The Talk Show

158: Live From WWDC 2016 With Guests Phil Schiller and Craig Federighi


00:00:00   Ladies and gentlemen, welcome to Mezzanine.

00:00:07   Won't you please take your seats and silence your cell phones.

00:00:14   Daring Fireball Productions, in association with the Daring Fireball Company LLC,

00:00:23   is delighted to welcome you to a daring fireball presentation of the talk show

00:00:31   live from WWDC 2016 and now won't you please welcome your host John Gruber

00:00:44   thank you Paul I actually needed that reminder my cell phone was not on on

00:00:51   silent thank you Mike I will start by thanking our sponsors this is a fifth

00:01:03   year actually we've been doing I've been doing this show at least fourth time

00:01:06   here at mezzanine and I think that MailChimp has been sponsoring our bar all

00:01:13   along and if not it's at least as far back as I remember so it just in case it

00:01:19   isn't clear the bar is on the house it is on MailChimp. MailChimp if you guys

00:01:23   don't know they are an email newsletters like my friend Ben Thompson Strategery

00:01:31   goes after MailChimp. They also have a bunch of new features stuff that

00:01:36   integrates with online stores and integration just about any online store

00:01:42   platform that you might be familiar with and then you can get your customers to

00:01:46   get email when products if they're interested are available or

00:01:50   Whatever great company if you need to send email

00:01:53   Go to MailChimp.com and please let's hear it for them for the open bar

00:02:00   Also back with us for the fourth consecutive year as a sponsor of the show is Microsoft and

00:02:15   At four years it's not even like a whoa that's weird Microsoft sponsoring. No, it's like awesome and and it makes total sense

00:02:22   They have this website. It's gonna give you so much more information than I have time to give you now. Any dev any app

00:02:29   dot-com. That's the message they're trying to give that any developer if you're working a mobile or the web

00:02:35   For any type of app if you need cloud services

00:02:38   It's now called the Azure App Service

00:02:41   If you need that sort of stuff go check it out. Their website has so much information. Here's the funny thing

00:02:45   They had the same website last year, but instead of any dev any app.com. I said any app any dev.com

00:02:52   And we are in fact streaming this live

00:02:56   And you know the show went on and in meantime I gave out the wrong URL for a pretty pricey sponsorship

00:03:09   And what happened is there was some kid in Australia who was watching the live stream who quick like jumped on and registered the domain

00:03:17   This true story, this is an absolute true story. You guys see Matt Hensing. He's here representing Microsoft. He's about this tall

00:03:27   him and Hockenberry are gonna have a fight after the

00:03:30   show is over

00:03:32   You could ask him he'll vouch for this so they got in contact with him. We're like, oh man, that's with Microsoft

00:03:37   We'd better get this domain and it was already gone and they contacted the kid and they were like, oh man

00:03:41   This kid is gonna you know, he's really gonna let us have it and he was like well one of those Xboxes would be nice

00:03:46   So they they sent the kid like a box like with an Xbox and like all the cool stuff that you could possibly imagine

00:03:56   It goes with an Xbox and they got the domain

00:03:58   So I think it's safe that you you can just go check out the information from Microsoft go to any app or any Dev.com

00:04:05   Now any dev, any app.com. Microsoft, great sponsor. And then last but not least,

00:04:13   we have one more sponsor. This one's new and surprisingly this is the thing

00:04:18   because if you think Microsoft, well how you gonna go bigger than that? But this

00:04:20   is actually one of the few, I mean I'm guessing maybe three or four

00:04:25   corporations in the world with a larger market cap than Microsoft. It's Meh.com.

00:04:35   [Laughter]

00:04:37   Matt.com is the store that I would run if I were gonna run like an online store.

00:04:43   And I mean, let me be clear. I have absolutely zero interest in running a store. It seems like a terrible job.

00:04:48   [Laughter]

00:04:50   And a lot of hard work and I don't like either of those things. So...

00:04:53   [Laughter]

00:04:55   Yeah, I'm not gonna run a store, but if I did it would be like Matt. Here's the way Matt works.

00:05:01   They have one product a day. That's it. You don't even know what it is.

00:05:03   You have to like go there at midnight. You find out what they're selling today. It's one thing daily deal usually at like an

00:05:08   Unbelievable price. I'm I said this before I'm half worried that they're like stealing these things and

00:05:14   That I don't know if me endorsing it like this makes me complicit in a crime because when you're selling like

00:05:19   $120 stereo for $14

00:05:21   Usually that was you know, it's like that scene in Goodfellas where they're selling cigarettes out of the back of the truck

00:05:27   But what they really do the other thing they do is they just concentrate on making everything real funny

00:05:32   the descriptions of the products are real funny. They have funny videos every

00:05:36   day and I really do get the feeling that they'd be happy if you just go there and

00:05:40   check them out every day and you never buy anything. They even, that's like the

00:05:42   gimmick of the thing is like here's the product, buy or meh and you can just type

00:05:47   men and they're like well that guy didn't like that. So my thanks to them.

00:05:53   So last year was a little different than the previous years because we had

00:06:02   actual special guest. What happened was the backstory on it is it was a week

00:06:06   before WWDC and I still hadn't asked anybody to be on the show and I was

00:06:10   putting it off because I kind of had it in my head that I kind of wanted to see

00:06:14   if I could get Phil and I put it off because I didn't want to hear no and it

00:06:20   was like a week before I was like well this is ridiculous I'll just ask and so

00:06:23   I sent an email to Steve Dowling I said look this is probably ridiculous and so

00:06:26   just feel free to say no. But I do this show every year and I think it'd be

00:06:32   really cool. I think it would work really well if Phil Schiller came on and the

00:06:36   day after the keynote we could talk about it, nerd out and go into detail

00:06:40   that you can't get into in a keynote. And he wrote back and all he said was, "Not

00:06:43   ridiculous. Let's talk tomorrow." And next thing you know, a week later Phil Schiller

00:06:49   was screwing around, not coming out behind the curtain and making me wonder

00:06:54   whether maybe he went to the bathroom, maybe we miscommunicated on what the

00:07:00   cues were gonna be and it was great. I mean I don't know how many people here

00:07:04   were here last year. It really was great. It was the best time I've had on stage

00:07:11   in my life and then I watched the video and I didn't even really die watching

00:07:15   myself. I was like this is actually pretty good and it ended and it was a

00:07:20   big surprise. We kept it under wraps. Everybody seemed pleasantly surprised

00:07:24   and it just made it all the more fun.

00:07:25   And then the show's over, and I go backstage,

00:07:29   and people are like, "Wow, that was great.

00:07:30   I can't believe it. That was amazing.

00:07:32   That was amazing." And I start meeting people.

00:07:34   And it was about three minutes, three or four minutes

00:07:35   after the end of the show when the first person said,

00:07:38   "Boy, you're really gonna have a hard time

00:07:39   topping that next year."

00:07:40   (audience laughing)

00:07:44   And I thought, "Wow, that did not occur to me

00:07:47   because this week has been a blur.

00:07:51   Like, I really just asked a week ago,

00:07:52   and then we set this up and I've been thinking on questions.

00:07:56   And you're right.

00:07:57   And there's only so far up I can go.

00:08:01   There's only so many different ways that we could go up.

00:08:03   So one of these years, it is absolutely gonna be the case

00:08:07   that it is not as good a guest as the year before.

00:08:09   I mean, one of these times,

00:08:11   it really is gonna be John Moltz coming out.

00:08:13   And that'll be great.

00:08:15   And we'll have a good show.

00:08:17   I mean, there might be more people

00:08:20   leaving to go to the open bar in mid show,

00:08:22   which you can do by the way, please. Really run up a good tab. We're good here.

00:08:26   But this is not that year. This year I think I think it's a little better.

00:08:34   So this year how do you top Phil Schiller? Here's how. Ladies and

00:08:44   gentlemen, please give a warm welcome to Phil Schiller and Craig Federighi.

00:08:54   [ Applause ]

00:09:18   True story.

00:09:19   Got a text message

00:09:22   about 45 minutes ago, hour ago.

00:09:25   Do you guys have any food here?

00:09:27   No, we don't.

00:09:29   We have lots of booze.

00:09:30   So when they get here, here's what Craig,

00:09:38   Craig has a boxed lunch from WWDC.

00:09:41   And that's what he's eating.

00:09:46   And a friend of the show and announcer Paul Kefausis

00:09:49   asked him, is that a WWDC box lunch?

00:09:52   And the answer is--

00:09:54   It aged well.

00:09:56   It was an old WWDC box lunch.

00:09:59   So let it be said, Apple eats their own dog food.

00:10:02   [LAUGHTER]

00:10:04   [APPLAUSE]

00:10:07   True that.

00:10:09   I can absolutely validate that for over 20 years of doing

00:10:15   surveys from WWDC every single year,

00:10:18   the number one complaint is the food.

00:10:20   And so we resign ourselves to the fact

00:10:22   that if that's the worst thing that comes out of WWDC,

00:10:26   all is good.

00:10:27   It's tradition, so.

00:10:31   (audience laughing)

00:10:33   - So I always start the show,

00:10:34   I started it the same way last year,

00:10:36   I always ask the guests,

00:10:36   how do you think the keynote went yesterday?

00:10:39   - Good audience.

00:10:40   (audience laughing)

00:10:41   Great crowd.

00:10:42   - Great presenters.

00:10:43   (audience laughing)

00:10:44   missing one. Once again Phil Schiller was not on stage at the keynote. This is

00:10:50   becoming a new tradition. I was teasing with Tim that between Craig and

00:10:57   Jeff Williams and now Bose I don't meet the minimum height requirement to

00:11:01   present. But Craig I honestly thought I talked to you yesterday briefly and I

00:11:09   told you I thought you did an amazing job. I mean how many people thought Craig

00:11:14   (audience cheering)

00:11:17   It's not just that you're up there and you're good

00:11:20   and you're covering stuff, but you covered

00:11:22   like three hours of stuff in 90 minutes

00:11:26   or however long you were on stage.

