[ Typing Sounds ] [ Music ] [ Cheers and Applause ] >> Good morning. Good morning. Good morning. Thank you so muchfor joining us. Welcome to our Town Hall onthe Infinite Loop Campus. Normally, we don’t spenda lot of time looking back but yes we are about tocelebrate Apple’s 40th birthday on April 1st. [ Applause ] That video lists someof the amazing products and epic moments in our history and reminds us just howmany times Apple has changed the world. Recently, we passeda major milestone that no one could’veever imagined. There are now more than1 billion Apple devices in use around the world. [ Applause ] This is an incredible milestonefor us and an indicator of how much impact Apple hason people around the world. Our products are suchan important part of people’s daily lives. And with that, comes asignificant responsibility. So before we get started today,I’d like to address something that I know is on the mindsof many people this morning.We built the iPhonefor you, our customers, and we know that it is adeeply personal device. For many of us, the iPhoneis an extension of ourselves. About a month ago, we askedAmericans across the country to join in a conversation. We need to decide as a nationhow much power the government should have over our dataand over our privacy. I’ve been humbled and deeplygrateful for the outpouring of support that we’vereceived from Americans across the countryfrom all walks of life. We did not expect to bein this position at odds with our own government,but we believe strongly that we have a responsibilityto help you protect your data and protect your privacy. We owe it to our customersand we owe it to our country.This is an issue thatimpacts all of us, and we will not shrinkfrom this responsibility. [ Applause ] Thank you. Thank you. Thank you. Thank you. OK. So let’s get back to whyyou’re here this morning. Because so many people useour products every day, we understand that we have anopportunity and a responsibility to impact things for the better. So we want to get startedthis morning by talking about two initiativeswhere we are working hard to leave the worldbetter than we found it. We’d like to start withthe environment and I’d like to invite Lisa Jackson upto tell you what we’re doing to preserve and protectthe environment. Lisa. [ Applause ] >> Thank you. Thanks so much. Well, you know, just likeeverything we do at Apple, when we think aboutthe environment, we think about innovation. You see, we want to changethe world for the better and we think there’s nogreater challenge in the world than our changing climate.Now, the solution is energyefficiency and renewable energy, and the time foraction is right now. So two years ago, we toldyou about our ambitious goal, one that we hopeothers will adopt. We told you that our goal wasto be 100% renewable in 100% of our operations worldwide. That’s all of our offices,all of our retail stores and every single oneof our data centers. So two years later,how are we doing? Well, currently, 93% of our facilities worldwiderun on renewable energy. [ Applause ] And just last year,we reached our goal of using 100% renewablepower to power our operations in the United States, as well asour offices and stores in China.In fact, we’re nowa 100% renewable in 23 countries aroundthe world. Now, in some places we’re able to purchase renewableenergy right from the grid, from existing sources, butthat’s not always possible, which has led us to somepretty innovative solutions. In Sichuan Province,China, we found a way to build a 40-megawattsolar farm without disturbingthe local population. Yeah. [ Applause ] The innovation is inbuilding a system that allows for electricity generationand hay production for the local yak ranchers.That solar project is producingmore than enough electricity to power our 34 retail stores and our 19 officesin the country. That makes our facilitiesthere carbon-neutral. In Singapore where there’s notenough room to put solar panels on the ground, we looked up. Solar arrays on more than800 rooftops will cover the electricity use of ouroffices and our future stores. We’re really proud to be a100% renewable in Singapore. We’re also really proudof the fact that 100% of our data centers are poweredby clean sources of energy like the sun, wind and water. Now, think for a secondabout what that means.It means every timeyou send an iMessage or make a FaceTime videocall or ask Siri a question, you can feel really good about reducing yourimpact on the environment. Now, let’s talk aboutanother way that we’re reducing our impacton the environment and that’s by protecting forests that produce the paper we useespecially for our packaging. You see, we believe that paper like energy can be arenewable resource. So we’re proud to announce thattoday 99% of our packaging comes from paper that isrecycled or is coming from sustainablymanaged forests. [ Applause ] This is especially importantas we continue our move to all paper packaging butwe’re not stopping there. Through our partnershipwith The Conversation Fund, we’ve permanently preserved over36,000 acres of working forests in Maine, in North Carolinaand we’re partnering with World Wildlife Fund toimprove the management of up to 1 million acres in China.You see, our goal is toadd to the world’s supply of responsibly sourced paperrather than take from it. Now, while we’re focused onconservation, let me tell you about another way we’re working to preserve our planet’sresources, and that’s throughreuse and recycling. You see, we worked really hard to make sure our products don’tend up in places like this, and we think the best way to dothat is to have them be reused. That’s why we designour products to last, and we’re happy to say thatthanks to their durability, the vast majority ofiPhones that we get back end up being reused, includingthe phones we get back from our iPhone upgradeand trade up programs. But at some point, even ourproducts need to be recycled.Many recycling systemstoday waste much of the materials theycollect, so it