Apple iPhone Event

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If the developer updates your app, the App Store tells you that an update is available, and you can see what's been updated, tap the update button, and your app will be replaced by the updated version, over the air, all automatically. "So we think this is pretty cool," Jobs says.

"The App Store is going to be the exclusive way to distribute iPhone applications," Jobs says. "We think we've got a great business deal for developers." Developer picks the price. Developer gets 70% of the revenues right off the top. We keep 30%. No credit card fees for developers. No hosting fees. No marketing fees. "And it's paid monthly," Jobs says. "This is the best deal going to distribute applications in the mobile space."

And there is no charge for free apps.

"Will there be limitations? Of course!" The slide says: Porn, privacy, bandwidth hog, unforeseen, malicious, illegal. (Unforeseen?)

11:08 PT: Both enterprise and SDK are going to be delivered in one update, the iPhone 2.0 software update. Beta release available today, in the hands of thousands of developers and hundreds of companies. "We need the feedback," Jobs says. Shipping to every iPhone customer in late June, and it's a free software update.

11:09 PT: "In just a few months, every iPhone user will have everything you saw today, as a free update. Now there's one other part to this. It's not just the iPhone. It's the iPod Touch. The same software release is going to run on the iPod Touch. Now, we account the iPod touch a little bit different, so there will be a nominal charge for that update, but otherwise it will be exactly the same as the iPhone."

11:10 PT: "We think a lot of people are going to want to become an iPhone developer." It's really easy. Go to our web site and download our SDK for free. Run the Simulator on your Mac. You can join the iPhone Developer Program if you want to run the app on an iPhone or iPod Touch, and distribute your app. To join the developer program costs $99.

11:12 PT: "That's our roadmap. We hope you are as excited about it as we are. We think this is incredible. Thanks for coming today. But we do have... one last thing."

11:12 PT: The premier venture capital firm in the world is Kleiner Perkins, and the most well known partner is John Doerr. "I'm here because I really love Apple entrepreneurs," he says. "entrepreneurs do more than anyone thinks possible, with less than anyone thinks possible. They're rebels. So it's great to be here with the supreme commander of rebels, Steve Jobs."

"So on this day, my friends, a salute to the world's greatest entrepreneur, Steve Jobs." Big applause for Jobs from the crowd.

11:15 PT: So today, they are announcing the iFund, for the iPhone platform. "New platforms are rare, but they can be transformational," Doerr says. So they gave a lot of thought to the size of this fund. "We decided the iFund should be $100 million," Doerr says. "That should be enough to start a dozen Amazons or even four Googles."

Doerr: "Today we're witnessing history, the launching of the SDK, the creation of the third great platform—the iPhone and iPod Touch. Think about it. In your pocket, you have something that's broadband and connected all the time. It's personal. It knows who you are and where you are. That's a big deal. A really big deal. It's bigger than the personal computer."

11:17 PT: Jobs is back. "Thanks very much for coming," he says, and excuses everyone... except the press. Hmm.

11:22 PT: Q&A. Jobs: what's the $100 mean for the iPhone community? "I think that Kleiner Perkins believes there's an opportunity to invest in small companies that are going to develop for the iPhone. We love young, innovative developers, and a lot of them need funding."

11:24 PT: What are you doing to make these applications secure? "This is a big concern. It is a dangerous world out there. We've tried to strike a good path here. On one side, you've got a closed device like the iPod, which always works. You don't have to worry about third-party apps mucking it up. And on the other side, you've got a Windows PC. We want to take the best of both, the reliability of that iPod and we want to take the ability to run third-party apps from the PC world, but without malicious applications.

"The developers have to register with us, and for $99 they get an electronic certificate, and that tells us who they are. If they write a malicious app, we can track them down, we can tell their parents, and we will know who they are. And we can turn off the spigot if we need to."

11:27 PT: Question about Voice over IP. "Initial take is that we will only limit voice over IP over the cellular net. We'll allow them over Wi-Fi?"

11:28 PT: Can you have Exchange, POP, iCal, all mixed together? "Yes." Only one Exchange account set up at once, though.

11:29 PT: Doesn't your exclusivity say something about monopolies? What if they don't want to distribute on the App Store. "Then they won't be able to distribute on the iPhone," Jobs says. "But we don't think that wants to be the case."

But to be clear, if you don't go through Apple, you can't get on the phone. "But to be clear, we don't intend to make money off the App Store. We're basically giving all the money to the developers, and the 30% that pays for running the store, that'll be great."

"Most developers don't have a store to sell their app on their web site," Jobs says, "And if they want to give their app away, there's no better way to do it than to put it up on the App Store."

What about SIM unlock software? Will it not be allowed? "Yes."

About the nominal fee for touch. "The way we account for the iPhone is with subscription accounting, so we take the revenue over two years. The way that we account for iPods, is more normal accounting. And so because of that, we have to charge a nominal fee, but I don't see that changing. We'll set it when we release the software in June. But we don't look at this as a profit opportunity."

11:36 PT: More talk about iPhone versus Blackberry. "Why aren't CIOs really worried about security? Every email message sent to or from a RIM device, goes through a NOC up in Canada. Now, that provides a single point of failure, but it also provides a very interesting security situation. Where someone working up at that NOC could potentially be having a look at your email. Nobody seems to be focused on that. We certainly are."

11:38 PT: What about enterprises who want to write private, internal apps? Schiller: "We're working on a model for enterprises for them to distribute applications to their end users, specifically with a program for them to target their end users. We have a model we're building for that."

11:40 PT: Why did you change your mind? "I think the web apps work well from what they do, but developers gave us feedback that they wanted to do more, and they really wanted it. And we heard that, and we've been working on this. To create an SDK is a lot of work, because once you give it to developers, you want to live with it for the next 20 years. And you want to evolve what's underneath it without changing the APIs and breaking their apps. So Scott and his team have done a masterful job at creating an elegant API."

11:43 PT: "We have great relationships with our carriers, and apple's responsible for the software on the phone, so we define the software, we distribute the apps, you have an iTunes account with a credit card, and really, this is our program, and we're running it." Do the carriers get a revenue share? "We're not going to get into details, but generally we like to see the revenue flow the other direction."

11:44 PT: Jobs: "Thank you very much for joining us today."

End of event!

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