00:11:28   - Yeah.

00:11:29   (audience laughing)

00:11:31   It was a lot.

00:11:32   Yeah, I mean, the team did a tremendous amount of work

00:11:35   and we tried to--

00:11:36   - Well, the article I saw on the ringer today,

00:11:39   I don't know if you saw this.

00:11:40   (audience laughing)

00:11:41   I'm not gonna go into details of the article,

00:11:42   But the headline was, "Apple's Craig Federighi is Perfect."

00:11:45   [LAUGHTER]

00:11:47   [APPLAUSE]

00:11:49   I read that article, and I can only

00:11:54   confirm that it's half true.

00:11:55   [LAUGHTER]

00:12:03   So I didn't think about it yesterday,

00:12:05   but today it occurred to me that there sort of

00:12:08   was a recurring, overriding theme in the announcements

00:12:11   yesterday, which in broad strokes is that you guys have opened up a lot of stuff

00:12:17   to third-party developers that was previously reserved for Apple's first

00:12:23   party code. Quickly, I might even miss some, CallKit so that VoIP apps can get

00:12:30   the same lock screen privileges for incoming calls as the phone app and

00:12:35   FaceTime which is yours. Messages so you WhatsApp can you can specify a contact

00:12:42   when I text Craig default by going to WhatsApp instead of iMessage.

00:12:47   Siri API, iMessage apps, maps, extensions and even non Mac App Store apps can now

00:12:59   use Cloud Kid and a bunch of other iCloud services.

00:13:03   (audience applauding)

00:13:06   Is that a coincidence or is that like a strategic

00:13:11   part of the plan for this year?

00:13:13   - Well with iOS 8, we started that with extensions.

00:13:18   Opening up like the share sheet for instance.

00:13:20   For a while there it was, if we didn't build it,

00:13:21   it couldn't be in the share sheet.

00:13:23   And so we had to build a Twitter interface ourselves

00:13:26   and a Facebook interface.

00:13:27   And as of iOS 8, we started having extensions

00:13:31   for extending the system with sharing, widgets.

00:13:34   And so we built a lot of the technology with XPC services.

00:13:39   You folks know what those are, and out of process UI,

00:13:43   and all the building blocks to make this possible.

00:13:46   And this year we really felt like giving the developers

00:13:50   more and more opportunities to let users do

00:13:52   what they want to do across all these experiences

00:13:55   was a way that we could really make the platform better

00:13:58   for all of our users.

00:13:59   So yeah, it all came together nicely with Siri as well.

00:14:05   And a big part of it, it seems to me,

00:14:07   as the platforms, plural, evolve,

00:14:09   because it's definitely-- especially iOS and Mac--

00:14:14   what it means to have an app is more than, like on the Mac,

00:14:19   OK, you launch an app and a window opens up

00:14:21   and you are in this window.

00:14:23   And it's yours as the developer.

00:14:25   Or on iOS, it's a little simpler.

00:14:27   You get the screen.

00:14:28   But now, to be an app that's really taking advantage

00:14:32   of the best, the newest stuff that the platform has to offer,

00:14:36   you need to be inside other apps.

00:14:40   You know, widgets inside iMessage.

00:14:45   I think that just makes sense for mobile.

00:14:47   I mean, if you have an app and the right place to interact

00:14:52   is on the notification on the lock screen,

00:14:54   and you don't want the user to have to unlock the phone

00:14:56   and launch your app in order to get something done,

00:14:58   or invoking your app with Siri is

00:15:01   going to be the quickest path to getting something done.

00:15:03   We want to make that possible.

00:15:05   And so I think that's what you're seeing here,

00:15:07   as well as, as you say, inside of Maps.

00:15:09   If you want to book a ride, or you

00:15:11   want to get a restaurant, or any of those things,

00:15:14   it's going to just be a quicker and smoother flow

00:15:16   if you're integrated into the place where the user started

00:15:19   instead of requiring switching around.

00:15:20   And so this is opening all that up.

00:15:22   And I think developers are going to do

00:15:24   a tremendous number of things with it

00:15:25   that we didn't even envision, so it should be an exciting year.

00:15:28   It's also just an evolution of the success of the app model, right?

00:15:33   Apps took off, been wildly successful, this amazing software process, and then you want

00:15:40   to have apps in your maps, you want to have apps in your Siri situations, and you want

00:15:45   to have apps in your messaging, and so we like apps, we like them everywhere, we want

00:15:49   to use them in many places, so to me it's an evolution of what's going on with apps

00:15:53   in general. And you mentioned XPC and I know, I mean this is a fairly, fairly nerdy

00:16:00   crowd, but I do think it's a years-long shift where, and my layman's

00:16:08   XPC is inter-process communication and it's a way for different processes that

00:16:13   can be sandboxed and all of the privacy and hey you, this process can't

00:16:19   diddle with the data of this process without having it in a shared location,

00:16:24   that they can still communicate with each other in a rich way. Compared to the

00:16:29   old days, the Mac OS has always been extensible and whether you want to go

00:16:34   back to the classic Mac OS with like a NITS or the next step days with things

00:16:42   like bundles and input managers and remember in the early days of Mac OS X

00:16:45   when we had the hacksies and the input managers.

00:16:48   And that was, and in layman's terms,

00:16:51   the fundamental differences, those were ways

00:16:53   to extend apps officially or unofficially,

00:16:55   where the extension code was running within the process.

00:17:00   - Yeah, and from a stability point of view

00:17:02   and a privacy point of view, really bad news.

00:17:05   So we started years and years ago with mock messaging

00:17:11   and on that we built XPC as a form of remote procedure call and asynchronous messaging,

00:17:18   structured messaging thing, but we then created what we internally called XPC containers,

00:17:24   which are really what you now think of as XPC services, which are the ability to package

00:17:28   a whole bunch of code and let the system manage launching that code, tearing that code down

00:17:33   when it needed to, but exposing services in that way.

00:17:36   And that turned out to be really important, even internally within the OS.

00:17:40   We were using it for quite a while within the OS before it was exposed as a mechanism

00:17:43   for third parties because it allowed us to set different security boundaries around different

00:17:48   – this is really getting nerdy – but –

00:17:50   No, this is good!

00:17:51   [Laughter]

00:17:52   [Applause]

00:17:53   Because if you're going to go load some image format even or run a Spotlight converter or

00:18:03   something that's going to run over all your documents, you want to make sure that if that

00:18:07   Nothing crashes, it doesn't crash the overall spotlight indexer or the app.

00:18:14   You don't want it to have any more access to anything but the one thing it's supposed

00:18:17   to have to do the job.

00:18:18   So this was all part of our security and sandboxing architecture.

00:18:22   But then with iOS 8, we saw the opportunity to combine that with essentially remote views,

00:18:28   the ability to say that the UI you see on screen that looks like it's all from one app

00:18:32   is actually composed from the main app, but also one or more XPC services serving UI into

00:18:39   that and we manage all that.

00:18:40   And that gives you this single experience, but where all the security boundaries and

00:18:44   the stability boundaries are in place.

00:18:47   And that's enabled us to take this extensibility model from something that was really Haxi-prone

00:18:53   in the next step and, well, init in CDAB days.

00:19:00   And make it much more stable.

00:19:01   And so that's been now a building block for all these things that we're doing.

00:19:06   And iOS 10 was just really stepping on the gas on the places where we could do that that

00:19:10   made the biggest difference for user experience.

00:19:13   One of the most surprising changes, and again, I think that this is in the spirit of openness

00:19:18   or flexibility on Apple's part and relinquishing control that previously wasn't relinquished.

00:19:25   And it surprised me is that you can now remove a whole bunch of the default apps on iOS from

00:19:32   your home screen.

00:19:33   Though you would not want to.

00:19:35   If you have the freedom, just knowing you have the power that you'll never use.

00:19:41   It's one of my favorite pages on the What's New site is I love the page because it even

00:19:46   goes out of the way to say, you know, because of all the compression that we use and the

00:19:50   the techniques that we use and the shared frameworks,

00:19:52   they only take up 150 megabytes.

00:19:54   (audience laughing)

00:19:56   - Yeah, well, okay, so, this is true, this is true.

00:20:01   We should be really clear on actually what this feature is

00:20:03   and what it's not,

00:20:04   'cause it's not everything you might think it is.

00:20:07   So, what it is is you are removing,

00:20:10   when you remove an app,

00:20:12   you're removing it from the home screen,

00:20:14   you're removing all the user data associated from it,

00:20:16   you're removing all of the hooks that it has

00:20:19   into other system services, like Siri no longer will try to use that when you talk to it and

00:20:24   so forth.

00:20:25   We're not actually deleting the application binary, and the reason is really twofold.

00:20:30   One, they're small, but more significantly, the whole iOS security architecture around

00:20:36   the system update is this one signed binary where we can verify the integrity of that

00:20:44   with every update, that there's no mixing and matching going on between all of these

00:20:47   different pieces.

00:20:49   And so if you go and say, well, I don't like, what's an app that someone would remove?

00:20:56   I'm going to get myself a couple here.

00:20:57   I can't think of one.

00:20:59   Stocks.

00:21:00   Stocks.

00:21:01   Some people don't follow the stock market.

00:21:05   Fair enough.

00:21:06   Some people do not follow the stock market or there's not one in their country.

00:21:08   Which is good for them.

00:21:09   Yes.

00:21:10   Or something.

00:21:11   Yes.

00:21:12   And so they might remove that app.

00:21:13   And when you do, it's hidden, and any user data and preferences and so forth associated

00:21:18   with it's gone.

00:21:19   If you want to get it back, we were thinking, well, how do we let you restore this?

