Cupertino, Calif. - Apple CEO Steve Jobs on Wednesday announced that the company will slash the price of its iPhone, released just over two months ago, from $599 to $399 for the 8GB version, adding that the company is on track to sell one million of the devices by the end of this month.

Jobs also unveiled the first touch-screen iPod, which will also offer Wi-Fi connectivity on the device for the first time.

The Wi-Fi connection will enable Web browsing on the iPod touch using a mini browser, and allow wireless music download purchases from the iTunes Store.

The company also brokered a deal with Starbucks, to offer free Wi-Fi surfing to the wireless iTunes Store -- from an iPhone or computer with iTunes, in addition to the new iPod -- from 5,800 Starbucks locations in the U.S. by the end of next year.

An 8GB version of the iPod touch, slated to begin shipping this month, will cost $299, while a 16GB model will sell for $399.

Also introduced were a new iPod nano that plays video, which will sell for $149 (4GB) and $199 (8GB), and the iPod classic -- the sixth-generation iPod, which will feature an all-metal anodized aluminum and polished stainless steel enclosure, and larger hard drives featuring 80GB ($249) or 160GB ($349) of storage.

Apple will also enable iPhone users to purchase versions of songs from the iTunes Store as ringtones for the first time.

The company said itthat its iTunes software has now been downloaded over 600 million times, and that its iTunes Store has now sold over 3 billion songs and 95 million videos.  

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http://tinyurl.com/2xe3m5 (Engadget)