Apple distributors are also trying to clear stock.  The new model iPod is expected to be rolled out at the Apple Expo in Paris which also co-incides with a major Apple announcement in San Francisco on the same date.

Major computer retailers as well as www.digitalhome.com.a u are heavily discounting current-model iPods so that they are not left with old stock.

According to APC, some retailers took its discounting to TV audiences last night, with ad spots spruiking the iPod Shuffle 512MB for $67 rather than the regular price of $99 — a full 30 per cent reduction in price. One Apple retailer sent out a newsletter to customers, offering up to 80% off its entire range of iPods, this Saturday only.

APC also report that heavy discounting is very unusual between iPod retailers: they have been able to sell iPod stock so easily that the point of competition between them has largely centred around whether they have iPods in stock or not. The current fifth-generation iPod was launched in October last year, making it one of the longest-standing iPod versions and long overdue for a refresh.

At the time it was released, Apple's publicity department was at pains to point out that it was a music player with some video playback capabilities, but was certainly not to be referred to as "iPod Video".

It is inevitable that the next iteration of the iPod will bring a much larger screen for video playback, possibly coupled with the release of TV and movie downloads via Apple's iTunes Music Store outside the United States.

Apple Australia spokesperson Fiona Martin said she was not aware of an upcoming new version of the iPod. "I didn't even know they [Harvey Norman and NextByte] were discounting the current models," she told APC.

APC is Australia's largest PC Magazine it can be found at http://www.apcstart.com/