Here’s my recap of Steve Jobs’ two hour Macworld keynote. The big announcements were new XServe & XServe RAID products, the long-rumored mini iPod, and lots of new software, but no new desktop or laptop systems.

Steve got on stage in his trademark black turtleneck, mentioned there are 60,000 viewers connected with broadband in 100 countries.

Steve talked about the 20th anniversary of the Macintosh, with a slide of the original Mac 128 and showed the original Mac brochure. He then showed the 1984 commercial. This will be “a great Mac year”.

Steve talked about Panther, Expose, iChat AV, and the new Finder. 9.3M active Mac OS X users, 40% of the installed base. 10M active users expected this quarter. This is the fastest OS transition ever. Over 10,000 native applications are available.

Final Cut Express 2: “Pro video editing for everyone” with real-time filters & effects. Five DV streams can composite in real time.

Microsoft Office 2004, introduced by Microsoft’s MacBU manager, Roz Ho & lead program manager Kris Barton. Kris showed Word’s new notebook view, quicksearch, creating Entourage tasks from Word. Formatting palette becomes transparent when unused. Word can record audio while typing. Excel introduces a fully editable page layout view, page setup in formatting palette with realtime feedback. Project Center integrated with all Office applications, Kris showed it in Entourage. Project Center manages files, schedule, contacts, notes, and everything associated with a project, and allows projects to be shared. Rules can automacially associate items with a project.

“The G5 is our future roadmap in processors”. Steve talked about Virginia Tech’s supercluster built on 1100 dual processor G5s, the world’s third fastest supercomputer. He then showed a video of the supercluster being assembled.

Steve introduced the G5 Xserve, 1U form factor with single & dual 2 GHz G5 processor, ECC memory, DDR 400 up to 8GB, up to 250GB of storage. Dual GB ethernet, FireWire 800, USB 2.0. Ships with Mac OS X v10.3 Server and unlimited user license. Basic server 2.0GHz single processor for $2,999, dual 2.0GHz for $3,999, “compute node” version for $2,999. Upgraded XServe RAID to 3.5TB of online storage – 30 percent increase. SFP connectors built in for Fibre Channel. RAID set slicing up to 16 per RAID, file expansion without repartitioning.

iTunes: 30 millionth song sold, close to 1.9M songs per week. iTunes Music Store has 70% of legal downloads. New features including Billboard charts, with the Top 100 for every year back to 1946 (which I noticed this morning), 1,000 Classical albums (12,000 tracks) added. Music store now has 500,000 songs. Steve announced Pepsi iTunes give-away starting Feb. 1, 2004.

iLife ‘04: Like Microsoft Office for the rest of your life. No iTunes update. iPhoto 4 now supports up to 25,000 photos with zero waiting, date based organization, smart albums, fast preview, Rendezvous photo sharing, rating, enhanced slideshow.

iMovie 4: trim clips directly in timeline, alignment guides, new & enhanced titles, import video from iSight. Sharing feature automatically exports to .Mac Homepage.

iDVD: 20 new Hollywood themes, enhanced menus, enhanced slideshows, navigation map, pro encoding – 2 hours at higher quality. Can now archive a project & burn on a different machine.

GarageBand: a major new Pro music tool for everyone. Turns yorur Mac into a pro-quality music tool & recording studio. Digitally mix up to 64 tracks, play over 50 software instruments, use over 1000 professional audio loops, record live audio performance, more than 200 audio effects, pick from vintage or modern guitar amps. Supports USB or MIDI keyboard. Steve invited John Mayer to demonstrate it. Steve then demonstrated what a non-musician can do with loops. John then demonstrated the guitar amp effects. GarageBand can export to iTunes.

iLife still sells for $49 including GarageBand. Free with every new Mac. Runs on Panther & Jaguar. Will be in stores Jan. 16. Jam Pack for GarageBand includes ver 100 more instruments, 2000 more loops, 15 more guitar amps, sells for $99. Apple will sell an entry level USB keyboard for $99. Steve then showed an iLife video featuring Elijah Wood, Tony Hawk, and Sheryl Crow.

iPod: 730,000 sold last quarter. Two million sold in two years. Number one in units sold & revenue in October & November. “We think the December numbers are going to be even higher.” 10Gb model upgraded to 15Gb at the same price. In-ear headphones for $39. Steve showed a new iPod ad. Steve then talked about flash memory MP3 players and wants to go after the high-end flash player market. He introduced the iPod mini, the second member of the iPod family. iPod mini has 4Gb, holds 1000 songs, 0.5 inches thick, and sells for $249. iPod mini is the size of a business card, has exactly the same user interface as an iPod, uses the same iPod dock connector. “one more thing” – it comes in colors. Will ship next month in the US, April worldwide.