The new Mac Mini will be available, starting immediately, in two models. The low-end model sells for $599 and comes with a 1.5GHz Intel Solo single-core chip, a 60GB hard drive and a combo drive that can play DVDs and burn CDs.
The higher-end version will sell for $799. It comes with a dual-core 1.67GHz Core Duo processor, an 80GB hard drive and a SuperDrive that burns CDs and DVDs.
Both models come with 512MB of memory, Gigabit Ethernet networking, FireWire ports and four USB ports.
"We think this is going to be a strong product for us," CEO Steve Jobs said at a special event at company headquarters here.
Apple also unveiled the "home stereo quality" iPod Hi-Fi, which Jobs said is of higher quality than the speakers available today. The large speaker system comes with an iPod dock built-in, as well as an auxiliary port to connect an iPod Shuffle or other device.
"It's really a home stereo reinvented," Jobs said. "It's home stereo reinvented for the iPod age."
Video: Apple's new Mac Mini
At Apple headquarters, CEO Steve Jobs shows off the new Intel-powered Mac Mini to a group of reporters.
The iPod Hi-Fi will sell for $349 and goes on sale on Tuesday. The device can plug directly into the wall or run with six "D" batteries.
Jobs also introduced Apple-branded leather cases for the video iPod and iPod Nano. The cases will sell for $99 and will be available in mid-March.
The new Mac Mini does move Apple a step closer to offering a living-room PC similar to a Windows Media Center. The new computer is loaded with the company's "Front Row" multimedia navigation system, which allows viewers to use a remote control to browse and play music and video files, and the company showed its capabilities connected to a flat-screen Sony TV.
But Mini still lacks built-in abilities to record video from a television, which would turn it into a natural TiVo competitor, or a simple way to hook into a cable or satellite TV system. Analysts said that neither the industry overall nor consumer expectations have settled on a mainstream blend of computer and TV functions.