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Friday, March 1, 2002
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Beyond the cool package, how does the new iMac fundamentally differ from a conventional desktop PC with digital video and DVD capabilities?

It’s designed around the popular LCD display monitor, but unlike other PCs, the new one doesn’t house all the workings behind the display. All the “guts” are housed in the base and connected to the display via the “neck” or “arm,” which makes it far more efficient and flexible.

The iMac is all about simplicity. With people spending more and more time on the computer, they can easily adjust the display position as their own positions change during the day. Or they can adjust it to accommodate children (no more pillows) or multiple viewers. On the technical side, we added the Super Drive, a G4 processor, more USB ports, plus software like iPhoto, iMovie and iDVD. These features address the fact that a growing number of people have devices like digital cameras and camcorders, and they want to manage their photos, music, et cetera more effectively. We also allowed for the highest resolution graphics (through an nVIDIA Gforce2 MX graphics chip), so games and other images are excellent.

Basically, this iMac represents everything coming together — design, hardware, software — you plug it in and it works.

Apple refers to the iMac as a “Digital Hub.” Is the idea to design a more complete, all-in-one entertainment system? Allow a kind of “convergence” where all you really need is your PC?
To an extent, yes. The base is so tiny (10.5 inches), and has an elegant look, so it’s suitable in the den, the kitchen — anywhere in the house. And our idea was to make all the computing devices come together: you can make a DVD, a photo album or a CD all on one unit — easily. But it’s not intended to be substitute for a TV. We know that TV viewing is a more passive activity — you get the remote and sit on the couch. The new iMac is designed with more creative and interactive pursuits in mind. So, convergence of computer activities was more our goal than convergence off all home entertainment.

To what extent are you creating a new kind of user?
I think we’re already seeing a new kind of user, in that more and more people are playing with digital still cameras, DV camcorders and the like. But they want to do more with these devices, and they want to do it more efficiently. With this iMac, we’re providing the enabling device that allows the consumer to do that. So, rather than creating a new user, we’re responding to the demands of existing users.

By offering improved DVD and CD-burning capabilities, how do you handle copyright issues now and in your future product roadmap?
We think about copyright all the time. Apple itself owns a lot of intellectual property, so we have the highest respect for the copyrights of others. As a result, our Super Drive will simply not allow you to duplicate commercial DVDs. Any photo or video images you take are yours, of course, and you can burn them into a DVD, but you can’t rent a DVD at Blockbuster and come home and make a duplicate on your iMac. In fact, Apple was recently selected for a Grammy in music technology, so the music industry appreciates our respect for its intellectual property.

How did you manage to meld aesthetics with practicality, in terms of cost of production?
Actually, it wasn’t easy. It was particularly hard to make the display virtually weightless and frictionless while trying to ensure a reasonable price for consumers. But I think we’ve done a good job of succeeding. A year ago, a system with DVD-burning capabilities cost $15,000. The new iMac runs from $1,200 to $1,700. Essentially, we used materials that were the most functional and attractive, yet not exorbitantly priced. Every single part has a reason or purpose beyond making it look pretty.

How do you fit into the overall marketplace for PCs?
Frankly, I think we make the best computers in the industry. Apple essentially defined the all-in-one computer. We’re the only ones that make the hardware, operating system and application software, and combine excellent design and performance. The original iMac was a defining moment, and we’ve just taken things from there.

How do you balance the traditional notion of buying a PC (according basically to the speed of the chip, amount of RAM and size of the hard drive) with what you have to offer?
The main thing to look at is overall solutions. There’s more to a computer today than megahertz and speed, and people with the latest digital devices can do a lot more with a Mac than any other computer. For instance, Compaq, Dell and Sony all offer DVD-burning capabilities. But their software is just awful, and there’s nothing like iMovie, iPhoto or iDVD. Also, with the Apple retail stores, people can go in and experience the iMac – it’s all about feeling it, and adjusting it physically to your own needs.

What kind of consumer did you have in mind for the new iMac?
When we began designing it two years ago, we were looking at future trends. It became clear that consumers wanted to use their computers as a digital hub. We spoke to people, and they were telling us that managing their digital photos was really cumbersome, for instance. The photos were all over the hard drive in unrecognizable files, et cetera. So we developed iPhoto as a perfect solution. The same went for other functions.

But are you going beyond the demographic of the “Mac connoisseur”?
We are actually attracting a whole lot of Windows users. In fact, 40 percent of people who bought computers from our Apple retail stores had never owned a Mac before. And I think the trend will continue.
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