
iPhone 4 has a radically new design
21:38
not the old cases fit since we didn't show it to anybody
21:41
not at the new cases are ready and weak can't make another bar bumper cases
21:46
and so on our stores about 20 percent of the people

21:50
are going out with the case and I think that
21:53
has something to do with this disparity but who knows
21:57
we're gonna track it down but again zooming out
22:03
less than 1 additional call drop
22:06
per 100 calls over the iPhone
22:09
3GS so if you put these
22:13
four things together smartphones
22:17
have weak spots most every smartphone we tested
22:21
exhibits the identical behavior if grabbed in a reasonable way
22:27
as the videos you all seen on the web with the iPhone 4
22:32
let ok around
22:35
half of one percent iPhone owners
22:39
have called AppleCare in relation to
22:42
reception in 10 issues only 0.55 percent
22:47
all iPhone owners have called extremely low number
22:52
the return rates for iPhone 4 are running
22:56
one-third love those for the iPhone 3GS a year ago
23:02
and the iPhone 4
23:07
drops less than 1 more call per 100
23:11
than the iPhone 3GS now
23:15
when we look at the state when our engineers and scientists look at the
23:19
stator
23:20
it's very hard to escape the conclusion
23:25
that there is a problem but that that problem is affecting
23:29
a fairy small percentage abusers
23:34
I myself have gotten somewhere over 5,000 emails
23:39
from users telling me how the iPhone four works perfectly
23:43
and they can't figure out what all this is about
23:48
so we think there's a problem
23:52
but we think it's affecting small percentage users

23:56
and we think someone that problem is inherent
23:59
in most every smartphone but
24:02
having said this we care about
24:05
ever use and we're not gonna stop
24:08
until every one of those is happy
24:13
but I think it's important to understand the scope with this problem
24:17
because what the data says lead you to the conclusion
24:21
that this has been blown so out of proportion
24:25
its it's incredible
24:29
I know it's fun to have story but to
24:33
it was fun when you're on the other end so
24:36
we care about every user so let me tell you what we're gonna do
24:40
the first thing we did yesterday we released
24:44
iowa's version 4.0 2.1
24:47
that is now out people are updating it it fixes
24:51
the are wrong formula that we used to calculate how many bars to put up for a
24:56
given signal strength
24:57
and there was a nasty exchange a bug in their lower corporate customers are
25:00
hitting that's fixed as well
25:03
so those bugs are fixed I was forced out I
25:06
4.0 doubt one is out we recommend that every iPhone owner
25:10
update to it secondly
25:14
a lot of people have told us the bumper solve the signal strength problem
25:18
consumer Reports is the latest one this week we've heard from a lot of people
25:22
why don't you just give everybody a case
25:26
okay great let's if everybody a case
25:30
we've got our bumper case here we want to get everybody
25:34
a free case every iPhone user is going to get a free case
25:39
one for every iPhone 4 if you've already bought one will be full refund for
25:43
bumper

25:46
and we're gonna do this for every iPhone 4 purchased through september thirtieth
25:50
will reexamine this in September decide whether keep going or maybe we'll have a
25:53
better idea
25:55
but a mister september thirtieth a free case for every iPhone 4
26:00
and if you bought a bumper will give you a full refund
26:03
now everything in life is more complicated than it seems on the surface
26:10
we're gonna send you free case
26:13
we can't make enough bumpers I we planning on selling them and making
26:17
certain percentage
26:18
we have the tooling done for a try to give a bumper to everyone
26:22
with no way we can make enough in the corner
26:25
so what we're gonna do is sore some other cases
26:29
and give users a choice of cases
26:32
now be able to pick one and implying a website starting late next week it'll
26:37
take about a week to get this all up
26:39
take a case zoom will send it off to you
26:42
that simple
26:45
so a free case every iPhone for user
26:50
simple and if you're still not happy
26:57
before or after you get a free case
27:00
as we've said you can bring your iPhone 4 back
27:04
undamaged within 30 days
27:07
for a full refund we've waived any restocking fees
27:12
anything fall refund
27:16
so we're gonna take care %uh everyone
27:20
we want every user to be happy
27:23
and if we can't make them happy will give a full refund
27:28
that makes sense
27:32
so got some other updates for you
27:36
arm just some other things going on relative the iPhone 4

