iPhone OS 4.0 Press Event Liveblog

We’re live in Cupertino, California at Apple headquarters for the unveiling of iPhone OS 4.0, bringing you all the details as soon as we get them. Will the next iPhone software allow for multitasking, wireless syncing, and other repeatedly-requested features? Let’s find out.

We’re checked in and standing outside the auditorium with a throng of reporters. Show begins in ten minutes.

We’ve taken our seats inside in front of Sam Levin, our TUAW Buddy at these events. Apple wifi is good for now, so no need to leech off his Verizon card.

Asked to silence cellphones. Starting shortly. BTW, these updates are coming to you via an iPad!

Intro

Steve Jobs takes the stage, reads quote from wall st journal, USA today. Press back rubs for everyone! 450k ipads sold as of today. Some stores sold out, but we had no problems in our local Walnut Creek Apple store. 1 million iPad apps downloaded first day. 3.5 mil since Saturday.

Steve shows photo of a happy child opening her iPad.

App Store: 4 billion apps downloaded. 3 billion of them are Doodle Jump (just kidding)

Showing off apps, including games, kids stuff, work, comics, sports, etc. Visit Padvance.com for iPad lifestyle news and reviews (that is our plug, not Steve’s).

IPhone news: market share growing. 64% Internet mobile browsing is on an iPhone. 50 mil sold. 35 mil ipod touches.

User changes in 4.0: change wallpaper, gift apps, spell check. 7 tent pole features to be focused on. First: multitasking!

Multitasking

Steve shows us how the iPhone will multitask without killing your battery or performance. Double click home button shows currently running apps. He’s checking email, opening Ebay app, playing tap tap revenge. Apps load where you left off.

Scott Forstall demoes how Pandora will keep playing while you multitask. Here’s the founder of Pandora to discuss it more. Pandora demoed. Next feature: voice over IP via Skype.

Skype calls can be received and continued while playing games or using other apps.

Next use: Turn by turn directions from TomTom GPS. Pleasingly British lilt can interrupt your Bruce Springsteen mp3.

Background location: tell everyone where you are! In next breath, Scott says: We take privacy very seriously.

An arrow in the corner will tell you if an app you are running is sharing your location. You can also disable them one by one in the general settings.

Next: push notifications. New thing called local notifications. You don’t need a server, can be done on the phone. For example, a TV Guide notification will give you a push notification even if you’re not online (sort of like an alarm clock).

Next: Task completion. Takes a while to upload photos on Flickr, right? Now you can pop out and it’ll keep working in the background.

Folders

Make folders by tapping and holding. Name will automatically be generated by type of app it is, but you can rename it too.

Steve Jobs is now back on stage, multitasking between his games folder and his new denim-colored homepage background. I am so glad that the iPhone has finally caught up to Windows 3.1.

Email

Organize email, sort them by thread. Open attachments with an app from the App Store. Here’s an example from Omnigraff.

iBooks

iBooks for iPhone, with a free copy of Winnie the Pooh. All your books can be read on both iPhone or iPad, just download them again for free.

4 tentpoles down, 3 to go.

Enterprise

Scott’s on stage again. Features for businesses that use iPhones: “4.0 will have even better data protection”. Mobile device management. Wireless app distribution. Multiple exchange accounts on a single phone. Exchange Server 2010 support. SSL VPN support from Juniper and Cisco.

GameCenter

Social gaming network from Apple: Online leaderboards, invite friends for multiplayer. Coming later this year (so probably not at 4.0 launch with the rest of the features). Sorry OpenFeint, this is going to hurt.

iAd

Apple tries their hands at the Adwords thing. In-app advertising from Apple. Taking a bite out of Google now?

Emotions and interactivity are the goal here (combining web and TV ads). Steve says ads in iAd will keep you in your app. iAd is in the OS itself, so you can do interactive and video ads without taking you out of your app. You can return to your app anytime.

Our prediction? Money hats all around for Apple shareholders. This is going to be HUGE.

App owners get 60% of the revenue. Here are sample ads from companies Apple likes. Pixar’s Toy Story 3: This sample ad has sound clips and videos from Toy Story 3 streaming onto the phone. Plus, there’s a freaking game. In the ad. Steve still hasn’t left his original app. Buy link for the Toy Story iPhone game is inside the ad– we are floored.

Next: Nike. Badass video of Michael Jordan plays. Shake to cycle through pictures of Air Jordans. Shows locations of where to buy them.

None of these are actual ads, apparently. Just demos made by Apple because they like these other companies.

Next: Target. Play a video, build a virtual dormroom. Apple sells and hosts the ads, and 60% revenue goes to developers.

Preview available to iPhone developers today.

This OS 4.0 will work on 3GS, 3rd Generation. iPhone 3G and iPod Touch 2nd gen will run most stuff, but not all. No multitasking on those. Bummer! It’s coming to the iPad soon.

That’s the end. Q and A with the press is starting soon. Any questions you want us to ask?

We got in our question early: Will the Apple social gaming network supplant OpenFeint, Plus+, etc? Short answer, yes. Steve and Scott say that their system will be on every game, and there are no more individual groups of friends or games. So yes, OpenFeint et al are going to be obsolete.

Amazingly, they said that these same companies have actually been asking for these changes. We’re skeptical. These companies are asking for an end to their own business? I could believe that users want just one system for all games, but I can’t imagine OpenFeint or Plus+ would want their core business to commit hari-kari just because Apple steps into their line of work.

Our analysis? Those companies will need to shift gears, and fast. They have a few months (we suspect it will not launch with 4.0, but soon after) to dramatically change their core business away from friends list, achievements, and leaderboards. OpenFeint seems to have a head start, with their free app a day program– that may be the only aspect of their business that Apple won’t go after with this new gaming network.