Apple unveils new EarPods

With the launch of iPhone 5, Apple on Wednesday also unveiled headphones with a 'breakthrough design'. The white earbuds that ship with all of Apple's portable devices are getting an update. Now called "EarPods," they're tube-shaped, which Apple said will help fit the shape of the ear.

They'll go on sale Wednesday as a stand-alone accessory but will be included free with new devices out in October.

The Apple EarPods will be included with the new 5th generation iPod, 7th generation Nano and the iPhone 5. It can also be bought standalone.

Apple said the company has spent three years in designing new headphones. Apple CEO Tim Cook said, "Apple is one of the biggest providers of speakers in the world. We put them in just about everything we sell."

Apple's announcements were largely in line with investor expectations, and their response was tepid.

Apple is also updating its iTunes software for the Mac and PC, with what is says is a "dramatically simpler and cleaner interface." It will be available as a free download in October.