Good morning. Good morning. Good morning. Thanks to everyone for joining us this morning. It's been an incredible year. And tremendously busy already, but we've got a few more things to share with you before we close out the year.

As you saw from the video, we had an amazing reception to the iPhone 6 and iPhone 6 Plus launch. The stores were absolutely electrifying with energy. It was unbelievable. There was no better place on earth to be. These phones are the best phones we've had ever created.

And the reviews have been off the charts. Doesn't get any clearer or any better than this review from one of the industry's preeminent reviewers. Walt Mossberg said simply, “You have a

"WEBVTTKind: captionsLanguage: enGood morning.Good morning.Good morning.Thanks to everyone forjoining us this morning.It's been an incredible year.And tremendously busy alreadybut we've got a few more thingsto share with you beforewe close out the year.As you saw from the video,we had an amazing receptionto the iPhone 6 andiPhone 6 Plus launch.The stores were absolutelyelectrifying with energy.It was unbelievable.There was no betterplace on earth to be.These phones are the bestphones we've had ever created.And the reviews havebeen off the charts.It doesn't get any clearer orany better than this reviewfrom one of the industriespreeminent reviewers.Walt Mossberg said simply,\"It's the best smartphoneon the market.\"You can't hope forbetter than that.Now, with great reviews anda great customer response,it's no wonder that theseiPhones have become the fastestselling iPhones in history.And the first 30 days, wehave set a new high watermarkfor the most orders takenand I don't mean by a little,by a lot, a whole lot.Our rollout around theworld is going well.In fact, by the end of thisweek we'll be in 32 countriesand just in a few hours fromnow, we will launch in Chinawith support for TD-LTEand FDD-LTE, iPhone 6and 6 Plus customerswill have accessto China's fastest networkson all 3 major networks.This is the very first timewe've launched a new iPhoneon all three networks and we'redoing it perfectly alignedto the early stages ofChina's huge 4G rollout.We couldn't be more excitedabout this and I will tell youthat the preorders as you mightguess have set a new record.We can't wait to get started.With what's going on inChina, what's going on hereand the other countries aroundthe world and all of the reviewsand the customer response,this is our biggestiPhone launch ever.So, that's a quickupdate on iPhone.Now, the iPhonesalso get the benefitof another major announcementthat we made last monthand of course I'mtalking about Apple Paywhich is an entirely newway to pay for thingsin stores and in apps.Apple Pay is built right intoPassbook integrated right inand everything you need isbuilt on iPhone 6 and 6 Plus.It's an easy, it'ssecure and yes,it's a private wayto pay for things.We think that it isgoing to be profound.We're getting goingin the United States.We've got all three majornetworks supporting usand we have all of the nation'stop banks supporting us.And just since last monthannouncing this we have signedanother 500 banks.They will be rolling outsupport later this yearand early next yearshowing the supportand the enthusiasmaround Apple Pay.We've got many ofthe largest retailersin the country supportingus and as you might guesssince we announced lastmonth, there's even morethat will be rolling outbetween now and end of the year.Now, Apple Pay alsoworks online in apps.You can buy products andservices right in the app.And it's pretty simple.Find those pair of Beatsheadphones you want,and boom, you've bought them.I've been wantingthis a long timeand Jimmy won't get me a pair.We've got a lot of peoplebehind us here as well.A lot of great apps anda lot of great developersand as you might guesssince last month,many more people had committedto rollout between nowand the end of the year.So, we believe ApplePay is going to be huge.It's going to change theway we pay for things.And, I'm excitedto announce todaythat we are beginning on Monday.The journey beginsand we can't wait.Now, also last month,we announced an entirelynew category.Of course I'm talkingabout Apple Watch.It's the most personaldevice we've ever created.You can wear this powerfultechnology right on your wristand it's just as muchabout personal expressionas it is about functionality.We've had great receptionfrom the tech community.But we've also had greatreception from the healthand fitness community.And, by people who knowa lot about fashionand style even more than I do.In fact, this monththe Apple Watch ison the cover of Vogue China.We are really proud of this.It's an incredibleimage and we're so proudto be associatedwith Vogue in China.Now, as we showed you lastmonth, we have been workingwith selected third partydevelopers on Apple Watch.And, like BMW, like AmericanAirlines, like Starwoodand they've created some reallyunique personal experiencesfor Apple Watch.I'm pleased to tell you todaythat we have developed WatchKitwhere many other developerscan join this partyand we are rolling outWatchKit next month and timefor developers to really do somefantastic work before we beginshipping Apple Watch.We are-- we can't waitto see what amazing experiencesthey'll come up with.Now, Apple Watch will beshipping in early next yearand every day I lookforward to that day.So, that's some quick updatesaround iPhone 6, iPhone 6 Plus,Apple Pay and Apple Watch.They join an incredibleproduct lineup onethat I would call ourstrongest product lineup ever.Each of these products arenot only individually the bestin class within its categorybut they've been designedto work seamlessly together.And this is made possible by themost advanced operating systemson the planet, iOS8 and OS X Yosemite.Today we've got some terrificupdates on both of theseand to tell you all about them.I like to turn this stageover to Craig Federighi.Craig.Good morning.Well, iOS 8 has been out forjust under a month and I'dlike to give you a quick update.Now, iOS 8 of course is amajor new operating systemfor iPhone, iPad,and iPod touch.And the early reviewshave been just great.The Wall Street Journal saidthat \"iOS 8 pulls out aheadof the competition by leveragingthe greatest strengthsof the iPhone: its appand its ecosystem.