11:20 PT - DM: Josh Koppel of ScrollMotion. Built around bringing great content to iPhone. New in-app bookstore, powered by in-app purchase. Over 500 best-selling books in the app store. 50 major magazines, over 170 daily newspapers, over 1 million books to the App Store. You can pinch to zoom the view, swipe to the next page. Citations made possible with copy and paste, and you go write into an email form inside the app. Partnered with several textbook publishers liek Hougton-Mifflin, Wiley, McGraw-Hill. Coming soon to an iPhone near you.
11:22 PT - DM: TomTom. Man, we have been waiting to hear from these guys for year. Both application and accessory integration. Peter-Frans Pauwels. Using new features in iPhone 3.0 to deliver real TomTom navigation as a true iPhone experience. Plan a route from Moscone West to Sausalito. Best route at the best time of day. And it has the voice cues. Demo looks a little jerky. Create an optional accessory that's like a little cradle that suctions into the window. Not just a holder, it securely docks iPhone, and you can flip it into landscape. Thanks to accessory framework, they can enhance GPS, also give you hands free calling, power, and a loudspeaker. Both will be available this summer, with a range of maps.
11:26 PT - DM: Neil Young from ngmoco. Star Defense (like Tower Defense but, you know, in space). Expansions is the word of the day here. Major new content and feature packs. Just a few dollars more for extra content. Push to play challenges allows you to play online. Launching today, but 3.0 features will come when iPhone 3.0 launches (uh, hey guys, let us know when that will be, huh?).
11:29 PT - DM: Pasco to teach science to kids in K-12. Wayne Grant of Pasco to show off their science-teaching app. Ballon bursting sensors. Scott Forstall comes out in lab coat, goggles, and ear protectors. He's going to blow up a balloon until it pops. "The rapid increase in pressure is right here." says the founder as the balloon fails to inflate. Awww, fail. So we'll walk it through as though it had happened. "That flat line actually zooms quite well." Poor guy, but he's rolling with the punches.
11:30 PT - JS: Good to see turn-by-turn navigation actually demoed on the iPhone. That's going to sell a lot of iPhones and it's going to make life a lot harder for GPS makers.
11:33 PT - DM: "Last time I'm dressing up for an experiment," says Scott. Zipcar is next.
11:33 PT - DM: Zipcar's Luke Schneider. New Zipcar iPhone app. Maps show you all zip car locations all around the city. Green pins indicate available cars. Tap on a pin, up pops name and number of cars. Instantly see Zipcars in any lcoation. Gives him a list of the cars, and you can set cars as favorites. Tap Reserve, pick a time, and duration. And you can tap the horn icon on the iPhone to have it beep the horn for your car, so it's easy to find and you can unlock the car from the iPhone. That's Zipcar on the iPhone.
11:37 PT - DM: Final demo from Line 6 and Planet Waves. Together, they let you control your guitar and your amp at your next gig. Marcus Ryle. Using accessory framework you can connect iPhone to connect amp and guitar. Can choose the amp style. "This doesn't run on compressed air, but it could still have some technical issues." Can also adjust treble and bass. Can also change what kind of guitars, change into acoustic. "That's not acoustic." Whoooopsie. You can design your own guitar. You'll all have to go to Line6.com to hear what it actually sounds like. Change the tuning of the guitar without using a tuning peg. You can move the frets around—apparently it sounds impressive when it works.
11:41 PT - JS: Okay, so that didn't go well. They're not going to say iPhone 3.0 is shipping today, are they? Because with crashes like these, maybe there's some more debugging to be done, either in the apps or the OS.
11:41 PT - DM: "The chance of something going wrong is directly related to the number of people watching," says Scott. He says it worked great in demos.
11:42 PT - DM: That's iPhone 3.0. It will be free for all iPhone customers, both of original iPhone and iPhone 3G. Cost $9.95 for iPod touch customers, both of 1G and 2G models. And it will be available worldwide June 17th. Next Wednesday, folks. All paid developers will have golden master seed of iPhone OS 3.0 today. Can go and download it today. Number one, you need to go to iTunes Connect and assign a rating for your applications, and number two, test your apps against 3.0. If not, quickly submit an update.
11:43 PT - JS: iPhone 3.0 drops a week from Wednesday. But developers get it today, so they've got time to make sure their stuff works!
11:43 PT - JS: Adding parental control age ratings to iPhone apps is huge. Even if you don't have kids. Why? Because all of these ridiculous app rejections will cease once Apple can approve "questionable content" that's rated for mature audiences only.
11:44 PT - DM: And Phil's back. "To call iPhone 3G a hit would be the understatement of the year." Wasn't that long ago that we were frustrated with these "crappy" devices. Two thirds of all mobile browsing is done an iPhone OS device.
11:45 PT - DM: Comparing the iPhone App Store: over 50,000 apps. Android is almost 5,000. Nokia Ovi Store, took a lot of phones and added them together 1,088. "And somebody else. I can't read it, it's small." The last in reference to Palm's 18 apps. Zing, Phil. Zing.
