2:51 PM: All done, thank you, that's it. (iLounge). Yes, we will be analyzing this later.

2:49 PM: The phone will be available July 11 in 22 countries (MacNN) They are now doing a commercial demo. There still might be one more thing.

SS: I believe we have just sold one to Joel, who is, may I remark, a T-Mobile user. After almost 10 years, he is leaving T-Mobile.

2:48 PM: $399 for a 32GB. (Vince) This was wrong!

2:48 PM: 16 GB for $299. White model will be available in 16GB (MacRumors)

2:46 PM: 8GB 3G MODEL WILL COST $199 (MacRumors)

2:46 PM: China is on the list! (MacRumors) This isn't supported by Apple's site

JSD: AAPL is "up" to $3 down, up from a low of $8 down-ish

2:44 PM: 12 countries for 3G version. 25 over next few months (Vince) 70 countries in next several months, including Malta (Engadget)

2:43 PM: Does tracking, works as a compass. Vince has funny photo of man scratching head, seemingly bowing before giant iPhone.

JSD: Reality Distortion Field (TM) is transmittable via Internets or Video.

2:42 PM: It's assisted GPS, using Wi-Fi and cell towers (Vince)

2:39 PM: 300 hours standby time; 10 hours 2G talk time, 5 hours 3G talk time (Engadget) Video 7 hours; audio 24 hours. GPS. (iLounge)

JSD: Me likey!

SS: So 3G reduces you to a drooling infantile state. And I didn't think the reality distortion field spread this far.

2:37 PM: 2.8x faster in the browser. 36% faster on page loads than Nokia N95 and Treo 750 (MacRumors)

JSD: More affordable+faster Internet=AAPL stock price goes up....now! Huh, it really looks like the leaked photos.

2:36 PM: Huge photos of 8GB 3G model on Engadget and Gizmodo. It's thinner, according to MacNN.

SS: I asked Apple to talk about call quality. I think they just did. Thank you.

2:34: Black back, silver sides, glossy black plastic back. Solid metal buttons, same screen, headphone jack flush. Dramatically improved audio. (iLounge)

2:33 PM: Today introducing the iPhone 3G.

2:33 PM: On Engadget, you see Steve is using a giant photo of Vince Nguyen to illustrate the iPhone's success. Talks about how "3G" is one of the new challenges for the iPhone. Also, "More affordable."

2:30 PM: Steve's back on stage. Talking about iPhone's first birthday. I do believe we are about to announce us some hardware.

2:28 PM: You update stuff anywhere (on Web, PC, iPhone), it pushes to all the other places. Woot. $99/year, replacement for dot-Mac, 60-day free trial, 20GB of storage. (iLounge) Offered in early July, same time as iPhone software.

SS: Oh Mobile Me, oh Mobile Me, you're cool but not what we wanted to see, if you're today's big product, investors will flee, oh Mobile Me, oh Mobile Me.

JSD: OK, back to MobileMe: so you'll likely have to download Safari on a PC to use the Ajax-Web 2.0 features with Apple's unified interface

SS: Softbank will not be pleased.

JSD: This is really starting to turn into a WWDC of old: no hardware!

2:23 PM: Apple's stock is still down $7 (JSD)

2:22 PM: Email addresses end with "@me.com". (Wired) It makes Outlook Web Access look like crap (PopMech). That wouldn't surprise me, but then again. I use Exchange 2000.

2:21 PM: You can send photos to MobileMe from the iPhone, and store documents in there and access them from anywhere. (iLounge)

2:19 PM: And they just said a phrase I hoped never, ever to hear. "We've built an incredible suite of Web 2.0 apps using Ajax." (Engadget) Auuuuuuugggggghhhhhhh!

Me.com has contacts, calendar, all that stuff.

SS: I am beginning to lose focus. Must be lack of hardware. Stay focused!

2:16 PM: Syncs contacts, calendars and emails between Macs, PCs and iPhones over the air. (Giz) It's push, not pull. Works with iCal, Address Book, Mail, and Outlook.

2:15: And now something new. MobileMe! "Exchange for the rest of us." (MacRumors) It still isn't hardware.

JSD: "Distributed through their intranet". So no need to make iTunes part of the corporate build. IT folk around the world breathe a collective sigh of relief.

2:14: Enterprises can distribute apps just to their employees, create restricted apps and distribute them solely through their intranets. (MacRumors)

2:11 pm: Parental controls and broader language support (MacRumors) App store will be in 62 countries, you can download apps under 10MB over cellular; larger apps require Wi-Fi or a PC/Mac connection. (iLounge)

2:10 pm: iPhone software available early July. Free for iPhoners. $9.99 for iTouchies. (MacRumors)

2:09 pm: More software news. iWork document support with read, but not write (Giz). Word, Excel and Powerpoint support. Bulk delete/move, scientific calculator, saving pictures from emails. Finger drawn Asian character entry (Giz).

