Apple unveils new video iPod

SAN JOSE (Reuters) - Apple Computer on Wednesday unveiled a version of its market-leading iPod that also plays videos and increased the iMac computer's ability to act as a home entertainment hub by adding a remote control.

The video iPod -- a long-rumoured product that could further spark sales of the popular brand -- has a 2.5-inch screen and comes with 30 or 60 gigabytes of memory. It will sell for US$299 and US$399, respectively.

The company also plans to offer music videos for US$1.99 each at its iTunes online music store, along with short films from Pixar Animation Studios.

The company unveiled the new products at a news event in California's Silicon Valley.

Apple has already sold more than 28 million iPods since their introduction in October 2001 and now has about 75 percent of the market for digital music players.

The company has refreshed the iPod line-up many times since their introduction. Apple on 7 September unveiled the iPod nano, a pencil-thin device that uses memory chips instead of hard disk drives to store songs.

The new iMac computer, which the company said would stand as an entertainment hub for DVDs, music and photos, will also directly complete with Microsoft's Media Center.

The new products come after Apple on Tuesday reported a fiscal fourth-quarter profit that quadrupled from a year ago as revenue rose 56 percent and unit sales of iPods more than tripled.