The first update is iPhoto ’09. nn

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Faces will sort photos with face recognition technology.nnn

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Demoing face recognition features.nn

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Another feature is called Places, which uses GPS geotagging to organize photos. It collaborates with digital cameras and the iPhone to embed geotags into a photo.nn

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iPhoto synchs with Facebook and Flickr to let you upload photos from iPhoto directly to Facebook or Flickr with a new button.nn

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Places allows you to tag photos by geographic location.nn

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Next up is a new version of iMovie. Schiller says a precision editor, a drag-and-drop feature that lets you layer movies, new themes, animated travel maps, and image stabilization were missing from last year’s version. But no more.nnn

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Randy Ubillos, creator of the new version of iMovie, shows off drag-and-drop features.nn

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The video stabilization demo shows a noticeable difference in quality.n

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GarageBand ’09 has a new feature which will help you learn to play a musical instrument.nnn

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More features for GarageBand ’09.nn

The upgrade price for Life ’09 is $79 or a family pack is $99. It will ship by the end of this month, and it’s free on all new Macs.nnn

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iWork ’09 will include Keynote ’09 that adds some new tools for creating slide presentations.nnn

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Keynote Remote is an iPhone app that lets you advance slides by flicking them back or forward with a wireless connection to your Mac. It’s available for $0.99 in the App Store.nn

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Apple’s word processing software, Pages, now has a full-screen view that will let you concentrate on the version that you’re working on. It also lets you create documents in outline form.nnn

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New features from Pages.nn

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Apple will sell a Mac Box Set with Leopard, iLife ’09, and iWork ’09 for $169, that will be available in late January when iLife ’09 is ready.nn

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A new Pages feature allows a user to create a document and then e-mail to others to read and leave notes.nnn

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And “one more thing”…is a 17-inch MacBook Pro. It uses the same unibody construction that Apple uses for MacBooks. The new laptop is 6.6 pounds.nn

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The 17-inch MacBook Pro offers either glossy or matte displays.nn

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Schiller touts 7 hours of battery life using the discrete graphics, and 8 using the integrated graphics. It will also take 1,000 charges. The price of the MacBook Pro will be $2,799, the same price as the old 17-inch model. It will be available in late January.nn

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Schiller touts the environmentally friendly features of the new MacBook Pro.nn

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By the end of this quarter, Phil says all 10 million songs in the iTunes store will be DRM-free.nn

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Who else could end a San Francisco show? Tony Bennett.