He then showed off the MacBook Pro, an Intel-based laptop that Jobs said is four to five times faster than the PowerBook G4.
"These things are screamers," Jobs said.
The new laptop also has Apple's Front Row technology for viewing photos and movies, and listening to music with a remote control. It's also a hair thinner than the PowerBook G4 and has a built-in iSight Web camera, Jobs said.
The 1.67GHz model will sell for $1,999 and includes 512MB of memory an 80GB hard drive, as well as a drive that can burn DVDs and CDs. The $2,499 model will include more memory and a faster processor. The MacBook pro laptops will ship in February with orders being taken as of Tuesday.
"Rosetta is going to be a great bridge until we get all the apps universal," Jobs said.
Jobs unveiled the first Intel-based Mac, an updated iMac. The machine will come in the same sizes as its Power PC-based predecessor and will cost the same, but Jobs said it will be two to three times faster because it uses Intel's dual-core Duo chip.
Jobs moved on to discuss the transition to Intel chips.
"We announced that by June of this year, we would be shipping Intel-based Macs."
Then Intel CEO Paul Otellini came onstage in a bunny suit. "Steve, I want to report that Intel is ready," Otellini said, handing over a silicon wafer.
"Well, I can report to you that Apple is ready, too," Jobs said.
The new iLife will sell for the same price as its predecessor--$79--and is available today. Jobs also announced a new version of iWork, with an updated version of Keynote and Pages, that will sell for $79.
"It's really easy to use," Jobs said. "You basically pick a theme."
Jobs has moved onto iDVD. The authoring program can now make wide-screen menus. There are improved slide shows and, in a long-awaited move, the program now supports third-party DVD burners.
As for Garageband, Apple has added a Podcast Studio feature with royalty-free sound effects and jingles, as well as the ability to easily add art. Podcasters will also be able to use iChat to record interviews conducted over the instant-messaging program.
Jobs demoed the feature by recording his own mock podcast: "Super Secret Apple Rumors."
"I have some pretty good sources inside Apple, and here's what I'm hearing," Jobs said. "The next iPod will be huge...an 8-pounder with a 10-inch screen."
Jobs is now talking about updates to iMovie, another component of iLife '06. Among the new features are the ability to export projects to the iPod, video podcasting and the ability to have more than one project open at a time.
Jobs has shifted gears from iTunes and iPod to the Mac.
"It's MacWorld, so we're going to spend the rest of the day talking about the Mac," he said.
Jobs gave a demo of the and then announced a free update to Mac OS X Tiger. Version 10.4.4 includes several new widgets, one including a Google search bar and another giving sports and news from ESPN.
Jobs also introduced iLife '06. "It's a giant new release. It's going to propel us even further ahead."
Jobs said the new iPhoto is faster and can now handle up to 250,000 photos--10 times the prior limit. There are also more book-printing options, as well as the ability to order photo greeting cards and calendars.
The new iPhoto also has an option for automatic sharing of albums, which Jobs called "photocasting." Albums can be selected and updated via Apple's .Mac service and be either widely available or password-protected.
"This is podcasting for photos," Jobs said.
Jobs announced a new accessory for the fifth-generation iPod and the iPod Nano that acts as both remote control and an FM radio tuner. The product sells for $49 and is available Tuesday.
Steve Jobs, clad in his familiar jeans and black mock turtleneck, took the stage and began his keynote by announcing that Apple had a record $5.7 billion in revenue for the quarter that ended in December. Apple's retail stores alone accounted for $1 billion in revenue.
Apple sold 14 million iPods in the holiday quarter. "And it still wasn't enough," Jobs said. "More iPods are on the way." Of the 42 million iPods Apple has sold since the first model was introduced, 32 million were sold last year. The company has also sold 850 million songs via its iTunes online music store.