Steve Jobs introduces unibody MacBook Pro & MacBook (2008)

2008-10-1452:37English

Transcript

Machine transcript in the original language. It may contain errors. Select a timestamp to play that moment.

Music
Good morning. Thanks for coming.
We appreciate you coming down here this morning. We've got some fun stuff to share with you.
with you. I think everybody knows today's about notebooks, and we've got some exciting new
notebooks that we want to tell you the story about how we created these things and what they are and
why we're so excited about them. Before we get going on notebooks, though, I want to really
cover, zoom out and kind of cover the state of the Mac, where we're at with momentum and results.
So I've asked Tim Cook, our executive vice president and chief operating officer,
to take us through the state of the Mac. Tim. Thank you, Steve. Good morning.
This is the Macintosh product lineup today. Very clean, very focused, and very successful.
In fact, in our last reported quarter, we sold two and a half million Macs,
and this set a new company record. This didn't just start in the last quarter. In fact,
in several quarters in a row, we've been growing at two to three times the market rate of growth.
You may wonder why that's the case, and I'd like to take you through why we think it's the case.
First and foremost, better computers. The Macintosh is far superior to anything else on the market,
and we have computers like the iMac, the all-in-one design that Apple pioneered,
and products like the MacBook Air, the ultra-thin, ultra-portable that we announced earlier this year,
and really reset the whole category of thin and light.
And with those better computers comes better software, software like Leopard.
I think virtually everyone agrees that Leopard is far ahead of Vista.
And software like iLife, the best digital lifestyle suite on the market that allows you to enjoy photos and create movies and make music and make websites all in an integrated fashion.
And products like iWork, the absolute best productivity package on the market.
Number three, compatibility.
When many people looked at the Mac in the past, they were concerned about switching because they were afraid the Mac wouldn't fit in a Windows environment.
We fixed that by including boot camp on every single Macintosh we ship, which enables Windows to run natively on the Mac.
Now, we also work with third parties on products like Fusion and Parallels,
which allows the Mac OS and Windows to run side-by-side for that person
who wants to run the occasional Windows program.
Now, when I look at this, frankly, it sends a shiver up my spine.
But the fact is it's working.
It's removing the fear just like an insurance policy does, whether you use it or not.
In fact, if you look at Walt Mossberg of the Wall Street Journal's observation, I think this is very insightful.
In 16 years of reviews, I've never had anything like the amount of email I'm getting from lifelong Windows users who are thinking about switching.
Compatibility.
The next up is something we didn't do.
Vista.
Now, you may wonder, why is Vista on the list?
Well, I think it's fair to say that Vista hasn't lived up to everything that Microsoft hoped it would.
And consequently, it's opened doors for a lot of people to consider switching to the Mac.
And this has given us an opportunity, and Apple has been the beneficiary of this.
Maybe Peter Burroughs of Businessweek summed it up best when he said, Vista looks like it could turn out to be one of the greatest missteps in technology history.
So, Vista.
Now, with great products and a compatibility message, you have to follow that up with great marketing.
And the Mac PC ad has really struck a chord with so many switchers.
You know, they tell a story and people listen.
And I'd like to play one of these...
for you now.
I banish you.
You are banished.
Isn't it great?
Number six, retail stores.
We began our journey in the retail stores just over seven years ago.
And today we have almost 250 stores in eight countries.
and they greet 400,000 visitors each day.
And most importantly, still 50% of the Macintoshes they sell
are to people who are new to the Mac,
making the people underneath the Macintosh tent get larger and larger.
We opened several stores over the summer.
I'd like to show you a photo of a couple of these.
This is our new store, our first store in Australia.
It's in Sydney.
It's phenomenal.
And this is our first entry into China in Beijing that opened right before the Olympics.
Both of these stores have gotten off to a great start.
And so these are the six reasons that we would attribute to Macintosh's momentum,
better computers and software, compatibility, Vista, marketing, and retail stores.
There are clearly others that people could list, but we believe these are the primary reason for the momentum of the Macintosh.
Now, as I said in the beginning, this just didn't begin.
In fact, if you look at the history, what you would see is the MAC has outgrown the market for the last 14 of 15 quarters.
That's almost four years.
It's phenomenal.
And you can look at the slope of that curve.
There's been some key milestones along the way, like our transition to Intel.
It was the sole quarter.
We went below the line where we had more demand than we had supply.
And then there was the Vista announcement and Leopard, which really accelerated our sales.
Now, since we're growing faster than the market, obviously the unit share that's coming out of that is growing.
And I'm very pleased to show you that in U.S. retail, we've gone from a single-digit number just a few years ago
to now the Macintosh represents 18% of unit sales in U.S. retail.
And what's more impressive than this is if you look at revenue share, because we focus on fully featured systems and we don't compromise on quality, our revenue share is over 31%.
That means that one out of every $3 that's spent on computers in U.S. retail is spent on the Macintosh.
What a difference a few years makes.
Now, this isn't just happening in retail.
If you look in education, we've surpassed Dell to become the top supplier of notebooks for all of education with a stunning 39% unit share.
And if you drill down a little further and look at our progress at a major university, and this is a major university that you would recognize, look at what's occurred.
It's breathtaking.
Moving from 15% all the way to almost 50%.
It's fabulous.
Now, for those of you that are not as close to the universities, and many universities
now require a computer when a college student comes on campus.
And that university selects among a group of computers and places them on a list and
the student has choice of what they would like to pick.
And of course we work really hard to get the Macintosh to be one of the choices.
This is one such school and I challenge you to find the PCs in the audience.
Now if you take all of this, the success in retail, the success in education, the over
the full.
year growing faster than the market. Maybe the best way to distill this down
into one simple chart to show that momentum is to look at the total units
that we've shipped. We added 800,000 in 2006, 1.8 million to clear the 7 million
mark in 2007 and now in 2008 through the first three fiscal quarters we've
already equaled all of 2007 this is momentum and that is the state of the
mag thank you
Good job.
Well, with that at our backs, let's talk about notebooks.
Now, before we get into the actual notebooks themselves, we want to talk about some technologies
and discoveries that we've made that let us look at and build notebooks in some new ways.
So the first thing I'd like to talk about is some new ways to build notebooks.
And I'd like to ask Johnny Ive, our Senior Vice President of Design, to come up and take us through that.
Good morning.
I'd like to take just a couple of moments to tell you about, I think, a real breakthrough that we've had
in how we can design and actually build our notebooks.
I'd like to give you, I'd like to start by really giving you a sense of context,
by giving you a sense of the sorts of problems and challenges and issues
that really preoccupy us when we're designing this class of product.
Now to do that, I'd like to show you how we actually build our current 15-inch MacBook Pro.
It's a product that some of you will be familiar with.
Now, one of the most significant challenges when you're designing a product that is as thin and as light as a MacBook Pro
is actually making it strong, making it robust, making it torsionally rigid.
Now, I think you'd be surprised to know that the aluminum enclosure that you can actually see makes a relatively small contribution to the product's overall structure.
Now, the structure's primarily derived from this.

