7:17 PT - JS: Like the official T-shirt for Apple developers says (see image), the keynote is at 10 a.m. Pacific Time, June 9, at Moscone West in San Francisco. This is Jason Snell reporting live from San Francisco within shouting distance of the keynote hall. Dan Moren and I will be back with you closer to 10 a.m. to give you details on the keynote as it happens, including photos.

MH: Apple has decided not to screen the keynote to UK journalists this year, so we are hooking up with our US counterparts who will be watching the show as we sit here in the UK providing commentary. This is Mark Hattersley reporting for Macworld UK, and we sure wish we were out in San Francisco for this one.

MH: The Apple store in the UK has just gone down. A sure sign that whatever is announced will be going on sale in the UK today.

MH: Just a reminder that Apple has set up an iTunes podcast section for this (and other keynotes) so you will be able to watch the video later. Click here to read about it while we wait for the keynote to start.

9:50 PT - DM: Good morning and welcome to Macworld's live coverage of the WWDC '08 Keynote event. I'm your host Associate Editor Dan Moren, alongside Editorial Director Jason Snell. We'll be here for the next two hours, typing furiously in the hopes of catching everything Steve Jobs says and does. Right now, the music's playing and people are still getting seated.

9:51 PT - JS: Playing Bo Diddley in honor of the late, great musician. Nice touch. I'm sitting here next to Dan Moren, Dan Frakes, frequent Macworld contributor Glenn Fleishman, and Daring Fireball's own John Gruber.

MH: And it's good afternoon from myself to all our UK readers and just a quick reminder that we are updating this live via Macworld's US team at the Moscone Center in San Francisco. All times from here on in will be in Pacific Time.

9:55 PT - DM: Ooh, they're playing "Roll over, Beethoven." Nice. I too need a shot of rhythm and blues.

9:59 PT - JS: Macworld's own Heather Kelly is here with us to take some photos of the event as it happens, so stay tuned for that as soon as things kick off.

10:01 PT - DM: Clearly, something important has just happened. Lots of people have stood up. I think Steve Jobs is making a running entrance, Stephen Colbert-style or something. Unfortunately, everybody's standing up, so we have no idea what's going on.

10:02 PT - DM: They've now asked us to turn off our electronic devices. I love that they specifically mention that you turn off your iPhones. Because everybody here has iPhones. If you've got a Blackberry, go ahead and leave it on: because it's *rubbish*.

10:05 PT - JS: The cheers were definitely for Al Gore, a member of Apple's board. I believe he might have held elective office at some point as well. I don't know if he brought his Oscar, though. Probably not. Those things are heavy.

10:06 PT - DM: Steve Jobs is taking the stage, to rampant applause from the audience. He's wearing a pair of denim overalls...okay, kidding. Black turtleneck and jeans all the way. "We've been working really hard on some great stuff that we can't wait to share with you." There are a record 5200 attendees here. "Wish we could have had more, but we sold out." They can't find a bigger venue than this. 147 sessions; 85 on the Mac and 62 on the iPhone, so it's "gonna be packed." 169 hands-on labs, over 1000 engineers on site, and sessions on iFund and Intel.

10:07 PT - DM: Let's get started. There's three parts to Apple now: the first part is the Mac, the second part is the music business - the iPod and iTunes, and the third part is the iPhone (no mention of the Apple TV!). Now I'm gonna take this morning to talk about the iPhone first, so Scott Forstall and Phil Schiller will be coming out to talk about the iPhone. Then after lunch, developers are going to get a peek at OS X Snow Leopard (that's right, it's official).

MH: Kicking off with Snow Leopard and right into the iPhone 2.0. Looks like this is going to be a good one.

10:08 PT - DM: Let's talk about the iPhone. We're going to talk about iPhone 2.0 first. It's "a giant step forward" from where we've been, and it's got the SDK in it. In the 95 days since the SDK was announced, over 250,000 have downloaded it. Over 25,000 people have applied to the paid developer program. Admitted 4,000 people to the program so far.

10:09 PT - DM: iPhone 2.0 software has three parts to it: enterprise support, the SDK, and some new end-user features. "Let me start with the enterprise. Customers have demanded Microsoft Exchange, so they've built it in out of the box for 2.0 software: push email, push contacts, push calendar, auto-discovery of Exchange severes, global address lookup, and remote wipe security feature. All built in to iPhone 2.0 software. They've added secure VPN services from Cisco and other network service demanded by the Enterprise market. Everything that Apple was told enterprise users want, they've built in.

