Apple – September Event 2016

Good morning. Good day. Good day. Thank you very much for joining us. Welcome to our Town Hall on the Infinite Loop campus. Normally, we don't spend much time looking back, but yes, we are about to celebrate Apple's 40th birthday on April 1st. That video lists some of the incredible products and epic moments in our history and reminds us how many times Apple has changed the world. Recently, we passed a major milestone that no one could have imagined. There are currently more than one billion Apple devices in use around the world. This is an incredible milestone for us and an indicator of the impact Apple has on people around the world.

Our products are a very important part of people's daily lives. And that carries an important responsibility. Before we get started today, I'd like to address something that I know is on many people's minds this morning. We created the iPhone for you, our customers, and we know it's a deeply personal device. For many of us, the iPhone is an extension of ourselves. About a month ago, we asked Americans across the country to join a conversation. We need to decide as a nation how much power the government should have over our data and privacy. I am humbled and deeply grateful for the outpouring of support we have received from Americans from all walks of life across the country.

We didn't expect to be in this position at odds with our own government, but we firmly believe we have a responsibility to help protect your data and privacy. We owe it to our customers and we owe it to our country. This is an issue that affects us all and we will not shirk this responsibility. Thank you. Thank you. Thank you. Thank you. OK. So let's get back to the reason you're here this morning. Because so many people use our products every day, we understand that we have the opportunity and responsibility to make things better. That's why we want to start this morning by talking about two initiatives that we are working hard on to leave the world better than we found it.

We would like to start with the environment and I would like to invite Lisa Jackson to tell you what we are doing to preserve and protect the environment. Lisa. Thank you. Thank you so much. Well, you know, like everything we do at Apple, when we think about the environment, we think about innovation. You see, we want to change the world for the better and we believe there is no greater challenge in the world than our changing climate. Now, the solution is energy efficiency and renewable energy, and the time to act is now. Two years ago we told you about our ambitious goal, one we hope others will adopt.

We told them that our goal was to be 100% renewable in 100% of our operations worldwide. That's all of our offices, all of our retail stores, and every one of our data centers. So, two years later, how are we doing? Well, currently, 93% of our facilities around the world run on renewable energy. And just last year, we reached our goal of using 100% renewable energy to power our operations in the United States, as well as our offices and stores in China. In fact, we are now 100% renewable in 23 countries around the world. Now, in some places we can buy renewable energy directly from the grid, from existing sources, but that's not always possible, which has led to some pretty innovative solutions.

In Sichuan province, China, we found a way to build a 40-megawatt solar farm without disturbing the local population. Yes. The innovation is to build a system that allows the generation of electricity and the production of hay for local yak farmers. That solar project is producing more than enough electricity to power our 34 retail stores and our 19 offices nationwide. This makes our facilities there carbon neutral. In Singapore, where there is not enough space to place solar panels on the ground, we look up. Solar panels on more than 800 roofs will cover the electricity use of our offices and our future stores.

We are really proud to be 100% renewable in Singapore. We are also very proud of the fact that 100% of our data centers are powered by clean energy sources such as the sun, wind and water. Now, think for a second about what that means. It means that every time you send an iMessage, make a FaceTime video call, or ask Siri a question, you can feel really good about reducing your impact on the environment. Now, let's talk about another way we are reducing our impact on the environment and that is by protecting the forests that produce the paper we use especially for our packaging.

You see, we believe that paper, like energy, can be a renewable resource. That's why we're proud to announce that today 99% of our packaging comes from recycled paper or sustainably managed forests. This is especially important as we continue our move toward all paper packaging, but we won't stop there. Through our partnership with The Conversation Fund, we have permanently preserved more than 36,000 acres of working forests in Maine, North Carolina, and are partnering with World Wildlife Fund to improve management of up to 1 million acres in China. You see, our goal is to increase the global supply of responsibly sourced paper rather than take away from it.

Now, while we focus on conservation, let me tell you about another way we are working to preserve our planet's resources, and that is through reuse and recycling. You see, we work very hard to make sure our products don't end up in places like this, and we think the best way to do that is to reuse them. That's why we design our products to last, and we're happy to say that thanks to their durability, the vast majority of iPhones we receive end up being reused, including phones we recover from our iPhone upgrade and trade-in programs. . But at some point, even our products will need to be recycled.

Many current recycling systems waste much of the materials they collect, so they cannot be reused. We think it's time to take a new approach. We spend an incredible amount of energy designing the best products in the world, and we spend that same kind of energy thinking about what will happen when they are no longer usable. Let me introduce you to a pretty interesting R&D project, we call it Liam. The iPhone is the result of years of innovation, but true innovation means considering what happens to a product at each stage of its life cycle. Meet Liam.