2:08 pm: The (repulsive kludge) functionality will be available in September (MacRumors). Steve is back!

SS: Ick! Repulsive kludge that requires middleware! Blecccchhhhh!

2:06 pm: The answer: a push notification service, where Apple runs a server that pings Apple's notification service and pushes alerts to your device.

2:04 pm: Apple doesn't like background processes, they take up memory and processor cycles. Also, they necessitate nasty things like task managers. (Engadget.)

2:02 pm: Apple wants to solve the problem of supporting applications that run in the background. (MacRumors). Stock is down $7.

2:01 pm: Another demo. Another game. Digital Legends Entertainment. (Vince) But this may be the last one. Their fantasy action game, Kroll, will be ready in Sept. (MacNN)

1:59 pm: Engadget says Apple's stock is down by nearly $5 since this keynote started. And no, there is no date for the App Store release. Or for anything.

SS: That would be a sad thing, because it would mean Apple is keeping apps locked out because of arbitrary business deal issues.

JSD: One thing that comes to mind: Maybe the MLB deal is why Sling doesn't have a Private SDK license.

SS: I am beginning to sing, "There's No Hardware" to the tune of "Old Man River." You are SO glad this isn't a podcast.

1:54 pm: Modality, a medical app. SS: Too vertical for me. JSD: If it keeps me vertical, I'm all for it.

JSD: That also means that you can't count EDGE out (yet), especially if all this stuff works on the iPhone 1.0

SS: Oh, you bet, all of these iPhone 2 features work on the old hardware.

1:52 PM: MLB's video quality is based on your network bandwidth (MacNN) - could this be a hint of a 3G friendly application? Everyone is so desperate to hear about hardware, it's just sad. MLB will be included in the App Store at launch, no visible word on price.

1:51 PM: MLB.com baseball information app (Engadget) MLB At Bat app will offer real time video highlights, a unique feature (iLounge)

1:49 PM: Wired notes that the AP app uses the location API to catch local news for wherever you're standing. Way cool. Now we get another game, called Band, developed by a guy in his spare time (Vince). One of the themes going on here is how easy it is to develop apps, so the spare-time guy is sort of a poster child for that.

JSD: Remember Sascha, that the desire to be "known" sometimes overrules the part of the brain that governs where your next meal comes from.

1:47 pm: Games will be $9.99 from the App Store, says Giz with many action photos. Seems like that may be a standard price.

JSD: Associated Press is good for news junkies: you'll be able to the news from the feeds that other journalists use. The news submission feature will be tested throughly at the next big event, whether that's a disaster, concert, or happening.

1:45 pm: Pangea Software shows two games (Engadget). Ryan from Engadget is desperate to see hardware; aren't we all?

SS: You know, as a professional journalist, I've been bemused by this whole "CNN iReporter," send-in-your-news stuff. I wouldn't send in my news to anyone who isn't paying me. It all sounds like, "Do work for us and don't get paid!"

1:43 pm: iLounge is on a roll! The Associated Press is creating a news consumption and submission app called "MNN," also free. Lets you access news from around the world and send in news reports, too. "Mobile News Network" (MacRumors)

1:40 pm: About TypePad, from iLounge: "TypePad on iPhone is simplified to create post editor, photo taking, or adding a photo. It basically streamlines the e-mailing, camera use, and adding of photos from collection processes direct over to TypePad. You can now add multiple photos to an e-mail to send to TypePad - looks like this is a feature available to standard Mail too. Appears on your blog web site. App will be free at App Store launch."

Popular Mechanics is, like, 10 minutes behind. Then again, for all I know we are too.

1:39 pm: Next is TypePad, a mobile blogging app. (Engadget, iLounge)

JSD: Loopt: There you go, Core Location for social networking! So you can avoid the conversation: "really? you were at the Mall this afternoon too? Cheating spouses beware!

1:36 pm: Hey, it's another potentially GPS dependent app - Loopt, a location aware social network (MacRumors). You may be familiar with Loopt if you use the prepaid carrier Boost. WHERE YOU AT??????!!!!!!! It will be free on the App Store at lunch (Giz)

1:35 pm: eBay app will be available for free at App Store launch (MacNN)

SS: You can find out the resale value of your purchases before you buy them. It's the perfect app for our wintry economic climate.

JSD: eBay on the iPhone: So I can shop while I'm at the mall shopping? What will this do to the space/time continuum?

SS: I've heard a rumor that Apple is pressuring developers to not make their apps be free, because Apple doesn't want to have to distribute apps that they don't get any revenue from. If so, ick.

1:32: First game! Super Monkey Ball from Sega will be available at the launch of the App Store for $9.99. Now demoing an eBay app. (iLounge)

1:30 pm: Developer testimonials. People are developing for the SDK. This we know. They also have a testimonial from David Pogue, The Other Guy Who Has An iPhone 2 Right Now.

