Steve Jobs introduces the iMac - 1998

it's been it's been 10 months since a new management team took over at Apple people have been working really you can see a lot of cars in the parking lot some nights and the weekends and because of their hard work I'm really pleased to report to you today that apples back on track and and because of this with the foundation this gives us we're gonna announce some great new products today and we're even going to roll out the whole product strategy today we do I just want to spend a few minutes and take you through some examples of how Apple is back on track the most important thing of course is people apples got now a very wise board of directors apples got a very strong in your management team I would hold the senior management team at Apple up against any other in the industry but most important apples got some very talented employees just incredibly talented people and when you have great people the most important thing is to not lose them when I came back to last Apple last summer Apple was losing a lot of them the attrition rate annualized was 33% which meant that if Apple kept losing people at that rate in a year a third of them would be gone and I'm very pleased to say the ten months later the attrition rate is 15% and that that is under the Silicon Valley average today and that's a very good sign and part of that is because people now see how applicant win again another part of that is because we've made Apple a much more entrepreneurial place all of the key employees have lots of stock options another another key thing that we've done is distribution we've made a lot of changes in the way Apple distributes its products a lot of tune ups across the distribution system and of course one of the bigger ones was at the national level partnering with compusa they're the biggest and they decided to reinvest an apple and it's worked out great as you know they put an apple store within a store and each of their approximately 170 stores throughout the US when we started this program Apple represented 3 percent of the cpu revenues sold by CompUSA six months later Apple represents fifteen percent of the revenues of CPU so that can't be si another area that we can gauge to see apples health is the Internet Apple comm how many people are interested in Apple now we've got over 20 million active customers they might be interested in coming to our website we have tons of prospective customers who might be interested a lot of suppliers a lot of software developers a lot of competitors and so this taken together can give us a general thermometer of what is the interest level of people about Apple and we've invested a lot into the website and a lot into the award-winning Apple Store which is the gold standard of e-commerce now on the web and a year ago we had a million hits per day now the average visitor clicks about five to ten times so that's one hundred to two hundred thousand visitors per day today nine ten months later we have 10 million hits a day on the website that's one to two million visitors a day coming to the Apple website and they're coming because they're interested in Apple growth the quarter that ended December IBC reported that Apple had a 3.4 percent market share the quarter that ended in March we actually grew our market share 15% to 4% now we're not thrilled with 4 percent market share but if we can grow our market share 15% every quarter we will see it going in the right direction which it is now and I think we expect it to rise quite a bit more base than some of the things are going to see here today but it is now going in the right direction again and financed with some pretty ambitious plans we want to develop a lot of great products we want to market them takes money and our customers need to know that Apple is going to be here 10 years from now well we were able to turn the company around the profitability the first quarter the management team was in place and the quarter ending December Apple turned a profit of 47 million dollars the last quarter we turned a profit of 55 million dollars so the company has made over a hundred million dollars in the last six months in a very turbulent time in the industry when other companies are breaking even or even losing money and I think that's a great accomplishment for the company in addition to that the company is growing cash we increase the cash to 1.6 billion by adding a hundred million dollars in the quarter that ended December and for the last quarter than end of the end of March two hundred million more was put in the bank this is really important and lastly last July if you took the number of shares outstanding and you multiplied it by the stock price the company was worth one point eight billion dollars we've added two billion dollars to the worth of the company since then and I think it's just getting going so these are some indications about how Apple is back on so we went back to business school 101 and we said what do our products what do our customers want in our products what kind of products they want and they wanted two fundamental kinds of products they wanted consumer products and they wanted Pro products are designed in publishing customers primarily one of the Pro products or education customers primarily wanted the consumer products but they also wanted to different kinds of each one desktop and portable and we looked at this and we said now this looks pretty simple but we couldn't find a way to come up with anything else that captured what they wanted as succinctly and as clearly as this we said finally this is it we've got to make for great products and we can meet the needs of what our customers are telling us they want and we've spent the last 10 months working crazy to try to do just that so the first one was the desktop Pro product right the core of our publishing market and of course we introduced that product in November based on the g3 chip it's a power Macintosh g3 and we've had exceptional success with this product we've sold over 500,000 of these in the first six months of the products life making it the most successful new Mac in Apple's history the team did a superb job on this product it's based of course on the PowerPC g3 chip which is a screamer now its competitor of course is the Pentium 2 and what is remarkable what's hard to fathom but true here is that for a given clock rate a PowerPC chip is twice as fast as a Pentium 2 chip in other words a to 66 megahertz g3 is twice as fast