can’t be reused. We think it’s timefor a new approach. We put an incredibleamount of energy into designing the bestproducts in the world and we put that same kind of energy intothinking about what happens when they can no longer be used. Let me introduce you to apretty cool R&D project, we call him Liam. >> The iPhone is the resultof years of innovation but true innovation meansconsidering what happens to a product at everystage of its life cycle. Meet Liam. When it’s time, Liamdeconstructs your iPhone. Parts are detected andremoved and separated, so the materials inside thoseparts can be repurposed. To rescue cobalt andlithium from the battery, separate the gold and copperin the camera, extract silver and platinum from the mainlogic board, so the materials in your iPhone can live on. Because in a worldwith limited resources, some things can’t be replaced. [ Music ] [ Applause ] >> He is pretty cool, right? There’s no othermachine in the world that can do what Liam cando, and it was conceived and designed by Apple engineersright here in California.The things we’ve learned from this project will helpus make even bigger strides in the area of reuse andrecycling as we go forward. As you saw on the video, Liam separates the iPhoneinto its components. This allows us torecover the materials, high quality materials,and reintroduce them into the global supply, andthat saves natural resources. So that tungsten from theiPhone alert module can be used to make a precisioncutting tool, and the silver from the motherboard can beused to, in a solar panel. Now, ultimately, our goalis to create breakthroughs that allow us to use thosehigh quality materials in our own products becausereuse and recycling is so important, and that’swhere you can come in. With Apple Renew, you canrecycle your devices easily and quickly in a waythat’s safe for your data and safe for the planet.All you have to do is takethem into an Apple retail store or send them to us for free byvisiting apple.com/recycling to print a prepaidmailing label. We’re making great progressin our environmental efforts but we have a lot moreto do and we promise to keep you updatedalong the way. Now back to Tim. Thanks. [ Cheering and Applause ] >> Thank you, Lisa. [ Applause ] Powering Apple on a100% renewable energy, it is an incredible,ambitious and bold objective but we are determined to meet itand we hope others will join us. The second initiativewe’d like to talk about this morning is health. With the launch ofResearchKit last year, we’ve seen that Apple technologycan have a positive impact on people’s health. And to tell us about someprogress in this area, I’d like to inviteJeff Williams. Jeff. [ Applause ] >> Last year, we introducedResearchKit and our goal was to use technology to solve some of the biggest problemsfacing medical research.We wanted to makeit easier for people to participate andresearch studies. And we wanted to make iteasier to gather accurate and frequent data from thedevices we’re all already carrying in our hands. So what happened? Virtually overnight,the research studies that we launched became some ofthe largest in history with tens of thousands of peoplesigning up. Like in this Parkinson’s study which became the largestParkinson’s study in history in less than 24 hours. [ Applause ] Studies broke geographicalboundaries. Traditionally, studiesare centered around the research institutionbut with ResearchKit, anyone, anywhere can participate. Mount Sinai’s Asthma appactually discovered asthma triggers from all 50 states. But more importantthan any of that, researchers are gaining insights that just weren’tpossible before. Take diabetes. You and I know diabetesas type 1 and type 2 but Mass General’s studyof type 2 diabetes found that some people respondcompletely differently to therapies than others,supporting the theory that there are actuallysubtypes of type 2 diabetes, helping pave the way for precision medicinefor the future. Some of the world’s mostrespected institutions have released ResearchKitstudies covering a wide range of diseases and conditionsthat affect billions of people around the world.ResearchKit is opening up allkind of possibilities and I’d like to you show a videoto tell you more about it. >> ResearchKit wascreated with the goal of improving medical research. A year later, we’re seeingapp developers, doctors, and even patientstake these ideas and make them more powerfulthan we could have ever dreamed. >> We can detect autismas early as 18 months old but the median age that achild in US is diagnosed with autism is five years old, so we need a radicalnew solution. >> If autism is diagnosed early, it can have significantbenefits for the child. The point of Autism and Beyondis to help engage parents in a ResearchKit studybut more importantly is to eventually develop a toolthat they can use at home with their child toscreen for autism. >> We show the child videos andwe use the front-facing camera to record the child’sreaction to these videos, and then we have algorithmsthat then can tell us about the child’s emotionsand other behaviors.So we have a chance tounderstand child development in a completely new way. >> When you have largenumbers of people participating in a research, their insights into the conditionincrease exponentially. With ResearchKit, we’regetting day by day assessments on how people are doing. >> Parkinson’s, it’s adisease that slows you down and exercise willmake your feel better, that’s what I’ve come to learn. What I’m trying to do lately is to use the app before Iexercise, and then afterward to see how exercise mightforestall progression of it because it’s not curable at themoment, at the moment [laughs]. >> Now with mPower app,we’re getting information that can be used to personalizethe care that patients receive. >> If we could bringresearch and care together and really bridge that gap, we can help people livehealthier and happier lives. >> I had my firstepileptic seizure when I was three in a half. I always have that fear firstof all in the back of my mind.Am I going to have aseizure while I’m driving? What if I’m at workor I’m by myself? How am I going tohandle that situation? >> The EpiWatch app isthe first research app to use the Apple Watch. So those sensors can be used to collect physiologic dataduring seizures and we’re using that data to try todevelop a seizure detector. >> The research that theyare doing is exciting because they’re tryingto find a predictor. Having that would be amazingbecause I would know, hey, this is going to happen. You have plenty oftime to get to safety. It’s like, OK, I got this. >> This is no longerjust about research. People are using apps to learnabout themselves in a way that they couldn’t beforeto create a better life for themselves in termsof their own health.