\"But what's even cooleris just how manyof our customers arealready using it.You can see that injust under four weeks,nearly half of iOScustomers are running iOS 8.Now, if you consider thatin combination with iOS 7,that means that 94 percentof iOS users are running theiroperating system that shippedin just over the last yearwhich means they'regetting the latest featuresand all the latestsecurity protections.Now, the situation withother mobile platforms issomewhat different.So, when you look at Androidfor instance, the vast majorityof customers are running anoperating system that's morethan two years old.And if you focus just onKitKat, the latest release.After 313 days, it achievedjust 25 percent penetrationof our user-base.iOS 8 has nearly doubledthat in just 26 days.We couldn't be happier.Now, iOS 8 is a majorfeature release with somethingfor all of our customers.Things like TapToTalk, and easylocation sharing in Messages.Our new QuickType keywordwith smart predictivetyping suggestions.And Family Sharing that makesit easy to share your calendars,your to-dos, your photosand even your purchaseson the App store andthe iTunes store.But what really sets iOS 8apart is all the incredibletechnologies that it puts inthe hands of our developers.It's amazing whatthey've done with them.Let's take a look.We'll start with extensions.We've seen an absolute floodof updates to the App storewith applicationsimproving their functionalityvia extensions.So now, with iOS 8, whenyou swipe down from the topof your phone to getinto your today view,you have access not just tothe system's built in widgets,but also these great thirdparty widgets as well.And when it comes to sharing,you of course have allof the system sharingoptions but also thoseof the third partyapps you use the most.And so, with just asingle tap for instancefrom almost anywherein the system,you can post to Evernote.Now, we've also added supportfor third party actions,the ability to edit your photosusing third party filterswithout even leavingthe photos app.And access to your Documents.Not just on iCloud, butalso in Box, in Dropbox,and just about any other boxwhere we happen toput some files.Now, we also have supportfor third party keyboards.So, whether you like to typeby swiping your finger allover the screen or enrichthe life of your friendswith sending them animated gifsor communicating yournative language of Klingon,iOS 8 has you covered,believe itor not this is actuallyin the App store.SoGo Klingon.So, next up, HealthKit.Developers reallyembraced HealthKit.So, when you're taking arun, or cycling with Strava,all of the data about yourworkout, activity data goesinto your Healthprofile in HealthKit.With apps like Lifesumthey are ableto combine activityinformation with informationabout your eating habits to makea custom diet recommendations.And then you have apps likeSharecare, AskMD which are ableto take your profileincluding things like datafrom your Bluetooth scaleor other sensors to make--to offer personalizedhealth consultation.Now, we've also givendevelopers access to Touch ID,which means now if youwant to get into eTradeor unlock your passwords inone password, you can do itwith a security and theconvenience of your fingerprint.And then, there's Metal.With Metal, you getdirect access to the powerof the 64-bit A7, A8 and theamazing GPUs they have inside.And so, whether you're racingaround the track in Asphalt 8,creeping around the rooftopsin Assassin's Creed Identity,or slashing your waythrough Gods of Rome,you can do so withunparalleled visual fidelity,things you never seenon mobile platforms.Next is Swift.An entirely new programminglanguage that we introducedto take development of iOS andOS X apps to the next level.Now, Wired said that, \"Swift'simpact could be greaterthan any other language thathas sprung up in recent years,and it may achievemass adoption fasterthan any languagein modern history.\"And from everything wecan see, they are right.We've seen a flood ofapplications written in Swift,in the App store already.And our enterprise partner, IBM,has completely embraced Swiftfor their customenterprise applications.In fact, they've said that,\"Swift is incredibly interactiveand intuitive, giving thethousands of developerson our teams the flexibilityto create powerful appsthat will transformenterprise mobility.\"There will be many new Swiftprogrammers being mentored everyday because major universitieshave incorporated Swiftinto their programmingcurriculumto teach new studentsthis awesome new language.That's a quick update on iOS 8.Now, let's turn ourattention to iOS 8.1.Now, needless to say when weput a major new operating systemin the hands of hundredsof millionsof users we do get alittle bit of feedback.And that takes usto improvements.So, one of our major goalsof course with iOS 8.1 isto address the top sources ofcustomer feedback and of courseto even bring back thebeloved camera roll.But not just that, we've addedsupport in 8.1 for Apple Pay,on iPhone 6 and 6 Plusand the public betaof iCloud Photo Library.So, now, everyone canhave every photo you takeon all of your devices.And this means that anyorganization you do,or any edits you make on anydevice are instantly reflectedon all of your devices.This is true on youriPhone, your iPad,and you can even access yourphoto library on your Mac,or on your PC via icloud.com.Now, this isn't justyour photos,it's also your videos as well.And they're on their originalformat and resolution.No downscaling.It's available inpublic beta with iOS 8.1and it uses your iCloud storage.So, your first fivegigabytes are free,for just 99 cents youcan get 20 gigabytes moreand you can get a massive200 gigabytes for just 3.99.So, that's iOS 8.1 anda quick update on iOS 8.Now, let's turn toOS X and Yosemite.So, it was just this Junethat we publicly unveiledYosemite to the world.The reception hasbeen fantastic.We've had over a million membersof the Mac community signup to be part of theYosemite public beta.And the reception hasbeen just awesome.We're all in love with thegorgeous new design of Yosemite.It's just amazing.Has this gorgeous dockwith these vibrant icons,it's so precise, thisclean and consistent useof typography throughoutthe system.Notification Center ismore useful than ever.Let you get it allof your widgets justat a glance includingthird party content.And Spotlight has beenabsolutely super charged.So now, in addition to searchingcontent locally in your Mac,it also taps in tosources on the internet,things like maps and Wikipedia.Just right therewhenever you need them.And of course allof the apps builtinto Yosemite have beencompletely revitalizedwith this new UI.So, Safari for instance, allthe power of the world's most--powerful browserare packed rightinto that elegant toolbarright there at the top.If you want to get itall of your favorites,just tap in the addressfield, they're right there.And if you start typing,you don't just getGoogle search suggestions,you also get Spotlightsuggestionswhich often provide theanswer to your questionwithout even completing thesearch, it's just really fast.Now, Safari is better atsharing than ever as well.You can share the systemsources and through extensionsto third party sources aswell right with in the app.Safari users alsoof course love tabs.And so, we have a great new tabview provides a bird's-eye viewof all of your tabs, stacks,multiple pages from the sitesinto stacks like this and youget access to tabs you've openedacross all your devices listedright there along the bottom.But of course Safariis also blazing fast.In fact, when you look atthe kind of JavaScript that'sin typical websites, Safariis literary six times fasterthan other browsers.And when it comesto battery life,no browser can