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The Honolulu Advertiser
Posted on: Wednesday, September 10, 2008

Apple announces sleek iPod redesigns, truce with NBC

By Jordan Robertson and Jessica Mintz
Associated Press

Hawaii news photo - The Honolulu Advertiser

Apple CEO Steve Jobs debuted redesigned iPods yesterday, including ultra-thin Nanos and new versions of the Touch model. Despite the new products, Apple's shares fell 4 percent.

PAUL SAKUMA | Associated Press

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SAN FRANCISCO — Apple Inc. CEO Steve Jobs took the wraps off a revamped line of iPods yesterday and trumpeted a truce with NBC Universal that means the TV network will begin selling programs again on iTunes.

The iPod announcements were largely expected, but investors were less than energized, sending Apple's shares down $6.24, 4 percent, to close at $151.68.

The iPod upgrades Jobs revealed yesterday in a theater in San Francisco include two slick new Nano models, oval-shaped devices that Jobs said are the thinnest iPods Apple has ever made. A $149 version comes with 8 gigabytes of memory (enough for 2,000 songs); a 16-gigabyte version (which holds 4,000 songs) is $199.

Jobs also showed off three new versions of the iPod Touch, which is much like an iPhone except it doesn't make calls. An 8-gigabyte version of the new model will sell for $229; a 16-gigabyte Touch will be $299 and a 32 GB model will be $399.

In the deal with NBC, the television network is coming back to iTunes, a year after pulling out in a dispute over the prices Apple charges for shows it sells on the online service. At that time, programming controlled by NBC Universal, a unit of General Electric Co., made up an estimated 40 percent of the video downloads on iTunes.

At the height of the spat, Apple said NBC had sought more than double the wholesale prices for its shows, which would have resulted in shows selling for $4.99 each. NBC disputed that, and said it wanted only to be able to sell programs at different prices.

But with its muscle in the market for digital downloads, Apple appears to have won the battle. NBC's programming will sell for the same prices as other TV shows available on iTunes.

High-definition shows, a new addition for iTunes, will sell for $2.99 each. Shows in standard definition cost $1.99. Some older shows are available for 99 cents apiece.

Appearing thin but energetic, Jobs kicked off the event by flashing a message on a screen behind him: "The reports of my death are greatly exaggerated."

Jobs borrowed that line from Mark Twain in reference to obituary preparedness on Jobs that was accidentally posted by Bloomberg News and then retracted. News outlets regularly prepare obituary material on famous people.