>> ResearchKit has clearlytransformed research. More importantly, it laid thefoundation to transform care. >> What’s really amazing about an iPhone is youhave it in your pocket. You don’t need anyspecial equipment. Here is the phone. We can do this science. We can do this medicinewith a phone. [ Music ] [ Applause ] >> You know, when we introducedResearchKit, our goal was simply to improve medical research, and we thought ourwork was largely done. But what you probably saw inthe film and what became clear to us later is thevery same tools we used to advance medicalresearch can also be used to help people with their care. Let me give you an example. In the Parkinson’s study,patients do a test several times with their iPhone like thatsimple tap test you saw on the video to assesstheir symptom levels.And researchers cansee the symptom level across a range of days. And they can see thisbefore and after medication. And there were lots ofpatients like patients A where you can see that symptomlevels improve post medication. In other words, themedicine is working. But there were also a lotof patients like patient B where post medication,there’s no improvement at all. Their symptom levelsdidn’t change. In other words, themedicine is not working. The patient eitherneeds a different dose or a different medication ormaybe no medication at all, but today neither the individualnor the caregiver has this information, and we thinkempowering people with data about their health isincredibly important. So today we’re launchingCareKit. [ Applause ] CareKit is a framework tobuild apps that empower people to take a more activerole in their care, and the very first CareKitapp being released today is for Parkinson’s.And it surfaces some ofthat valuable information we discussed, so people can startunderstanding better what affects their health. And these six leadinginstitutions will begin using this app with their Parkinson’spatients immediately, so they can have a moreinformed discussion about individualized treatments. Let me give you another example. Surgery. One of the thingsphysicians tell us is one of the most importantthings affecting outcome of surgery is actually what youdo during the recovery process. Yet, we go from beingmonitored by a team of highly trained specialistusing leading edge technology to being discharged withthis, a single sheet of paper.This is actually what happenspretty much across the country. This is your list of thingsto do, things not to do, which days you’resupposed to do them on. And adherence to this isnotoriously very poor. So, using the CareKitmodules, we’ve been working with Texas Medical Centerand they’ve created an app for the phone that got youthrough this critical process in a completely different way. It’s got a care card whichis your list of things to do every day in checklistform, and as you fill them out, the little heart fillsup, it’s really nice. It’s got a symptom andmeasurement tracker where you can recordinformation on your progress. It’s, you can record thingslike your temperature to monitor for an infection or you can usethe accelerometer on the iPhone to study the range of motion.And then you can share thisinformation with your loved ones who can help support youthrough this recovery process. And best of all, you canshare this information with your physician whowill take the results of how you’re doing and theywill dynamically update your care plan, so it changes on thefly, something just not possible with a sheet of paper. Those are just twoexamples of CareKit apps. There are others coming and we think the possibilitieshere are limitless. Now, a word about privacy,nothing is more sensitive than your health data. You decide which apps you use and with whom youshare this information. CareKit like ResearchKitwill be open source and it will be availablein April.We have been absolutely humbledand inspired by the response to ResearchKit and we can’t wait to see what great appsget created with CareKit. Thank you. Back to Tim. [ Applause ] >> Thank you. It’s amazing that in sucha short period of time that ResearchKit hashad a profound impact on the broad area of medicalresearch, and our hope is that CareKit can havethe same kind of impact on helping individualsmanage their care. So you’ve seen the latestimportant work we have going on the environment andin the health area, now I’d like to talkabout products and I’ll get startedwith the Apple Watch. Since we launched itless than a year ago, the Apple Watch has becomethe top selling smart watch in the world. But most importantly tous, customers love it. They found that it’snot just useful but it’s become an essentialpart of their daily lives.They love being able to receiveand respond to messages directly from the wrist, as wellas track their activity, manage their calendar,navigate with maps, and get up-to-the-minuteinformation on sports scores and news headlines and more. People also lovechanging the bands and how it gives the watchan entirely new look, one that’s appropriate for anypurpose or occasion or season. About a third of our AppleWatch wearers regularly change their bands. Today, we’re introducingsome brand new colors and a new band that’s made froma whole different material.Our new woven nylon