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Chief Executive Steve Jobs, announcing the new products at the MacWorld exposition on Tuesday, also said that Apple had sold 4.5 million units of its blockbuster iPod in the 2004 holiday quarter.
Apple shares fell nearly 4 percent, as some suggested that the news had been priced into the stock, thanks to widespread rumours ahead of the show.
"There was so much expectation built in for the stock ... I think that the expectations were about as high as they could get for it," said Marc Pado, U.S. market strategist at Cantor Fitzgerald & Co. "I think it was a case of buy on the rumour and sell on the news."
The iPod sales figure was also slightly below some Wall Street forecasts. Banc of America Securities had predicted iPod sales of 4.6 million units in a note on Tuesday. Prudential had predicted 4.25 million units.
Apple said the new "iPod shuffle" was smaller and lighter than a pack of gum and would come in 512 megabyte and 1 gigabyte capacities. The smaller one would hold about 120 songs, Jobs said.
The new iPod falls into a category of music players that use "flash memory," like that found in digital cameras and some portable disk drives, rather than hard drives like the other iPod models.
"We'd like to go after the remaining mainstream flash market," Jobs said, noting that the flash memory-based digital player market is currently highly fragmented. "The products are all pretty much the same."
He also claimed the iPod holds a 65 percent share of the entire market for portable digital music players, up from only 31 percent a year earlier.
Apple said a number of car companies like Mercedes-Benz USA, Volvo, Nissan and Ferrari were working to integrate the iPod line into their car stereo systems.
The "Mac mini" will come in $499 and $599 models. Weighing in at less than 3 pounds and 2 inches tall, the box has digital media ports that let it connect to televisions as well as traditional PC monitors.
Jobs' announcements were awaited eagerly by the Mac faithful worldwide, though they offered no real surprises, unlike in previous years. The new iPod and the smaller Mac were telegraphed by the many online Mac rumour sites in recent weeks, some of which are being sued by Apple for those leaks.
I know it's alot to read but I dont think I can give you a link cause you have to register.
Anyways, I think this is pretty good news and a 1GB iPod would sell loads because it'll be cheap and have resonable memory.
The wheel is also more natural when navigating; there's just an up down arrow for the Micro, which can cause a minor hesitation as you flick through whatever. Whereas clockwise is always fowards, anti = backwards with the wheel.
AS I said though, a worthy alternative to iPod mini, I would have certainly considered it if I hadn;t already got one.
> I have an ipod, and you may have 40 hours battery with your zens and
> STUFF. But when are you away from your plug for more then 12 hours?
Um, when you go on holiday or on a long journey? It also gets rid of the need to carry the charger with you everywhere!
And my old ZEN is the 'brickiest' thing that you'll ever see, yet nobody ever sees it BECAUSE IT'S IN MY BAG ALL THE TIME!
Nobody ever sees it, because I don't go parading it down the road showing it to everyone! This is why I don't get people saying that the iPod looks better and that's a reason to buy it...
Hard one.
And you save some money because its like buying a brick as sheepy said.
The Zen stuff looks like a brick. I don't care if you save a tenner on it.