Apple unveils new Mac mini - and iPod Hi-Fi

Apple on Tuesday introduced its third Intel-based Mac: a revamped version of its petite Mac mini.

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.

CEO Steve Jobs said at a special event at the company headquarters in Cupertino: "We think this is going to be a strong product for us."

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.

Jobs said: "It's home stereo reinvented for the iPod age."

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.

The new Mac mini moves 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 the 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 neither the industry overall nor consumer expectations have settled on a mainstream blend of computer and TV functions.

IDC analyst Susan Kevorkian said: "This has been a long transformation, having consumer electronics devices and PC devices in the house play well together."

Piper Jaffray analyst Gene Munster said in a research note that Tuesday's releases were likely to be strong products but were unlikely to materially affect Apple's growth. Future versions of the Mac mini would likely be more specifically designed as home media hubs, he predicted.

CNET News.com's John Borland and Leslie Katz contributed to this report

Ina Fried writes for CNET News.com