band. Thank you. [ Applause and Cheering ] Our new woven nylonband features a unique four-layer construction. It comes in a varietyof vibrant colors. We think it’s going tobe incredibly popular. Also, there’s new sport andleather bands in all new colors, and there’s a stunningSpace Black Milanese loop that is absolutely beautiful. [ Applause ] We’re really excited aboutthis new spring line up and we want even more peopleto be able to enjoy Apple Watch and what it can do for them. So beginning today, AppleWatch will start at just 299. [ Applause and Cheering ] That’s our updateon Apple Watch. Now, I’d like totalk about Apple TV, bringing all new capabilities to the biggest screenin your house. People are absolutely loving thenew Apple TV with the App Store and the innovative Siri Remote. After the introduction of thenew Apple TV last quarter, we had the largestsales ever for Apple TV.Now, apps are thefuture of television and this transitionis well under way. In just a short period of time since the Apple TVhas been shipping, we have 5,000 appson the App Store. There’s amazing content appsto enjoy all over the world. Like this one from HBO, HBO Now, where you can watch the latestHBO shows whenever you want, wherever you want. Shows like “Game ofThrones” and “Veep” and of course “Silicon Valley”. And NCAA March MadnessLive just in time, where you can watch two livetournament games simultaneously, this is exclusive to Apple TV, and you can also monitor thescores of the other games and quickly changebetween the action. And of course, there’s awhole bunch of games to pick from like this onefrom AG Drive. Now, in addition to greatvideo content and great games, there’s a wide variety ofother apps on the App Store.Like Solar Walk 2, whichturns your living room into a planetarium, and BrainPOPwhich is a great educational app for kids, and GrubHub which youcan order your favorite food and get it deliveredright to your home. This is very key for me. And Cody, you can choose fromthe internet’s best workouts, there’s some great ones. This is just a small sample ofwhat’s available in Apple TV and much more is coming. Now, of course, tvOSpowers the Apple TV. And at the heart of theApple TV experience is Siri. With Siri, you can just askfor something great to watch. Like show me movieswith Kevin Hart. And there it is. Pick your favorite. In looking for amovie or a TV show, Siri searches the popularapps so you don’t have to.We’ve added some greatcontents app for Siri to search, we’ve got more coming, and we’llkeep adding more over time. Now, we’ve got some othergreat features coming to Apple TV like folders. Now, you can organize your apps in your home screenjust like you want to. [ Applause and Cheering ] And dictation. So you can now use your voiceto enter text on the screen. This includes usernamesand passwords. You’re really going to love it. [ Applause ] Plus Siri for the App Store. So you can ask forany app that you want or any type of appthat you want. And now, you can access yourentire iCloud Photo Library including live photosright on your big screen. All of this is available. It’s a free updatebeginning today. That’s Apple TV. [ Applause ] Now, I’d like totalk about iPhone. iPhone is the most lovedsmart phone in the world. And today, we’re welcoming anew member to the iPhone family. And to tell you all about it, I’d like to inviteup Greg Joswiak. Greg? [ Applause ] >> Thanks, Tim.Our customers are loving thenew iPhone 6s and 6s Plus and while the vast majority of our customers preferthis larger display iPhones, we’re here today to talkabout a smaller iPhone. Our four-inch iPhones areactually an important part of our lineup. Just last year we sold over30 million four-inch iPhones, that’s a lot of phones,put it in perspective, it took us about two and a halfyears to sell that many iPhones when we first startedfrom our entire lineup. So why are peoplebuying four-inch iPhones? Well, there’s two reasons. First, for some people theysimply love smaller phones.They want the mostcompact iPhone design. Second, we found that fora lot of these customers, it’s their first iPhone. Whether they’re switchingfrom Android or it’s their first smart phone, it’s the first timethey’re experiencing iOS and our hardware andsoftware integration and our amazing ecosystem. And in some countries likeChina, it’s the majority of these customers who it’stheir very first iPhone.So some people asked us,some people even pleaded us to please keep the four-inchproducts in our lineup. Well, today we’re going todo just that and we’re going to make it a whole lot better. And as you may have heard,we’re calling it the iPhone SE. [ Applause ] So let me show it to you. So we start with thisbeloved aluminum design but we’ve made some beautifulrefinements including this gorgeous rose gold finish. We’ve added matte-chamferededges and an inset stainlesssteel Apple logo just like the iPhone 6sbut it’s on the inside where the iPhoneSE really shines. It’s got advanced technologies that make this the mostpowerful four-inch phone ever. It’s incredibly powerfulwhich makes it even better to do the things thatiPhone customers want to do including playing themost graphic intensive games. So at the heart of the iPhoneSE of course is our chips, our amazing Apple A9 chip with its embedded M9motion coprocessor.This means that the iPhoneSE has the same processing performance as the iPhone 6s which is literally doublethe speed of the iPhone 5s. And the iPhone SE also hasthe same incredible graphics performance as the iPhone 6s which is three timesfaster than the iPhone 5s. And the embedded M9 motioncoprocessor is always on, so it enables allkinds of features like tracking yourfitness all day but it allows youto use “hey Siri”. So hands free, youget to say things like this just — “Hey, Siri. How do you feel aboutrecycling?” >> I love the AppleRenew program but Liam really tears me apart. [ Laughter ] >> That’s for Lisa. So even though it has allthese new capabilities and it’s so much more powerfulthan