Apple Announces new iPods, $399 iPhone, and More

iTunes and iTunes Wi-Fi

Apple today unveiled the iTunes® Wi-Fi Music Store, offering the ability to browse, search, preview, purchase and download songs and albums from the iTunes Music Store over a Wi-Fi network directly onto their iPod touch or iPhone. Once they connect their iPod touch or iPhone back to their PC or Mac, downloaded music will automatically sync back into their iTunes library. If users have only partially downloaded a song or album onto their iPod touch or iPhone, their computer will complete the download automatically. Prices and selection on the iTunes Wi-Fi Music Store are the same as on the regular iTunes Store.

In addition, iTunes customers will now be able to create custom ringtones by selecting up to a 30-second segment from over a million participating songs on iTunes and sync them onto their iPhone. Once a customer has purchased a participating song from iTunes, including previously purchased participating songs, it will cost 99 cents to make up to a 30-second segment of that song into a ringtone and sync it onto their iPhone. Customers can personalize their ringtones by choosing which portion of the song they want to use, and setting custom fade in and fade out points. iTunes 7.4 is now available and includes a larger viewing area for movies and TV, filling the entire iTunes window.

Apple and Starbucks announced an exclusive partnership that lets customers wirelessly browse, search for, preview, buy and download music from the iTune® Wi-Fi Music Store at Starbucks onto their iPod touch, iPhone or PC or Mac running iTunes. When a customer enters a location the device will recognize the iTunes Wi-Fi Music Store with no connection fee or hotspot login. Customers will be able to browse, search and preview of songs, including a new “Now Playing” service which displays the name of the song playing in the Starbucks at that moment, and buy and download songs to their device. Prices and selection are the same as on the regular iTunes Store. The service will make its debut at more than 600 Starbucks locations in New York and Seattle on October 2 the store will then continue its rollout to 350 Starbucks stores in the San Francisco Bay area on November 7; 500 stores in Los Angeles in early February 2008; 300 stores in Chicago in March 2008; and additional markets throughout the US later in 2008. The iTunes Wi-Fi Music Store at Starbucks will run on the robust T-Mobile HotSpot Wi-Fi network which is available at participating Starbucks locations across the US.

iPod Lineup Revamped

Apple also revamped their entire iPod lineup. The iPod nano now brings video playback, an enhanced user interface with Cover Flow, and a new design. The new iPod nano features a larger two-inch display with 204 pixels per inch which supports video and games. iPod nano delivers up to 24 hours of audio playback or five hours of video playback, is encased in a new design made with anodized aluminum and polished stainless steel and comes in five new colors—silver, black, blue, green and a (PRODUCT) RED special edition. Available today, the 4GB iPod nano comes in silver for $149 (US) and the 8GB model is available in silver, black, blue, green and a (PRODUCT) RED special edition for $199.

Apple also introduced the new iPod classic, featuring 80GB or 160GB of storage, an enhanced user interface featuring Cover Flow, and a new all-metal enclosure. iPod classic is priced at $249 for the 80GB model and $349 for the 160GB model. The iPod classic features up to 40 hours of music playback and seven hours of video playback in the 160GB model, and up to 30 hours of music playback and five hours of video playback in the 80GB model on a single charge.

Rounding out the iPod lineup is the new iPod touch (aka iPhone without the phone) featuring multi-touch user interface, Wi-Fi, Safari, YouTube, and the new iTunes Wi-Fi Music Store lets users wirelessly browse, preview and buy songs and albums. The iPod touch features roughly the same dimensions as the iPhone and is priced starting at $299. iPod touch features up to 22 hours of audio playback and up to five hours of video playback.

iPhone Price Drop and New Features

Apple is on track to sell its one millionth iPhone before the end of September, and is lowering the price of the to $399 for the 8GB model. The 4GB model is being discontinued but will be offered for $299 at stores while supplies last. A software update is coming to the iPhone later this month to add the new iTunes Wi-Fi capabilities.