Apple's iPod Refresh Rejuvenates Shares

SAN FRANCISCO -- Apple (AAPL) has all but confirmed the widespread speculation that it will unveil a new iPod design -- or new line of iPods -- next week.

Late Tuesday, the company sent out invitations to an event on Sept 5. The invitations, which included the text "The beat goes on," resembled Apple's iPod advertisements. The move comes just days after tech bloggers and Apple-watchers first spread word that the company would have an iPod-related announcement next week.

Shares of Apple, which had approached $150 before the subprime-induced broad market selloff this summer, were recently up 4.5% to $132.53.

A new iPod would arrive as Apple faces increasing competition in the digital music business. Wal-Mart (WMT) and Amazon.com (AMZN) are offering their own music download service.

Earlier in the month, Viacom's (VIA) MTV unit said it will merge its online music program with RealNetworks' (RNWK) Rhapsody subscription service.

Apple also has, in theory, competition from rival device makers Microsoft (MSFT) and memory device maker SanDisk (SNDK).

But Apple has won over users and maintained its solid market share with sleek designs, easy-to-use features and a wide selection of songs on its iTunes music service. It's also the only company that offers both the music downloading service and the device, making it easy for users to manage their music selections.