Apple used Macworld Expo Tokyo to announce a second model of its iPod digital music player that features a 10GB hard drive, allowing users to pack 2,000 CD-quality songs into the 6.5-ounce FireWire-based portable player. iPod owners can now download free software that adds the ability to download and store contact lists with up to 1,000 names and addresses right alongside their music (see picture).

The new 10GB iPod is available immediately for a suggested retail price of £429, and the 5GB model remains priced at £349, through the online Apple Store and Apple Authorized Resellers.

In an echo of last year’s Tokyo patterned iMacs (Flower Power and Blue Dalmatian), customers in North America can now order iPods with a custom laser engraving etched into iPod’s stainless-steel back. This service is not yet available in the UK. Laser engraving is available in North America for US$49, including two lines of text with up to 27 characters per line.

“iPod lets you easily put your entire music collection in your pocket and listen to it anywhere. With the new 10GB iPod, you can listen to your music continuously on six round-trip flights between San Francisco and Tokyo and never hear the same song twice,” said Steve Jobs, Apple’s CEO, during his Expo keynote.

“Plus, now you can store your contact lists inside your iPod, too,” he added.

Apple has also added 20 EQ presets, ranging from R&B to Classical, allowing customers to adjust the iPod’s dynamic range to better match the music they are listening to. Customers can apply EQ settings to songs while they listen to them with the iPod’s Settings menu, or utilize the EQ settings that they assigned to individual songs in their iTunes library.

iPod now allows users to carry all their contact information for 1,000 colleagues, family and friends, next to their music collection. Customers can transfer contact lists from Microsoft Entourage, Palm Desktop or Mac OS X’s Address Book into the iPod Contacts folder.

iPod owners can now add a special touch to their new iPod by personalizing the stainless steel back with a custom laser engraving. The iPod can be engraved with a name and/or personal message to commemorate special events – Apple suggests graduation, birthday, or a winning team’s season - as well as for identification in case of loss.