SAN FRANCISCO -- 11:10 Mayer finishes his performance. The keynote is over.
11:07 Mayer is singing "Waiting On The World To Change."
11:03 Mayer is singing his single "Gravity."
11:02 Jobs says there is a special treat to end the keynote. Saying they don't have a lot of traditions at Apple, he introduces Grammy nominee John Mayer to perform and end the show.
11:00 Jobs asks the development team members to stand up and take accolades. "I also can't leave without thanking the families," Jobs says. "All of the families...Without the support of families, we couldn't do what we do....They understand when we're not home for dinner on time...You don't know how much we need you and appreciate you."
10:59 Jobs thanks the audience and receives a standing ovation from many in the crowd.
10:58 With the phone announcement Apple is dropping the word "Computer" from its name and will simply be called "Apple Inc." "We're very excited about this [phone]," Jobs says.
10:57 The clicker is fixed. The keynote continues. Jobs calls the mobile phone market "a giant market." He says Apple is going to try in 2008 to grab 1% marketshare. That would be 10 million units.
10:56 Jobs returns to the stage. His clicker is not working.
10:54 Cingular CEO Stan Sigman takes the stage. "It's really, really cool," said Sigman. "It's a real honor to be partnering with Apple today."
10:52 The excuse for the phone's June availability? FCC approval, Jobs says. But he says Apple wanted to announce now before everyone heard through the FCC filing. The phone will be available in Europe in the 4th calendar quarter and Asia in 2008. It will be sold in the U.S. through Cingular and will be available at Apple stores and Cingular stores.
10:51 The 4GB model will be $499 with a two-year contract. The 8GB model will sell for $599. The phone will be available in June. The crowd is disappointed.
10:50 The price is coming next. The crowd appears restless as Jobs gets to the price.
10:47 Jobs recaps the phone features. Apple filed for 200 patents for inventions in the iPhone. "It's the ultimate digital device," Jobs says.
10:46 As for battery life, the phone has five hours for talk time, video or browsing. 16 hours of audio playback. "Dramatically better" than the competition, Jobs says.
10:44 Apple's phone is shipping with with great stereo headphones, a microphone cable with a answer/hang up switch, and a bluetooth accessory headset that will ship as an add-on option. It fits in the ear and is very sleek.
10:43 "Today, Apple is re-inventing the phone." How does it stack up with the competition? Jobs compares the phone with four other phones, such as the BlackBerry, Palm Treo, and others. "After today, I don't think anyone is going to look at these phones in the same way."
10:40 Jobs demonstrates a phone call with Phil Schiller for the audience. Jobs selects a photo that Schiller has requested and then sends the photo to him via email.
10:36 Jerry Yang, co-founder of Yahoo, takes the stage now. Yahoo will launch Yahoo Go and Yahoo OneSearch services on the phone at a later date.
10:32 "It's the Internet in your pocket for the first time ever," says Jobs. Dr. Eric Schmidt, Google CEO and Apple board member, comes on stage as the first guest, saying, "Congratulations, Steve. What an incredible job!" Dr. Schmidt ends with, "This product is going to be hot."
10:28 Demos Widgets running... showing stock info, as well as weather... now, Google maps on the iPhone... searching for a Starbucks in the San Francisco area on Google maps. It pops up a list and a map with the phone number and he's calling a local Starbucks. "I'd like to order 4,000 lattes to go. Sorry wrong number. Bye!" Crowd laughs. Showing satellite images found on Google Maps and is zooming in with doubles clicks. "This is a breakthrough Internet communicator built into a phone."
10:25 Now showing "something incredible", Safari running on a mobile device. Loading The New York Times over Wi-Fi. Rather than a wrap version, it shows the entire NYT site. you can change it to landscape and see the whole page. Too small to read a Web page? "Pinch" a part of the Web page with your fingers. Safari demo over.
10:20 Announcing with Yahoo, free push IMAP e-mail... demos Web features... you can parse out a phone number from mail, highlight it and dial it automatically... you can split e-mail like in Safari with a list at top and one open mail on the bottom of the display.
10:16 Rich HTML e-mail - the first time it's been on a mobile device... works with an EMAP or POP service... the Web browser will be Safari on phone.. Google maps, widgets (starting off with weather and stocks), automatically detects Wi-Fi and will switch from a phone connection...
10:13 The third app that's part of phone package is Photos. You can scroll through photos with your finger and view Albums. "To go through pictures, you just swipe them." You can swipe while in landscape. You can also take any pictures and make them bigger with a "pinch" - you take your fingers and move them closer or farther apart and the photos change in size. Photo package part of demo is over and we now move on to the Internet communications device.
10:10 Demonstrating SMS text... you can do multiple SMS text sessions, below the text window is a little keyboard that does error prevention and correction... "It's so simple," Jobs said.
10:05 Quad-band GSM, EDGE support, Wi-Fi, and Bluetooth... demonstrating phone app, photos, calendar, and SMS messaging... Phone icon in lower left hand corner takes you to phone, moving around contacts, you just scroll through them; if you want to call someone, you touch his mobile number... the phone Jobs is using is an actually working product. He's calling some guy who was on the development team... Jobs is getting a second call; he's demonstrating putting people on hold from one call to another... you can even create a conference call with one touch... dialing numbers by touching numbers on the screen... phone app tour done.