Apple unveiled a version of its market-leading iPod that also plays videos and increased the iMac computer's ability to act as a home entertainment hub by adding a remote control.

The video iPod - a long-rumoured product that could further spark sales of the popular brand - has a 2.5-inch screen and comes with 30 or 60 gigabytes of memory. It will sell for $299 (€246.63) and $399, respectively.

The company also plans to offer music videos for $1.99 each at its iTunes online music store, along with short films from Pixar Animation Studios. It also said some ABC television shows would be available on iTunes a day after broadcast for $1.99.

The company unveiled the new products at a news event in California's Silicon Valley.

Apple has already sold more than 28 million iPods since their introduction in October 2001 and now has about 75 per cent of the market for digital music players.

The new iMac computer, which the company said would stand as an entertainment hub for DVDs, music and photos, will also directly complete with Microsoft's media centre.

The new products come after Apple reported a fiscal fourth-quarter profit that quadrupled from a year ago as revenue rose 56 per cent and sales of iPods more than tripled.