27:40
and we're gonna Q&A again
27:43
I was four version 4.0 that one was released yesterday
27:50
we're tracking some problems with the proximity sensor and we're working on
27:54
some solutions in
27:55
hopefully we'll get those in the next software update this seems to affect
27:58
again a fairly small number users but it's a
28:00
probably a pesky problem for those users so we're trying to text as fast as we
28:04
can
28:06
white iPhone a lot of people waiting for the white iPhone where to start shippin
g
28:09
at
28:10
into this month and are quantities will be
28:13
limited first more ramping up as fast as we can
28:17
but white iPhones will start shipping in July
28:21
and also on july thirtieth we are going to
28:25
bring the iPhone for 70 more countries
28:30
and Audis are the same 17 we talked about before
28:34
I with the on a mission up just south korea cuz it's going to take us longer
28:39
to get government approval there
28:41
but some 17 countries
28:44
you like there so that's the update
28:48
on the iPhone 4
28:52
in ending I'd like to just
28:55
cannot give you feel what we care about
28:58
and how we operate how we make decisions
29:03
we love our users
29:07
you really well and we tried very hard
29:11
to surprise and delight them we work
29:15
are asses off and it's great
29:18
with a blast doing it and we make some
29:22

pretty interesting products for them Macs and iPods and iPhones and iPad
29:28
Apple TV the App Store the iTunes Store
29:32
Mac OS 10 I O S
29:37
I life I work Final Cut
29:41
make some pretty great product for me
29:44
and what motivates us is to just
29:48
have them so we love our users
29:53
and worked really hard to surprise in the white and the like them with these
29:56
products
29:58
we also connect them with great aP's and developers who are app stores
30:04
and great content through iTunes and
30:07
really bring the world content creation app creation our users together
30:12
in some extremely innovative ways even if we don't make a lot of money from it
30:19
we love our users so much we built three
30:22
100 Apple retail stores for them
30:25
given the best buying experience in the world and more importantly the best
30:29
ownership experience in the world
30:31
with genius bars the cost nothing to come in
30:35
and talk to people get your products fixed get advice
30:39
we have won 2-1 seminars to teach people how to use our products
30:43
we had over 60 million people through our stores
30:47
last quarter sixteen million
30:54
so we do all this cuz we love our users
30:59
and when we fall short which we do sometimes we try
31:03
harder we try harder
31:07
we pick ourselves up we figure out what's wrong
31:10
and we try harder and
31:14
when we succeed they were warned us
31:18
by staying users and that makes it all worth it
31:24
so that's what drives us and we have problems like this one people are
31:28

criticizing us
31:30
we take it really personally maybe we shouldn't
31:34
you know maybe we should have a wall of PR people
31:38
keeping us away from all that we don't we all read the stories
31:42
we all take really personally and for users having a problem gets our problem
31:48
so we've been working really
31:51
really hard for the last 22 days
31:55
to try to understand what the real problem is
31:58
so that when we saw all that we actually solve it
32:01
rather just putting a band-aid on it or giving a certain press person what they
32:06
think
32:06
they want us to do and we think we've gotten to the hard in the problem here
32:12
and the harder the problem this
32:16
smartphones have weak spots
32:20
we made ours extremely visible
32:24
some took advantage of that to demonstrate it was very easily
32:27
demonstrable
32:28
we screwed up on displaying too many bars and made that demonstration more
32:32
theatrical than it needed to be
32:36
and so for those small number customers are having problems
32:42
we're gonna given cases which we think will take care of most to those problems
32:47
and for those that's still a happy we're gonna give a full refund
32:52
and not everything we can do to try to make every
32:55
customer happy but the data supports the fact
33:00
that the iPhone 4 is the best smartphone in the world
33:05
and that there is no interrogate their
33:09
is a challenge for the entire smartphone industry
33:15
to be able to improve its antenna performance some dates were there are no
33:19
weak spots on any smartphone
33:21
and we're dedicated to doing but unfortunately that's a day in the future
33:26