10:11 PT - JS: This is basically a recap of Apple's previous SDK event a few months back. Good stuff, though.

10:11 PT - DM: The Enterprise markets have participated in beta program: 35 percent of the Fortune 500 has participated in beta program. Top five commerical banks, top five securites, 6 of 7 top airlines, 8 of 10 top pharmaceutical companies, and 8 of 10 top entertainment companies have participated. Phenomenal participation of higher education as well. Going to show a video of Enterprise customers.

10:12 PT - DM: We're getting an assortment of executives from corporations and the military. Disney's been testing the beta release for the past few months, apparently (big surprise). We're seeing a few of the new features, like contact searching, Exchange support, push calendaring, etc. Security is also a big part of the 2.0 release and enterprise features.

MH: Wow. Apple really must have worked hard to keep this quiet.

10:14 PT - JS: Great line from the military official, who points out that they're one of the few groups in the world that is very mobile, deploys globally, and has people shooting at them.

10:15 PT - JS: Nice iPhone 2.0 tidbit from Dan Frakes as seen in the video: as you're entering your password, you can see the last character that you typed, making it a lot easier to make sure you're typing your password correctly.

10:15 PT - DM: The video gets a round of applause. Maybe it'll be up for an Oscar (fingers crossed). Jobs returns to stage: "That gives you an idea of what we're doing in Enterprise." Scott Forstall is going to come out next to talk about the SDK.

10:16 PT - DM: Forstall: "We're opening up same APIs and tools that we use internally to build all of the shipping apps." Here's a rundown of the APIs and frameworks on the iPhone. The iPhone shares layers with OS X on the desktop; the same kernel is used on both.

10:18 PT - DM: Scott's continuing to walk through the features of the SDK: a lot of this is review of things we've already learned about the SDK in the iPhone event earlier this year.

10:19 PT - DM: We're going to get a quick demo of these tools. Scott's going to focus on constructing a user interface in Interface Builder. He's creating a Basic Cocoa Touch application in Xcode. "Nearby Friends" will use built-in Address Books APIs to access contact DB on phone and the Core Location API to add a location-based service. Filter to show just contacts within 10 miles of current location. (Building a user interface on stage: talk about catering to your audience)

10:21 PT - JS: It's important to keep in mind that while this is a media event, it's first and foremost a developer event, so Apple is taking great pains to give some meaty developer information to the thousands of Mac and iPhone developers in the crowd.

10:21 PT - DM: Interface Builder is a pretty impressive application: all the UI can be done with pretty much drag and drop. It's incredibly smart and knowing how the UI should look on the iPhone. It automatically aligns elements as necessary, and changes controls based on where they're located and the iPhones orientation.

10:23 PT - DM: There we go: now we're done and with one click in Xcode it runs the full application. "That's how easy it is to write an application and test it in the simulator right here on your Mac." We'll go one step further now: testing on the iPhone. You only need to change one pop-up to do that: switch to build for the iPhone. Scott's demoing the app on the iPhone now and showing it live. Pretty impressive how easy they seem to have made it. Indeed, using the Core Location, it's located only those contacts within 10 miles (hey, Steve Jobs apparently isn't within ten miles!).

10:25 PT - JS: John Gruber says that he hopes that these tools mean that we'll see a lot of apps that support both landscape and portrait modes in the iPhone, and I agree. Not enough iPhone apps support landscape orientation.

10:25 PT - DM: The SDK has been out for about three months, and thousands of developers are out there using it. Apple's asked them what they've thought about the SDK, and the response has been very positive. Here's a quote from a Disney engineer lauding the software development tools. Tom Yager at our sister publication InfoWorld is giving props as well. Here's a plug from the director of mobile product development at Fox. Finally, David Pogue of the NYT calls the iPhone the third major platform after Windows and Mac OS X.

10:26 PT - DM: Scott: "We couldn't agree more. We think we have a fantastic platform here for people to build incredible applications." Apple was really amazed at the quality of the applications that developers have been creating. They're inviting up a handful of developers to talk about what they've been working on.

