Five years ago, Apple had just released the 5th generation iPod, the first capable of playing full motion video. It was offered in 30 and 60GB versions, costing $299 and $399.

The 30GB model boasted 14 hours of audio playback or 2 hours of video. Apple had just lined up the ability to buy TV shows in iTunes, starting with one broadcast partner: Disney. Episodes cost $2 and delivered half-VGA resolution of 320x240, which filled the iPod's 2.5"" screen. Apple had also recently added support for Podcasts within iTunes.
Fast forward to today, and Apple's latest media player offering is the iPod touch. It similarly comes in 32 and 64GB versions at the same $299 and $399 prices. The difference is that these devices aren't slow hard drives; they're full screen computers with fast flash memory. There's also an 8GB version for $229.
The 32GB model delivers 40 hours of audio playback, or 7 hours of video. Apple's iTunes now offers full movies and rentals at VGA resolution of 640x480.
The iPod touch screen is not only larger, at 3.5 inches, but now delivers a Retina Display resolution of 960x640. It's also a capacitance touch screen that can be used to navigate the interface directly, rather than using a touch-wheel controller.
Originally conceived as a pod that could take music to go, Apple's iPod is now a full featured computer itself. It runs a scaled down version of Mac OS X named iOS, offering not just media playback but also email, web browsing, and the ability to run custom apps.
iTunes has transformed from a music store with some videos for sale into being the world's most popular way to buy music and movies, as well as the world's largest and most popular mobile apps market. There are over 300,000 apps available for the iPod touch, ranging from games to art tools to GPS to productivity apps.
(Source: AppleInsider)