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On January 9, 2007, amidst the Consumer Electronics Show (CES), Steve Jobs unveiled the iPhone in a remarkable and flawlessly executed demonstration. While the external perfection of the event is well-remembered, the broader context and additional product launches, along with a portion of the keynote that didn't go as planned, often fade from memory.
Providing context, on Sunday, January 7, 2007, Bill Gates delivered the keynote address at the Consumer Electronics Show in Las Vegas. Emphasizing Microsoft's "Digital Decade" initiative, Gates stressed the importance of connected experiences beyond just powerful hardware. He highlighted the centrality of Vista and the PC but also claimed Windows Vista to be the highest quality release by Microsoft.
Two days later, approximately 400 miles away at Macworld San Francisco, Steve Jobs introduced the iPhone—an innovation that directly addressed the missing element Gates had identified. Although Jobs didn't explicitly mention the "post-PC era," the iPhone effectively ushered in a new era for productive and creative individuals on the move, running on macOS instead of Windows Vista.
Beyond the iconic iPhone introduction, the 2007 keynote stands out for its meticulously crafted presentation. Jobs declared the event as an opportunity to make history together, guiding the audience through the history of cell phones, pinpointing their shortcomings, and showcasing how the iPhone would revolutionize the industry.
While the historical curiosity of early cell phone designs is evident today, at the time, these seemingly archaic phones represented the best available technology. Regardless of personal preferences or brand loyalties, even for those who favor Android over iPhones, the impact of this keynote persists. In subsequent legal battles between Apple and Android manufacturers, such as Samsung, Apple presented graphics illustrating its position, emphasizing the lasting influence of the iPhone's groundbreaking features.
However, the presentation didn't solely focus on the iPhone; other notable aspects received applause at the time and that has gained appreciation in the years that followed.
Steve Jobs began the presentation by revisiting the announcements from the previous year's keynote in 2006. During that event, Apple disclosed its transition from PowerPC to Intel processors, committing to completing the switch for all Mac models within 12 months. In 2007, Jobs described this transition as a "huge heart transplant" and proudly declared, "We did it in seven months."
Acknowledging Apple's significant success in the previous year, Jobs highlighted a noteworthy statistic—that over half of all new Mac buyers were now migrating from Windows. Initially, this shift had been observed in Apple Stores, but by 2007, it had become a broader trend, with 50 percent of new Mac buyers making the switch regardless of where they purchased their Mac.
Continuing the presentation, Steve Jobs showcased a 2004 internal memo from Microsoft's Senior Leadership team, specifically a quote from Jim Allchin. In the memo, Allchin expressed, "I would buy a Mac today if I was not working at Microsoft." Jobs shared with the audience that Allchin was on the verge of retirement, prompting a playful comment that Apple's Seattle stores had been informed to keep an eye out for him and provide exceptional service.
While Jobs chose not to quote the remaining content of Allchin's memo, it's worth noting that it included the blunt assessment, "Longhorn" (the codename for Vista), "is a pig, and I don't see any solution to this problem." Jobs didn't directly reference this statement, but he proceeded to present a new advertisement from the Get a Mac campaign, specifically targeting Vista.
"So, 2007 is poised to be a remarkable year for the Mac," declared Steve Jobs. "However, today, we'll focus exclusively on the Mac later. Let's shift our attention to some other exciting developments."
It's essential to recall that during the mid-2000s, the speculations surrounding Apple introducing a phone were more rampant than the current speculations about Apple entering the car industry—by a significant margin. Given this context, when Jobs made this statement, anticipation ran high for a major announcement.
Yet, to the surprise of many, Jobs didn't immediately delve into the highly anticipated phone announcement. Instead, he initially appeared to divert attention by discussing Apple's music business. Little did the audience know, this diversion was merely the initial step in setting the stage for the true focus of the day.
Jobs went on to disclose a significant achievement—the surpassing of 2 billion song sales—and highlighted that the iPod had claimed the title of the world's most popular video player by a considerable margin. Additionally, he shared that within the first four months of movies being available on iTunes, consumers had purchased a staggering 1.3 million films.
Despite having only 100 films on the service at that time, Jobs announced a promising expansion, with the addition of 150 more titles as Paramount joined iTunes.
Jobs skillfully portrayed the addition of 250 movies in a positive light, but there was one statistic he didn't attempt to sugarcoat—the sales of the Zune, Microsoft's touted iPod competitor released the previous November. While only data for the launch month was accessible, the numbers revealed that, despite a substantial initial push, the Zune had captured a mere 2 percent market share.
In addressing this, Jobs candidly remarked, "No matter how you try to spin this, ah, what can you say?" His acknowledgment of the Zune's underwhelming market performance reflected a moment of straightforwardness in the presentation, emphasizing the formidable position of the iPod in the market.
At last the iPhone
At the 24-minute mark of the presentation, Jobs paused and shared, "This is a day I've been looking forward to for two-and-a-half years." Later, as the keynote wrapped up successfully, he openly admitted on stage, "You know, I didn't sleep a wink last night; I was so excited about today."
However, the excitement wasn't solely tied to the anticipation of unveiling the iPhone. Unbeknownst to the audience, Apple engineers in attendance were keenly aware of additional reasons that may have disrupted Jobs's sleep. It was only disclosed much later that Jobs's presentation had the presence of iPhone engineers who comprehended the potential challenges. The software was still under development, the entire phone was a work in progress, and any deviation from the meticulously planned demo could have resulted in a system crash. The success of the presentation relied heavily on meticulous planning and flawless execution to navigate potential pitfalls.
