Apple slashed the price of the iPhone by $200 to bolster holiday sales, an Associated Press report said.
The report said the company also revamped its iPod media player lineup, introducing a model called iPod Touch that incorporates the iPhone's touch-screen and adds the ability to wirelessly download songs directly. It introduced a new version of the best-selling iPod, the Nano, that plays video.
And it announced a partnership with Starbucks: Starting in October, the coffee chain's icon will light up on the Touch whenever a user nears a shop that has Wi-Fi access, the Associated Press report said,
The report said users can then download the song that's playing in that Starbucks shop or get a list of the 10 most recent songs played.
Analysts expect Apple's new iPods will help the company clinch yet another blockbuster holiday selling season. But it will also have to deal with investors who love Apple's meaty profit margins and customers who are suffering from a bit of buyer's remorse.
Apple CEO Steve Jobs said the company is on its way to selling 1 million iPhones in the