the iPhone 5s, the iPhone SE deliversincredible battery improvements across the board. And of course people love takingphotos with their iPhones more than any other phone or camera. So we wanted to give it ourmost advanced camera system.So we’ve given it our incredible12-megapixel iSight camera with Focus Pixelsand True Tone flash. And we have of course that imagesignal processor from the A9 that enables all kindsof great features like the panorama picturesup to 63 megapixels but also improvements tovideo, slo-mo, time-lapse and of course your photos, which means you can incrediblepictures like this and this. I don’t know whatyou’re thinking but that is not Phil Schillerskateboarding to work. He looks just like him though. And yeah, and the iPhoneSE can capture live photos. So you can take yourstill photos and have them come to life. [ Applause ] And our front-facingFaceTime HD camera, we’d given the Retina Flash. What that means is if you wantto take a selfie in low light, we’re able to drive the displaythree times brighter than normal in order to flash the True Toneflash, so you get a picture like this insteadof the dark selfie.It can even capture 4K videoand just like the iPhone 6s, you can edit up to twosimultaneous streams of 4K video with iMovie righton the iPhone SE. We’ve also given it greatwireless capabilities. We now have LTE speeds that are50% faster than the iPhone 5s and we’ve added more LTE bands so you have betterglobal roaming and of course high fidelity callquality with voice over LTE. And we’ve given it highspeed WiFi as well 802.11ac, which is three timesfaster than the iPhone 5s and high quality WiFicalling is also supported. Now, it has Touch ID to keep thecontents of your iPhone secure but also quicklyavailable to you with just a touchof your finger. And now, you can make easy,secure and private payments with Apple Pay built in. [ Applause ] So, to do that, we’veadded an NFC Radio and a secure elementinside of the iPhone SE.And we’ve launched ApplePay in these countries and we most recentlyrolled it out on China where the response wasabsolutely fantastic. We had over threemillion cards added in the first 72 hoursalone, absolutely fantastic. And of course, the iPhoneSE meets our really high environmental standards. It is, of course, highlyrecyclable aluminum and glass but it’s got other recyclablecomponents and materials as well which both Lisa and Liam loves. And it’s free fromthat naughty list of environmentallyunfriendly materials as well. So as you can see, we’veadded an incredible array of advanced technologiesto the iPhone SE in its really compact design which makes it the mostpowerful four-inch phone ever. It really is an amazing device. So the iPhone SE,what does it cost? Well, we’re goingto start the price of the iPhone SE at only $399. [ Applause ] Which makes it our mostaffordable price we’ve ever introduced a new iPhone at.And we have a higher capacity,64 gigabyte model for just 499. And if you’re on a two-yearsubsidized service contract, you get the iPhone SE for free. But of course we knowinstallment plans have become incredibly popular, theiPhone SE now starts at just $17 per monthwithout a service contract. So the iPhone SE joins ourincredible line up of iPhones with the iPhone 6, 6Plus, 6s, and 6s Plus. It’s the strongest iPhonelineup we’ve ever had. We can begin, we’llbegin taking orders for the iPhone SE thisThursday, March 24th and it’d be available nextweek, so March the 31st. We’ll be shipping firstin these countries but many more willquickly follow. We’ll be in more than 100countries by the end of May.So that’s the iPhone SE. [ Applause ] So whether this isyour first iPhone or you just love smaller phones, we think you’re goingto love it. But I got more. Fundamentally importantof course to the iPhone experience is iOS. And iOS is the most advancedmobile operating system in the world. And of course ourlatest version, iOS 9 which was releasedthis past fall with incredible featuresas well as improvements to the foundation of iOS. And iOS 9 today is running on80% of our active iOS devices. That compares incredibly, favorably with thelatest version of Android also released thispast fall which is running on 2% of their active devices. And for the last couple ofmonths, we’ve been testing and publicly and previewingiOS 9.3 which is one of the biggest dotreleases we’ve ever done. And it adds some newinnovations as well improvements to the wide range of apps,so I’d like to share some of the highlights with you.Let’s start with Night Shift. So studies have shown thatexposure to blue light in the evening can actuallymake it harder for you to fall asleep at night. So Night Shift automaticallyshifts the colors of the display to the warmer endof the spectrum which may help yousleep better at night. So how does that work? Well, when it’s enabled NightShift uses your iOS device’s clock as well as itsgeolocation to know when it’s sunsetin your location. And then it automaticallyshifts the color of that display to the warmer endof the spectrum which reduces the blue lightwhich may help you sleep better. It’s a really cool feature, that’s why I’m stillwide awake and alert. Notes. Let’s talk about Notes. Notes is actually one of themost used apps in the platform. It’s used by literally hundredsand millions of people every day and customers are loving thenewly redesigned Notes app in iOS 9.Well, today, we’readding the ability to further protect yourmost personal notes with a passcode ora fingerprint. [ Applause ] Health. The health app givesusers a quick and easy dashboard with their health and fitnessdata and there are already over 2500 apps that provide datainto the health app and we want to make it easier forcustomers to find the right apps for their healthand fitness needs. So we’ve added greatapp suggestions right into the health app soyou could easily add data to your dashboard. News. We introducedApple News with iOS 9 and it’s become thesource of news for over 50 millionactive users. And in iOS 9, we wantto