The 4GB device will retail in the States for $199, with $10 of that going straight to the RED initiative, which aims to fight HIV and AIDS in Africa.
"Some people won't put on marching boots, so we've got to get to people where they are at, and they're in the shopping malls," Bono says. "Now you're buying jeans and T-shirts, and you're paying for 10 women in Africa to get medication for their children with HIV.
”We've moved from the philanthropy budgets to the marketing budgets,” he continues, “and guess what, there's no comparison in size. We now have some of the most creative people in commerce - Steve Jobs, the marketing people at Gap and Motorola - all working for the world's poor. That is so, so cool."
A substantial sum has already been raised through the sale of red Gap t-shirts, red Amex cards and red Converse trainers.
The day prior to the show, Bono and Winfrey visited the Chicago Apple store where they bought ten of the red iPods.
Joining them for the launch were actress Penelope Cruz and hip hop superstar Kanye West.