SS: Apple ego + Qualcomm ego = FAIL (obscure phone geek reference to impossibility of Verizon version)

JSD: Hey, Maybe a T-Mobile, Sprint, or shall we dream, Verizon contract is the "One More Thing"?

SS: Several bloggers are reminding us, and we will remind you, that this is a technical developers' conference and so that's the core audience. Also, typically, Apple does not announce new products until they're 30 or 40 minutes into a keynote. Okay, people?

1:24 pm: Giz has a good 'summary photo' of cool API bits, check it out.

JSD: Core Location: Big Brother? Nahhh... Social Networking!

SS: Depends on whether it's operated by AT&T or Apple. And now I'm back to the most depressing thing about the iPhone, the AT&T contract.

1:21 pm: And Popular Mechanics comes through! Apple has an API called Core Location that provides rich services for location-based services, they say. That means GPS.

JSD: it is the Developer's Conference after all...

1:19 pm: Now, Scott Forstall talks about some very geeky stuff involving the SDK. Yes, the iPhone runs the same OS X kernel as the Mac.

SS: Heh, Windows Mobile has had that for a while now.

1:17 pm: MacRumors: Demo of new feature, contact search which filters contacts as you type.

JSD: 35% of the Fortune 500 is a significant number. Blackberry should be "mildly interested" in that stat. But not worried.

1:15 pm: Big push for iPhone in the enterprise. 35% of Fortune 500 have been using it. Now, the live guys are watching various testimonials from CTOs about how much they lurve it. Engadget: "The top 5 banks, top 5 securities firms, 6 or 7 top airlines, 8 of 10 top pharma, and 8 of 10 top entertainment companies."

1:13 pm: They admitted 4k out of 25k applicants to the iPhone developer program (Engadget, who now has rockin' photos.)

SS: Poor Sling Media.

1:12 pm: (Giz) Apple's started the iPhone SDK developer program 95 days ago, and had 250,000 kits downloaded, 25,000 apply to the program, and 4,000 admitted to the program. (iLounge) Running down the iPhone 2.0 stuff we learned in March - Exchange, SDK, etc.

1:11 pm: The three businesses are "Mac, Music, and iPhone".

JSD: If it's minor, make it free!

1:09 pm: Steve says 5200 attendees, 85 Mac sessions, 62 iPhone sessions (iLounge). MacNN seems to be hosed. First one down! MacRumors says it's 52 thousand attendees, but I think that's a typo. MacRumors: They'll be talking about Snow Leopard after lunch.

1:07 pm: iLounge says there's a lot of empty seats. Steve's here. It begins.

JSD: So, old-school Rock&Roll music, can I finally predict one of the Beatles as the "One more thing?"

SS: "One more after 909."

1:04 pm (SS): There are two iMacs on stage. The music being played is older stuff, like Bo Diddley, rather than the usual Coldplay and U2.

1:01 pm (SS): Giz says Walt Mossberg has a VIP badge rather than a press badge; I assume that's the "I already have an iPhone 2, nyah nyah" badge. Vince reports that Al Gore is in the house.

12:56 pm (SS): OK, for the straight men and gay women who are reading, quick! Mac geek vs. sexual being test! What do you immediately look at in this oddly framed Gizmodo photo?

JSD: Don't forget there's the rumored "Snow Leopard". If, as the name suggests, this is a minor update, I REALLY hope that they give it away free instead of charging $129 again.

12:55 pm (SS): I note that Wired is using Sprint's 3G EVDO to update their blog. Wonder if anyone's using AT&T?

JSD: So Sascha, aside from 3G, the new iPhone OS, and improved voice quality due to the 3G network, what are you looking forward to today?

SS: Well, there's GPS. But there also needs to be a big, new, radical surprise. I'm hoping for a major reinvention of dot-Mac into "Mobile Me," some sort of super duper cloud computing mega-sync-ness that goes right up against Google's apps, Glide, and those sorts of guys. Making the iPhone just another window to your data.

12:43 pm (SS): Doors are open, they're going in. Isn't it sort of absurd that we're updating a blog with facts like "doors are open?"

12:35 pm (JSD): Looks like they're being let in. Jason from Giz is updating from his iPhone.

12:20pm (SS) Highlights from the coverage. Engadget remarks that MacBook Airs are popular in the media. Mac Observer says there's applause, for no apparent reason. Vince is ready to rush the door.

12:15pm (JSD) The hordes have descended. The Gizmodo folk are humorously noting that the Moscone "smells like a San Francisco Bus". Aren't you glad you're in your cube right now?

10:53 AM ET: Vince Nguyen has photos. MDN is building a decent list of mainstream magazine articles that came out today.