By William Fellows

Apple Computer Inc CEO Steve Jobs (Apple gave up its CEO search a year ago so we’re not going to call him interim CEO any longer), told ComputerWire that it is currently evaluating its response to the emerging FreePC/ISP model but does not believe its current form – a three year commitment to monthly ISP payments – is suitable for its customers.

Jobs said he would not comment on future product plans and that the company would need to study consumers’ behavior over a period of months – the services have only been gone live in the last few weeks – before making any decision. That’s what we did with iMac and given we sold more of those last quarter than ever something in our business model must be working, Jobs noted. The sensible thing is not to jump into the market, he added.

Job’s essentially reiterated what CFO Fred Anderson had said about FreePC/ISP products on the company’s earnings call last week, although PC industry analysts on Wall Street expect Apple to make some move into the space, possibly in September by which time its new iBook portable iMac will also be shipping. Jobs said the company initially expects demand for the tangerine and blueberry colored iBooks (colors chosen because they gave the best overall appearance) to outstrip demand. Given that Apple remains the largest PC supplier to the education market, a bespoke or tailored internet access product would appear to present a reasonable revenue opportunity.

Apple’s current mantra is one that Wall Street loves to hear: focus, focus, focus. Jobs told ComputerWire that the company is currently addressing all of its key markets. We asked him if Apple has an opportunity in the embedded, real-time or pervasive computing space. We’re not developing anything in the embedded space are we? he asked SVP hardware John Rubenstein with a smile. No, replied Rubenstein, returning the smile.