On Wednesday, Jobs, now Apple's chief executive, unveiled the Cupertino, Calif, computer maker's first new hardware line in more than two years. The new product - the Power Mac G4 Cube, known simply as the G4 Cube - is a sleek eight-inch processor that contains one of the industry's smallest, most powerful supercomputers. One-fourth the size of most personal computers, it is designed to sit alongside a monitor and keyboard, uncluttering users' desks while giving them more punch.

Clad in his trademark jeans and black turtleneck, Jobs also introduced a revamped lineup of desktop computers to a cheering audience of loyalists at the MacWorld Conference and Expo here. Apple dropped the price of its lowest-end candy-colored iMac desktops to $799 from $999 and introduced four new iMac colours: indigo, ruby, sage and snow.

The personal-computer company also upgraded its higher-end Power Mac G4 computers, unveiled a sleek new mouse and keyboard for its whole computer line, and announced a new version of its iMovie software.

Apple's consolidation strategy - which included killing its Newton handheld device, a forerunner of the Palm Pilot - was designed to give the ailing Apple time to recover and focus on profitability. Jobs steered the company into four product lines: iMac computers and iBook laptops, aimed at consumers and schools, and Power Mac computers and PowerBook laptops, positioned for higher-end and professional users. Since then, the company has frequently exceeded analysts' earnings forecasts.

On Tuesday, Apple reported its 11th consecutive profitable quarter, beating analysts' estimates by a penny. Its sales, though, were below expectations, perhaps because Apple customers had discovered that Jobs regularly announces new products and price cuts at the July MacWorld.

The introduction of the new G4 Cube and upgrades in the rest of the computer lineup signal that Apple now believes it's ready to capture more market share. "We got very focused when we were fixing things a few years ago," Jobs said in an interview following his MacWorld keynote speech. "We've proven we can stay focused and can refresh our product lines. Now we can expand a little bit."

Jobs declined to comment on whether the G4 Cube would be the first of many new hardware products. But he said Apple will continue to provide consumer-oriented computers and software, a focus that has produced profits. Despite the slew of product announcements, Apple stock fell on Wednesday. In 4 p.m. trading, it was down $4.5625 to $52.6875 on the Nasdaq Stock Market.

But David Bailey, an analyst at Gerard Klauer Mattison & Co, said the G4 Cube "should appeal to small and medium-size businesses." Charlie Wolf, an analyst at UBS Warburg, said Apple's hardware expansion will "appeal to high-end users and will expand their market." He projected the G4 Cube will add 300,000 to 400,000 unit sales to Apple's total shipments every quarter.

The timing of the new lineup's introduction is no accident. The bulk of Apple's sales typically come in the second half of the year, when schools and individuals start buying Apple products for the back-to-school and holiday seasons.

Apple will launch a promotional blitz - an extension of its well-known "Think Different" campaign - to spread the word on its new products. The company will roll out one television spot featuring its new mouse, as well as a batch of other television ads that feature each of the four new colours of the iMac. Jobs hinted that a campaign to highlight the G4 Cube may also be launched "in the next few weeks."

The G4 Cube will be positioned to appeal to professional users and iMac users seeking a computer upgrade, Jobs said. Scheduled to be available in early August, it will come in two models - one priced at $1,799 and the other at $2,299. The less expensive version will boast 450 megahertz of power, 64 megabytes of memory and 20 gigabytes of storage, while the more expensive model will feature 500 megahertz of power, 128 megabytes of memory and 30 gigabytes of storage. A DVD drive is loaded on the top of the cube, and the entire assembly can be lifted out of its enclosure to provide access to components for repair.

Jobs called the G4 Cube an "engineering feat," because in spite of its size, it has a powerful and silent processor. Apple's engineers created a special cooling design for the new computer so that its processor won't overheat, he noted. Meanwhile, the new multicolored iMacs come in four models. The lowest-end version, available in indigo, sells for $799 and has 350 megahertz of power. The second, iMac DV, retails for $999, bundles iMovie video-editing software and comes in indigo and ruby. The third, iMac DV +, is priced at $1,299, provides more power and contains a DVD drive; it's available in indigo, ruby and sage. And the final model, iMac DV Special Edition, which has more power, speed and storage than the others, comes in graphite and snow, for $1,499. All the DV models come with FireWire ports to connect to digital camcorders and other devices.

Jobs also announced upgrades to Apple's Power Mac G4 desktops. Two new models of the desktop computer feature dual processors, which help speed up the machines. The new models also come with iMovie software and a gigabit ethernet, which allows them to transfer image and digital video files around a network.

Apple also unveiled several new display screens, which are compatible with both the Power Mac G4 and G4 Cube. The new monitors come with a 17-inch display screen, a 15-inch flat-panel screen and a 22-inch cinema-size flat panel screen.

The new keyboard and mouse, which doesn't require a pad and has an entire surface that acts as its button, will be standardised across the new computer lineup. The original iMac mouse and keyboard were the brunt of many complaints. But, Jobs said, "We have many faults, but we do listen."

Jobs also spotlighted the company's new iMovie software, which displays a richer user interface and a beefed-up special effects panel. "IMovie is profound," he said. "We really want to make wonderful tools to help people creatively express themselves. We want to help iMac customers have an emotional experience."

-- The Wall Street Journal