00:21:23   And we thought, well, people are naturally, if they want to go get it back, they're going

00:21:26   to go to the App Store and search for it.

00:21:28   And so you go to the App Store and search for it, and it'll show up, and you'll say

00:21:32   "get," and it will reappear.

00:21:35   Because that's how they know to install it.

00:21:37   The download will be remarkably fast.

00:21:39   Exactly.

00:21:40   Compression technology.

00:21:41   - Impression technology.

00:21:44   Good stuff.

00:21:44   - And it has led some to mistakenly report

00:21:47   that we're moving these apps out of the system bundle

00:21:50   and into the store for downloading,

00:21:52   and that's not really the case.

00:21:54   We're just making that the easy mechanism for restoring,

00:21:56   is seeing it from the store side.

00:21:58   But it's really still part of the system bundle.

00:22:00   - Okay. - Let me set the record

00:22:01   straight here. - That's interesting,

00:22:02   'cause that means there won't be an update to mail

00:22:04   that comes through the App Store.

00:22:05   It's just like it used to be.

00:22:07   It'll be part of the system update.

00:22:08   - That is correct.

00:22:09   Well, speaking of the App Store, this last week,

00:22:13   (audience laughing)

00:22:16   a week ago--

00:22:19   - There's a reason I sat on this side.

00:22:21   I just thought these two were gonna get totally nerd out

00:22:23   and I'm just gonna let 'em have fun

00:22:25   and I have no problem with that.

00:22:27   - A week ago, there were a bunch of changes,

00:22:32   improvements to the App Store.

00:22:34   In a certain sense, you could, you know,

00:22:37   or one of them, and it did not get mentioned in the keynote,

00:22:39   but review times for apps submitted to the App Store

00:22:42   are way faster than they used to be.

00:22:44   (audience cheering)

00:22:47   - We thought this was one of those cases

00:22:55   where we could address a problem

00:22:56   before it starts to boil over.

00:22:58   (audience laughing)

00:23:00   Just an anticipation of potential future.

00:23:03   - For the audience at the keynote though,

00:23:08   That, to not even mention that and just take that applause

00:23:11   is amazing because you know that it's coming

00:23:14   and that developers are pretty happy about that.

00:23:17   - It would have been an easy way to get applause

00:23:20   but we didn't stoop to that trick.

00:23:22   So, yeah, you know, it was exactly,

00:23:25   people have all these awesome conspiracy theories

00:23:27   and they're fun to read but it was exactly what we said

00:23:31   which was the, we were working on the keynote.

00:23:34   We actually thought about having a whole developer section

00:23:37   to talk about the App Store and the keynote,

00:23:39   and looking at keeping it really,

00:23:41   we really wanted to get done

00:23:42   in just under two hours if we could.

00:23:44   And you couldn't really talk about that

00:23:48   in the subscription stuff and the ad search stuff

00:23:52   and all that in three minutes.

00:23:54   We really needed probably about 15 minutes to explain,

00:23:57   and it just wasn't worth losing 15 minutes of product time

00:24:01   to talk about that if we could instead just talk

00:24:04   to people ahead of time.

00:24:05   so we decided to do something we've never done before,

00:24:07   which is before the keynote,

00:24:09   so, explain some of this.

00:24:11   However, it was kind of tough to do

00:24:12   because here we're talking to you and a few others

00:24:15   and saying, here are things we're doing for the App Store,

00:24:18   knowing that we still have to come a few days later,

00:24:22   you know, apps working with Siri

00:24:23   and apps working with Messages,

00:24:25   and these are huge impacts on developers

00:24:27   and a new store for message apps were gonna come out,

00:24:31   and so we couldn't really tell the whole picture

00:24:33   of all the things we're doing,

00:24:34   So we told sort of half of it and waited for the rest.

00:24:38   Well, part of it that goes together-- so one of the

00:24:40   improvements last week was search ads.

00:24:43   And I noticed--

00:24:46   I don't know, Jerry, if you noticed, before we came out,

00:24:48   there was an ad that showed up first, as John, you did your

00:24:52   ads before we started this session.

00:24:55   It was really nice.

00:24:57   Thank you.

00:25:02   And I found two of the three were relevant

00:25:05   to what we were discussing.

00:25:06   (audience laughing)

00:25:09   I won't, for the benefit of your advertisers,

00:25:14   I won't mention which one I didn't find

00:25:15   quite relevant to my interests, but.

00:25:17   (audience laughing)

00:25:20   - I was gonna be nice, I was gonna say.

00:25:27   (audience laughing)

00:25:29   I was gonna say how there's a tie-in

00:25:31   you couldn't mention a week ago where the idea of the search edge is it improves discoverability

00:25:38   and there's a discoverability aspect with the iMessage apps where if I send you a widget

00:25:45   through an iMessage app and you don't have it yet, there's a very subtle, you know, this

00:25:50   was, I forget what it exactly says, but it gives you a...

00:25:52   Yeah, a couple of really interesting things that the team did in working on these message

00:25:58   JibJabs is number one, that if I send you something,

00:26:02   if I send you a sticker, if I send you a JibJab,

00:26:06   you get to receive it and experience it

00:26:09   without having to download the app.

00:26:10   And so you can do that on a lot of these things,

00:26:13   where some other services you're always being hit with,

00:26:16   hey, download this in order to see what someone's sending you.

00:26:19   The team really wanted to have a great experience

00:26:20   for the receiver.

00:26:21   You don't have to do that.

00:26:23   However, there is attribution there,

00:26:25   and you can choose to get it if you're like,

00:26:26   wow, those JibJabs are really cool.

00:26:28   I want to download them too and share them with friends.

00:26:31   And hopefully that'll become a nice viral marketing

00:26:33   in addition to other ways for users

00:26:35   to discover apps and messages.

00:26:37   - On search ads,

00:26:40   make the case, and when we talked last week you did,

00:26:44   and on the phone call I thought, yeah that makes sense.

00:26:48   And then when I went and looked at my notes

00:26:50   and I was like, I'm not sure I get it.

00:26:51   Make the case, on this particular part,

00:26:54   that the system that you guys have designed

00:26:57   can and should be to the benefit of smaller indie developers

00:27:02   and it's not going to be dominated by the biggest companies

00:27:07   with the budgets that are more than everybody here combined?

00:27:11   - So the two sort of priorities we set on the team

00:27:17   as they were working on it was if we're gonna do this,

00:27:21   we have to do it in a way that number one,

00:27:23   protects user privacy.

00:27:25   There are many ways that companies do it

00:27:27   where they're not protecting privacy,

00:27:28   and we need to understand that.

00:27:30   And secondly, how do you do it in a way

00:27:32   that gives advantages to small and indie developers,

00:27:35   because it's easy to imagine a system that didn't do that.

00:27:38   And so we set out to think of all the things

00:27:40   we could do to make that possible.

00:27:42   And there's a long list of things,

00:27:44   and I won't go through all of them to bore you all,

00:27:46   but there are many things.

00:27:49   Things like, first of all, there's no minimum bid,

00:27:52   So you don't set up a bar if you have a very small amount of money.

00:27:55   You can just do what you want with the small money.

00:27:57   The fact that we're going to work really hard to try to make relevance the top priority

00:28:02   over bid for why something gets shown, that the users are the ultimate deciders of what

00:28:09   gets shown based on their clicks or big input to what is relevant to the search result.

00:28:16   The fact that we're going to work hard to try to police and improve the whole metadata

00:28:21   system if we find, as it easily could, be abused to hurt developers.

00:28:27   The fact that—and this has been a hotly debated thing—the fact that you can do conquesting,

00:28:33   you can use someone else's brand in your ad words that you want to use, as we thought

00:28:39   about it, that is more likely to benefit the small developer than the big developer, because

00:28:43   the big developer isn't going to pick on a lot of small developer terms, but a small

00:28:46   developer can try to latch onto a big developer's name.

00:28:49   If you want to search for Angry Birds in your game, you can.

00:28:54   We think that that can help them.

00:28:55   The fact that there is no exclusivity.

00:28:58   So a large developer cannot say, "I want to be the top bid, and I'm going to spend everything

00:29:03   I can to buy up this term."

00:29:04   There will be no exclusivity.

00:29:05   There's going to be a rotation there.

00:29:07   As that rotation appears, the relevance will help drive it further.

00:29:10   We're trying everything we can.

00:29:13   I think one of the best things is right now, once we're in beta throughout the summer,

00:29:18   The downloads the users get from the ads are real downloads to benefit the developer, but

00:29:22   we're not charging during the beta time.

00:29:24   So there's a chance for everybody to get in and try it out, help us learn from it, and

00:29:29   drive real downloads and real business without any marketing spend.

00:29:33   So we're trying to think of things we can do, and we'll think of more.

00:29:35   We'll take feedback and see what's happening and where it works and doesn't work, and who

00:29:39   feels like they're getting stomped on, and we'll try to do all we can to make it better.

00:29:46   And the last bit of news with the App Store changes, or the third of it, was an expansion

00:29:57   of the categories that are allowed for subscriptions.

00:29:59   I don't know if you noticed, but there was a little bit of confusion last week about

00:30:03   the difference between apps from all categories versus all apps.

00:30:08   Let me explain that.

00:30:11   So our intention is exactly as we talked about, which is we're opening up a subscription model

00:30:19   to all categories, so what kind of an app you make doesn't directly have an impact on

00:30:26   whether you can have a subscription model or not.

00:30:30   We want to open up subscriptions to all developers of all apps.

00:30:34   That is the hope.

00:30:36   However, there are a couple little gotchas where we have to be careful, and so that's

00:30:40   That's why there's some caution here.

00:30:43   Number one, if you want to create a professional app and you're going to maintain it and do

00:30:47   updates and you want to have an ongoing revenue stream, that's of course an intention of this.

