June 15, 2005 10:54 AM PDT

Apple's Intel switch: Jobs' keynote transcript

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It's Intel inside for Apple's Mac

June 6, 2005
Apple Computer CEO Steve Jobs stunned customers, developers and industry analysts when he announced June 6 that the company was embarking on its third major transition: the adoption of Intel processors inside the Macintosh. For future reference, this is his keynote address explaining why the move is necessary and how it will occur over two years. (The speeches made by three Apple developers supporting the decision are not included in this transcript, but the comments of Paul Otellini, CEO of Intel, have been retained.)

Jobs: Welcome to our World Wide Developers Conference 2005. Today is an important day. We've got some great stuff for you today, but I want to start off with just some stats on the conference. There's over 3,800 attendees today here. This may be the largest developers conference in Apple's history--I'm not sure but I know it's the largest in the last decade, so welcome!

There are developers here from over 45 countries including China and India, and we've got some great stuff for you--over 110 lab sessions--and of those, 39 are hands-on, where you're sitting there on the machines during the labs--95 presentation sessions and over 500 Apple engineers are going to be on site this week to help you. We have our Apple Design Awards and this year we've got more entries than ever before, over 400 entries and it just shows the vibrancy of the developers community out there--it's fantastic! But the number that blows my mind for Apple developer connection members, we have now crossed a half-a-million members. Isn't that amazing? So the developer community at Apple is thriving.

"Last quarter the Mac grew at over three times the rate of the rest of the industry and we're pretty excited about that."
--Steve Jobs
Apple Computer CEO

I'd like to give you a quick update on retail next. Apple retail, we've got 109 stores now around the world. We are seeing over a million visitors per week--a million visitors per week--and over the last 12 months the retail stores and the online store have sold over half a billion dollars worth of your products, so they're doing really well for us.

We've opened a lot of stores like this in malls. We've also opened some, what are called flagship stores, this one being in London. I don't know if you've been to the London store but it's hopping; it's a phenomenal store. I was there about two weeks ago on a Tuesday afternoon. There were over 250 customers in the store--Tuesday afternoon at 2 o'clock. So it was amazing. Now our retail group is constantly trying to find the best real estate to locate stores and they made a video at a real estate convention and I saw it and I nabbed it because I wanted to show it to you, so could we run that video now?

So that's a little update on Apple retail. We think it's the best buying experience in the world for personal computers.

Now, I would like to give you an update on the iPod and our music efforts. You know, the iPod has really entered popular culture in America--you know that when you're lucky enough to get on the cover of The New Yorker, so we were thrilled with that. And that's reflected in iPod sales. This is the cumulative iPods sold and at the end of the last quarter, at the end of March, we'd sold about 16 million iPods and that's also reflected in the iPod's market share of all types of MP3 players including flash and hard drive--everything--76 percent market share. So we're thrilled with that.

Now as you know, iTunes goes with the iPod and we just recently crossed 430 million songs sold and downloaded in iTunes. We're thrilled with this and that is again reflected in iTunes' market share. We've gotten lots of competition over the last nine months and what's happened, our market shares has gone up--it's now 82 percent in the month of May.

Now we recently announced something new for iTunes and iPod and it's called podcasting. As you know, the podcasting phenomenon is exploding right now. Podcasting of course is a concatenation of iPod and broadcasting. And what is podcasting? It's been described a lot of different ways. One way has been a TiVo for radio--you can download radio shows and listen to them on your computer or put them on your iPod anytime you want. So it's just like television programs on TiVo, and that's true. Another way has been described as Wayne's World for radio, which means that anyone without much capital investment can make a podcast, put it on a server and get a worldwide audience for their radio show, and that's true too. We see it as the hottest thing going in radio, hotter than anything else in radio. And as you know, what podcasting is is that you can not only download radio shows and listen to them, you can subscribe to them, so that every time there's a new episode it automatically gets downloaded to your computer. You can listen to it there or it automatically gets synced to your iPod the next time you doc your iPod. So it's very, very exciting. And there are over 8,000 podcasts now and this is growing really, really fast. So that's pretty exciting.

Now it's not just amateurs doing these things, though. These 8,000 are not all amateurs, but the pros have realized that this is huge and here's just a list of some of the companies doing podcasts now: all the major radio broadcasters, the network broadcasters, major magazines, major newspapers, even major companies like Disney and Procter & Gamble and Ford and General Motors, so it's pretty exciting. And so what we're doing is, we're going to make it even easier because you're not going

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to have to download other applications and get all sorts of stuff together to make this happen. We're going to build it right into iTunes and iPods. So you can subscribe to any podcast and we're going to make it really easy and so right into iTunes, very simple. But one of the most important things is, how do you find these podcasts? Do you want people typing URLs into iTunes? Well, they can do that, but we're also going to build right into the iTunes music store a podcast directory, so that we're going to list thousands of podcasts and you'll be able to click on them, download them for free and subscribe to them right in iTunes, so I'd just like to give you a quick peek of what this is going to look like.

Let me bring up iTunes here. And I'm going to the podcast home page, and this is the podcast directory, and we're going to list, again, thousands of podcasts. Let's just go ahead and listen to one. We can go to one here. This is Adam Curry, he's one of the inventors of podcasting and you could listen to his?so you could listen to an episode here. But it's much more interesting to subscribe to the podcast and we've now subscribed to Adam Curry's podcast, it's flipped us up to this podcast thing right in the source of list. It's downloaded the most recent one. If I want to download another one I can just push a button and go download one of the older episodes and I can listen to an episode.

OK. So let me give you another one. Adam's great. This is KCRW. This is a show called "The Treatment." They're a public radio station in L.A., so let me go ahead and subscribe to "The Treatment." And here's another one. I can close this one if I want to, and let's go listen to "The Treatment."

So you get the idea. These are really cool. Some are amateur and some are pro. One more I want to just highlight. We're going to do one ourselves because we have new-music Tuesdays and we put new music on the iTunes music stores, so we decided to do a podcast. This is just a test, but you can subscribe to that?and the nice thing about this one is, as we scrub along you see the artwork changes too, right? And you can go to different chapters in this thing. You can go right to different chapters. So, very, very simple, and we think it's going to basically take the podcasting mainstream to where anyone can do it. Really easy to find these podcasts, really easy to listen to them. So we're very excited about this and there's going to be one more way in which iPod and the iTunes digital-music community are really at the forefront of this stuff, bringing the innovation into the marketplace.

Now I'd like to give you a little update on Mac. Mac is doing really well right now. Let me start off with just some figures. If we look at growth rates, these are year-over-year unit growth rates for the last five quarters ending in March. And if we look at the PC market, the growth has slowed down a little bit from just under 20 percent five quarters ago to just over 10 percent today. This is, again, year-over-year growth rates in terms of units shipped. But let's look and see how the Mac's done during the same period. Look at this. Nine months ago,

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OR just watch it on QuickTime for Win/Mac...
<a class="jive-link-external" href="http://www.apple.com/quicktime/qtv/wwdc05/" target="_newWindow">http://www.apple.com/quicktime/qtv/wwdc05/</a>
Posted by Llib Setag (951 comments )
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