News 

The iPod touch will allow users to surf the web with the Safari browser and download songs over the internet via iTunes. The device is essentially an iPhone without the phone capabilities, sporting the same 3.5in display as its predecessor. It will come in 8GB and 16GB versions, with both models expected to hit the UK this month.

"The iPod touch is a landmark iPod, ushering in a whole new generation of features based on its revolutionary multi-touch interface and built-in Wi-Fi wireless networking," says Steve Jobs, Apple's CEO. "People are going to be amazed at how thin it is and how much it does."

"Other people have tried wireless and it's failed, but we think we know what it takes to make it successful. We've built in Wi-Fi and we've made it usable," he added, in a thinly-veiled dig at the Zune.

In other developments, Apple has slashed the cost of the iPhone. The price of the 8GB model has been cut to $399

ADVERTISEMENT

from $599, while the bottom of the range 4GB iPhone has been discontinued.

Video playback has been brought to the redesigned iPod Nano range. The 2in screen boasts a 320x240 resolution, and the device will also use the iTunes CoverFlow feature, that allows you to flick through the album covers using the click wheel. The devices will be available in 4GB and 8GB capacities.

The new iPod family (from left to right): the touch, classic, nano and shuffle

Meanwhile, the conventional hard disk-based iPods have been given a massive boost in capacity. The iPod classics will now come in 160GB and 80GB versions, the largest model holding up to 40,000 songs or 200 hours of video, according to Apple.

On a night of few surprises Jobs did pull one out of the bag, announcing an unusual tie up with Starbucks which will allow US customers to access the playlist of background music for Wi-Fi enabled stores and instantly purchase the songs they are listening to.

"One of the most asked question when a customer walks into a Starbucks is 'what song is that I'm listening to.' Now with one click they'll be able to find out and buy it," says Howard Schultz, chairman of Starbucks. Click here for more details of the Wi-Fi store.