Apple's newest gadget Networking device can flow PC music into home stereo

Apple Computer Inc. on Monday announced a new portable home networking device that can also wirelessly stream digital music that's stored in the PC to the home stereo.
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In essence, the new AirPort Express is a smaller version of Apple's Airport Extreme base station, which is a Wi-Fi access point device that's often used to allow laptop computers to wirelessly connect to the Internet on a single broadband connection.

But the new device, which is roughly the size of a deck of cards, also includes an audio mini-jack that allows the consumer to connect it to the home stereo. Then consumers can play music wirelessly from iTunes jukebox running inside a Macintosh or Windows-based PC.

The combination of iTunes software, the online music store and the iPod portable music player has proven to be a digital entertainment juggernaut for Apple.

Furthermore, Apple is reportedly set to unveil a European version of the iTunes Music Store next Tuesday. The company e-mailed invitations to journalists to a special event that day at the Old Billingsgate Market in London, but an Apple spokesman declined to comment further.

The invitation reads, "The biggest story in music is about to get bigger. ''

The idea of easily moving digital music files from the PC to the living room has been around, but finding a consumer-friendly solution has not been easy.

"I think it's important to see this in context," said Susan Kevorkian, an analyst at the industry research firm IDC. "Consider how well Apple has done with iPod and how simple iPod has made it for music lovers to take their music away from their PC. Apple is building on that legacy."

AirPort Express doesn't need a separate power adapter because it plugs directly into the electric outlet.

The device, which will cost $129 when it appears on store shelves next month, will require a new version of iTunes, which will be available as a free download later this week, said Greg Joswiak, Apple's vice president of hardware product marketing.

"We really believe that this will be the mainstream, consumer, wireless base station for Apple," he said, noting that AirPort Extreme, which retails at $249, will remain the product of choice for classrooms or businesses.

AirPort Extreme has been an expensive proposition considering the price of Wi-Fi base stations has fallen quickly in the past couple of years. Many cost less than $100.

But ultimately, the device will have to be easy to use, said Jonathan Gaw, an IDC analyst.

"Consumer electronics has the ease of use down. You turn on the TV and it works. A PC? You know how that goes," Gaw said. "However, Apple feels that ... they can lead the PC industry into the living room."

Others are sure to follow with similar-size home networking devices in the coming weeks, he said.

Kevorkian thinks Apple has one clear advantage over other makers of home networking gear.

"Apple has invested heavily in its digital music brand," she said. "The other guys like Linksys (which makes home networking gear) don't have that kind of brand power behind them."

Apple shares rose $1.03, or 3.58 percent, to close Monday at a 52-week high of $29.81.