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1. Dvd to iPhone conversion process is closely related to hardware. Conversion speed is subject to the quality of DVD discs and speed of hard drivers.

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3. Unregistered version is slower than the registered one because each frame in the former version is noted with "Unregistered version" which wastes time.

In a note to clients, the analyst assessed 11 of the most popular product rumors surrounding the Cupertino, Calif.-based company, including a ranking of certainty on which products are likely to appear at the January trade show.

"With one month left in what is anticipated to be a solid holiday quarter for Apple, we believe investors will start to shift their focus to potential new product announcements at Apple's Macworld expo on January 9," Munster wrote.

He said growing expectations for new and upgraded products at Macworld could provide upside to his valuation of Apple, noting that the iTV and iPhone represent "significant additional potential drivers" for the company. He said the two products could be strengthened further by a release of a widescreen iPod at the trade show.

"Just as Apple waited several years to enter the MP3 market, we believe the company is well-positioned to enter the phone market now that early music-enabled handsets have tested the waters," Munster told clients. "Apple will differentiate itself by offering iTunes integration on Macs and PCs, and by leveraging its expertise in software engineering for media playing devices."

Almost Certain (in the next 2-6 months):

In the "almost certain" category, Munster listed both the iPhone's entry to manufacturing and a release of iTV at Macworld, ranking both rumors a 10 out of 10 in terms of certainty.

Likely (in the next 6-12 months):

The analyst said it's "likely" the iPhone will sport a candy bar form-facor, giving that rumor a 9 out of 10 ranking. Similarly, he said a wireless widescreen iPod with touch-sensitivity and a second iPhone model with integrated keyboard are also likely, ranking both rumors a 7 out of 10.

Also likely, though with a slightly lower ranking of 6 out of 10, are rumblings that the iPhone will be available in 4GB and 8GB configurations, bundle an iSight camera, and work on multiple wireless carriers.

A Stretch (possibly in the next 12-18 months):

Unlikely rumors, which Munster calls "a stretch," include an ultra-portable 12-inch MacBook Pro (4 out of 10), radio-transparent material used for iPhone casing (3 out of 10), iPhone to feature "iChat Mobile" video and instant messaging (2 out of 10), and a release of Mac OS X 10.5 Leopard at Macworld (3 out of 10).remembered as the day that almost every Apple rumour on the Internet came true simultaneously. Perched on the edges of their seats, attendees at Macworld San Francisco watched Apple CEO Steve Jobs unveil the iPhone.

The iPhone includes iPod features, a version of OS X and a new touch-screen gesture-based interface which drew the crowd to a standing ovation.

Maintaining its tradition of religious secrecy prior to launch, Apple has today stunned the technology world with a product that could potentially do to the mobile phone market what the iPod did to MP3 players.

Jobs' presentation could not have been in starker contrast to Bill Gates' keynote address at CES on Sunday. The show floor here in Las Vegas seemed to stop and hold its breath while the Apple frontman delivered his revelations and dozens of bloggers transcribed them in real time.

While Gates talked of a fantasy future where schoolchildren would have 50 plasma TVs glued to their bedroom walls showing tropical fish screensavers, Jobs hadn't just imagined the future, he'd gone and built it.

The iPhone's gesture-based interface is staggeringly innovative -- if you suspect us of hyperbole, check out the videos on Apple's site. Award winning iPod designer Jonathan Ives told the Macworld crowd, "It's not too shabby, is it?" That was perhaps the understatement of the decade. The phone runs a version of Apple's desktop operating system, OS X, and includes Widgets, Google Maps, the Safari browser and iTunes with CoverFlow. Apple has partnered with Google and Yahoo to bring maps and email to the device, which is set for US release in June and European release towards the end of 2007. The 4GB model will be priced at $499 and the 8GB model at $599 (about ?50 and ?00 respectively).

Apple's sleek black phone casts a long shadow over CES, a show the company has always snubbed. While we have seen some wonderful innovation from smaller companies at CES, such as the Emtrace WidgetStation, almost everything in the Central Hall seems eerily familiar. Many of the big players such as Sony and Microsoft seem to have dusted off last year's stands, complete with products. The format war between HD DVD and Blu-ray remains unresolved, the PlayStation 3 remains largely unavailable and Windows Vista remains uninspiring and unlaunched in its consumer version.

