11:49 a.m.

Steve's wrapping up, previewing some of the WWDC sessions. "Go make some great products!"

11:47 a.m.

Steve shows the new ad, which has security guys carrying a cool metal case. This was definitely the ad secretly shot in the middle of the night at the 5th Avenue store. They're emphasizing it as "the first phone to beat the iPhone," emphasizing the data speed and the low price.

11:46 a.m.

Worldwide launch (or at least the first 22 countries) on July 11 for "a maximum of $199." Hmm... we'll see for the UK.

11:45 a.m.

Price rumors are true. iPhone 3G 8GB is $199. 16 GB is $299. They're also making a white 16 GB model. No 32 GB model, which was my biggest hope. Ah, well. Wait until the fall for the 32 Gig model.

11:43 a.m.

iPhone has Enterprise support. Yes, we know Steve. Now the countries for launch: 70 countries, including 3 in North America, 15 in South America, 29 in Europe, and India, Japan, Australia and the Phillippines. Only major markets not included are South Korea and China.

11:39 a.m.

GPS confirmed. Yay!

11:37 a.m.

Great battery life, too. 300 hours standby, 10 2G talk time, 5 in 3G, 5 to 6 hours of mobile browsing, 7 hours of video, 24 hours of audio.

11:35 a.m.

iPhone bakeoff, 3G v. EDGE. 3G loads the Apple homepage in 21 seconds, 59 seconds on edge. 2.8x faster. WiFi did it in 17 seconds. 3G almost at WiFi speeds. "It's amazingly zippy." Other 3G Phones, N95 and Treo 750, they took 33 s and 34 s. and the other phones don't look likethe web page. 36 percent faster.

11:33 a.m.

Big changes. Thinner. Black plastic backing. Dramatically improved sound, flush headphone jacks.

11:32 a.m.

Steve officially announces iPhone 3G. Mad cheering.

11:31 a.m.

Steve outlines challenges.

1. 3G

2. Enterprise

3. Third-Party application

4. More countries

5. More affordable. Fifty-six percent of people who didn't buy iPhones said they just couldn't afford it.

11:29 a.m.

Steve is raving about existing iPhone success. 90 percent success rate, 98 percent mobile browsing, 94 percent email, 90 percent SMS, 80 percent using 10 or more features. He's really milking this moment. They have sold 6 million iPhones, "until we ran out some number of weeks ago."

11:28 a.m.

Steve is finally back on stage. Puts up a visual of iPhone's first birthday cake. Here we go.

11:27 a.m.

Mobile Me officially replaces .Mac. Existing users are automatically upgraded, and service is $99.95 per year, as ever. Interesting play.

11:25 a.m.

Shockingly little Steve in this keynote. We're coming up on 90 minutes, and he's been on stage for no more than 10. This is the complete opposite of the original iPhone introduction in that regard at least. I'm impressed with Apple's overall focus on Push technology. From my sense, this is the tech that they're taking mainstream with the new version of the iPhone. Everyone, not just executives, are going to do Push for everything. It's all very interesting. Still, Steve needs to make with the new hardware in the next couple of minutes...

11:22 a.m.

This Mobile Me demo is really long. It's very cool, and the Push stuff works well, but I'm just waiting for Phil to announce how much it is. This is definitely worth a heck of a lot more than the existing .Mac offering, but its value is limited for anyone who has to use Exchange at work -- this doesn't allow you to combine calendars, from what I can tell. Work and Life are blending, and this keeps the two sort of hived off from each other, which is a problem for accurate meet-ups. I do agree with Phil's assessment that these look like true desktop applications, and it is impressive how well this should run on Windows, not just on Macs.

11:15 a.m.

Phil Schiller onto demo the now-confirmed "MobileMe" service. Which is basically widespread Push syncing of everything, from multiple computers to iPhone, etc. Phil calls it "Exchange for the rest of us." It also works with Outlook. Great web service as well, called Me.com Rich e-mail. Keep talking about how it feels like a desktop application. Basically, this is a nicer version of Mac.com. It is tremendously nicer, but I don't know how much. It does make Exchange Web Access look like crap, I'll give them that.

11:14 a.m.