make it even faster and more personalized. So we’re adding topstories to make it easier to track your news on youriPhone or iPad, and for you, now suggests trending topicsas well as editor’s picks.CarPlay. CarPlay is the safer,smarter way to use your iPhone in your car, and every majorcar brand has committed to integrate CarPlay intotheir cars and already more than 100 car models have beenannounced with CarPlay support and more and more keep coming. So you can expect to seethis in more and more places. And with iOS 9.3, it wouldadd even more useful features to CarPlay. For instance, your Apple Musicexperience gets better with new and for you, whichprovides songs, artists, albums handpicked by experts,as well as selections based on your own preferences,and maps gets even better. With the nearby feature whichallows you to find gas, parking, restaurants and more withjust a tap of your finger.Education. iPad with its powerfulfeatures and apps opens up new and more engagingways of learning, and with iOS 9.3 using iPadsin the classroom is even easier and more powerful with a previewof a new suite of software and capabilities thatare designed specifically for students, teachersand administrators. [ Applause ] So that’s just some ofthe highlights of iOS 9.3. We think it’s turned outreally great and it’s going to make the best mobileexperience even better. And it’s available as a freeupdate for all of you today. That’s iOS 9.3 and iPhone SE. Thank you very much. [ Applause ] >> Thank you.It’s a great update to iOS. I don’t know about youbut I’m looking forward to sleeping better andI’m incredibly excited about iPhone SE. Many, many customershave asked for this and I think they’rereally going to love it. Next up is iPad. We believe that iPad is theperfect expression of the future of personal computing. We took a giant step inthis direction last fall with the introduction ofthe 12.9-edged iPad Pro, and since then manypeople are telling us that the iPad Pro has becometheir primary computing device. We’ve got some excitingnews for you today. And to tell you all about it, I’d like to inviteup Phil Schiller. Phil? [ Applause ] >> Thank you. Good morning, everyone. I couldn’t be more excitedto be the one to be able to tell you all about iPad. Customers really have fallenin love with the new iPad Pro in the six months thatit’s been on the market. They’re in love with the huge12.9-inch retina display, all its performance,all the capabilities, the speaker system,and the Apple Pencil.That is a true revolutionarybreakthrough. We’re hearing so much fromcustomers around the world, customers like John Lasseter,Chief Creative Officer of Pixar and Disney Animation Studios. John had this tosay, “The iPad Pro and the Apple Pencil are theclosest we’ve ever been able to get in the digital worldto actually drawing on paper.” Or Stephen Gates, Headof Design at Citi. “At Citi, iPad Pro is trulytransforming how we work. Our design team hasincorporated iPad Pro into their daily workflow,allowing them to create, collaborate and shareideas in new ways.” And Alex Valdman, Headof Design at Rapha. “iPad Pro goes withme everywhere. For everything I do, includingdesigning the latest cycling collection, it has notonly replaced my laptop but my paper notebook as well.” People love iPad Pro. It is a revolutionary device. And so, that’s why, today, we’reso excited to introduce you to, for the first time, the secondmember of the iPad Pro family.An entirely new iPad Pro based around a 9.7-inchretina display. And it weighs lessthan one pound. It is an iPad Prothrough and through. But why make a secondiPad Pro that’s smaller? Well, there are tworeally great reasons. First, we started iPadwith a 9.7-inch display for a very good reason, it’s alarge enough display to get all of your work done, but smalland light enough to carry with you everywhere you go. People have loved the size. And from the beginning, it has remained ourmost popular iPad size. In fact, I’m really happyto tell you that to date, we sold over 200 millioniPads with a 9.7-inch display. So, for all of thesecustomers, when they learn about the features ofiPad Pro, they’ll all see that it is theirultimate upgrade.There’s a second group ofpeople that would love to reach with this new iPadPro, Windows users. You may not know this. But the majority of peoplecome to an iPad Pro are coming from a Windows PC, adesktop or a notebook. Now, of course, we all know, Windows PCs were originallyconceived off before there was an internet, beforethere was social media, before there were app stores. And this is an amazingstatistic. There are over 600million PCs in use today that are over five years old. This is really sad. [ Laughter ] It really is. These people, yes, could really,really benefit from an iPad Pro. And when they see the featuresand performance and capabilities of a product like the iPadPro designed for a modern and digital lifestyle,well, many of them will find that it’s their ultimatePC replacement.Best of all, they can get access to all those incredibleapps in the App Store. And we’re so happy totell you, there are now over one million apps in theApp Store designed for iPad. And they work beautifullyon iPad Pro. So let me tell you a lot moreabout this brand new iPad Pro. First, it has a pro display. It starts with thesame materials used in a 12.9-inch iPad Pro,an oxide TFT display driven by a custom Appletiming controller. The custom controller hasa variable refresh rate. So it runs really fastbut power efficient. We use our photoalignment technology to line the individual crystals so that it has incrediblecontrast ratio and sharp text.But there’s so muchmore to this display. It is 40% less reflectivethan an iPad Air 2. At just 1.8% reflectivity, it is the lowestreflectivity of any tablet. And if you’re a pro working,you really appreciate that low reflectivity. And it’s brighter too, 25%brighter than an iPad Air 2. It puts out 500 nits of light. It makes it the brightesttablet available. And there’s a verywide color gamut. It