Apple cuts iPhone price and revamps iPod

Apple cut the price of its hot-selling iPhones and unveiled a slick touch-screen iPod as part of a bold product line overhaul aimed at boosting year-end holiday season sales.

SAN FRANCISCO: Apple cut the price of its hot-selling iPhones and unveiled a slick touch-screen iPod as part of a bold product line overhaul aimed at boosting year-end holiday season sales.

"I think it is a deep and complete line-up," Jupiter Research analyst Michael Gartenberg told media yesterday after watching Apple chief executive Steve Jobs introduce revamped iPod models and the new iPod Touch.

"A lot of consumers said they don't want a new mobile phone but they want all the other stuff the iPhone has."

Apple's tinkering with its money-making iPod line was done shrewdly, with the company adding video, memory or other coveted features while not pushing up prices, according to analysts.

"Apple has models with a range of appeal -- fashion, function, price," Gartenberg said. "Apple has set the bar high for competitors."

IPod Touch models feature Apple's Safari web browser and a built-in wireless antenna, meaning users can connect directly to the Internet at Wi-Fi "hot spots" the same way they might with a laptop computer.
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Apple built custom Google and Yahoo search functions into iPod Touch models, along with YouTube video viewing and an iTune Wi-Fi Music Store that permits shopping at the online store without going through a computer.

Eight gigabyte iPod Touch models are priced at $299 and 16 gigabyte models at $399.

The iPod Touch models have been localised to an array of languages and will be the first part of the new product line to ship worldwide, according to Jobs.
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