11:15 - DM: Another major milestone. This month they will sell their 100th million iOS device.
11:15 - DM: iPhones, iPod touches, and iPads. 100 million devices.
11:15 - DM: "There is definitely a market for your applications. No one even comes close to this."
11:15 - DM: That was iOS 4, #6.
11:15 - DM: #7 iBooks.
11:15 - DM: iBooks is coming to the iPhone with iOS 4.
11:15 - DM: Same controls, same highlighting, same bookmarking, same notes as the iPad.
11:16 - DM: It's done really, really well, same bookshelf, the same PDF reading.
11:16 - DM: You can save your PDFs from mail onto your iBooks shelf.
11:16 - DM: And, of course, the iBookstore right on the iPhone.
11:16 - JS: PDF reading in iBooks is going to be interesting. I'm not sure if it'll kill PDF readers or not. Getting an epub file on iBooks is such a colossal pain. If you have to drag your PDFs into iTunes and then sync them via a wire: yuck.
11:16 - DM: iBooks on the iPhone, iPad, and iPod touch. What can we do with all these products together? These factors work across these products and wirelessly.
11:17 - DM: You can purchase and download a book wirelessly onto device. Don't have to go through computer or anything.
11:17 - DM: Download the same book to all your devices at no extra charge.
11:17 - DM: Buy a book on your iPad, download it to your iPhone.
11:17 - DM: Only have to buy it once.
11:17 - JS: This is one of the great advantages of the Kindle platform - syncing to every device, including saving your place. So now iBooks will do this too.
11:17 - DM: And, iBooks will automatically and wirelessly and for no charge sync your current place, all your bookmarks, and all your notes across all devices.
11:18 - DM: Start reading a book on your iPad, pick up right where you left off on your iPhone.
11:18 - DM: Here's a demo of iBooks on the iPhone.
11:18 - DM: He's showing off Winnie the Pooh.
11:19 - DM: Steve's note: "I love Winnie the Pooh."
11:19 - DM: Here are the PDFs.
11:19 - DM: Thumbing along the bottom over thumbnails. Or flip pages by tapping.
11:20 - DM: Zoom into text, pinch and zoom, just like you'd expect (the controls have more of a translucent look to them than in iBooks).
11:20 - DM: That is iBooks.
11:20 - DM: The iBookstore joins the iTunes Store and the App Store as the third store on the iPhone.
11:20 - DM: Over 150 million accounts with credit cards for these stores, ready to buy your apps.
11:21 - DM: "We believe this is the most of any store on the web. We believe we're now number one."
11:21 - DM: Over 16 billion downloads; number one on the web.
11:21 - DM: Now on to #8!
11:21 - DM: iAd.
11:21 - DM: Why do iAd? "To help our developers earn money so they continue to create free and low-cst apps for users. That's why we're doing this."
11:21 - DM: This is what iAds looks like.
11:22 - DM: They show up where the developer wants them to be.
11:22 - DM: Trying to combine the emotion of video with the interactivity of the Web. This is what advertisers have been after, says Steve.
11:22 - DM: iAds keep you in your app. Don't want to tap on a banner and be hijacked out of app into a browser.
11:22 - DM: Have to find your app again, etc. People don't click on ads.
11:23 - DM: Branding in the corner that says "iAd" so you'll know which ones are which. Built right into iOS4.
11:23 - DM: Can add iAds into your app in an afternoon. Just say where to put them.
11:23 - DM: Apple sells and hosts the ads. "All you have to do is tell us where to put them and make money." Developers get 60% of the revenues, and payment via iTunes Connect.
11:23 - DM: Have been selling iAds for 8 weeks.
11:24 - DM: Here are the brands that are advertising in the second half of this year.
11:25 - DM: Nissan. Citi. Unilever, AT&T, Chanel, GE, Liberty Mutual, State Farm, Geico, Campbell's Soup, Sears, JCPenney, Target, Best Buy, DirecTV, TBS, and Disney.
11:25 - DM: Those are some of the brands that have signed up for the second half of this year. "We couldn't be happier."
11:25 - DM: Steve has pulled one ad; Nissan's electric car. Steve's going to show it to us now, though it's a work in progress. "They were hesitant to show you, but I wanted to show you."
11:26 - DM: Tpa on the ad, it takes over the screen. Hit the 'x' button at the top left to go back to the app instantly.
11:26 - DM: Cute ad.
