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New iPod Will Play Video; Apple To Sell TV Shows

Apple kept the gadget guys and gals guessing until it gave up information on its new products Wednesday.

What CEO Steve Jobs announced included a new iPod that can play videos -- though it is still primarily a music device -- and new offerings in its online store, including music videos and television programs.

Jobs said that five shows from ABC will be available in the store -- including Desperate Housewives and Lost.

Music videos and television shows will be $1.99. Jobs said they will be available the day after a show airs, without commercials. It should take 10 to 20 minutes to download an episode.

For the players, a 20GB model will cost $299, and the 60 GB sells $399. Apple said it is 30 percent thinner than the current 20 GB version, though it is the same size otherwise.

The prices are the same as current models. Both are available in black or white, and start shipping next week.

Video will be shown on a 2.5-inch display, though it can also send video out to a television.

Sony's handheld gaming and video system, by comparison, has a 4.3-inch screen. A company called Archos has a video player with a 7-inch screen and 40 GB or 100 GB drives.

Jobs also showed off version 6.0 of the iTunes music software with more video capabilities and said the iTunes Music Store will now carry music videos and television shows. They will cost $1.99 each.

iTunes 5.0 was released in September. Most songs in the music store are 99 cents.

Other new products include a remote control for Macs, as well as an interface called FrontRow that allows control of music and DVDs from across the room.

Another update is a flatter iMac all-in-one desktop computer with G5 processor that had only been in Apple tower computers before. It comes with a built-in web camera and can be bought with a 20-inch screen.

Financial Performance

Despite sizzling sales of its revolutionary digital music players, shipments fell short of expectations in the fourth quarter, and Apple stock plunged more than 10 percent Tuesday.

Apple sold nearly 6.5 million iPods in the quarter, but analysts were expecting up to about 8.5 million.

In September, the company replaced the iPod mini with the sleek iPod nano.

To date, consumers have scarfed up about 28 million iPod players.

Tuesday, Apple said that it hit record revenue and earnings in the fiscal fourth quarter. It brought in $3.68 billion and profited $430 million.

Apple shipped more than 1.2 million Macintosh units and 6.4 million iPods during the quarter, representing a 220 percent growth in iPods over the year-ago quarter.

For the year, the company reported a record profit of $1.335 billion.

The company's invitation to Wednesday's event said it would introduce "one more thing," playing off Job's tendency to announce several products during a session, then roll out a perceived blockbuster at the end.