compareto Safari.If you look at our 13-inchMacBook Air for instance,browsing Safari getsyou more than two hours,greater battery lifethan other major browsersand with Netflix streaming,three hours longer.Safari is just incrediblyefficient.Now, our Yosemitedesigned extensive courseto Mail as well.It's not just gorgeous butit's more functional than ever.Now, you're replying to amessage and you need to fillout a form, you can use mark up.You can even fillout your signatureon a form right thereinside the message.It's incredibly convenientand you can also markup your drawings as withyour pictures as wellwhich is a fantasticway to communicate.Now, Mail also now has Mail Dropso you can send absolutelyenormous attachmentsup to 5 gigabytes securelyencrypted through iCloud.Messages has a beautifulnew design--excuse me, for Yosemite as well.And it has powerful featureslike named group chats,easy location sharing andreally convenient accessto all the photos that youshare in your conversations.iTunes has been updatedfor Yosemite as well.It has a convenient newshelf across the top with allof your recent additionsto your library.And then there's iWork.It's the most populardesktop productivity suiteacross all Apple devicesand it's a got a greatupdate for Yosemite.In addition to this beautifulnew design, it's more functionalthan ever with the side barthat summarizes all the commentsand documents that you haveunder review, we have an updateto Numbers, lots of poweruser features like the abilityto transpose tablesin a single step.And then there's Keynote with acustomizable presenter displayand these cool new text effects.It's really nice.So next, there's iCloud Drive.So, with iCloud drive, you canstore any file in the cloud.Its accessible rightfrom the Finder,right from the side bar there,and you get access theapplication folders of allof the applications on your Mac.But not just that, also thedata that you have scoredfor application onyour iOS devices.And best yet, you can put anyother files you want in thereand organize howeveryou want in folderswith tags and search them.And then access themacross all of your devices,your iOS devices, your Mac,and if you're having to workunder extreme duresseven a Windows PC.So, now--So, those are just someof the wonderful new userfeatures in Yosemite.But actually, what makesboth Yosemite and iOS 8so special is the waythat they work together.Now, working together issomething we've been focusedon for years now and atthe center of it is iCloud.It's almost easy to takefor granted the way wecan edit our contactsor update our calendar, orto-do's or Safari bookmarksand we just know that it'sgoing to be available to usacross all of our devices.And now, with Yosemite andiOS 8, all of our documentswith iCloud Drive and all ofour photos and videos are syncedwith our iCloud Photo Library.We've also advanced ontechnologies for our devicesto communicate inproximity, taking advantageof the most advanced Wi-Fiand Bluetooth lowenergy technologies.So now, with the latestMacs and iOS devices,you can actually AirDropbetween iOS and OS 10.And you can AirPlayto your Apple TV evenwithout connectingto any Wi-Fi network.It's really awesome.But the area where I thinkwe've really taken itover the top is somethingwe call Continuity.Now, with Continuity, yourdevices are aware of each otherand allow you towork at any momentwith the device that'sright for that time.It starts with Handoff whereyou can work on one deviceand just pick up where youleft off with just a swipeacross the lock screenof another.And there's Instant Hotspot,so you can take advantageof the cellular data connectionof your phone from your iPador your Mac without eventouching the phone in your bag.There's the ability to receivetext messages on any device.So, not just your iMessagesbut also you can sendand receive SMS fromany of your devices.And finally, you can also makeand receive regulartelephone calls using your Macas a speakerphoneusing your phone.It's really magical.And to drive that home, I'dlike to give you demo now.All right.Well, so let's take a look atlife in the world of Continuity.Now, Tim has sent me anote here about doublingdown on secrecy at Apple.We want to preserve the samekind of airtight securityor secrecy rather that makes athe announcements at an eventlike today a shockingrevelation to all of you.So, I've been tasked tocreate a new employeeorientation presentation.And so, I've been taking somephotos around campus about someof our new secrecy measures.We're tightening thingsdown a little bit.So, we see redactingsome things in the menu.We don't want any leaks there.We've upgraded the door toJohnny's lab and, you know,I should favorite some of thesephotos because I think I'dlike to incorporatethem in my presentation.We're saving a stepwith the printer,just go straightinto the shredder.And of course, we'veincreased the number of laserson the path to the bathroom.So, that's good.So, I can now incorporate thisright here in my presentation.We've got my cover slide hereand this looks like a good placeto add that new content.But, you know, I actuallyhave my iPad right here.And what's really greatis with Continuity,I can just pick upwhere I left off.You know, it's in the lowerleft hand corner of the screen.My iPad is aware of whatI've been doing on my phone.There's little keynoteicon, I can swipe upand it takes me rightto that documentin exactly the placewhere I was working.So, it knows right where I am.I'm just going to openthis up and we'll seethat I can see my photos here.Let me try that again.There we go, they are mythey're the photosthat I just favorited.And just to show you thatthis is all completely live.I'm going to go back intomy photo library here.I'm going to favorite thislast photo with the lasers,give it a little heart.And you'll notice here in--on the iPad, it shows upautomatically right there.That's super cool.So, let's just add thatphoto to my presentation.And, you know, whileI'm working on my iPad,my phone can evenbe across the house.And if I were to receivean SMS for instance,I could pick it up--oh, here it is.What a coincidence.Right here on my iPad.This is a regular SMS.Now it says, \"Hey Craig, checkout the latest Apple rumor.