The chief executive of Apple Computer, Steve Jobs, unveiled a version of the best-selling iPod digital music player that also shows videos and an iMac computer with a remote control and built-in video camera.

The video iPod, available in black or white starting next week, has a 2 1 /2-inch color display and holds as many as 150 hours of video, along with music and photos, Mr. Jobs said today in a “three act” event at the California Theater in San Jose. The devices, slimmer than the classic white iPods, sell for as much as $399.

The event marked the second time in a month that Mr. Jobs has added new designs to capitalize on demand for the iPod, Apple’s fastest-selling product. The Cupertino, Calif.-based company, which made its name with Macintosh computers, last month unveiled the pencil-thin Nano and said yesterday it can’t make the players fast enough to fill orders.

“It is becoming an entertainment company, not a computer company,” the chief investment officer at Palo Alto, Calif.-based Kelmoore Investment, Matt Kelmon, said. “People don’t say ‘Apple Computer’ anymore; they say ‘Apple.’ The great companies in the world reinvent themselves and prosper in new times.”

Mr. Jobs, 50, dressed in all black, unveiled the players on the same stage where he last year announced the iPod Photo, the first model with a color screen and photo-handling capabilities, and a special edition player with Bono of the rock band U2.

Apple’s iTunes store will sell music videos for $1.99 and has a library of 2,000 offerings available today. The company also will sell $1.99 animated short films from Mr. Jobs’s other company, Pixar.