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New iPods may have some iPhone features

July 9th, 2007 at 2:40 pm

Source:  Bloomberg News

Apple Inc. may introduce new models of its iPod media player by January that have the iPhone’s touch-screen display, Piper Jaffray & Co. said.

"The iPhone reveals much of what the iPod will soon be," analyst Gene Munster said today in a report. The $299 device will have the features of the iPhone without the wireless connection or Web browser, he said.

Apple has sold more than 100 million iPods since their 2001 introduction, and the device now accounts for a third of the Cupertino, California-based company’s revenue. Adding a touch screen would be the first major redesign of the video iPod since it went on sale in October 2005.

Chief Executive Officer Steve Jobs wants the iPhone to capitalize on the success of Apple’s iPod music and video players. The iPhone, which went on sale June 29, combines a phone with an iPod and serves up e-mail, the Web, music and video.

Video iPods have a 2.5-inch screen operated by a click wheel, while the iPhone has a 3.5-inch widescreen display.

Shares of Apple fell $1.90 to $130.40 in early afternoon trading on the Nasdaq Stock Market. They had gained 56 percent this year before today.

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