Apple Computer Inc. (search) on Tuesday introduced a new larger-capacity iPod with a color display as well as a first-of-its-kind digital compendium of the rock band U2's (search) songs.

U2's lead singer Bono (search) and guitarist The Edge (search) joined Apple chief executive Steve Jobs (news - web sites) on stage in a newly renovated 1920s era theater in San Jose to unveil the new products.

Apple's latest effort to stay maintain supremacy in the portable audio player market and the online music business also includes a new special edition U2 iPod.

Analysts expect the Apple-U2 partnership to be the first of many to come between artists and music product providers.

The digital album set will be available for $149 at the iTunes online music store in late November.

The new iPod Photo has a color screen that can display photos and slide shows accompanied by music. The 60-gigabyte model can hold 25,000 photos, costs $599, and is available now. A 40-gigabyte model costs $499.

The special edition U2 iPod is a 20-gigabyte iPod that's encased in black with a red click wheel instead of being all white. It will cost $349 and will be available in November.

U2 was among the first artists to endorse Apple when it introduced the groundbreaking iTunes store that helped jumpstart the legal music download market.

"We see it as a next step for us and the music industry," The Edge said.