On January 9, 2007, Apple Computer, Inc. shortened its name to simply Apple Inc. In his Macworld Expo keynote address, Steve Jobs explained that with their current product mix consisting of the iPod and Apple TV as well as their Macintosh brand, Apple really wasn't just a computer company anymore. At the same address, Jobs revealed a product that would revolutionize an industry in which Apple had never previously competed: the Apple iPhone. The iPhone combined Apple's first widescreen iPod with the world's first mobile device boasting visual voicemail, and an internet communicator able to run a fully-functional version of Apple's web browser, Safari, on the then-named iPhone OS (later renamed iOS).

iOS evolution: iPhone and iPad

The first version of the iPhone became publicly available on June 29, 2007, in selected countries/markets. It was another 12 months before the iPhone 3G became available on July 11, 2008. Apple announced the iPhone 3GS on June 8, 2009, along with plans to release it later in June, July, and August, starting with the U.S., Canada, and major European countries on June 19. This 12-month iteration cycle has continued with the iPhone 4 model arriving in similar fashion in 2010, a Verizon model was released in February 2011, and a Sprint model in October 2011, shortly after Jobs' death.

On February 10, 2011, the iPhone 4 was made available on both Verizon Wireless and AT&T. Now two iPod types are multi-touch: the iPod nano and the iPod touch, a big advance in technology. Apple TV currently has a 2nd generation model, which is 4 times smaller than the original Apple TV. Apple has also gone wireless, selling a wireless trackpad, keyboard, mouse, and external hard drive. Wired accessories are, however, still available.

The Apple iPad was announced on January 27, 2010, with retail availability commencing in April and systematically growing in markets throughout 2010. The iPad fits into Apple's iOS product line, being twice the screen size of an iPhone without the phone abilities. While there were initial fears of product cannibalization the FY2010 financial results released in Jan 2011 included commentary of a reverse 'halo' effect, where iPad sales were leading to increased sales of iMacs and MacBooks.

Resurgence compared to Microsoft

Since 2005, Apple's revenues, profits, and stock price have grown significantly. On May 26, 2010, Apple's stock market value overtook Microsoft's, and Apple's revenues surpassed those of Microsoft in the third quarter of 2010. After giving their results for the first quarter of 2011, Microsoft's net profits of $5.2 billion were lower for the quarter than those of Apple, which earned $6 billion in net profit for the quarter. The late April announcement of profits by the companies marked the first time in 20 years that Microsoft's profits had been lower than Apple's, a situation described by Ars Technica as "unimaginable a decade ago".

The Guardian reported that one of the reasons for the change was because PC software, where Microsoft dominates, has become less important compared to the tablet and smartphone markets, where Apple has a strong presence. One reason for this was a surprise drop in PC sales in the quarter. Another issue for Microsoft was that its online search business had lost a lot of money, with a loss of $700 million in the first quarter of 2010.