There have only been two milestone products in our industry: the Apple II in 1977 and the IBM PC in 1981. Today, one year after Lisa, we are introducing the third industry milestone product: Macintosh. Many of us have been working on Macintosh for over two years now. And it has turned out insanely great. We are introducing Macintosh at a mainstream price point of $2,495. And you can go see a Macintosh in any one of our fifteen hundred dealers in America today. I want to briefly cover some of the innovations in Macintosh. The first one is, we've pulled Lisa technology down to a mainstream price point, with its radical ease-of-use, mouse, windows, icons, pull-down menus, point, click, cut and paste. We've managed to find a way to pull that down to a $2,495 price point. Macintosh, to accomplish this, uses a 68000 microprocessor, the same 32 bit microprocessor used in Lisa. It's necessary for Lisa technology, and it eats 8088s for breakfast. Macintosh comes with 192k bytes of memory. Sixty-four k bytes of ROM contains the entire operating system, the whole graphics foundation, and the entire user interface--all contained in ROM. There's 128k bytes of RAM. Just as the 5 ¼-inch floppy disk drive was an innovation in the 70s, the 3.5-inch disk drive will be the disk of the 80s. It is far safer, and we're storing over 400k bytes of information on one side of a disk that can be put in your pocket. Macintosh comes with two built-in serial ports, the RS232, the RS422 and an incredible thing called Apple Bus Interconnect. Macintosh has four-voice sound and speech built in. And it communicates with you on a high-definition, super crisp, bitmap 9-inch, black-and-white screen, which has over twice the number of dots on its screen of any current-generation personal computer. You have to see this display to believe it--it's incredible. And all of this power fits in a box that is one-third the size and weight on an IBM PC. And we're introducing a family of products with Macintosh: the image writer printer, an external disk drive, a modem, a numeric keypad, a Macintosh carrying case, and a security kit so your Macintosh won't go anywhere without you. You've just seen some pictures of Macintosh. Now I'd like to show you Macintosh in person. All of the images you are about to see on the large screen will be generated by what's in that bag. [Jobs walks over, pulls computer out of bag and displays it for the crowd to applause. He then pulls a 3.5” disk from inside coat pocket and inserts it, again to applause. Lights dim for presentation.] Now, we've done a lot of talking about Macintosh recently, but today, for the first time ever, I'd like to have Macintosh speak for itself. [Macintosh speaks, introduces Jobs. The crowd erupts into a standing ovation.] The team that developed Macintosh is sitting up here in the first five rows, and they must feel awfully good right now. Macintosh is targeted at two primary markets: the first is the 25 million knowledge workers who sit behind desks, and particularly those in medium and small size businesses; and the second market is the college worker. We thank that's the knowledge worker of tomorrow, and there are over 11 million college students in America alone. The telephone was really the first and only really desktop appliance, and we think Macintosh can become the second desktop appliance for these tens of millions of people. Because of the 235 people [sic] in America, only a fraction know how to use a computer. Macintosh is for the rest of us. And we need to communicate this message to those knowledge workers and college workers. And to do that, we are launching the largest advertising campaign in Apple's history, which will premiere on the Winter Olympics on February sixth. And I'd like to show you five commercials now. Commercial #1 Commercial #2 Commercial #3 Commercial #4 Commercial #5 Those ads were prepared by Chiat\Day, our agency, the same people that did “1984.” Over 70% of all the computers used in education in this country are Apples. And we feel pretty good about that, we care a lot about the educational process, and it reflects a bit about what our values are as a corporation. And it's also an incredible leverage point for the Apple II. Now, most of those are in kindergarten through 12th grade. A year ago, we went in search of about half a dozen colleges that would use a large number of personal computers in 1984, large being at least a thousand campus-wide. We didn't find half a dozen--we found two dozen. And today I'm really pleased to announce the Apple University Consortium, formed of those 24 colleges and universities around this country. They're the opinion leaders, they're the Ivy League, and they collectively have placed orders for more than $50 million today of Apple 32 supermicros. And this is the list of colleges. Every major university in this country that's going to be using a large number of personal computers next year chose Macintoshes