Jobs boasted that the company is unveiling a new iPod Touch, a thinner device with built-in volume controls on its side (the #1 request Apple got for the iPod Touch). The device also has a speaker.

Apple's new iPod Touch machines will come with lover prices: $299 for 8 GBs, $299 for 16 GBs and $399 for 32 GBs

And the company billed it and the iPhone as emerging platforms for games. In that veins, the company demonstrated several games for the iPhone, and iPod Touch including a version of the Electronic Arts' "Need for Speed – Undercover" expected in November.

Separately, Apple said it would sell new, stand-alone headphones. They will come with volume controls on the cord including a feature to advance a song and will cost $29.

By Mark Boslet, Editor at Large.