Live Update: WWDC Keynote

9:30 - Jason Snell: Hi everyone. Jason Snell with Dan Moren

9:31 - JS: We're in the Moscone West convention hall in San Francisco. Show expected to start in 30 minutes or so.

9:31 - JS: They let us in early. Go figure.

9:35 - JS: Someone wrote that CoverItLive uses flash. For what it's worth, it doesn't. It's all HTML except for one unfortunate button that you don't need to click. :-)

9:36 - Dan Moren: I tell you, walking back through this hall against the stream of developers was like being a salmon swimming upstream.

9:41 - JS: The developers are feeding in, absolutely. We're firmly ensconced. They even outfitted us with power strips. Swank.

9:43 - JS: Expected today: New iPhone, of course. More detail about iPhone OS 4. Lots of details about the software on the new iPhone, since nobody outside of Apple has really seen it running. Lots of highlighting the quality of the new screen.

9:47 - JS: We'll be reporting as soon as Steve comes onstage.

9:50 - DM: Your regular music update: we are being serenaded by the dulcet tones of Louis Armstrong.

9:56 - DM: People in the back of the hall are apparently holding up their iPads with messages written on them, and getting laughs.

9:56 - DM: Sadly, they have not pointed them at us.

9:56 - DM: We're getting our welcome from a disembodied voice, asking us to turn off our cellphones, etc.

9:57 - JS: They've asked us to turn off our PDAs!

9:57 - DM: Oh, man, I think I left my Handspring Visor on. In 2001.

9:58 - JS: Lots of cheering and moaning behind us. I wonder if someone's bouncing a beach ball in the crowd.

9:59 - JS: Louis Armstrong's "What a Wonderful World" playing at a much higher volume.

9:59 - DM: I think this is the key song. Especially since they just turned the volume up.

9:59 - DM: Or heck, maybe Steve's just feeling very mellow these days.

10:00 - DM: And the lights are going down.

10:00 - DM: I think we're about to begin here.

10:01 - JS: Lights dimming or I'm having a stroke.

10:01 - DM: Enter Steve Jobs, stage left!

10:01 - DM: Black turtleneck, jeans, the usual garb.

10:01 - DM: He's getting a standing ovation.

10:01 - DM: People are taking pictures everywhere. It's a mad house.

10:01 - DM: "It's great to be here." "Thanks, I think," says Steve.

10:01 - DM: "We love you, Steve" shouts a crowd member.

10:02 - JS: The developer crowd is like a rock-concert audience.

10:02 - DM: Over 5200 attendees, packed to the gills. 57 different countries. Sold out in eight days.

10:02 - DM: Taken us a little over a month before, but now sold out in 8 days. Apologize to folks who wanted to be here. This is the biggest place they could get.

10:02 - JS: Next year, Keynote at AT&T Park!

10:02 - DM: Over 120 sessions this week and over 120 hands-on labs.

10:02 - JS: Kidding.

10:02 - DM: Over 1000 Apple engineers here this week.

10:03 - DM: Great sessions on Mac, iPhone, iPad, and just about everything you want to know, there's somebody to answer your questions.

10:03 - DM: Let's do a few updates to start.

10:03 - DM: The iPad's up first. And it gets a round of applause, unsurprisingly.

10:04 - DM: Changing the way we're experiencing the web, email, photos, maps, video, you name it. It's a whole new way to interact with the Internet, with apps, with content media, and it is magical, because I got this e-mail:

10:04 - DM: "I was sitting in a cafe with my iPad and it got a girl interested in me. It really is magical!"

10:04 - DM: Over 2 million iPads in 59 days, one sold every 3 seconds. In 10 countries today.

10:04 - DM: Here's a video reel with press coverage.

10:05 - DM: Coverage from a bunch of different countries.

10:05 - DM: Even an 84 year old French woman has one!

10:05 - DM: Everybody is SO EXCITED to have iPads.

10:06 - DM: Be in 19 countries by end of July and they thank everybody for patience; they're making iPads as fast as they can.

10:06 - DM: Now 8500 native iPad apps in the App Store. And the iPad can run over 200,000 of the iPhone apps. Over 35 million downloads of iPad apps, and works out to be about 17 apps per iPad.

10:07 - DM: Going through some popular iPad apps: webMD, eBay, Gowalla, etc.

10:07 - DM: Lot of great games. Iron Man, Avatar, Field Runners, golf, a really cool DJ app, flight tracker. A lot of newspapers and magazines.

10:07 - DM: Showing off Wolfram Alpha's The Elements.

10:08 - DM: "I earned more on the sales of The Elements for iPad in the first day than from the past 5 years of Google ads on" -Theo Gray, Wolfram Associates

10:08 - DM: There's your first Google shot.

10:08 - DM: "This is what we love to hear from you guys."

10:08 - DM: They're updating iBooks today!

10:08 - JS: It's important that Steve speaks directly to the developers. This is the one chance for Steve to direct a full house of devs, and show them some love.

10:09 - DM: In the first 65 days over 5 million e-books have been downloaded. About 2.5 books per iPad.