Motorola, in particular, must feel that Apple played a cruel joke on it with the abysmal Rokr E1. Those who doubted Apple had some agenda in crippling the Rokr should take a look at just how obscenely advanced the iPhone is. This is clearly a product that was in development for many years -- certainly not an evolution of the Rokr, and almost mocking in its superiority.

Walking past the stands of the major phone manufacturers in Las Vegas this afternoon, there was a sense that they turned up to the wrong party. The real consumer electronics show is happening 560 miles away in San Francisco. -CS


SAN FRANCISCO (CNNMoney.com) -- Consumers will finally get the chance to own an iPhone, a mobile phone that plays iTunes and surfs the Web, electronics maker Apple said Tuesday. The device will retail for between $499 and $599.

Company chairman Steve Jobs, speaking at the company's annual Macworld expo, called the iPhone, which will be available in June, a "revolutionary mobile phone" that will feature an iPod, phone and what he called an "Internet communicator." (Video: See Jobs make the announcement.)


Apple Chairman Steve Jobs showing the iPhone at the Macworld expo in San Francisco.
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Jobs also disclosed that Apple's (up $7.10 to $92.57, Charts) iTunes will sell Paramount films, and that the long-awaited AppleTV device to view downloaded videos will be available beginning in February.

Blog: The blow-by-blow of Jobs' keynote
The phone is rectangular, and the entire front surface is a touch screen. All of its functions are activated by touch, but when you bring your iPhone to your face, a proximity sensor will turn off the touchscreen so you don't accidentally face dial.

The phone, which runs the Mac OS X, will be able to download and play both music and movies. It will come in two models -- a $499 version with 4 gigabytes of memory and a $599 one with 8 gigabytes.

"This is a day I've been looking forward to for two-and-a-half years," Jobs told the crowd at San Francisco's Moscone Center.

An Apple phone is no slam-dunk
Jobs was particularly enthusiastic about the iPhone's Web-browsing capabilities.

"It's bad out there today," says Jobs of mobile Web browsers. "It's a real revolution to bring real Web browsing to a phone."

As an example, Jobs called up The New York Times' Web site. The full page displayed, rather than the kind of special, oddly formatted, version that most smartphones show.

He then called up Google Maps to find a nearby Starbucks (Charts). He actually prank called it and ordered "4,000 lattes to go."

Despite all these bells and whistles, Jobs said the "killer app is making calls." The iPhone will operate on the GSM protocol, but won't have third-generation broadband initially. Jobs said that 3G capability is coming. It will also sync with the Mac's Address Book application.

As if keeping track of all the Apple iPhone hoopla for this Friday weren¡¯t enough. Now we¡¯re hearing through the grapevine that the second generation iPhone may be debuted at the San Fransisco Macworld 2008 convention. Apple has awarded Quanta a manufacturing contract for 5 million iPhone units - of which a portion could be the iPhone 2.0. The Taiwanese phone manufacturer has been cultivating its working relationship wth Apple and gives us reason to believe they could have the next-gen iPhone out the doors by next year. Now, this is all speculation and rumor, but we¡¯d love to see a 3G, GPS-enabled version of the iPhone show up at next year¡¯s Macworld in San Fransisco (of course, with all the missing features Dusan mentioned).


Ron Garriques, CEO and President of Dell Global Consumer Group, commented on the iPhone $600 price tag: ¡°If you can reset in the consumers¡¯ minds that cell phones can be priced at $499 to $699, instead of the thinking that it is just $1, that¡¯s good.¡± adding, as most people believe, ¡°the marketing and hype surrounding iPhone is good¡­you know that they are working on iPhone2, iPhone3 and 4 versions.¡±

As with all speculation being cooked up in the rumor oven - season liberally with skepticism and let sit until ready.

[Via: NewLaunches]

This year our own blakespot was lucky enough to have attended the Macworld Expo this year, helping MacRumors.com with coverage of Steve Jobs' keynote where, as it turned out, the amazing iPhone was unveiled. Another keynote announcement was Apple's official name change from Apple Computer, Inc. to Apple, Inc., underscoring the fact that Apple is about a lot more than just the Macintosh. The same can be said about the Macworld Expo.

