Apple – September Event 2016

Good morning. Good morning. Good morning. Thank you so much for joining us. Welcome to our Town Hall on the Infinite Loop Campus. Normally, we don't spend a lot of time looking back, but yes, we are about to celebrate Apple's 40th birthday on April 1st. That video lists some of the amazing products and epic moments in our history and reminds us just how many times Apple has changed the world. Recently, we passed a major milestone that no one could have ever imagined. There are now more than 1 billion Apple devices in use around the world. This is an incredible milestone for us and an indicator of how much impact Apple has on people around the world. Our products are such an important part of people's daily lives. And with that comes a significant responsibility. So before we get started today, I'd like to address something that I know is on the minds of many people this morning. We built the iPhone for you, our customers, and we know that it is a deeply personal device. For many of us, the iPhone is an extension of ourselves. About a month ago, we asked Americans across the country to join in a conversation. We need to decide as a nation how much power the government should have over our data and over our privacy. I've been humbled and deeply grateful for the outpouring of support that we've received from Americans across the country from all walks of life. We did not expect to be in this position at odds with our own government, but we believe strongly that we have a responsibility to help you protect your data and protect your privacy. We owe it to our customers and we owe it to our country. This is an issue that impacts all of us, and we will not shrink from this responsibility. Thank you. OK, so let's get back to why you're here this morning. Because so many people use our products every day, we understand that we have an opportunity and a responsibility to impact things for the better. So we want to get started this morning by talking about two initiatives where we are working hard to leave the world better than we found it. We'd like to start with the environment and I'd like to invite Lisa Jackson up to tell you what we're doing to preserve and protect the environment. Lisa.

Thank you. Thanks so much. Well, you know, just like everything we do at Apple, when we think about the environment, we think about innovation. You see, we want to change the world for the better and we think there's no greater challenge in the world than our changing climate. Now, the solution is energy efficiency and renewable energy, and the time for action is right now. So two years ago, we told you about our ambitious goal, one that we hope others will adopt. We told you that our goal was to be 100% renewable in 100% of our operations worldwide. That's all of our offices, all of our retail stores and every single one of our data centers. So two years later, how are we doing? Well, currently, 93% of our facilities worldwide run on renewable energy. And just last year, we reached our goal of using 100% renewable power to power our operations in the United States, as well as our offices and stores in China. In fact, we're now 100% renewable in 23 countries around the world. Now, in some places we're able to purchase renewable energy right from the grid, from existing sources, but that's not always possible, which has led us to some pretty innovative solutions. In Sichuan Province, China, we found a way to build a 40-megawatt solar farm without disturbing the local population. The innovation is in building a system that allows for electricity generation and hay production for the local yak ranchers. That solar project is producing more than enough electricity to power our 34 retail stores and our 19 offices in the country. That makes our facilities there carbon-neutral. In Singapore, where there's not enough room to put solar panels on the ground, we looked up. Solar arrays on more than 800 rooftops will cover the electricity use of our offices and our future stores. We're really proud to be 100% renewable in Singapore. We're also really proud of the fact that 100% of our data centers are powered by clean sources of energy like the sun, wind and water. Now, think for a second about what that means. It means every time you send an iMessage or make a FaceTime video call or ask Siri a question, you can feel really good about reducing your impact on the environment. Now, let's talk about another way that we're reducing our impact on the environment and that's by protecting forests that produce the paper we use especially for our packaging. You see, we believe that paper like energy can be a renewable resource. So we're proud to announce that today 99% of our packaging comes from paper that is recycled or is coming from sustainably managed forests. This is especially important as we continue our move to all paper packaging but we're not stopping there. Through our partnership with The Conversation Fund, we've permanently preserved over 36,000 acres of working forests in Maine, in North Carolina and we're partnering with World Wildlife Fund to improve the management of up to 1 million acres in China. You see, our goal is to add to the world's supply of responsibly sourced paper rather than take from it. Now, while we're focused on conservation, let me tell you about another way we're working to preserve our planet's resources, and that's through reuse and recycling. You see, we worked really hard to make sure our products don't end up in places like this, and we think the best way to do that is to have them be reused. That's why we design our products to last, and we're happy to say that thanks to their durability, the vast majority of iPhones that we get back end up being reused, including the phones we get back from our iPhone upgrade and trade up programs. But at some point, even our products need to be recycled. Many recycling systems today waste much of the materials they collect, so it can't be reused. We think it's time for a new approach. We put an incredible amount of energy into designing the best products in the world and we put that same kind of energy into thinking about what happens when they can no longer be used. Let me introduce you to a pretty cool R&D project, we call him Liam.