10:09 - DM: 5 of 6 biggest publishers in US say that share of eBook sales is about 22%.

10:09 - DM: iBookstore's market share hit 22% in just 8 weeks.

10:09 - DM: Some enhancements to iBooks. First, you can also make notes (they look like yellow sticky notes.)

10:10 - DM: In addition, they've added a control to tap and add a bookmark.

10:10 - DM: Table of contents will show you bookmarks and notes.

10:10 - DM: Also added the ability to view and read PDFs.

10:10 - DM: There's a little Books/PDF selector at the top.

10:10 - DM: Whole new bookshelf for PDFs. You can navigate and flip through them.

10:11 - DM: That will be out just a little bit later this month. And that's the update for the iPad.

10:11 - DM: Next we're going to talk up the App Store. "Something near and dear to all of us."

10:11 - DM: I want to make something really clear: we support *two* platforms.

10:12 - DM: The first one is HTML5. A fully open, uncontrolled platform that is forged and defined by widely-respected standards bodies. Apple's a member of those bodies along with other companies. Fully support HTML5 and Apple's browsers are in the lead in terms of supporting the standard. Behind it 100% and it's fully open.

10:12 - DM: Anyone can write HTML apps and have them on the iPad, iPhone, iPod touch, and the Mac.

10:12 - DM: The App Store is the second platform, and it's a curated platform. It's the most vibrant app community on the planet.

10:12 - DM: There's nowhere else you can go and find over 225,000 apps.

10:12 - DM: So we're going to talk about the App Store.

10:13 - DM: You've read a lot about the process of approving apps.

10:13 - JS: Very similar to what he said at the D conference last week. This is definitely Apple's official way of explaining why the App Store is curated.

10:13 - DM: They get about 15,000 apps submitted every week.

10:13 - DM: Including updates, etc.

10:13 - DM: They come in in up to 30 different languages that are supported.

10:13 - DM: 95% of all submitted apps are approved within 7 days.

10:13 - DM: What about the 5% apps that aren't?

10:13 - DM: Three top reasons that they don't get approved.

10:13 - DM: "The app doesn't function as advertised by developers."

10:14 - DM: The second is "Use of private APIs." Developers cannot use private APIs, because when they change the OS, the APIs may change and the app may break.

10:14 - DM: "Developers who use private APIs know exactly what they're doing." That gets a laugh.

10:14 - DM: Third most frequent reason, "They crash."

10:14 - DM: "I think if you were in our shoes, you would rejected these apps."

10:15 - DM: He's going to highlight eBay.

10:15 - DM: eBay came out with an iPhone app last year. "We launched the eBay applicaiton on the iPhone last year—10 million downlaods. It did $600 million of volume in its first year. It's going to do $1.5 billion to $2 billion this year."—John Donahoe, eBay CEO

10:15 - DM: Three new apps on the App Store: here's Netflix.

10:16 - DM: Netflix CEO Reed Hastings is on stage.

10:16 - DM: 2 months ago launched the Netflix app for iPad. Now one of their fastest growing platforms.

10:16 - DM: Customer ratings in the App Store are among the highest, one of the top ten mostdownloaded apps, and it's been #1 in the Entertainment category.

10:16 - DM: Netflix for iPhone for free this summer, and here's an early look.

10:17 - DM: Full Netflix experience on the iPhone. Same service on your TV, iPad, or laptop.

10:17 - DM: You can resume current movie on your iPhone. Plus you get recommendations and you can get all the genres, the complete instant queue, or search through streaming library.

10:18 - DM: Searching for Art & Copy, add to instant queue.

10:18 - DM: On the iPhone, Netflix uses HTTP adaptive streaming to get the best quality.

10:18 - DM: Next up, zynga. Mark Pincus, CEO.

10:19 - DM: Farmville for the iPhone. That gets half-hearted applause and a couple of "Aww"s.

10:20 - DM: More people play than the combined watching of series finales of Lost and 24.

10:20 - DM: Raised over $2 million to help Haiti. And here's farmin on the fly.

10:20 - DM: It's the same farm on Facebook on your phone.

10:21 - DM: Can use in-app purchases to add cash and coins and buy things, like a Snow Leopard that's only avialable on the iPhone.

10:21 - DM: The crowd is a little unruly.

10:22 - DM: Shows you your same friends from Facebook.

10:22 - JS: I really don't get this Farmville thing. I guess the kids like it?

10:23 - JS: Why all the time for Farmville? Because on Facebook it's based on Flash. And on the iPhone, it's got a native app! That's the message here.

10:23 - DM: Farmville will be available on iPhone by the end of June, in time for the one year anniversary of the game.

10:23 - DM: Number three, is Activision. Karthik Bala senior vice president to demo Guitar Hero.

10:23 - DM: With over 40 million units sold worldwide, Guitar Hero is a pop culture phenomenon.

10:24 - DM: Developing a brand new Guitar Hero experience exclusively for iPhone/iPod touch.

10:24 - DM: You can customize look of your rock star and share that look with your friends.

