Steve Jobs gave an update on Apple Inc. During the previous quarter, Apple sold 1,350,000 Macs. Steve reviewed the Power Mac G4 and the Apple Cinema Display. Steve reviewed the iBook. During October and November 1999, PC Data said it was the #1 selling consumer portable in the US. 11% were first-time buyers. 17% were Wintel "switchers". 56% were the first portable in their home. 16% had already installed AirPort. 90% were on the internet. 70% had purchased goods and services over the internet. Steve reviewed the iMac. They came in five colors and three models: the $995 model, the $1,299 iMac DV, and the $1,499 iMac DV Special Edition. 30% were first-time buyers. 14% were Wintel "switchers". A combined total of 44% were new customers. 93% were on the internet. 62% got connected the first day. 57% had purchased goods on the internet. 66% did not seriously consider anything else. Steve reviewed AirPort. All Apple systems were "AirPort Ready". Desktop movies could be made using iMovie. 10% of the iMac DV customers had made their own movies. 32% had planned to create an iMovie. Steve showed 3 TV commercials. Steve unveiled Apple's internet strategy. Apple had four internet assets. The first one was QuickTime. There had been over 25 million downloads of QuickTime 4. Nielsen NetRatings for the month of November 1999 showed QuickTime had a 33% share. 30% of young surfers (under 21 years old) used QuickTime. Apple partnered with Akamai Technologies to become a broadcast network. Apple invested $12.5 million in Akamai. Apple's invested became $1 billion when Akamai when public. The second one was Apple's core OS. This included Sherlock (software) 2, Multiple Users, Keychain (Mac OS), and Auto Updating, In the previous two months, Apple had sold over 1 million copies. The third asset was apple.com. It received 1.5 million visited each day and 9.5 million visitors each week. The fourth asset was the Apple Online Store. It opened in November 1997. The store did over $1 billion in sales. Apple added a tab bar to apple.com. New tabs included: iReview, iTools (MobileMe), and iCards. iReview gave quality website reviews and rankings by Apple. Apple had 250 reviews as of January 5, 2000 and would have 1,000 reviews by April 2000. Mac users could append their own reviews to Apple's reviews. iCards was the "Apple" of internet greeting card sites. iCards could be viewed in normal email, not an enclosure or an URL. Steve demoed iReview and iCards. iTools was a new class of internet services from Apple created exclusively for Mac users. The tools in iTools included: KidSafe, Mail (application), iDisk, and HomePage. KidSafe was a breakthrough approach to protecting kids on the internet. KidSafe specified what kids could see, not what they couldn't see. Apple had a database of over 50,000 approved, safe websites. All the sites had been approved by certified teachers and librarians. Apple added 10,00 websites a month. KidSafe could also disable chat rooms, emails, and downloads. It worked with Mac OS 9 multi-user features. Email addresses were at mac.com. It was run by Apple, so it was reliable, private, and secure. It worked with all Post Office Protocol email clients. It had convenient features such as auto reply and auto forward. iDisk gave personal 20 MB of internet storage, hosted securely on Apple's internet servers. iDisk was an entirely new way to store, transfer, and share files. iDisk magically put its icon right on the Mac's desktop. Users would just "drag and drop" files to copy them to the server, or back. There was a public folder for sharing with friends. iDisk could be used with iCards to give personal photo cards. HomePage was a way to build a personal website in less than 10 minutes. Steve demoed iTools. iTools became available January 5, 2000. iTools were free. iTools required OS 9. Apple partnered with EarthLink to provide the best ISP for Mac users. This became a multi-year deal to be Apple's internet partner. Apple profited from every new EarthLink Mac customer. Apple made a major investment in EarthLink. Apple announced on January 5, 2000 a $200 million investment. Steve introduced Garry Betty, CEO of EarthLink. Steve announced Mac OS X. The goals for Mac OS X were: to have a single OS strategy, state of the art plumbing, killer graphics,designed for the internet, and a gentle migration. There would be a 12-month rollout. The final beta would come out in Spring 2000. Mac OS X would go on-sale in Summer 2000. Apple would be pre-loading it on all machines in January 2001. Steve went through the architecture of Mac OS X. It started out with Darwin (operating system), a super modern kernel. The next layer on top of Darwin was killer graphics. There were three components: 2D, which was Quartz (graphics layer); 3D, which was OpenGL; and media layer, which was QuickTime. The next layer was APIs. These were Classic Environment, Carbon (API), and Cocoa (API). One more thing, the completely new user interface. Steve demoed Aqua (user interface). Steve demoed the different graphic layers. Steve brought Phil Schiller on stage to demo OpenGL graphics. Steve demoed the Dock (OS X). Mac OS X had over 100 developed already committed. Steve introduced Bruce Chizen, ExVP of Adobe Systems. Steve introduced Kevin Browne, Acting General Manager of the Macintosh Business Unit at Microsoft. Steve introduced Rob Burgess, CEO of Macromedia. Steve introduced Richard Jones, President of the Desktop Division at Quark, Inc.. Steve showed a video of John Carmack, Co-Founder of Id Software. Steve introduced Carl Yankowski, CEO of Palm, Inc.. One more thing, Steve announced he was dropping the "interim" title.
In New York, the keynote was opened with "Here's to the Crazy Ones" video. The New York keynote featured the introduction of the Power Mac G4 Cube.