Transcript

Machine transcript in the original language. It may contain errors. Select a timestamp to play that moment.

Music

Good morning. Thanks for coming.

We appreciate you coming down here this morning. We've got some fun stuff to share with you.

with you. I think everybody knows today's about notebooks, and we've got some exciting new

notebooks that we want to tell you the story about how we created these things and what they are and

why we're so excited about them. Before we get going on notebooks, though, I want to really

cover, zoom out and kind of cover the state of the Mac, where we're at with momentum and results.

So I've asked Tim Cook, our executive vice president and chief operating officer,

to take us through the state of the Mac. Tim. Thank you, Steve. Good morning.

This is the Macintosh product lineup today. Very clean, very focused, and very successful.

In fact, in our last reported quarter, we sold two and a half million Macs,

and this set a new company record. This didn't just start in the last quarter. In fact,

in several quarters in a row, we've been growing at two to three times the market rate of growth.

You may wonder why that's the case, and I'd like to take you through why we think it's the case.

First and foremost, better computers. The Macintosh is far superior to anything else on the market,

and we have computers like the iMac, the all-in-one design that Apple pioneered,

and products like the MacBook Air, the ultra-thin, ultra-portable that we announced earlier this year,

and really reset the whole category of thin and light.

And with those better computers comes better software, software like Leopard.

I think virtually everyone agrees that Leopard is far ahead of Vista.

And software like iLife, the best digital lifestyle suite on the market that allows you to enjoy photos and create movies and make music and make websites all in an integrated fashion.

And products like iWork, the absolute best productivity package on the market.

Number three, compatibility.

When many people looked at the Mac in the past, they were concerned about switching because they were afraid the Mac wouldn't fit in a Windows environment.

We fixed that by including boot camp on every single Macintosh we ship, which enables Windows to run natively on the Mac.

Now, we also work with third parties on products like Fusion and Parallels,

which allows the Mac OS and Windows to run side-by-side for that person

who wants to run the occasional Windows program.

Now, when I look at this, frankly, it sends a shiver up my spine.

But the fact is it's working.

It's removing the fear just like an insurance policy does, whether you use it or not.

In fact, if you look at Walt Mossberg of the Wall Street Journal's observation, I think this is very insightful.

In 16 years of reviews, I've never had anything like the amount of email I'm getting from lifelong Windows users who are thinking about switching.