When the time comes, Liam deconstructs your iPhone. Parts are detected, removed and separated, so that the materials within those parts can be reused. To rescue the cobalt and lithium from the battery, separate the gold and copper from the chamber, remove the silver and platinum from the main logic board, so that your iPhone materials can survive. Because in a world with limited resources, some things cannot be replaced. He's cool, right? There is no other machine in the world that can do what Liam can do, and it was conceived and designed by Apple engineers here in California. What we have learned from this project will help us make even greater progress in the area of ​​reuse and recycling as we move forward.

As you saw in the video, Liam separates the iPhone into its components. This allows us to recover the materials, high-quality materials, and reintroduce them into the global supply, and that saves natural resources. So the tungsten from the iPhone's alert module can be used to make a precision cutting tool, and the silver from the motherboard can be used to make a solar panel. Now, ultimately, our goal is to create advancements that allow us to use those high-quality materials in our own products because reuse and recycling are so important, and that's where you can step in. With Apple Renew, you can easily and quickly recycle your devices in a way that's safe for your data and the planet.

All you have to do is bring them to an Apple retail store or send them to us for free by visiting

apple

.com/recycling to print a prepaid shipping label. We're making great strides in our environmental efforts, but we have much more to do and we promise to keep you informed along the way. Now back to Tim. Thank you. Thanks, Lisa. Powering Apple with 100% renewable energy is an incredible, ambitious and audacious goal, but we are determined to achieve it and hope others will join us. The second initiative we would like to talk about this morning is health.

With the launch of ResearchKit last year, we saw that Apple technology can have a positive impact on people's health. And to tell us about some progress in this area, I would like to invite Jeff Williams. Jeff. Last year we introduced ResearchKit and our goal was to use technology to solve some of the biggest problems facing medical research. We wanted to make it easier for people to participate in and conduct research studies. And we wanted to make it easier to collect accurate and frequent data from the devices we all already carry in our hands. So what happened?

Virtually overnight, the research studies we launched became some of the largest in history, with tens of thousands of people signing up. Like this Parkinson's study that became the largest Parkinson's study in history in less than 24 hours. The studies broke geographical boundaries. Traditionally, studies focus on the research institution, but with ResearchKit anyone, anywhere can participate. Mount Sinai's Asthma app discovered asthma triggers in all 50 states. But most importantly, researchers are gaining insights that were not possible before. Take diabetes as an example. You and I know diabetes as type 1 and type 2, but the Mass General study on type 2 diabetes found that some people respond completely differently to therapies than others, supporting the theory that there are actually subtypes. of type 2 diabetes, helping pave the way for precision. medicine for the future.

Some of the world's most respected institutions have published ResearchKit studies covering a wide range of diseases and conditions affecting billions of people around the world. ResearchKit is opening up all kinds of possibilities and I would like you to show a video to tell you more about it. ResearchKit was created with the goal of improving medical research. A year later, we see app developers, doctors, and even patients taking these ideas and making them more powerful than we ever dreamed. We can detect autism as early as 18 months, but the average age a child is diagnosed with autism in the US is five years old, so we need a radical new solution.

If autism is diagnosed early, it can have important benefits for the child. Autism and Beyond's goal is to help engage parents in a ResearchKit study, but more importantly to

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ually develop a tool they can use at home with their children to screen for autism. We show videos to the child and use the front camera to record the child's reaction to these videos, and then we have algorithms that can then tell us about the child's emotions and other behaviors. Therefore, we have the opportunity to understand child development in a completely new way. When there are large numbers of people participating in research, their knowledge about the condition increases exponentially.

With ResearchKit, we receive daily evaluations on people's performance. Parkinson's, it's a disease that slows you down and exercise will make you feel better, that's what I've learned. What I'm trying to do lately is use the app before exercising and then see how exercise could pr

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its progression because it's not curable at this time. Now, with the mPower app, we get information that can be used to personalize the care patients receive. If we could bring research and care together and really close that gap, we can help people live healthier, happier lives. I had my first epileptic seizure when I was three and a half years old.

I always have that fear first and foremost in the back of my mind. Am I going to have a seizure while driving? What if I'm at work or alone? How am I going to handle that situation? The EpiWatch app is the first research app to use the Apple Watch. So those sensors can be used to collect physiological data during seizures and we are using that data to try to develop a seizure detector. The research they're doing is exciting because they're trying to find a predictor. Having that would be amazing because I would know this is going to happen.

