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For those early adopters who bought the iPhone in the first couple of months of launch, Apple is now issuing the $100 credit as promised by Steve in his letter. You will need your iPhone telephone number and its the Serial Number. Apple will then send a confirmation code by SMS to the iPhone. You enter the confirmation code on the Apple website and it will display a store credit number and allow you to print it out as a coupon.

Here are the detailed instructions…

After personally reading hundreds of emails from disgruntled iPhone customers, Apple chief executive Steve Jobs appears to have had a change of heart and now plans to offer early iPhone adopters a $100 credit towards future Apple purchases.

In an open letter to customers published on Apple’s website, Jobs conceded that while the technology road is a bumpy one, Apple should have done a better job of taking care of early iPhone customers, many of which make up the company’s most faithful.

“Our early customers trusted us, and we must live up to that trust with our actions in moments like these,” he wrote, referring Wednesday’s unprecedented 33 percent price drop on the iPhone just 9 weeks after release. “Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store.”

Details on the $100 store credit are still being worked out, according to Jobs, but will be posted on Apple’s website sometime next week.

“We want to do the right thing for our valued iPhone customers,” Jobs added. “We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.”

iTunes Wi-Fi Music Store

Also launched alongside the iPod touch is Apple’s iTunes Wi-Fi Music Store, which lets you browse the iTunes Top Ten lists of songs and albums overall or by genre, check out new releases and “What’s Hot,” or search for your favorite songs, albums or artists.

You can preview any song for free, then purchase and download the ones you like directly onto your iPod touch over Wi-Fi. The music you download will be automatically uploaded into your iTunes library the next time you sync your iPod touch with your computer.

Starbucks partnership

Apple also announced an exclusive agreement with Starbucks that allows you to access the iTunes Wi-Fi Music Store for free in participating US Starbucks stores starting next month. When you enter a participating Starbucks location, your iPod touch, iPhone, or PC or Mac running iTunes will automatically recognize the iTunes Wi-Fi Music Store. You can see what song is currently playing or has recently played in the store, and immediately preview, buy and download it over Wi-Fi.

Apple on Wednesday catered to the demands of iPod users worldwide, unveiling a new “iPod touch” player featuring the company’s revolutionary multi-touch user interface that enables users to find and enjoy all of their music, videos and more on its widescreen display with just the touch of a finger.

iPod touch

First introduced on iPhone, the multi-touch interface uses pioneering new Mac OS X-based software to present the ideal user interface for each application. The iPod touch also includes Wi-Fi wireless networking, the first on any iPod, and three applications that use it — Safari, the most advanced browser on any mobile device, lets users wirelessly view web pages just as they look on their computer, and features Google Search or Yahoo! oneSearch; Apple’s YouTube application lets users wirelessly watch over 10 million free videos from the Internet’s most popular video website; and the new iTunes Wi-Fi Music Store lets users wirelessly browse, preview and buy songs and albums from the most popular online music store in the world. The iPod touch is an unbelievable 8 mm thin, and is priced starting at just $299.

“The iPod touch is a landmark iPod, ushering in a whole new generation of features based on its revolutionary multi-touch interface and built-in Wi-Fi wireless networking,” said Apple chief executive Steve Jobs. “People are going to be amazed at how thin it is and how much it does.”

With its 3.5-inch widescreen display, iPod touch is ideal for watching movies and TV shows, as well as viewing photos and album art. The player also features a built-in accelerometer that automatically senses when you rotate it into its landscape position, just like iPhone. When you’re in music, it automatically switches to Cover Flow so you can browse your music collection by album cover artwork with just a flick of a finger. When in Photos, it automatically displays the photo in its landscape aspect ratio; and when in Safari it displays the web page horizontally.

Pricing & Availability

The 8GB iPod touch model is $299 (US) and the 16GB iPod model is $399 (US). iPod touch requires a Mac with a USB 2.0 port, Mac OS X 10.4.10 or later and iTunes 7.4; or a Windows PC with a USB 2.0 port and Windows Vista or Windows XP Home or Professional (Service Pack 2) or later and iTunes 7.4. Internet access is required and a broadband connection is recommended, fees may apply. The iTunes Store is not available in all countries.