Oops, Apple Does It Again

OK, so I'll admit it: I got one wrong.

Late last week, I opined that Apple Computer (Nasdaq: AAPL  ) was unlikely to unveil a video iPod at yesterday's big media event in San Jose, Calif. Turns out, however, that Jobs & Co. pulled a fast one on me -- not to mention certain other members of the Apple rumor-junkies club. What's more, judging from the photos currently fanning out across the Internet, the device is, as you'd expect, a thing of beauty -- if not exactly a joy.

To wit: I've yet to lay my covetous little paws on one, but according to the features list on Apple's website, the video-enabled iPod -- which comes in black or white and in capacities of 30 and 60 gigabytes -- sports a rather measly 2.5 inches of screen real estate. True, that's an increase in display space over that of the current iPod, but it's still not that much bigger than a matchbook. Indeed, it's roughly the same size as those Mattel (NYSE: MAT  ) handheld sports games that got taken away from you regularly during homeroom in high school.

At any rate, sometimes size really does matter, and I'd argue -- as I did earlier -- that this is one of those times.

That said, I'm a reasonable iPod fiend and certainly open to persuasion. And, yep, you'd better believe that I've already added the 60-gigabyte version of the sucker to my Amazon.com (Nasdaq: AMZN  ) wish list.

Beyond that, it's worth noting -- as my Fool compatriot Rick Munarriz does here -- that on the same day Apple rolled out its latest toy, the company started playing nice again with Disney (NYSE: DIS  ) , announcing an intriguing deal that will see choice content for sale on Apple's iTunes music -- and now video -- store.

Still, my current hunch is that watching that content will involve lots of squinting. I could be wrong about that, though. Every great once in a while, it's been known to happen.

More Apple views:

• Apple's Shares Get Pared
• Yahoo! Joins the Pod People
• iWouldn't Bet on It

Mattel is a Motley Fool Inside Value recommendation. Amazon.com is a Motley Fool Stock Advisor selection.

Shannon Zimmerman heads up the Fool's Champion Funds newsletter service and owns a third-generation iPod and first-generation versions of Mattel's basketball and soccer games. He owns shares of Disney, too. The Fool has a strict disclosure policy.