You have plenty of time to get to a safe place. It's like, okay, I got it. It's no longer just aboutresearch. People are using apps to learn about themselves in ways they couldn't before, to create a better life in terms of their own health. ResearchKit has clearly transformed research. More importantly, it laid the foundation for transforming care. The really amazing thing about an iPhone is that you have it in your pocket. You don't need any special equipment. Here is the phone. We can do this science. We can make this medicine with a phone. You know, when we introduced ResearchKit, our goal was simply to improve medical research and we thought our job was largely done.

But what you probably saw in the movie and what became clear to us later is that the same tools we use to advance medical research can also be used to help people with their care. Let me give you an example. In the Parkinson's study, patients take a test multiple times with their iPhone, like that simple touch test you saw in the video, to assess their symptom levels. And researchers can see the level of symptoms over several days. And you can see this before and after the medication. And there were many patients like Patient A where you can see the symptom levels improve after medication.

In other words, the medication is working. But there were also many patients like patient B in whom after medication, there is no improvement at all. Their symptom levels did not change. In other words, the medicine doesn't work. The patient needs a different dose or a different medication or perhaps no medication at all, but today neither the individual nor the caregiver has this information, and we believe that empowering people with data about their health is incredibly important. That's why today we launched CareKit. CareKit is a framework for creating apps that allow people to play a more active role in their care, and the first CareKit app launching today is for Parkinson's.

And it brings to light some of that valuable information that we discussed, so that people can begin to better understand what affects their health. And these six leading institutions will begin using this app with their Parkinson's patients immediately, so they can have a more informed discussion about individualized treatments. Let me give you another example. Surgery. One of the things doctors tell us is that one of the most important things that affects the outcome of surgery is what is done during the recovery process. However, we went from being supervised by a team of highly trained specialists using cutting-edge technology to being discharged with this, a single sheet of paper.

In reality, this is what happens in practically the entire country. This is your list of things to do, things not to do, and what days you are supposed to do them. And compliance with this is notoriously very poor. So using CareKit modules, we worked with Texas Medical Center and they created a phone app that helped you get through this critical process in a completely different way. It has a care card which is your list of things to do every day in checklist form and as you complete them your little heart fills up, it's really cute. It has a symptom and measurement tracker where you can record information about your progress.

That is, you can record things like your temperature to monitor an infection or you can use the iPhone's accelerometer to study range of motion. And then you can share this information with your loved ones who can help you during this recovery process. Best of all, you can share this information with your doctor, who will take the results of your progress and dynamically update your care plan so it changes on the fly—something that simply isn't possible with a piece of paper. These are just two examples of CareKit applications. Others are coming and we believe the possibilities here are limitless.

Now, a word about privacy, nothing is more sensitive than your health data. You decide which apps you use and who you share this information with. CareKit, like ResearchKit, will be open source and available in April. We've been absolutely humbled and inspired by the response to ResearchKit and can't wait to see what great apps are built with CareKit. Thank you. Let's go back to Tim. Thank you. It's amazing that in such a short time ResearchKit has had a profound impact on the broad area of ​​medical research, and our hope is that CareKit can have the same kind of impact in helping people manage their care.

You have already seen the latest important work we have in the environment and in the health area. Now I would like to talk about products and I will start with the Apple Watch. Since we launched it less than a year ago, the Apple Watch has become the best-selling smartwatch in the world. But the most important thing for us is that customers love it. They discovered that it is not only useful but has become an essential part of their daily life. They love being able to receive and respond to messages right from their wrist, as well as track their activity, manage their calendar, navigate with maps, and get up-to-the-minute information on sports scores, news headlines, and more.

People also love changing straps and how it gives the watch a completely new look, appropriate for any purpose, occasion or season. About a third of Apple Watch users regularly change bands. Today we're introducing some brand new colors and a new band made from a completely different material. Our new woven nylon band. Thank you. Our new woven nylon band features a unique four-ply construction. Comes in a variety of vibrant colors. We think it's going to be incredibly popular. Plus, there are new sport and leather straps in all-new colors, and there's a stunning Milanese strap in space black that is absolutely gorgeous.

We are very excited about this new spring line and want even more people to be able to enjoy the Apple Watch and what it can do for them. So starting today, Apple Watch will start at just 299. That's our update on Apple Watch. Now I'd like to talk about Apple TV, which brings all the new capabilities to the biggest screen in your home. People love the new Apple TV with App Store and the innovative Siri Remote. After the introduction of the new Apple TV last quarter, we had our highest Apple TV sales ever. Now, apps are the future of television and this transition is underway.

