He also addressed concerns about iPhone 3G performance problems by saying a free iPhone 2.1 update will be released on Friday to fix the troubles.

"It's a big update," Jobs said of the iPhone software release. "It fixes a lot of bugs. You will get fewer call drops...You are not going to get some of the crashes and other things that we've seen."

Jobs kicked off a theatrical press event in downtown San Francisco by poking fun at persistent rumors about his health.

He flashed a famous Mark Twain quote, "The reports of my death are greatly exaggerated," on the screen as he stepped onstage.

"Enough said; the real topic of today is music," Jobs began.

New products announced by Jobs include high-definition television shows available on Apple's online iTunes store and a slim new Nano model that upgrades the technology while returning the gum stick shape people preferred.

Jobs also showed off an upgraded iPod Touch model made slimmer than the original version and with a built-in speaker.

"We added a built-in speaker, which is really hard with something this thin," Jobs said. "It's for casual listening, not for audiophiles."

Jobs cited statistics showing iPods command nearly 74 percent of the MP3 market and said that more than a hundred million applications for iPhones and iPod Touch models have been downloaded since the "App Store" opened 60 days ago.

"This is mind-blowing," Jobs said.

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