11:26 - DM: Electric cars will eventually create world peace.
11:27 - DM: "It's amazing how compelling 15 seconds of video can be."
11:27 - DM: Only place you can register to get one of these is on the ads on the iPhone. "So if you wanna get a Leaf you have to get an iPhone."
11:27 - JS: Mentioning all those big-name companies who are going to try out iAds is a signal to everyone else that they need to get on the bandwagon.
11:28 - DM: How far does a car take you on $1.
11:28 - DM: "This is a pretty doggone compelling way to get your point across. And it's fun."
11:28 - DM: You can enter to win a new car on the phone.
11:28 - JS: A NEW CAR!!!! (play the price is right music.)
11:28 - DM: You can even pick the color of your car.
11:28 - DM: Steve has entered a contest to win a car.
11:29 - JS: I hope he loses. He doesn't need another car.
11:29 - DM: So, iAds. Starts on July 1st.
11:29 - DM: All iOS 4 devices. Less than month from now.
11:29 - DM: How successful have they been in selling iAds? "Well we're new, we've never done this before, we don't know what we're doing." Brands have committed over $60 million for second half of year.
11:30 - DM: JP Morgan just revised U.S. mobile display adverstiting in 2010.
11:30 - DM: They think the market for the whole year is $250 million.
11:30 - DM: Steve says just the commitments in the last 8 weeks will be 48% of the entire US mobile advertising market for second half of the year.
11:31 - DM: That was #8!
11:31 - JS: Viewed from one perspective, iAd exists because of the drive toward free and low-cost iPhone apps.
11:31 - DM: "Those are the 8 things I wanted to share with you on iPhone 4. What do you think so far? I think it's a lot more than people thought it was."
11:31 - JS: This way developers can make money on those low-cost apps.
11:31 - DM: "But there is…one more thing."
11:31 - DM: "I think it's best that I just show you."
11:32 - DM: Steve's turning the lights on.
11:32 - DM: He's taking a seat in the chair.
11:32 - DM: In 2007, when they launched the iPhone, he made the first public call to Jony Ive.
11:32 - DM: Now he's going to do the same on this occasion.
11:32 - DM: There's a FaceTime button.
11:32 - DM: Here's the video chat.
11:32 - DM: Trying to connect to Jony Ive.
11:32 - DM: And there he is.
11:33 - DM: Wow, looks pretty good.
11:33 - DM: Echoing.
11:33 - DM: Jony looks a little nervous.
11:33 - DM: "I'm doing okay except for these guys not turning their Wi-Fo off."
11:33 - DM: Jony: "Bit naughty isn't it."
11:33 - JS: Yes, it's a video call. And it's real. Not just sci-fi.
11:34 - DM: Steve says he grew up just dreaming about it and now it's real.
11:34 - DM: "A wonderful optimistic view of the future," says Jony.
11:34 - DM: "The idea of communicating this way is an old idea, but we've had to wait an awfully long time for it to become real."
11:34 - DM: "Let's have lunch later on," says Steve.
11:35 - DM: "We call this FaceTime."
11:35 - JS: Here's Apple in a nutshell. The Sprint EVO Android phone ships with a front-facing camera but I believe there's no software for it yet. Apple doesn't do stuff like that. If there's a front-facing camera, there's software to use it.
11:35 - DM: iPhone 4 to iPhone 4. Anywhere there's Wi-Fi and there's no setup required.
11:35 - DM: You can use the front or rear camera and you can switch back and forth. Portrait or landscape.
11:36 - DM: "Looks and sounds great."
11:36 - DM: Wi-Fi only in 2010, "need to work a little bit with the cellular providers in the future."
11:36 - DM: Apple will ship 10's of millions of FaceTime devices.
11:36 - DM: Here's a little video.
11:38 - JS: FaceTime works by placing a call to a friend and tapping the FaceTime button, even though the video goes over Wi-Fi. End result: No buddy lists or anything. It's built to be a video phone call, period.
11:38 - DM: A nice nod to the hearing-impaired as a couple signs to each other.
11:39 - DM: "This is one of those moments that reminds us why we do what we do."
11:39 - DM: iPhone 4 to iPhone 4; anywhere there's Wi-Fi; zero setup; portrait and landscape; front and rear cameras.
11:39 - DM: Based on H.264, AAC, SIP, STUN, TURN, ICE, RTP, SRTP.
