Additionally, Jobs unveiled three new models of the iPod Touch, basically an iPhone without the phone.
A year after the two market heavyweights parted ways over pricing issues, NBC Universal has returned to the iTunes fold and will once again begin selling their programs via the downloading service. NBC relented to Apple's demand for a fixed price for shows, but in return will be allowed to bundle shows for sale.
Jean-Briac Perrette, NBC Universal' president for digital distribution, said NBC is "thrilled to be back on iTunes," but will continue to pursue other avenues for selling shows, including the video website Hulu, which it created with News Corp. last year.
None of this was enough to embolden investors, who sent the stock tumbling $6.24 to $151.68.
Jobs opened his presentation by walking out on stage in front of a giant screen bearing the Mark Twain quote, "The reports of my death are greatly exaggerated," a reference to Bloomberg News accidentally running the tech moguls obit on their site.