\"Uh-oh, well, these are usuallyhave no merit at allbut I'll just checkin as what this is all about.Apple \"Spaceship\"actual spaceship.OK. Well, it turns out in thiscase unfortunately they didnail it.So, this will bea good one to addas cautionary taleto my presentation.Now, I could do that righthere in my iPad but, you know,I've got this beautifulMac right here.Let me just pick up whereI left off on a Mac.So, we'll just look at theMac display and you knowas the Mac is aware ofwhat I've been doing.You see right down here, it saysthat I was usingSafari in my iPad.I click and it takes meright to that same page.It's just magical.And of course, I can getto my presentation as well.We see I have iCloud Driveright here in the Finder.And there's my keynote folder.And of course there'smy presentationon secrecy at Apple.So, I can open that up andof course it takes me exactlyto where I was inthe presentation.So, let's add my picturefor about Controlling Leaks,I can just drop thatone right in there.That's really cool.And so, next, I'm going to moveon to the next slidein my presentation.And, you know, I heard thatour new Chief of Secrecy,Steven Colbert has some concernsabout his part ofthe presentation.And so, actually, Ican give him a callfrom my Mac righthere at his office.So, let's just type upSteven, there's his work numberand I can just dial righthere and it's going to dial--my Mac is going to actuallymake a speakerphone callthrough my phone.And by the way, yeah, I havethe coolest job in the world.I get to talk to Steven Colbert.Hello?Hi Steven, it'sCraig from Apple.I'm sorry, I don'trecognize that name.Oh, oh, right.Hello Red Delicious, thisis Granny Smith, over.Is the squirrelin the basket?Roger. Foxtrot ThunderboltRetina Swift Lightning.OK. The line is secure.Glad you called today.II have some critical feedback.I have some very criticalfeedback on the contentof your presentation todayspecifically I've got a bigproblem with my title.>> Well, Chief ofSecrecy officer,that's a pretty impressivetitle.>> I just don't thinkit's big enoughto capture how importantmy role is at Apple, OK?Let me run this one by you.Hear me out.Supreme Allied Commanderof Super Secrecy.I don't know.Craig, if Supreme AlliedCommander was good enoughfor Ike, it's goodenough for me.OK it beat Hitler.I will also acceptIntergalactic Chancellor.IntergalacticChancellor, how about--Yes.Supreme Commander?You let him know?Who?I'm sorry.I mean, Chairman Honeycrisp.Yes. Absolutely.I will let the chairman know.Glad you keep it my way.Now, please, get back to workbecause you know what I seewhen I look at my wrist?My wrist, where's the watch?Chop, chop, I'm Jonesingfor some jewelry, Craig.I'll get right on it Steven.>> All right.Over and out Granny Smith.>> Over and out Red Delicious.I'm glad we were ableto sort that out.So, we-I have one more slide towork on my presentation here,the-- oh, an emailupdate from Philabout a new badging protocol.So, check out this video.It really demonstrates Apple'scommitment to badging excellent.Well, that's great.I'm going to drop thatone in my presentation.And, you know, I'm sureit's a great video.So, I'd like to play this now.And what's really coolis I have an Apple TV.We can bring that up here and wecan see it can actually AirPlayfrom my Mac to my AppleTV just like this.And project my presentationthat wayso we can enjoy thepresentation I put together.And of course to controlthe presentation, you know,the best remote you haveis the one you're wearingon your wrist.So, I'll just bringup a remote here.Let's see, so thereis our Secrecy Team.Of course, we've got the path tothe bathroom, controlling leaks,our new Supreme Commander.And let's take a lookat that video from Phil.See you at lunch.>> Thank you.Now, I have a fullunderstanding of Continuity.All right.So, this is justa quick overviewof the amazing newYosemite releasefrom its beautiful new design,powerful spotlight search,iCloud Drive, the amazingand elegant new Safariand of course, theseContinuity features.Now, there's much,much more to Yosemitethat I can possibly cover todaybut the good news is Idon't have to because now,all of you can getaccess to Yosemiteon the Mac App Store today.And you know what?It's available for free.There's also 8.1 which hasits support for Apply Pay,also iCloud Photo Libraryand Continuity availablefor download this Monday.And it's free as well.Finally, iWork, anupdate for OS X alsofor iOS also availabletoday and also free.And that is my quick updateon iOS 8 and OS X Yosemite.Thank you.Back to you Tim.>> Thanks Craig.It's really great tohave Steven on board.I hope he can do abetter job than I've doneon controlling .I'd like to now talk about iPad.The iPad is this simpleand magical device.It's always been a unique blendof simplicity and capabilitybut while the iPadhas beautifully simpleon the outside sincethe very first one,it has advanced technologyjust jam-packed on the inside.From Apple's customdesigned powerful chipsto the ultra-fast Wi-Fiand cellular connectivityto the incredible eyesightand face time cameras.The technology is jam-packedin this incredibly thinand light packagethat you can takewith you everywhere yougo and use all day long.And as we packed moreand more power and moreand more performance andmore capability in iPad,our customers and developershave begun to use itin ways we could not imagine.And now, as you lookaround, iPad is everywhere.It's transforming the waywe work, the way we learn,the way we play, and it'stransforming the way wecommunicate, with so many peopleusing iPad for so many things,in so many different places.It's not surprising thatwe've sold more iPadsin the first fouryears than we've soldat any product in our history.In fact, we've sold over 225million iPads around the world.To put this in alittle more perspective,if you look at the top fourby volume, PC manufacturers,the number of sales that they'vedone for the last 12 monthsand compare that to iPad,iPad beats them all.And this is their entirePC lineup every notebook,every desktop, every twoin one, every all in one,every toaster refrigeratorin one, all of them.This is pretty fantastic andnot by a little but by a lot.But what's more importantto us isthat iPad has consistentlybeen rated number onein customer satisfaction.This is what makesour heart singand iPad mini Retina has scoredan unbelievable 100 percentcustomer sat.These numbers are-- youjust don't see these numbersin customer sat.And so, why are so manyiPad users so satisfied?We think it comes backto this unique blendof simplicity and capability.And the fact that you can do somany things on iPad and you havesuch a great experiencedoing it.At the root of this is thatwe have over 675,000 appsin the App Store thathave been custom designedto take advantage of the bigbeautiful screen on iPad.And this is a huge advantageover our competition.The Verge said it well,\"A tablet is only as goodas what you can do with it,and thanks to the hundredsof thousands of apps for theiPad Air, you can do morewith it than any other tablet.\"This was one of the reasonsthey named the iPad Air,\"The best tablet you can buy.