The iPhone is the result of years of innovation, but true innovation means considering what happens to a product at every stage of its life cycle. Meet Liam. When it's time, Liam deconstructs your iPhone. Parts are detected and removed and separated, so the materials inside those parts can be repurposed. To rescue cobalt and lithium from the battery, separate the gold and copper in the camera, extract silver and platinum from the main logic board, so the materials in your iPhone can live on. Because in a world with limited resources, some things can't be replaced.

He is pretty cool, right? There's no other machine in the world that can do what Liam can do, and it was conceived and designed by Apple engineers right here in California. The things we've learned from this project will help us make even bigger strides in the area of reuse and recycling as we go forward. As you saw on the video, Liam separates the iPhone into its components. This allows us to recover the materials, high quality materials, and reintroduce them into the global supply, and that saves natural resources. So that tungsten from the iPhone alert module can be used to make a precision cutting tool, and the silver from the motherboard can be used in a solar panel. Now, ultimately, our goal is to create breakthroughs that allow us to use those high quality materials in our own products because reuse and recycling is so important, and that's where you can come in. With Apple Renew, you can recycle your devices easily and quickly in a way that's safe for your data and safe for the planet. All you have to do is take them into an Apple retail store or send them to us for free by visiting apple.com/recycling to print a prepaid mailing label. We're making great progress in our environmental efforts but we have a lot more to do and we promise to keep you updated along the way. Now back to Tim. Thanks.

Thank you, Lisa. Powering Apple on 100% renewable energy, it is an incredible, ambitious and bold objective but we are determined to meet it and we hope others will join us. The second initiative we'd like to talk about this morning is health. With the launch of ResearchKit last year, we've seen that Apple technology can have a positive impact on people's health. And to tell us about some progress in this area, I'd like to invite Jeff Williams. Jeff.

Last year, we introduced ResearchKit and our goal was to use technology to solve some of the biggest problems facing medical research. We wanted to make it easier for people to participate in research studies. And we wanted to make it easier to gather accurate and frequent data from the devices we're all already carrying in our hands. So what happened? Virtually overnight, the research studies that we launched became some of the largest in history with tens of thousands of people signing up. Like in this Parkinson's study which became the largest Parkinson's study in history in less than 24 hours. Studies broke geographical boundaries. Traditionally, studies are centered around the research institution but with ResearchKit, anyone, anywhere can participate. Mount Sinai's Asthma app actually discovered asthma triggers from all 50 states. But more important than any of that, researchers are gaining insights that just weren't possible before. Take diabetes. You and I know diabetes as type 1 and type 2 but Mass General's study of type 2 diabetes found that some people respond completely differently to therapies than others, supporting the theory that there are actually subtypes of type 2 diabetes, helping pave the way for precision medicine for the future. Some of the world's most respected institutions have released ResearchKit studies covering a wide range of diseases and conditions that affect billions of people around the world. ResearchKit is opening up all kinds of possibilities and I'd like to show you a video to tell you more about it.

ResearchKit was created with the goal of improving medical research. A year later, we're seeing app developers, doctors, and even patients take these ideas and make them more powerful than we could have ever dreamed.

We can detect autism as early as 18 months old but the median age that a child in the US is diagnosed with autism is five years old, so we need a radical new solution.

If autism is diagnosed early, it can have significant benefits for the child. The point of Autism and Beyond is to help engage parents in a ResearchKit study but more importantly is to eventually develop a tool that they can use at home with their child to screen for autism.

We show the child videos and we use the front-facing camera to record the child's reaction to these videos, and then we have algorithms that then can tell us about the child's emotions and other behaviors. So we have a chance to understand child development in a completely new way.

When you have large numbers of people participating in a research, their insights into the condition increase exponentially. With ResearchKit, we're getting day by day assessments on how people are doing.

