Apple Announces New Ipod Models

Apple has unveiled an 80-gigabyte version of its iPod music and video player as part of a fight back against rivals threatening its dominance of the digital music market.

The company also confirmed rumours that it had struck a deal allowing users of its iTunes online music store to download copies of selected titles by Disney, Pixar, Touchstone and Miramax.

The $349 (£186) 80gb iPod will be the most capacious model yet, with a third more storage than the 60gb photo iPod released in 2004.

Also announced at the keenly-awaited product launch at Apple's San Francisco offices was a thinner version of the iPod nano that would be available in five colours and boast a 24-hour battery life.

Feverish speculation typically surrounds Apple's theatrical product launches, and this year there was speculation that chief executive Steve Jobs was to announce an iPhone that would mark the company's first foray into the phone handset market.

But the relatively modest developments announced today are hoped to consolidate Apple's position in a highly competitive field.

The iTunes music store has long been a key element in Apple's control of an 80% slice of the online music market, but challengers are increasingly attacking the pre-eminence of the service.

eMusic, a subscription-based site which offers downloads that are less restricted in the ways users can listen to them, launched across Europe yesterday and new contender SpiralFrog is due to launch later this year with a free download offering that will have access to Universal Music's back catalogue.

Many observers of Apple had expected a much more dramatic launch today that would shake up the film market in the same way that the iPod shook up the music market. The announcement falls short of that, although other film studios are believed to remain in talks with Apple over adding their films to the service.

The cooperation of the four Disney-owned studios included in today's announcement would have been eased by Mr Jobs' position as a Disney board member and founder of Pixar.

Several other companies have already released hard disk-based digital video players with up to 100gb storage, but none have the market position and brand recognition enjoyed by Apple's iconic music player.