10:27 PT - DM: Sega is the first one to come up and chat. Apple was impressed with what Sega had done in just the first couple of weeks with the SDK. Here's what they've managed to accomplish after several months. Ethan Einhorn of Sega is coming on stage to demo Super Monkey Ball on the iPhone.

MH: We recently said that people shouldn't underestimate the power of the iPhone as a gaming platform. This show's that Sega is thinking the same way. Should bode well for the future.

10:28 PT - DM: Eight weeks after the SDK event, they came up with 110 stages of the game. Also "all four of the classic monkeys." Here's the last world in Super Monkey Ball to demo just how well the tilt control works. I'd say the graphics look about on par with the Nintendo DS. Applause as the developer successfully navigates the first checkpoint. The "tilt control works beautifully." Sega loves the App Store and Super Monkey Ball, and they're looking forward to more apps. Super Monkey Ball will be available at launch of App Store for $9.99 (that's a bit lower than some had been suggesting. Nice).

MH: A lot less than the $19.99 that we heard. Should be around £5-£7 in the UK. And I can't think of a better game to show off the iPhone's unique sensors than Super Monkey Ball.

10:29 PT - JS: I always thought Curious George was one of the classic monkeys. And Mickey Dolenz.

10:30 PT - DM: Next we're going to talk about eBay. 84 million active users, the largest online marketplace in the world. Ken Sun from eBay takes the stage. Here are auctions on the iPhone. iPhone is #1 mobile device for accessing eBay. Five weeks ago, they decided to create this application. Easy access to search, summary of activities, and personal avatar. They're going to search for a new WiiFit. You can see the picture, all the information, and they've integrated WebKit to see the buyer's HTML description.

10:32 PT - DM: It'll show you when you've been outbid, so you can easily see what you're winning and losing. Entering a bid is really easy. One more item on watch list: $12.5 million home and golf course. Scroll through the photos. eBay app will be available for free when App Store launches.

10:33 PT - JS: This shows that a lot of companies with fairly sophisticated web sites are still going to develop native applications for the iPhone. As nice as the iPhone's web browser interface is, a custom app to pull data off the net can be much better.

10:33 PT - DM: Our next demo is from "loopt" (I haven't heard of these guys). Loopt appears to be location-based social networking. Sam Altman from loopt will come on stage. Loopt is about "connecting with people on the go." You can basically see your friends superimposed on a map. Best version of Loopt ever made. "The best and most powerful" mobile platform out there. You can see what people have been up to all day, and look at photos they've taken. You can call, text, or comment on your friends' status feeds. "You never have to eat lunch alone again." You can use loopt with your friends on other platforms. The app will be free on the App Store at launch (not lunch!).

MH: I've never heard of it either. Will be interesting to check it out. Combining Social Networking with mobile-based devices is a great idea. Will be difficult to knock FaceBook off the number one spot though.

10:36 PT - DM: TypePad is up next. Michael Sippey from TypePad is going to demo their native blogging client. Here's TypePad on the iPhone. You can create a text post or take a photo with your iPhone and send it to your blog. Also, you can add a photo from your library into a post. It appears to handle multiple blogs (though all TypePad, presumably). You can choose categories and edit the body text. A pending items view will tell you the progress of posts in the background. Then you can jump to view your post in Safari. The app will be available for free at the launch of the App Store. He gets a nice round of applause; there are a lot of bloggers in this audience.

10:39 PT - JS: TypePad is a good example, but I suspect we will be flooded with blog-posting tools for the iPhone. Which is good, because blogging from the iPhone isn't as easy as it could be, even with iPhone-specific interface plug-ins for blogging tools.

MH: Hmmm. I can't imagine blogging on Multi-Touch. Not accurate enough. But then, it's a useful App to have.

10:38 PT - DM: Next: the Associated Press. They provide news to more than half of the world's poopulation every day. Already, AP has one of the best web apps for the iPhone, but they're making a native app too. Here's Benjamin Mosse to discuss the application. The program is called the "Mobile News Network." You can add locations to get local news; it can use Core Location to get news from wherever you are. And it'll download the news so you can access it from wherever you are, even when you don't have a network. Also, you can take a look at the award-winning AP photos and watch video from their news network. You can add locations to get local news; it can use Core Location to get news from wherever you are. And it'll download the news as you're reading it, so you can read later from wherever you are, even when you don't have a network. Also, you can take a look at the award-winning AP photos and watch video from their news network. Look, it's Stevie Wonder! If you have a photograph or firsthand account of a breaking news story, you can submit a report to the AP. Unsurprisingly, they love building iPhone apps. The Mobile News Network will be a free download when the App Store launches.

