MWSF2005 SteveNote Notes

by Chuck Toporek

MWSF SteveNote

After a bit of a fiasco with my media pass this morning to get into Steve Jobs'
keynote here at Macworld San Francisco, I'm finally sitting here in the big
media room, upstairs, waiting for The Man to take the stage. The background
music mainly consists of tracks from the various iPod commercials, including
U2's Vertigo and Green Day's I Faught the Law. The last track
before Steve took the stage was Let's Get It Started, by the Black-Eyed

Looks like Steve's about ready to take the stage, so what follows here are the
notes -- mostly unedited -- I've taken during the Keynote. Sure, you'll find
some of this elsewhere, but along with the usual bullet points, you'll also get
my thoughts on some of the announcements. Hope you enjoy.

Lights dim, and Steve takes the stage...

Steve notes that this is the first Macworld where we're using HD projection, and then gets right down to business.

Apple Retail

  • 101 Apple Retail Stores around the world

  • Hosting over 1 million visitors per week (that's 20 Macworld's per week)

  • Latest store to open is in London (owned by the Crown), located on Regents Street next to Oxford Circus

  • Opened around Thanksgiving

  • Second highest revenue out of the stores


  • Launched the new iMac in September 2004; "The world's most beautiful
    desktop computer"

  • Comes in two sizes, 17- and 20-inch

  • Received some of the best reviews, including from Walt Mossberg from
    The Wall Street Journal, and Mike Wendland, from the Detroit Free Press

  • Joel Santo Domingo from PC magazine gave it a 5 out of 5 star rating

  • New iMac in its first quarter became the most popular Mac that Apple

Mac OS X

  • The world's most advanced operating system

  • The most successful OS release in Apple's history

  • Over 12,000 native applications

  • Completed the transition to Mac OS X with 14 million users

  • Next release is Mac OS X Tiger

  • On schedule to ship in the first half of this year

  • 200 new features in Tiger

  • #1 Unix in the world

  • 64-bit processing

  • An even better Windows client

  • Includes CoreImage

  • .Mac syncing

  • Safari RSS viewing right within Safari's browser window

  • Automator

  • Steve:
  • "But we don't have time to cover all those today; Steve picked a few he wanted to cover."


  • Built into the core of the system

  • Allows you to find anything on your system, almost instantly

  • Click on the Spotlight icon in the upper-right corner of the menu bar

  • Two wannabe search tools (from Google and Microsoft) don't compare with Spotlight

  • Spotlight is "Far nicer and simpler user interface"

  • Spotlight instantly updates when things change; you don't have to wait 10 minutes for a search to take place

  • Spotlight is integrated right into the applications, and Apple's developers can build it into their own apps, including Microsoft.

  • Steve gives a demo of Spotlight

    • Spotlight can find words you search on inside PDF files (the example was
      a search for the word "Bryce", which brought up a map of Bryce Canyon.

    • And then Tiger crashed; Steve says "And that's why we have backup
      systems here"

    • Switched over to the Finder...

    • Added Smart Folders to the Finder so you could define custom searches
      using Spotlight

    • Spotlight views in the Finder

    • Steve switched to System Preferences to show off how Spotlight is used to do keyword searches through the preference panels
    • Showed how to search for "album art", which is a new screensaver option
      that you can apply in the Desktop & Screen Saver preference panel


  • Major upgrade to Mail in Tiger

  • You can search across all your mailboxes in Mail, instantly, since Spotlight was built into Mail

  • Showed off how Mail handles Mail attachments

  • If you get an email that contains a lot of images as an attachment, you'll
    find buttons that help you choose what to do with them, including a
    "Slideshow" button, which when pressed displays the images as a
    slideshow. What's more, the slideshow has a bunch of different controls
    that let you control what happens onscreen during the slideshow,
    including selecting an image and saving it to your iPhoto Library.

QuickTime 7

  • The most major update to QuickTime in the last decade

  • Over 330 million downloads, plus 10's of millions of copies distributed elsewhere

  • What's new: Live resizing, full 24-channel surround sound, MPEG-4
    compliance, Full HD playback, and H.264, which is a new compression
    codec that's been adopted by Blul-ray and HD DVD

  • Onscreen controls (similar to the slideshow option for Mail)

  • Steve showed off how the movies scale

  • Compatible with cell phones


  • New icon that sort of looks like a car's dashboard gauges

  • A place for widgets to live, so you can get in, get the info you want, and
    then get out

  • Showed off some of the new Widgets that will be added to Tiger, including
    a dictionary, Yellow Pages, unit conversion, Stickies, flight tracker, language
    translation, stock ticker (Steve noted "Wow, we're down today. Well, we've
    got a little ways to go with the keynote.), as well as a weather Widget (so
    much for WeatherPop).

