4:39PM - That’s it! Thanks for bearing with us everybody, we were doing a LOT more traffic than we’d expected, especially for our first time out!

Big ups to Ron Heft and Jesse Altman for building our system, and thanks to Rob and Mosso for hosting. Photography by JD Lewin.

4:39PM - Ha, he’s playing I Left My Heart in San Francisco. Damn straight, Tony!

Phil: Thank you all for coming. As you know, a show like this can’t be put on alone — thanks to everyone who made this possible.

4:30PM - We’re so proud of it, we couldn’t help ourselves and had to make a TV ad. I’d like to show you that ad. Looks like it’s all about the machine’s green-ness.

We do have one last thing… some news, some things we’re doing with iTunes.

There are some pretty powerful things happening with iTunes, and I think it’s important to share them. We started the iTunes store about 6 years ago — it’s now sold over 6 billion songs. That’s amazing. Applause.

It’s the world’s largest media library with over 10m songs, and we now have over 75m accounts with CCs. We started iTunes to give customers a legal way to purchase music over the internet. iTunes became the number one channel for music in the US (above Wal-Mart, BBY…). What’s new? I’d like to tell you about three things.

First: price. We work with all the major music companies, and all the independents. We’ve had one price for our songs, starting in April we’re creating three pricing tiers: 69c, 99c, and $1.29. We know a lot more songs will be offered at 69c than at 99c.

The second thing we’re doing, is iTunes Plus. It’s how we offer music that’s completely DRM free. Starting today, we’re offering 8 million of our songs all DRM free. Big applause.

By the end of this Q, all 10m songs on iTunes will be DRM free. Big applause! Dayumn! ALL SONGS will be DRM-FREE on iTunes.

The third new thing has to do with the iPhone: it’s no longer the WiFi store, it supports downloads over 3G networks. You get downloads over the air at the same price, same selection, same quality right on your iPhone. This is a really big step for wireless music on cellphones, and it starts today.

4:23PM - Advanced chemistry, intelligent monitoring, adaptive charging — using discrete graphics you get up 7 hours, and using integrated graphics you get up to 8 hours. That’s 3 hours longer than previous 17-inch MacBook Pros — a 60% increase in battery life!

It comes in one configuration: same prices as previously, $2799, 2.66GHz CPU, 4GB of memory, and ships at the end of this month, late January.

4:21PM - Because of our 3x recharge cycles, the batteries have a 5 year lifespan — meaning fewer batteries in landfills. We think we’ve finally come up with a convergence of technologies that makes the dream we’ve been pursuing for a long time finally possible.

4:19PM - One of the breakthroughs in the battery design, we’ve introduced adaptive recharging. … 1000 recharges — 3x the recharges. We have a chip that talks to each cell, reports back to the system, and recharges each accordingly.

4:18PM - Apple’s new battery chemistry supposedly extends the lifespan of the battery “3x over the industry standard.” Damn!

4:17PM - “When you design a removable battery, you waste a lot of space. … By removing all this, we’ve been able to make a notebook that has a 40% bigger battery that lasts up to 8 hours.”

4:16PM - The battery’s bigger — and it doesn’t look like it’s removable!

4:15PM - We challenged our team to create our longest lasting battery ever. We’ve got a video explaining this great new advance in battery technology.

4:15PM - I haven’t talked about one, the most innovative new feature: the battery.

4:15PM - Three USB, FireWire 800, the new glass trackpad, 2.93 Core 2 Duo processors, up to 8GB of memory at 1GHz DDR3, and the dual integrated/discrete GeForce 9400M and 9600M GT. Standard 320GB drive, up to 256GB SSD.

4:14PM - $50 anti-glare option! The only way to do this is to remove the glass from the front, and put a metal bezel on the front.

We started the year with the MacBook Air, and to that we added the 13 and 15-inch MacBook Pro. We came up with a better way to make a notebook, and it’s worked incredibly well. Our customers love them, and the reviews have been fantastic.

4:13PM - We started the year with the MacBook Air, and to that we added the 13 and 15-inch MacBook Pro. We came up with a better way to make a notebook, and it’s worked incredibly well. Our customers love them, and the reviews have been fantastic.

