The iPod name was offered up by Vinnie Chieco, a freelance copywriter who lives in San Francisco. Chieco was recruited by Apple to be part of a small team tasked with helping figure out how to introduce the new player to the general public, not just computer geeks.
During the process, Jobs had settled on the player's descriptive tag line -- "1,000 songs in your pocket" -- so the name was freed up from having to be descriptive. It didn't have to reference music or songs.
While describing the player, Jobs constantly referred to Apple's digital hub strategy: The Mac is a hub, or central connection point, for a host of gadgets. This prompted Chieco to start thinking about hubs: objects that other things connect to.
The ultimate hub, Chieco figured, would be a spaceship. You could leave the spaceship in a smaller vessel, a pod, but you'd have to return to the mother ship to refuel and get food. Then Chieco was shown a prototype iPod, with its stark white plastic front.
"As soon as I saw the white iPod, I thought 2001," said Chieco. "Open the pod bay door, Hal!"
Then it was just a matter of adding the "i" prefix, as in "iMac."
Chieco declined to mention any of the alternative names that were considered. A source at Apple confirmed Chieco's story.