Apple Computer announced Tuesday it is merging its iPod and iPod photo lines to create a single line of white iPods, all with color displays.

"The simplified iPod lineup -- under the slogan "your music in color" -- features a 20 gigabyte (GB) model, holding up to 5,000 songs priced at just US$299 and a 60GB model, holding up to 15,000 songs priced at $399," the company said in a prepared statement.

The new iPod U2 Special Edition also includes a color screen and now retails for $329, $20 cheaper than the previous model. The 1GB iPod shuffle is now $129, down from $149. The drop in price of the shuffle is thought by many retail experts to be a reflection of continually falling flash memory prices from manufacturers like Samsung, as well as further evidence that the $50 difference between the 1GB iPod shuffle and the 4GB iPod mini was to close and was hurting shuffle sales.

With Tuesday's announcements, Apple has discontinued its 30GB version, which retailed for $349. In addition, Apple is no longer including a Firewire cable with its new 20GB iPod. The decision, wipes Apple's entire iPod line of a Firewire cable as standard equipment. Mac users who prefer Firewire must now shell out $19 for the cable.

The iPod mini line of digital media devices has not been changed. It's 4GB model with an internal hard drive storing 1,000 songs, retails for $199.

The re-vamped iPod line now includes two models -- 20GB & 60GB -- both with color displays starting at $299.

Apple also said it will offer a Podcast menu for all iPods, including bookmarking within a Podcast, and the ability to display Podcast artwork in color. The new Podcast menu is available via a free iPod software update for all Click Wheel iPods and iPod minis from www.apple.com/ipod.