In just a short period of time since Apple TV launched, we have 5,000 apps in the App Store. There are amazing content apps to enjoy all over the world. Like this one from HBO, HBO Now, where you can watch the latest HBO shows whenever you want and wherever you want. Shows like "Game of Thrones" and "Veep" and, of course, "Silicon Valley." And NCAA March Madness Live just in time, where you can watch two live tournament games simultaneously – this is exclusive to Apple TV – and you can also monitor the scores of the other games and quickly switch between the action.

And of course, there are plenty of games to choose from like this one from AG Drive. Now, in addition to great video content and great games, there are a wide variety of other apps in the App Store. Like Solar Walk 2, which turns your living room into a planetarium, and BrainPOP, which is a great educational app for kids, and GrubHub, where you can order your favorite food and have it delivered right to your home. This is very key for me. And Cody, you can choose from the best workouts on the internet, there are some great ones. This is just a small sample of what's available on Apple TV and there's much more to come.

Now, of course, tvOS powers the Apple TV. And at the heart of the Apple TV experience is Siri. With Siri, you can ask for something cool to watch. Like showing me movies with Kevin Hart. And there it is. Choose your favorite. When you search for a movie or TV show, Siri searches for popular apps so you don't have to. We've added a great content app for Siri to search, we have more to come and will continue to add more over time. Now, we have some other great features coming to Apple TV, like folders. Now you can organize your apps on your home screen however you want.

And dictation. You can now use your voice to enter text on the screen. This includes usernames and passwords. You're really going to love it. Plus Siri for the App Store. So you can request any app you want or any type of app you want. And now you can access your entire iCloud Photo Library, including Live Photos, right on your big screen. All this is available. It's a free update that starts today. That's Apple TV. Now I would like to talk about the iPhone. The iPhone is the most loved smartphone in the world. And today we welcome a new member to the iPhone family.

And to tell you everything, I would like to invite Greg Joswiak. Greg? Thanks, Tim. Our customers love the new iPhone 6s and 6s Plus, and while the vast majority of our customers prefer this larger-screen iPhone, today we're here to talk about a smaller iPhone. Our four-inch iPhones are actually an important part of our lineup. Last year alone we sold over 30 million four-inch iPhones, that's a lot of phones, put it in perspective, it took us about two and a half years to sell that many iPhones when we started our entire lineup. So why do people buy four-inch iPhones?

Well, there are two reasons. First of all, some people just love smaller phones. They want the most compact iPhone design. Second, we found that for many of these customers, it's their first iPhone. Whether they're switching from Android or their first smartphone, it's their first time experiencing iOS and our hardware and software integration and incredible ecosystem. And in some countries like China, most of these customers have their first iPhone. So some people asked us, some even begged us, to please keep the four-inch products in our line. Well, today we will do just that and we will do it much better.

And as you may have heard, we call it iPhone SE. So let me show you. So we started with this beloved aluminum design, but we've made some beautiful upgrades, including this gorgeous rose gold finish. We've added matte beveled edges and a stainless steel Apple logo insert like on the iPhone 6s, but it's on the inside where the iPhone SE really shines. It has advanced technologies that make it the most powerful four-inch phone ever created. It's incredibly powerful, making it even better at doing the things iPhone customers want to do, including playing the most graphics-intensive games. So at the heart of the iPhone SE, of course, are our chips, our incredible Apple A9 chip with its integrated M9 motion coprocessor.

This means that the iPhone SE has the same processing performance as the iPhone 6s, which is literally twice the speed of the iPhone 5s. And the iPhone SE also has the same incredible graphics performance as the iPhone 6s, which is three times faster than the iPhone 5s. And the built-in M9 motion coprocessor is always on, so it enables all kinds of functions, like tracking your fitness throughout the day, but lets you use "hey Siri." So, with your hands free, you can simply say things like this: "Hey, Siri. What do you think about recycling?" I love the Apple Renew program but Liam really tears me up.

That's for Lisa. So while it has all these new capabilities and is much more powerful than the iPhone 5s, the iPhone SE offers incredible battery improvements across the board. And of course, people love taking photos with their iPhones more than any other phone or camera. That's why we wanted to give it our most advanced camera system. That's why we've given you our incredible 12-megapixel iSight camera with Focus Pixels and True Tone flash. And of course we have the A9's image signal processor which enables all sorts of great features such as panoramic images up to 63 megapixels, but also improvements to video, slow motion, time lapse and of course your photos, which means you can amazing images like this and this.