Parkinson's, it's a disease that slows you down and exercise will make you feel better, that's what I've come to learn. What I'm trying to do lately is to use the app before I exercise, and then afterward to see how exercise might forestall progression of it because it's not curable at the moment.

Now with the mPower app, we're getting information that can be used to personalize the care that patients receive.

If we could bring research and care together and really bridge that gap, we can help people live healthier and happier lives.

I had my first epileptic seizure when I was three and a half. I always have that fear first of all in the back of my mind. Am I going to have a seizure while I'm driving? What if I'm at work or I'm by myself? How am I going to handle that situation?

The EpiWatch app is the first research app to use the Apple Watch. So those sensors can be used to collect physiologic data during seizures and we're using that data to try to develop a seizure detector.

The research that they are doing is exciting because they're trying to find a predictor. Having that would be amazing because I would know, hey, this is going to happen. You have plenty of time to get to safety. It's like, OK, I got this.

This is no longer just about research. People are using apps to learn about themselves in a way that they couldn't before to create a better life for themselves in terms of their own health.

ResearchKit has clearly transformed research. More importantly, it laid the foundation to transform care.

What's really amazing about an iPhone is you have it in your pocket. You don't need any special equipment. Here is the phone. We can do this science. We can do this medicine with a phone.

You know, when we introduced ResearchKit, our goal was simply to improve medical research, and we thought our work was largely done. But what you probably saw in the film and what became clear to us later is the very same tools we used to advance medical research can also be used to help people with their care. Let me give you an example. In the Parkinson's study, patients do a test several times with their iPhone like that simple tap test you saw on the video to assess their symptom levels. And researchers can see the symptom level across a range of days. And they can see this before and after medication. And there were lots of patients like patient A where you can see that symptom levels improve post medication. In other words, the medicine is working. But there were also a lot of patients like patient B where post medication, there's no improvement at all. Their symptom levels didn't change. In other words, the medicine is not working. The patient either needs a different dose or a different medication or maybe no medication at all, but today neither the individual nor the caregiver has this information, and we think empowering people with data about their health is incredibly important. So today we're launching CareKit. CareKit is a framework to build apps that empower people to take a more active role in their care, and the very first CareKit app being released today is for Parkinson's. And it surfaces some of that valuable information we discussed, so people can start understanding better what affects their health. And these six leading institutions will begin using this app with their Parkinson's patients immediately, so they can have a more informed discussion about individualized treatments. Let me give you another example. Surgery. One of the things physicians tell us is one of the most important things affecting outcome of surgery is actually what you do during the recovery process. Yet, we go from being monitored by a team of highly trained specialists using leading edge technology to being discharged with this, a single sheet of paper. This is actually what happens pretty much across the country. This is your list of things to do, things not to do, which days you're supposed to do them on. And adherence to this is notoriously very poor. So, using the CareKit modules, we've been working with Texas Medical Center and they've created an app for the phone that got you through this critical process in a completely different way. It's got a care card which is your list of things to do every day in checklist form, and as you fill them out, the little heart fills up, it's really nice. It's got a symptom and measurement tracker where you can record information on your progress. You can record things like your temperature to monitor for an infection or you can use the accelerometer on the iPhone to study the range of motion. And then you can share this information with your loved ones who can help support you through this recovery process. And best of all, you can share this information with your physician who will take the results of how you're doing and they will dynamically update your care plan, so it changes on the fly, something just not possible with a sheet of paper. Those are just two examples of CareKit apps. There are others coming and we think the possibilities here are limitless. Now, a word about privacy, nothing is more sensitive than your health data. You decide which apps you use and with whom you share this information. CareKit like ResearchKit will be open source and it will be available in April. We have been absolutely humbled and inspired by the response to ResearchKit and we can't wait to see what great apps get created with CareKit. Thank you. Back to Tim.