00:30:53   But do users really want, and I'm sorry to pick on this category if somebody makes this

00:31:04   app because I'm sure there's examples where you would want it, but do you want a flashlight

00:31:08   app to now be an app you have to pay for forever with a subscription model.

00:31:13   Users probably don't want that.

00:31:15   So we have to be sensitive, first of all, to is there some minimum functionality where

00:31:21   users now get pissed off and say everything's turned to subscription, I don't want to buy

00:31:25   stuff anymore, this is not okay, and now that's a drag on business on the App Store and therefore

00:31:31   we all lose.

00:31:33   We feel a responsibility.

00:31:35   I read your thing that says, "Hey, why not just let the market choose?"

00:31:38   What if the market screws itself up and it does badly, and then we all lose?

00:31:42   We have to be a little bit sensitive to not do something we think that could backfire

00:31:47   and hurt all of us.

00:31:48   We want to be careful about minimum functionality, so there will be some guideline around that,

00:31:52   which we already have a guideline on minimum functionality for anything.

00:31:56   You can't just wrap a website and call it an app, but there will be a little bit more

00:31:59   minimum functionality for subscription.

00:32:01   I think the guidelines include, a long-standing guideline is that the App Store has plenty

00:32:06   of FART apps already.

00:32:08   That is absolutely one of the rules.

00:32:12   There is a secondary issue, and we're working through this.

00:32:16   There are certain states and governments where there are laws about creating a subscription

00:32:24   revenue stream without a clear promise to the user of what they're paying for down the

00:32:28   road.

00:32:29   Our legal team has been working with us on this, on trying to make sure we put in place

00:32:33   in the store the right way for developers to make clear their intention to deliver value

00:32:39   for that customer, or else they'll be breaking the law by asking for a subscription with

00:32:42   no intention to delivering value down the road.

00:32:45   We want to be careful of those things.

00:32:48   Those are the kinds of reasons we have caveats on it, but the intention, I think, is what

00:32:53   we all want.

00:32:54   [applause]

00:32:55   (audience applauding)

00:32:58   The Mac App Store,

00:33:03   I'm not gonna say,

00:33:06   I'm not gonna say it's been treated as the ugly stepchild,

00:33:10   but maybe the slightly less attractive stepchild.

00:33:13   And a couple of examples,

00:33:16   TestFlight beta testing was in the iOS App Store.

00:33:19   Craig, is it in the Mac App Store yet?

00:33:23   I don't think so, all right.

00:33:24   So no test flight.

00:33:25   - How the hell are you doing?

00:33:26   - Video.

00:33:27   (audience laughing)

00:33:28   Video reviews.

00:33:29   I know that's, and it seems like that really works.

00:33:32   Like there's, you know, instead of just static screenshots

00:33:34   to show your app on iOS, you can have a video

00:33:37   that shows it in animation.

00:33:39   And a lot of times, for developers who are doing

00:33:41   the cinematic experience of really making the app

00:33:45   feel great, the video can do so much more

00:33:48   than a static screenshot.

00:33:52   And all of the news last week applies

00:33:55   to all of the app stores.

00:33:57   So that in and of itself is a change,

00:33:59   a change in the way the app store

00:34:03   distributing new features, yeah?

00:34:05   - So we love all of our kids,

00:34:09   and I'm sure all of you do as well equally.

00:34:11   (audience laughing)

00:34:12   And so we love the Mac App Store,

00:34:16   we want it to do well,

00:34:18   we want to support the developers in it,

00:34:20   we care a lot about it.

00:34:21   We use it ourselves.

00:34:22   It's a very important store for ourselves.

00:34:23   We've moved all of our software distribution into it

00:34:26   and are very happy with that.

00:34:27   So we're one happy software developer that's using it.

00:34:30   And we still think, in the long view of all of this,

00:34:35   it matters a great deal.

00:34:38   We think it matters for privacy.

00:34:40   We think it matters for security.

00:34:42   We think it matters for quality on the store.

00:34:45   We've all seen examples of apps that have been hijacked

00:34:48   on servers where people download stuff

00:34:50   that have viruses injected in them,

00:34:52   and we don't want any part of any of that, all of us.

00:34:54   So we think it's still an important solution,

00:34:56   and we're dedicated to it.

00:34:58   There are things through the years in the Mac App Store

00:35:01   that haven't been fully implemented

00:35:03   because they didn't make as much sense in the Mac

00:35:05   as they did in iOS, or the engineering effort

00:35:08   was really high for a benefit that wasn't seen as as big.

00:35:13   Whatever, example, so test flight.

00:35:15   For the engineering involved there,

00:35:19   people have felt that there are a lot of opportunities

00:35:22   in the Mac from website to download apps for test

00:35:25   and distribute beta software.

00:35:28   So the need wasn't as great, right?

00:35:30   It was a clear need on iOS, not as clear on Mac.

00:35:32   So that's why some decisions were made and trade-offs there.

00:35:36   But as you say, as I've been working more with the App Store

00:35:39   team since December, I've really pushed the team to please

00:35:45   make sure everything makes sense across all the stores

00:35:48   as much as possible and maybe there'll be some exception

00:35:51   to that that we have to make but we don't want to.

00:35:53   We want to try to do everything the same

00:35:55   on all the stores as much as possible,

00:35:58   including the Mac App Store.

00:35:59   (audience applauding)

00:36:02   - So one thing the Mac App Store has been good for

00:36:07   and the Mac software ecosystem in general is good for

00:36:10   is that it seems to support higher prices of apps

00:36:14   for truly professional apps, deeper apps.

00:36:18   And there's a consensus, or maybe not consensus is the wrong word, maybe you'll disagree,

00:36:24   but there's a lot of people who think that one of the things that's holding back the

00:36:27   iPad, especially now that it's the iPad Pro, from replacing a MacBook for someone who might

00:36:35   want to, is that it lacks the same depth of deep apps for work that the Mac has.

00:36:43   The reason is that the pricing pressure is more like iPhone-style couple of bucks as

00:36:49   opposed to Mac-style, where $50, $80, $100 software has long been the norm.

00:36:57   I think you see two things happening at the same time.

00:37:01   Number one, the iPad's capabilities are growing as a PC replacement product for some people.

00:37:09   I know some people have made some statements about that.

00:37:11   I don't know who.

00:37:15   And so we're trying to make it more and more powerful, making it larger screens, keyboards,

00:37:20   the more powerful processors, and all that's happening to drive it into a more capable

00:37:25   product.

00:37:26   At the same time, you start to see more professional applications begin to make their way onto

00:37:30   it, and so I think we're seeing changes there.

00:37:34   We're seeing certainly apps that have a similar version on your iPhone that you want on your

00:37:39   iPad will have similar pricing, but other apps that are maybe coming over from the Mac

00:37:43   or the PC are bringing on pricing models that are more like that.

00:37:47   So you're going to see this duality with iPad, that there's a little of both happening.

00:37:53   We see an increase of the more professional apps happening.

00:37:56   When you see stuff in flight with developers we're working on that's really impressive

00:38:00   desktop quality software, more and more are coming to iPad.

00:38:03   It's definitely not the hardware, because the iPad Pro stands toe-to-toe with the MacBooks

00:38:08   on any technical measure you can give it.

00:38:11   I mean, it's beautiful displays, powerful CPUs,

00:38:14   and stuff like that, so it's not holding it back.

00:38:16   - And I do think if you really look at some

00:38:18   of the professional apps that are on the iPad,

00:38:20   it's, I mean, some of them are really first class,

00:38:23   and I think the iPad Pro's going to accelerate that,

00:38:27   and we absolutely wanna find any way possible

00:38:31   to make deep investment by developers

00:38:33   in the platform possible,

00:38:36   because I think we'll all win when that happens.

00:38:38   - All right, new topic, privacy and security.

00:38:42   I remember a couple of years ago, maybe more,

00:38:45   I don't know how many years, but I was at WWDC

00:38:47   and I somehow wound up in a session on security.

00:38:50   I don't even know why I was there,

00:38:52   but I was interested, I think I was talking to somebody,

00:38:55   he's like, I gotta go into this thing on security.

00:38:57   I was like, well, I'll go with you,

00:38:58   and I went in and listened.

00:38:59   And at the end, it was when they were still doing Q&As.

00:39:01   And I remember this very vividly,

00:39:04   And somebody asked the question of somebody

00:39:07   who was on the engineering team in charge of security,

00:39:10   gave a rant about how passwords are terrible.

00:39:13   And people pick bad passwords because they're

00:39:14   easy to remember.

00:39:15   And passwords that are hard to remember, or hard to crack,

00:39:19   or hard to guess are unusable, or less usable.

00:39:23   Have you guys given any thought to what's

00:39:25   next beyond passwords?

00:39:27   And there is this pause.

00:39:29   And the speaker-- yes.

00:39:33   [laughter]

00:39:34   It was like, "Well, that's a very interesting and truthful answer."

00:39:40   We've seen, I think, in the intervening years some of the things that might have been circulating.

00:39:44   Touch ID.

00:39:45   Yeah.

00:39:46   Now, one of my favorite features you guys announced yesterday, can't wait to use it,

00:39:50   is Auto Unlock.

00:39:51   Auto Unlock.

00:39:52   Yeah.

00:39:53   [applause]

00:39:54   Can you talk about how that came to be?

00:39:59   Which part of it?

00:40:00   I mean, are caring about security?

00:40:02   - Well, no, no, with Auto Unlock in particular,

00:40:04   the details of what are you guys doing

00:40:07   to make Auto Unlock truly secure,

00:40:10   that it's not, that I'm not over here

00:40:12   opening Phil's MacBook because he's in the room?

00:40:16   - Yeah, yeah, well, I mean, of course,

00:40:20   it's a continuation of the work we did with Continuity

00:40:25   to develop really low-power,

00:40:28   BTLE-based discovery protocols

00:40:30   So your devices could discover each other continuously with acceptable overhead from

00:40:35   a battery point of view and also all the authentication mechanisms we put in place as far as having

00:40:41   your devices know that they're your devices.

