The incident happened around 3:30 p.m. on East Pacific Avenue near Santa Fe Street, police said.
One of the two suspects demanded the iPod but the boy refused to surrender it, police said.
The second suspect told the boy "I got somethin' for you" as he reached toward his waistband as if he has a weapon, police said.
The boy turned over the iPod and the suspects walked west on East Pacific Avenue toward the McDonalds restaurant, police said.
The boy went to a nearby school and reported the incident. School staff then called police who searched the area but did not find the suspects.
The student was not injured.
One of the black male suspects is 5 feet 8 inches. He was wearing a red and white colored baseball cap, white polo shirt with horizontal red stripes on the chest and dark colored jeans.
The other black male suspect was wearing a red shirt and baggy pants.