Thank you. It's amazing that in such a short period of time that ResearchKit has had a profound impact on the broad area of medical research, and our hope is that CareKit can have the same kind of impact on helping individuals manage their care. So you've seen the latest important work we have going on the environment and in the health area, now I'd like to talk about products and I'll get started with the Apple Watch. Since we launched it less than a year ago, the Apple Watch has become the top selling smart watch in the world. But most importantly to us, customers love it. They found that it's not just useful but it's become an essential part of their daily lives. They love being able to receive and respond to messages directly from the wrist, as well as track their activity, manage their calendar, navigate with maps, and get up-to-the-minute information on sports scores and news headlines and more. People also love changing the bands and how it gives the watch an entirely new look, one that's appropriate for any purpose or occasion or season. About a third of our Apple Watch wearers regularly change their bands. Today, we're introducing some brand new colors and a new band that's made from a whole different material. Our new woven nylon band. Our new woven nylon band features a unique four-layer construction. It comes in a variety of vibrant colors. We think it's going to be incredibly popular. Also, there's new sport and leather bands in all new colors, and there's a stunning Space Black Milanese loop that is absolutely beautiful. We're really excited about this new spring lineup and we want even more people to be able to enjoy Apple Watch and what it can do for them. So beginning today, Apple Watch will start at just $299. That's our update on Apple Watch. Now, I'd like to talk about Apple TV, bringing all new capabilities to the biggest screen in your house. People are absolutely loving the new Apple TV with the App Store and the innovative Siri Remote. After the introduction of the new Apple TV last quarter, we had the largest sales ever for Apple TV. Now, apps are the future of television and this transition is well under way. In just a short period of time since the Apple TV has been shipping, we have 5,000 apps on the App Store. There's amazing content apps to enjoy all over the world. Like this one from HBO, HBO Now, where you can watch the latest HBO shows whenever you want, wherever you want. Shows like "Game of Thrones" and "Veep" and of course "Silicon Valley". And NCAA March Madness Live just in time, where you can watch two live tournament games simultaneously, this is exclusive to Apple TV, and you can also monitor the scores of the other games and quickly change between the action. And of course, there's a whole bunch of games to pick from like this one from AG Drive. Now, in addition to great video content and great games, there's a wide variety of other apps on the App Store. Like Solar Walk 2, which turns your living room into a planetarium, and BrainPOP which is a great educational app for kids, and GrubHub which you can order your favorite food and get it delivered right to your home. This is very key for me. And Cody, you can choose from the internet's best workouts, there's some great ones. This is just a small sample of what's available on Apple TV and much more is coming. Now, of course, tvOS powers the Apple TV. And at the heart of the Apple TV experience is Siri. With Siri, you can just ask for something great to watch. Like show me movies with Kevin Hart. And there it is. Pick your favorite. In looking for a movie or a TV show, Siri searches the popular apps so you don't have to. We've added some great content apps for Siri to search, we've got more coming, and we'll keep adding more over time. Now, we've got some other great features coming to Apple TV like folders. Now, you can organize your apps on your home screen just like you want to. And dictation. So you can now use your voice to enter text on the screen. This includes usernames and passwords. You're really going to love it. Plus Siri for the App Store. So you can ask for any app that you want or any type of app that you want. And now, you can access your entire iCloud Photo Library including live photos right on your big screen. All of this is available. It's a free update beginning today. That's Apple TV. Now, I'd like to talk about iPhone. iPhone is the most loved smartphone in the world. And today, we're welcoming a new member to the iPhone family. And to tell you all about it, I'd like to invite up Greg Joswiak. Greg?

I love the Apple Renew program but Liam really tears me apart.

Thank you. It's a great update to iOS. I don't know about you but I'm looking forward to sleeping better and I'm incredibly excited about iPhone SE. Many, many customers have asked for this and I think they're really going to love it. Next up is iPad. We believe that iPad is the perfect expression of the future of personal computing. We took a giant step in this direction last fall with the introduction of the 12.9-inch iPad Pro, and since then many people are telling us that the iPad Pro has become their primary computing device. We've got some exciting news for you today. And to tell you all about it, I'd like to invite up Phil Schiller. Phil?