00:40:43   So that's kind of a foundation.

00:40:45   The unique challenge with auto unlock is you don't want a kind of relay attack where Phil

00:40:53   is actually, you know, well far away from his office and someone basically has a Bluetooth

00:40:59   listener that's going to forward a signal to you because you're now by his Mac and this

00:41:07   Mac is having a conversation with Phil's watch over a very long distance.

00:41:13   And so we're actually able to do time of flight calculation using peer-to-peer Wi-Fi where

00:41:20   we literally can measure how long at the speed of light it's taking for the signal to travel

00:41:26   from your watch to your Mac and back.

00:41:29   [applause]

00:41:30   That's a very fast stopwatch.

00:41:36   Because of that, if you interposed any kind of relay, it would introduce a delay that

00:41:40   immediately would tell us there's high jinks afoot.

00:41:43   Yeah, make sure they type in their password.

00:41:45   Yeah, absolutely.

00:41:48   That piece is critical.

00:41:49   But I think on the bigger picture, I mean, Touch ID is one way that we've helped with

00:41:54   passwords, but actually on iOS the secure enclave and that whole architecture, the fact

00:42:02   that your device is not encrypted just with your password, with your passcode, which honestly

00:42:08   whether it's four digits or six digits is short enough that if a brute force attack

00:42:13   were possible, it would be, you know, you readily could break into something, but instead

00:42:19   it's entangled with a hardware key that only the secure enclave runs and the secure

00:42:23   Enclave will only do its unwrapping when running Apple signed software and will only let you

00:42:30   try 10 times.

00:42:32   And so fundamentally, yeah, that was first, yeah, very important step to saying you could

00:42:39   have a practical length passcode with really industrial strength security.

00:42:43   And so we keep pushing on this.

00:42:46   Continuing on the sort of privacy vein, I think it's a good segue into Siri, quote-unquote

00:42:55   deep learning, AI, these sort of features that you guys was a big part of the presentation

00:43:00   yesterday, because a big part of your on-stage message about it was the emphasis on the way

00:43:09   that the systems are designed to protect users privacy and the technical implications of

00:43:16   that.

00:43:17   Yeah.

00:43:18   So, one of my questions, when does deep learning happen?

00:43:22   So like I'm on the phone and I'm taking a couple of pictures of the event and stuff

00:43:28   like that.

00:43:29   When does the...

00:43:30   That analysis occur?

00:43:31   Yeah.

00:43:32   So, if you upgrade your device to iOS 10 and you have your photo library there with your

00:43:37   10,000 photos or 100,000 photos on it, the analysis of that kind of backlog will occur

00:43:43   when you're plugged in on AC overnight, because this is a considerable amount of computation

00:43:48   that's going to occur that we wouldn't have happen in your pocket.

00:43:52   But when you're out taking a fresh picture, at that point we will instantaneously perform

00:43:58   the analysis on that hot photo as it's going into your photo library.

00:44:03   We can do it that fast.

00:44:05   It is like scene classification I mentioned yesterday, is it yesterday?

00:44:11   That it is like about 11 billion calculations that have to occur to do that thing like that's

00:44:19   a horse, that's a mountain.

00:44:24   But with the GPUs on iOS devices these days really cook, so we can get through that essentially

00:44:31   instantaneously with the photos?

00:44:36   And on the privacy part, my understanding, and correct me if I'm wrong, but my understanding

00:44:40   from what I've learned is if you've got iCloud photo library, and I take a couple of pictures

00:44:46   with my iPhone, the photos will sync to the cloud, and then they will go to my iPad and

00:44:52   my Mac, but the deep learning analysis doesn't go with them.

00:44:57   machine performs its own processing on its own time when it, you know, plugged in inappropriate.

00:45:05   Is that true?

00:45:06   That is true right now.

00:45:07   So each device does its own processing.

00:45:12   In the future, we could share the results of like the first one who does the work, just

00:45:18   make that work go along for the ride.

00:45:21   But today, it's going to be each device doing it independently.

00:45:25   When you think about what's going to happen, if we release iOS and OS X on separate days,

00:45:34   everyone's iPhones will race to do all this work on their library first, and then the

00:45:41   Mac will be fine at that point.

00:45:44   We wouldn't have saved the iPhones from doing the work if we'd had them share the work of

00:45:49   the Mac.

00:45:50   Just to add on that view of someday they may not all have to do it, it's a view where

00:45:55   Apple will never actually know that analysis ourselves.

00:45:59   We won't see that data.

00:46:01   It's a way to do it.

00:46:02   We're out of the loop.

00:46:04   - Yeah, I mean, to be clear, the photos themselves

00:46:06   the architecture sets that they're encrypted in the cloud

00:46:11   and the metadata, any metadata about the photos

00:46:14   that you create or that we create

00:46:16   through deep learning classification

00:46:19   is encrypted in a way that Apple's not reading it.

00:46:24   (audience applauding)

00:46:27   I wanna get nerdy on this differential privacy thing.

00:46:33   'Cause it's a phrase, it's like an official thing.

00:46:36   I've learned a little more.

00:46:37   It's not just a phrase you guys made up.

00:46:39   It's like a--

00:46:40   - It wouldn't have been the phrase we would have made up.

00:46:41   - Right.

00:46:42   (laughing)

00:46:44   - Yeah, we would have done a better name

00:46:46   if that's what we did.

00:46:47   (audience laughing)

00:46:50   - But like in the State of the Union yesterday,

00:46:52   I mean, there's real math behind it.

00:46:54   This is not just a name that is applied to policies.

00:46:57   This is a branch of statistical analysis that--

00:47:03   talk to me about it.

00:47:04   I know you touched about it in the keynote,

00:47:06   but give us a little slightly juicier layman's overview

00:47:09   of differential privacy.

00:47:11   Sure.

00:47:12   Yeah, I mean, of course the idea is

00:47:14   that if we wanted to know what word--

00:47:21   a new word that everyone was,

00:47:23   that lots of people were typing that we didn't know

00:47:25   so that we would stop marking it as a spelling error.

00:47:27   Or maybe we'd even suggest it on the keyboard.

00:47:29   - Like me or something.

00:47:30   - Yeah, like now it's just, it's trending, it's hot.

00:47:33   We want all our customers to be able to know that word,

00:47:36   but we don't want to know that you and Phil

00:47:38   are in particular typing it.

00:47:39   We want to have no way to have any knowledge of that.

00:47:42   You can imagine if what we're essentially assembling

00:47:46   is a picture of little pieces of data,

00:47:50   of the forest, but all we're getting is a little piece.

00:47:54   And when we get that little piece, even each device will statistically much of the time

00:47:59   even lie about its little piece.

00:48:02   But those lies will all cancel out with enough data and the picture will suddenly resolve,

00:48:09   with enough data points, will resolve itself.

00:48:12   And so, and yet, and literally if we were trying to learn a word, we would send one

00:48:18   One bit, we'd send a position and a single, we'd hash the word, we'd send a single bit

00:48:25   from the hash.

00:48:26   We'd say at position 23, Phil saw a one.

00:48:29   But Phil's phone would flip a coin and actually say, "Actually, I'm going to lie about it.

00:48:33   I'm going to say zero even though I saw a one."

00:48:35   And that's the data that goes to Apple.

00:48:37   Then Apple with enough of that data can build a composite picture and say, "Holy smokes,

00:48:42   we have a word here."

00:48:43   And this many people roughly are seeing it.

00:48:46   And that's typically what you want to know.

00:48:47   We want to know what's happening at large,

00:48:50   but we have no desire to know what specifically

00:48:52   who is doing what.

00:48:53   - Which is typically what you would want to know.

00:48:55   It's not typically what other companies in the industry

00:48:57   would want to know.

00:48:58   (audience laughing)

00:48:59   - And part of the reason this is so important to get into

00:49:01   is because, you know, there's the theory that,

00:49:04   well, we can just anonymize the data and send it up

00:49:07   and then all's good, and it's a bunch of crap

00:49:09   because I can send all this data and say,

00:49:12   "Hello, I don't know who you are,

00:49:14   "but I happen to know that same location

00:49:16   go to every night.

00:49:17   I happen to know the same place you go to work every day.

00:49:20   I've got all this data.

00:49:20   I just don't know your name or your ID.

00:49:23   Boy, it's really hard to reverse engineer

00:49:25   that anonymous data, right?

00:49:26   So what you need to do is create a system

00:49:28   that goes beyond anonymizing to really make it impossible

00:49:31   to reconfigure who that user is.

00:49:33   So who--

00:49:34   (audience applauding)

00:49:37   - So the way I have it written down here is that

00:49:44   if it works as you're describing it,

00:49:46   It means it's not just that Apple doesn't use that information to reverse the anonymity,

00:49:52   it's that mathematically you can't.

00:49:54   We can't.

00:49:55   Right.

00:49:56   The design of the system is such that it's not even possible if new executives come in

00:50:01   in a few years and maybe they would like to poke around.

00:50:05   But companies change.

00:50:07   No, no, that's absolutely true.

00:50:09   And the point of view, I mean honestly, the point of view that someone says, "Hey, I

00:50:15   know we know a ton about you, but don't worry.

00:50:19   We're nice guys and it's all good.

00:50:23   Well, okay, maybe you're nice guys 10 years from now who's running this thing."

00:50:28   Or what if someone breaks into your computers?

00:50:30   Are they nice guys?

00:50:32   So you just don't want to have any central source that has that kind of knowledge because

00:50:36   Because in the fullness of time, anything is possible.

00:50:40   And so differential privacy is, I mean, there are mathematical proofs that will show that

00:50:48   you cannot, with any confidence, determine anything about any of the people contributing

00:50:52   to the data set.

