After months of rumors, Jobs unveiled the iPhone, promising a device that brings iPod music capabilities together with Mac software and mobile-phone features. Also announced was Apple TV, a set-top box that will allow users to push content, such as movies and photos, from their computers to their television sets.

In launching major initiatives in these two areas, Apple is looking to change the digital media landscape, one of the reasons the company has abandoned the moniker "Apple Computer" and rebranded itself "Apple Inc."

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But Apple is likely to encounter much more competition in these areas than it has in the digital music market, and what remains to be seen is whether the company has more to offer than merely snazzy tech.

Apple's iPhone is a mobile phone that combines the wizardry of smartphones with the music- and movie-playing features of the iPod. It offers a large, 3.5-inch touchscreen, a 2-megapixel camera, and integration with Apple's iTunes music store. It's less than half an inch thick, works on a pared-down version of Apple's OS X, sports Wi-Fi, Bluetooth, and EDGE (a type of cellular broadband), and runs on Cingular's network .

By entering the crowded mobile-phone market, even with such an ambitious set of features, some analysts think Apple could be facing its toughest competition yet. The handheld market is already saturated with almost countless models; and there are few consumers who have been craving a smartphone without buying one.

Also, Apple's phone will only work with Cingular's network -- at least for the time being -- and users have to make a two-year commitment. Add in the price, $499 and $599 for the two models available, and it is likely that there could be much more limited appeal than Apple has found with its seemingly ubiquitous iPod music players.

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The other big announcement during Jobs' keynote was Apple TV, a move that has been expected for months. Jobs initially introduced the concept last September, and implied that a product would be available in early 2007.

Yankee Group analyst Adi Kishore said Apple's interest in the area is not much of a shock. After all, Apple has been eager to be king of the mountain for digital entertainment content, and online video has been widely trumpeted as the next big thing.

Bringing the television together with computers is an integration play not unique to Apple, either. Microsoft has been trying for years to bring the two arenas together, and actually just announced some fresh efforts of its own at the Consumer Electronics Show.

But in trying to make TV more seamlessly connected to computers, Apple will not have to worry only about its traditional rival, Microsoft, Kishore said. Apple could have a major battle on its hands from game console makers, such as Sony, and from cable companies, such as Cox and Comcast.

"Apple has some advantages with its TV strategy, particularly in terms of user interface design," said Kishore. "But this isn't like music, where they were a pioneer. They're going to have to be very aggressive to get a good position here, and beat their competitors."