Thank you. Good morning, everyone. I couldn't be more excited to be the one to be able to tell you all about iPad. Customers really have fallen in love with the new iPad Pro in the six months that it's been on the market. They're in love with the huge 12.9-inch Retina display, all its performance, all the capabilities, the speaker system, and the Apple Pencil. That is a true revolutionary breakthrough. We're hearing so much from customers around the world, customers like John Lasseter, Chief Creative Officer of Pixar and Disney Animation Studios. John had this to say, "The iPad Pro and the Apple Pencil are the closest we've ever been able to get in the digital world to actually drawing on paper." Or Stephen Gates, Head of Design at Citi. "At Citi, iPad Pro is truly transforming how we work. Our design team has incorporated iPad Pro into their daily workflow, allowing them to create, collaborate and share ideas in new ways." And Alex Valdman, Head of Design at Rapha. "iPad Pro goes with me everywhere. For everything I do, including designing the latest cycling collection, it has not only replaced my laptop but my paper notebook as well." People love iPad Pro. It is a revolutionary device. And so, that's why, today, we're so excited to introduce to you, for the first time, the second member of the iPad Pro family. An entirely new iPad Pro based around a 9.7-inch Retina display. And it weighs less than one pound. It is an iPad Pro through and through. But why make a second iPad Pro that's smaller? Well, there are two really great reasons. First, we started iPad with a 9.7-inch display for a very good reason, it's a large enough display to get all of your work done, but small and light enough to carry with you everywhere you go. People have loved the size. And from the beginning, it has remained our most popular iPad size. In fact, I'm really happy to tell you that to date, we've sold over 200 million iPads with a 9.7-inch display. So, for all of these customers, when they learn about the features of iPad Pro, they'll all see that it is their ultimate upgrade. There's a second group of people that we would love to reach with this new iPad Pro, Windows users. You may not know this. But the majority of people who come to an iPad Pro are coming from a Windows PC, a desktop or a notebook. Now, of course, we all know, Windows PCs were originally conceived of before there was an internet, before there was social media, before there were app stores. And this is an amazing statistic. There are over 600 million PCs in use today that are over five years old. This is really sad. It really is. These people could really, really benefit from an iPad Pro. And when they see the features and performance and capabilities of a product like the iPad Pro designed for a modern and digital lifestyle, well, many of them will find that it's their ultimate PC replacement. Best of all, they can get access to all those incredible apps in the App Store. And we're so happy to tell you, there are now over one million apps in the App Store designed for iPad. And they work beautifully on iPad Pro. So let me tell you a lot more about this brand new iPad Pro. First, it has a pro display. It starts with the same materials used in the 12.9-inch iPad Pro, an oxide TFT display driven by a custom Apple timing controller. The custom controller has a variable refresh rate. So it runs really fast but power efficient. We use our photo alignment technology to line the individual crystals so that it has incredible contrast ratio and sharp text. But there's so much more to this display. It is 40% less reflective than an iPad Air 2. At just 1.8% reflectivity, it is the lowest reflectivity of any tablet. And if you're a pro working, you really appreciate that low reflectivity. And it's brighter too, 25% brighter than an iPad Air 2. It puts out 500 nits of light. It makes it the brightest tablet available. And there's a very wide color gamut. It uses the digital cinema's spec, DCI P3, which gives it a 25% greater color saturation than iPad Air 2. In so many ways, this is the best display we've ever built for an iPad. In addition, it supports two really breakthrough features. The first, you've heard about from Jos. It works with Night Shift. So as the sun goes down, the brightness dims a bit, the blue light wavelengths get reduced. And some people find that it makes it easier to get to sleep. But the second feature is a breakthrough that's never appeared on any device before. It's incredibly innovative. We call that a True Tone display. A True Tone display measures the color temperature of ambient light and adjusts the display to match. I heard an "oh" out there. Somebody already gets this. This is great. It has two new four-channel ambient light sensors that measure both brightness and color temperature. So how does that work? Let's start with a piece of paper. A piece of paper reflects light. So when you use it in different environments, it reflects the color temperature of the light in that environment. Our optic nerves were designed to be comfortable with this experience. If you go into the warm incandescent light of your home, the paper takes on a warm tone. But now you use a digital device. Digital devices emit light. And that light has the same color temperature no matter where it is. So the color cast isn't right. It doesn't match paper white. Well, except now if it's a True Tone display, it does. No matter where you use it, it automatically senses the color temperature of the light and becomes warmer or cooler and matches paper white and it's really natural to use. Once you use a display with this True Tone technology, you never want to go back to old technology again. It is quite a breakthrough. Next, it has a pro audio system. It's four speakers working in a stereo system to adjust automatically the frequencies between highs and lows depending on how you hold it. It also puts out twice the audio volume of an iPad Air 2. But best of all, this has an incredible level of performance unlike any other mobile device. It has our fastest chip ever, an A9X. This is a third generation 64-bit chip with over 3 billion transistors. It's made with a 3D FinFET architecture. If you don't know what that is, it is unbelievably state of the art and people are noticing. TechRadar wrote, "iPad Pro packs powerful enough hardware to be a genuine laptop replacement, with more than enough grunt in terms of processor and graphics performance." And it has a ton of grunt. Twelve cores of graphics delivering over half a teraflop of graphics power. That's more than an Xbox 360 in a device that you hold in the palm of your hands. It's incredible for gaming. It's also incredible for professional applications, modeling, rendering, just fly on the new iPad Pro. And it's absolutely enough performance for the great iOS 9 features from multitasking where you can have apps side by side and video streaming, and picture in picture. It is an incredibly powerful chip. It also, as Jos told you, includes our embedded M9 motion coprocessor. With that, apps that use our built-in sensors are instantly calibrated and up and running quickly. It also supports "Hey Siri". I said it that way because I know it also sets off people's phones when I do it. This means you can talk to your iPad and you can ask it to open your mail and check for new messages. You can talk to your iPad and ask it to go to a website or look up a contact and it can do it all automatically for you. And the iPad Pro supports a great line of pro accessories. There's a smart keyboard designed specifically for the size of that 9.7-inch Retina display. As you put your iPad on, it just automatically starts to work and the software adjusts. For example, my favorite feature, Command-Tab, I can switch between my multitasking applications just like on my desktop Mac. And it supports the greatest accessory Apple has ever made, the Pencil. This is an amazing device. It's a breakthrough and people are really falling in love with it. Christopher Phin of Creative Bloq wrote, "Let me be completely clear, this is the best digital drawing tool there has ever been." We couldn't agree more. It is an amazingly precise drawing tool. It senses pressure. There's also a tilt angle for amazing drawing. And you can draw just like you do on paper by putting your hands on the iPad because of its built-in palm rejection software. And it recognizes the pencil as well as your fingertips. So you can use both simultaneously to advance techniques for your drawings, your illustrations. People love drawing and doing illustrations on it. They also like taking notes on it. It's an incredible device. There are other pro accessories as well. A great new line of Lightning adapters, for example, a new Lightning SD card reader that's incredibly fast and this is a really powerful accessory, a USB card reader. Sure, it lets you plug in your camera which many of us do but because it's powered you can use a lot of powered USB devices. For example, you can plug in an Ethernet adapter to get on your corporate network. And for those of you who are podcasters, you're likely to plug in a microphone and do your podcast right from an iPad Pro. Customers love taking photos with their iPads as well. Certainly photos for personal use but more importantly they can use the camera for work as well. You can use the camera in augmented reality apps. You can use it to scan documents. You can use it to see constellations in the night sky. There are so many great uses for that camera. And in the new iPad Pro, we've put our most advanced camera yet. It's a 12-megapixel iSight camera with Focus Pixels, True Tone flash, that amazing image signal processor built into the A9X allows you to take pictures quickly with amazing color and low noise, huge panoramas and beautiful live photos. And you can shoot 4K video with it. So right on your iPad Pro, you shoot 4K video, you can edit multiple streams right there on the device. There's a 5-megapixel FaceTime HD camera which is wonderful for doing video conference calls. And again, the whole display is Retina Flash so you can take great selfies with you and your friends as well. There are so many new features and innovations packed into this iPad Pro. Hopefully you see what we do. This is the best upgrade ever for every iPad owner. And it is the ultimate PC replacement for all those old PCs in the world. Like everything we do, the team works hard to make it environmentally friendly, mercury-free, LED-backlit display, arsenic-free display glass, BFR-free, Beryllium-free, PVC-free and highly recyclable glass and aluminum. The iPad Pro comes in four metal finishes, silver, gold, space gray, and for the first time rose gold as well. And there are great cases and covers that you can add. They come in a variety of beautiful colors. So this is the iPad Pro. With the 9.7-inch Retina display, what will it cost? Well, we're really excited to offer a 32 gigabyte iPad Pro for just $599. That's $200 less expensive than the 12.9-inch. And we hope to reach a lot more customers with it. For 128 gigs for $749 and for the first time ever in an iOS device there's a configuration now with 256 gigabytes of storage. Orders begin this Thursday, March 24th and they also start shipping next week on the 31st. We are so excited about this iPad Pro. The team has worked so hard on it. We really love it and we've created a brief video to tell you just a little bit more about it.

