3:00PM Don't forget to join us in an hour or two for our live re-cap. Keep an eye on the main site for specifics.
2:59PM Lights are up, people are filing out, and the soul music is back. We're going to groove our way out of here and go see what we can see.
2:59PM There you have it, no new hardware.
2:58PM "So go at it, have a great week, and thank you very much."
2:58PM "It's a large place and it's full of stuff. Full of expensive stuff. We are ready, we think, for customers to start using iCloud and we can't wait to get it in their hands."
2:58PM We're getting a bit of a photo tour of the company's new data center. "It's as eco-friendly as you can make a modern data center, and we're pretty proud of it."
2:57PM "If you don't think we're serious about this, you're wrong. This is our third data center that we just completed."
2:57PM "It's an industry-leading offer, let's put it that way."
2:57PM Apple is $24.99 regardless of how many songs you have, so if you have 20,000 songs you're looking at $200 on Amazon. It's still anybody's guess how much that will cost on Google.
2:56PM We're comparing to some of the competition, namely Amazon and Google.
2:56PM Wondering what happened to Lala? Now you know.
2:55PM iTunes Match costs $24.99 per year.
2:55PM If any songs don't match they'll be uploaded for you. Anything that's matched is upgraded to 256Kbps AAC, without DRM.
2:55PM Yes, another dig at Google Music.
2:54PM "This takes minutes, not weeks. If you have to upload your entire library to some service in the cloud, that could take weeks!"
2:54PM Software will scan your tunes and match it up with those songs in the store. "We give that music the same benefits as music purchased in iTunes."
2:54PM 3: You can use iTunes Match. "iTunes Match uses the fact that we have 18 million songs now in the iTunes music store."
2:53PM 2: You can buy the songs you'll miss on iTunes... again. Right.
2:53PM 1: You can sync your new devices over WiFi or cable.
2:53PM "With 15 billion songs, that's a lot of songs out there. But, you may have some that you ripped yourself. There's three ways you can deal with that."
2:53PM "Just a small thing. It pertains to iTunes in the cloud."
2:52PM Oh boy, "one more thing."
2:52PM How do you ship a cloud, anyway? The jet stream?
2:52PM iCloud will "ship" concurrent with iOS 5 this fall.
2:52PM iTunes in the Cloud runs on iOS 4.3 beta.
2:52PM Yes, launching in developer beta today.
2:51PM And other storage too. But, Photo Stream and music downloads don't count. So it's "more than it sounds."
2:51PM This will be set up by default on new iOS 5 devices, and you'll get 5GB of storage for mail.
2:51PM That was a dig against Google Music, if you didn't catch it.
2:51PM He's saying that competitors can never make it so that "it just works."
2:50PM "We're making it free, and we're very excited about it. So that's iCloud. It stores your content and pushes it to all of your devices, and it's integrated with all your apps."
2:50PM "These nine apps constitute iCloud, and they are all free."
2:49PM It's 256Kbps AAC and you can push to up to 10 devices.
2:49PM Demo over, Steve is back. "Isn't this awesome?"
2:49PM "Now when I buy a song on one of my devices it automatically downloads to all of my devices without having to sync or do anything at all."
2:49PM Eddy hit "Buy" on the iPhone and, instantly, it popped up on his iPad.
2:48PM We're buying a new Bruno Mars song, "The Lazy Song."
2:48PM Seemed to take about 30 seconds for the song to get going after hitting the download button.
2:47PM There's a new "Purchased" tab in iTunes. You can look at all your albums find anything you like, and then just hit that cloud button.
2:47PM Eddy is back for another demo.
2:46PM Surely some old school MP3.com users are pondering that one a little bit.
2:46PM "This is the first time we've seen this in the music industry -- no charge for multiple downloads to different devices."
2:46PM "Anything I've bought I can now download to any of my devices at no additional charge."
2:45PM Again, you can look at your purchased songs and albums just by clicking the same familiar cloud download button -- or just download individual songs.
2:45PM Happens to us every day.
2:45PM "It's the same old story. I buy something on my iPhone and it's not on my other devices. I grab my iPod and I go to listen to that song and it ain't there!"