so for today we love our customers

33:30
were tracked take your every single 1
33:35
and that's what I had to present you today
new
0:04
this is a day
0:05
I've been looking forward to for two and a half years
0:09
every once in a while
0:17
a revolutionary product comes upon that
0:21
changed every and
0:25
Apple has been well first the ball once very fortunate if you get to work on
0:31
just wannabes in your career Apple's been very fortunate
0:37
it's been able to introduce a few with these
0:41
into the world 1984
0:44
we introduced the macintosh didn't just change Apple
0:49
change the whole computer industry the
1:03
in 2001
1:04
we introduced the first iPod and
1:09
if interest it didn't change the way we all listening music
1:15
it change the entire music industry well
1:21
today we're introducing
1:25
3 revolutionary products at this class
1:30
the first one
1:33
is a widescreen iPod with touch control
1:39
the
1:50
the second is a revolutionary
1:54
the
2:04
and the third is a breakthrough
2:08
Internet communications device
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tell 3 thinks
2:17
a wide screen iPod with touch controls

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a revolutionary mobile phone and a breakthrough
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Internet communications mice an iPod
2:29
a farm an Internet communicator
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an iPod farm the
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the
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these are not three separate devices
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this is how wonderful I the
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calling it iPhone
3:02
today
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today Apple is going to reinvent
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the farm and here it is
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the
3:17
now
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actually hear it is but we're gonna leave it there for now
3:23
so before we get into it
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let me a let me talk about a category of things the most advanced phones are
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called smart phones
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so they say and
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they typically combine a follow-on plus some email capability
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plus they say it's the internets for the baby internet in the one device and the
y
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all have these
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plastic little keyboards on them I and other problem is
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that they're not so smart and they're not so easy to use
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so if you can make a no business school 101 grappled a smart access in a
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easy to use Access bones regular cell phones are kinda right there they're not
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so smart
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and I am you know not so easy to use on
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but smart phones are definitely will smarter but they actually are harder to
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use
4:17

they're really complicated just for the basic stuff

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people have a hard time figuring out how to use them what we all want to do
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either one of these things
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what we want to do is make a leap frog product
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that is way smarter than any mobile devices ever been
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and super easy use this is what I phones
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we're going to reinvent the fun
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now we're gonna start
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with revolutionary user interface
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is the result in the years
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research and development and
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of course it's an interplay of hardware and software now
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why do we need a revolutionary user interface I mean here's
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for smartphones right Motorola Q the BlackBerry
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Pond Trail Nokia e62 the usual suspects
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and what's wrong with their user interface as well
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the problem with them is really sort of in the bottom forty there
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its if this stuff right here they all have these keyboards
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better there whether you need them or not to be there and they all have these
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control buttons
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that are fixed in plastic and are the same for every application
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every application wants a slightly different user interface a slightly
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optimize ceta buttons just for it and what happens if you think a great idea
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six months from now
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you can't run around add a button to these things are already shipped so what
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do you do
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it doesn't work because the buttons and controls
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can't change they can change for each application
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and they can't change down the road if you think another great idea you want to
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add to this product
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well how do you solve this hmm it turns out

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we have solved it we solved in computers twenty years ago
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we saw all that with a bitmap screen the cosplay anything we want
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put any user interface up and a pointing device
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we solved it with the mouse right we solve this problem so how we gonna take
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this to a mobile device
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what we're gonna do is get relive all these buttons
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and just make a giant screen a giant screen
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now how are we going to communicate this we don't carry around a mouse right
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so what we gonna do our stylists right
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we use a stylus now
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who wants a stylus
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yep to get them and put them away realism
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yuck nobody wants a stylus so let's not use a stylus
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we're going to use the best pointing device in the world where he's appointed
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by Stu Worrall
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born with one with Taliban when he's our fingers
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wanna touch us with our fingers and we haven't vented
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a new technology called multi-touch which is phenomenal
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it works like magic you don't need a stylus
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it's far more accurate than any touch display that
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ever been shipped it ignores unintended touches it's super smart
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you can do multi finger gestures on it
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and boy have we patented it though
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we've been very lucky
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to a broad a few revolutionary user interfaces to the market in our time
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first was the mouse the second
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was the click wheel and now
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we're gonna bring multi-touch to the market and each of these revolutionaries
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are interfaces
8:05