Sorry for the downtime -- battery swap. Basically, Steve just announced that Enterprises can now distribute apps on their Intranets, and that ad hoc distribution for up to 100 iPhones will also be allowed. iPhone 2 will ship in July, and will be free to iPhone users and $9.95 for iPod Touch users.

11:05 a.m.

Steve Jobs is back on stage finally. Introducing new features for the software.

1. Contact search (ABOUT TIME! This was an embarrassing omission the first time around

2. Full iWork and MS Office support for viewing - hard to tell if editing is supported.

3. Bulk delete in mail.

4. Calculator has landscape support.

5. Parental controls to turn off explicit content, no more YouTube or iTunes, etc.

6. Tremendous language support addition. Added two forms of entry for Chinese and Japanese, including character sketching with your finger. On-the-go language swaps.

11:00 a.m.

One more thing from Scott. Developers want notifications, even if you aren't running the application, ie: eBay, instant messaging, etc. Scott says the wrong solution is background processes. It kills battery life and performance in other applications. Microsoft uses a task manager with a horrifying interface in Windows Mobile. "This is nuts." They're providing Push notification to all developers. You can push sounds, badges, requests. It'll be ready in September. Maintain performance but also make other stuff work.

10:58 a.m.

Tiny developer from Barcelona, Digital Legends. Showing a very cool 3-D adventure game. Two week port from previous platform. All touch stuff. This really looks console quality. This is called Krull and should be ready by September. That's definitely going to close the demo segment. WHICH WAS AN HOUR LONG.

10:54 a.m.

Here's MIMVista, a medical imaging company. Mark Cain presenting. He extolls the value of interface in medical imaging. Showing off a CT and PET Scan simultaneous. One finger slides to check at various depths. This is unbelievable. I've never seen an app this good on a computer. After one week, they had a prototype and a product definition. Three weeks later, they had it done. Lots of doctors are going to use this tool. We're going to see iPhones in every single hospital in America -- and not just for goofy purposes. I can't imagine a cooler thing than patient and doctor both using this thing. "The iPhone represents a new direction for our company." That's really powerful stuff. I have to say, I am getting swayed that the iPhone is a serious development platform for serious applications that aren't possible on a desktop or laptop.

10:51 a.m.

Here's Modality to show off an application about "creating more doctors." Dr. S. Mark Williams to show it off. They started with the medical illustration book Netter collection. Better than using flashcards. Hundreds of anatomical illustrations in your iphone, you can zoom or pan. Funny moment: Dr. Williams says, "Imagine doing this on any other mobile device." Someone laughed hard enough to disrupt the presentation. This app won't just be for med students -- they'll have a wide suite of educational content in this form soon.

10:50 a.m.

MLB.com now offers live video of all baseball games at any time, anywhere. Very cool. If you like baseball.

10:47 a.m.

That's the hit of the show: "Band" by Mark Terry. it's a suite of simple instruments, from pianos to drums to guitar to bass. It looks fun, easy, an totally hilarious. All that, and it was developed by a part-time developer who works in insurance. Totally inspiring.

10:43 a.m.

Brian Greenstone of Pangea has ported two games from OS X to iPhone and "made them better." First is Enigmo, their physics-based puzzler that my nephews love. Very cool. Touch rotation, interaction, everything. He's talking about awesome 3D performance. Second game is Cro-Mag Rally, a classic Caveman racing game which always looked great but always had horrible steering on OS X. I'll be very interested to see how this performs using tilt on iPhone. "The iPhone is the steering wheel." Control looks phenomenal. I'll be getting this. Also $9.99 each. That's the game price point, apparently.

10:42 a.m.

These are interesting, but I would really like to get beyond the apps roadshow soon. We've been here for 40 minutes and don't have a hint of new hardware yet.

10:39 a.m.

Here comes the Associated Press. They've built a native application, and Benjamin Mosse is demoing it. "The Mobile News Network." Here's the nice thing: you can either get the new feed of all new content from the AP, or you can set up lots of different local news feeds -- including your current location. You can also swipe through the latest photos to the stream, as well as video from the network. At least on WiFi, it comes through really fast. They also allow submission of photos and text for field reporting. Benjamin: "We've loved working for the iPhone." Which is perhaps a little bit Freudian. We all work for Apple now, I suppose.

