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Fire, fire and fade the jeans, I hope you get your dreams, just go ahead, let your hair down.
you can take your clothes
put them in the sand
you're going down the road
baby and you can't come back
someday baby
you ain't gonna wait
for me
anymore
Thanks for coming.
Thanks for coming to this special event.
We've got some great stuff to share with you this morning.
So, what do you say we get started?
Today, we're going to begin with the iPod.
Let me give you a little overview and then we'll descend into some new products.
The iPod has over a 75% market share in the US.
75% market share.
We shipped over 60 million iPods by the end of last quarter, ending at the end of June.
And as you know, there are iPod accessories for almost everything.
over 3,000 iPod accessories that let you use your iPod almost anywhere. And I want to just
highlight one of the new places you can use your iPod as one of those 3,000 accessories.
So it's really great. The ecosystem around the iPod is just fantastic. Tremendous innovation
going on there. And as you may know, we've been working with the automotive companies
for many years now, and I'm very pleased to report that 70% of 2007 model year cars in
the US offer iPod connectivity as an option. 70% of the cars being sold now offer, in the
US offer iPod connectivity as an option. So it's really paid off to work with the automotive
companies. We also launched something recently with Nike, the Nike plus iPod sports kit.
And I just wanted to show you one quote by the CEO of Foot Locker, a very major distributor
of shoes.
He called it the iPod shoe, which I love.
But he said, the iPod shoe is a phenomenon.
It's too soon to tell, but I will tell you that we sold tons of these shoes recently,
and I had to recheck the number yesterday because I really couldn't believe we sold
that many.
So that's great.
to quantify that for you and report that we've sold over 450,000 Nike plus iPod sport kits
and it's less than 90 days old. So we are thrilled and so is Nike with how this has
taken off in the early days. And so that's going really well. So that's a little overview
of what's happening in the iPod world. So let's delve into the products. As you know,
We have three lines, three families of iPods, the iPod, the iPod Nano, and the iPod Shuffle.
So let's start today with the iPod.
As you know, the iPod is the best music player in the world, but it does a whole lot more.
It plays videos, music videos, TV shows, and other kinds of video.
It's pretty amazing.
And so we're going to enhance it today quite a lot.
We're going to start off with the screen.
We're going to make the screen 60% brighter, which is really nice when you're watching videos.
So you can go from this to this.
You can go for scenes like this and you notice it quite a bit.
So 60% brighter screen.
We're going to take the battery and we're going to increase the battery life when you're
watching videos from two hours to three and a half hours.
That's a 75% increase in video battery life.
and on the big model from four hours to six and a half hours of video battery life.
We're going to include some new headphones.
We've been working on these for 18 months.
We've been studying over, you know, a thousand ears to come up with just the right headphones.
And we think these are an improvement.
Everybody has pretty different ears, but we think these are going to appeal to even more
people so they come standard with the new iPod.
The new iPod also finally solves something that has been the number one request for a
few years.
You know, there's a lot of tracks in music that were meant to flow from one track into
the next.
You might be listening to Abbey Road or Pink Floyd, Dark Side of the Moon, or classical
music where the end of one track is supposed to just...
connect seamlessly at the beginning of the next track.
And unfortunately, in digital music, that just doesn't happen.
Gaps are inserted between the tracks in the encoding process,
and most of the players don't know or don't have the power
to actually play these tracks back to back.
And so we are, for the first time today,
going to put this back together as it was intended to be for those tracks
that were meant to be seamlessly transitioned from one to the next
and offer gapless playback.
And that is for songs that were encoded with MP3, AAC, Apple lossless, uncompressed.
And it's really nice to have gapless playback.
So, we're adding some new software features as well.
One is instant searching.
And so you can use the wheel to just input letters
and instantly it starts finding things live with those letters in it.
It'll find songs, it'll find artists, albums, podcasts, you name it, on your iPod.
So instant searching.
And we're also adding a new feature so that if you scroll fast and quick scrolling,
the letter that you're passing by will show up so you can scroll even faster
and know where you are in that process.
So two new software features on the new iPod.
We're also adding something new today, which is games.
Now we've shipped a few simple games on the iPod,
but these are really much more visually robust
and much funner games.
And they are all designed for the wheel.
So we've got some fun ones starting with Bejeweled,
Cubis, Mahong, Mini Golf, Pac-Man, Tetris,
Texas Hold'em, Vortex, and Zuma.
And we've done some of these ourselves,
some of these with EA and a few other partners,
and it's been a lot of fun.
And so let me just give you a little...
Thank you.
So that gives you a little feeling for what they're like.
And they're just for iPod.
And they will work on all fifth generation iPods.
They're going to be available worldwide starting today.
You can buy them off the iTunes store.
And they're going to sell for $4.99 each.
So games on the iPod.
So let's summarize these features.
60% brighter display, 75% longer video battery life,
gapless playback, exciting new games,
search and quick scrolling features added to the software,
and new headphones.
But maybe the most important new feature we're adding to the iPod today
is we're going to make it affordable and accessible to even more people
because we're lowering the price to $249.
So the new iPod comes in two models,
a 30 gigabyte and a new 80 gigabyte model.
And they both come in white and black.
The 30 gigabyte model holds up to 7500 songs,
up to 20,000 songs on the 80 gigabyte.