The iPod touch was introduced on this date way back in 2007 at an Apple music event. Steve Jobs gave the keynote address at that event (video below), but it's hard to imagine that the first generation (pictured above) didn't even have a proper speaker. While I wonder if anyone at Apple worried that the iTouch, as some call it, would scuttle iPhone sales, I'd say that hasn't proven to be the case at all.
As of May 2013, Apple has sold about 100 million of these things. iPhones, meanwhile, have sold hundreds of millions, although Apple likes to lump iOS devices together to say that over 500 million iOS devices have been sold. Traditionally the company is loathe to