Is Apple working with USI, Foxconn on Wi-Fi iPods?

Apple Inc. will launch in the second half new iPods that come with Wi-Fi support. This is according to a Digitimes report that cited Taiwan portable music player component makers as its sources.

The makers claim that Universal Scientific Industrial (USI) will produce the Wi-Fi modules, while Foxconn will be the OEM system assembler for the Wi-Fi iPods. USI is expected to begin shipments later this month, while Foxconn will do so in the third quarter.

Wi-Fi-equipped players have the potential to become the mainstream device for all portable music models, according to industry observers. And manufacturers are stepping efforts to take part of this segment. Last year, Microsoft launched Zune, its Wi-Fi-enabled portable player. The Zune was reportedly manufactured by Toshiba.

Earlier this month, SanDisk released the $250 Sansa Connect, a Wi-Fi-capable portable MP3 player that supports both free and subscription music service from Yahoo Music.

At this year's Consumer Electronics Show, Creative showcased a Wi-Fi portable player. Other manufacturers like Samsung and Sony reportedly expressed plans to offer similar products.