Jobs Takes Stage at Apple Event

Apple's chief executive officer gratefully accepts applause as he returns to the stage at Wednesday's company event after a lengthy absence due to a liver transplant. (Sept. 9)

Mr. Jobs, taking the stage at an event in San Francisco, unveiled new offerings that included an iPod Nano with a video camera. Apple also dropped prices across its iPod lineup as the company tries to revive slowing sales.

Mr. Jobs, who had not been seen publicly since an October event, was dressed in his usual black turtleneck and jeans. The 54-year-old appeared thin and spoke with a scratchy voice, but showed energy and enthusiasm.

"I'm very happy to be here with you all," said Mr. Jobs as he received a standing ovation. He explained that he had received the liver of a young adult who died in a car accident. "I wouldn't be here without such generosity," he said, urging others to become organ donors, too.

Apple's changes to iTunes, including the social-networking features, are the biggest in years, and the iPod nano's video camera is a shot across Cisco's bow, Walt Mossberg of The Wall Street Journal tells Stacey Delo.

Apple's CEO and co-founder returned to his post in late June, following a nearly six-month medical leave. Mr. Jobs, who has battled pancreatic cancer, worried investors last year by exhibiting noticeable weight loss. He bowed out of his usual keynote at the Macworld trade show in January and went on leave.

"He looked thin but much better than he had a year ago. Part of the reason was to show the crowd he's alive and kicking," said Charlie Wolf, an analyst at Needham & Co.

Apple showed off new iTunes software and iPods with lower starting prices amid slowing sales and increasing competition from companies like Microsoft Corp., which recently announced a new version of its Zune HD music player.

The iPod is still the dominant digital music player, with nearly 74% market share, according to Apple. But it has been eclipsed by the fast-selling iPhone. In the quarter ended June 27, iPod revenue fell 11% from a year earlier to $1.49 billion.

Apple lowered the starting price of its iPod Touch device, which is essentially an iPhone without cellular phone capability, to $199 from $229. The new iPod Nano, starting at $149, comes with an FM receiver and pedometer in addition to the built-in video camera.

"They're just trying to segment the product line, and they're trying to get people to buy multiple iPods," said Gene Munster, an industry analyst with Piper Jaffray & Co. He noted that Apple didn't add a camera in the iPod Touch as had been widely expected.

The company stressed the success of games on the iPod Touch and the iPhone, compared with devices like Sony Corp.'s PlayStation Portable and Nintendo Co.'s DS.

"When these things came up they seemed so cool...but they don't really stack up anymore," said Apple marketing chief Philip Schiller.

Apple also unveiled a new version of its iTunes software and online store. Among the new features: greater ability to share music and other digital content between multiple computers in a single home and a feature called iTunes LP, which brings additional content like lyrics, videos and artwork to albums purchased on the site.