I PHONE

The iPhone, along with other popular handsets such as Nokia's N95, represents the current pinnacle of so-called "converged" devices - single gadgets that pack in more and more functions. The N95 has built-in GPS software, so you can use it as a satnav device.

The X Series range of phones and price plans from 3 allows users to "sling" TV programmes from a personal video recorder at home to their phone, as well as surf the net, make free internet-based calls via Skype, access files on their home computer, stream music to their handset, and chat with friends via an instant-messaging program.

In all the brouhaha surrounding the iPhone launch, it would be easy to miss one of Apple's biggest successes this year - the upsurge in sales of its computers. Apple shipped more than two million Macs between July and September this year alone, a 34 per cent increase on those months last year.

It now has five per cent of the home computer market, but if Apple's rise continues, it may soon be able to think about posing a more serious threat to Microsoft's dominance.

Technology analysts have attributed this boom to a "halo effect", the glow of positive publicity and brand loyalty that comes from good initial experiences with products such as the iPod. And despite some grumbles from Apple users, the release of Leopard, its latest operating system, has been largely well received, not least because it lets Mac users dual-boot the Windows and Apple operating systems on one computer.

But not all that Steve Jobs touches turns to gold. Most tech insiders would agree that Apple TV, which hit the shops earlier this year, has been a mis-step. Designed to stream content from an iTunes library straight to the television, Apple TV hasn't captured the imaginations of gadget geeks: iTunes users can already beam their music around their home using the Airport Express internet router, while the iTunes store has only a limited range of TV shows and films - and they're over-priced. The Apple TV unit also lacks a DVD drive, which means it adds to the clutter in your lounge rather than reducing it.

That's a shame, because video-on-demand has shown signs of finding its feet this year; 2007 could be considered the year when the idea of plugging your television into the internet went truly mainstream.

While BT Vision, a pioneer in delivering on-demand content via the internet to TV sets, has seemingly struggled to sustain its early momentum, several start-up companies that allow people to watch shows on their computers have enjoyed some success. Joost, the brainchild of the team behind Skype, has received rave reviews. Its main competitor, Babelgum, is also building a loyal following.

Mainstream companies are getting in on the act, too. The BBC launched a beta version of its TV catch-up service iPlayer, and plans to roll out the full version on Christmas Day, while ITV reinvigorated its on-demand service to compete with Channel 4's 4oD.

The landscape will undergo a potentially seismic shift in 2008 with the launch of Project Kangaroo, a joint venture between the BBC, ITV and Channel 4 to provide on-demand content and catch-up services on a single platform.