The MacBook Air laptop is less than 2 centimeters thick, features a backlit 13-inch (33-centimetre) screen, a full-size keyboard and a pad responsive to Apple's multi-touch control gestures. It weighs in at less than 1.5 kilograms, Jobs said.

The MacBook Air has the following measurements: Height - 0.16-0.76 inch (0.4-1.94 cm), Width - 12.8 inches (32.5 cm), Depth: 8.94 inches (22.7 cm)

Selling in the US for $1,799, the laptop is powered by Intel's 1.6 GHZ Core 2 Duo processor as standard, with an available 1.8GHZ upgrade. It has 2 GB of RAM, battery life of 5 hours and an 80 GB hard drive.

An optional 64GB solid state drive contains no moving parts for added durability. Every MacBook Air includes a micro-DVI port so users can connect to Apple’s 20-inch or 23-inch Cinema Displays to extend their desktop or connect to projectors and other displays via DVI, VGA, Composite and S-video adapters. MacBook Air includes USB 2.0 for plugging in peripherals or charging an iPod or iPhone, a headphone jack and Apple’s MagSafe Power Adapter designed especially for mobile users.

The MacBook Air has no built in CD drive, but does offer an external drive for an additional 99 dollars, the MacBook Air SuperDrive. The MacBook Air SuperDrive is powered by the USB port, eliminating the need to carry a separate power adapter

Featuring built-in 802.11n wireless connectivity and a video camera, the MacBook Air goes on sale in the US in two weeks time.

"We've built the world's thinnest notebook - without sacrificing a full-size keyboard or a full-size 13-inch display," said Jobs. "When you first see MacBook Air, it's hard to believe it's a high- performance notebook with a full-size keyboard and display. But it is."

MacBook Air features a full-size keyboard design in a sleek and durable aluminum enclosure. The backlit keyboard makes it ideal for dimly lit environments such as airplanes, studios or conference halls, and a built-in ambient light sensor automatically adjusts the brightness of the keys as well as the display brightness for optimal visibility.

Steve Jobs also unveiled upgrades to the iPhone, iTunes Movie Rentals and a wireless gadget that automatically backs up data from Mac computers and laptops.

The iTunes Movie Rentals service will feature films from all the major Hollywood studios and allow users to watch on PCs, Macs, iPods and iPhones.

Apple hopes its new technology will help it dominate the online movie rental business in the same way it dominates the sale of music tracks with iTunes. However the company faces more entrenched competition in the movie sector as established firms like Amazon.com and Netflix already offer similar services.

"iTunes Movie Rentals instantly brings great movies from all the major studios directly to your iPod, iPhone, TV or computer - without having to drive to the video store or wait for DVDs to arrive in the mail," Jobs said. "Movie lovers can now discover and enjoy movies as simply and easily as music lovers discover and enjoy music today on iTunes."

The new Apple TV device allows users to automatically stream content from the internet to their television sets and hi fi systems.

Jobs also announced software upgrades for the iPhone and iPod Touch to improve their online performance, including an automatic location finder that triangulates a user's position from signals received from nearby cellphone towers and wi-fi stations.

Another new gadget announced by Jobs, the Time Capsule, combines an 802.11n base station with a server-grade hard disk that offers automatic wireless backup for every Mac in the house.

"Bring Time Capsule home, plug it in, click a few buttons on your Macs and voila - all the Macs in your house are being backed up automatically, every hour of every day," Jobs said.