10:36 a.m.

Michael Sippey for TypePad. Nice simple text-posting, or insta-blog with a photo you take in the moment. You can also pull from your album library. Once you select a picture, you can then add in text. Category selection. This is great. I hope WordPress does something similar soon, since it's so much more widespread. This will be free at launch of the App Store.

10:33 a.m.

Up comes Sam Altman from Loopt, a location-based social network. Connecting with people on the go. Integrated with maps. "This is the best version of Loopt we've ever made." "This is the best and most powerful." Loopt is sort of like Facebook with locations and more phones. It's kind of psychotic, but really impressive. You can get directions to your friends and sync up for lunch. It will be free at launch.

10:31 a.m.

Here comes Ken Sun from eBay. They've build a native app called Auctions. He notes that iPhone is the number one mobile platform for ebay. Easy search, one-touch bid info. Integration with WebKit. Can add to watch list or bid. At a glance views of status of various watches and bids. Simple and elegant, maintains login details. Built in slide-show application for pictures on eBay. Nice, and it's going to be free.

10:29 a.m.

Ethan Einhorn from Sega comes on-stage to demo Super Monkey Ball for iPhone. It has 110 levels. He's showing the last level. The tilt control is amazing. A Sega developer just navigated it flaw lessly. This is going to be totally hot. And Sega developed it absurdly fast. And it's $10. That's great, great stuff.

10:24 a.m.

OK, there we go. He hit "Nearby" in his app and it filtered down his address book to other people located within 10 miles of his current position. Granted, it's based on their addresses, not their phone locations, but it's pretty slick. Still no hint if it's GPS or not.

10:23 a.m.

Scott's emphasizing simplicity. He hasn't shown location-based services yet. It would really be nice to see soon.

10:20 a.m.

Scott is demoing how to develop an app with LBS. He's linking up the Address Book and Core Location for a new app. interface Builder for iPhone is amazing. I could build an application with this thing. I wouldn't say it would be any good, but I could do it.

10:19 a.m.

Sorry for the initial lag, folks. I think we have it straightened out now.

10:17 a.m.

Scott just provided a big hint of things to come: Apple has an API called Core Location that provides rich services for location-based services. Can you say GPS? I knew you could!

10:16 a.m.

Scott Forrestal of iPhone software development team takes the stage. He's here to talk about the APIs (which we've heard before). Get this: OS X iPhone is advanced! I'm way more excited to see him demo some new apps.

10:13 a.m.

Steve shows a fun video with execs from Disney, a big law firm and the U.S. Army, being excited about iPhone enterprise support. Phew. Time to catch our breath.

10:11 a.m.

Steve says his focus will be iPhone. He starts by covering most of what we know about iPhone 2.0 software: Enterprise, new apps, and new end-user features. Initially, he talks about the success of the beta program. More than 250,000 SDKs downloaded, etc. Now he says 35 percent of the Fortune 500 has participated in the Enterprise beta -- the corporate world IS ready for iPhone, to put it mildly.

10:08 a.m

Steve comes to the stage. First big announcement: Apple SVP of OS X Software, Bertrand Serlet will preview the next rev of OS X, now confirmed as "Snow Leopard," this afternoon.

10:02 a.m.

An announcer just came on to request that people turn off all "Cell phones, PDAs, and iPhones." Classic Apple humor.

10:00 a.m.

The appointed hour has arrived, but Steve hasn't. Each time a song ends, people are standing up to look for Steve. Then another song begins. It's quite hilarious.

9:54 a.m.

We're ready to go -- the crowd is enormous -- 1,000 at least in a not terribly large conference room. We seem to mainly be waiting on a few straggler VIPs at this point. The scheduled start for the keynote is 10 a.m. Pacific, but Steve's always 5 to 7 minutes late, so don't freak out if nothing gets announced by 10:01.

9:37 a.m.

Hi everyone, I'm Pete, guest-blogging from CultofMac.com. I'm currently at San Francisco's Moscone Center West, waiting for the giant garage doors that stand between a horde of media and Steve Jobs to open. It's all run-up for now, but we should be rolling in about 20 more minutes. Keep refreshing for new content throughout the keynote!