11:46 PT - DM: And an entirely new version. The iPhone 3GS—the "S" stands for "speed." Same great design of iPhone 3G, but what's inside is entirely new. Launching messages app, twice as fast. Loading a game, 2.4x faster. Viewing attachments, 3.6x faster. Load NY Times, 2.9x faster. Speed against iPhone 3G running iPhone 3.0 software. Even faster with the 3GS, from 126 to 43 on iPhone 3.0, on iPhone 3GS, it's just 15 seconds.
11:48 PT - DM: Up to 2x faster on average. Great performance technology, OpenGL|ES 2.0. 3GS is ready for 7.2 Mbps HSDPA. Also has amazing features. Brand new built-in camera. Looking at Flickr daily number of users loading pictures from cellphone: iPhone is 3.5x more than any other cellphone. Brand new 3 megapixel autofocus camera. Beautiful pic of the Golden Gate. In addition to Autofocus, also tap to focus. Tap the subject of whatever you want to focus on, and it'll focus and auto compensate. Improve low-light sensitivity lets you take better pictures. Auto focus also has auto-macro. As close as 10cm away. API lets developers take advantage of camera and get features for free.
11:51 PT - DM: Oh, and it also captures video. Just go into Camera app and there's a switch for still or movie, flick to what you want to take, and it takes 30fps VGA with audio, and it's auto focus, auto white balance, auto exposure.
11:52 PT - DM: Videos are right alongside your pictures. You can scrub through a timeline and edit with a tap of your finger, picking an in-point and end-point and hit "trim." And you can tap the share button to email, over MMS ("if my carrier supports it"), MobileMe gallery, and YouTube. Expect iPhone 3GS to become most popular cell phone for video. Just like still camera, there's an API for adding video capture to your applications.
11:53 PT - DM: Voice Control! Heck yeah. In any application, hold down the Home button and the Voice Control UI pops up. Commands you can give scroll by. "Call Scott Forstall." You can play music or playlists. Can ask iPhone what's playing now and iPhone will speak back to you and tell you title and artist. Can even trigger Genius by saying "play songs like this." That's Voice Control.
11:55 PT - DM: There's also a built-in digital compass. (One guy whooped it up on that, and Phil commented about a crazy compass guy). Gives you Longitude and Latitude, can jump into maps. Tap a second time and it'll even flip the map to orient the way you're facing. Developer API for this as well.
11:55 PT - JS: The voice control feature is great, and long overdue. It's a shame that it appears to only be supported on the iPhone 3GS.
11:55 PT - DM: Accessibility. VoiceOver support can read to people. Zoom in the display to have larger icons. Invert colors. Even can pipe mono audio through and speak auto-text corrections.
11:56 PT - DM: Built in support for Nike+. Can talk to the sensors, play your power song.
11:57 PT - DM: Enterprise-requested feature: hardware encryption. If you use Exchange service or Find Your iPhone, remote wipe is instantaneous, and backups are encrypted.
11:57 PT - DM: And they've improved the battery life too. Put up the battery specs for the iPhone 3G running iPhone 3.0. But 3GS is even better. 9hrs of Internet on Wi-Fi, 10 hours of video, 30 hours of audio, 12 hours of 2G talk time and 5 hours of 3G talk time.
11:58 PT - DM: Also, most environmentally-friendly iPhone yet. Arsenic-free glass, BFR-free, mercury-free LCD, PVC-free system, 23% smaller packaging. Smaller packaging means can ship millions around the world in less space.
11:58 PT - DM: iPhone 3GS will ship with iPhone 3.0 features. Rate of applications on App Store still accelerating. iPhone 3GS will be just $199 for 16GB version. $299 for 32GB iPhone. AT&T prices in the U.S. for new and qualified customers. And both come in black and white.
12:00 PT - DM: Want to reach more customers, so they'll keep the iPhone 3G on the market at just $99 for 8GB. That pricing starts today.
12:01 PT - DM: Here's the lineup: iPhone 3G at $99 for 8GB; iPhone 3GS 16GB for $199, 32GB for $299.
12:01 PT - DM: iPhone 3GS available on June 19th. In U.S., Canada, France, Germany, Italy, Spain, Switzerland, and U.K.. Week later to six more, and in July to more countries, and into August to even more. Very quickly will take it to all over 80 countries iPhone is already in.
12:02 PT - DM: We're so excited, we created a new ad. Cute ad.
12:03 PT - DM: Recap time. Whole new line of MacBook Pros. Snow Leopard. iPhone OS 3.0.
12:03 PT - DM: Just the start of the show this week. 129 sessions, 147 hands-on labs, 1000 Apple engineers. Want to thank all the amazing people at Apple.
12:05 PT - DM: And that's it folks! Hope you enjoyed our liveblog and are looking forward to all the new exciting stuff Apple has to offer. Of course, we'll have full coverage of all these devices, software updates, and more at Macworld.com. Thanks for dropping in.
12:05 PT - JS: Okay, that does it. Thanks as always to Dan Moren for putting his fingers on the line to handle the play-by-play.