2:44PM Okay, last bit: iTunes in the Cloud.
2:44PM "We're really pleased with Photo Stream. We think you're going to like it a lot."
2:44PM Steve's back up. "Isn't that awesome?"
2:43PM It's Lightning McQueen, by the way. A little advertising tie-in, perhaps?
2:43PM You can then drag into a new album if you want to keep it. Moving over to iPhoto, going to Photo Stream, and again there's the picture.
2:42PM We just took a photo on an iPhone, and instantly the image is on the iPad.
2:41PM Demo time, Eddy Cue is up.
2:41PM "When I take a photo anywhere, I can view it on all my other devices. We think this is going to be really exciting."
2:41PM In the cloud, photos are kept for 30 days.
2:41PM If you want to keep something permanently, just move it into an album. On the Mac or PC, all are stored permanently.
2:41PM "We're going to store photos on your devices. We'll store the last 1,000 photos."
2:40PM "One of the problems we faced is that photos are large and will consume all the memory in your devices."
2:40PM Photos go to Apple TV as well.
2:40PM Presumably that'll require some sort of software, but we'll try to get details on that later.
2:40PM On the PC, though, it's included in the Pictures folder.
2:39PM On the Mac it's in iPhoto, on the side.
2:39PM There's no separate app, it's right in Photos as a separate album.
2:39PM Yes, a little like Picasa on Android, but seemingly a lot more transparent.
2:38PM Any photos taken on any devices are pushed to the cloud and then sent to the other devices. Automatically.
2:38PM Steve is talking about the chore of pushing photos to devices when you return home from a vacation, say.
2:38PM "It's going to bring the cloud to photos."
2:37PM Okay, time for the next app: Photo Stream.
2:37PM "Works across all iOS devices, and Macs and PCs too."
2:37PM You can have full documents, or just key / value pairs that will be stored remotely as well.
2:36PM Steve is really amped up about the simplification here, and the crowd is really amped up that there are iCloud APIs for developers to tie in to.
2:36PM "The piece that we weren't finished with was how do we move those documents around to multiple devices, and Documents in the Cloud solves that problem for us."
2:35PM "Documents in the Cloud really completes our iOS document storage story. A lot of us have been working for 10 years to get rid of the file system so the user doesn't have to learn about it."
2:35PM "Absolutely no effort on my part." Thank goodness, we don't need any more things that require effort.
2:35PM "I stick the phone in my pocket and I forget about it... When I get home, pick up the iPad and fire up Pages, and the document thumbnail has already been updated."
2:34PM Now looking at Pages on the iPhone, moving a graphic around and inserting a photo directly from Camera Roll.
2:34PM The file downloads, and even goes back to the current slide. This is being done over AT&T, by the way.
2:33PM Now moving over to Keynote on an iPhone, and on first launch it asks whether you want to look in the cloud.
2:33PM Demo time, looking at Keynote on an iPad.
2:32PM The versions released last week actually have this feature already tied in. Could iCloud be launching today?
2:32PM That's in Pages, Numbers, and Keynote.
2:32PM "It then pushes it to all the devices that I have Pages on, so I can get the document between my devices."
2:32PM "If I'm on my iPad and I create a Pages document, it automatically uploads it and stores it in the cloud."
2:31PM First one is called Documents in the Cloud
2:31PM Three more to come, are you ready? "I'd love to tell you about them."
2:31PM So that's six apps for iCloud, "but we couldn't stop there."
2:31PM Backed up over WiFi only, including purchased music, books, photos and videos, device settings, and App data as well.
2:30PM Every day content will be backed up. Get a new device? Just type in your ID and password and there's your content, pushed right there.
2:30PM Now we're talking about backing up devices to the cloud "for those people who want to be completely PC-free."
2:29PM iBooks now, same basic story. You can push the button and pull things locally if it was purchased elsewhere.
2:29PM Tap on the cloud button and apps are pulled down to the current device. When you buy a new app or a new device everything is propagated across again.
