Keynote: iPod

733,000 in holiday of 2003. 4,500,000 in holiday of 2004.

That represents a 500% growth year-over-year, and represents 10m sold total, with 8.4m in 2004. Steve holds up the 10 millionth iPod produced, which will be kept instead of sold.

Amazon's top 5 consumer electronics products, three of which are 20G iPod, silver iPod mini, and the iTunes gift card.

iPod adapters will now be available this year from Mercedes Benz, Nissan, Volvo, and Scion. In Europe Alfa Romeo and Ferrari will also have adapters. Mercedes has brought two new cars (the new SLK and CLS) with adapters on the show floor.

Steve show some slides of new Motorola phones and the iTunes client on them.

"But there is one more thing..."

Jan 2004, iPod had 31% market share, and flash held 62%, and "the wannabes" held 7%. Now iPod has doubled it's market share, but we want to go after the remainder.

Most flash devices use disposable batteries, tortured user interface, and very small displays. "And then we saw it...it was clear as a bell...shuffle."

The iPod shuffle is smaller than most packs of gum, weighs about as much as four quarters (<1oz), and has a simple click wheel (and no display). It has a cap hiding a USB 2 port, and a 12 hour battery. There's also a lanyard that uses the cap interface to wear it around.

"But that's not the whole story." iTunes now features an Autofill button to pick a playlist to precisely fill the iPod shuffle. It also allows for disk use for quick data transfer. iPod shuffle will come in both 512MB ($99) and 1GB ($149), and they will ship TODAY!

There are Apple accessories, including an armband, a dock, a sport case, and a surplus battery pack (uses AA). All of these will be $29 and will ship within the next four weeks. Steve now shows off the new TV Ad, with similar styling, dancers and with a giant shuffle symbol (two crossed arrows) swirling around.

Steve asks us all to thank everyone who's breaking their backs to make these unbelievable products.