Compatibility.

The next up is something we didn't do.

Vista.

Now, you may wonder, why is Vista on the list?

Well, I think it's fair to say that Vista hasn't lived up to everything that Microsoft hoped it would.

And consequently, it's opened doors for a lot of people to consider switching to the Mac.

And this has given us an opportunity, and Apple has been the beneficiary of this.

Maybe Peter Burroughs of Businessweek summed it up best when he said, Vista looks like it could turn out to be one of the greatest missteps in technology history.

So, Vista.

Now, with great products and a compatibility message, you have to follow that up with great marketing.

And the Mac PC ad has really struck a chord with so many switchers.

You know, they tell a story and people listen.

And I'd like to play one of these...

for you now.

I banish you.

You are banished.

Isn't it great?

Number six, retail stores.

We began our journey in the retail stores just over seven years ago.

And today we have almost 250 stores in eight countries.

and they greet 400,000 visitors each day.

And most importantly, still 50% of the Macintoshes they sell

are to people who are new to the Mac,

making the people underneath the Macintosh tent get larger and larger.

We opened several stores over the summer.

I'd like to show you a photo of a couple of these.

This is our new store, our first store in Australia.

It's in Sydney.

It's phenomenal.

And this is our first entry into China in Beijing that opened right before the Olympics.

Both of these stores have gotten off to a great start.

And so these are the six reasons that we would attribute to Macintosh's momentum,

better computers and software, compatibility, Vista, marketing, and retail stores.

There are clearly others that people could list, but we believe these are the primary reason for the momentum of the Macintosh.

Now, as I said in the beginning, this just didn't begin.

In fact, if you look at the history, what you would see is the MAC has outgrown the market for the last 14 of 15 quarters.

That's almost four years.

It's phenomenal.

And you can look at the slope of that curve.

There's been some key milestones along the way, like our transition to Intel.

It was the sole quarter.

We went below the line where we had more demand than we had supply.

And then there was the Vista announcement and Leopard, which really accelerated our sales.

Now, since we're growing faster than the market, obviously the unit share that's coming out of that is growing.

And I'm very pleased to show you that in U.S. retail, we've gone from a single-digit number just a few years ago

to now the Macintosh represents 18% of unit sales in U.S. retail.

And what's more impressive than this is if you look at revenue share, because we focus on fully featured systems and we don't compromise on quality, our revenue share is over 31%.

That means that one out of every $3 that's spent on computers in U.S. retail is spent on the Macintosh.

What a difference a few years makes.

Now, this isn't just happening in retail.

If you look in education, we've surpassed Dell to become the top supplier of notebooks for all of education with a stunning 39% unit share.

And if you drill down a little further and look at our progress at a major university, and this is a major university that you would recognize, look at what's occurred.

It's breathtaking.

Moving from 15% all the way to almost 50%.

It's fabulous.

Now, for those of you that are not as close to the universities, and many universities

now require a computer when a college student comes on campus.

And that university selects among a group of computers and places them on a list and

the student has choice of what they would like to pick.

And of course we work really hard to get the Macintosh to be one of the choices.

This is one such school and I challenge you to find the PCs in the audience.

Now if you take all of this, the success in retail, the success in education, the over

the full.

year growing faster than the market. Maybe the best way to distill this down

into one simple chart to show that momentum is to look at the total units

that we've shipped. We added 800,000 in 2006, 1.8 million to clear the 7 million

mark in 2007 and now in 2008 through the first three fiscal quarters we've

already equaled all of 2007 this is momentum and that is the state of the

mag thank you

Good job.

Well, with that at our backs, let's talk about notebooks.

Now, before we get into the actual notebooks themselves, we want to talk about some technologies

and discoveries that we've made that let us look at and build notebooks in some new ways.

So the first thing I'd like to talk about is some new ways to build notebooks.

And I'd like to ask Johnny Ive, our Senior Vice President of Design, to come up and take us through that.

Good morning.

I'd like to take just a couple of moments to tell you about, I think, a real breakthrough that we've had

in how we can design and actually build our notebooks.

I'd like to give you, I'd like to start by really giving you a sense of context,

by giving you a sense of the sorts of problems and challenges and issues

that really preoccupy us when we're designing this class of product.

Now to do that, I'd like to show you how we actually build our current 15-inch MacBook Pro.

It's a product that some of you will be familiar with.

Now, one of the most significant challenges when you're designing a product that is as thin and as light as a MacBook Pro

is actually making it strong, making it robust, making it torsionally rigid.

Now, I think you'd be surprised to know that the aluminum enclosure that you can actually see makes a relatively small contribution to the product's overall structure.

Now, the structure's primarily derived from this.