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Just for people who only read the click bait title and not the actual google search, this is saying that this month, there have been more google news headlines that mention "ipod" than that mention "apple watch". So the level of interest they are referring to are about select news outlets and not consumer interest, and only ones featured by google news. For instance today there was 39 google news articles that mention iPod and only 30 that mention "apple watch". Ironically the iPod has seen greater interest by news outlets because apple has removed it from their main navigation with Apple Music. With the massive news of Apple Music service, iPod will certainly be referenced for historical purposes in many of those articles.
Actually, this link is reporting how frequently people are searching the phrases "iPod" vs. "apple watch."

The 'News Headlines' you're referring to is just a checkbox that pinpoints news stories that mention the search terms of interest along the broader trendline for people's google searches..

I find it interesting that there's a spike for the search term "iPod" every Sunday. Why on earth would that be?
Perhaps religious service attendance via podcast, and a long memorized search string that finds the latest download?