Apple is on the verge of unveiling updates to its tremendously popular iPod music player, according to rumours circulating widely on the internet.

Websites dedicated to Apple are claiming that the iPod revamp is likely to include a colour-screen version of the iPod Mini, and new higher-capacity iPods, and insist that an announcement may be made this week.

One in 10 US adults, about 22 million people, own an iPod or MP3 player, according to a recent survey by the Pew Internet and American Life Project.

However, Apple is likely to face increasing competition from mobile phone manufacturers keen to enter this market.

Last week Sony Ericsson announced its intention to use the Walkman brand for a forthcoming series of mobile phones featuring digital music players, and UK manufacturer Sendo is launching a phone which it claims can take on standalone music players.