Steve Jobs took the stage and told the audience that "this is a day I've been looking forward to for two and a half years".
"Every once in a while a revolutionary product comes along that changes everything ... one is very fortunate if you get to work on just one of these in your career. Apple's been very fortunate because it's been able to introduce a few of these - in 1984 the Macintosh changed the whole computer industry. In 2001 we introduced the first iPod, and it didn't just change the way we listen to music it changed the entire music industry."
The iPhone, he says, is going to do the same again. And it certainly seems impressive; the built in Wi-Fi, touchscreen, input technology, OS X build and makes it quite remarkable. And watching Jobs demonstrate some of the - such as "pinching" images to make them smaller - it seems like an incredible achievement.
Hey, it's even got a proximity sensor that turns off the screen when you put the phone to your head. That should help with battery life.
Unfortunately I've had to dive out of the just before the end of the keynote (I know, I know) - but now it's time to go and have a look at what else they're saying.