and Lisas. And a ton of them are using courseware development, and all of them are leading the way for the other 3,000 colleges in America. And they are telling us that Macintosh is the ideal campus computer. And we're really excited about this program. Now, when we first designed the Apple II in a garage, what most people don't know is, we designed it to be built in a garage. We thought that if we every built 50 in a month we'd be doing great. Now, we've obviously exceeded our expectations by over 2,000 times in the month of December, but never before Macintosh has a personal computer been designed from the start to be built in the millions. From day one on Macintosh, we kept manufacturability in mind and have designed it to be the first personal computer to be built in the millions. I want to take you very briefly through how our Macintosh goes together. We first take the front bezel, the most precisely tooled piece of plastic that Apple has ever manufactured, and to it we affix a stamped sheet metal part and the cathode ray tube. Next, we attach the single board containing the entire high-definition video electronics and the entire lightweight switching-type power supply. Next, the 3.5” disk drive is attached, followed by a shield around the disk drive. Next, the single ten inch by ten inch board containing the entire 32 bit digital graphics processing computer is slid in to the metal infrastructure, and the cables are attached. And with four screws the rear case is then put on, and the Macintosh is tilted up for the first time and ready to go into a 24-hour automated burn-in, after which the keyboard and the mouse are added. And the challenge for us is to do this once every 27 seconds. Now, to do this, in addition to designing the machine, in the last year and a half we have designed and built the machine to build the machines. We've invested over $20 million to build the computer industry's first automated factory in Fremont, California, overlooking Ford and GM. The factory's based on the concepts of just-in-time delivery, of zero-defect parts, and it's a manufacturing process which allows extremely high-volume production of extremely high-quality products. And were it not for this shareholders meeting today, we'd be building over 500 Macintoshes. Macintosh was developed by a small team of incredibly talented artists. And the rest of Apple supported this core group of about 100 people, and they were able to able leverage the resources of a billion-dollar corporation to create their dream. And I have never in my life had the privilege of working with such fine and talented people. The experience of Macintosh has changed all of our lives who had the privilege of working on it for the last few years. And we think it's gonna change the millions of people who buy them in the next few years. We made a multimedia show, really for ourselves, that I want to show to you now that captures some of the spirit of this group. And I'd like to show it to you now. [Presentation] Now, Macintosh was one of the worst kept secrets in the world. But one of the best kept secrets in the world is that we're not introducing just one stand-alone product today. Today we're introducing a family of four new 32-bit products. We introduced Lisa one year ago, and it set the technical direction for the entire industry with its mouse, windows, icons. We're seeing imitations: Visi On, MS Windows, even a rumored IBM windowing package in the works. But today we're introducing three new Lisas. The first is Lisa 2, with 512k bytes of RAM and a 3.5” disk for $3,495. The second new Lisa is Lisa 2/5, which has a 5 megabyte profile Winchester disk drive for $4,495. And the third new Lisa is Lisa 2/10. It has a built-in 10 megabyte Winchester disk drive, which sits right above the floppy. And it's priced at $5,495. Now, all of these new Lisas use the 3.5” floppy disk drive that is compatible with Macintosh. And there is an upgrade for all existing Lisa owners upgrade their Lisa 1 to a Lisa 2/5 absolutely free. But perhaps the biggest news will be that all three new Lisas are 100% Macintosh software compatible. Now, together these four workstations form the foundation of the Apple 32 supermicros, a family of compatible products based on Lisa technology and 32 bit architecture. And these four workstations span an incredible price performance range, with Macintosh as the key building block at $2,495 to Lisa 2/10, the flagship in performance at $5,495. We didn't start Apple to build adequate products. And we didn't start Apple to simply put computers on the desks of computer-trained professionals to connect to IBM mainframes. What we wanted to do and what we want to do now is to build great personal computers and bring them to tens of millions of people. Never before has the time been riper, and never before, with a radically easier to use family of 32-bit products, have we been closer to doing just that. Thank you very much.