10:42 PT - JS: There have been a lot of reports about Apple encouraging developers to charge for their iPhone software. Interesting, though, how much free stuff we've seen today on stage.

10:41 PT - DM: Here's Pangea Software, the Mac game developer. They've ported two of their games on the beta SDK. Brian Greenstone takes the stage to discuss their applications. The first one is Enigmo, a physics-based puzzle game. The game is completely touch-based; drag and drop, zooming, panning, and rotating your puzzle pieces.

10:44 PT - JS: All you people who bought your iPhone to improve your personal and business productivity, let me tell you -- those days are over. You're going to be playing these games. Wow, really impressive graphics from Pangea.

10:43 PT - DM: They're showing off how CPU-intensive some of these levels are and how well the iPhone handles them. The second game is Cro-Mag Rally; a 3-D caveman racing game. Porting the game's over was very easy; only took about three days to get each game playable. The iPhone's tilt controls get used as the steering wheel. "That makes this game what it is." It appears very much like the Nintendo Wii's motion-sensitive controls. Adding the accelerometer-based steering took "5 to 10 minutes." Both games are on App Store at launch for $9.99.

MH: It'll be interesting to see how well games that don't rely on tilt-motion will fare. It seems to be the only real option for control on the button-less iPhone.

10:45 PT - JS: Apparently you can sell your iPhone software for any price you like so long as it's free or $9.99. (Hat tip: John Gruber.)

10:45 PT - DM: The next demo shows off the work of a solo developer, Mark Terry, from Cow Music. He works in the insurance industry in England, and the application is called Band. It's pretty amazing. Two-octave piano, drum kit, and a 12-bar blues setting that quite literally lets you play a 12-bar blues all on your own. Now demoing a bass guitar window and playing the bass line from "Money" by Pink Floyd. So you can mix all the different instruments together and form your own band. Band will be on the App Store in "a few weeks time", but no info on pricing.

10:48 PT - DM: And here's something from MLB.com for baseball fans. They've built an iPhone-native application, which we'll get a taste of from Jeremy Schoenherr. MLB.com "At Bat" offers features you're not getting anywhere else. It'll show you all the live games. It'll give you all the scores, who's on base, who's batting, etc. It's even got real-time video highlights from games just as they're being played. We're taking a look at the Yankees game (booooo). Reference movies give you the best experience on either Wi-Fi or EDGE (huh, no mention of 3G, eh?). They'll be in the App Store at launch.

MH: It'll be interesting to see if any football organisation (Sky Sports) would create a similar application in the UK. Could imagine it doing extremely well.

10:50 PT - JS: Red Sox fan Dan Moren might boo the Yankees, but Yankees fan John Gruber, sitting right next to me, let out a cheer. We may have a fight right here in the keynote rows!

10:50 PT - DM: Modality. "The medical community has been flocking to the iPhone." Two medical apps to show today, the first is from Modality. Dr. S. Mark Williams has come up to show off the application. Modality is a learning application to help medical students learn anatomical information, replacing paper flash cards. Zoom and pan across pictures

10:50 PT - DM: Modality. "The medical community has been flocking to the iPhone." Two medical apps to show today, the first is from Modality. Dr. S. Mark Williams has come up to show off the application. Modality is a learning application to help medical students learn anatomical information, replacing paper flash cards. Zoom and pan across high-quality pictures, and you can tap on a pin to identify a body part. (Nice laugh at dropping a Google Map-style pin on a coronary artery.) It'll also quiz you on locating anatomical features. Seen the use firsthand: "Dr Williams, I learned five new brain terms this morning while I was waiting in line for my latte."

10:53 PT - DM: Within weeks of the App Store launching, Modality will have a dozen apps available, and many more by the end of the year.

10:54 PT - DM: MIMvista is a leading developer of innovative medical imaging software. Mark Cain is going to walk us through their app.

10:54 PT - DM: Here's a CT scan and PET scan of Johnny Appleseed. They fuse the two images together, and let you switching which oreientation you can look at the image from: front, back, top, etc.