  • When demoing the Weather Widget, Steve showed off all the different
    weather icons for rain, sun, wind, etc.

  • Steve: "I think it's pretty darn cool, and I think you're really going to like Dashboard."


  • Extended audio conferencing for up to 10 simultaneous people

  • Added the first multi-person video conferencing, with up to 4 people

  • Uses QuickTime's H.264 codec for crystal clear

  • Demoed an iChat video conference with Scott Forrestall, Phil Schiller, and
    Danika (from Paris)

  • Notice the reflections on the "desktop" as you're conferencing with more
    than one person.

Steve: "Mac OS X Tiger is a pretty amazing release. Sorry we don't have time to show you more. On track to release Tiger in the first half of the year."

Next topic...HD...High-Definition Video

  • Final Cut Pro HD is the most popular

  • Introducing Final Cut Express HD

    • Powerful HDV and DV editing

    • Livetype for animating titling

    • Soundtrack for custom music

    • Integrated with Motion

    • Priced at $299; available in February

    • Only a $99 upgrade from the current version of FCE


  • Leading the digital media revolution

  • Showed box of iLife 04

  • Annoucned iLife 05; a completely new box

  • Major upgrades to iMovie, iPhoto, iDVD, GarageBand, and iTunes


  • Better organizing and searching

  • Supports more formats

  • Far more powerful image editing

  • Advanced slideshows

  • All new books and book design

  • Even easier to use

  • Even simpler to use before

  • Added folders so you could have folders to organize your photos

  • New search field so you can search for images

  • New calendar view (similar to iCal's calendar view)

  • New formats: Supports MPEG-4 movies (store, play, and categorize), and also supports RAW for high-end digital cameras.

  • Photo editing is very simple, but added a fiew things. There's a scrolling
    image view along the top, and there's an Editing Dashboard that pops up
    on top of iPhoto, giving you greater control over your images. Works with
    JPEG and RAW photos

  • Advanced Slideshows, lets you adjust timing between images, etc.
  • Whole new way to make books; demo:

    • Picture of photos taken on a lake

    • Showed how you can play a movie file from within iPhoto

    • Clicked on an Adjust button to bring up the Editing Dashboard

    • Showed how to do some color correction

    • Straighten images by aligning them to a grid

    • Demoed a slideshow and some of the new transitions between the images

    • New "Make Book" button lets you select from different kinds of photo
      books, you can either lay it out manually or let iPhoto layout the book for
      you automatically. New mosaic effect breaks up an image so it looks like
      a series of smaller images

    • You can edit an image by going back to iPhoto and then have those edits
      show up automatically in the Photo Book.

    • Buy Book button lets you automatically purchase the book from iPhoto

    • You can also buy individual prints for $0.19 each

    • Hardcover is 11 x 8.5

    • Adding a Softcover book 11 x 8.5, and an 8x6 as well as 3.5 x 2.6

    • All a minimum of 20 pages

    • $29.99 for hardcover, $19.99 for softcover, $9.99 for 8x6,


  • Dramatically faster

  • Non-destructive trimming

  • More transitions and effects

  • MPEG-4 video

  • Magic iMovie, where you can plug your camcorder in, type in a title, etc.,
    and then automatically pull in your video and build your movie for you

  • The biggest new feature is iMovie now edits high-definition video
    (HDV) 720p

  • Steve demos the new iMovie...

    • Showed a wedding video that mixed still images and video, and there
      appeared to be a slow-mo feature applied to one of the video segments

    • Showed off the new Sony HDV camcorder (sells for "just" $3499).

    • Brought out Kunitake Ando, the president of Sony to talk about Apple's
      relationship with Sony

    • While Mr. Ando was talking, Steve sat off to the side, shooting an HDV
      movie with Sony's new camera


  • Steve: "And there's a new iDVD, too."

