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Apple Gets iTouchy Feely

San Francisco — Apple today revamped its iPod lineup with the introduction of the iPod Touch, and it reduced the price of its 8GB iPhone to $399.

Like the iPhone, the iPod Touch uses a widescreen touchscreen as the primary interface between users and their music and video libraries.

The iPod Touch is available today with a $299 suggested retail price. Apple CEO Steve Jobs said the company has sold 110 million iPods to date, and it expected to sell its 1 millionth iPhone by late September.

The new device is Wi-Fi enabled, allowing consumers to cruise the Web though its Safari browser or to visit Apple’s new Wi-Fi Music Store where they can buy music and ringtones. The company also made available the latest version of iTunes, 7.4, for download. Version 7.4 has a larger viewing area for watching video.

The iPod Touch is 8 millimeters thick and is centered on a 3.5-inch display that adjusts itself between widescreen and the more conventional mode for viewing music info. Apple also announced a deal with Starbucks that will allow free wireless access to the Wi-Fi store in participating coffee houses starting month. The service will automatically be detected on any iPod Touch, iPhone or computer running iTunes.