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Apple Slashes iPod Prices Prior to Media Event [Updated: Apple Store Down]

Ahead of today's "It's Only Rock and Roll" media event, Apple has reduced prices across the board on its iPod touch, iPod nano, and iPod classic lines.

iPod touch:
- 8 GB now $189, down $40
- 16 GB now $249, down $50
- 32 GB now $279, down $120

iPod nano:
- 8 GB now $129, down $20
- 16 GB now $149, down $50

iPod classic:
- 120 GB now $229, down $20

As noted in our rumor roundup yesterday, Apple is expected to introduce new iPods at today's event, with the iPod touch, iPod nano, and possibly the iPod classic, gaining digital cameras. Last-minute production problems with the cameras, however, have been rumored to be delaying the launch of the new models.

It remains to be seen whether today's price reductions are an interim measure to offer the existing models at competitive pricing until the new models are ready for launch or if Apple will continue to offer these previous-generation iPods alongside the new models as a strategy to lower prices and boost demand. Microsoft's Zune HD launches next week at price points of $219.99 for 16 GB and $289.99 for 32 GB, exerting pressure on Apple to either reduce prices or add features to its iPod touch line.

Update: The online Apple Store is now down.