I don't know what you're thinking, but that's not Phil Schiller skateboarding to work. Although he looks like him. And yes, the iPhone SE can capture live photos. So you can take your photographs and make them come to life. And we had given our FaceTime HD front camera Retina Flash. What that means is that if you want to take a selfie in low light, we can make the screen three times brighter than normal to turn on the True Tone flash, so you get an image like this instead of the dark selfie. It can even capture 4K video, and like the iPhone 6s, you can edit up to two simultaneous streams of 4K video with iMovie right on the iPhone SE.

We have also provided you with excellent capabilitieswireless. We now have LTE speeds that are 50% faster than the iPhone 5s and we've added more LTE bands so you have better global roaming and, of course, high-fidelity call quality with voice over LTE. And we have also given you 802.11ac high-speed WiFi, which is three times faster than iPhone 5s and also supports high-quality WiFi calling. You now have Touch ID to keep your iPhone's contents secure but also quickly available with just a touch of your finger. And now, you can make easy, secure, and private payments with built-in Apple Pay.

So to do that, we added an NFC radio and a secure element inside the iPhone SE. And we launched Apple Pay in these countries and more recently rolled it out in China, where the response was absolutely fantastic. We added over three million cards in the first 72 hours alone, absolutely fantastic. And of course, the iPhone SE meets our really high environmental standards. Of course, it's highly recyclable aluminum and glass, but it also has other recyclable components and materials that both Lisa and Liam love. And it's also free of that naughty list of environmentally harmful materials. As you can see, we've packed an incredible array of advanced technologies into the iPhone SE into its truly compact design, making it the most powerful four-inch phone ever created.

It really is an amazing device. So the iPhone SE, how much does it cost? Well, let's start the iPhone SE price at just $399. Making it our most affordable price we've ever introduced a new iPhone at. And we have a higher capacity model, 64 gigabytes for only 499. And if you have a two-year subsidized service contract, you get the iPhone SE for free. But of course, we know that installment plans have become incredibly popular: the iPhone SE now starts at just $17 per month with no service contract. So the iPhone SE joins our incredible lineup of iPhones with the iPhone 6, 6 Plus, 6s, and 6s Plus.

It's the strongest iPhone lineup we've ever had. We can start, we will start taking orders for the iPhone SE this Thursday, March 24 and it would be available next week, that is, March 31. We will ship to these countries first, but many more will follow soon. We will be in more than 100 countries by the end of May. So that's the iPhone SE. So whether this is your first iPhone or you just like smaller phones, we think you'll love it. But I have more. Of course, iOS is fundamentally important to the iPhone experience. And iOS is the most advanced mobile operating system in the world.

And of course, our latest version, iOS 9, which launched last fall with incredible features and improvements to the core of iOS. And today iOS 9 runs on 80% of our active iOS devices. That compares incredibly and favorably to the latest version of Android also released last fall, which runs on 2% of its active devices. And for the last few months, we've been publicly testing and previewing iOS 9.3, which is one of the biggest releases we've ever made. And it adds some new innovations as well as improvements to the wide range of applications, so I would like to share some of the highlights with you.

Let's start with the night shift. That's why studies have shown that exposure to blue light at night can make it more difficult to fall asleep at night. Therefore, Night Shift automatically changes screen colors to the warmer end of the spectrum, which can help you sleep better at night. So how does that work? Well, when Night Shift is enabled it uses your iOS device's clock as well as its geolocation to know when it's getting dark at your location. And then it automatically changes the color of that screen to the warmer end of the spectrum, which reduces blue light and can help you sleep better.

It's a really cool feature, which is why I'm still wide awake and alert. Grades. Let's talk about Notes. Notes is actually one of the most used applications on the platform. It's used by literally hundreds and millions of people every day, and customers love the newly redesigned Notes app in iOS 9. Well, today we're adding the ability to further protect your most personal notes with a passcode or fingerprint. Health. The health app offers users a quick and easy dashboard with their health and fitness data and there are already over 2500 apps that provide data to the health app and we want to make it easier for customers to find the right apps for your health and fitness needs. .

That's why we've added great app suggestions right into the Health app so you can easily add data to your dashboard. News. We introduced Apple News with iOS 9 and it has become the news source for more than 50 million active users. And in iOS 9, we want to make it even faster and more personalized. That's why we're adding top stories to make it easier to follow your news on your iPhone or iPad, and for you, we're now suggesting trending topics as well as editor's picks. Carplay. CarPlay is the safest and smartest way to use your iPhone in your car, and all major car brands have committed to integrating CarPlay into their cars and more than 100 car models have already been announced with CarPlay support and counting. coming more.

