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Sep 5
Steve Jobs Introduces Changes in iPhones, iPods

In a strategy to gain mindshare for the holiday season, Apple Inc. (AAPL) announced a number of different changes in products and offerings throughout the company.

For the iPhone, CEO Steve Jobs said the company will cut $200 off the price. 
 
"We want to put iPhones in a lot of stockings this holiday season," Jobs said about the price cut.

Another change with the iPhone is they're dropping the 4-gigabyte version, which was priced at $499, and will now offer only the 8-gigabyte model priced at only $399. It also includes Wi-Fi.

Users of the iPhone will also be able to access the new wireless Apple iTunes store.

For Apple's new iPods, they'll also include Wi-Fi, and will start at $299. The wireless capability of iPod Touch will allow users to download songs wirelessly, and will end up with the ability to be used in all Starbucks (SBUX) stores in the United States which offer Wi-Fi Internet.

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The new service will roll out on October 2, and will begin in 600 stores in Seattle and New York. In November it'll be introduced into the San Francisco area in 350 stores. By the end next year it's expected it'll be in most U.S. Starbucks stores.

The new iPod will be under one-third inch thick and can store all types of digital data, including photos, videos and music. The touch-screen display used on the iPhone will now be part of the iPod Touch as well.

Included with iPod Touch will be the Safari Web browser, along with major search engines Google (GOOG) and Yahoo (YHOO). The screen will also be bigger and better for viewing video.

There will be two versions of the new iPod, with an 8-gigabyte model priced at $299 and a 16-gigabyte model at $399.

The iPod classic, now the name of the hard-drive based iPod, remains pretty much the same, other than an increase in capacity. There will be two versions: one an 80-gigabyte model selling for $249 and a huge 160-gigabyte model priced at $349. The old product was the same price for smaller 30-gigabyte and 80-gigabyte models.


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