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As for the iPod Touch, Apple watchers had speculated for days that Apple would unveil an iPod similar to its new mobile phone. Though slimmer than the iPhone, the iPod Touch features a similar multitouch interface, built-in Wi-Fi and the Safari Internet browser. Like the iPhone, the iPod Touch can play YouTube videos. It will retail for $299 or $399, depending on the memory installed. One thing the iPod Touch can't do that the iPhone can: make or receive phone calls. Jobs said Apple will begin shipping the iPod Touch this month.

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But Apple makes another mobile device. It's called the iPod. And if the persistent rumors are fulfilled Wednesday during the latest episode of The Steve Jobs Show (a product presentation at San Francisco's Moscone Center), the iPod is about to get a whole lot more powerful. A wide-screen iPod that looks an awful lot like an iPhone seems like the most likely bet for the sixth generation of Apple's ubiquitous music and video player line. It also seems very likely that those new iPods will run the same stripped-down version of Mac OS X found on the iPhone, something even Jobs himself hinted at during a meeting with Apple employees on the eve of the iPhone launch.

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NEW YORK (Reuters) - Universal Music Group Chief Executive Doug Morris said on Tuesday he may try to fashion an iPod royalty fee with Apple Computer Inc. in the next round of negotiations in early 2007.

Universal, the world's largest music company, owned by French media giant Vivendi, was the first major record label to strike an agreement with Microsoft Corp. to receive a fee for every Zune digital media player sold.

"It would be a nice idea. We have a negotiation coming up not too far. I don't see why we wouldn't do that... but maybe not in the same way," he told the Reuters Media Summit, when asked if Universal would negotiate a royalty fee for the iPod that would be similar to Microsoft's Zune.

"The Zune (deal) was an amazingly interesting exercise, to end up with a piece of technology," he added.

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More than 70 percent of 2007-model cars in the United States will offer a way to link up the iPod with car stereos under the agreements, Apple said. GM will offer iPod connections on all 56 of its models, representing millions of cars and trucks, Apple said. Mazda's global 2007 lineup of cars and sports utility vehicles will offer an iPod feature as well. The iPod car feature will allow drivers to charge the digital music player and store it in a glove compartment as they listen to its songs. It will also allow listeners to use car stereo controls to select music on the iPod device.