Updated Sep.7,2007 10:48 KST

Apple Rolls Out Revamped Ipod
Apple has unveiled the latest version of its flagship iPod MP3 player, jacking up the competition with its rivals in the digital music market. Called the iPod touch, the new device marries the features of a PDA to the popular music player.

The new gadget looks similar to the iPhone, Apple's handset. It comes with basic PDA functions like a calendar, stores and plays video files, and allows users to surf the Internet over WiFi. The iPod touch comes in 8GB and 16GB versions and costs US$299 and $399, respectively.

To counterattack, Microsoft announced Thursday that it will lower the price of its Zune MP3 player to $199 from the current $249. Some international press agencies including Reuters have reported that Microsoft is developing a mobile phone combined with features of the Zune to compete with Apple's iPhone.

Apple has also reduced the price of the iPhone, indicating the company is looking to expand the handset's user base, said Kim Young-geon, a researcher at the LG Economic Research Institute. He expects the U.S. company to put serious effort into beating out its rivals in the MP3 player and cell phone markets.

(englishnews@chosun.com )