has made possible a revolutionary product

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the Mac the iPod and now the iPhone
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so revolutionary user interface
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we're gonna build on top of that with software
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now software on mobile phones is like like baby soft for
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it's not so powerful and today
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will show you saw for breakthrough software that at least
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five years ahead what's on any other phone
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now how do we do this well we start with a strong foundation
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iPhone runs OST the
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by why would we want to run
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such a sophisticated operating system on a mobile device while because it's got
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everything we need
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it's got multitasking it's got the best networking
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it already knows how to power management doing this on mobile computers for year
s
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it's got awesome security and the right aP's
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it's got everything from Coco and the graphics and it's got poor animation
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built-in
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and it's got the audio and video the West tennis famous for it's got all the
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stuff we want
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and it's built right in to iPhone and that has let us create
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desktop class applications and networking
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right not the crippled stuff
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that you find in most parts this is real desktop class
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applications you know one of the pioneers of our industry Alan K
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has had a lot of great quotes throughout the years and I ran across one of them
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recently
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that explains how we look at this explains
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why we go about doing things the way we do because we love software
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and here's the quote people who are really serious about software

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should make their own heart now Allen said this thirty-year
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and this is how we feel about so we're bringing
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breakthrough software to a mobile device for the first time
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it's five years ahead anything on any other phone
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the second thing we're doing is we're learning from the iPod
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sinking with iTunes you know were gonna shipper 100 millionth iPod this year
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and thats all tens of millions of people
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that know how to sync these devices with their PCs or Macs
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and sink all of their media right onto the iPod
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right see just drop your iPod in
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and it automatically syncs you do the same thing
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with iPhone it automatically syncs to your PC or Mac
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right to write-ins and iTunes is gonna sync all your media
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on your iPhone your music audio books podcasts movies TV shows
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music videos but it also syncs but on a date
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your contact your calendars your photos which you get on your iPod today
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your notes you your bookmarks from your web browser
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your Gmail account your whole email setup all that stuff can be moved over
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iPhone completely automatically
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it's really not and do it we good writing
11:22
again you go to iTunes is set up
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just like it set up an iPod or an appletini and he set up what you want
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sync to your iPhone
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and it's just like an iPod charge
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and sink so sync with iTunes third thing
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i wanna talk about laws design we've designed something wonderful
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for your hand just wonderful this is what it looks like
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got a three and a half inch screen on
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it's really big and it's the highest resolution screen with ever shipped its
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a 160 pixels per inch

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highest with ever shipped it gorgeous and on the front
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there's only one button down there we call it the home button take you home
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from wherever you are
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not sit affect on the side
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it's really thin it's thinner than any
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smartphone out there at 11 points six millimeters
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better than the Q better than the Blackjack better than all
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it's really nice and we got some controls on the side we got all switch
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for remain silent we gotta
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volume up and down control for the back
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on the back the biggest thing I've noticed we got two megapixel camera
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built right in
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neither side were back on the front so let's take a look at the top now
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we've got headset jack
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three and a half a millimeter all your iPod headphones fit right in
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we've got a place at all tray for your SIM card
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and we got one switch for sleep and wake just push it to go to sleep
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push it wake up was likely the bottom
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we've got a speaker got a microphone
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and we got our 30-pin iPod connector
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so that's the bottom now we've also got some stuff you can't see
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we've got three really advanced sensors built into this phone
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the first was a proximity sensor it senses when physical objects get close
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to you
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bring iPhone apps your year take a phone call
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it turns off the display and it turns off the touch sensor instantly
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why do you want to do that want to save battery but to see docket sprees inputs
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from your face
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in a touchscreen just automatically turns what takeaway boots back on
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so it's got a proximity sensor buildings got ambient light sensor as well

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we sense the ambient lighting conditions and adjust the brightness of the displa
y
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to match the ambient lighting conditions again
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better user experience saves power and the third thing we've got
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is an accelerometer so we can tell when you switch from portrait to landscape