10:55 PT - JS: Let me tell you, Johnny Appleseed's looked better. I think he needs to see a surgeon immediately.

10:56 PT - DM: Yep, it looks like Johnny's got a lung tumor, unfortunately. Poor fella. Ha, you can draw a line on an image, and then erase it with a shake: it's a medical Etch-a-Sketch! The application also has a built-in movie mode that shows an animated model of imaging. The program will be out at the launch of the App Store.

10:57 PT - DM: Here's our last application from Digital Legends Entertainment. Apple only learned about this dev last week. They're based in Barcelona, but have only started on the SDK two weeks ago. "But when you get a look at the graphics, you'll forget you're looking at a phone and think you're looking at a dedicated gaming console." Xavier Carrillo Costa is here giving us a demo. A warrior is jumping around on screen, and it looks pretty cool. The game -- Krull -- is expected to be released in September.

MH: Much as though I like video games, I'd like to see more variety in these programs.

MH: One hour in and no details on the iPhone 2.0 yet; or Snow Leopard. This could be a long one.

11:00 PT - DM: Scott asks for one more round of applause for the developers' work. That was quite a long series of developer demos. There's been one feature request that a few developers have asked for. Especially IM clients and people like eBay: notifications for background apps. According to Scott, the *wrong* solution is background processes. Here's why it's bad: battery life (it'll continue to drain your battery in the background); performance (Background applications will suck up CPU cycles, slowing down your foreground application). One platform has come up with this solution: a task manager. A shot of Windows Mobile, which gets a hearty laugh from the crowd. Scott compares it to a challenging game. "This is nuts." That gets a round of applause and cheers from the crowd.

MH: I guess battery performance is going to be an issue for the iPhone for the foreseeable future.

11:02 PT - DM: A far better solution: a push notification service to all developers. Here's how it works: as you run an app like an IM client, it's connected to the server. When the user quits the app, the iPhone will maintain a connection to the server, which will let them push notifications. It can push three types of notification: badges, custom alert sounds, and you can push custom textual alerts, appearing kind of like SMS messages and you can provide buttons that will automatically launch application. Great thing about this design: it scales, but only requires one persistent connection. This is sweet, sweet news for all developers and those who wants to use IM clients especially.

11:04 PT - DM: Advantages: preserves battery life, maintains performance, and works over the air: both over cell and Wi-Fi networks. This'll be available in September, but they'll be pushing a seed for developers to check out next week.

11:05 PT - JS: That's a big deal for certain apps, basically anything that might need to notify you at any given time. Especially IM clients.

11:04 PT - DM: Steve's back! I almost forgot he was here too. He's going to talk about a few new features in the iPhone 2.0 software. The first one is contact search: you can enter a name and instantly find who you're looking for. Full iWork document support lets you view Pages, Numbers, and Keynote documents. "A great way to look at your iWork documents on the go." Completed support of Microsoft Office documents. PowerPoint presentations are now available too. "It's super easy to download these documents as attachments."

11:06 PT - DM: They've now added bulk delete and move for the Mail client. "It's rather handy." And the ability to save images from emails into your Photo Library. Scientific calculator: just turn Calculator into landscape mode. We've added parental controls "Some teenagers might not like this." You can turn off Explicit content, YouTube, iTunes Store, App Store. And they've added a tremendous amount of language support: Cyrillic and Asian languages. Two forms of entry for Japanese and Chinese each. And there's one where they draw the Chinese character with the finger (that was rumored a few weeks back). That gets a nice round of applause. You can switch between languages on the fly. "It's one of the great advantages of not having a bunch of plastic keys for your keyboard."

MH: Hooray. Bulk delete. Looks like Apple is serious about the Chinese market as well.

11:08 PT - JS: The iPhone 2.0 software update has been pushed back to "early July," and will be $9.95 for iPod Touch owners.

MH: That's not going to go down well. We were all hoping to download the software tonight. Shame to see iPod Touch owners having to pay for it again too.

11:09 PT - DM: Developer sets price, 70 percent of revenues to developer, no credit card or hosting fees, FairPlay DRM, and no charge for free apps, as we've known. They've enlarged scope of country to 62 countries (that's roughly as many countries as they've announced availability of). If your app is 10MB or less, it can be downloaded over cell, Wi-Fi, or iTunes. If it's over 10MB, it can only be downloaded over Wi-Fi or iTunes.