I’m proud to tell you, if you look at a list of the laptops sold in the last 8 months, a MacBook has been #1 on that list every month.

The new high end of our line, it’s absolutely stunning. It’s 0.98-inches thin, the world’s thinnest notebook, and at 6.6 pounds it’s the world’s lightest. It’s simply stunning. This is the best display we’ve ever shipped in a notebook. (1920 x 1200, 700:1 contrast, 140 H / 120 V viewing angle).

4:10PM - One more thing and the third thing: the 17-inch MacBook Pro!

4:10PM - iWork will eventually be fee-based, but for right now it’s free and in beta. Launches today!

4:08PM - Showing Pages and Numbers; spreadsheet templates, advanced charting, and lots of other stuff we likely won’t be using any time soon. $79 individual, $99 for the family pack, if you purchase it with a new Mac, it’s just $49. Ships today.

Leopard is needed for the new iLife, we’ve made this a really easy choice: Mac Box Set: Leopard, iLife, and iWork for $169.

There’s a service we’ve been working on: iWork.com. We’re announcing a beta of this; it’s a new service to upload and collaborate on your documents online. Those people you’ve shared it with can view it online.

3:59PM - That’s iLife 09! $79 individual, $99 family pack, ships late Jan!

We also have a completely new version of iWork: 09. First up, Keynote 09… it’ what I’m using for this presentation, so you know it’s rock solid! Chuckles. Magic move, object transitions, and new slide transitions, new themes…

and Keynote Remote! It’s an app for the iPhone / iPod touch! It shows you your slide or notes, two slides, flick with your finger to advance with slides. Big applause.

3:58PM - Thanks for bearing with us everybody! I know the site’s been having load issues, we’ve been doing WAY more traffic than I’d expected!

3:47PM - The artist lessons are $4.99 per lesson, purchasable online. They give you the story behind the songs… playing a clip of Fogerty: “Well, it was early ‘68. As best as I can remember it.” Laughter.

3:46PM - John Fogerty, Colbie Caillat, Patrick Stump, Sting… “That’s a few of the guitar players!” Big applause. On piano: Sara McLaughlin, Ryan Tedder, Norah Jones. “Incredible artists, we’re going to continue to add more and more along the way… they teach you the songs!” More applause.

3:45PM - Showing guitar and piano, notation and sheet music: bundled with are 9 lessons for guitar and 9 for piano. We’ve enlisted the help of some amazing artists to help teach you their songs: we call this artist lessons!

3:42PM - Isn’t that incredible? So that’s the second app… I’d like to show you just one more, the new Garage Band 09. New feature: learn to play! You have an instructor, an instrument, and a control: you control the rate, the sections you’re studying…

3:38PM - Showing the image stabilization and clip adjustments, like video playback speed and effects (like aged film).

3:34PM - Showed abstracting audio from a clip, dropped it in as a voiceover. Showing the advanced clip editor. It’s kind of hard to explain, but it’s pretty awesome looking — iMovie 08 really needs some of this stuff!

3:30PM - With a single click, iMovie creates themes, effects… we have animated travel maps showing 2D and 3D travel maps showing exactly where you traveled. We have automatic video stabilization, so clips that might not have been usable before are beautiful, pristine parts of your movie. Demo time!

3:30PM - Last year, one of our engineers had an idea of a whole new way to edit movies — so we completely rewrote iMovie. Only the name was the same. … What’s new this year? We have a powerful new precision editor. We have a new advanced drag and drop system.

3:25PM - Showing places now: it’s got pins of all the places that already have photos. Funny, I don’t see any photos in the sea of China, where my iPhone 3G seems to think I take most of my shots.

3:23PM - I’d really like to be the first to show you the brand new iPhoto 09 running on my mac. Demo time!

3:20PM - One of the things that’s been really popular is printing out photos and books: we’ve updated with new themes and printing. New travel book theme — inside we have maps based on geotag data!

3:19PM - Face detection centers on faces in the slideshow as well. Whoa, this other sideshow theme splits the images across colors and dimensions, looks really good. “You can now sync these slideshows on your iPod touch and iPhone!”