10:24 - DM: Game comes with classic rock from Queen and Rolling Stones as well as Vampire Wekeend and Rise Against.

10:24 - DM: Gameplay riffs off classic guitar hero.

10:25 - DM: Uses the obvious tapping mechanics.

10:25 - DM: So now there's a new strumming mechanic.

10:25 - JS: I have seen Dan Moren play Rock Band, and let me tell you, he's one heck of a drummer.

10:25 - DM: He's air guitaring on stage.

10:26 - DM: And unsurprisingly the demo guy gets five stars.

10:26 - DM: Post highs scores on leaderboard or Facebook. Guitar Hero is available in the App Store today for $2.99.

10:26 - DM: Steve's back on stage. "It's very cool!"

10:26 - DM: Three great entertainment apps and they'll join the over 225,000 apps on the App Store.

10:27 - DM: Some info to share: just last week, Apple crossed 5 billion downloads from the App Store.

10:27 - DM: Steve's favorite stat of the whole show is next:

10:27 - DM: 70% of revenue from App Store goes to developers. So how much have they paid developers? Just a few days ago they crossed $1 billion paid to developers.

10:28 - DM: That's what makes the App Store the most vibrant app community on the planet.

10:28 - DM: That's the end of the App Store section.

10:28 - DM: Now he's going to talk about the iPhone.

10:28 - DM: A lot of stats and market research floating around and some are okay and some are questionable. Here are two pieces of data to help you make your own decision.

10:29 - DM: Q1 of 2010 Nielsen says the smartphone marketshare in the US: RIM is #1 with 35%, iPhone is #2 with 28%, WIndows Mobile #3 with 19%, Android #4 with 9%, and Other tied with 9%.

10:29 - DM: In Q1 2010, the iPhone's marketshare was over 3x that of Android.

10:29 - DM: US Mobile browser usage from Net Applications, for May 2010.

10:30 - DM: iPhone has 58.2% of the entire mobile browser usage in the U.S. Over 2.5x as #2 which is Android, at 22.7%.

10:30 - DM: "This may help you put things in perspective."

10:30 - JS: Jobs taking it to Android there. Making it clear Apple considers Android overhyped.

10:30 - DM: In 2007, "The iPhone re-invents the phone." It's hard to remember what it was like before the iPhone, says Steve. Carriers controlled what was on the phone, there were very few apps. It was really different.

10:31 - DM: In 2008, "The iPhone 3G and the App Store." In 2009, "The iPhone 3GS is twice as fast."

10:31 - DM: For 2010, "The biggest leap since the original iPhone."

10:31 - DM: That gets a huge cheer.

10:31 - DM: "We're introducing iPhone 4."

10:31 - DM: "Now, this is really hot."

10:31 - DM: Well over 100 new features, and we're going to cover eight new features.

10:32 - DM: 1. All new design. "Now, some of you have already seen this." That gets a laugh and a huge round of applause.

10:32 - DM: "Believe me, you ain't seen it. You gotta se this thing in person. One of the most beautiful design we've ever seen."

10:32 - JS: That's the tip of the cap to the Gizmodo story so far: "Believe me, you ain't seen it."

10:32 - DM: "Beyond a doubt, the most precise thing and one of the most beautiful things we've ever made. Glass on front and back, stainless steel around the edge. Precision on this thing…it's closest kin is like a beautiful old Leica camera."

10:32 - DM: "And it's really thin."

10:33 - JS: iPhone 4. Interesting name. Gets away from the whole 3G 4G thing, which is good since those are cellular networking standards.

10:33 - DM: 9.3mm thick; 24% thinner than iPhone 3GS.

10:33 - DM: It's the thinnest smartphone on the planet.

10:33 - JS: Big cheer for the front-facing camera.

10:33 - JS: Big moan for the micro-SIM tray.

10:34 - DM: New volume buttons and a mute button. There's a front-facing camera and the receiver. Micro SIM tray is now on the side. Camera+LED flash on the back. Botom has mic, 30-pin connector, and speaker, and the top has headset, #2 mic for noise cancellation, sleep-wake.

10:34 - JS: Noice cancelling mic on top. Nice.

10:34 - DM: "Because there have been a few photos of this around, people have asked 'what's this?'" Pointing to seam.

10:34 - DM: "This doesn't seem like Apple! What are these lines?"

10:35 - DM: "There's three of them. They are part of the entire structure of the phone. It's the primary structural element of the phone and there are these three slits on it. This is part of some brilliant engineering. The stainless steel band is part of the antenna system.

10:35 - DM: One of them is Bluetooth, WI-Fi and GPS, the other is UMTS and GSM.

10:35 - DM: The integrated antenna right in the structure of the phone.

10:35 - JS: I think maybe the band on the right side of the phone is just for symmetry.

10:36 - DM: All new design; thinnest smartphone ever; stainless steel for strength; glass for optical quality and scratch resistance, integrated antenna; extraordinary build quality.

10:36 - DM: All new design for iPhone 4. And that was the first bullet point.

10:36 - JS: Retina display! Identify for retinal scan?