11:10 PT - DM: Apple got feedback that Enterprise would like to distribute their apps just for their phones. They're adding a way for Enterprises to distribute apps (a smattering of applause). They can authorize iPhones that are in their enterprise, and they can restrict apps to only run on those phones. Apps can be downloaded via the Intranet and sync the programs to phone via iTunes. Just for running secure Enterprise apps on their phone.

11:12 PT - JS: "Ad hoc" is how developers are going to be able to beta-test their iPhone software to a smallish group of outside testers too, almost certainly. Basically you can have your own iPhones and then almost 100 more to test with.

11:12 PT - DM: Now we've got something entirely new. "We're very excited about this." It's MobileMe. Here comes Phil Schiller for demo time.

MH: Interesting note is that .Mac is still working. We've been checking to see if it went down prior to this announcement.

p>11:13 PT - DM: Phil is really excited to tell us about MobileMe. What is MobileMe? It's like having "Microsoft Exchange for the rest of us." Whoops, little slip of the tongue for Phil. Boy would we like to have capabilities of Exchange servers. Everybody can have push email, contacts, and calendars. Everything is up to date wherever you are. MobileMe stores information in "the cloud" so you can get it from your Mac, your PC, or an iPhone. It will push information up and down to keep everything synchronized.

11:15 PT - JS: This is really logical, because it would be silly to limit all of those instant-sync features to Exchange. And of course, not having to connect and sync your iPhone in order to get new data on it from your computer is a natural.

11:14 PT - DM: If he's on the go, he can get his e-mail everywhere. Change a contact on your iPhone and it gets changed on your other devices. (It's like .Mac only, you know, it works better). Works with the contacts application on the iPhone, works with the Calendar app on the iPhone, etc. And it works with native apps on Mac and PC: Mail.app, iCal, Address Book on the Mac; on the PC side, it works with Outlook. But what'll really surprise people is they've built web apps using AJAX for Mail, Calendar. The URL is "Me.com".A web app that "feels like a desktop application." This kind of looks like a shinier version of Google's online application suite.

MH: Me.com isn't up and running yet. We've just checked.

11:16 PT - JS: Next question is, will it work with Entourage on the Mac as well, or anything else that uses Sync Services?

11:17 PT - DM: Direct access to calendar items and mail in the cloud. Taken the gallery from Mac.com and turned it into a web gallery for MobileMe users. Photos also work over the air with iPhone. If you take a picture with your iPhone with the 2.0 software, you can send photo to MobileMe (okay, you can do that on .Mac, though). You can store your documents and files on the web too, which is pretty cool.

11:18 PT - DM: Now we're going to get a demo. He launches Safari, goes to Me.com and logs in (I always wonder whose job it is to propagate Phil's and Steve's fake mailboxes). It's got drag and drop support. He's got na invite to Wall-E. "Sometimes good friends invite me to great events." There's an inline Quick Reply feature. That's email.

11:20 PT - DM: Contacts. It lets you scroll through them, navigate your groups, and there's a live search: as you type, it filters your contacts. You can click on addresses and it gives you an embedded Google Map.

11:20 PT - DM: Calendar. You can navigate by day, month, week view (Phil's a week view man). You can turn on the color-coded interface. And you can just drag and drop events to move them around. Here's a look at the gallery; you can skim through photos just like in iPhoto. You can rotate photos, drag them around, etc. You can password protect your photos if you like.

11:21 PT - DM: There's the web-based iDisk access too, and you can just drag your files around. The logout buttons looks like a power button (oh, how spiffy). Now we're going to take a look at MobileMe on the iPhone.

11:22 PT - DM: Emails get pushed immediately to the phone. John Appleseed has invited Phil to lunch at Ace Wasabi's. Guess he's feeling better. Sadly, we are stuck in here without food. You can call the restuarant or go to their website. Phil's going to turn the restaurant into a contact on the phone; now if he logs back into MobileMe, he can see the same email (it reflects read status), and it pushed the contact info back to the web-interface too.

