Apple Computer, Inc. announced its decision to merge two iPod product lines into a single one. The new product lineup would include Photo viewing capabilities on all iPods.

The new product line features a 20GB model with capacity to hold about 5,000 songs for $299, a 60GB model with enough storage to store approximately 15,000 songs for $399, and a special U2 20GB edition for $329.

The company has also cut the price of its 1GB iPod Shuffle to $129.

Additionally, Apple has updated its iTunes software to version 4.9 with integrated support for Podcasting.