The keynote ends.

Next year's WWDC will focus on Leopard, the next version of Mac OS X. More than processors or hardware, the "soul of the Mac" is the operating system, Jobs says.

"The world's most innovative computer company has teamed up with the most innovative chip company." Paul Otellini plays Apple's "Toasting the Pentium" commercial from 1996.

Jobs says Intel is "passionate" about its products. Jobs invites Intel CEO Paul Otellini on stage to talk about Apple's transition.

Jobs says the launch of Microsoft Office 2004 was best product launch for Mac OS X. A new version of Messenger due for Macs in the next few months in addition to a new update for Exchange users. Mac Business Unit at Microsoft commits to delivering a "Universal Binary" for Microsoft Office. Jobs also invites Bruce Chizen of Adobe on stage to talk about Intel-based Mac transition. Adobe says it is committed bringing its applications to Intel-based Macs.

The Mac OS X for Intel Develpoer Kit includes a 3.6GHz Pentium 4 and OS X 10.4.1 for Intel (preview release). Order today; ships in two weeks.

Jobs shows Rosetta: a dymanic binary translator. It runs PowerPC code on Intel-baesd Macs, transparently to the users. It's pretty fast. Jobs demos Rosetta used to run PowerPC macs on Intel-based Macs --shows Microsoft Excel/Word running on Intel-based Mac (without any porting and/or recompiling). Jobs also shows Photoshop CS2 with all plugins that are translated and run on Intel-based Mac without significant speed decrease.

Jobs introduces Wolfram's CEO, who said they ported Mathematica 5 to Intel-based Macs in 2 hours. Only about 20 lines of code changed.

Under the transformation: Widget/Scripts/Java Just work, Jobs says. Cocoa apps will take a few days to update. Meanwhile, Carbon Apps will take a few weeks. Jobs tells carbon developers to start using Xcode. Over half of developers using Xcode. Next Xcode (version 2.1) will be delivered today. News Xcode generates a single "universal binary" that supports both PowerPC and Intel x86 processors. Available to everybody at registration desk following the keynote.

Mac OS X has been leading secret double life, Jobs proclaims. Every release of Mac OS X has been built for both Intel and PowerPC-based Macs over the last 5 years. Mac OS X is cross-platform by design. Jobs shows all Mac OS X Tiger running on Intel. All features are already compatible with Intel-based processors. It's not done yet, but will be put into the developer hands for finishing.

There is no G5 PowerBook yet. Future products can't be build on IBM PowerPC processors, Jobs says. Intel has better performance and delivers much better performance per watt. Starting next year the first Macs with Intel processors will debut. They'll begin shipping by next WWDC (June). The transition will be mostly complete by 2007 WWDC. It's a two-year transition.

INTEL RUMORS TRUE: Jobs says there have been two major transitions for Mac: 68K to PowerPC and then Mac OS 9 to Mac OS X. Now it's time for third transition to Intel-based Macs. Developers will begin to make the transition now. While users can begin to switch next year. Apple is making the move "because we want to make the best computers for our customers."

Mac OS X "Leopard" is due at the end of 2006

Apple will call the next -- and 5th major -- version of Mac OS X:" Leopard."

Just six short weeks after its release, Jobs says Apple is preparing to deliver its 2 millionth copy of Mac OS X 10.4 "Tiger." There are now over 400 dashboard widgets available... Dashbord demo.

Jobs begins discussion of Mac OS X 10.4 Tiger. Says one billion copies of QuickTime downloaded or distributed. A QuickTime 7 preview available for Windows starting today. Jobs quotes various media reviews of Mac OS X 10.4 Tiger. Talking about Spotlight...

Mac sales are doing very well. PC growth rate is around 10% today... 9 months ago Mac growth rate took off.

Apple will build in Podcasting support into iTunes -- providing easy and quick listening of Podcasts directly from iTunes. Users will be able to subscribe to podcasts, download old podcasts. Steve Jobs demos Adam Curry podcast. Artwork in iTunes window changes as you subscribe to podcasts. Jobs said that new iTunes would take podcasting mainstream.

By the end of last quarter, Apple had sold over 16 million iPods. This represents a 76% marketshare of all MP3 players. To date, 430M songs have been sold through iTunes -- an 82% market share for the month of may. Podcasting is exploding... described as "TiVo for Radio." "Wayne's World for radio." It's the hottest thing going for Radio with over 8,000 podcasts right now and growing very fast.

Apple Retail video being shown: 109 Stores with 1 million visitors per week. Combined the stores have sold over a half a billion dollars in products.

WWDC 2005 is being attended by 3800 developers -- the largest in last decade. Developers came from 45 countries including China. The conference will feature 110 lab sessions, 400+ entries for Appple Design Awards. There are now over half-a-million ADC members.

10AM - Keynote begins