2:28PM We're looking at some new apps now, including the AppStore, which lets you see all your app purchases, even if they're not installed on the current device.
2:28PM Or, at least usage of these three apps will be free...
2:27PM iCloud will be free!
2:27PM MobileMe used to cost $99 annually. "As of today this product ceases to exist."
2:27PM "We build products that we use too, and we just don't want ads."
2:27PM "No ads" Steve just confirmed.
2:27PM "Mail was in the best shape of all, but it's even better." Get an @me.com account and all your messages are sync'd and pushed across.
2:26PM We're still well within the capabilities of other mobile operating systems, but we hang on, we still have a way to go.
2:25PM Calendars works about the same, make any changes and they get pushed. Plus, you can share your calendars with other users.
2:25PM Contacts added in any device are pushed to the cloud and then sync'd down to all the other devices. Naturally, change it anywhere and that change propagates.
2:24PM The MobileMe apps have been re-written from the "ground up" to work on the iCloud.
2:24PM "Now why should I believe them? They're the ones who brought me MobileMe." Hah! Steve just called MobileMe "not our finest hour."
2:23PM "Everything happens automatically and there's nothing new to learn. It just all works."
2:23PM "iCloud stores your content in the cloud and wirelessly pushes it to all your device. It automatically uploads it, stores it, and pushes it to all your devices."
2:23PM "Some people think the cloud is just a big disk in the sky... We think it's way more than that."
2:23PM "I don't even need to take the devices out of my pocket."
2:22PM All these devices can talk to the cloud at any time. Steve's talking about taking pictures on your iPhone which are pushed up to the cloud and then pushed back down to all the other devices.
2:22PM "We're going to move the digital hub, the center of your digital life, into the cloud."
2:22PM "We've got a great solution to this problem... We're going to demote the PC and the Mac to just be a device."
2:21PM "Keeping these devices in sync is driving us crazy."
2:21PM Why? Because the devices have changed. "They now all have photos, they now all have video." Basically, you want all your content everywhere all the time.
2:21PM Steve is talking about how 10 years ago he realized the computer would become something of a hub for your life -- your photos, your music, your content. "You'll basically sync it to your Mac and everything will work fine. And it did, for the better part of 10 years, but it's broken down in the last few years."
2:20PM "I'm going to talk about iCloud. We've been working on this for some time now, and I'm really excited about it."
2:20PM "I'll try not to blow it."
2:20PM "You like everything so far?" Yeah, they do.
2:20PM Now Steve Jobs is back, and it's time to talk iCloud.
2:19PM It'll support all the same devices as last time, basically starting with the iPhone 3GS, iPad and iPad 2, plus the third and fourth generation of iPod touch.
2:19PM "iOS 5 will ship to all of our customers this fall."
2:19PM Developers get a seed today, for the SDK.
2:18PM "When are you getting it?"
2:18PM And new multi-tasking gestures too to "flick" between apps, as well as a suite of new dev tools that are receiving some mumbles of appreciation from the crowd.
2:18PM You can also sync your iTunes library over WiFi too, as you might expect given the cut cable idea before.
2:17PM That's 10 of the 200+ new features that are coming, including AirPlay mirroring, letting you mirror your entire iPad right to the TV -- wirelessly.
2:16PM Demo over! "We're actually building this on the push notification we built, so we know how to scale this."
2:16PM This works over WiFi or 3G, in case you were wondering.
2:16PM To send a photo or video you just tap the camera icon, pick a pic, and away it goes.
2:15PM Tapping on the notification brings you right to the new messaging interface. While responding, the iPad user gets a notification that the iPhone user is typing away.
2:15PM Message sent from the iPad to the iPhone and, wouldn't you know it, a notification pops up.
2:14PM Demo time, we're going to be sending messages between an iPhone and an iPad. The iPhone is running a game.
2:14PM Since it's cross-device you can start a convo on your iPhone and pick it up on your iPad, or the reverse if you're into that.
2:13PM Can also get delivery receipts, read receipts, and real-time typing notification.
2:13PM Supports iPhone, iPad, and iPod touch. Lets you send text messages, photos, videos, contacts, and even do group messaging.
