Apple introduced a 16 GB iPhone for $499 and a 32 GB iPod touch for $499, which go on sale today. They will come with the new software Apple CEO Steve Jobs unveiled at Macworld last month, including the capability to identify the geographic location

of the iPhone and being able to customize the start menu on the iPhone and iPod touch.

Only the latest generation of iPods can play movie rentals.. The earliest iPod videos, the 5 and 5.5, are not capable of playing movie rentals, though they do play purchased movies from iTunes.