as a 266 Pentium 2 or 266 g3 is equal to about a 500 megahertz Pentium 2 of course can't even make one of those but if you could that's what would be equal to a 300 megahertz g3 chip is equal to a 600 megahertz Pentium 2 now how do we know this we know this not only by using the systems but we got the best independent benchmark there is which is bite magazines bite marks and these are sort of one of the gold standards in the industry of performance and they published the results and here's the results the blue bars are the 266 and 300 megahertz Pentium tubes and the bars on fire are the g 3s and they just host them and as a matter of fact Intel we've been running some ads as you know Intel went back to buy magazine said this can't be true and byte magazine examined all of their tests and they stood by their results and republished them now Intel since come out with a 400 megahertz Pentium 2 how does that stack up not much better not much better and so when we run these ads they're very effective in our testing and they're effective because they're true we are extremely happy today to introduce a totally new PowerBook g3 this thing has been redesigned from the processor to the key caps and it is going to set the new gold standard for portables out there it is hot it's also very beautiful this is a side profile here and this is what it looks like from the back the back of this thing even is gorgeous and a one other thing it eats Pentium notebooks for lunch - and it's got options on displays it's got a 12 inch display that's 800 by 600 same as the high-end Apple portables do now but it goes further for the first time in Apple portables it goes beyond 12 inch displays to a 13-inch 102 4 by 768 display and that same resolution in a 14 inch display 12 13 and 14 in addition this thing is incredibly modular it's built with these two bays and so you can put one battery or two batteries and each battery gives you three and a half hours of battery life so you can have up to seven hours of battery life with two batteries you can also put in a floppy disk drive a cd-rom a DVD ROM Drive or a third-party zip drive in there and the bays are all hot swappable the batteries the batteries are designed with a special feature just push a little button it tells you exactly the state of the battery whether it's in or out of the computer and it's got the best keyboard of any portable we know of out there now this thing is powered by a g3 chip so it is a screamer and it comes in 33 - 33 to 50 and 292 megahertz so we're putting our fastest chips into these things which we can do because ours don't draw very much power and you don't have to fry an egg on and so we went out and said okay how does it stack up against the other Pentium notebooks out there we found the fastest Pentium notebook you can get matter of fact they're really hard to get cuz they can hardly make them and we had one flown in special this is the latest greatest one a 266 mega Hertz p2 and these are the bite marks right three-point-nine let me show you the three speed ranges of the new g3 power books so I'd like to invite Phil Schiller our vice president worldwide product marketing on the stage to help me with some demos he'll tell us about your computer here well I'm glad here to come out and try to take you on head-to-head because you asked me to go out and get the biggest and the best and I did this is the brand-new Compaq of Marta 7800 there are thousands of Windows customers waiting in line right now to try to get their hands on this computer luckily we flew someone down to LA and got one before anyone else could leaving plenty of Windows customers of the large because they couldn't get this very machine it's got a Pentium 2 the new mobile Pentium 2 266 that's the fastest speed it runs at it's just been announced just come out it has a 512 backside cache it has advanced graphics port AGP from Intel but very fast 64-bit graphics so this has the fastest processor the fastest notebook graphics and compacts really excited to bring this to the whole windows market you can't get much better than this I'm scared so we're just gonna have to find out now up on this screen on your left we have the compaq armada it's a $5,400 machine as fast as you can possibly get Pentium 2 266 in the middle we have our new PowerBook g3 running at 233 megahertz and on the far right we have the g3 running at 292 mega of course both of these machines are less money than the Compaq so let's go ahead what we're gonna do now is we're gonna run two demos the first is gonna be a demo of Photoshop what a lot of our customers like to do and have been dying to do on a fast portable so we've got Photoshop here and we've got exactly the same file on all of these computers the file has got 40 Photoshop actions in it that happen automatically and it's about 27 megabytes exactly the same file so we're gonna get this queued up on all three machines and we're gonna have a bake off here and Steve this is a great demo because even a lot of the Intel people show off Photoshop to take advantage of the fast MMX processing and opinion too so same demos Intel does we can do cross-platform alright you ready to go sure - one go here we go we're racing through those 40 actions right now compositing cropping throwing on blurs doing the types of actions Photoshop customers do every day what a 292 is really in the lead here let's see done - 92 is done - 33 is getting close done and God feel your your penny in there stick it fastest Pentium notebook in the world ladies and gentlemen and it's it's almost done it's done yeah okay our second demo is we've got a macro media director here and macro media director is used by a ton of our customers for multimedia presentations on the road as well and we've got again a 30 megabyte director file not that big and it is exactly the same file on all the machines so we're simply going to play it on these machines and they're great demos because they exercise the graphics the processor the cache the entire system to really get the most of multimedia performance okay so here we go Macromedia director 30 megabyte file exactly the same file on all three machines ready set go done done thank you well today I'm incredibly pleased to introduce iMac our consumer product and iMac comes from the marriage of the excitement of the internet with the simplicity of Macintosh even though this is a full-blooded Macintosh we are targeting this for the number one use that consumers tell us they want a