So you can expect to see this in more and more places. And with iOS 9.3, it would add even more useful features to CarPlay. For example, your experience with Apple Music gets better and better for you, offering expertly curated songs, artists, albums, as well as selections based on your own preferences, and maps get even better. With the nearby feature that allows you to find gas, parking, restaurants and more with the touch of your finger. Education. iPad, with its powerful features and apps, opens up new and more engaging ways of learning, and with iOS 9.3, using iPads in the classroom is even easier and more powerful with a preview of a new set of software and capabilities designed specifically for students. teachers and administrators.

These are just some of the highlights of iOS 9.3. We think it turned out really great and will make the best mobile experience even better. And it's available as a free update for all of you today. That's iOS 9.3 and iPhone SE. Thank you so much. Thank you. It's a big update for iOS. I don't know about you, but I really want to sleep better and I'm incredibly excited about the iPhone SE. Many, many customers have requested this and I think they will really love it. Next is the iPad. We believe the iPad is the perfect expression of the future of personal computing.

We took a giant step in this direction last fall with the introduction of the 12.9-inch iPad Pro, and since then, many people tell us that the iPad Pro has become their primary computing device. We have some exciting news for you today. And to tell you everything, I would like to invite Phil Schiller. Phil? Thank you. Hello, everyone. I couldn't be more excited to tell you all about the iPad. Customers have really fallen in love with the new iPad Pro in the six months it has been on the market. They are in love with the huge 12.9-inch retina display, all its performance, all the capabilities, the speaker system and the Apple Pencil.

That is a truly revolutionary advance. We're hearing a lot from customers around the world, customers like John Lasseter, creative director of Pixar and Disney Animation Studios. John had this to say: "The iPad Pro and Apple Pencil are the closest we've gotten in the digital world to drawing on paper." Or Stephen Gates, head of design at Citi. "At Citi, iPad Pro is truly transforming the way we work. Our design team has incorporated iPad Pro into their daily workflow, allowing them to create, collaborate and share ideas in new ways." And Alex Valdman, Head of Design at Rapha. "The iPad Pro goes with me everywhere.

In everything I do, including designing the latest cycling collection, it has not only replaced my laptop, but also my paper notebook." People love the iPad Pro. It's a revolutionary device. And that's why today we're so excited to introduce you, for the first time, to the second member of the iPad Pro family. An all-new iPad Pro based on a 9.7-inch retina display. And it weighs less than a pound. It is an iPad Pro through and through. But why create a second iPad Pro that is smaller? Well, there are two really good reasons. First, we start the iPad with a 9.7-inch screen for a very good reason: It's a screen big enough to do all your work, but small and light enough to take with you everywhere.

People have loved the size. And from the beginning, it has remained our most popular iPad size. In fact, I'm very happy to tell you that to date we have sold over 200 million iPads with a 9.7-inch screen. So for all these customers, when you know the features of the iPad Pro, you will see that it is your ultimate upgrade. There's a second group of people you'd love to reach with this new iPad Pro: Windows users. You may not know it. But most people who come to an iPad Pro come from a Windows PC, desktop, or laptop. Now, of course, we all know that Windows PCs were originally conceived before the Internet existed, before social media existed, before app stores existed.

And this is an amazing statistic. More than 600 million PCs that are more than five years old are currently in use. This is really sad. Really is. These people, yes, could really benefit from an iPad Pro. And when they see the features, performance and capabilities of a product like the iPad Pro designed for a modern, digital lifestyle, many of them will find that it is the best replacement for your PC. Best of all, you can get access to all those amazing apps in the App Store. And we're very happy to tell you that there are now over a million apps in the App Store designed for iPad.

And they work wonderfully on iPad Pro. Let me tell you a lot more about this new iPad Pro. First, it has a professional display. It starts with the same materials used in a 12.9-inch iPad Pro, a rust-proof TFT display driven by a custom Apple sync controller. The custom driver has a variable refresh rate. Therefore, it works very fast but saves energy. We use our photo alignment technology to align the individual lenses for incredible contrast ratios and sharp text. But there is much more to this exhibition. It's 40% less reflective than an iPad Air 2. At just 1.8% reflectivity, it's the lowest reflectivity of any tablet.

And if you're a working professional, you'll really appreciate that low reflectivity. And it's brighter too, 25% brighter than an iPad Air 2. It emits 500 nits of light. This makes it the brightest tablet available. And there is a very wide range of colors. It uses the digital cinema specification, DCI P3, which gives it 25% greater color saturation than the iPad Air 2. In many ways, this is the best display we've ever built for an iPad. In addition, it supports two truly innovative functions. José told you about the first one. Works with Night Shift. So, as the sun sets, the brightness dims a bit and the wavelengths of blue light become shorter.