  • 15 amazing new themes with animated drop zones

  • OneStep DVD creation

  • Supports all formats

  • Demo:

    • Showed one of the new themes

    • Dropped in a video into the view of images scrolling across the top

    • New slideshow feature pops images to the front while others are grayed
      out in the background

    • Showed off a Baby Mobile theme that rotates video and images within
      what looks like a mobile you'd hang over your baby's crib


  • Reminded everyone of the GarageBand Jam Packs

  • Introduced a 4th Jam Pack, named Symphony Orchestra

  • Up to 8-track recording

  • Realtime music notation

  • Pitch and timeing fixing

  • Recorded tracks now as flexible as software instruments and loops

  • You can create your own loops

  • New Vocal Transformer

  • John Mayer came back to Macworld again this year to help demo the new GarageBand:

    • First demoed the Music Notation stuff, which added the notes in real-time as John Mayer played the piano (then he sung: "I didn't win any Grammies for playing the piano.")

    • You can adjust the notes in the Notation view in realtime

    • Demo'd multi-track recording feature (4 tracks)

    • Two vocal tracks and two guitar tracks

    • Played back the recording, then disabled different tracks along the way

    • Steve quit GarageBand, but didn't save the recording (Why not? This
      would sell like hotcakes on iTMS.)

Steve went on to talk about how the iLife apps work together. Then showed
the new box and announced the new price, $79. Goes on sale on January
22nd. Is free on all new Macs.

Steve: "Now on to the next big thing..."


  • Building the successor to AppleWorks

  • AppleWorks was written before Mac OS X was released

  • And long before iLife ever existed

  • Keynote 2, Cinema-quallity presentations for everybody

    • 10 new Apple-designed themes

    • animated text

    • powerful animated build

    • presenter display

    • interactive display

    • kiosk display

    • Presentor display offers a timer

    • New themes: Hard Cover (good for photos), Watercolor, Scrapbook

  • Keynote 2 is compatible with PowerPoint, Flash, and PDF output


  • Word processing with an incredible sense of style

  • Use it for whatever documents you'd want to create

  • Includes advanced typography, multiple columsn, paragraph styles, etc.

  • Includes 40 Apple-designed templates

  • Each template includes a bunch of different page styles you can choose

  • Brought out Phil Schiller to give the demo of Pages...

    • The first thing Pages does is ask you which template you'd like to start
      with, much like Keynote

    • Selected the Family Newsletter template. The page has Greeked text, not
      just a bunch of empty space that you have to think about. To change the
      stuff in the template, open the Media Browser to select text, photos, etc.,
      and then just drag and drop files into the template. Very spiffy.

    • Pages is going to beat the pants off other page layout applications,
      especially Microsoft Word, and, maybe with time

  • Compatible with AppleWorks, PDF, and Microsoft Word

  • Priced at $79, and available January 22nd.

Bubble-quote displayed on screen with the following:

"Why doesn't Applee offer a stripped-down Mac that's more affordable?"

Mac mini

  • A new member of the Mac family

  • Rael says: "If they get Mini Me to come out, I'm going to throw up".

  • Includes a DVD player, DVI and VGA output

  • Ethernet

  • USB 2

  • Showed a size comparison with the iPod mini. This thing looks about as
    small as my LaCie d2 drive

  • BYODKM: Bring your own display, keyboard and mouse

  • You can connect it to a 20-inch Cinema display, or to any
    industry-standard keyboard and mouse

  • FireWire port, headphone chack, two USB 2 ports

  • Comes with Mac OS X Panther and the new iLife '05

  • Two models:

    • $499: 1.25 GHz G4, 256 MB RAM, 40 GB drive, ComboDrive

    • $599: 1.42 GHz G4, 256 MB RAM, 80 GB drive, SuperDrive

  • The cheapest computer Apple's ever offered

  • Showed the box

  • Available January 22nd

  • Steve then carried out the box, which looked about the size of a
    small purse.

Steve: "So, what's next?"

Update on iTunes

  • The most popular online music store

  • iTunes has sold more than 230 million songs to date

  • 1.25 million songs per day are sold

  • That's at a rate of nearly 1/2 a billion sales per year

  • iTunes market share is at 70 percent

  • iTMS now in 15 countries; 70 percent of the global market

  • iTunes pre-paid music card, sold over 1 million since Thanksgiving

  • iTunes Essentials: One more thing introduced today is a new way for users to discover new music.


  • The world's best digital music player

  • iPod and iPod mini

  • 733,000 iPods sold during the holiday quarter in 2003

  • Last quarter, holiday 2004, Apple sold 4.5 million (!) iPods!

  • 500 percent year-over-year growth

  • Steve showed a chart showing iPod's sales growth.

