However, while Apple’s new “iPhone” will free up cluttered pockets, and bring more people to the iPod family, it may not prove as damaging to the likes of HMV and Virgin Megastore as first hoped.

Details of the American company’s plans are supposed to be shrouded in secrecy before a press conference in San Francisco on Wednesday. But enough information has leaked out, and the expectation is that Apple will unveil its first iPhone. The gadget will be available before Christmas.

In Britain Apple has lined up the mobile phone company O2 to act as its exclusive supplier. According to some leaks, the iPhone will have the capacity for only 25 songs.

The iPhone is intended to take the iPod to a new level. Despite the success of the music player, only about 16 million iPods have been sold. The mobile phone is used by one billion people globally and by four out of five people in Britain.

Owners of iPods have, until now, been forced to carry both devices, making for a cumbersome load and providing an attractive target for criminals. Combining the technologies will, it is hoped, improve popularity. The new gadget casts a shadow over the announcement of two download services introduced by Virgin Megastores and HMV this week.

The retailers are beginning nearly identical services, and neither is compatible with an iPod, or works over the air.

Mark Bennett, head of digital at HMV: “I think the iPod is a brilliant device. It’s a shame that Apple’s strategy is not to let it be compatible with any other downloading service.”

The iPhone is expected to be priced at more than £200.

Mobile phone operators will be desperate for the iPhone to succeed. In Britain the five main mobile phone operators spent £22.5 billion buying up third generation mobile phone licences that allow music downloading and other high-speed internet applications.

So far consumers have made limited use of the new technology. The phone operators are hoping that music will prompt a take-off in demand.

www.timesonline.co.uk/tech
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