Have a look at our gallery of iPod-related displays from the Expo floor to get a glimpse of some of the latest offerings. Shots of the iPhone on display can be seen here.
Having a fanboy blogger go out on a limb and say that Apple will be announcing an iSmartphone with a 10 megapixel camera, integrated 100GB hard drive, and 802.11n connectivity is one thing. To put your money where you mouth is, well, that's something different altogether.

If you think you're in the know and can guess Apple's next move better than anyone else, then maybe you should head on over to Bodog and bet on it. Literally. The popular wagering site is "offering odds on the upcoming 2007 Macworld Expo and the impending release of the both the Apple iPhone and Leopard."

Just as people bet on whether the first play of the Super Bowl will be a pass or a run, you can be on whether Apple will have the iPhone out by April 30th of next year, whether they will announce the iPhone at Macworld in January, and whether they will announce Leopard at the same event.

Tons have been said about the new product launchings Apple will announce in current MacWorld Expo. Everybody is expecting Steve Jobs to show the new iPhone, a gadget which is been widely thought of being a mixture between a digital music player and a smart phone.

Well, I don¡¯t know if Steve (no last name is needed) is going to show the world the iTV (Apple¡¯s thought device to compete against TiVo) or a new music player able to make phonecalls, but what I am really sure is that the latter is not going to be named iPhone anyway.

Linksys, a division of Cisco Systems, registered ¡°iPhone¡± as a mark back in late nineties, but it has not been but till now that they have launched the iPhone product, which is, as Linksys says, more than a phone as it is able to connect to Skype network or to send instant messages via Yahoo! Messenger but no mp3 player at all (just access multimedia content from the Internet).

The question is: why now? Has Linksys taken advantage from all the branding campaing to launch their product or is it just a coincidence? The choice is yours but if I were a Microsoft guy I would prepare the launching of the ¡°Zune Phone¡± as soon as possible! What comes next? Only time will tell.


SAN FRANCISCO--Apple Computer CEO Steve Jobs announced a set of new products during his speech at Macworld Tuesday. We covered his keynote from the floor, so check below for continuous updates as the news happened.

Click here to see photos from the keynote.



The iPhone is looking legit.

(Credit: Declan McCullagh/CNET)
11:10--"We've got a really special treat today. We don't have many traditions at Apple, but Jon Mayer has helped us with many products," Jobs says.

Jon Mayer plays a song. All the 12-year-old girls in the audience are screaming. Oh, wait, that's right, there aren't any, this is a technology trade show.

Mayer praises Steve for making products that make people happy. An actual quote, "It's like the opposite of terrorism." Yes, Jon, you're totally right.

He's playing again. Waiting on the world to change? Dylan, he aint. I'm waiting on the song to change.

11:02--"I couldn't sleep last night, I was so excited about today," Jobs says.

We've had some revolutionary products. And we're going to do it again with the iPhone in 2007. There's an old Wayne Gretsky quote, 'I skate to where the pick is going to be.'"

"We've always tried to do that at Apple, and we always will," Jobs says.

"I want to highlight the folks who worked on these products." Workers stand up to applause. "We also can't leave without thanking the families, all of our families," he says. "Without the support of our families, we couldn't do what we do."

10:59--"Today, we've added to the Mac and the iPod; we've added to Apple TV, and now iPhone. And the Mac is the only one you think of as a computer."

"So, we've thought about this. We are announcing today that we are dropping the "computer" from our name, and we will be known as Apple Inc.

10:58--Steve Jobs is back on. "As Stan said, we started work together about two years ago, and we come from two pretty different worlds. We're going to bring some great stuff to market together over the years. Let's take a look at this market, how big is this market?"

Steve's clicker isn't working. "The clicker is not working. They're scrambling back stage right now."

Steve ad-libs a story about Woz.

"You know, when I was in high school, Steve Woz and I made this little device called the TV jammer, a little device that would screw up a TV. And Woz would screw up the TV, and just as somebody was about to fix it.

Just about a billion phones sold last year worldwide.