Our vision for personal computing has always been that the most powerful technology should deliver incredible capability without the complexity. With the technologies built into the new iPad Pro and the remarkable apps that take advantage of them, it delivers a uniquely intuitive and immersive way to do everything you do. iPad Pro changes the way people discover, capture, edit, design and produce. At the heart of this versatility is its performance. The A9X chip was designed specifically for iPad Pro to provide more power than most PCs in a thin, light, intuitive device you can take anywhere with you. The immersive iPad experience starts with its Retina display. Each one is individually calibrated, so you always see vibrant color, contrast and clarity. The display on the new 9.7-inch iPad Pro features a wider color gamut for even more stunning imagery. It's also the first iPad with the True Tone display, which responds and adapts to the light around you. Four channel ambient light sensors measure the intensity and color temperature of your environment and then adjust the display to match. So what you see on the screen is more natural looking and easier on your eyes. To complement its vivid display, iPad Pro's four speaker audio system produces high fidelity sound that automatically optimizes the audio volume for whichever way you're using it. Apple Pencil delivers an experience that's natural, familiar and fluid with the added versatility of a digital tool. Its advanced sensors detect pressure and tilt while the touch system recognizes your hand, fingers and Apple Pencil individually. So, when you rest your hand on the screen, it ignores input generated by your palm and forearm letting you work as freely as you would on a piece of paper. The smart keyboard was designed to add even more flexibility. It works seamlessly with iOS 9 to add unique onscreen shortcuts and commands. The iPad Pro display is the ultimate viewfinder for capturing photos and videos. And the 9.7-inch iPad Pro features the 12-megapixel iSight camera making it a powerful device to shoot and edit, even 4K video wherever you are. The new iPad Pro gives everyone the ability to do amazing things. Things you thought you could only do on a PC and things you've never done before. It's where we believe personal computing is going.