3:18PM - We also have a great new feature called slideshow themes. You can not only assign music and timing, but you can pick a built-in theme. (Demoing a ballet slideshow. It looks pretty great!)

3:16PM - We have support for online services: Facebook, Flickr! Syncs down from the web to your library if tagged!

3:16PM - iPhoto has a location database, too, for tagging old photos that don’t have embedded coordinates. “So where do the maps come from? We’re getting them from Google Maps. If you’ve used it on the web, you know exactly how to use this map!”

3:13PM - iPhoto reverse-encodes that geotag — doesn’t just show the latlong, shows the location and even a specific place, like the Eiffel Tower. Nice!

3:13PM - So how does places work? It uses a technology called GPS geotagging (yes!) — it’s starting to make its way into cameras, and the most advanced cellphone on the market (shows iPhone 3G, laughter), embed location right in.

3:12PM - There’s no perfect detection and recognition, but we think it works really well and it’s incredibly easy to use. So that’s faces, we think you’re going to love using it! (Applause.) We’re also adding a third way to find your photos: places. (Sounds like geotagging!)

3:10PM - Thanks Phil, face detection huh? Never heard of it. “Our face detection finds the face in your photo, and you can type in a name. … it also has another technology called face recognition to not just find a face, but to find it in multiple photos!”

3:10PM - Wouldn’t it be great if iPhoto allowed you to organize photos by your favorite people? We’ve added faces: it’s really beautiful, a corkboard with snapshots of your favorite people. How does it work? It uses a technology called face detection.

3:09PM - iPhoto 09! Last year we introduced events. This year, we’re adding another way to manage your photos: faces! It’s really powerful.

3:08PM - As a lot of you know, iLife has become one of the reasons people buy a Mac today. It’s so useful and fun — there’s nothing like it on any platform.

3:07PM - If you want to hear some new things today — and I assume you want to hear new things today (cheers) — I’ve got three new things. First: an entirely new version of iLife: iLife 09.

3:07PM - Last fiscal year we sold 9.7 million Macs — we did it by growing twice as fast as the rest of the industry. … up and down the line, we have great, amazing, beautiful products. It’s just tremendous.

3:06PM - They do it because it’s a great place to shop, but also because they want to get hands-on… today I’m going to talk all about the Mac. I think it’s appropriate that at Macworld we talk about the Mac!

3:06PM - I think: what other company’s logo can you possibly imagine can have a logo in that kind of a photo? I can’t imagine any other company delivering something like that. Every week , 3.4m customers visit an Apple store around the world. Unbelievable. That’s 100 Macworlds each and every week.

3:05PM - It’s an exciting time at Apple, there’s so much going on… you can feel it. But probably nowhere better than at all these incredible stores Ron and his team have been opening around the world. China… In Munich we opened to crowds… Sydney.

3:04PM - “Good morning everyone, I can tell you how excited I am to deliver the Macworld 2009 keynote. I can’t tell you how much I appreciate you all showing up.” (Laughter.) He’s nervous!

3:03PM - Phil’s up on stage, applause. No aloha shirt, what the hell, man!

3:03PM - Lights are going down! Cheers from the crowd.

3:02PM - Everybody’s seated, looks like we’ll be under way really soon!

2:59PM - PA: Good morning ladies and gentlemen, welcome to Macworld 2009! Cheers from the audience. It’s a full house, which means at least a couple of thousand people here.

2:54PM - No word on Steve — if he’s here, he’s hiding out. But Al Gore’s definitely up front, as is Cook and Bertrand.

2:49PM - AT&T’s network is totally saturated, not surprisingly. Looking forward to seeing how Phil fares. Will he show up in the mock-turtleneck, worn jeans, and New Balance sneakers? Smart money’s on an aloha shirt.

2:43PM - And we’re in! MGMT is the PA.

2:34PM - Mulling about up here in the media corral, people are clearly antsy to get it going!

1:51PM - Media line let in, heading upstairs to the press corral. And then… more waiting!

1:11PM - We’ll be at the show shortly, so stick around! Also, please note that this is the first time we’ve done live coverage with our new gdgt live system, so feel free to me know how things are going. gdgt and and I will be checking Twitter for feedback!