\"So, iPad Air is numberone in customer satbut it's also numberone in usage.It's number one in education.It's number one in enterprise.It's number one in consumer.When we launched the iPadAir just a year ago we didso by showing that all ofthis power of the iPad wasin a design that was so thin.It was thinner than a pencil.You may remember this,so what do you dowhen you make the besttablet in the world?How do you make it better?You do this.ThisThis is the new iPad Air 2.It's unbelievably gorgeous,and look how thin it is.Can you even see it?It is so incredible.And to tell you more about it,I'd like to invitePhil Schiller up.Phil.Thank you, Tim.Thanks.Thank you.Well, good morning everyone.I'm so excited tobe able to tell youabout the incrediblenew iPad Air 2.It is the thinnestiPad we have ever made,just 6.1 millimeters thin.That's 18 percent thinnerthan the first iPad Airwhich was already 20 percentthinner than the iPad before it.It makes it the world'sthinnest tablet.It's incredibly beautifulto hold all day long.The progress the team has madeover just the last coupleyears is unbelievable.Here is the original first iPadnext to the new iPad Air 2.The new iPad Air 2 is so thinyou can stack two of themand still be thinnerthan the original iPad.It is amazing.What the team has done topack so much technologyand performances into thethinnest iPad is unbelievable.So, how did they do it?Let's start with the display.The display is made up ofa number of components,primarily the LCD, thetouch layer and glass.And in every iPad there'sbeen a micro thin layer of airbetween each of those layers.We're not satisfied with that.The team has optically bondedthose together, laminated themto make a singlecomponent with no air gap.And that reduces theinternal reflectionand makes a sharper imageand a thinner display.It makes the graphics of thetext feel like they sit righton top and you're touchingthem with your finger.It's really beautiful.In addition, we've now createdan anti-reflective coatingfor this multi-touch surface.This has never beendone in a tablet before.It reduces reflectionsby 56 percent making it evenmore beautiful as an image.So, it is an incredible display.It is the only tablet thathas this kind of a surfaceand has the lowestreflectivity of any tablet.So, this would be the besttablet display you've ever seenand the thinnest tablet,but there are so much morethat makes the iPad Air 2 great.And it starts withthe brains inside it.A whole new generationchip, A8X.You've heard of the A8 chip withthe iPhone 6 and iPhone 6 Plusand it's blowing people away.But this is a new versioncreated specificallyfor iPad Air 2.It is unbelievable.It's a second-generation,64-bit architecture.It has 3 billion transistors.The iPad Air had an A7with 1 billion transistors.Three billion, it deliversup to 40 percentfaster CPU performancefor most of your apps.Some apps can achieve2X performance in CPU.And the graphics areout of this world.Two and a half times faster whatwas already the industry readinggraphic performance.Just look what theteam has done.The original iPadstarted with an A4 chipand now we're 12 times fasterthan that with iPad Air 2.And check out thisgraphics performance.We're now at 180 times faster.Add to that the work thesoftware team is doingwith technologies like Metal sothat developers get full accessof that performance withoutany software overhead.We're able to now deliverconsole level graphicsin the palm of your hand.And that's what a lot ofthe developers are doing.We're working withgame developersand they're now bringingthe engines notfrom their mobile gamingbut from their desktop gamingsystems right on to iPad Air 2.And all these power insuch a thin package,the team has worked toensure that you havethat great all day batterylife, 10 hours of battery.So you don't have togive up any of that.Along with the A8X, we havethe new M8, motion coprocessor.This works to read data from thesensors like the accelerometerand gyroscope and itinstantly calibrates itso all your apps getincredibly accurate data.And there's alsothe new barometerfor measuring relative elevationand developers can takeadvantage of that too.But perhaps, the featurepeople love the mostabout their iPads is the camera,the built-in iSight camera.And some people havebeen surprised by thatbut it really makesa lot of sense.The iPad is the best view finderfor composing yourphotos and your videos.You can see the scene, youcan take incredible photos,you can edit them right on thedevice and share them instantlywith people around the world.And not only do we all liketaking pictures and videosbut developers like takingadvantage of these camerasto build incredible applicationsthat haven't existedon any other platform,things like applicationsfor helping coaches traintheir players with coaches' eyeor consumer apps likePrizmo that lets you scanand translate documentson the fly.Or apps like Caribu that leta parent read with face timeto their children from anywherearound the world, or Homestylerthat lets you create a virtualreality image of your own homethan lay out the furnitureand interior design of it.This and hundreds of moreapplications take full advantageof the cameras we'vebuilt into the iPad.And they, the developers andthe customers who use this app,they're going to lovethe new iSight camera.It's a huge jumpforward for iPad.It's a full new 8megapixel iSight camera.It has large 1.12 micron pixels.Has a fast 2.4 aperture thattakes photos at 1080p HD video.It has a great sensor.It's combined withthe Apple design lensbut really what rounds it outis the brains behind it all,the image signal processingthat's done in that A8X chip.And it does an incredible job.I'm going to show you somephotos now that were takenwith an iPad Air 2,unretouched right off of it,and tell me you're notgoing to be blown awaythat these were takenwith an iPad.Look at that photo, that'sa beautiful landscape scene.You can see the qualityof the auto HDRthat creates an amazingexposure.Look at the low noisein that blue skyand it is a remarkable photo.Here's another.People are just not goingto believe these are takenwith the iPad you bringwith you to do workand you're takingincredible photos with it.Here's a shot from abovethe Golden Gate Bridge.You see the incredibleaccurate color it deliversand the great depth of field.Here's my favorite of the bunch.It's a portrait photo.The skin tones are just perfect.The background is painterly.It's an amazing photo.Of course, we alllove taking macrosand showing them to the world.Here's a great one.Look at the level ofdetail on the feathers.You can't tell, isthat taxidermy or live.Don't worry, it's live.For the first time with iPad,you can take largepanoramas up to 43 megapixels.So you take youriPad in vacation,you can share your mountainscenery with all your friends.For the first time on iPad,you can take burst mode photos.So, taking somethingthat's high speed action,you can grab it justlike this photo.Yeah, isn't that incredible.For the first time withthe iPad iSight camera,you can do timelapse.So, here's a timelapse.It's taken in Venice,you maybe recognize it.Now, there's a groupof boats that are goingto start coming down together.See there they are.That was the George Clooneywedding party that cameby as we were shooting them.Still waiting for my invitation.This we took recentlyin Albuquerqueat the balloon fiesta,that gathering there.It's a lot of fun.Yeah, it is.Also, for the first time iniPad, you can do slo-mo videos.Yeah, customers are goingto love taking these.This is 120 framesper second at 720p.Pretty cool.If you heard that audio,there's now dual microphonesto get better quality audioin your videos as well.One addition to theall-new iSight cameraand