11:24 PT - DM: Now, in the web-based calendar interface, he can create an event ("a really long lunch meeting") and when he goes back to the iPhone, he can tap on his Calendar and already see the lunch meeting. "You can clap, it's okay." Now Phil's going to move his softball game from Wednesday to today. And poof, it appears on the iPhone—like butter! "You're all my witnesses; it really works!" Now he shows off the same thing with photos. Man, Phil takes great photos with the iPhone. He'll send the photo MobileMe, and it lets him pick an album. Seems to use the email app to send the photo to MobileMe. Then it goes "up in the cloud."

11:26 PT - JS: Interesting that in order to send up photos you have to e-mail them. I would have thought that it would be a bit more automatic than that.

11:26 PT - DM: Recap: It's like having Exchange for the rest of us. It's the "perfect companion" for anyone with iPhone and iPod touch. It'll cost $99/year, has 20GB of online storage, and come with 20GB storage. 60 day free trial will be available along with iPhone 2.0 in early July. MobileMe replaces .Mac. .Mac users will be automatically upgraded to MobileMe and able to switch over whenever they want. (Well, I'm already paying for .Mac, so not much of change there.)

MH: .Mac currently costs £69 in the UK so that is the price we expect MobileMe to cost per year.

11:28 PT - JS: Hey, Steve's back! We missed him. He's a bit more like Ed Sullivan now. He brings on special guests, but he always comes back to center stage...

11:28 PT - DM: Steve: "isn't that great? We've been working on that for quite a while and we finally got it right."

11:28 PT - DM: In a few weeks, it's going to be iPhone's first birthday. There's a picture of the madness at the 5th ave store at launch. iPhone has had "tremendous critical acclaim." "I believe that it's widely believed that this is the phone that has changed phones forever." Users love their iPhones. 90% customer satisfaction. "What products today have 90% satisfaction?" 98% are browsing; 94% using email; 90% text messaging; 90% using 10 or more features. "You can't even *begin* to figure out how to use 10 features on a normal phone."

11:30 PT - DM: In this first year we sold 6 million iPhones until we ran out a few weeks ago. They have figured out what their next challanges are: 3G, Enterprise support, third party applications, more countries. They've sold iPhone in six countries so far, but "believe me, they're in use in many more countries." The iPhone is apparently taking over the world, or at least winning at Risk. And, last but not least, it needs to be more affordable. 56% of people who didn't buy iPhones say because it's too expensive.

11:31 PT - JS: Great graphic of the iPhone leaving countries it's officially in via big, fat red arrows.

11:31 PT - DM: As we arrive at iPhone's first birthday, and today they're introducing iPhone 3G. Surprise! "We've learned so much with the first iPhone." And now they've created the iPhone 3G. It's even thinner at the edges than the original. Full black plastic back. Solid metal buttons, and the same screen. Camera, and—Oh my god!—a flush headphone jack.

11:34 PT - JS: Yes, folks, you heard that right. No longer will you have to buy an adapter to use your third-party headphones with the iPhone. Unless, y'know, you want a remote control button and microphone.

11:33 PT - DM: How does the iPhone 3G tackle the challenges lined up before? 3G? Faster data downloads. Nowhere more than in browser and downloading email. They've compared web surfing in EDGE and 3G. So here's the side-by-side. 3G is substantially faster, for sure. The National Geopgrahic site loads much faster on 3G: 21 seconds vs. ...we're waiting, we're waiting...still going. La la la. I could go out and get a cup of coffee. Or maybe watch a movie. So, how are you guys doing? Good? Great. 59 seconds on EDGE. So, 3G is 2.8x faster than EDGE. Now they'll compare to Wi-Fi.

11:35 PT - DM: 3G speeds actually approach Wi-Fi. "It's amazingly zippy!" They compared two other 3G phones (Nokia N95 and Treo 750) and the iPhone is 36% faster than them. Plus, "full page on the iPhone and...something else on the other phones."

11:36 PT - DM: Email attachment race. 3G downloads in 5 seconds and the EDGE version takes...longer. 18 seconds. (People in the back were whistling the Jeopardy theme song, I think). It only took 3 seconds on Wi-Fi, so the 3G is pretty close. Clearly, they can get faster data.

p>11:37 PT - DM: They're proud that they're doing this with better battery life. 300 hours of standby time, 2G talk time is up to 10 hours (from 8 hours); on 3G talk time, other phones have 3-3.5 hours. The iPhone has 5 hours of 3G talk time. "That's actually a very large amount of 3G talk time. We're very proud of this." Browsing is 5-6 hours of high-speed browsing. 7 hours of video and 24 hours of audio. (Small text; "All figures are 'up to').