00:50:53   And we think that's important.

00:50:54   All right.

00:50:55   Speaking of companies that do collect some information about people, Google and Facebook

00:51:01   are two competitors that, and I know a lot of times when you guys talk about these companies,

00:51:05   You might talk about search engines and you might talk about social networks because you're

00:51:10   gentlemen.

00:51:11   But I will name names and I'm going to just point out that Google and Facebook are both

00:51:17   and actively pursuing a lot of the same goals.

00:51:21   I mean just the image analysis, that's a mountain, that's a horse, those companies are showing

00:51:27   similar things.

00:51:28   You guys are showing this.

00:51:31   But it really is, I don't want to abuse the metaphor, but it's a 180 degree different

00:51:36   tactic, where they're doing it with cloud servers and doing the computing in the cloud

00:51:41   on data that they've aggregated there, and your method is to do it distributed on the

00:51:49   actual devices.

00:51:52   Critics are saying, and it's not me, I'm not saying this, I'm like, let's see.

00:51:56   No, I mean, I'm totally like, okay, I saw your keynote.

00:52:00   I'm looking forward to trying it and let's see if it works for me.

00:52:04   I don't know.

00:52:05   I think it might.

00:52:08   But critics are saying, critics are already saying, and they've obviously since the keynote

00:52:12   was just yesterday, I've seen it in a couple of articles, that your strategy is doomed

00:52:18   to keep Apple behind them because the Google and Facebook way is the only way that works.

00:52:24   And I'm not quite sure where that comes from because-

00:52:27   Their PR department.

00:52:28   I mean, of a prominent search engine or social network provider that we don't know about.

00:52:40   I think part of it, in my mind, is maybe there's like an assumption on the part of some people

00:52:46   in the press that a server farm has this massive amount of computational power and that a puny

00:52:54   little phone can't compete.

00:52:57   But it's not like there's one person's iPhone who's trying to do the image analysis

00:53:01   for all the photos on iCloud.

00:53:03   Like there are a billion phones to throw at this problem.

00:53:05   Right.

00:53:06   A billion active devices.

00:53:07   So like the billion active Apple devices that are out there in the aggregate have an enormous

00:53:11   amount of CPU power.

00:53:13   That's right.

00:53:14   That's right.

00:53:15   The other thing is there's this idea that well if you don't have the data, how would

00:53:18   you ever learn?

00:53:19   Well it turns out if you want to get pictures of mountains, you don't need to get it

00:53:23   out of people's personal photo libraries.

00:53:25   Like, we found out we could find some pictures of some mountains.

00:53:30   We did some tough detective work and we found them.

00:53:40   So that's pretty good.

00:53:44   So moving on, Siri.

00:53:50   Siri now has an API and it's six categories.

00:53:55   I don't know if I wrote, I didn't write them down,

00:53:58   but it's like ride sharing.

00:53:59   - Messaging, photo search.

00:54:03   - Voice calls.

00:54:04   - Payment.

00:54:06   - Payment.

00:54:07   - We're missing one more.

00:54:08   (audience laughing)

00:54:09   - Why?

00:54:10   - We're sending money, yeah.

00:54:11   No, we did payment, all right.

00:54:13   I can say it a few different ways.

00:54:15   We can get past this.

00:54:15   - Well, there's six distinct categories.

00:54:17   - Workouts.

00:54:18   - Workouts, there we go, thank you.

00:54:20   - Yeah.

00:54:21   - This is why I should have a live audience for all my--

00:54:23   - There's crowd sourcing right here,

00:54:24   but it's totally anonymous.

00:54:24   - For all my shows.

00:54:25   And we don't know who said it, 'cause it's all--

00:54:27   (audience laughing)

00:54:30   So why restrict Siri to those six specific categories?

00:54:38   - Yeah, it comes down to modeling the domains well.

00:54:42   In order to understand what someone is saying,

00:54:46   people are gonna say, are gonna speak to Siri

00:54:48   in a whole bunch of different ways, and even in a whole bunch of different languages.

00:54:52   And when they say, when they want to say, send a message to Phil saying that I'm going

00:55:00   to be late for the interview, then we, I could have said that in dozens of other ways.

00:55:07   I could have said, we chat Phil that I'm going to be late for the interview.

00:55:10   We chat Phil using WeChat, telling him that, etc.

00:55:15   And I even could say something like, "WeChat Phil," and then I'd need to know, "Okay,

00:55:20   what do you want to say to him?"

00:55:23   And Siri knows all of this because Siri understands the domain of messaging well.

00:55:27   It understands all the vocabulary, it understands what the verbs are, what the objects are,

00:55:34   and can collect them and can do so in a dialogue.

00:55:37   And so we want to make sure that when you're talking to your assistant, that your assistant

00:55:43   consistently intelligent about understanding you and how flexible you can be in talking

00:55:48   to it.

00:55:49   And so to do that, we had to develop those domains.

00:55:51   So these are the domains that we've developed in a way that developers can plug in.

00:55:55   We'll do more and more of that over time.

00:55:58   And of course we'll search for more and more flexible ways to enable developers to do that

00:56:03   at a time.

00:56:04   But we want to make sure that what we do is preserve the intelligence of your assistant.

00:56:08   It would have been super easy for us to say, "Hey, just tell us a trigger word or the name

00:56:14   of your app and we'll hand you a string.

00:56:17   And good luck."

00:56:18   And so you'd say something to Siri and most of the time you get back the app doing something

00:56:23   crazy and the user would say, "What in the heck, Siri doesn't understand me.

00:56:26   I don't understand this."

00:56:28   And in this case, we're able to be consistent about Siri's ability to understand you.

00:56:32   And so we'll make models more and more powerful and we'll do more of them for more domains.

00:56:37   but we start with the baseline of have a quality experience

00:56:39   around what we cover.

00:56:40   - And I think this is an insight into how we,

00:56:43   it's not right or wrong, how we approach things

00:56:45   differently than some other companies do.

00:56:47   We've all been seeing stories for a while saying,

00:56:50   "Hey, Apple, some other companies are doing some assistance

00:56:53   "and they're allowing these other apps to be bots

00:56:57   "and to hand off and do things for them.

00:56:59   "You're not, you're behind."

00:57:01   Where when we have thought about doing it for a while,

00:57:04   we've thought about it since the very beginning of Siri,

00:57:07   which is we needed a solution to how do you keep Siri

00:57:10   from being smart at one thing and then stupid at another?

00:57:13   That will be an inconsistent experience in all that we want.

00:57:15   We need Siri to be equally smart at all the things we do,

00:57:18   and as it gets extended, that intelligence needs to extend,

00:57:22   and so the team has been working hard at that

00:57:24   where others shoved in quickly to do things

00:57:26   that don't translate that intelligence to third-party apps.

00:57:29   And so to do that means you have to, with intention,

00:57:32   add categories and domains.

00:57:34   The hope is to add more and more

00:57:36   so that users can ask anything they want over time

00:57:38   and use any of their apps that they love,

00:57:39   and it all works, it just takes time building domains.

00:57:42   So we'd rather take the time to do it right

00:57:44   than rush out just 'cause it gets a good story

00:57:46   to say you have something.

00:57:47   (audience applauding)

00:57:52   - One of the things I've, like in the last year or so,

00:57:57   maybe half year, but I've noticed it,

00:57:59   and I'm sorry, I bang this drum a couple times a month

00:58:02   on during Fireball is why the industry as a whole

00:58:06   doesn't seem to count iMessage as a messaging platform.

00:58:11   And the number that always gets thrown out

00:58:13   is monthly active users,

00:58:15   and WhatsApp has so many monthly active users,

00:58:17   and so they're worth so many billions of dollars.

00:58:20   iMessage has to be right up there

00:58:26   in terms of monthly active users, daily active users,

00:58:29   hourly active users, users sending iMessages

00:58:33   during the talk show.

00:58:34   Is that frustrating?

00:58:37   - I mean, it's okay.

00:58:41   - I mean, customers don't read those things.

00:58:45   It's all inside the beltway kind of like

00:58:47   who feels proud that they made a list.

00:58:49   It doesn't matter to users.

00:58:51   - Yeah, I mean, messages is the most used app on iOS period.

00:58:56   So it's used a lot.

00:58:57   And certainly we saw that every time we'd add a couple new emoji,

00:59:04   it would be like the biggest thing.

00:59:06   We'd work all year on like a new file system or something.

00:59:09   And it turned out the rest of the world outside this room was more excited about the two new emoji.

00:59:21   And so we figured, you know, if there's one place we could make a tremendous difference

00:59:27   and how people experience iOS fundamentally.

00:59:31   They're spending a lot of time in messages.

00:59:33   And so we put a ton of creative energy into it

00:59:37   and ultimately through opening up to developers,

00:59:39   I think the collective energy

00:59:41   that'll go into making messages great

00:59:42   is gonna be phenomenal.

00:59:43   - In the keynote, I was sitting like in the middle

00:59:46   of the floor, halfway back, halfway in the center,

00:59:48   just right in the middle.

00:59:49   Really, it was a great place to hear the reactions.

00:59:52   The biggest reaction I thought of the entire keynote

00:59:55   was when you announced that emoji were going to 3x.

01:00:00   I'm not exaggerating.

01:00:02   I'm not exaggerating.

01:00:03   And it was like a real visceral buzz.

01:00:06   And it's like-- and here's a crowd of people,

01:00:08   you know, developers who are more technically minded,

01:00:11   and they are here to hear about technical details.

01:00:13   And this thing that is really just, you know,

01:00:15   it's just more fun, got this really powerful reaction.

01:00:21   Well, next year we're going to 4x.

01:00:22   (audience laughing)

01:00:25   See, this is why we don't let you out.