2:12PM New messaging service between all iOS users, regardless of device.
2:12PM "I believe we have the best messaging client on the iPhone. It works tremendously well to send text messages and photos and our customers love it -- our iPhone users. But what about our iPad users, and our iPod touch users?"
2:12PM Next feature: iMessage.
2:12PM And, you can now play turn-based games right in the OS. Settlers and Carcasonne fans in the house just started smiling.
2:11PM You can purchase and download games directly from Game Center.
2:11PM We're getting more social here, seeing the scores of your friends' friends, also getting friend recommendations and game recommendations.
2:11PM Yeah, that was a burn.
2:10PM "In just 9 months we have 50 million Game Center users. To put that into perspective Xbox Live has been around for about eight years and they have around 30 million users."
2:10PM "iOS is the most popular gaming platform on the planet. There are more than 100,000 game and entertainment titles in the App Store."
2:10PM Next feature: Game Center.
2:09PM You can now create & delete calendars right from iOS. We already saw the improved photo editing, and in Mail you can create and delete mailboxes from iOS. Basically, it's a much more independent operating system. "If you want to cut the cord, you can."
2:09PM And those updates are delta updates, so again you're just getting what's changed -- which should put less of a hurting on your newly capped data plan.
2:08PM Also, software updates are OTA.
2:08PM Now, when you take the phone out of the box, you just see "Welcome" instead of a prompt to tether it. "You can now setup and activate your device right on the device and you are ready to go. It's that easy."
2:08PM "We know we're selling to a lot of places where the households just don't have computers."
2:07PM Huge applause for that one. Nobody likes cables up in this house.
2:07PM Next feature: PC Free. We're cutting the cable here, folks.
2:06PM It makes things a little more thumb-friendly on the iPad if you weren't blessed with freakishly-long fingers.
2:06PM Showing a new keyboard: grab it with your thumbs and go up and it splits.
2:06PM Tap a word, tap "Define" in the popup, and you're in a dictionary. Scott didn't know what a lychee fruit is, apparently. Doesn't know what he's missing out on.
2:05PM There's also a built-in dictionary that's a service across the OS. "All apps from the App Store can use it."
2:04PM And S/MIME is being added as well, for the security mavens.
2:03PM Rich-text formatting, indentation control, draggable addresses (from To: to Cc: or Bcc:), flagging so you can mark them as unread, and now you can search the entire contents of messages.
2:03PM Next up: Mail.
2:02PM And they can now be edited directly on the device. You can crop, rotate, reduce red-eye, and you can do a one click enhance -- if you're feeling lucky.
2:02PM You can pinch-to-zoom right in the app, and if you hold a tap on a part of the photo it'll set the exposure settings to optimize that portion of the image.
2:01PM Or, you can use the shutter button to turn your volume up, if you want to look at it that way.
2:01PM And you can use the volume up button to take pictures now. Huge applause on that one.
2:01PM If you have a passcode set, you can take a new photo without entering it. But, your existing photos are protected.
2:00PM Tap on the camera icon and you're right in the Camera app, ready to take a photo.
2:00PM There's now a Camera button on the lock screen.
2:00PM Looking at Flickr popularity, with the iPhone 4 the most popular phone on a camera, and soon the most popular ever.
1:59PM Next feature: Camera updates.
1:59PM It'll sync across devices, and with Cal.
1:59PM Big applause for that, lots of people who need to call home when they leave here.
1:59PM "I can set a location to remind me to call my wife when I leave the convention today. It'll set up a geofence."
1:58PM You can store lists of things, assign a reminder to any dates, and you can even assign a location.
1:58PM That one got an "oooh," from the crowd. Lots of folks apparently ignoring their honey-do lists to be here today.
1:57PM Next feature: Reminders.
1:57PM And there's naturally Twitter integration. Tap on "Tweet" and you get what they're calling the "Tweet Sheet" which is a common control across the Twitter-friendly apps.
1:56PM He's looking at a 20 page review of the EOS 60D on dpreview.com. He switches to Reader view and all the content is presented in one view.
