The new "iPod Touch" will allow users to access the Internet and watch YouTube videos, as well as buy songs and albums wirelessly from the iTunes Music Store. Like the iPhone, it will also allow users to watch TV shows and movies that were downloaded to the device via a PC or Mac.
The new device has a 3.5-inch wide-screen display, is 8 millimeters thin and will sell for $299 for an 8-gigabyte model and $399 for a 16-GB version, which will support up to 22 hours of audio playback and up to five hours of video playback (video capacity is based on H.264 1.5-megabits-per-second video at 640-by-480 resolution).
“The iPod Touch is a landmark iPod, ushering in a whole new generation of features based on its revolutionary multitouch interface and built-in Wi-Fi wireless networking,” said Steve Jobs, Apple’s CEO, in a statement. “People are going to be amazed at how thin it is and how much it does.”
The device's Safari Web browser includes built-in Google Search and Yahoo! oneSearch, as well as Apple’s YouTube application that allows users to access, browse and search for millions of free YouTube videos over Wi-Fi.
Apple also announced that it was lowering the price of its 8 GB iPhone from $599 to $399 and introduced an exclusive agreement with Starbucks that allows iPod Touch or iPhone users to access the iTunes Wi-Fi Music Store free-of-charge in participating U.S. Starbucks stores starting next month.