01:00:27   (audience laughing)

01:00:30   Now we're gonna be held to that,

01:00:35   and next year when we don't,

01:00:36   we'll be like, "You said 4X!"

01:00:38   (audience laughing)

01:00:40   Apple, you're late, you're late!

01:00:42   And then eventually it'll be finally 4X!

01:00:45   (audience laughing)

01:00:47   (audience cheering)

01:00:50   (audience applauding)

01:00:53   Coming down to home strategy.

01:00:58   - There's a few competitors right now,

01:00:59   back programming, they're like, "4X, let's beat him to 4X."

01:01:02   (audience laughing)

01:01:03   - Well, it's like the onion story about the Shik's CEO says,

01:01:07   "Screw this, we're going to Five Blades."

01:01:09   (audience laughing)

01:01:11   And like three years later,

01:01:12   Shik came out with a five blade razor.

01:01:14   You can't, you can't underestimate what people will stoop to.

01:01:19   (audience laughing)

01:01:22   Any of the other iMessage stuff that,

01:01:24   I mean, 'cause clearly there's a lot of work,

01:01:26   and a lot of it's very fun.

01:01:27   A lot of it is the developer integration,

01:01:30   it really turns it into a platform.

01:01:34   It's not just a thing that people can text with now,

01:01:35   it's a thing that people in this crowd

01:01:38   can write software for.

01:01:39   Anything that stands out that maybe

01:01:41   didn't get enough love in the keynote?

01:01:42   - Well, we talked about the way in which

01:01:46   I think these apps can spread kind of

01:01:48   in a really great way, virally.

01:01:50   We didn't talk about that at all.

01:01:51   And I think that's going to be really powerful for developers

01:01:54   and is going to make it worth developers' while to put

01:01:56   some energy into them.

01:01:58   We made them really easy to create.

01:02:00   So if artists--

01:02:02   we think there'll be a community of artists that will

01:02:03   build sticker packs that are just really fun and they don't

01:02:05   need to write any code to do it.

01:02:06   So I think that's going to be really important.

01:02:08   [CHEERING]

01:02:13   Also, I think the way that they are distributed,

01:02:18   if you have, it's not just about the extension,

01:02:21   the extension can be part of your app.

01:02:24   And so there's some cases where you want a model

01:02:27   where the extension is sort of in cooperation

01:02:30   with your larger app experience.

01:02:31   I mean, one simple example would be like,

01:02:33   if you have your sports app,

01:02:36   your sports app knows what your favorite teams are,

01:02:39   well, your extension in messages

01:02:41   that let you share those clips

01:02:42   or whatever is gonna know that as well.

01:02:46   So there's a connection there.

01:02:48   We have one where something that people like to do a lot

01:02:52   is share music, especially you hear something,

01:02:54   you're like, wow, this is great,

01:02:55   I wanna tell my friend about this awesome song.

01:02:57   Well, if you go to the Apple Music extension,

01:03:01   it knows what's now playing in your music

01:03:05   and it knows what you listened to with the last few songs.

01:03:08   And so that's just one tap to share.

01:03:09   And so I think there'll be interesting integrations

01:03:12   where the message extension is sort of the tip of the iceberg

01:03:15   of an experience that you have inside your app as well.

01:03:19   All right, moving on to watchOS.

01:03:20   What you guys do year after year is make iterative

01:03:26   improvements to your software.

01:03:28   And you add features, you take what was slow and you make it

01:03:31   fast, you take what was ugly and you make it look better.

01:03:35   But the performance improvement on app launch speed on

01:03:39   - And watchOS 3 does not look like one year over a year.

01:03:44   It's crazy and I really did in the keynote

01:03:47   had a I gotta see this and then when I got hands on

01:03:51   with a watch running watchOS 3.

01:03:54   - It's for real. - It's for real.

01:03:55   It really is.

01:03:56   Anybody in the audience, have you guys upgraded?

01:03:58   Anybody? (audience applauds)

01:04:00   - It's for real.

01:04:02   - How is that possible?

01:04:03   (audience laughs)

01:04:06   - I mean a couple of things.

01:04:07   we certainly actually had some RAM to spare.

01:04:11   - Really? - Yeah.

01:04:12   Yeah, it turns out that if people are running,

01:04:16   they have their favorite 10 apps,

01:04:18   we can keep them mostly running.

01:04:21   We can keep them mostly resident.

01:04:22   We'll halt them so they're not burning CPU,

01:04:24   but we can keep them mostly resident,

01:04:26   which means you're not doing all the work

01:04:28   that goes into launching an app when you take them live.

01:04:30   But the other thing is, it turns out when we first,

01:04:35   we're coming out with WatchOS,

01:04:36   we were being really conservative about understanding how people were going to use the watch and

01:04:41   trying to make sure we could hit our goal of very solid all-day battery life so you

01:04:45   could use it all day and you could charge it at night.

01:04:47   And we found we'd actually really overshot the goal, which was an area of just massive

01:04:53   focus and paranoia throughout the release.

01:04:56   We needed to make sure that we squeezed every little bit of juice out of the thing.

01:05:00   And so realizing we had this budget, we said, "Hey, look, we actually have enough to do

01:05:05   background updates."

01:05:06   You know, we had overshot enough that we can keep these apps

01:05:08   both in memory, but also keep them up to date

01:05:12   throughout the day, so when you look at them,

01:05:14   they're already there.

01:05:15   It's not like launch and then wait,

01:05:17   have them get the information.

01:05:18   It's they already have the information.

01:05:19   And so those were two really vital techniques.

01:05:23   I think the other thing is, as you talk about,

01:05:25   you build something as new and different as the watch,

01:05:28   and until you finish and you live on it

01:05:31   and you figure out like what's really the essence

01:05:33   of this thing and appreciate which problems

01:05:35   are the most important to solve,

01:05:37   we realized that the watch is all about glanceability.

01:05:42   It's useful to the extent that like,

01:05:45   okay, I can solve my task, I'm done.

01:05:47   If I'm up here and I'm waiting and I'm fiddling around,

01:05:50   my arm's getting tired, this is no fun anymore,

01:05:52   I'm gonna do it a different way.

01:05:54   And with that as our obsession for the last year,

01:05:57   we've taken all of those tasks and we said,

01:05:59   you have to be able to finish the task,

01:06:01   end to end, two seconds, right?

01:06:03   And that meant the launch better be the instant part

01:06:06   because now we need to let the user think

01:06:08   and do something in two seconds and get it done.

01:06:10   And with that focus, you find a way

01:06:12   and chipped away at it.

01:06:14   - What really strikes me once I got to hands-on with it

01:06:16   and I could really see it is just how much

01:06:19   the design changes to the navigation of the user experience

01:06:23   are exactly coinciding with the engineering improvements

01:06:28   to make it faster.

01:06:29   So the fact that glances are no longer a separate thing

01:06:33   is because the apps themselves in the dock

01:06:36   can serve as glances

01:06:37   because they're getting the background updates,

01:06:39   because you made the changes

01:06:40   that make them stay resident in memory.

01:06:43   - Yeah, it's nice when it all comes together.

01:06:45   - Really?

01:06:46   (audience laughs)

01:06:47   - Yeah, absolutely.

01:06:48   - The other thing I'll add

01:06:49   that once you start to use the new watchOS,

01:06:53   in addition to having the apps come across faster

01:06:56   and you can get access to them quickly,

01:06:57   Your watch faces, in a sense, become sort of apps in themself

01:07:01   in the sense that you change the ones you use

01:07:04   and you rearrange them and change the complications.

01:07:06   For example, I would normally keep the activity rings

01:07:10   on my watch face, but now I can choose to make that the next one

01:07:13   and I just swipe over to them and swipe back

01:07:15   because I use the activity watch face versus needing the rings.

01:07:19   And then I can have a different watch face

01:07:21   for some other time of the day when I need some other actions

01:07:23   and access to apps.

01:07:25   So that becomes a much quicker and more useful way

01:07:28   to expand the things you do with it.

01:07:29   It's really profound changes through the interaction model.

01:07:33   - Yeah, and really different complications too.

01:07:34   So if you're gonna be in more of your workout mode,

01:07:39   you would swipe over and the complications

01:07:41   that are relevant to that, and therefore the launchers,

01:07:43   essentially for that, are right there.

01:07:45   So you kinda go, here's what, you know, I'm at work,

01:07:47   I'm gonna be this way, I'm out with the family,

01:07:50   I'm gonna go this way, and you have all the different

01:07:52   activities that are relevant to that.

01:07:53   It's like you've got almost a custom dock

01:07:55   or custom launcher based on your watch space.

01:07:57   So that's another element where I feel like

01:07:59   it's really come together in a nice way.

01:08:01   Yeah, the team has done a really great job.

01:08:03   (audience applauding)

01:08:05   - So, just wrapping up, coming down to home touch, Swift.

01:08:09   Now you were on my show a few months ago

01:08:10   when Swift went open source.

01:08:12   It was very nice, we had a good time.

01:08:13   - Lot of dynamism.

01:08:16   (audience laughing)

01:08:18   - And we talked about Swift use within Apple

01:08:21   and why you guys can't yet write the OS in your apps

01:08:26   in Swift, but that you're using it,

01:08:27   engineers are using it to write unit tests

01:08:29   and stuff like that and it's getting used.

01:08:30   But I saw in the announcement that this new

01:08:32   Swift Playground app is itself written in Swift.

01:08:34   - Yeah, well actually in OS X, like most of the dock

01:08:39   and most of mission control, yeah.

01:08:42   Well, oh God.

01:08:44   (audience laughing and applauding)

01:08:47   - Another doll.

01:08:47   (audience laughing)

01:08:50   - In our Sunday rehearsals--

01:08:54   - When was that name first hinted at?

01:08:56   (laughing)

01:08:59   - I don't know.

01:09:00   - Last year. - Right here.

01:09:01   - I thought I was being so transparent too.