11:39 - DM: Standards bodies and they're going to make FaceTime an open industry standard.
11:40 - DM: "FaceTime. That's…that's #9."
11:40 - JS: Apple is going to try to make it an open standard so that other devicemakers can build it in as well.
11:40 - JS: That's good - the more ineroperability the better.
11:40 - DM: "That is the iPhone 4 and we think it's the biggest leap we've taken since the original iPhone. We're really proud of it. Think there' s more to it than meets the eye."
11:40 - DM: iPhone 4 comes in black and white.
11:40 - JS: Black and white! White front. Much less stealth than the old colored backs.
11:40 - DM: With the normal qualifications, two year contract, $199 16GB, same price as 3GS, $299 for the 32GB.
11:41 - DM: AT&T is going to make "an incredibly generous upgrade offer." If your contract expires any time in 2010, you're immediately eligible for that pricing, for up to 6 months early eligbility.
11:42 - DM: What's the line-up look like? They slide it all over. 8GB 3GS is $99; 16GB IPhone 4 is $199; and 32GB iPhone 4 for $299.
11:42 - DM: Go on sale June 24th.
11:42 - JS: On sale June 24.
11:42 - DM: Pre-orders start on June 15th.
11:42 - DM: On June 24th, shipping in U.S. France Germany, UK and Japan.
11:42 - JS: Great news overseas folks! In five countries, not just the U.S....
11:42 - DM: In July, shipping in 18 more countries.
11:43 - DM: A bunch more countries from Australia to Switzerland.
11:43 - DM: In August, 24 more, and in September 40 more. By end of September, shipping in 88 countries. Fastest rollout ever.
11:43 - JS: You forgot Zealand, New.
11:43 - DM: A few accessories.
11:43 - DM: There's a dock .
11:43 - DM: $29.
11:44 - DM: There's also a case. It's a bumper that just goes around the edge. And it comes in colors.
11:44 - DM: $29 each.
11:44 - DM: iOS 4 upgrades.
11:44 - DM: iOS 4 upgrades for 3GS the 3G* (but not all features; hardware doesn't support multitasking). And the iPod touch (also with caveats). Free upgrade one June 21st.
11:45 - DM: Finally found a way to get the updates for free for iPod touch customers.
11:45 - JS: Remember, Apple used to charge for iPod touch updates. But they've changed the way they account for stuff, so they can do this for free now.
11:45 - DM: Put together a video to summarize all the features, and here it is.
11:46 - JS: You mean I have to wait two and a half weeks to get an iPhone 4? Auggggh! ;-)
11:48 - JS: Optical lamination on the display... looks really snazzy in the demo. Robots applying drops of stuff to the screen.
11:51 - DM: Jony says the glass is 30x harder than plastic and is comparable to sapphire crystal.
11:51 - JS: That glass demo is awesome, too. Well played.
11:51 - DM: "This is going to change everything all over again," says Joz.
11:51 - DM: Slide showing off the intersection of Technology and Liberal Arts that he showed at the iPad event.
11:52 - DM: Apple's not just a technology company. "It's the marriage of that plus the humanities and the liberal arts."
11:52 - DM: Hardware and software together. Not just the great new camera system, but the video-editing software, iMovie for iPhone.
11:53 - DM: Not just the front facing camera and 18 months worth of work to make the software that you'll never notice. "So that all of us don't have to be system integrators."
11:53 - DM: Steve is thanking all the teams that have worked their tails off to create iPhone 4.
11:53 - DM: Mark Papermaster and his team.
11:53 - DM: Jony Ive and the design team.
11:54 - DM: Scott Forstall and the iOS software team.
11:54 - DM: Tim Cook and the operations team.
11:54 - DM: "All of this wouldn't make a difference if we couldn't make a ton of them."
11:54 - DM: "I'm really proud of all you guys," said Steve. "Awesome job."
11:54 - DM: And that's it.
11:55 - DM: That's a wrap! Thanks for joining us everybody. It's been a pleasure as always.
11:55 - DM: We'll see you back here the next time we roll around.
11:55 - JS: Thanks to everyone. And job well done, Mr. Moren.
11:55 - JS: I love it when a liveblog doesn't crash.
11:55 - DM: I love it when a plan comes together.
11:56 - JS: Play us out, Louis Armstrong.....
This story, "Live Update: WWDC Keynote" was originally published by Macworld.