1 percent market share equals 10M units. This is exactly what we're going to try to do in 2008, is grab 1 percent market share."

10:55--You know Steve and I, we entered into a contractual agreement without ever seeing the design of the phone, Sigman says. And every time I see this, it's just wow. It's really, really cool, Sigman says.

I brought with me another company to celebrate, it's the new AT&T.

Cingular became a full part of the new AT&T familty. This family will help fulfill the vision of wireline, wireless and video in the ways customers haven't imagined, Sigman says.

Sigman says the partnership takes the mobile phone experience to a whole new level.

He says it's a multiyear exclusive partnership, only available with Cingular wireless services. This is not an MVNO, whatever that is, Sigman says. Someone shout from the audience: "Is it locked?" Sigman doesn't respond.

10:49--The iPhone will ship in US in June, in Europe in the fourth quarter and in Asia in 2008, he says.

Our partner is going to be Cingular, Jobs says, adding that it's the best and most popular network in the country with 58 million subscribers. Cingular is going to be Apple's exclusive partner in the U.S.

It's a unique partnership. We're not just going to be selling phones, we're going to be doing innovation together, he says.

Apple worked with Cingular on the visual voicemail. That's the first fruit of this collaboration, he says.

The iPhone will be sold in Apple and Cingular stores.

Cingular CEO Stan Sigman joins Jobs on stage.

10:48--Speaking about the phone's design, Jobs says "multitouch, OS X, more miniaturization than we've ever done."

Jobs says Apple filed for over 200 patents for all the inventions in iPhone, and we intend to protect them.

"iPhone is like having your life in your pocket," he says.

Price: "People spend $499 for an iPod and smart phone. So what should we charge for iPhone? It's got a lot more than just that. We thought long and hard about it. For 4GB model, price at the same $499, with a two-year contract, 8GB model for $599."

Avilability: shipping these in June. "Apple is announcing it today, shipping in June, we have to go get FCC approval," he says.

10:41--"It's been great having the two greatest companies on the Web right down the block, Google and Yahoo," Jobs says. "Internet communicator, iPod and a phone. Let's put them all together and see what you can do in a real life scenario."

He starts a demo.

Go into iPod, listen to music. Jobs gets a phone call. The music fades out, screen changes, and the ringtone plays. You can ignore it, Jobs says, "but I'll answer it." He puts Phil's picture up on the phone.

Phil asks for a photo of Hawaii, Steve pushes the home button, but stays on the call. He goes to photos, and there is a green bar at the top that allows you to go back to the phone. Can e-mail the photo without leaving the call. Still on the call, he is e-mailing the photo.

Then he keeps talking. Phil wants to go see a movie. Jobs keeps talking, and browses over to Fandango.

He touches the top, goes back to the call and hangs up. Then, the music starts up exactly where it pausd when the call came in.

10:37--Jerry Yang on stage: "I'm not a board member of Apple, but I'd love to have one of these," he says.

"We are really proud at Yahoo to be partnehing on e-mail. It's the first one we're doing, but a variety of other popular services with Apple."

Yang says he hopes they can get Yahoo "OneSearch" onto this phone.

Mail is a killer app on the phone, he says. "Yahoo is trying to redesign the Internet experience."

"It's lke have a Blackberry without the Exchange server."

Lastly, we want to be able to take what Apple is doing, reiventing the phone, and we want to do that on the Internet, take great form factors and experiences and UI that we're taking from the Web and translate into a seamless Web experience.

10:35--Google's Eric Schmidt is on stage.

"I've had the privilege of joining the board," Schmidt says, and he jokes about merging the companies. "AppleGoo?"

"What I liked about the new device and the architecture of the Internet is you can merge without merging. Each company should do the absolutely best thing they can do every time, and I think he's shown that today," Schmidt says.

Internet architecture allows you to take the enormous brain trust generated by the Apple design team, and take it with open standards lke the Google Internet stuff, Schmidt says.

"Google pushed very hard to partner with others, and especially Apple, the cultures are similar," he says.

Steve showed a little of the components, but understand this is a set of data from maps and partners so you can get the full integration. This the first of a whole new generation of data services," he says.

