Apple cuts iPhone price and revamps iPods

SAN FRANCISCO (Reuters) - Apple Inc sharply cut the price of its iPhone on Wednesday and revamped its full iPod line, including adding a model with a touch screen that can browse the Web and buy songs wirelessly.

While a $200 cut in the price of the most powerful iPhone to $399 raised some investor concerns about demand, the move and an array of new iPods, such as tiny colored nanos with video screens, left analysts forecasting Apple would stay ahead of the pack among gift-givers at the crucial year-end sales.

"It's hard to see how anyone is going to take much ground away from them this holiday," said Jupiter Research analyst Michael Gartenberg.

The new touch-screen iPod, from $299, will have many of the features of the iPhone, including the ability to connect to the Internet using Wi-Fi wireless technology, and a mini Web browser that can view YouTube videos and search on Google Inc. and Yahoo Inc sites.

The revamped iPod line ranges from $79 clip-on, colored "shuffles" to the multifunction iPhone. Apple also said it iTunes online store now lets iPhone users turn songs into ring tones and can sell songs wirelessly to the iPhone and touch- screen iPod, bypassing the computer for the first time.


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