Apple Expands Core

During his presentation, Jobs initiated a videoconference with Madonna via an onstage computer to thank her for agreeing to the deal.

"I tried to hold out as long as possible," Madonna said in the conference. "I got tired of not being able to download my own music."

The updated version of iTunes, which Jobs said will be available through the company's site later Wednesday, is the fifth iteration of the software. One potentially significant new feature in the Windows version of the software is a conduit that will allow iPod users to sync the calendar and address book on their iPods with Microsoft's (MSFT) Outlook program. The Mac version of iTunes already syncs with similar programs on that platform.

In total, the iTunes update did not include any major new features, just a string of minor upgrades that primarily focus on making the software better looking and easier to use.

Apple's stock, which soared to a new high Tuesday in anticipation of the announcement, got an initial boost Wednesday as well before tailing off.

In recent after-hours trading, the company's shares were off 13 cents to $48.55, having closed the regular session down 12 cents to $48.68. But earlier in the day, Apple's stock traded up as much as 60 cents, or 1%, to $49.40.

Shares of Motorola also traded slightly off after the announcement; they closed the regular session down 5 cents $22.36.

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