1:56PM "It is lightning fast to switch between windows now." Just tap on one of the tabs and there you are, on that other tab.
1:55PM Tabbed browsing is added as well! Demo time.
1:55PM You can access those you've tagged for later on multiple devices.
1:55PM Reading List is next, "a simple way to read it later." Which is, you know, kind of like Read It Later.
1:54PM You can e-mail the contents of the story too, not just the link. Cautious applause from the webmasters in the room...
1:54PM All the distractions are gone, all the junk, just text in a single, scrolling story. "It's really convenient."
1:54PM Safari Reader is a new button when you're reading a story on a website. It's up in the address bar.
1:53PM "Safari is the best mobile web browser out there. It's also the most popular." Nearly 2 / 3 of all mobile web browsing is done through Safari.
1:53PM Next up: Safari.
1:53PM You can also use Twitter to automatically update contacts if they have Twitter handles. Again, taking a cue from Android.
1:52PM You can also send articles from Safari and locations from Maps.
1:52PM It really is, Scott.
1:52PM Integrated with many apps, including Camera and Photos. Just tap the action button, hit "Tweet" and it's attached. "It's that simple."
1:51PM Single sign-on. Jump into Settings, add in your deets, and you're configured for Twitter. Those credentials are then saved and can be (optionally) shared with any app that requests them.
1:51PM "We want to make it even easier for all our customers to use Twitter on all their iOS products."
1:50PM Feature number 3: Twitter.
1:50PM New issues are now automatically downloaded in the background, available offline.
1:50PM "When you purchase them they're automatically downloaded and placed on the Newsstand. It's integrated with the home screen, looks like, well, a newspaper stand.
1:49PM And papers: New York Times, SF Chronicle, Daily Telegraph...
1:49PM You know, lots of magazines.
1:49PM Vanity Fair, Popular Science, Esquire, GQ, Oprah...
1:49PM We're going through a suite of publications that support this, like Nat Geo and Spin.
1:48PM "Recently we added subscriptions, which makes it easier to get all the new issues without missing anything."
1:48PM Okay, next iOS 5 feature: Newsstand.
1:48PM We're not seeing an Android-style clear button, but hopefully there's away to dismiss them all en masse.
1:48PM To clear a notification, just tap on the little X to the right and it disappears.
1:47PM Swipe across the text message and you're right into conversation view.
1:47PM Demo time! We're seeing a few missed calls, a Facebook notification, and a text message.
1:47PM It's on the lock screen as well, and you can if you slide across any of them you'll go straight to that app.
1:46PM It's unobtrusive and goes away after a moment, but of course you can get back to it whenever you like.
1:46PM If you're playing a game, you get an animation up top that swivels down.
1:46PM Stocks and weather appear up top.
1:46PM Swipe down and you get a big list -- yeah, it looks like Android.
1:45PM Notification Center aggregates all the notifications. It's accessed by swiping down from the top.
1:45PM The modal alerts are annoying when you're playing a game, or watching a video -- maybe you're really into the latest 30 Rock episode.
1:45PM "We have built something that solves some of the current problems."
1:44PM We're looking at the current notifications, the annoying pop-ups that have been "massively popular." More than 100 billion have been pushed so far!
1:44PM First new feature: Notifications.
1:44PM Over 1,500 new APIs! Got a few cat-calls from the saucier coders in the room.
1:43PM "iOS 5 is a major release. This is incredible for our developers and our customers."
1:43PM "Let's talk about the future of iOS, and that is iOS 5."
1:43PM More than 225 million accounts "all with credit cards and one-click purchasing."
1:43PM Looking at some examples, Tiny Wings, HBO Go, even an FDA approved app for looking at CT scans.
1:42PM And Apple has paid out more than $2.5 billion to developers -- big check signed by Steve Jobs on the screen.
1:41PM More than 14 billion (yeah, with a B) apps downloaded from the App Store, total.
1:41PM "The size and momentum in the App Store is hard to fathom." 90,000 apps specifically for the iPad. "We'd like to thank our developers for these great apps.
