Apple unveils super-thin "Air" laptop, Web movies

By Scott Hillis

SAN FRANCISCO (Reuters) - Apple on Tuesday launched an aluminum-clad laptop just three-quarters of an inch thick, seeking to bring a new computer to market with the same cachet as its iPod and iPhone devices.

Apple also said it would let people rent films over the Web with upgrades to its iTunes online media store, a technological challenge to a movie industry still largely focused on DVDs.

Shares of movie rental firms Netflix and Blockbuster fell sharply in response, and Apple's own stock lost 5.5 percent since the announcements were widely expected and Chief Executive Steve Jobs failed to conjure up any big surprises.

Jobs set a high bar last year by unveiling the iPhone. In addition, many times he ends presentations with by saying, "One more thing..." as a prelude to something unexpected. This year there was none.

Still, Jobs' talents as a showman were on display when he took the stage at the annual Macworld convention in San Francisco to cheers and applause from a few thousand software developers, customers and Apple employees.

He detailed a series of new products and services but saved the laptop, dubbed the MacBook Air, for last, drawing it out of a standard manila envelope to emphasize its slim dimensions.

Jobs said the new notebook was the thinnest available, measuring 0.76 inches at its thickest point and tapering to just 0.16 inches.

Priced from $1,800, the Air bridges the gap between Apple's entry-level and high-end laptops, but analysts voiced concern that it could steal customers away from pricier products.