uses the digitalcinema’s spec, DCI P3, which gives it a 25%greater color saturation than iPad Air 2. In so many ways, this is thebest display we’ve ever built for an iPad.In addition, it supports tworeally breakthrough features. The first, you’veheard about from Jos. It works with Night Shift. So as the sun goes down,the brightness dims a bit, the blue light wavelengthsget reduced. And some people find that itmakes it easier to get to sleep. But the second feature isa breakthrough that’s never appeared on any device before. It’s incredibly innovative. We call that a TrueTone display. A True Tone display measuresthe color temperature of ambient light andadjusts the display to match. I heard an oh out there. Somebody already gets this. This is great. It has two new four-channelambient light sensors that measure both brightnessand color temperature. So how does that work? Let’s start witha piece of paper.Piece of paper reflects light. So when you use it indifferent environments, it reflects the colortemperature of the light in thatenvironment. Our optic nerves were designed to be comfortablewith this experience. If you go into the warmincandescent light of your home and the paper takeson a warm tone. But now you use adigital device. Digital devices emit light. And that light has the samecolor temperature no matter where it is. So the color cast isn’t right. It doesn’t match paper white. Well, except now if it’s aTrue Tone display, it does. No matter where you use it, it automatically senses thecolor temperature of the light and becomes warmer or coolerand matches paper white and it’s really natural to use. Once you use a display withthis True Tone technology, you never want to go backto old technology again. It is quite a breakthrough. [ Applause ] Next, it has pro audio system. It’s four speakersworking the stereo system to adjust automatically thefrequencies between highs and lows dependingon how you hold it.It also puts up twice theaudio volume of an iPad Air 2. But best of all, thishas incredible level of performance unlikeany other mobile device. It has our fastestchip ever, an A9X. This is a third generation64-bit chip over 3 billion transistors. It’s made with a 3DFinFET architecture. If you don’t know what thatis, it is unbelievably state of the art and peopleare noticing. TechRadar wrote, “iPad Propacks powerful enough hardware to be a genuine laptopreplacement, with more than enoughgrunt in terms of processor and graphics performance.” And it has a ton of grunt. Twelve cores of graphicsdelivering over half a teraflopof graphics power. That’s more than an Xbox 360and a device that you hold in the palm of your hands.It’s incredible for gaming. It’s also incredible forprofessional applications, modeling, rendering, justfly on the new iPad Pro. And it’s absolutelyenough performance for their great iOS 9features from multitasking where you can have apps sideby side and video streaming, and picture in picture. It is an incrediblypowerful chip. It also, as Jos told you, includes our embeddedM9 motion coprocessor. With that, apps that use ourbuilt-in sensors are instantly calibrated and upand running quickly. It also supports “hey Siri”. I said it that way because Iknow it also sets off peoples phones when I do it. This means you can talk toyour iPad and you can ask it to open your mail andcheck for new messages.You can talk to your iPad andask it to go to website or look up a contact and it can doit all automatically for you. And the iPad Pro supports agreat line of pro accessories. There’s a smart keyboarddesigned specifically for the size at that9.7-inch retina display. [ Applause ] As you put your iPad on, it justautomatically starts to work and the software adjusts. For example, my favoritefeature, command tabs, I can switch between mymultitasking applications just like on my desktop Mac. And it supports the greatestaccessory Apple has ever made, the Pencil. This is an amazing device. It’s a breakthrough andpeople are really falling in love with it. Christopher Phin ofCreative Bloq wrote, “Let me be completely clear, this is the best digital drawingtool there has ever been.” We couldn’t agree more. It is an amazinglyprecise drawing tool. It senses pressure. There’s also a tilt anglefor amazing drawing. And you can draw it justlike you do on paper by putting your handson the iPad because of its built-inpalm rejection software.And it recognizes the pencilas well as your fingertips. So you could useboth simultaneously to advance techniques for yourdrawings, your illustrations. People love drawing anddoing illustrations on it. They also like takingnotes on it. It’s an incredible device. There are other proaccessories as well. A great new line of lightningadapters, for example, a new lighting SD cardreader that’s incredibly fast and this is a really powerfulaccessory, a USB card reader. Sure, it lets you plug in yourcamera which many of us do but because it’spowered you can use a lot of powered USB devices.For example, you can plug inan ethernet adapter to get on your corporate network. And for those of you who arepodcasters you’re likely to plug in a microphone and do yourpodcast right from an iPad Pro. [ Applause ] Customers love taking photoswith their iPads as well. Certainly photosfor personal use but more importantly they canuse the camera for work as well. You can use the camera inaugmented reality apps. You can use it toscan documents. You can use it to seeconstellations in the night sky. There are so many greatuses for that camera. And in the new iPad Pro, we’ve put our mostadvanced camera yet. It’s a 12-megapixel iSightcamera with its Focus Pixels, True Tone flash, that amazingimage signal processor built into the A9X allows youtake pictures quickly with amazing color andlow noise, huge panoramas and beautiful live photos. And you can shoot4K video with it.So right on your iPadPro, you shoot 4K video, you can edit multiple streamsright there on the device. There’s a 5-megapixel FacetimeHD camera which is wonderful for doing