computer for which is to get on the internet simply and fast and that's what this product is targeted for I also mean some other things to us we are a personal computer company and all this product is born to network it also is a beautiful standalone product we're targeting it also for education they want to buy these and it's perfect for most of the things they do in instruction it's perfect for finding tremendous source of information over the Internet and we hope as you see the product that will inspire us all to make even better products in the future so we think iMac is gonna be a really big deal now what should it be but we went out and we looked at all of the consumer products out there this is a picture of one of the better ones and we noticed some things about them pretty much universally the first is they're really slow they're very slow they're all using last year's processor very very slow second is they've all got pretty crummy displays on them they're generally 13-inch a few 14-inch and the quality of them is very poor Apple designs all its own display so we're used to something much better but these are pretty bad likely known networking on them some have it most don't old generation IO devices and what that means is they're lower performance and they're harder to use and most of them aren't so plug and play and these things are ugly so let me tell you about iMac we decided to make this thing fast so we decided put in a g3 processor running at 233 megahertz we debated this quite a bit because there were cheaper slower things we couldn't used and we said no this has got to be the computer that we want on our desk - a g3 running at 233 and we didn't forget the cache it's got a half a megabyte l2 backside cache and if this thing screams as you'll see in a minute on displays we said what is the largest display that you'd ever want and one of these in a consumer computer and the answer to us was a 15 inch display running at 102 4 by 768 let's go ahead and build in the best in every product and let's have our display engineers engineer it and it's gorgeous it is an apple quality display that we are very proud of let's go ahead and put a lot of memory in this thing 32 megabytes standard it's expandable to 128 4 gigabyte disk drive 24 X cd-rom and let's build in a lot of communications this thing's got a hundred megabit Ethernet as standard now why because a lot of our education customers want to put these high-speed networks in and because we're seeing it in homes approximately ten percent of the homes in Silicon Valley now have classified wiring in them we're starting to see lots of home networks emerging a fast modem and also for megabit infrared built-in you want to beam your digital photographs in from your digital camera built into every product we are going to the new generation of i/o 12 megabit Universal Serial bus 2 ports we're leaving the old Apple i/o behind stereo surround sound built into every product and a great great keyboard and mouse now this is what they look like today and I would like to take the privilege of showing you what they're going to look like from today on this is iMac you go back and do that again come back so if I can get this screen switched over we've got a wireless camera here and I'd like to show you what this thing looks like come on in you've got to see this thing in person but I'll do the best I can with video this is iMac the whole thing is translucent you can see into it it's so cool we've got stereo speakers on the front we've got infrared right up here we've got the cd-rom drive right in the middle we've got dual stereo headphone jacks we got the coolest Mouse on the planet right here come on around all of the connectors are inside one beautiful little door here the Ethernet the USB stuff around the back we've got a really great handle here the back of this thing looks better than the front of the other guys by the way and then we're on the side so let's take one more one more swing around it so you can see this is what it looks like and again you've got to see one of these things in person yeah I've got some slides of what this looks like - I mean this is incredible compared to anything else out there it looks like it's from another planet and a good planet a planet with better designers look at its keyboard it's so nice to Universal Serial bus connectors on either side so you can plug the mouse into whichever one you want with your right or left hand and you have the other one for peripherals look at this mouse it's the most it's the it's the most wonderful Mouse you've ever used tell us about your computer Phil well as Steve mentioned we went out and got the hot new compact Rosario 45 45 40 and it does have an AMD k-6 - 33 megahertz MMX optimized processor for the 256 K pipeline cache on in fact Compaq advertises as a third faster than most of all other 233 megahertz products and of course beaver 233 megahertz product - and we'll see if it is a third faster but this is the best thing you can buy in this class of products and customers are just eating them up well great well III have an iMac and so why don't we put them through their paces so let's take that same director demo again director 6o and let's keep these machines ready to go and we'll see which one's faster and over on the left again we've got the compact with the k-6 233 in it the most popular and fastest consumer computer out there and on the right we have iMac well I'm ready for you all right three two one go this way you uh you want to put it out of its misery you let it go and I got the fastest consumer product you can buy at any price it's the brand new Pentium 2 400 megahertz MMX processor in the Compaq Presario 4880 and over 2500 dollars that's without networking there's no networking that comes with it and that's without the monitor before you add that's when you add those things it's over $3,000 and this thing has a hundred megahertz memory bus a half a mega pipeline cache 2x accelerated graphics port graphics so it doesn't get any bigger badder than this well I have an iMac so we've got the consumer k-6 233 the fastest mean as bad as Pentium 2 you can buy for know megahertz and iMac all right fill three two one go Thank You Phil

Channel: pi1.com

Views: 164,371

Keywords: Steve Jobs (Organization Leader), IMac (Computer), Motivational Speaker (Profession), Marketing (Interest), Management (Field Of Study), pi1

Id: BiWd8ujtK5k

Length: 26min 50sec (1610 seconds)

Published: Mon May 04 2015