Apple may be about to launch a video playing version of its iPod next week, according to industry sources.
Speculation that the company would unveil a video iPod, less than a month after unveiling its iPod nano music player, has circulated for months.
It intensified this week when the company e-mailed an invitation to journalists that said "One more thing" - the favourite catchphrase of Apple's founder Steve Jobs.
The iPod music player has been a blockbuster success, but cracking the video market may prove to be a greater challenge.
Key to the success of any player would be Apple's ability to secure material that people want to watch and to safeguard it against widespread copying. In addition to running Apple, Mr Jobs is chief executive of Pixar Animation Studios and has strong ties in Hollywood.
Many of the portable video players already on the market use technology from Microsoft. Apple, on the other hand, has no built-in way for its Macintosh computers to capture television the way many PCs running Microsoft Windows do.
However, Apple has built its success on providing a tightly integrated hardware, software and services offering.