Stevie's Little Wonder

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Apple's stock price has almost quintupled over the past two years, revenues have doubled during that time, and Jobs is sitting on a war chest of $8 billion. He has a company with an almost freakishly diverse skill set--computer hardware, operating systems, applications, consumer electronics, Internet services. Will Jobs try to leverage Apple's dominance in the digital-music space to get its PC line back in the running? Or is the iPod the first in a full suite of Apple-flavored, network-enabled media appliances--TV, digital camera, camcorder, digital video recorder, video-game player?

After all, when Jobs unveiled the Nano in San Francisco, it shared the stage with the ROKR, a phone that runs Apple's iTunes software and can hold around 100 songs. "We're working on some stuff," Jobs says, with his best, most irritating Cheshire-cat smile. "We're working on some stuff. We'll see." He looks at his watch--his lunch date, cello virtuoso Yo-Yo Ma, is waiting outside.

For the moment, it's clear Jobs is just happy to be here. To paraphrase Lou Reed, his company was saved by rock 'n' roll. "What's really been great for us is the iPod has been a chance to apply Apple's incredibly innovative engineering in an area where we don't have a 5%-operating-system-market-share glass ceiling," Jobs says. "And look at what's happened. That same innovation, that same engineering, that same talent applied where we don't run up against the fact that Microsoft got this monopoly, and boom! We have 75% market share." That music you hear? Redemption song. --With reporting by Sora Song