10:12am - “I can have multiple SMS conversations. Here’s the conversation I’ve been carrying on [shows QWERTY keyboard on screen]. I’ve got this little keyboard that prevents error, it’s really fast to type on, faster than the little plastic keyboards on all those smartphones. ‘Sounds great, see you there.” Some predictive text it seems, he’d probably rock this thing faster with thumbs. “I can just pick up that conversation where I left off.”

10:13am - “The third app I want to show you is Photos — we also have the coolest photo management ever. Certainly on a mobile device, but I think EVER. Let me go to photos, scroll through here… to go through pictures I just swipe them. There’s one that’s landscape, I can just turn my device and there it is. I can swipe while I’m in landscape.” Audience guy: “Awesome.” Steve: “Isn’t this awesome??”

10:15am - “So photos, SMS, and the phone app — that is part of our phone package for iPhone. Really great call management, scroll through contacts with your finger, all the information at your fingertips. Favorites, last century [shows dialer], calendar, SMS texting, incredible photo app, the ability to take any picture and make it your wallpaper. I think you’ll agree… we’ve reinvented the phone.”

10:14am - I can just take my fingers and I can move them together and further apart, and make the photo bigger or smaller.” HUGE applause — touch gesturing apparently really hit a chord with these people.

10:16am - “Now let’s take a look at an internet communications device. We’ve got some real breakthroughs here. We’ve got rich HTML emails on iPhone. It works with any IMAP or POP3 email service. We wanted the best web browser on a phone — so we picked the best one in the world, Safari. We have Safari running on iPhone — it’s the first fully-usable browser on a cellphone. We have Google Maps.” Big applause.

10:17am - “We have widgets, it communicates with the internet over WiFi and EDGE — you don’t have to do anything, it connects to the WiFi seamlessly.”

10:18am - “It connects to any POP3 or IMAP email — Yahoo Mail, MS Exchange, Mac Mail… POP3: Gmail, AOL mail, and most ISPs… let’s highlight one, Yahoo mail. Today we are announcing Yahoo will offer free push-IMAP email to iPhone customers. This isn’t just IMAP, this is push-email, same as a BlackBerry.”

10:19am - “I’d like to show you mail, Google maps… I’ve got my inbox here, this is running live on Yahoo IMAP email. I’ve got inline photos, rich-text email. Let’s look at another one… again, inline photos, rich text. Shopping list, rich text, pretty cool. iPhone parses out phone numbers, they’re in blue and I can just call this place.”

10:20am - “I can look at my email in a split view, just like I’m on my computer. I like the fullscreen view — we have the standard inbox, drafts, all the folders, real email just like you’re used to, right here on your phone. Again, free IMAP email from Yahoo. Let me create an email message, let me show you what that’s like… I just type PH and boom, address completion.” He’s typing slowly… but hey, he’s only got one thumb since he’s holding the device for the demo. We can’t wait to see it in landscape.

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