News24.com has the details.

California - Apple Computer Inc. on Tuesday introduced a new larger-capacity iPod with a colour display as well as a first-of-its-kind digital compendium of the rock band U2's songs.

U2's lead singer Bono and guitarist The Edge joined Apple chief executive Steve Jobs on stage in a newly renovated 1920s era theatre in San Jose to unveil the new products.

Apple's latest effort to maintain supremacy in the portable audio player market and the online music business also includes a new special edition U2 iPod.

Analysts expect the Apple-U2 partnerships to be the first of many to come between artists and music product providers.

With three-quarters of the MP3 player market and successive profitable quarters, Apple did not really need to do more this year to enhance its standing. But, it seems that Jobs and designer Jonathan Ive never rest. Once again, they have pleasantly surprised us.

Today, Merrill-Lynch raised estimates on Apple's stock because of the launch of the new iPods and iPod store.

Merrill Lynch raised estimates on Apple Computer after the company unveiled its iPod Photo--earlier than the research firm expected--and announced the iPod U2 special edition.

. . .Merrill-Lynch, citing increased iPod shipments, raised the estimate for the fiscal first quarter ending December to earnings of 42 cents per share on revenue of $2.95 billion, up from earnings of 40 cents per share on revenue of $2.85 billion.

Lie to me. Say the iPod is just a geegaw. That you prefer your compact disc player. Besides, you are not the acquisitive sort. But, be warned, those droplets falling from your mouth to your keyboard give you away.

Note: This entry also appeared at Mac-a-ro-nies.