10:37 - DM: #2: This is a biggy. "Retina display. What's that?" Every display has pixels. In retina display dramatically increasing pixel density. Four times as many pixels in same amount of space. "Let's say we want to draw the letter A."

10:37 - DM: Can get far more precision the more pixels we have.

10:37 - JS: The point here is that text on the iPhone 4 will be clearer than laser-printed text, because it's 326 pixels per inch.

10:37 - DM: Because there's four times as many pixels, they get really really sharp text. It's 326 pixels per inch. (That is a hell of a lot of pixels.) Never been a display like this on a phone. People haven't even dreamed of a display like this on the phone.

10:38 - DM: There's a magic number around 300 ppi is the limit of the human retina to differentiate.

10:38 - DM: Text looks like a fine printed book.

10:39 - DM: A comparison of the two, and you can see the difference. It's less fuzzy. "Once you've used a retina display, you can't go back." Demonstrating difference in kanji.

10:39 - DM: Images and video as well. Looking at the same image on a normal display and a retina display.

10:39 - DM: Here's a demo.

10:40 - DM: They had to get special projectors for this, because most projectors can't display this many pixels.

10:40 - DM: Here's the NY Times.

10:41 - DM: "Our networks in here are always unpredictable."

10:41 - DM: It's reallllly slow. "You could help me out, if you're on Wi-Fi, you could just get off."

10:42 - DM: Switching to backups. "I have a feeling we might have the same problem."

10:42 - DM: Got an error message on one about not being subscribed to a cellular data plan.

10:42 - DM: "Well, geez. I don't like this."

10:42 - DM: He's going to show off some pictures.

10:43 - DM: Looking at the difference in the photos. "It kinda just comes down to "what do you want to be looking at all day."

10:43 - DM: It's loading slowwwwwwly.

10:43 - DM: "Scott, you got any suggestions?"

10:44 - DM: Some wag just yelled. "Verizon!"

10:44 - DM: "Actually, we're on Wi-Fi," said Steve.

10:44 - DM: "We're gonna hope things get fixed before my next demo here."

10:44 - JS: I actually think that might be the biggest demo failure in recent Apple memory. Not since Steve threw that digital camera....

10:44 - DM: Retina display is 3.5 inch, but 960x640 display (4x time as much pixels); 326 ppi; 800:1 contrast ratio, which is 4x better than 3GS.

10:44 - JS: It's always hard to trust live demos on the Internet.

10:45 - JS: IPS display like the iPad and iMac means that it'll have great color fidelity, brightness, and angle of view

10:45 - DM: Using the same IPS tech that they use in iPad/iMac. Provides better color and wider viewing angle. Better than OLED, Steve thinks for these types of display. Incredibly sharp text, images, and video.

10:45 - DM: 78% pixels on an iPad on the iPhone.

10:45 - DM: Existing apps run fine on retina display, but look even better, because iPhone OS automatically renders text in higher resolution, and all controls.

10:46 - DM: If you do a little bit of work and open up the app and put in higher resolution artwork, they'll look stunning. "So we suggest that you do that."

10:47 - DM: We don't think anybody's going to come close. Your display is your window into the Internet, into your media, into your apps, into your software. Most important single component into the hardware. It's the best window on the planet.

10:47 - DM: #3: iPhone 4 is powered by the A4 chip.

10:47 - DM: Designed by our Apple's own team; pull the back off the phone and you'll see that it's packed to the gills. There's the A4 chip, and it's pretty tiny.

10:47 - JS: Because the iPhone 4 is 2x horizontally and vertically of the iPhone display, existing apps won't look weird if they're not updated. They should look just like regular iPhone apps.

10:48 - DM: Micro SIM tray. Went to micro-SIM because they need the space. Biggest single component in the phone is the battery. They made it a little bit bigger.

10:48 - JS: The battery's a little bit bigger, Jobs says. Wait for it...

10:48 - JS: 40% more talk time.

10:48 - DM: Because the battery is bigger and because the A4 is so good at power management, the battery life is better. Up to 40 percent more talk time, from 5 hours to 7 hours; 6 hours of 3G browsing; 10 hours of Wi-Fi browsing; 10 hours of video; 40 hours of music; 300 hours of standby.

10:49 - DM: Environmental report card: arsenic free, BFR-free mercury-free, PVC-free, highly recyclable materials.

10:49 - DM: Up to 32GB of storage; Quad-band HSPDPA/HSUPA. 7.2Mbps down; 5.8 Mbps up. "That's theoretical because the carriers don't support it yet…" Dual mic for noise suppression; 802.11n; GPS + Bluetooth.

10:49 - JS: 802.11n so you can use the iPhone 4 on 5GHz 802.11n networks...

10:50 - DM: #4: Another cool piece of hardware. Remember the accelerometer? The iPhone 4 is adding a gyroscope.

10:50 - JS: Adding a gyrosope! That's pretty wacky. Will there be a superconducting levitating magnet in the iPhone 5?

10:50 - DM: 3-axis gyro (angular velocity); pitch, roll, & yaw; rotation about gravity; gyro + accelerometer provide 6-axis motion sensing. New CoreMotion APIs that developers can call; extremely precise position information. Perfect for gaming.

