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Although digital audio players (usually called MP3 players) had existed before the iPod, they generally had little memory, confusing controls, limited features, and a clunky appearance. MP3 players were not regarded as a serious substitute for a portable cassette or CD player. When Steve Jobs introduced the iPod in 2001, he gave the world an MP3 player that was both elegant and functional. The smooth white plastic surface of its case had a sensuous quality that fairly begged to be handled, and it looked handsome enough that a user would want to wear it on a sleeve or a belt rather than hide the device. (However, as the iPod craze took off, many people found it prudent to keep their iPods out of sight when on the street, lest they have the much-sought-after devices stolen right off their bodies.) In 2007, the iPod became the best-selling digital audio player in history, having sold more than 110 million units worldwide.

In addition, the iPod used a laptop hard drive rather than flash memory as most early MP3 players used. This feature enabled the iPod to provide much more capacity, although at the cost of some battery life and ruggedness. However, carefully designed software allowed songs to be loaded from the hard drive into a buffer. This feature simultaneously reduced battery drain and decreased the chance that a sudden shock could crash the hard drive.

The interface by which the user controlled the iPod was also given careful thought. The menu system was based to some degree on that of the Apple Macintosh operating system. The touch wheel and its successor, the click wheel, enabled the user to move smoothly from one menu to the other, controlling multiple playlists with ease. However, after several versions of the iPod had come out, Apple discovered that many users seldom used the playlist system. Instead they preferred to use the shuffle function to have their iPod play songs at random from their entire music library. As a result, Apple introduced the iPod Shuffle, a thumb-sized device with no screen and with a simplified click-wheel control that was always on shuffle play.

Although many iPod owners stocked their iPods with songs from their existing CD collections, Apple also provided users the option of buying single songs and entire albums in the form of digital downloads from the Apple iTunes online music store.

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