So these are all iPad Pros now on two sizes starting at just $599 the 9.7 and the 12.9 also now gets that new 256 gigabyte configuration, so our highest end customers are going to love that. This is the best lineup we've ever had of iPads by far. It starts with just an iPad Mini at $269. The iPad Air 2, which used to be our highest end 9.7-inch iPad is now reduced $100, to just $399. So a lot of customers are going to like that. And the iPad Pros start at just $599. So that's our news on iPad, back to you, Tim.

Thanks, Phil. We think whether you already have an iPad or whether it's time for you to replace that PC laptop, the iPad Pro is an amazing choice. It allows you to do so much more. So you've seen some incredible products this morning and some just great things on two initiatives that are very important to us. Like our work to curtail climate change by powering Apple on 100% renewable energy, and CareKit transforming the way individuals manage their health. Cool new bands for Apple Watch now starting at just $299. A great update for Apple TV with folders and expanded use of both Siri and dictation. The iPhone SE, the most powerful four-inch phone ever created. And iPad Pro, so powerful and so capable, it truly is the future of personal computing. We're always pushing forward, innovating and doing things that positively affect many people. It's something that Apple has been doing for over 40 years. This is probably the last product introduction in the Town Hall that you're sitting in today. We've had a lot of important announcements here. It's a very special place with lots of memories. The iPod was announced in this room and so was the App Store. We have lots of great memories here. Next year, in 2017, we're looking forward to moving to our new campus and our new theater there. And we expect that we're going to have many, many opportunities to invite all of you to join us there. We're looking forward to moving and we can't wait to see what's in store for the next 40 years and share it with you. I'd like to thank everybody for coming. Special thanks to everyone at Apple who made today possible. Members of the press, we have a hands-on area across the hall in the piano bar. And so, please go get your hands on these great products. Thank you very much.