10:50 - DM: Standard in every iPhone 4.

10:50 - DM: Here's a demo!

10:51 - DM: "And since this demo does not require the network…I should be okay."

10:51 - DM: Showing off a rotating tower of blocks. Much more precise movement and it rotates around the axis. Very cool.

10:51 - DM: He's playing Jenga!

10:52 - DM: "I practiced this a little bit."

10:52 - DM: Never has a crowd of geeks been so enraptured.

10:52 - DM: He lost his tower!

10:53 - JS: Jobs is spinning around in a circle while playing Jenga. Basically we are going to start seeing people on the streets making weird motions while they play their iPhone 4 games.

10:53 - DM: Gyroscope joins four other sensors: accelerometer, compass, proximity sensor, ambient light sensor.

10:53 - DM: Phones are getting more and more intelligent about the world around them.

10:53 - DM: #5: A whole new camera system built into iPhone 4.

10:54 - DM: Everybody likes to talk about the tangibles in photography, like megapixels. But Apple says "How do we make better pictures?" They're different things.

10:54 - DM: Cellphone cameras are actually about capturing photons.

10:54 - DM: All about low-light photography. From 3 megapixel to 5 megapixel sensor, but using a backside illuminated sensor. A way of getting a lot more photons to the sensor by getting some of the wiring out of the way.

10:55 - DM: Most people increasing megapixels make pixels smaller. Apple kept the pixels the same size: 1.75 microns.

10:55 - DM: There's a 5x digital zoom built into the camera app. Tap to focus and there's now an LED flash.

10:55 - DM: Pictures that we're taking are pretty remarkable.

10:56 - DM: Completely unretouched photos taken by their employees.

10:56 - DM: "We think we've got a great camera built in…but that's not all."

10:56 - DM: Camera also records HD video.

10:56 - DM: 720p at 30 fps.

10:56 - JS: The photo samples are impressive. The iPhone 3GS camera was already good; in fact, better than many other phone cameras with more megapixels. I would imagine this will put Apple way ahead on that score.

10:57 - DM: Tap to focus video as well. And built-in video editing for trimming clips on the phone and there's one-click sharing and the LED flash.

10:57 - JS: 720p video has arrived on the iPhone. That makes the case for the Flip Video a lot less compelling.

10:57 - JS: iMovie for iPhone!

10:57 - DM: They've actually written iMovie for iPhone.

10:58 - DM: They're going to show it off. They're bringing out Randy Ubillos, the chief architect for all video apps.

10:59 - DM: You get a list of all your projects. Tapping on them brings up editing environment. Flip through clips.

10:59 - DM: You can record directly into timeline or choose from existing clips and photos. (It looks a lot like iMovie '09).

10:59 - DM: You can add photos in if you want.

11:00 - DM: Photos automatically get Ken Burns effect. You can also use theme transitions.

11:00 - DM: Can add titles too.

11:01 - DM: Camera records geolocation info as clips are recorded, so it can pull it right out of there. You can add music from your iTunes library or use Theme music.

11:01 - DM: You can switch to a different theme.

11:02 - DM: It automatically changes everything and it even shows you your location on a map in the Travel theme.

11:02 - DM: Export from 360p to 720p HD.

11:02 - DM: Here's a project made all on the phone.

11:03 - DM: That was pretty impressive, I have to say.

11:03 - JS: iMovie for iPhone looks great. I was desperate for this last year when the 3GS added video shooting. There will be whole movies shot on the iPhone 4, trust me.

11:03 - DM: Steve's back. "Isn't that awesome?" iMovie for iPhone will be available for $4.99 "If we approve it," quips Steve.

11:04 - DM: "Our guys were running around like crazy backstage, as you can imagine. There are 570 Wi-Fi base stations operating in this room."

11:04 - DM: "Oh we either turn everything off or we don't see the demos."

11:04 - DM: "Several hundred of these things are the MiFi."

11:05 - DM: He's making us narc each other.

11:05 - JS: Steve is telling us to shut off our MiFi. ain't gonna happen, Steve.

11:06 - JS: Now that Steve has told us to turn our stuff off....

11:06 - JS: New name: iOS 4!

11:07 - DM: Over 1500 new developer APIs.

11:07 - DM: There's some great stuff in there.

11:07 - DM: Lot of apps using new APIs.

11:07 - DM: Weren't first with multitasking just like they weren't first with cut-and-paste.

11:08 - DM: A quote from Larry Page. "…software running in the background, that just sort of exhausts the battery life." "yes it does," said Steve.

11:08 - DM: "Unless you do it right."

11:08 - DM: Best in the industry for controls. Audio playback, orientation lock.

11:08 - DM: Folders.

11:08 - DM: Here are some demos.

11:08 - DM: We'll see if they work without the WI-Fi on

11:08 - JS: It had to happen eventually. iPhone as the OS name exits, stage left. It's all for the best.

11:08 - DM: Playing some Jack Johnson on Pandora.

11:09 - DM: Launching Mail as the song plays back.

