Anticipation mounted on Monday that Apple Computer Inc. (AAPL) will announce a high-profile move into the market for downloading full-length Hollywood movies that might also see the iconic technology firm unveil new versions of its popular iPod digitalmedia players.

Apple scheduled an event for Tuesday and sparked a frenzy of speculation on its plans with a typically cryptic invitation to the gathering in San Francisco that offered little by the way of details, proclaiming simply: “It’s showtime.”

Over nearly the past year the company has directed most attention towards its transition to using computer chips from Intel Corp. (INTC).

Now, with Apple’s recent completion of its transition away from using the PowerPC microprocessors produced by International Business Machines Corp. (IBM), analysts and company watchers expect the Cupertino, Calif., firm will begin to announce a stream of new consumer gadgets.

David Bailey, an analyst at brokerage Goldman Sachs, said he expects Apple will use the event to refresh its iPod family, unveiling higher-capacity models based on flash memory to replace its nano and shuffle products. He recently told clients that Apple could also update its video iPod as well.

The analyst said he also expects Apple to add downloads of movies to its iTunes service, which currently allows computer users to download music and video files, including episodes of popular television programs.

Selling movies through iTunes could not only help boost Apple’s iPod sales, but may also telegraph a bigger push into the potentially lucrative home-theater market and help it capitalize on the multibillion-dollar market for DVD rentals and sales.

“By adding full-length films to iTunes, Apple could take a meaningful share of the DVD market, which achieves nearly $8 billion in rentals and $24 billion in sales yearly,” Pacific Crest Securities analyst Steve Lidberg wrote in an investment note. “By adding movies to iTunes, Apple adds a significant building block to its device/software/content ecosystem.”

Apple spokesman Steve Dowling had no comment about what the company will showcase at the event, though the invitation gives more than a subtle hint that it will have something to do with Hollywood movies.

Industry analysts recently have said Apple is likely to unveil a new iPod to replace its tiny nano player, increasing its memory beyond the current 4-gigabyte maximum level.

Apple hasn’t upgraded its iPod line since last September, when it rolled out the nano and new iPods capable of playing music videos. Since then, the company has added more than 9,000 music videos for sale, as well as episodes of more than 200 television shows to go along with its library of at least 3 million songs.

Apple says that it has sold more than 35 million videos since launching the service a year ago. Customers can currently download videos and TV shows for $1.99 each, and songs for 99 cents.

But selling movies online is seen by many technology executives to be the holy grail of downloadable entertainment, as it is considered the main conduit by which computer companies can move into the consumer living room and alter the landscape of the home-entertainment market.