12:15: He's reporting that there are 4 things he wants to talk about.

1st thing is that the latest Mac OS, Leopard, has moved 5 million copies, best OS-X release! Talks about the love the OS has gotten and how many people (20%) have upgraded...

12:18: A new feature is Time Capsule: it's Time Machine for notebooks. It's a wireless base station with a server hard drive, $299 for a 500gb version. No excuse not to back up.

Also, showing an advertisement talking about Time Machine (Tobias: Apple needs to demonstrate the OS's neater qualities, this is a good thing).

12:22: Second thing Steve wants to talk about is the iPhone. It has been for sale for 200 days and sold 4 million.

12:23: Apple has 19.5% of the smartphone market.

12:24: People are excited about the software developers kit that will come out this February to allow people to make apps for the iPhone.

12:26: Apple has some new apps for the iPhone: maps with your location, some home screen customization, and the ability to SMS with multiple people.

12:27: Apple's stock is now over $175.50, steadily going up since 1/2 hour before the keynote.

12:33: These new apps will be available as updates to all existing iPhone users...

12:34: Surprisingly the iPod Touch gets some new applications as well. Stocks, Notes, Weather, Mail, and Maps if you shell out $20 to slap these new apps on it.

12:36: Now Steve would like to talk about iTunes as his third thing. 4 billion songs have sold through it.

12:37: While iTunes has sold a lot, selling stuff hasn't met expectations. So here comes iTunes movie rentals!

12:38: According to MacRumorsLive.com "Every major studio is on board." (Tobias: that's huge, as we will finally have a full section digital movie download service. I'm surprised to see everyone on board. Apple's been busy.)

12:41: 1,000 movies to choose from (Tobias: a start, I think they'll need more.) and they're available 30 days after DVD release (Tobias: instant would be better...)

12:42: Takes 30 seconds to begin a movie, you have 24 hours to watch it, and it's $2.99 regular, or $3.99 new releases...

12:45: Launches today. Apple TV is being revamped. You can rent movies on it, it's DVD quality, you don't need a computer, it's its own stand alone device. Get your podcasts, photos, your whole digital media life straight to your TV.

12:47: Wall Street doesn't seem too impressed, Apple stock is $172 now.

1:00: Apple TV is a free software update, the device is dropping from $299 to $229 (Tobias: ah, magic $199 price point missed! Oh well.)

1:03: 20th Century Fox CEO is up on stage talking up the partnership of delivering digital rentals and it is mentioned that Fox was was the first to get involved in the new iTunes movie rentals.

1:08: Here's Steve on the stage talking about a 'fourth thing.'

1:09: A third notebook, the MacBook Air has been announced. The thinnest notebook, Steve says.

1:10: Less than inch, way less than in inch, with .16-.76 of an inch varying, 13.3" widescreen, no lost performance when compared to traditional compromises to get this small...

1:14: LED backlit display, iSight, multi-touch trackpad, full sized keyboard, can fit in a letter sized envelope!

1:15: You can get a solid state hard drive. The laptop has 1.6 GHZ or 1.8 Intel Core 2 Duo.

1:18: Apple asked Intel to shrink the Core 2 Duo processor, so they did... Intel CEO up to talk about that.

1:20: There is no optical drive (DVD, or CD), but it can wirelessly use another computer's (mac or PC) drive using software that comes with. It also has 5 hours of battery life.

1:25: You can order it today for $1799, ships in a couple weeks.

1:27: It's 3 pounds, btw.

1:28: it's more green than prior laptops, taking up less packaging, has an aluminum case, and mercury and lead free display.

1:30: Randy Newman is performing for the audience...

1:40: Apple.com has the MacBook Air on it's main page now.

1:45: It's wrapped up. No big iPhone announcement (3G was expected), but a rather nice new Mac product itself. Seeing as that Apple stock price jumps based on major iPhone or iPod news it looks like Apple's price will continue middling about the way it has unless indications come that the MacBook Air is a huge, huge seller...