11:09 - DM: Going to a web page.

11:09 - JS: So, both Google and Apple have had demos foiled by networking, where they've had to ask the audience to turn off their devices.

11:09 - DM: Works great now.

11:10 - DM: Pausing Pandora, showing off some stuff in Mail.

11:10 - DM: There's now the unified Inbox, or any of the other inboxes.

11:10 - DM: Switch really fast.

11:10 - DM: There's also threading with the number next to the arrow.

11:10 - DM: Show all of the messages from a single conversation

11:10 - JS: Yay! Demo of mail threading in iOS 4. That's... great.

11:10 - DM: Now he's going to show off folders.

11:11 - JS: I find myself desperate for that on the iPad. Of course, the iPad will have to wait a few more months...

11:11 - DM: Just hold your finger on an icon until it starts to jiggle, drag one icon on top of the other. Automatically names it based on the category of the apps.

11:11 - DM: "Boom, there's my four apps."

11:11 - DM: Can also put folders in the dock if you want to.

11:11 - DM: Really, really helpful.

11:12 - JS: I am now sitting on my MyFi. I feel like a criminal. A Wi-Fi criminal.

11:12 - DM: There are tons of new features everywhere. Multitasking, Folders, retina display integration,

11:12 - DM: Mail, unified inbox and threading, enhanced camera & photos apps, deeper enterprise support, new features everywhere.

11:13 - DM: The enterprise integration: even better data protection, mobile device management, wireless app distribution, multiple Exchange accounts, Exchange Server 2010, SSL VPN support.

11:13 - JS: Having a hard time typing "iOS4." That's... new.

11:13 - DM: On the consumer side, also adding an option for Bing search on the phone.

11:13 - DM: "Google will stay the default, but now you'll have one more search. Now you have three choices!"

11:14 - DM: "Microsoft's done a really nice job on this." (lines you never thought you'd hear at a Steve Jobs keynote).

11:14 - DM: Golden Master candidate of iOS 4 in developers' hands today.

11:14 - DM: It will be out soon.

11:14 - JS: Golden Master Candidate in devs hands today means, developers will now have something they can check against with their apps to make sure they're ready for release when the OS ships "soon."

11:15 - DM: Another major milestone. This month they will sell their 100th million iOS device.

11:15 - DM: iPhones, iPod touches, and iPads. 100 million devices.

11:15 - DM: "There is definitely a market for your applications. No one even comes close to this."

11:15 - DM: That was iOS 4, #6.

11:15 - DM: #7 iBooks.

11:15 - DM: iBooks is coming to the iPhone with iOS 4.

11:15 - DM: Same controls, same highlighting, same bookmarking, same notes as the iPad.

11:16 - DM: It's done really, really well, same bookshelf, the same PDF reading.

11:16 - DM: You can save your PDFs from mail onto your iBooks shelf.

11:16 - DM: And, of course, the iBookstore right on the iPhone.

11:16 - JS: PDF reading in iBooks is going to be interesting. I'm not sure if it'll kill PDF readers or not. Getting an epub file on iBooks is such a colossal pain. If you have to drag your PDFs into iTunes and then sync them via a wire: yuck.

11:16 - DM: iBooks on the iPhone, iPad, and iPod touch. What can we do with all these products together? These factors work across these products and wirelessly.

11:17 - DM: You can purchase and download a book wirelessly onto device. Don't have to go through computer or anything.

11:17 - DM: Download the same book to all your devices at no extra charge.

11:17 - DM: Buy a book on your iPad, download it to your iPhone.

11:17 - DM: Only have to buy it once.

11:17 - JS: This is one of the great advantages of the Kindle platform - syncing to every device, including saving your place. So now iBooks will do this too.

11:17 - DM: And, iBooks will automatically and wirelessly and for no charge sync your current place, all your bookmarks, and all your notes across all devices.

11:18 - DM: Start reading a book on your iPad, pick up right where you left off on your iPhone.

11:18 - DM: Here's a demo of iBooks on the iPhone.

11:18 - DM: He's showing off Winnie the Pooh.

11:19 - DM: Steve's note: "I love Winnie the Pooh."

11:19 - DM: Here are the PDFs.

11:19 - DM: Thumbing along the bottom over thumbnails. Or flip pages by tapping.

11:20 - DM: Zoom into text, pinch and zoom, just like you'd expect (the controls have more of a translucent look to them than in iBooks).

11:20 - DM: That is iBooks.

11:20 - DM: The iBookstore joins the iTunes Store and the App Store as the third store on the iPhone.

11:20 - DM: Over 150 million accounts with credit cards for these stores, ready to buy your apps.

11:21 - DM: "We believe this is the most of any store on the web. We believe we're now number one."

11:21 - DM: Over 16 billion downloads; number one on the web.

11:21 - DM: Now on to #8!

11:21 - DM: iAd.

11:21 - DM: Why do iAd? "To help our developers earn money so they continue to create free and low-cst apps for users. That's why we're doing this."

11:21 - DM: This is what iAds looks like.

