Apple seen revamping iPod line

By Franklin Paul

NEW YORK (Reuters) - Apple Inc shares rose more than 5 percent on Wednesday on growing expectations that the company will announce a revamped line of iPods next week.

Technology news Web sites have speculated that Apple could launch a new video iPod with a large touch screen similar to the iPhone, and a redesigned iPod nano in time for the end-of-year holiday shopping season.

Others also suggested that Apple may announce a deal for its iTunes online music store to sell albums from the Beatles, the last and biggest digital music hold-out.

Apple has distributed invitations to a September 5 event in San Francisco, but did not say what it would be about.

"The product announcement is likely to include a full line-up of revamped iPods with significantly greater functionality at current price points, including the much-anticipated full-screen video iPod," Goldman Sachs said in a note, urging investors to buy Apple shares.

Goldman said September 5 would bring "the almost certain launch of a new family of iPods" ahead of the holiday season, which accounts for the biggest chunk of sales for that part of Apple's business.

Piper Jaffray analyst Gene Munster Munster said he saw a 70 percent chance that Apple would launch wide screen, multi-touch iPods. His note also speculated on a Beatles deal next week.

"In light of the fact that the tag line of Apple's special event invitation was "The beat goes on," the final words of the Beatles last press release, we expect Apple to announce the availability of the Beatles music library on iTunes," Munster wrote.