1:41PM The iBookstore has moved 130 million book downloads.
1:40PM More than 15 billion songs have been sold through the iTunes Music Store, making it the #1 retailer of music in the world.
1:40PM More than 25 million iPads sold since the original launch 14 months ago. "We've created a whole new category of device with the iPad."
1:39PM He's talking up the iPad 2. "It is an amazing product, and our customers just couldn't wait to get their hands on it... actually they did have to wait."
1:39PM These are Comscore's April numbers, showing Android in #2.
1:39PM "That makes iOS the number one mobile operating system, with more than 44% of the market."
1:39PM "To date we have sold over 200 million iOS devices."
1:39PM "As you know iOS powers the iPhone, the iPad, and the iPod touch."
1:38PM Okay, Scott Forstall is up to talk about iOS 5.
1:38PM Available soon, in July.
1:37PM In the past, upgrades have been $129. This one? $29.99!
1:37PM "What would you charge for this?"
1:37PM You're looking at a 4GB download, no reboots, and you can use it on all of your personally authorized Macs. You won't have to buy multiple copies!
1:37PM Go into the App Store, click "buy," it downloads locally and starts the upgrade.
1:36PM Wow, no more discs. Lion will be available only in the App Store. Making it the "Easiest upgrade ever."
1:36PM There are 3,000 new APIs as well, which got a few tired claps from the serious coders in the room.
1:36PM Other things: there's a Windows Migration assistant, FileVault 2, FaceTime is built in, Lion Server add-on (apps you can purchase to run on top of Lion)...
1:35PM Phil's back "So those are the top 10 features of Lion, but there's so much more for you to learn about on Lion."
1:35PM Looking at conversation view, which hides all the redundant FWD and RE junk that starts to overwhelm a lengthy e-mail chain. Or you can display it... if you're into that kind of thing.
1:34PM You can search by date too, naturally, and you can combine all three, saying a sender, a subject, and a date, without diving into a clunky search dialog box.
1:33PM Showing off searches and suggestions. You can search for people, or if you type in something more general you can select whether to search in the body, the subject. It'll even suggest e-mail subjects to search for.
1:33PM Or a tap, presumably, if you're using a touchpad.
1:33PM Showing off the favorites bar -- just click to get to whatever folder you're most often in. But of course you can get back to the top with just a click.
1:32PM Okay, Mail demo time.
1:32PM More wild applause. People apparently like conversations, too.
1:32PM Also adding a new conversation view. Shows all the messages all inline.
1:31PM Wild applause. People are really into searching for things.
1:31PM "With searching now we have new search suggestions. Mail recognizes whether that's a person or a subject... select one it becomes a search token." You can then create rules based on these searches.
1:30PM Two or three-column view, snippets on the left, and a favorites bar to get to your hottest folders.
1:30PM "A completely new version of Mail in Lion. It's beautiful."
1:30PM Okay, we're up to feature number 10: Mail.
1:30PM "There's nothing to set-up. It's auto-discover, auto-set-up."
1:30PM Go into AirDrop and you'll see all the other users who are running AirDrop. To share a file, just drop a file onto the user in question. They then receive a notification and, hey presto, file exchanged.
1:29PM Phil says this is a replacement for Sneakernet: i.e. using a thumb drive and running it over to a friend. Peer-to-peer sharing.
1:28PM Next feature: AirDrop.
1:28PM He's selected an old version and brought them both up, grabbing an image that was deleted many versions ago and dragging it right back into the current version.
1:27PM He's also looking at all the versions of the document, an easy view into the history of the doc. Any thesis-writers out there? This feature is for you.
1:27PM Changes made, exiting without saves. Launched Pages again and everything was exactly as it was. Bam.
1:26PM We're working in Pages, building a document now. Moving some guitars around on the page. Pretty rockin'.
1:25PM Well, the wings didn't flap, but you'll have to use your imagination for that.
1:25PM Looking at launch pad, installing an app from the store. Twitter's being installed, it actually flew onto the grid.
1:24PM Demo time again...
1:24PM You can switch between them, copy / paste from one to the other, and basically time travel like a madman.
