Geekwhat.com

Oct. 12 (Bloomberg) — Apple Computer Inc. Chief Executive Steve Jobs unveiled a version of the best-selling iPod digital music player that also shows videos and an iMac computer with a remote control and built-in video camera.

The video iPod, available in black or white starting next week, has a 2 1/2-inch color display and holds as many as 150 hours of video, along with music and photos, Jobs said today in a “three act” event at the California Theater in San Jose. The devices, slimmer than the classic white iPods, sell for as much as $399.

“It is becoming an entertainment company, not a computer company,” said Matt Kelmon, who helps manages $750 million at Palo Alto, California-based Kelmoore Investment Co. “People don’t say ‘Apple Computer’ anymore; they say ‘Apple.’ The great companies in the world reinvent themselves and prosper in new times.”

Apple’s iTunes store will sell music videos for $1.99 and has a library of 2,000 offerings available today. The company also will sell $1.99 animated short films from Jobs’s other company, Pixar.