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Macworld 2008 Keynote

Here's what Santa Steve has in store for us:

* New Airport Extreme with built-in storage, called "Time Capsule". It's designed for Time Machine, so that laptop users don't have to keep plugging in external hard drives. Backup is better automated, as users will always forget or just be lazy. Two options: 500 GB for $299 and 1 TB for $499. It will ship in February.

* New iPhone features - Maps with locations (it triangulates both cell towers and wi-fi points), webclips, customizable home screens (up to 9 separate screens), SMS multiple people at once, chapters, subtitles, and language support in video, and lyrics support in audio. This is all via the 1.1.3 firmware update that was previously leaked, and it is out today for free.

* New iPod touch features - Now features Mail, Maps, Stocks, Notes and Weather, that were previously featured exclusively on the iPhone. The update is $20 for existing users but included in the price of new units. The charge is probably partly due to potentially cannibalizing iPhone sales and partly due to accounting (they're not allowed to add major new features later on for free).

* iTunes Movie Rentals - They have Touchstone, Miramax, MGM, New Line, Lionsgate, Fox, Warner Brothers, Disney, Paramount, Universal and Sony on board. New rentals come out 30 days after DVD releases, and they will have 1000 in the library by the end of February. You have 30 days to begin watching it and you must finish it within 24 hours once you've started. You can rent in both HD and SD quality. For HD: $3.99 for older titles, $4.99 for new releases. SD titles are $1 less. There will be software updates today to enable this functionality.

* Apple TV has a brand new UI. You can rent directly from your couch, using an on-screen keyboard to type things in. You can also get podcasts and music videos. It also has .Mac and Flickr support, allowing you to view friends' photo albums. All of this software will be enabled via a free software upgrade in the next two weeks. They're also knocking $70 off the price. You also no longer require a computer in order to use it.

* They now have a deal with Fox where all new Fox Blu-ray titles will have an iTunes-compatible version on the disc designed for iPod users.

* MacBook Air - "The world's thinnest notebook". It has a 13.3" widescreen LED display (not LCD) and is 0.16 inches at its thinnest end and 0.76 at its thickest. It weighs 3lbs. Steve even whipped out an envelope on stage and fitted it inside! It's aluminum with a backlit black full-size keyboard and trackpad. The trackpad supports advanced gestures (a la the iPhone), allowing you to perform extra application functions without needing the keyboard. It also comes with an iSight camera. 80 GB hard drive as standard or you can opt for a 64 GB solid-state flash drive (much faster but considerably more expensive). 1.6 GHz Intel Core 2 Duo, with 1.8 GHz available as an option. It turns out that the processor inside is specifically made for the Air, and has been shrunk by 60% at Apple's request.

It does not come with a CD or DVD drive but there is an external one for $99 that is specifically designed for it. Apple has also created software called Remote Disc that allows you to browse other machines' optical drives via wi-fi and install software using their optical drives. You can do this with both Mac and PC machines.

It also has 5 hours of battery life when you browse the web with Wi-fi switched on. The price is $1799 and it will ship in two weeks. Pre-orders available now. It is also more eco-friendly than its predecessors, using less packaging and no mercury, arsenic, BFR or PVC.

Analysis
Ok, ok, I was wrong with my prediction of no sub-notebook. But it's good to see that Apple has dealt with the potential issues I brought up. This is a great machine for those that need something small and light without compromising power.

My favorite announcement today was iTunes movie rentals and how Apple has integrated these with the Apple TV. Steve acknowledged that the Apple TV had missed the mark somewhat, and that movies are the main driving point. I was expecting movie rentals but I was not expecting HD support as well. I was considering signing up for a Netflix account but this deal is much better. You can rent HD movies that will work on Macs, PCs, the Apple TV, iPods and iPhones for a relatively low fee. No other online rental company offers this. It is also considerably more convenient than sending and receiving discs in the mail.

I am also considering buying an Apple TV now. The device has considerably more use to me now that you can rent and watch HD movies directly from the comfort of your sofa. There is no word on whether purchased movies will be offered in HD as well, or even if they will continue to be offered at all. I will probably hold off purchasing it just yet though, as I am sure that Apple will put a DVD drive in it once a format "wins" the war. I may as well get one unit that does everything instead of 3 or 4, all with different remotes.

Steve mentioned the SDK briefly but did not really go into detail about it, which surprised me. And no 16 GB iPhone or new MacBook Pros either. I was certain they were going to be there. Maybe Apple will just do a minor update to the 'Pros without fanfare later in the year. Steve said that there were a lot of things coming in two weeks but that "there are another 50" afterwards, implying that the announcements are far from over. No new cinema displays and no mention of the Mac Mini either. Some rumor sites have been saying for years that the Mini is about to be killed off but it seems to be the one thing that no-one ever talks about. I think if Steve were to kill it, he would have something better to immediately replace it.

So, in summary, a pretty good keynote. I don't think the stock will jump as high as it did with the iPhone announcement last year but I think this will go down well with investors.

Update: Apple's site has more details on everything announced at the keynote. Also check Software Update because iTunes 7.6 and QuickTime 7.4 are already available for download (at least for me - sometimes they stagger updates across geographic locations). Do not install these on your production machine! Be especially wary of QuickTime 7.4 if you do not have an up-to-date version of Final Cut Pro.

Update 2: View the keynote video online.

Also, Blockbuster and Netflix shares dropped significantly after the keynote. Surprisingly, so did Apple's. It turns out that people were somewhat disappointed with today's keynote. The Macbook Air is a well-designed machine but the price is somewhat prohibitive, which is a shame. If you choose the solid-state drive, it takes the price to over $3000. The price per GB of solid-state memory is falling significantly every year so it would not make sense to spend that much on the solid-state version right now.