Apple unveils ‘Touch iPod’ that can surf the web

By Cory Bergman 

Updated: Steve Jobs has just unveiled a “Touch iPod” with a 3.5 inch widescreen and the same touch functionality as the iPhone. And with WiFi! So you can browse the internet via a Safari browser with that same flip, zoom, scroll functionality. And you can watch YouTube videos, as well as video off your iPod, of course. “The iPod looks exactly like it does on the iPhone,” blogs Gizmodo’s Jason Chen. And just 8mm thick. You can also purchase and download content from iTunes straight from the device. When you sync up later, it will port the song over to your computer’s iTunes collection. (Jobs also announced this new feature for the iPhone, as well.)

And that’s not all. “When you get near a Starbucks location, you’ll get a Starbucks icon in the iTunes store,” blogs Chen. “You can buy songs that are playing over the Starbucks music selection, and you can even look at the last 10 songs played and buy the songs there.” Wow! Starbucks just became a major music player.

“It’s one of the seven wonders of the world,” Jobs proclaims. Two models: 8GB for $299 and 16GB for $399. They’ll ship by the end of the month. Oh, and price just dropped on the iPhone. There’s only one model now, the 8GB, and it’s $399 (instead of $599). And Jobs also unveiled new iPod Nanos with a 2-inch color video screen.

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Gizmodo live-blogged the keynote (with photos) here. And Engadget did the same here. We’re still waiting for the new stuff to appear on the Apple store.

Related: Microsoft cuts $50 off price for Zune.

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