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Today turned out to be one of the biggest days ever for the iPod. Other than the day - almost six years ago now - when Apple launched the very first edition of the now ubiquitous MP3/video player, there hasn't been another with so many important developments.

At an event in San Francisco, Apple CEO Steve Jobs introduced a slew of new and compelling iPods, an iTunes Wi-Fi Music Store, and a huge price-cut on the iPhone that's sure to ruffle more than a few feathers, at the same time it attracts a whole slew of new people to the smartphone.

Although Apple has sold close to a record million or so iPhones since its launch a little over two months ago, that number could have been much higher. Many potential customers were turned off by Apple’s steep asking price: $599 for the 8GB version and $499 for the 4GB edition.

Those complaints should now be a thing of the past. Expect a lot more people to jump on the iPhone bandwagon now that Apple has cut the price of the 8GB version by $200 to a far more palatable $399. The 4GB iPhone, on the other hand, which has proven to be far less popular than its higher-capacity sibling, is being discontinued. You can have it for $299 while supplies last, however.

Bought an iPhone already and feel a little ticked off by the sudden and substantial price drop? Here’s what we know so far: Apple has a policy of refunding the difference if a price change occurs within 10 days of purchase or shipment of a product. Or, if you’re within 14 days of purchase, you should be able to return your iPhone and pick up a new one at the reduced price.

Otherwise, there doesn't appear to be much you can do right now. This may change. So we’ll keep you posted.

On the bright-side for current and future iPhone owners, Apple is launching a new ringtone service that will allow you to make custom ringtones from over a million tracks on iTunes. It'll cost you $2 though. That's 99 cents to create the ringtone on top of the purchase price of the song itself. You're supposed to be able to use the service for tracks you've already bought and downloaded as well.

Perhaps the most exciting introduction today was the expected announcement of the iPod Touch, which is essentially a slightly thinner iPhone without cellular capabilities, external speakers, or a built-in microphone.


The iPhone-Like iPod Touch

Due to ship later this month, the iPod Touch is built on the same version of Mac OS X as the iPhone. It also uses the same multi-touch user interface and, like the iPhone, offers Wi-Fi (a first for an iPod), Apple's Safari web browser and photo software, and Google's YouTube application. You can play video on it, of course.

Although Apple doesn't say anything about this, the lack of an association with AT&T for the iPod Touch, unlike with the iPhone, could encourage the development of a voice over IP application; if not by Apple, then perhaps a third party.

An 8GB version of the iPod Touch will go for $299 and a 16GB edition for $399.

For the iPod Touch, and eventually the iPhone (after a soon-to-come software update), Apple is launching the iTunes Wi-Fi Music Store. It'll be the first time Apple enables people to browse and download songs from iTunes directly to their device without being tethered to a computer.

All the songs in iTunes will be available for the same price as on the desktop. You'll be able to play a downloaded song straight away, and it'll sync back to iTunes on your desktop the next time you hook your iPod Touch or iPhone up to your computer.


iTunes on the iPhone Over Wi-Fi

Unfortunately for iPhone users, iTunes Wi-Fi Music Store does not support downloads over AT&T’s EDGE network. I wouldn't be surprised if the wishes of the carrier is responsible reason for that omission.

In related news, Apple is partnering with Starbucks to offer free access to the iTunes Wi-Fi Music Store from a Mac, PC, iPod Touch or iPhone over a T-Mobile hotspot while sipping a cappuccino. You'll also be able to see and download songs that are currently playing in the store.

This service is expected to launch at select Starbucks in New York and Seattle earlier next month, followed by San Francisco in November, with a country-wide rollout throughout next year and 2009.

Next up is a refreshed iPod Nano lineup, the third generation.

The iPod Nano is now shorter and squatter than it’s been in the past. It also sports a good size 2-inch display and is capable of playing video for the first time. Only want 4GB of storage, then you'll be limited to the color silver. Apple's asking price for this edition is $149.


The Shorter, Stouter iPod Nano

Require 8GB of storage in your flash-memory based iPod, then the price goes up $50 to $199, but the choice of hues greatly expands from just silver to black, blue, green and RED (with donations from Apple going to The Global Fund to fight HIV/AIDS in Africa for each one sold.) as well.

Apple has renamed the traditional hard disk-based iPod the iPod classic. It now comes in a case that is all metal and thinner. There's an 80GB version for $249 and an edition with a whopping 160GB of storage for $349. Available colors include silver and black.


The iPod Classic - Now in 80GB & 160GB Storage Capacities

Both the iPod Nano and the iPod Classic implement the same Cover Flow technology, first found in the iPhone and also available in the iPod Touch. Cover Flow allows you to flip through your music collection via album art.

Since the iPod Nano and iPod don't sport touch screens, I doubt it'll be as easy to use Cover Flow as with the iPhone and, no doubtm the iPod Touch. With those devices a simply flick your finger on the display allows you peruse your music collection.


The iPod Shuffle's New Colors

Last, but not least, is an update to the tiny iPod shuffle: It now comes in a new assortment of colors, costs $79, and offers 1GB of flash storage. As with the iPod Nano, Apple will donate some cash to The Global Fund for each one sold