11:38 PT - DM: And it looks like GPS is in there too. Shazam. Location services is going to be a big deal on the iPhone with the 2.0 software. Right now they get data from Cell Towers and Wi-Fi, and now they get GPS (it shows up as a little blue dot). And using the GPS data they can actually do tracking. They drove down Lombard St. And they can actually track as they move using GPS. You can see the car wiggling along the curvy street. That is pretty damn crazy. "You get the idea."

11:40 PT - JS: Wow. I was figuring GPS would be a 50-50 proposition, but there it is. Some questions: If we've got GPS, how about voice synthesis to give driving directions? And since Google Maps only works when you've got a connection to the Internet to download map data, how will it work if you're out in the boonies and don't have that connection? Will you be able to buy Map pacs and install them? Lots of questions to be answered now that there's GPS on the iPhone.

11:39 PT - DM: Built-in GPS and much much faster data. They're checking off 3G and built-in GPS to boot. Enterprise support? They've already gone over all the Exchange support and security standards. It's all built-in. Third party applications? The SDK, the tools, and the App Store. "We think we can check off third party application support." More countries? They distribute in 6 countries today. Set the goal of 12 countries for the iPhone 3G, and a stretch goal of getting to 25 countries in next few months. Here's how they did. They're going through, and there's no way I can type that fast. And now he's playing "It's a small world after all." Now the crowd is clapping along. Oh god, this song used to give me nightmares as a child.

11:43 PT - JS: A cheer goes up as each country is revealed, pointing out that this is truly a Worldwide Developer Conference.

11:41 PT - DM: Australia got a pretty big applause, as did Japan. So that's 70 countries in total, and that gets quite an ovation from the crowd. They'll be rolling out iPhone 3G in 70 countries over next several month. "Next time you're in Malta and need iPhone 3G, it'll be right there for you." But still no deals in Russia and China yet. But rest of deals are signed, sealed, and delivered.

MH: Good to see that Apple is taking the rest of the world seriously. Will save a lot of people from have to JailBreak their iPhones.

11:44 PT - DM: So, in terms of iPhone goals... "We think we can check off more countries." That leaves the last bullet point, "more affordable." Started off at $599 for 8GB; now down to $399 for 8GB iPhone. The 3G iPhone is going to sell for $199. And the crowd goes wild. They are pretty damn excited in here. I think there might be a riot. 16GB model is just $299 annd the 16GB also comes in white. "And we think we can check off 'more affordable.'"

MH: We will check with O2 but that seems to confirm the £100 price point that we reported.

11:45 PT - DM: They're going to start with 22 of the biggest countries, rolling out the iPhone 3G in all of those countries. July 11th is the date it drops. Start your countdown widgets. Price is a maximum of $199 (Steve loves that "thud" sound effect). And, as you might expect, there's a new ad.

11:46 PT - DM: Two guys carrying a lockbox down a corridor, swiping a card. "It's finally here. The first phone to beat the iPhone. It surfs the web and downloads data twice as fast, but for half the price. Introducing the new iPhone 3G." That got some nice cheers. A little bit of a departure for their ad campaign. And they're going to roll it again. With no sound! Whoops, there it is.

11:48 PT - DM: "One of the most amazing products I've ever have the privileged to be associated with." Steve asks for Tony Fadell's and Scott Forstall's teams to stand up and asks for a round of applause, which they well deserve. The crowd obliges.

11:49 PT - DM: So, the iPhone 3G. July 11th, 22 countries. "And that's just the start." Here's a recap of WWDC 2008. And we're wrapping up, that's it. Thanks for following along with us here, we'll be providing plenty more analysis at Macworld, naturally. Hopefully it won't require me typing this fast for another six months or so. Ciao!

11:50 PT - JS: And that wraps it up! Thanks to Dan Moren for his stellar typing skills.

MH: The Macworld UK team would just like to offer its thanks to our friends over at Macworld US for sharing that with us. We will now be combing through all the information and confirming UK specific pricing and dates. Please keep an eye on our news page for information as it develops.