You can't think about the Internet without thinking about Yahoo. Have Yahoo search built right in, and of course we also have Yahoo imap e-mail.

Jerry Yang joins Steve on stage.

10:32--Cisco calls CNET News.com reporter with a statement about Apple's use of the term "iPhone" for its new product. "Given Apple's numerous requests for permission to use Cisco's iPhone trademark over the past several years and our extensive discussions with them recently, it is our belief that with their announcement today, Apple intends to agree to the final document and public statements that were distributed to them last night and that address a few remaining items we expect to receive a signed agreement today."

10:30--Jobs shows off the iPhone's widgets, checks Apple's stock and, believe it or not, it's up.

"Now I'm going to show you something truly remarkable, Google Maps on iPhone." You can already get Google Maps on Palm and Windows mobile, and it doesn't appear that the Google iPhone version is any different right now. But you can place a call right from the maps screen.

Steve calls Starbucks and orders 4,000 lattes to go. He cancels the order.

Can use fingers to zoom in on the map. Can replace the map with a satellite image. Again, I belive that's a standard part of Google Maps for Palm or Windows.

10:25--Jobs gives a demo of how the Web part of the iPhone works. There is an e-mail inbox, running live on Yahoo inbox e-mail.

Photos are built right into the e-mail, online photos, rich text e-mail.

iPhone parses out phone numbers. "I can just touch it and I'm going to call this place," Jobs says.

"I can look at e-mail from a split view, like how you can preview the e-mail while still scrolling through the inbox, it's real e-mail just like you're used to on your computer."

And again, free imap e-mail from Yahoo.

There is a touchscreen keyboard to type e-mail. How dirty is that screen going to get? No details yet on the physical specs of the screen, the type of material, etc.

Jobs shows Safari running on the mobile device. Jobs is loading the New York Times. Rather than just give you a WAP version or wrapping around, the iPhone is giving you the whole thing. In landscape mode, you can scroll around a Web site just like a real browser.

Can zoom out to scroll faster around a big site like the Times, and then click again to zoom in on a Web page.

Can have multiple Web pages open, like having Windows open on a desktop screen.

"If you've ever used a Web browser on a phone, you know how revolutionary this is," Jobs says. "We are bringing the real Internet onto your phone."

10:19--"We have reinvented the phone," Jobs says. "So, now let's take a look at an Internet communicaitons device."

Rich HTML e-mail on a mobile device works with any pop or imap client, Jobs says.

Safari is running on the iPhone. It is the first fully usable HTML browser on a phone, according to Jobs.

Google maps is built in.

"We have widgets," he says.

The iPhone communicates, automatically switches to Wi-Fi if it detects a signal. That's an amazing concession from whatever carrier plans to carry this, still no details on that.

Jobs highlights Yahoo mail, the biggest mail service in the world, with 250 million users. "Today we are announcing that they are going to provide free push imap e-mail to all iPhone customers. That's like having a Blackberry iPhone. It pushes your Yahoo e-mail right to the iPhone."

10:14--Jobs moves onto a demo of SMS texting. "Now I go to the SMS icon in the upper left corner, and push it. I can do multiple sessions, can be alerted to multiple messages, and iPhone sets it up in an Internet-style reply e-mail.

There is a touchscreen keypad with autocorrection. Push the buttons with your fingers and send the message and go. The keypad disappears.

Photos--"I have a two megapixel camera, and the coolest photo management app ever. I can just scroll thorugh photos with my finger," Jobs says. "To go through pictures, I just swipe them from side to side to scroll through photos.

"You can take pictures and make them bigger, can take fingers and adjust the size of the picture, zoom in and edit photos with your fingers, move the sizing around, you can also choose to make a photo my wallpaper. That's part of our phone package for iPod," Jobs says.

10:10--Jobs gives a demonstration of how the phone works. He shows four things--the phone app, photos, calendar and texting.

Users will scroll through contacts the same way they scroll through music. "If I want to call somebody, I scroll around, and push his mobile number."

Jobs is calling Jony, Apple's design chief. It's the first public phone call with iPhone, Jobs says.

Phil Schiller calls, and Jobs shows how the call does three-way calling.