And some people find it easier to fall asleep. But the second feature is a breakthrough that has never appeared on any device before. It's incredibly innovative. We call this True Tone display. A True Tone display measures the color temperature of ambient light and adjusts the display to match. I heard an oh over there. Someone already understands this. This is great. It has two new four-channel ambient light sensors that measure both brightness and color temperature. So how does that work? Let's start with a sheet of paper. A piece of paper reflects light. So when you use it in different environments, it reflects the color temperature of the light in that environment.

Our optic nerves were designed to make us comfortable with this experience. Step into the warm incandescent light of your home and the paper takes on a warm tone. But now you use a digital device. Digital devices emit light. And that light has the same color temperature no matter where you are. So the color tone is not correct. It doesn't match white paper. Well, except now, if it's a True Tone display, yes it is. No matter where you use it, it automatically detects the color temperature of the light and becomes warmer or cooler and matches the white of the paper and is really natural to use.

Once you use a display with this True Tone technology, you'll never want to go back to old technology again. It's quite an advance. Next, it has a professional audio system. There are four speakers that work the stereo system to automatically adjust thefrequencies between high and low depending on how you hold it. It also increases twice the audio volume of an iPad Air 2. But best of all, it has an incredible level of performance unlike any other mobile device. It has our fastest chip to date, an A9X. It is a third-generation 64-bit chip with more than 3 billion transistors.

It is made with a 3D FinFET architecture. If you don't know what that is, it's incredibly trendy and people are noticing. TechRadar wrote: "The iPad Pro packs hardware powerful enough to be a genuine laptop replacement, with more than enough power in terms of processor and graphics performance." And it has a lot of grunt. Twelve graphics cores delivering more than half a teraflop of graphics power. That's more than an Xbox 360 and a device you have in the palm of your hands. It's amazing to play. It's also amazing for professional apps, modeling, rendering, it just flies on the new iPad Pro.

And it's absolutely sufficient performance for its great iOS 9 features, from multitasking where you can have apps side by side and video streaming and image in image. It's an incredibly powerful chip. Also, as Jos told you, it includes our integrated M9 motion coprocessor. With that, applications using our built-in sensors are instantly calibrated and up and running quickly. It also supports "hello Siri." I said it that way because I know it also activates people's phones when I do it. This means you can talk to your iPad and ask it to open your mail and check for new messages.

You can talk to your iPad and ask it to go to the website or search for a contact and it can do it all automatically for you. And iPad Pro supports an excellent line of professional accessories. There's a smart keyboard designed specifically for the size of that 9.7-inch retina display. When you turn on your iPad, it automatically starts working and the software adjusts. For example, my favorite feature, Command Tabs, I can switch between my multitasking apps like on my desktop Mac. And it's compatible with the best accessory Apple has ever made, the Pencil. This is an amazing device.

It's a great development and people are really falling in love with it. Christopher Phin of Creative Bloq wrote: "Let me be completely clear: this is the best digital drawing tool ever." We could not agree more. It is an incredibly precise drawing tool. Feel pressure. There is also a tilt angle for incredible drawing. And you can draw it just like you do on paper by placing your hands on the iPad thanks to its built-in palm rejection software. And it recognizes both the pencil and the fingertips. Then you could use both simultaneously to advance the techniques of your drawings, your illustrations.

People love to draw and make illustrations. They also like to take notes about it. It is an amazing device. There are also other professional accessories. A great new line of Lightning adapters, for example, a new illuminated SD card reader that is incredibly fast and this is a really powerful accessory, a USB card reader. Sure, it allows you to plug in your camera, something many of us do, but because it's powered, you can use many powered USB devices. For example, you can connect an Ethernet adapter to connect to your corporate network. And for those of you who are podcasters, you probably plug in a microphone and do your podcast right from an iPad Pro.

Customers also love taking photos with their iPads. Certainly photography for personal use, but more importantly they can also use the camera for work. You can use the camera in augmented reality applications. You can use it to scan documents. You can use it to see constellations in the night sky. There are so many great uses for that camera. And in the new iPad Pro, we've included our most advanced camera yet. It's a 12-megapixel iSight camera with Focus Pixels, True Tone flash, and that amazing built-in image signal processor. The A9X lets you take photos quickly with stunning colors and low noise, huge panoramas, and beautiful live photos.

And you can record 4K videos with it. So right on your iPad Pro, you record 4K video and can edit multiple streams right there on the device. There is a 5-megapixel Facetime HD camera that is wonderful for video conferencing. And again, all retina displays flash so you can take great selfies with yourself and your friends too. There are so many new features and innovations included in this iPad Pro. Hopefully you'll see what we do. This is the best update ever for all iPad owners. And it is the ultimate replacement for all those old PCs in the world.