all those capabilitiesis a new FaceTime camerain front side as well.A whole new FaceTimecamera sensor,has a larger 2.2 aperture,let's in 80 percent more lightand combined with the 8X chip,you get improved face detection.For the first time, youcan do burst selfieswhich kids love to do.This chip is amazing.It does HDR with a single imagenot combining multiple images,which keeps it really sharp.And you can do videoswith HDR as well.So with all thesegreat new cameras,all these great new performance,also faster connectivity too.iPad Air 2 has fasterWi-Fi, 802.11ac with MIMO.That delivers 2.8 timesfaster performanceup to 866 megabit persecond throughput.There's also fasterLTE with more bands.There's up to 150megabit per second,that's using carrieraggregation.And has 20 LTE bands that'smore than any other tablet,so it connects athigh LTE speedson more networksaround the world.But perhaps the mostrequested featurefrom customers is Touch ID.Now like many of us, if youhave Touch ID in your iPhone,you've probably picked upyour iPad and put your fingeron the Home button, only tosee that it doesn't unlockbecause you didn'thave Touch ID.We get used to it so quickly.Well now with iPad Air2, there is Touch IDand it reads your fingerprintand quickly unlocks your iPadwithout having toenter the passcode.And it works with our stores.So you can purchase in theiTunes Store, in the App Store,and it works with thenew iOS 8 developer appsthat support Touch ID so itcan unlock Evernote or Mintor your Day One journal,just with your fingerprint.And as you know, allof us who use iPads,we're prodigious shoppers.We love to use our iPad tosit back and surf the weband make purchases and--particularly with allthose 675,000 apps,many of them helpus make purchases.And now, with Touch ID, you'llbe able to use Apple Payto make online purchases.Now this isn't for a retailpoint of sale purchase,this is for onlinepurchasing within all the apps,they're going to supportApple Pay, and there are goingto be many of themgrowing starting on Monday.So it would be the bestway to shop online.Of course, iPad Air 2 comeswith the brand new iOS 8.1that Craig just showed usand all the incrediblefeatures it has.And our developers have had agreat time using the performanceof the A8X chip and takingadvantage of all the poweron iPad 2 to do remarkablethings, and developers have too.We've given a few of themearly access to the iPad Air 2and to see what theycan do with itwith their incredibleapplications.Well, I like to show youtwo of those this morning.The first is a great team, the--two brothers started a companyin Lithuania, and they'vehad a hit applicationin OS X called Pixelmator.Perhaps you know it.It's a professional qualityimage editing application.It's been a big hit on theMac and now they're here todayto show you the workthey're doing on iPad.I'd like to bring up Aidasto tell you all about it.Welcome.Thank you.Thank you.After two years of work,we are really excitedto show the new Pixelmatorfor iPad today.It's a full featuredimage editing app.We are going to open a 4Kimage of the Arabian Desert.It's really exciting thatwe can work so smoothlywith large images like this.The new iPad handlesthose images fasterand better than ever before.We created a graphic,we're using the shadowof the actual oryx inthe sand and some textwhich we'll bringin as a new layer.I'd like to place ithere at the bottom.But you see, thereis a straggler oryxthat would interferewith the graphic.So, let's removethe oryx right now.We were able to bringour repair toolfrom our award-winningMac version to the iPadand it works fantastic.By simply brushing over theoryx, our app will take careof removing it but stillmaintain the background.That is two times faster on thenew iPad compared to iPad Air.Notice how the texture inthe sand is intact evenuntil the oryx is gone.Let's place the graphic back atthe bottom and size it to fit.Now, let's blend thegraphic with the backgroundto complement thecolor of the sand.Next, I'd like to apply afilter to enhance the colorand darken the edges a bit.We can adjust the depthand strength of the effect.Notice the very fastresponse time.So, that's a quickpeek of Pixelmatorfor iPad coming later thismonth in the App Store.The power of the new iPad isperfect for the new Pixelmator.We've seen improvementof up to three timesin many aspects of the app.It's a fantastic pairingthat would make imageediting a breeze.Thank you.>> Next, there's an excitingnew video editing applicationthat has everyone abuzz,it's called Replay.It's from a bunch of brilliantscientists from France.And to tell you all about it,I like to bring up Jeff Boudierto show you whatthey've been up to.Welcome.Thank you.With Replay, youcan use your iPadto create amazingly rich videoswithout knowing anythingabout editing.With me is my co-founderFrancois.Let's take a look.We all take so manyphotos, so many videos.Often we don't have timeto do anything with them.Like these videosfrom a trip in Utah.To make a nice movieedit out of all these,it would take mehours of work, right?Well, let's selectall these clipsand see how long it takesReplay to make a movie.Mymovie is already playing.What just happened?In one tap-- Thank you.In one tap, Replay analyzed allmy videos added beautiful motiongraphics and synchronizedeverythingto the beat of the music.OK, let's do it again,but try a different style.I love this style.Replay runs computervision algorithmsto find the best accent colorfor each video thendesaturates the rest.And with Metal, thiscode runs 20 times fasterthan using the CPU.But this style is too romantic.Let's try somethingmore vibrant.Nice.I love how Replay picksthe background colorsto match the videos.Now, I want to add a text slide.Let me show you how easy it is.How about Utah road trip?Just as easy, I canadd captions,trim videos, or reorder things.The result again is instant.We created a custom-renderingengine on top of OpenGL.And with each newprocessor, Replay gets faster.With A8X, we get four timesfaster rendering than on A7.Now, I'm really excited to showyou something never done beforeon mobile.It's very Hollywood.See how the lightinteracts with the text.I can even set the lightingcolor while my movie is playing.This effect is called volumetriclighting and Replay renders itin real time on the iPad.This is truly desktopclass performance.We believe video creationshould be easy and instant.With this new iPad and Metal,our vision becomes reality.This new style will beavailable end of Octoberand you can get Replay forfree on the App Store today.We can't wait to seewhat you'll create.Thank you, thank you.So those are justtwo examples from theover 675,000 appsfrom the App Storethat take uniqueadvantage of iPad.You can see now, the appsare doing things on iPadon a thin mobile devicethat previously would havetaken high-end desktop computersto do.And you can do thisanywhere you go.So this is the new iPad Air 2packed with an incredible rangeof new technologiesand innovation.Next generation Retinadisplay with no air gapsand anti-reflective coating.Our second-generation64-bit chip for iPad,the A8X with 3 billiontransistors.The new 8 megapixeliSight cameraand then all thoseincredible features.The new FaceTime HD camera,ultrafast 802.11AC wirelessand 20 bands of LTE for fastperformance around the world.And of course the mostrequested feature, Touch ID.All of this packed into thethinnest iPad we have ever made.You just have to hold it outsidewhen you get a chance to,to see just how incrediblethis is.It will blow you away.So if you want to get oneand if you're like me,you're just dying to,what will it cost?Well first, it comes in silver,space gray and the new goldthat you've seen here,and it starts at $499.That's the price of the previousiPad Air for Wi-Fi with 16 gigs.