Apple excites world with new iPods, iTunes and cheaper Apple TV

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The new sixth generation iPod Nano is more radical. Gone is the signature click wheel, replaced by a multi-touch enabled screen. Also gone is the 2.2-inch screen – now the Nano has a 1.54-inch screen. Like the new Shuffle, the new Nano also has an aluminium casing and hardware buttons for hold and volume controls. The new Nano will also include FM radio and a built-in clip mechanism that Shuffle users are familiar with. However, Apple has ditched the voice recorder functionality and video camera. In fact, the new Nano is completely camera-less.

The new iPod Nano has a square shape and comes in seven different colors, including a Product (RED) version. The 8GB model is priced at $149 while the 16GB model is priced at $179.

But the biggest change was seen in the iPod Touch. The device is thinner and sleeker and now includes many iPhone 4-like features including a high resolution (960x640 pixels) "retina" display, A4 1GHZ processor, 3-axis gyroscope motion control and front and rear facing cameras. While the rear facing camera can record videos in HD (no, it cannot take photos), the front facing camera supports video calling and VGA photo shots. However, like the iPhone 4, the new iPod Touch will be able to support video calling only over Wi-Fi network. In fact, the new iPod Touch can do almost everything the iPhone can do except perhaps make voice calls.

And, most importantly, the new Touch comes with an improved battery life - it supports up to 40 hours of music playback and seven hours of video playback on, yes, a single battery charge!

The new iPod Touch will sell for $229 (8GB), $399 (32GB) and $399 (64GB).

No wonder, Apple co-founder and CEO Steve Jobs said Apple has "gone wild" with the new models that are up for pre-orders beginning today and will be available next week.

As expected, Apple also refreshed the iTunes store by giving it a new look (logo) and adding a new social networking feature called Ping. With Ping, iTune users can now track the music selections of their friends and artists they are interested in.

Ping users will also be able to follow bands and get updates on their new releases, concert tours and other events.

"Ping is for social music discovery. It's a social network all about music," Jobs said. "You can follow people and you can be followed." Ping also comes with privacy controls that allow you to choose your followers.

Jobs also said the price of HD-quality TV show rentals in iTunes has fallen from $2.99 to $0.99 per episode. The new price will only be applicable for TV shows shown on ABC and Fox networks.

Apple also unveiled a new look Apple TV, a set-top box that has so far failed to rival other Apple devices in terms of popularity. The device now sports a smaller look - it is about one-fourth its former size and also sports a smaller price tag - $99 as against $229.

Apple said the diminutive set-top box will jazz up the living room by offering high quality entertainment at a cheap price. Apple TV, which only offered movies for sale to date, will now only rent them out to keep prices down. While first run movies can be rented for $4.99, HD-quality TV shows from Fox and ABC networks can now be rented for only $0.99.

Owners of the console will also be able to hook up to YouTube for videos, Netflix for movies, Flickr and MobileMe for photos and iTunes for podcasts.

And, as expected, Apple TV no longer will come with a hard drive as everything will be streamed. It also has a maximum video output of 720p, which means it will not support HD (1080p) streams from Netflix or iTunes. The new black box will be available later this month.

At the event, Jobs also announced the launch of iOS 4.1 software update that addresses a number of bugs that have affected the proximity sensor of the iPhone 4, as well as issues connecting some Bluetooth devices. The new update also fixes sluggish performance in older versions of iPhones that run iOS 4.

The newer version of the proprietary iOS software, which will be released next week, will give iPhone and iPod Touch owners access to TV show rentals, a photo process called High Dynamic Range to produce clearer, sharper photos and HD video uploads over a Wi-Fi network.

iOS 4.1 also heralds the official launch of Apple's Game Center, a built-in systemwide social hub for gamers. Similar to XBox Live, Game Center comes complete with leaderboards, in-game achievements and online multiplayer.

Jobs also showcased AirPlay (previously called AirTunes), which will come to iOS devices courtesy of November's iOS 4.2 update. It allows users to stream not only songs, but also videos and photos from iOS devices to other Wi-Fi devices around the house. With AirPlay, Jobs said, a video on the iPad could be played on a television set through the Apple TV.

"You are going to be able to be watching a movie, come into your living room and press a button and continue watching it on your TV," Jobs said. "It is going to be pretty cool."

The new software will also allow wireless printing from iPad tablets.

Investors warmed up to Apple's announcement helping shares of the Cupertino, California-based company close up 2.97 percent at $250.33 on Wednesday.

According to Edward Jones analyst Bill Kreher, the improvements in iTunes show Apple's continuing to "move in the right direction" with its music business.

To date, Apple has sold over 275 million iPods since first introducing the device in 2001. And even though the iPod showed signs of reaching market saturation in Apple's fiscal third quarter - Apple said in its fiscal third quarter it sold 9.4 million iPods in the period, an 8 percent decline from the year ago period and the fifth straight quarterly decline - revenue from iPod sales climbed 4 percent year-on-year to $1.55 billion.

And, playing a major role in the success of the iPod is the iTunes store.

According to The NPD Group, it is music not apps that have made iTunes so successful. Though nine out of ten iPhone or iPod users are downloading at least one free application, NPD said 56 percent of iTune buyers shop for music while the majority of iTune users spend search time looking for music. NPD also said iTunes accounted for 28 percent of all US music purchases and 70 percent of all digital sales in the first quarter.

Apple also said in February iTunes store has sold over 10 billion songs since its founding.

While NPD Group analyst Ross Rubin said Ping, which closely resembles other music subscription services like Zune and Rhapsody that let members share their thoughts on music, could lead to more music discovery for consumers and more purchases for Apple, Piper Jaffray analyst Gene Munster said the new Apple TV reveals Apple's strong desire to "be a bigger player in the living room."