Apple's New Core

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Remember when computers used to be cool? Deep inside One Infinite Loop, the Silicon Valley address of Apple Computer's Industrial Design Lab, they still are. Never mind that the Valley is a grim place these days and that the gold rush has given way to the deep funk. Forget that the Internet bubble has burst, and that Ma and Pa investors are wearing a what-were-we-thinking? grimace of fiscal remorse. Right here, right now, sitting on a butcher-block table, bathed in the sunlight that pours in through spyproof frosted-glass windows, is—repeat after Steve Jobs now—the quintessence of computational coolness, the most fabulous desktop machine that you or anyone anywhere has ever seen.

O.K., maybe that's overstating it somewhat. Maybe that's overstating it a lot. But it's hard to remain impassive when you're sitting within the reality-distortion field that surrounds Apple's evangelical CEO when he's obsessing about the dazzling, never-seen-anything-like-it, ultra-top secret computer perched before him. This is the new iMac, the long-awaited successor to the best-selling, candy-colored, all-in-one computer that revived Apple's consumer sales and signaled that the boss and co-founder was back and badder than ever. This new iMac, Jobs says, "is the best thing we've ever done."

Of course, this is Steve Jobs talking, and he says that about every new product when it's ready to launch. With him, it's always a revolution. But even when he's wrong, you can be pretty sure that whatever he and Apple are doing will quickly be copied by the rest of the PC world. So what if you don't have a Mac? Pay attention: what Jobs does is often the shape of things to come.

Besides, this time he really means it. This time we need a revolution. This time the computer industry is in free fall and, all around, the makers of desktops and laptops are frantically cutting one another's throats even as they cut costs, vying to be the cheapest box on the block.

Not Apple, though.

Jobs is betting the company that what consumers most want from technology is control of their digital lives. And what better way to do that than with the smartest-looking, easiest-to-use, best-engineered computer there is? The time is right, he says. We are wallowing in digital cameras and camcorders and MP3 players that get harder to use, not easier. The thing that will connect us to our gadgets needs to be a digital hub, a computer designed to simplify our lives. This, Jobs says, is what Apple was meant to do—and it's what no one else in the PC world is doing.

So damn the recession! Build it, and they will come. "Victory in our industry is spelled survival," says Jobs. "The way we're going to survive is to innovate our way out of this."

Now before you leap to your feet and shout amen, consider this: Apple, which has been innovating and rebounding since Jobs' return in 1997, has nevertheless been struggling to retain the small market share it still enjoys. This time Jobs and the company he built and nurtured and adores really, truly need a hit.

The new iMac, which TIME took for an exclusive test run recently and which will be unveiled at the annual Macworld convention in San Francisco this week, could be just the thing. Like many PCs today, the new iMac is built around a flat-panel display. But instead of taking up precious desk space like a typical flat monitor, the iMac's screen floats in the air, attached to a jointed, chrome-pipe neck. It's also rimmed by a "halo," a translucent plastic frame that makes you want to pull it toward you—or push it out of the way. Jonathan Ive, chief of Apple's ID lab, says he designed it so that you would want to touch it, want to "violate the sacred plane of the monitor." The chrome neck is articulated and bends while maintaining the angle of the screen; it connects to the computer, an improbably small hemisphere at 26.4 cm in diameter—somewhat bigger than a halved cantaloupe. The machine bears an uncanny resemblance to Luxo Jr.—the fun-loving, computer-animated swing-arm lamp that starred in a short film by Pixar, the fabled computer-animation studio that Jobs runs. (Pixar creative chief John Lasseter has also made the first new iMac ad.) "It looks a little cheeky," says Ive. It looks alive.

Can it make Apple's fortunes grow, though? The original iMac, which was launched in May 1998, sparked a 400% Apple-stock surge during the next two years, and has sold more than 6 million units. It was also Jobs' first home run since his return to the company the previous year after 12 years in exile. Now that Apple's stock has fallen back to earth and retail stores are clamoring for something new to stimulate sales, Jobs needs to swing for the fences again.