11:22 - DM: They show up where the developer wants them to be.

11:22 - DM: Trying to combine the emotion of video with the interactivity of the Web. This is what advertisers have been after, says Steve.

11:22 - DM: iAds keep you in your app. Don't want to tap on a banner and be hijacked out of app into a browser.

11:22 - DM: Have to find your app again, etc. People don't click on ads.

11:23 - DM: Branding in the corner that says "iAd" so you'll know which ones are which. Built right into iOS4.

11:23 - DM: Can add iAds into your app in an afternoon. Just say where to put them.

11:23 - DM: Apple sells and hosts the ads. "All you have to do is tell us where to put them and make money." Developers get 60% of the revenues, and payment via iTunes Connect.

11:23 - DM: Have been selling iAds for 8 weeks.

11:24 - DM: Here are the brands that are advertising in the second half of this year.

11:25 - DM: Nissan. Citi. Unilever, AT&T, Chanel, GE, Liberty Mutual, State Farm, Geico, Campbell's Soup, Sears, JCPenney, Target, Best Buy, DirecTV, TBS, and Disney.

11:25 - DM: Those are some of the brands that have signed up for the second half of this year. "We couldn't be happier."

11:25 - DM: Steve has pulled one ad; Nissan's electric car. Steve's going to show it to us now, though it's a work in progress. "They were hesitant to show you, but I wanted to show you."

11:26 - DM: Tpa on the ad, it takes over the screen. Hit the 'x' button at the top left to go back to the app instantly.

11:26 - DM: Cute ad.

11:26 - DM: Electric cars will eventually create world peace.

11:27 - DM: "It's amazing how compelling 15 seconds of video can be."

11:27 - DM: Only place you can register to get one of these is on the ads on the iPhone. "So if you wanna get a Leaf you have to get an iPhone."

11:27 - JS: Mentioning all those big-name companies who are going to try out iAds is a signal to everyone else that they need to get on the bandwagon.

11:28 - DM: How far does a car take you on $1.

11:28 - DM: "This is a pretty doggone compelling way to get your point across. And it's fun."

11:28 - DM: You can enter to win a new car on the phone.

11:28 - JS: A NEW CAR!!!! (play the price is right music.)

11:28 - DM: You can even pick the color of your car.

11:28 - DM: Steve has entered a contest to win a car.

11:29 - JS: I hope he loses. He doesn't need another car.

11:29 - DM: So, iAds. Starts on July 1st.

11:29 - DM: All iOS 4 devices. Less than month from now.

11:29 - DM: How successful have they been in selling iAds? "Well we're new, we've never done this before, we don't know what we're doing." Brands have committed over $60 million for second half of year.

11:30 - DM: JP Morgan just revised U.S. mobile display adverstiting in 2010.

11:30 - DM: They think the market for the whole year is $250 million.

11:30 - DM: Steve says just the commitments in the last 8 weeks will be 48% of the entire US mobile advertising market for second half of the year.

11:31 - DM: That was #8!

11:31 - JS: Viewed from one perspective, iAd exists because of the drive toward free and low-cost iPhone apps.

11:31 - DM: "Those are the 8 things I wanted to share with you on iPhone 4. What do you think so far? I think it's a lot more than people thought it was."

11:31 - JS: This way developers can make money on those low-cost apps.

11:31 - DM: "But there is…one more thing."

11:31 - DM: "I think it's best that I just show you."

11:32 - DM: Steve's turning the lights on.

11:32 - DM: He's taking a seat in the chair.

11:32 - DM: In 2007, when they launched the iPhone, he made the first public call to Jony Ive.

11:32 - DM: Now he's going to do the same on this occasion.

11:32 - DM: There's a FaceTime button.

11:32 - DM: Here's the video chat.

11:32 - DM: Trying to connect to Jony Ive.

11:32 - DM: And there he is.

11:33 - DM: Wow, looks pretty good.

11:33 - DM: Echoing.

11:33 - DM: Jony looks a little nervous.

11:33 - DM: "I'm doing okay except for these guys not turning their Wi-Fo off."

11:33 - DM: Jony: "Bit naughty isn't it."

11:33 - JS: Yes, it's a video call. And it's real. Not just sci-fi.

11:34 - DM: Steve says he grew up just dreaming about it and now it's real.

11:34 - DM: "A wonderful optimistic view of the future," says Jony.

11:34 - DM: "The idea of communicating this way is an old idea, but we've had to wait an awfully long time for it to become real."

11:34 - DM: "Let's have lunch later on," says Steve.

11:35 - DM: "We call this FaceTime."

11:35 - JS: Here's Apple in a nutshell. The Sprint EVO Android phone ships with a front-facing camera but I believe there's no software for it yet. Apple doesn't do stuff like that. If there's a front-facing camera, there's software to use it.

11:35 - DM: iPhone 4 to iPhone 4. Anywhere there's Wi-Fi and there's no setup required.

11:35 - DM: You can use the front or rear camera and you can switch back and forth. Portrait or landscape.

11:36 - DM: "Looks and sounds great."