Jony: "It's not too shabby, is it?"

Users can add contacts from a recently-called list, can edit favorites, move people around, delete and add entries. The iPhone lists the recent calls as red if missed.

"If I'm real last-century," Jobs says, "I can push the keypad," and he calls 408-996-1010.

10:05--What's the iPhone's killer app? Making calls, says Jobs.

"People use their recents as their address book; we want to let you use contacts as never before. You can sync your PC with your Mac like never before."

The iPhone will use "visual voicemail." "Wouldn't it be great if you had six voicemails, and you didn't have to listen to five first before listening to the sixth?" Jobs says.

It is a quad-band GSM/EDGE phone. "We decided to go with the most popular international standard," Jobs says. "And of course, we have Wi-Fi and bluetooth."

10:03--Jobs says the iPhone has a great album view that shows all the album art, and I've also got videos.

"It's a video iPod and a regular iPod, plus a phone. And it's widescreen when you hold it in landscape mode, on its side."

There are touch controls on the video iPod as well--play, pause, etc. The phone is a candy bar shape. There don't appear to be any moving parts; all the buttons are touch-screen except for the home button.

"It's the best iPod we've ever made," Jobs says."

Jobs says he was giving a demo to somebody inside Apple who had never seen it before, and they told him, "you had me at scrolling."

9:59--Jobs keeps referring to Apple's phone as the "iPhone," even though Cisco owns the trademark.

There is a slider bar switch above the home button, four touch-screen buttons to activate the iPod. Users can hit the home button to go back home.

Want to scroll through songs? Touch the screen and flick toward the top of the screen, or the bottom. Select songs by touching them.

Flip the album art for the track listing, with a button in the upper right hand corner.

Turn the phone into landscape mode, and it shows you all your albums in the cover flow applications.

He's really got to get some new demo music. I've heard way too much Green Day at Apple keynotes.

9:56--The iPhone's screen will be 160 pixels per inch. "It's gorgeous," Jobs says. There is only one button, the home button.

It's really thin--11.6mm, thinner than the Q or Blackjack. And we've got controls on the side," Jobs says.

The iPhone has a 2-megapixel camera, iPod headphones fit right in, there is a place for sim card, and it has a wake/sleep switch.

A proximity sensor senses your face and turns off the iPod and turns on phone when you bring it up to your face. And ambient light sensor switches the light based on the available light. It has got an accelerometer for portrait vs. landscape.

"It's an iPod; you can touch your music," Jobs says. "And it's got cover flow."

9:49--"We've been very lucky to have brought a few revolutionary user interfaces to the market--the mouse, the clickwheel, and now multitouch," Jobs says.

"We're going to build on top of the interface with software, software on top of mobile phones is like baby software. Today we're going to show you a software breakthrough, software that's 5 years ahead of what's on any other phone," Jobs says.

The iPhone runs OS X.

"Why do you need such a sophisticatd OS on a mobile device? Because it's got everything we need. It's got power management, the mobile multitasking that has let us create desktop class applications, not the crippled stuff you find on most phones."

"We love software...Alan Kay, people who are really serious about software should make their own hardware."

"We're bringing breakthrough software to a mobile device for the first time. The second thing we're doing is learning from the iPod, syncing with iTunes. People know how to sync media onto their iPod. You're going to do the same thing with iPhone," Jobs says.

"iTunes is going to sync all your media on the iPhone, but it also syncs a ton of data, already can get contacts and calendar on the iPod, and all that stuff can be moved over to iphone automatically."

"Set up the phone in iTunes, just like an iPod or Apple TV. It is just like an iPod: Charge and sync."

9:48--"We're going to start with legendary user interface," Jobs says. "The problem with the standard ones is the keyboard; they are there whether you need them to be there or not, control buttons that are fixed in plastic. Every application wants a set of buttons optimized for it."

"So what do you do? It doesn't work, because the buttons and controls can't change."

"How do you solve this? Turns out we have solved it; we solved it in computers 20 years ago," Jobs says. "A bitmap screen, and a pointing device; we solved it with a mouse."

How are we going to take it to a device? We're going to get rid of all these buttons, and just make a giant screen. Who wants a stylus? Nobody wants a stylus, so let's not use it.

