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Apple (Nasdaq: AAPL) on Tuesday introduced the latest in its line of special edition iPods.
The new iPod U2 Special Edition debuts as part of a continued partnership between Apple, U2 and Universal Music Group. The new U2 iPod is based on the fifth generation 30 GB iPod and holds up to 7,500 songs, 25,000 photos or over 75 hours of video.
"We're thrilled to continue working with one of the greatest bands in the world to bring U2 fans a special edition of the world's best digital music player," said Greg Joswiak, Apple's vice president of worldwide iPod product marketing 
. "With its distinctive new design, including an all-black stainless steel enclosure, the new U2 iPod is sure to be a hit."
Betting on U2
Sales of iPod and content sold through iTunes accounted for 50 percent of Apple's sales in the first quarter, up from 38 percent a year earlier. Apple is betting on the legendary Irish band to fuel even more demand for its MP3 player.U2 is as hot -- perhaps even hotter -- than the iPod. The band's record-breaking Vertigo 2005-2006 Tour played to more than 3 million fans in 25 countries worldwide. Its latest album, "How to Dismantle an Atomic Bomb," won five Grammy awards this year.
Inside Digital Media Senior Analyst Phil Leigh, however, does not believe these cosmetic changes will do much to expand Apple's market. It may be a good co-branding deal , but it still has only niche appeal, he observed.
"This is an incremental step forward, but it's not really a major advance like the nano, the shuffle or the iPod video. Apple has targeted specialty niche markets in the past, including a U2 version of the iPod last year," Leigh told MacNewsWorld.
Rockin' Specs
Still, for U2 fans, and there are many, the new model offers potentially attractive features like the all-black stainless steel enclosure, red click wheel and custom engraving of U2 band member signatures.
U2 iPod customers will also receive 30 minutes of exclusive U2 video downloadable from the iTunes Music Store. The new U2 iPod is available immediately for US$329.
Like all iPods, the new model boasts seamless integration with the iTunes Music Store and the iTunes digital music jukebox. The U2 iPod also gives users up to 14 hours of battery life for music playback.
What's new in the U2 iPod is Apple's patent-pending Auto-Sync technology that automatically downloads digital music, podcasts, photos, audiobooks, home movies, music videos and popular television shows onto the iPod and keeps them up to date by plugging the player into a Mac or Windows computer using USB 2.0.
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