11:36 - DM: Wi-Fi only in 2010, "need to work a little bit with the cellular providers in the future."

11:36 - DM: Apple will ship 10's of millions of FaceTime devices.

11:36 - DM: Here's a little video.

11:38 - JS: FaceTime works by placing a call to a friend and tapping the FaceTime button, even though the video goes over Wi-Fi. End result: No buddy lists or anything. It's built to be a video phone call, period.

11:38 - DM: A nice nod to the hearing-impaired as a couple signs to each other.

11:39 - DM: "This is one of those moments that reminds us why we do what we do."

11:39 - DM: iPhone 4 to iPhone 4; anywhere there's Wi-Fi; zero setup; portrait and landscape; front and rear cameras.

11:39 - DM: Based on H.264, AAC, SIP, STUN, TURN, ICE, RTP, SRTP.

11:39 - DM: Standards bodies and they're going to make FaceTime an open industry standard.

11:40 - DM: "FaceTime. That's…that's #9."

11:40 - JS: Apple is going to try to make it an open standard so that other devicemakers can build it in as well.

11:40 - JS: That's good - the more ineroperability the better.

11:40 - DM: "That is the iPhone 4 and we think it's the biggest leap we've taken since the original iPhone. We're really proud of it. Think there' s more to it than meets the eye."

11:40 - DM: iPhone 4 comes in black and white.

11:40 - JS: Black and white! White front. Much less stealth than the old colored backs.

11:40 - DM: With the normal qualifications, two year contract, $199 16GB, same price as 3GS, $299 for the 32GB.

11:41 - DM: AT&T is going to make "an incredibly generous upgrade offer." If your contract expires any time in 2010, you're immediately eligible for that pricing, for up to 6 months early eligbility.

11:42 - DM: What's the line-up look like? They slide it all over. 8GB 3GS is $99; 16GB IPhone 4 is $199; and 32GB iPhone 4 for $299.

11:42 - DM: Go on sale June 24th.

11:42 - JS: On sale June 24.

11:42 - DM: Pre-orders start on June 15th.

11:42 - DM: On June 24th, shipping in U.S. France Germany, UK and Japan.

11:42 - JS: Great news overseas folks! In five countries, not just the U.S....

11:42 - DM: In July, shipping in 18 more countries.

11:43 - DM: A bunch more countries from Australia to Switzerland.

11:43 - DM: In August, 24 more, and in September 40 more. By end of September, shipping in 88 countries. Fastest rollout ever.

11:43 - JS: You forgot Zealand, New.

11:43 - DM: A few accessories.

11:43 - DM: There's a dock .

11:43 - DM: $29.

11:44 - DM: There's also a case. It's a bumper that just goes around the edge. And it comes in colors.

11:44 - DM: $29 each.

11:44 - DM: iOS 4 upgrades.

11:44 - DM: iOS 4 upgrades for 3GS the 3G* (but not all features; hardware doesn't support multitasking). And the iPod touch (also with caveats). Free upgrade one June 21st.

11:45 - DM: Finally found a way to get the updates for free for iPod touch customers.

11:45 - JS: Remember, Apple used to charge for iPod touch updates. But they've changed the way they account for stuff, so they can do this for free now.

11:45 - DM: Put together a video to summarize all the features, and here it is.

11:46 - JS: You mean I have to wait two and a half weeks to get an iPhone 4? Auggggh! ;-)

11:48 - JS: Optical lamination on the display... looks really snazzy in the demo. Robots applying drops of stuff to the screen.

11:51 - DM: Jony says the glass is 30x harder than plastic and is comparable to sapphire crystal.

11:51 - JS: That glass demo is awesome, too. Well played.

11:51 - DM: "This is going to change everything all over again," says Joz.

11:51 - DM: Slide showing off the intersection of Technology and Liberal Arts that he showed at the iPad event.

11:52 - DM: Apple's not just a technology company. "It's the marriage of that plus the humanities and the liberal arts."

11:52 - DM: Hardware and software together. Not just the great new camera system, but the video-editing software, iMovie for iPhone.

11:53 - DM: Not just the front facing camera and 18 months worth of work to make the software that you'll never notice. "So that all of us don't have to be system integrators."

11:53 - DM: Steve is thanking all the teams that have worked their tails off to create iPhone 4.

11:53 - DM: Mark Papermaster and his team.

11:53 - DM: Jony Ive and the design team.

11:54 - DM: Scott Forstall and the iOS software team.

11:54 - DM: Tim Cook and the operations team.

11:54 - DM: "All of this wouldn't make a difference if we couldn't make a ton of them."

11:54 - DM: "I'm really proud of all you guys," said Steve. "Awesome job."

11:54 - DM: And that's it.

11:55 - DM: That's a wrap! Thanks for joining us everybody. It's been a pleasure as always.

11:55 - DM: We'll see you back here the next time we roll around.

11:55 - JS: Thanks to everyone. And job well done, Mr. Moren.

11:55 - JS: I love it when a liveblog doesn't crash.

11:55 - DM: I love it when a plan comes together.

11:56 - JS: Play us out, Louis Armstrong.....

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