1:23PM They're created automatically as the files are auto saved, and only the deltas are saved, meaning you don't have a zillion copies of your files floating around.
1:23PM This opens the door to versioning...
1:22PM You can easily duplicate too, creating a second one just like that.
1:22PM Up on the menu bar, the document name is now a control you can click on. You can select that, and prevent auto-saves from happening, or revert to how it was when you opened it.
1:21PM Lion will automatically save the document for you without you having to do anything.
1:21PM "The one time you might forget to save what you're doing, something goes wrong... Why can't the computer help you? That's what Lion does."
1:21PM Next: Auto Save
1:21PM It works system-wide, including window placement, Spaces, everything.
1:21PM Windows, selections, tools, even highlighted text are just the way you left them.
1:20PM "Now when you launch an application in Lion it brings you right back to where you left off."
1:20PM Phil's talking about exiting an application and having to start over again when you re-load it.
1:20PM Next: Resume.
1:20PM If you make a pinch gesture and all your apps appear, multiple pages in a big grid -- kind of like iOS actually...
1:19PM Now talking Launchpad.
1:19PM They're adding delta updates too, which should make patching easier and more quickly.
1:19PM The App Store is now built-in to Lion, and they're adding in-app purchases, push notifications, and there's a built-in sandboxing mode to boost security.
1:18PM The Mac App Store is now the #1 channel for buying PC software. It's ahead of Best Buy, Walmart, and Office Depot.
1:17PM "You can get your software right from the comfort of your home on your Mac."
1:17PM "It is the best place to purchase and discover new Mac desktop applications."
1:17PM Phil's back. Now it's time to talk about the Mac App Store.
1:17PM To delete a Space, just click the X in the upper-left and the windows all fly right back to the main view.
1:16PM If you're drowning in windows, this is your life saver.
1:16PM Hover over to the upper-right and you can create a new Space. Then, just click and drag any window you want into it.
1:16PM Quick, and easy, and if you hit spacebar while hovering over any it'll give you a zoomed-in preview.
1:15PM Pick any app in this view and it comes to the fore, including full-screen apps.
1:15PM Now it's Mission Control, three-finger swipe upward.
1:15PM "That's great stuff."
1:14PM Birds flying around his head now. 3D birds. So sweet.
1:14PM Now Photo Booth, running full, showing off a suite of face detection options.
1:14PM Again, to exit full-screen there's a control on the upper-right.
1:14PM It's almost like task-switching in WebOS or QNX on the BlackBerry PlayBook, if you're familiar with those.
1:13PM You can get back to your desktop easily and swipe back and forth from one app to the other.
1:13PM Now looking at iPhoto in full screen. Really nice animation when you maximize it -- the desktop fades off to the left.
1:13PM You can take two fingers to swipe forward or backward, which actually knocks the page right off the side, as if you're going through a deck of cards.
1:12PM You can zoom in and out, or double-tap to smart zoom in or out.
1:12PM He's talking about momentum scrolling "The page feels alive beneath your fingers."
1:12PM Starting with gestures, in Safari, and we're looking at BBC -- which has a big story on a sex scandal up top. Oops.
1:11PM Craig is on-stage to give us a demo of all this. "Let's take a look at Lion in action."
1:11PM Shows you all your apps and all the documents you're working on. Plus, you can get to all your spaces up top. Multiple views of apps, and you can get to all your widgets on the upper-left.
1:10PM Phil's talking about Expose and Spaces, but Lion unifies all that with Mission Control.
1:10PM Next feature: Mission Control
1:10PM iCal works, Preview showing PDF full-screen. A "beautiful experience"
1:10PM We're looking at Safari, iMovie, and dozens of other standard apps.
1:09PM "We've worked on a number of our applications to bring them into the new full-screen mode in Lion."
1:09PM There's a new control in the upper-right to go full, and with a swipe you can go between them.
1:09PM With Lion, developers will be easier able to make their apps run in full-screen.
1:08PM Next up: full screen applications.
1:08PM Scrollbars? Who needs 'em? They're gone if you're using gestures, appearing only when you scroll.
