Apple has announced that the iPod and iPod photo lines are merging, creating a single line of white iPods that all feature color displays with the ability to view album artwork, photos and play slideshows in stunning color.

The simplified iPod lineup features a 20GB model, holding up to 5,000 songs priced at just $299 and a 60GB model, holding up to 15,000 songs priced at $399. Also starting today, iPods will offer an easy to use Podcast menu, including bookmarking within a Podcast and the ability to display Podcast artwork in color.

“iPod customers love to enhance their listening experience with color,” said Greg Joswiak, Apple’s vice president of iPod Product Marketing. “By simplifying our iPod lineup to include 20GB and 60GB models with color screens and the new Podcast menu, iPod and iTunes provide the world’s easiest and appealing way to discover, subscribe, manage and listen to Podcasts.”

iPod’s color display provides a full color experience for users to take their entire photo library with them or for viewing album artwork, calendars, contacts and games. The 60GB iPod holds up to 25,000 digital photos, and the 20GB iPod holds up to 20,000 digital photos. Both models feature the ability to import photos from a digital camera with the optional iPod Camera Connector and let users combine their favorite music and photos to create slideshows for viewing right on their iPod or for sharing with family and friends on a big screen TV.

The new version of iTunes enables anyone to quickly and easily find and subscribe to their favorite Podcasts so that every time there’s a new episode, it’s automatically downloaded to their Mac or PC and Auto-Synced to their iPod. iTunes also makes it easy to manage multiple Podcast subscriptions with simple organization and display by episode and date.