video conferencecalls. And again, the wholedisplays of retina flash so you can take greatselfies with you and your friends as well. There are so many new features and innovations packedinto this iPad Pro. Hopefully you see what we do. This is the best upgradeever for every iPad owner. And it is the ultimatePC replacement for all those oldPCs in the world. Like everything we do,the team works hard to make it environmentallyfriendly, mercury-free, LED-backlit display,arsenic-free display glass, BFR-free, Beryllium-free,PVC-free and highly recyclableglass and aluminum. The iPad Pro comes in fourmetal finishes, silver, gold, space gray, and for thefirst time rose gold as well. [ Applause ] And there are great casesand covers that you can add. They come in a varietyof beautiful colors.So this is the iPad Pro. With the 9.7-inch retinadisplay, what will it cost? Well, we’re really excited to offer a 32 gigabyteiPad Pro for just 599. That’s $200 less expensivethan the 12.9-inch. And hope we can reach alot more customers with it. For 128 gigs for 749 andfor the first time ever in iOS device there’sa configuration now with 256 gigabyte in storage. [ Applause ] Orders begin thisThursday, March 24th and they also start shippingnext week on the 31st. We are so excitedabout this iPad Pro. The team has workedso hard on it. We really love it andwe’ve created a brief video to tell you just alittle bit more about it. [ Music ] >> Our vision for personalcomputing has always been that the most powerfultechnology should deliver incredible capabilitywithout the complexity.With the technologiesbuilt into the new iPad Pro and the remarkable appsthat take advantage of them, it delivers a uniquelyintuitive and immersive way to do everything you do. iPad Pro changes the waypeople discover, capture, edit, design and produce. At the heart of thisversatility is its performance. The A9X chip was designedspecifically for iPad Pro to provide more power thanmost PCs in a thin, light, intuitive device you cantake anywhere with you.The immersive iPad experiencestarts with its retina display. Each one is individuallycalibrated, so you always see vibrantcolor, contrast and clarity. The display on the new 9.7-inchiPad Pro features a wider color gamut for even morestunning imagery. It’s also the first iPadwith the True Tone display, which responds and adaptsto the light around you. Four channel ambient lifecensors measure the intensity and color temperatureof your environment and then adjusts thedisplay to match. So what you see on the screenis more natural looking and easier on your eyes. To complement its vivid display, iPad Pro’s four speaker audiosystem produces high fidelity sound that automaticallyoptimizes the tab volume for whichever wayyou’re using it. [ Music ] Apple Pencil delivers anexperience that’s natural, familiar and fluid withthe added versatility of a digital tool. Its advanced sensorsdetect pressure and tilt while the touch systemrecognizes your hand, fingers and Apple Pencil individually. So, when you rest yourhand on the screen, it ignores inputgenerated by your palm and forearm lettingyou work as freely as you would on apiece of paper.The smart keyboard was designedto add even more flexibility. It works seamlessly with iOS 9 to add unique onscreenshortcuts and commands. [ Music ] The iPad Pro display isthe ultimate view finder for capturing photos and videos. And the 9.7-inch iPad Profeatures the 12-megapixel iSight camera making it a powerfuldevice to shoot and edit, even 4K video wherever you are. The new iPad Pro giveseveryone the ability to do amazing things. Things you’ve thoughtyou can do only on a PC and things you’venever done before. It’s where we believepersonal computing is going. [ Applause ] So these are all iPad Prosnow on two sizes starting at just 599 the 9.7 andthe 12.9 also now gets that new 256 gigabyteconfiguration, so our highest end customersare going to love that. This is the best lineup we’veever had of iPads by far. It starts with justan iPad Mini of 269. The iPad Air 2, which used to be our highest end 9.7-inchiPad is now reduced a $100, to just 399. So a lot of customersare going to like that. And the iPad Prosstart at just 599. So that’s our news oniPad, back to you, Tim.>> Thanks, Phil. We think whether you’vealready have an iPad or whether it’s time for youto replace that PC laptop, the iPad Pro is anamazing choice. It allows you todo so much more. So you’ve seen some incredibleproducts this morning and some, just some great thingson two initiatives that are very important to us. Like our work to curtailclimate change by powering Apple on a 100% renewable energy, and CareKit transforming the wayindividuals manage their health. Cool new bands for Apply Watchnow starting at just 299. A great update for Apple TVwith folders and expanded use of both Siri and dictation. The iPhone SE, the most powerfulfour-inch phone ever created. And iPad Pro, so powerful and socapable, it truly is the future of personal computing. We’re always pushing forwardin innovating and doing things that positively affectmany people. It’s something that Apple hasbeen doing for over 40 years.This is probably thelast product introduction in the Town Hall thatyou’re sitting in today. We’ve had a lot ofimportant announcements here. It’s a very special placewith lots of memories. The iPod was announced in thisroom and so was the App Store. We have lots of greatmemories here. Next year, in 2017, we’relooking forward to moving — [ Applause ] — to our new campus andour new theater there. And we expect that we’re goingto have many, many opportunities to invite all of youto join us there. We’re looking forward to movingand we can’t wait to see what’s in store for the next 40years and share it with you. I’d like to thankeverybody for coming.Special thanks to everyone atApple who made today possible. Members of the press. We have a hands-on area acrossthe hall in the piano bar. And so, please go get yourhands on these great products. Thank you very much. [ Applause ].