$599 for 64 gigs, that's$100 less than before.And $699 for 128 gigs, again$100 less expensive than before.So, much more power,great new features,thinner device andmore affordable.There are also cellularversions for $130 more,and that is the new iPad Air 2.At the same time, wehave an update todayfor iPad mini as well.We call it iPad mini 3.It's the third generationof iPad mini.It comes in silver,space gray and gold,and of course it includes thenew Touch ID feature as well.It will start at $399, $499 and$599, new memory configurations,and have cellularversions as well.And both iPad Air 2,iPad mini 3 are madein the most environmentallyfriendly way possibleand we're really proud of thisand I always wantto part with that.So those are the twonew lines of iPad,iPad Air 2, iPad mini 3.We're going to keep iPad mini2 and iPad Air on the lineand reduce them by $100so everyone has somethingat each price point, so thoseare more affordable as well.And the original iPad mini,we're going to continueto sell it now atour all new priceof just $249, previouslywas $299.So that now means our lineuphas the lowest price point everfor iPad, $249, itmeans iPad 2--mini 2 and iPad Air hadbeen reduced by $100.We have an all newiPad mini 3 and all--a new iPad Air 2 at thehigh end with more featuresand capabilities in the thinnestiPad we've ever offered.So, a lot of changes upand down the entire line.To get iPad mini 3 andiPad Air 2, you can startto order them tomorrow.We'll take preorders tomorrow,October 17th, and they'll beginto ship by the end of next week.So that's iPad.I think this graphic says alot in a very simple imageabout the things we create,how beautiful they are,how incredibly advancedthey are at each category,and how each one ispushing on the nextto be even betterand to do even more.As iPad continues to evolve andchallenge what a computer can bethat you can hold all daylong, it then challenges usat the higher end to movethose forward as well.And nobody is betterat that than Apple.Let's talk a little bit aboutwhat's happening with the Mac.We have the bestlineup we've ever had.It's the 30th birthdayof the Mac this year,and these are the best ever.And their results are fantastic.If you look at Mac comparedto the rest of the industry,this is based onthe last quarter,the Mac grew 18 percent yearover year while the restof the industry didn'tdo as well.And the reason is very simple.Our customers love their Macs.This summer we updatedMacBook Air.It got faster, betterbattery life, better value.People bought them like crazyand the reviews wereoff the charts.I think this one said it best.From the Wall Street Journal,\"The MacBook Air is thebest laptop ever made.\"Who are we to argue?For customers who want ahigher level of performance,they love the MacBook Pro.It delivers all day batterylife, incredible performanceand best of all, thatbeautiful Retina display.It's been really funto watch the migrationof the Retina display.It started with iPhone, wemoved into iPod Touch and movedinto iPad and then into theMac with the MacBook Pro.Well today, we'rereally happy for youto see the continuing marchof this incredibleRetina technologyand the next step we'regoing to take with it.So yes.We are so excited to tell youabout the all new iMacwith Retina display.There has never been adesktop display like this.It is simply stunning.We have never seen a level ofdetail in a desktop displayas you'll see with this iMac.It is truly remarkable.It's a 27-inch display thathas 5120 pixels by 2880 pixels.If you're really fastwith math you knowthat is an insane 14.7 mega--million pixels on one display.It is the world's highestresolution display.This is an incrediblefeat of engineering.We call it the Retina5K display.So to put it in context, weall look at HD TVs all day.They're 1920 x 1080, that'soverlay those pixels on topof the retina 5K display.There are seven timesmore pixelson the Retina 5K displaythan on your HD TV.Now let's compare that to thenew standard 4K digital cinema.And there it is, 4096 x 2160,the Retina display still has 67percent more pixels than that.It is stunning.What's more remarkable isthe work the engineering teamto fit those 14.7 million pixelsinto our beautiful iMac design.It's just five millimeters thin.It's an incrediblefeat of engineering.It took a lot of invention.It starts with the chipthat controls the display.It's called a timingcontroller or TCON.One didn't exist to drive thisdisplay quickly and efficientlyso our team had to invent one.It started with having to createa new material, oxide TFT,to be able to charge thosepixels quickly and evenlyacross the whole display.And then taking technologyfrom our Retina iPad display,organic passivation,to reduce cross-talkbecause those pixels aregetting so close together,to keep the image reallysharp and beautiful.It took building a newbacklight technology,an LED backlight that'sjust as bright as previouslybut consumes lesspower and is thinner.And all put together,this new displaywith four times thenumber of pixelsof the previous version usesalmost a third less energy.That's incredible work.And to make it evenmore beautiful,we use our Apple photoalignment technologyto give higher contrastratios on access,and a new compensation film soit looks better off access too.It is a remarkablefeat of engineeringand the most beautiful desktopdisplay for everything you do.When you read text, it looksincredible, crisp and sharp,with magazine quality.If you work with photos,you have never workedat a desktop display with thislevel of detail in your photos.When you love to edit videolike here in Final Cut Pro,you've never had the abilityto do 4K video editing,pixel for pixel with room leftover for your binsand timelines.And if you're Craig andyou've worked so hardon a beautiful version of OS X,there has never been a displayto show off that great newuser interface as beautifulas this new Retina 5K display.We have a brief video to tellyou a little bit more about it.