Setting the scene
The iPod was released October 23, 2001, by Apple, revolutionizing portable music. The first iPod held 1,000 songs, had a 5GB hard drive, and featured a mechanical scroll wheel. Steve Jobs introduced it with the tagline '1,000 songs in your pocket.' It cost $399 and initially worked only with Macs.
What happened
The iPod succeeded where previous MP3 players failed due to its integration with iTunes software and later the iTunes Store (2003), which sold songs for 99 cents. The iPod became a cultural icon, with white earbuds signaling cool. By 2007, over 100 million iPods had sold.
Why it still matters
The iPod saved Apple from near-bankruptcy and established its model of hardware-software-services integration that later drove the iPhone. October 23, 2001, marked the beginning of Apple's transformation into the world's most valuable company and the shift to digital media consumption.
Background
Digital music went mainstream.