Apple watchers are speculating that Apple is preparing to unveil a 60-gigabyte iPod that would become its top-of-the-line offering. The news gain momentum after Hitachi's announcement of making a larger one-inch hard drive.

But if true, analysts said the move by Apple would be among the most significant yet to transform the popular iPod music player into a broader entertainment platform that would raise the stakes in Apple's competition with Microsoft Corp.

Some industry watchers believe the new upcoming iPod would cost about $500. This development could keep Apple ahead of an increasingly competitive sector, with Sony and HP among the handful of companies offering MP3 players.

By: DocMemory
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