  • 8.2 million iPods sold in 2004

  • 10 millionth iPod was made on Dec. 16, 2004 (Steve showed it)

  • Amazon's Top 5 consumer electronic products, three were Apple's (20 GB
    iPod, silver iPod mini, and the iTunes pre-paid music card).

  • A few new things to announce...

  • Cars: iTunes -> iPod -> Cars...

    • Last year announced an adapter for your iPod with BMW

    • Next-gen adapter to come

    • New dealers: Mercedes, Nissan, Volvo, and Scion (no Honda? What about the Big 4?)

    • Also be be offered by Alfa Romeo and Ferrari

    • Mercedes has brought two cars here to the Macworld showfloor so you
      can test them out. (SLK roadster, and the hot, new CLS)

Other new thing...

  • Cell phones...

  • Placed an iTunes client on Motorola's cell phone

  • Available Spring 2005

  • Rael notes that there's very little crowd reaction to the cellphone thingy

One more thing...

  • Steve: "Let's go back in time to a year ago at Macworld."

  • iPod mini was released

  • Jan 2005, iPod's market share has doubled to 65 percent, and the flash

  • market share has been cut to 29 percent, and other is 6 percent.
  • The iPod mini worked

  • What's next? We want to go after the remaining market of flash-based

  • Nobody has any significant market share, and the products are pretty much the same. They all have attributes: Powered by AAA batteries, very small display, tortured user interface, no click wheel, etc.

  • Steve: "We don't want to make another one of these. We want to create something that's really great."

  • Steve: "We had to come up with a new, original idea. To make a product that was way better than the others."

  • iPod users discovered "Shuffle" for randomly playing their music

  • Introducing the "iPod shuffle". It's really tiny. Headphones plug in the top,
    and it's smaller than a pack of gum. Weighs about the same as four
    quarters (less than an ounce).

  • Very simple set of controls (play/pause, previous/next song, volume up/
    down, and there's an LCD indicator (similar to the colored dot on the
    AirPort Express) to show you what's happening.

  • Pop the cap off the bottom and you get a USB 2 connector.

  • 12-hour battery life

  • Used with Macs and PCs

  • Includes a click-on lanyard so you can put this around your neck

  • Showed a picture of various models with one, including one on an arm band

  • Something new for iPod shuffle is "Autofill", so it picks songs and
    automatically builds a playlist that fits on your iPod shuffle. (Very nice!)

  • And you can use your iPod shuffle to use as a USB storage device. (Make
    adjustments in iTunes' preferences.)

  • Similar MP3 players from the competition only hold 256 MB of music

  • iPod shuffle has two models:

    • 512 MB, 120 songs, $99

    • Steve: "We're really serious about this"

    • 1 GB, 240 songs, $149

  • Showed the box

  • Shipping today!

  •'ll surely find some accessories to add to your iPod shuffle.

  • Apple produced an armband, a Dock, a sports case, a battery extender.
    All $29 each, and will roll out in the next four weeks.

Steve showed the new TV ad, which should start running in a week or so.

Steve asked the crowd to thank everyone from Apple who's worked on these
fantastic products.

Steve: "The other thing I'd like to do, is thank the families and spouses of all
the people who work for Apple. Without your support, we wouldn't be able to do the things we do. So I want to thank you for all your support."

John Mayer is up for two more Grammies, one of which is "Daughters". John is
coming back on-stage to perform the song for the crowd...

Well, that wraps up my MWSF 2005 keynote coverage....

Share your thoughts on the keynote....


2005-01-12 00:52:53
He had me way before HD
Chuck - you hit every point and with great clarity. But I think the the first sentence out of Steve's mouth left the greatest impact for me... "I'm really glad to be here."

He meant it on a number of levels, but you know he likes where Apple is today and the energy in and around MacWorld has some of that sweet flavor of old... watch out baby you haven't seen anything yet... nothing like 4.5 million iPods in 4th qtr. (500% increase year to year).

I'm sure having one of our games (Marble Blast Gold) shipping on Mac Mini colors my perception, but was a great day to be at MacWorld.

Jay Moore

2005-02-16 06:58:13
Steve Jobs Keynote
Was just wondering if anyone knew who was responsible for the staging of the HD
projection system at the Keynote Presentation of Steve Jobs. Looked like they used a Vista Montage system but wanted to get some more details on the
company and systems they used. If you don't know, could you lead me in a direction that I could find out. Thanks in advance.


Will Avgerakis
Director, The MultiMedia Group
American Institute of CPAs
Harborside Financial Center
201 Plaza Three
Jersey City, NJ 07311
(201) 938-3492