Apple adds ultra-thin 'Air'

Apple revealed "The World's Thinnest Notebook", the MacBook Air, yesterday at the computer-maker's annual Macworld conference in San Francisco.

The announcement confirms rumours about the "ultra-portable" laptop computer.

The computer boasts a maximum height of 1.9cm, a 33.8cm display, multi-touch gesture trackpad, weighs about 1.4kg and will cost $1,799 (£899.50).

MacBook Air is configured almost exclusively for wireless activity - it has no CD drive - requiring users to install software remotely from another computer.

The maker of the iPhone also announced that it would make movie rentals available over its iTunes service and demonstrated a new version of Apple TV, a product rolled out at last year's expo.

Such a drive towards the entertainment industry has been a crucial step in Apple's business, but it has faced difficulties from recording industries and movie producers.

The announcement of a move into video rentals shows successful negotiations with movie producers.

Speaking in an interview with CNBC, Steve Jobs, Apple's chief executive, said, "We talked to them and talked to them and finally a bit flipped. They know the rental model; we came to the conclusion it was the right model."

Mr Jobs also said that Apple sold four million iPhones during the first six months of their release, beating predictions.

Despite the much-anticipated new product, investors seemed unimpressed by Mr Jobs' keynote speech yesterday. Shares in the tech company fell by 5.76 per cent to $169.04 (84.52p) on the Nasdaq Composite Index.