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Apple Plans Sept. 5 Event, Fueling IPod Speculation (Update1)

By Connie Guglielmo

Aug. 28 (Bloomberg) -- Apple Inc. sent out invitations to a Sept. 5 event called ``The Beat Goes On,'' fueling speculation that it will release new models of the best-selling iPod media player to spur holiday sales.

The invitation for an event in San Francisco, e-mailed today, shows a silhouetted dancer carrying an iPod, an image from Apple's advertisements. Album covers appear in the background.

Chief Executive Officer Steve Jobs usually unveils new iPods before the holiday season. While Apple hasn't released a new model in almost a year, the company in June introduced the iPhone, which combines the music player with a mobile phone. A new video iPod may incorporate the iPhone's 3.5-inch touch screen, analysts say.

``I would say 99 percent chance it's a new iPod,'' said Gene Munster, an analyst with Piper Jaffray & Co. in Minneapolis. He rates Apple's shares ``outperform'' and doesn't own them.

Sales of the iPod and music sold through Apple's iTunes store accounted for 40 percent of revenue last quarter. In addition to the video iPod, Apple sells the pencil-thin Nano and the clip-on Shuffle.

Apple's shares, up 49 percent this year, fell $5.43 to $126.82 at 4 p.m. in Nasdaq Stock Market trading. Apple, which also makes the Macintosh computer, is based in Cupertino, California.

To contact the reporter on this story: Connie Guglielmo in San Francisco at cguglielmo1@bloomberg.net

Last Updated: August 28, 2007 20:36 EDT

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