>>The Mac enables peopleto do amazing things.And for many people, it's themost important creative toolthat they use.And what we really lovedoing is making it better.On an iMac, the experiencebegins with the display.And now we're really proudto introduce the first iMacwith the Retina 5K display.With 14.7 million pixels,this goes way beyond HD.It gives the ultimate all-in-onecomputer the ultimate display.And it made you seeincredible detail on a scalethat just hasn't beendone before on a desktop.We started by movingto an oxide TFTor thin film transistor panel.Oxide TFT is needed to getthese many millions of pixelsto charge quicker andthen stay charged longer.We manufactured an oxide TFTbased display more preciselythat had ever been done before.One of the great results isthe vivid brightness you seeacross the whole screen.Communicating to all ofthose pixels requires a lotof brainpower.In a display, it's called thetiming controller or TCON.The TCON tells every pixelwhat to do and when to do it.For this new Retinadisplay, a TCON didn't existthat could do the job.We had to create it, this singleincredibly advanced chip that'sresponsible for directingmillions of pixels.Whether you're lookingat photos or textor even editing 4K video,the picture is stunning.We've also improved the contrastratio so you get brighter whitesand darker blacks fromany viewing angle.>> When I'm working on imagery,I need to see the details in itto make accurate judgments ofcolor and exposure to be ableto make it look on screenexactly how it appeared to mewhen I saw it in reality.>> For this displayto be possible,millions of pixelshave to be drivenwith more energy efficiency.We use power saving LEDsand organic passivationwhich enables a clear accuratesignal to be sent to each pixel.This dramatically increasesthe display's performanceand image quality while actuallydecreasing its power usesby 30 percent.>> Every photograph Ishoot, there is so much workto be done beforeit's really finished.To get there, the tools I useneed to be powerful and precise.And now that I've had a chanceto experience the sharpnessand the resolution andthe incredible tonal rangein the new iMac, I justcan't imagine a better toolfor the work I do.>> With its stunningRetina 5K display and allof this new capability,the new 27-inch iMac isby far the most amazingiMac we've ever built.So not only havewe built an iMacwith the most incredibledisplay we've ever made butthroughout the product linewe've updated everythingto make it the best iMac ever.So if you look inside it,it has the fastest chipwe've ever put in an iMac.It starts with a 3 and a halfgigahertz Intel quad-core i5but upgradable to 4 gigahertzi7, the fastest ever in an iMac.The graphics, a Radeon R9M290X, upgradable to a 295X.So how fast is that?The previous fastest chip inan iMAac was 2.4 teraflopsto compute power, not bad.This is 3.5 teraflops,45 percent fasterthan the previous version.I/O is faster as well,it is now Thunderbolt 2,20 megabit per secondbin with .It's faster storage, standardterabyte Fusion Drive.And it's all built togetherlike all of our productsin the most environmentallyfriendly manner includingsupporting the latestEnergy Star 6.1.So it's a very efficientdesktop product.So what does this amazingstate of the art new iMac cost?Well, let's make a comparison.If you've ever tried tobuy a high end display,for example a new4K IPS TFT display,not quite as manypixels as the iMac,not quite as beautifuldisplay but still not bad.You know that these range inthe price of $3000 or more.So that's why we're reallyexcited to tell you the new iMacwith Retina 5K displayis going to cost $2499.And for that, we throwin an entire computer.It's got a 3 and a halfgigahertz i5 standard,Radeon R9 chip, 8 gigs of memoryand a terabyte Fusion Drive.And it starts to ship today.So that is the new iMacwith Retina display.It joins the restof the iMac line.A 21 and a half inchiMac starting at $1099,27-inch iMac starting at$1799, and the new iMacwith Retina 5K display at $2499.I can't wait foryou all to see itand experience the incredibleimages that it produces.There has never been adesktop computer like it.I think it's the perfect fittingto the 30th birthdayof Macintosh.We have one other small updatetoday and that's the computerthat a lot of our customers loveand we're gettingthe first back.It's called Mac mini.Perhaps you've added oneto your own home network,but we have a wholenew version today.It's updated withfaster processors,fourth-generationIntel Core processors,faster graphics IntelIris and HD Graphics 5000,faster storage, PCIe-based flashstorage, faster Wi-Fi, 802.11acand now has two Thunderbolt2 ports, so it's packedwith all the I/O you needin a very small design.And most important to us,it is not only compactedas the world's most energyefficient desktop computerwhich is really great.A lot of customers choosethis for their first Mac.Previously, Mac ministarted at $599.The new faster more capableMac mini starts at just $499.And it's shipping today as well.So that's our updatefor the Mac.Let me turn it back to Tim.What do you think?It's a very cool stuff.This is the strongestlineup of productsthat Apple has ever had.And we believe that each oneof these play a veryimportant role.People need differenttypes of technologyfor the way theylive their lives,we all do different things.In fact, many of us and many ofour customers use more than oneof our products every day.Sometimes you want tosit at your desk in frontof a huge beautifulimmersive screen packedwith powerful technology.And we've made thatmuch better todaywith the Retina 5Kscreen for iMac.Sometimes you want to takethat powerful technologywith you wherever you go.And we've made our notebookseven better this yearwith MacBook Airand MacBook Pro.Sometimes you want to be closeto your content, touching it,and we've made thatexperience even better todaywith the iPad Air 2, morepowerful and incredibly fast.Sometimes you want to hold thatpowerful technology in the palmof your hand and there's nobetter thing for your handthan the iPhone 6and iPhone 6 Plus.And soon, you can wearthat powerful technologyright on your wrist.Yup. This incredible lineupof products and the ecosystemthat supports them issomething only Apple can create.They're designed to beincredible products individuallybut they're also designedto work together seamlessly.And because we create boththe hardware and the software,we can deliver somethingthat no one else can do.A simple, intuitive, and yes,a magical experiencefor our customers.This is our vision ofpersonal technology,and we are just getting started.I'd like to thank all theteams at Apple that have workedso hard for not only this year--much of what you see hereis multi years of work--to bring these products outon top of all the other thingsthat you've seen during the day.They are doing the bestwork of their lives.And I and the executiveteam really appreciate it.I want to invite all ofyou to come across the hallto get your eyes onthis Retina 5K display.You're not going tobelieve it, it's killer.And to hold the iPad Air andsee how thin and powerful it is.We also have a station set upnext door so that you can tryout Apple Pay if youhaven't tried it yetand you can be among thefirst to buy something on it.Thanks very much for joining us.\n"