01:09:05   (laughing)

01:09:06   - I saw right through it.

01:09:07   - I know.

01:09:09   You were very polite.

01:09:10   - In our run through for the show,

01:09:13   when I say, oh, we're changing the name to Mac OS,

01:09:17   and this is like on Sunday,

01:09:19   and my next slide is to say something about how

01:09:22   we have these great new features in macOS.

01:09:24   And I literally go, and so our new release is macOS.

01:09:26   And so we have some great features in OS X.

01:09:28   (audience laughing)

01:09:30   It's tough.

01:09:31   Oh, we spent a lot, 15 years.

01:09:33   It's a long time, but I think we all feel great

01:09:35   about the new name.

01:09:36   And anyway, in macOS, the dock is substantially converted.

01:09:41   So we're, in mission control,

01:09:44   all those areas are using Swift a lot.

01:09:46   So it's starting to spread a lot internally. There are some barriers,

01:09:50   but I think this year the most important thing,

01:09:52   and I think Chris Latner really covered it in the state of the union is getting

01:09:56   to source stability.

01:09:58   And so we decided this year,

01:10:01   like we're going to put that over all the priorities,

01:10:05   take what we've learned. You know, when we first shipped Swift,

01:10:08   a couple of years ago, the objective was,

01:10:10   let's make sure that it's familiar from an API point of view, you know,

01:10:14   minimize the kind of transition of,

01:10:16   I gotta learn all new method names

01:10:18   for all the classes I already know.

01:10:20   And so we really bias toward that.

01:10:21   Now people are so familiar with Swift,

01:10:24   the priority is let's make sure those APIs

01:10:26   are all very native to Swift in their field.

01:10:29   And so we've done all the hard work

01:10:32   to update all the APIs, all the naming conventions,

01:10:35   and take some major APIs like Core Graphics and LibDispatch

01:10:38   and make them just awesome for Swift.

01:10:40   And so that was, yeah, this is important stuff.

01:10:42   (audience applauding)

01:10:44   But what that means is we've achieved that level of source stability.

01:10:49   So next year it won't be like, Oh boy, you know, as a developer.

01:10:54   So that's, that's the important thing. ABI stability,

01:10:57   which means literally that the Swift binary you built could be linked against

01:11:01   the future libraries. That's one that we made a lot of progress,

01:11:04   haven't gotten all the way there, but that's far less,

01:11:06   that's far more of an issue for us internally than it is for developers.

01:11:10   It's important for developers, but much,

01:11:13   but I think the source stability one was the right priority

01:11:15   and I feel really good about the progress

01:11:16   that the team made on that.

01:11:18   - Last question.

01:11:20   How about one thing that you guys announced yesterday,

01:11:23   whether it was in the keynote or not,

01:11:24   maybe something that missed the keynote,

01:11:25   but one thing that you think

01:11:28   deserves a little extra attention.

01:11:29   And I'll let you guys think about it.

01:11:30   I will go first, and your correct answer

01:11:33   is probably new file system.

01:11:34   - Is that right?

01:11:35   (audience cheering)

01:11:37   - I'm gonna say universal clipboard

01:11:40   because I've always wanted this,

01:11:42   And for me, it's links.

01:11:44   It's like I'm on my phone, and it's like, oh,

01:11:46   I want to post this during Fireball.

01:11:47   But I'm in my office, so why would I do it on a phone?

01:11:50   I'll go sit down at my iMac and do it with the real keyboard.

01:11:54   But how do I get this from here to there?

01:11:56   And man, what I want to do is just copy it

01:11:59   and go over there and hit Command-V.

01:12:00   And again, the thinking through that you guys

01:12:05   did of how to do this in a way that

01:12:08   isn't going to surprise people in a bad way--

01:12:11   There's like a two minute time out.

01:12:12   - Yep.

01:12:13   - So like if I copy something on my phone right now

01:12:17   and tomorrow I paste it my Mac, I'm not getting that.

01:12:21   - That's right.

01:12:21   - Because it's really like what you're,

01:12:23   ways of detecting what's in it.

01:12:25   - Well even the communication is,

01:12:27   like the other continuity features, is peer to peer.

01:12:30   So it's not like you're sending everything you copy

01:12:32   up to the cloud all of a sudden

01:12:33   just so that it can get down to the other device.

01:12:35   It really is about, you know, kind of two,

01:12:37   did it here, copy, paste,

01:12:39   which I think is absolutely what people want,

01:12:41   and it has the right privacy and performance characteristics.

01:12:46   And as you say, it gets rid of the surprises.

01:12:50   And it just turns out to be the most, once you have it,

01:12:51   it's the most natural way in the world

01:12:53   to do these kinds of things.

01:12:54   So I think the team did awesome work there.

01:12:57   I think that's great.

01:12:58   Do I have to say new file system again?

01:13:00   (audience laughing)

01:13:01   No, I mean, I think the new file system is great.

01:13:04   And by the way, I mean, the prospect of,

01:13:08   This is when you have to get right, let's say.

01:13:11   (audience laughing)

01:13:13   And so we have an awesome file system team

01:13:18   who really knew which problems we needed to solve

01:13:22   for a world of flash storage

01:13:25   and has done a super solid job.

01:13:29   And we're being conservative about how we're rolling it out

01:13:32   as a developer preview so people can kick the tires

01:13:35   on it this year.

01:13:36   But we look forward to making it part

01:13:38   the products going forward and I mean I think it's gonna be be great and

01:13:42   obviously we didn't we didn't talk about it because we don't talk about peer

01:13:44   developer preview material there but I think in terms of something that's

01:13:47   important for the platform going forward it's it's big. What do you so let's just

01:13:50   say three years from now we're all using iPhones that are using APFS instead of

01:13:57   HFS plus what would be like a noticeable improvement to the to the experience? So

01:14:03   so it'll help with performance it'll help with things like how we do software

01:14:07   updates and other things because we can snapshot volumes, we can roll things back.

01:14:11   I mean there are a lot of important attributes there.

01:14:14   It's important when you think about multi-user, like how files are protected between multiple

01:14:20   users on a Mac because we actually have file system level encryption now standard across

01:14:26   both platforms.

01:14:28   And so I think from a security point of view it's big.

01:14:34   And I think performance, I mean now you do a copy or even like the safe save operation.

01:14:40   When you save documents in a lot of apps, it's like move that one aside, create another

01:14:44   whole copy of all of that, now overwrite some of it, now delete the old directory.

01:14:51   Now that's atomic and the clone file makes all of that super fast.

01:14:54   So I think it's just going to be great across the board.

01:14:58   I want to answer in a very different direction.

01:15:02   Of the keynote, the thing that we haven't talked about that to me

01:15:06   was really amazing was we had a bunch of demo-ers who had never

01:15:11   been in a keynote before.

01:15:13   It was their first time.

01:15:14   [APPLAUSE]

01:15:15   And they were fantastic.

01:15:19   Stacy did a great job.

01:15:22   Bethany and Emron did a great job.

01:15:24   Boaz did an incredible job.

01:15:27   And Cheryl, I wasn't gonna forget,

01:15:30   and Cheryl did an incredible job.

01:15:32   And all of them work on the things they demo,

01:15:35   they're just, and they were fantastic.

01:15:38   So that's my sort of unsung thing of the keynote,

01:15:42   was those presenters.

01:15:43   - I said mid keynote, I was sitting with Ben Thompson,

01:15:45   and I said, "I can't believe that none of these people

01:15:47   "have ever done this before, because they're amazing."

01:15:51   And they really did kick ass up there.

01:15:53   That was great. - They sure did.

01:15:55   That's it unless you guys have anything else for me.

01:15:57   (laughing)

01:15:59   - Just thank you for having us.

01:16:00   - I wanna give some thanks here.

01:16:01   I wanna thank our sponsors, MailChimp, Microsoft,

01:16:06   and mad.com, M-E-H.com.

01:16:09   Go there and buy some junk.

01:16:11   (laughing)

01:16:12   I wanna thank Jake Schumacher and Jed Hurt.

01:16:17   They're doing the video here,

01:16:18   so if you're watching at home, you can thank them.

01:16:21   (applauding)

01:16:23   They are the co-makers of the upcoming documentary

01:16:27   App The Human Story, which has been in the works for a while.

01:16:31   I've seen a rough cut.

01:16:32   It is amazing.

01:16:33   It is really coming along.

01:16:35   Appdocumentary.com if you want to see more.

01:16:38   Drew Bischoff from Hybrid Events is here

01:16:41   running whatever apparatus is involved

01:16:43   in doing the live streaming, which I've heard is very hard.

01:16:46   [LAUGHTER]

01:16:49   I want to thank Mezzanine and the entire staff here,

01:16:52   who have been, they're led by Megan Rogerson.

01:16:57   She's great, she's been here all four years

01:16:59   that I've been here.

01:17:00   The staff is great, the bartenders are great,

01:17:03   security guy, I mean, this is a really great place

01:17:05   and I really appreciate it.

01:17:06   I want to thank Paul Kefasis and my wife, Amy Gruber,

01:17:12   of Just The Tip fame.

01:17:17   They're a podcast that is on, I don't know,

01:17:19   some kind of hiatus.

01:17:22   But they're the ones who made this event run so that I can just sit back here and be nervous

01:17:28   and make these cards with questions and not pay attention to any of the details.

01:17:32   I don't know anything that's gone on out here.

01:17:35   The fact that you guys even have seats is thanks to them.

01:17:40   And I want to thank Phil and Craig for being here.

01:17:44   Thank you.

01:17:45   Unbelievable.

01:17:46   Thank you.

01:17:47   (audience cheers)

01:17:49   Last but not least, thank you for being here.

01:17:53   (audience applauds)

01:17:56   (audience applauding)

01:17:59   (audience applauding)

01:18:03   [ Applause ]