Apple updates iPod lines, replaces Apple TV unit

Apple CEO Steve Jobs displays the new AppleTV at news conference in San Francisco, Wednesday (AP photo)

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SAN FRANCISCO – Apple Inc. announced a smaller, cheaper version of its Apple TV device for streaming movies and TV shows over the Internet and into the living room. It also unveiled a new line of iPods, including a touch-screen Nano model.

The new Apple TV announced Wednesday will let people rent, not buy, content. For first-run high-definition movies the day they come out on DVD, people will have to pay $4.99. High-definition TV show rentals will be 99 cents.

The price of the box also is being cut to $99, from $229. Cheaper options for streaming video had been available, including Roku’s set-top boxes that start at $60.

Apple TV has been around since 2007, but it hasn’t caught on with the mainstream. It doesn’t record shows the way TiVo and other digital video recorders do.

“We’ve sold a lot of them, but it’s never been a huge hit,” Jobs told hundreds of journalists, bloggers and analysts in San Francisco.

He said the previous Apple TV setup was too complicated for average consumers. The new Apple TV, which will be available within a month, will give people access to the high-definition version of movies just released on DVD, although he didn’t say which movie studios had agreed to include their titles for streaming.

TV episodes from News Corp.’s Fox and The Walt Disney Co.’s ABC will also be available, including hits such as “The Simpsons” and “Glee.”

People who watch content from Netflix Inc. streamed over the Internet also can access their “instant” queue through Apple TV.

Jobs said only News Corp.’s Fox and The Walt Disney Co.’s ABC were willing to license their shows for streaming so far, but he said he hoped others would join once the service gains popularity.

Earlier, Jobs unveiled an iPod Nano that lacked buttons. Instead, controls for playing, pausing and selecting music are right on the screen. It will cost $149 for the 8 gigabyte version and $179 for 16 gigabytes. Like previous versions, the Nano has a built-in FM tuner and can display photos.

In a refresh to the iPod Touch, Apple is adding video-chat features similar to the newest iPhone. It has a front-facing camera for conducting video chats with other iPod Touch and iPhone users over Wi-Fi using Apple’s FaceTime program. A camera on the back can be used for taking snapshots and recording video. Prices range from $229 to $399.

Jobs also introduced a new iPod Shuffle, the lowest-end music player in Apple’s line. Like the past generation, it can speak the names of playlists and songs, but unlike the most recent version, the new $49 device brings back the square shape and buttons of Apple’s second-generation Shuffle.

Apple also anounced social feature additions to its iTunes software. Jobs said iTunes 10 brought new ways for people to learn what their friends were listening to.

The Ping section in iTunes lets people “follow” friends, musicians and others, similar to the way Facebook and Twitter work. Ping builds custom top-10 lists based on what the people someone follows are listening to.

Jobs also said iPhone users would be getting a software update that offers the ability to upload high-definition video over Wi-Fi. And when people take photos, the new software will save three slightly different copies that, when combined, make for a sharper image.

The new software is version 4.1 of the iOS system. It will be available next week for free, initially for Apple Inc.’s iPhone and iPod Touch.

The iPad currently runs an older version, though Jobs said an update coming in November will add such features as wireless printing to Apple’s tablet computer. Apple had been criticized for making a powerful device but hobbling it by not including any ports for USB devices such as printers or thumb drives.