(10-26-2004) Apple Rocks With U2 -- Reuters*

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Apple Rocks With U2

By Duncan Martell

SAN JOSE, Calif. (Reuters) - Apple Computer Inc. rolled out on Tuesday a new iPod that allows users to view and share photos, a dramatic expansion that takes the most popular digital music player squarely into the multimedia realm, while spurring its rivalry with Microsoft Corp. and others.

Apple also has hooked up with Irish rock band U2 to announce the iPod U2 Special Edition, a black model with a bright red click-wheel and holds up to 5,000 songs.

The timing of Apple's U2 iPod release coincides with the upcoming Nov. 23 release of the Dublin-based band's new album "How to Dismantle an Atomic Bomb."

The U2 iPod will sell for $349 and is expected to be available in mid-November.

'EVEN BETTER THAN THE REAL THING'

The Cupertino, California-based computer maker also said it created the online music industry's first-of-its-kind "Digital Box Set." The set, "The Complete U2," will contain over 400 tracks including all of the band's albums. Fans will be able to buy and download it with just one click on the iTunes Music Store in the United States and Europe beginning in late November for $149.

Since the iPod's introduction in October 2001, Cupertino, California-based Apple has sold more than 6 million iPods, 2 million alone in Apple's most recent quarter.

Apple remains the undisputed leader in digital music players and online music sales with the iPod, iPod mini and the iTunes online music store.

But rivals are converging on the market, with No. 1 software company Microsoft earlier this month officially launched its own music store. Also earlier this month, Dell Inc. announced a slimmed-down player and Virgin Electronics has weighed in with its own tiny player.

Bono told reporters after he and U2 guitarist The Edge performed two songs from the new album that U2 was not paid to appear in the iPod ads, and that the band and Apple would share profits from the U2 iPod.

"It's a horizontal relationship rather than a vertical one," Bono said. "We will make (money) on the products that we put out together. If they don't sell, we won't."

The Edge said he sees the partnership with Apple as the beginning of a wholesale transformation in the distribution of music, to an online world from a physical one of CDs.

"We wanted to find an innovative way to redefine the distribution of music," The Edge told reporters. "We see it as the next step for the music business." (Additional reporting by Lisa Baertlein in San Francisco)

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RIP OFF

too much money!!!!!!!!!!!!!!!!!!!!!!!!!!, they are worth millions why raise the price for a black colored ipod, i mean if it came with actual autographs and some literature or book or something. C'mon guys , this is a marketing/publicity ploy. I am not objeting to this , but am not supporting it!!
 
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