2:05 pm ET Schultz:"Starbucks really has become this "third place" between home and work. We are in a unique position to leverage the innovation and global footprint...to literally transform the marketplace." "Free access to iTunes through free network at Starbucks."
2:00 pm ET: Teasing the audience again, now previewing a new Paul McCartney song through Starbucks. Introducing Howard Schultz, joining Jobs on stage. "I'm thrilled to be here today and honored to be invited. A snapshot of Starbucks' global reach: over 14,000 stores serving 50 million customers per week. Average customer visits 18 times a month. Opening 7 new stores EVERY day.
1:57 pm ET: Bringing the Wi-Fi music store to the iPhone. Oh wait, one more, one more thing. A new partnership with Starbucks. "What we want to be able to do is combine our great iPods and our great love of music, with their great coffee and their great love of music." Get near a Starbucks and a new button will actually appear on your iPod that will let you know what song was playing when you walked in, and then you just tap the device and you can buy it.
1:55 pm ET: He's now demo'ing how to use the new wireless feature. Teasing the audience again, he's wirelessly previewing Lennon's "Imagine." "Isn't this incredible?" Jobs asks.
He's previewing categories: Top Ten, etc. Showing the search function. "It's really nice and fast."
1:52 pm ET: Finally. Wireless music downloads. Free previews over Wi-fi, and if you like it, you tap on it, and the buy now feature. When you dock the device, the new material is synched with desktop iTunes.Same prices. Same selection.
1:49 pm ET: Jim is back from doing TV: First touch device that Apple will ship globally. 22 hours of audio playback and 5 hours of video playback. Multi-touch user interface. 3.5 inch display; Cover Flow: Wi-Fi, Safari. There's something cool to do with WI-fi now, so let's build it in.
8 gigs: $299
16 gigs: $399
Shipping this month. Now showing the first Touch TV ad, which Jobs says they were working on as late as last night. Very cool. Web, music, video all in one device.
One more thing! Empty spot on the iPod Touch. A new application called the iTunes Wi-Fi Music Store! Finally, some of you are saying.
1:40 pm ET: Has Safari web browser. Gets Google and YouTube. Safari built into Touch so you can use the browser on a music player. Also making YouTube available, wirelessly downloaded, streamed over WI-Fi right to the Touch!
1:37 pm ET: CNBC Producer Annie Pong writes for Jim now: iPod touch video is 3 and a half inch screen. 8 mm thick.. Like iPhone, You scroll to get song. Scroll to get different parts of song. Video can go to landsape format. Also with photos. Have wi fi capability.
1:32 pm ET: Jobs is about to show the brand new iPod touch screen.
1:31: pm ET: The new 160 gig iPod will hold a staggering 40,000 songs. 80 gig model used to sell for $349. Now it'll sell for $249. The bigger model: $349. Both available today. Heading down to our broadcast position so I can give you a first look at the new Nano. So stay tuned.
1:30 pm ET: Now the iPod. And a new name is coming: We're calling the iPod, the iPod Classic, what we all know as the iPod. 30 gigs and 80 gigs historically. The new iPod Classic will START with 80 gigs. We're gonna offer a slightly thicker one: 160 gigs!!
1:25 pm ET: Two versions: 4 gigs and only Silver at $149. 8 gigs and all the colors for $199. They ship today, they're on planes and they should be stores, many stores, by this weekend. "A little video for everyone" is Apple's line for the new device. Now he's showing the first TV commercial featuring the new Nano. Very fun.
1:23 pm ET: Just showed a clip from a downloaded episode of Jon Stewart, featuring PC Guy. Now he's showing a photo slideshow on the device. When we went about replacing the most popular music device in the world, we took it seriously. And we think we nailed it.
Oh, battery life: 24 hours of music playback.