Apple unveils video iPod

Apple CEO Steve Jobs touts much-anticipated new MP3 player at Wednesday event.

Speculation that Apple Computer would unveil a video iPod on Wednesday was right.

The iPod has "been a huge hit for us, so it's time to replace it," Apple CEO Steve Jobs said as he showed the new product at a press event. "Yes it does video."

The music player will come in a 30GB model for $299 and a 60GB for $399. Those are the same prices as current models, which have capacities of 20GB and 60GB.

Jobs kicked off the event in San Jose, Calif., by revealing a new iMac G5 that will be similar to the current model, but thinner. It will have a built-in iSight camera with still and video capabilities and a remote control with a 10-foot range for music, photos and video.

At the gathering, Jobs used the tiny white remote control like an oversized iPod Shuffle to play a Black Eyed Peas video and an "Incredibles" DVD and also to play home movies and photos.

For the full story on Apple's new iPod and iMac, as well as its new version of iTunes, click here.

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