1:08PM Showing multi-touch tap-to-zoom, pinching, two-finger swiping, "all with an incredible, physical realism that's never been possible in a PC operating system before."
1:07PM "We now build multi-touch trackpads into all of our notebooks... Lion can count on multi-touch."
1:07PM First up: multi-touch gestures.
1:07PM Boo, only have time for 10.
1:07PM "Next up in OS X is Lion, a major release with over 250 new features. If you'd like we can go over every one of them today."
1:07PM And, of course, it's going to be evolving even more today...
1:06PM Talking up OS X's solid UNIX foundation, launched 10 years ago. Showing what it looked like then. It's evolved quite a bit since then.
1:06PM "They're great not just because of the hardware, but because of the software they run."
1:06PM Mac sales are almost 3/4 notebooks at this point, far outpacing desktop sales.
1:05PM Year-over-year, the PC has shrunk 1%, while the Mac has grown 28%, and out-grown the industry every quarter for the last five years.
1:05PM "We now have over 54 million Mac users around the world and growing." That is a lot of Macs.
1:04PM Phil: "This product is all about the Mac, and the Mac is doing incredibly well."
1:04PM Phil Schiller is going to give us some Lion demos, and he's up on stage.
1:03PM "We've got some great stuff to talk about: OS X Lion, iOS 5, and some kind of interesting new cloud stuff."
1:03PM "If the hardware is the brain and the sinew of the product, the software in the middle is the soul."
1:03PM Over 120 sessions, over 100 hands-on labs, and over 1,000 Apple engineers here to help.
1:02PM "We wish we could sell more tickets, but we don't know where to have it if we do."
1:02PM Over 5,200 attendees, sold out in two hours.
1:02PM Steve: "We've got an awesome morning together, this morning. Thank you for coming so much."
1:02PM "We love you." -- shades of last year.
1:01PM Huge applause, standing ovation. This crowd is pumped.
1:01PM Steve Jobs is on the stage!
1:01PM Lights coming down, crowd is amped. Here we go!
1:00PM "I Feel Good!" We do too!
12:59PM Hah, got silent for a moment, crowd got hushed, then James Brown woke everyone up again.
12:57PM We're seeing a few MacBooks up on stage. Demo units, for sure.
12:56PM You can silence yours too if you want to get that "I'm totally there" experience.
12:56PM "Ladies and gentlemen, our presentation will begin shortly." We're being asked to silence our phones.
12:55PM "Hold on, I'm Coming" is blasting now. Neither Jake nor Elwood have been spotted yet, but we're keeping our eyes open.
12:52PM Apple is really pushing the soul music as they're pushing people in the aisles. Pandemonium -- funky, funky pandemonium.
12:50PM ...and it feels like we're shoulder-to-shoulder with all of 'em.
12:50PM Crowd's filling in -- feels like four million people in here. Maybe five. Maybe more.
12:48PM Just to be extremely, super clear: Apple will not allow *anyone* to livestream the actual keynote. We'll be livestreaming a post-show afterwards -- you'll find the liveblog here.
12:43PM A teaser for some data recovery software to come? Probably not.
12:42PM And we're in our seats! "Rescue Me" is playing over the speakers. A little Aretha to get the crowd warmed up.
12:17PM So, any guesses as to what's on deck? New iOS notification system? iCloud integrated into the core of Lion? A unicorn-embossed iPod nano (with camera)?
12:04PM We're just about to be ushered into the photo pit... we'll drop a few more updates once we're settled. Just as a reminder, we aren't expecting any actual news to drop prior to 10AM PT.
12:03PM Oh, and just so you know: Tim Stevens will be providing textual updates today, with Darren Murph shooting the stills. Here's a glimpse of the line wrapping around outside... four hours prior to showtime.
12:02PM Oh, and if you couldn't guess, the topics of conversation involve Lion (Gestures, etc.), iOS 5, and whatever "iCloud" is. Something about "files" in the "cloud."
12:01PM And we're in! Still an hour to go, but the line's already getting pretty insane. Typical Apple event, we guess.