We're going to use the pointing device we're all born with. We have invented a new technology called 'multitouch.' You don't need a stylus, and it is far more accurate than any pointing device that's shipped. And boy, have we patented it!"

9:45--"We are calling it iPhone," Jobs says. "Today Apple is going to reinvent the phone, and here it is."

Jobs shows a spoof of an iPod with a old-style rotary phone. Much laughter. Joke, joke.

Jobs says he will talk about "a category of things called smart phone, which combine a bunch of things." "Problem is," says Jobs, "they aren't so smart, and they aren't so easy to use."

Smart phones are definitely a little smarter, he says, but they are harder to use.

9:43--The second big announcement is a revolutionary mobile phone, and a breakthrough Internet communicaitons device, according to Jobs.

9:42--"This is a day I've been looking forward to for two and a half years. Every once in a while a revolutionary product comes along that changes everything. You're very fortunate if you get to work on one of these for your career. In 1984, we introduced the Macintosh. It didn't just change Apple; it changed the whole computer industry," Jobs says.

"In 2001, we introduced the Apple iPod, which changed the entire music industry," Jobs says.

"Today, we're introduing three revolutionary products of this class."

The first one is a widescreen iPod with touch controls.

9:40--He's demonstrating content synced from computer to Apple TV. He demonstrates what happens when Phil Schiller, Apple's senior vice president of Worldwide Product Marketing, comes over with a notebook.

It can connect to a new iTunes, running on Schiller's machine. He has to type in a PIN, and Jobs can load Schiller's MacBook and look at Schiller's TV shows.

You can watch movies from an somebody else's notebook on your iTV. But how is that DRMed? It doesn't appear to allow you to transfer content between friends, just stream.

The price is $299. Apple will be taking orders today, and shipping them in February.

9:37--Jobs gives a demonstration of how Apple TV will work. It can stream video directly over the Internet to TV and you can control it with a remote to browse for shows or trailers on the iTunes store.

Jobs is showing demos of movies, TV shows and music. There are album covers, movie posters and TV commercials floating around the interface as you select a song, TV show, or whatever from the menu. You can put photos, as well, on your TV, stream them over a wireless network or move them to Apple TV.

9:31--Apple TV will allow users to stream content from up to five computers, and autosync from one computer.

"Just like you set up an iPod, set up a TV. The 1- most-watched movies on Apple TV, for example."

TV shows can be set to automatically stream to Apple TV and reside there on the hard drive when you purchase them. If you like Lost, you can set it to download every Lost episode to the Apple TV when you purchase it. Other videos you can choose to keep on your Mac or PC.

"You can also stream from up to five computers, watch on Apple TV but not store on the hard drive, like if your neighbor comes over," Jobs says.

9:28--Jobs introduces what has been known as the iTV. It is now called "Apple TV," consisting of the Apple logo, then "TV". Jobs describes it as a way to enjoy your content on your TV."

Users can wirelessly transmit the content to an Apple TV from a PC or Mac, according to Jobs. "I'm going to use a Mac," he says.

Jobs says Apple TV will use the same hookups as we saw in September and will have 720p high-definition video. "It's got a 40GB hard drive, up to 50 hours of video, and comes in handy for something I'm going to show you," Jobs says.

Apple TV will use 802.11n, the new draft Wi-Fi standard. And it's got an Intel processor in it, but he doesn't say which one.

9:26--Jobs talks about Microsoft's Zune as a new competitor to the iPod. "How did they do?" Jobs asks. Then he cites data for November, which was the Zune's launch month. The Zune grabbed 2 percent market share, according to Jobs. The iPod had 62 percent market share, he says citing NPD.

A Zune goes up in flames, and the crowd titters.

Jobs shows off new iPod ads: the same silhouette ads of people dancing around.

9:23--"We are the fifth largest music reseller in the U.S.," Jobs says. "Because of the growth of iTunes, we have now passed Amazon; we are now No. 4."

You can guess who our next target may be; it's Target."

TV shows--we have sold 50 million TV shows on iTunes. Movies--(the) pioneering partner we had with TV shows was Disney. We have sold 1.3 million