Like everything we do, the team works hard to make it an environmentally friendly display, mercury-free, LED backlit, arsenic-free glass, BFR-free, beryllium-free, PVC-free, and highly recyclable glass and aluminum. The iPad Pro comes in four metallic finishes: silver, gold, space gray and, for the first time, also rose gold. And there are great cases and covers you can add. They come in a variety of beautiful colors. So this is the iPad Pro. With the 9.7-inch retina display, how much will it cost? Well, we're very excited to offer a 32-gigabyte iPad Pro for just $599. That's $200 less than the 12.9-inch. And I hope we can reach many more customers with it.

For 128 gigabytes for 749 and for the first time on an iOS device, there is now a configuration with 256 gigabytes of storage. Orders start this Thursday, March 24th and they also start shipping next week on the 31st. We are very excited about this iPad Pro. The team has worked very hard on it. We really love it and have created a short video to tell you a little more about it. Our view of personal computing has always been that the most powerful technology should offer incredible capability without the complexity. With the technologies built into the new iPad Pro and the remarkable apps that leverage them, it offers an exceptionally intuitive and immersive way to do everything you do. iPad Pro changes the way people discover, capture, edit, design and produce.

At the heart of this versatility is its performance. The A9X chip was designed specifically for iPad Pro to deliver more power than most PCs in a thin, light and intuitive device that you can take with you anywhere. The iPad's immersive experience begins with its retina display. Each one is individually calibrated, so you'll always see vibrant colors, contrast and clarity. The new 9.7-inch iPad Pro's display features a wider color gamut for even more stunning images. It's also the first iPad with a True Tone display, which responds and adapts to the light around you. Four-channel ambient life sensors measure the intensity and color temperature of your surroundings and then adjust the display to match.

Thus, what you see on the screen has a more natural appearance and is more pleasing to the eye. To complement its vivid display, the iPad Pro's four-speaker audio system produces high-fidelity sound that automatically optimizes tab volume for any way you use it. Apple Pencil offers a natural, familiar and fluid experience with the added versatility of a digital tool. Its advanced sensors detect pressure and tilt while the touch system recognizes your hand, your fingers and the Apple Pencil individually. So when you rest your hand on the screen, it ignores the information generated by your palm and forearm, allowing you to work as freely as you would on a sheet of paper.

The smart keyboard was designed to add even more flexibility. Works perfectly with iOS 9 to add unique on-screen commands and shortcuts. The iPad Pro screen is the ultimate viewfinder for capturing photos and videos. And the 9.7-inch iPad Pro features the 12-megapixel iSight camera, making it a powerful device for recording and editing, even 4K videos, wherever you are. The new iPad Pro gives everyone the power to do amazing things. Things I thought I could only do on a PC and things I'd never done before. This is where we believe personal computing is headed. So these are all iPad Pros now in two sizes starting at just 599, the 9.7 and the 12.9, and they now have that new 256 gigabyte configuration as well, so our taller end customers are going to love it.

This is by far the best line of iPads we've ever owned. It starts with just a $269 iPad Mini. The iPad Air 2, which used to be our highest-end 9.7-inch iPad, is now $100 off, down to just $399. So a lot of customers are going to like it . And iPad Pros start at just 599. That's our iPad news, back to you, Tim. Thanks, Phil. We think that whether you already have an iPad or it's time to replace that laptop, the iPad Pro is a great choice. It allows you to do much more. You've seen some amazing products this morning and some great things on two initiatives that are very important to us.

Like our work to curb climate change by powering Apple with 100% renewable energy and CareKit transforming the way people manage their health. Cool new bands for Apply Watch now starting at just 299. A great update for Apple TV with folders and expanded use of Siri and dictation. The iPhone SE, the most powerful four-inch phone ever created. And the iPad Pro, so powerful and capable, is truly the future of personal computing. We are always advancing innovation and doing things that positively affect many people. It's something Apple has been doing for more than 40 years. This is probably the last product presentation at City Hall where you are today.

We've had a lot of big announcements here. It is a very special place with many memories. The iPod was announced in this room and so was the App Store. We have many good memories here. Next year, in 2017, we hope to move to our new campus and our new theater there. And we hope to have many, many opportunities to invite you all to join us there. We can't wait to move in and can't wait to see what's in store for the next 40 years and share it with you. I would like to thank everyone for coming. A special thank you to everyone at Apple who made today possible.

Members of the press. We have a handy area across the hall at the piano bar. So, get these great products. Thank you so much.