APPLE today unveiled a smaller iPod nano which will cost é30 less than the larger model.

The 1GB music player is thinner than a pencil and holds up to 240 songs or 15,000 photos.

Described as an "ultra-portable" model, it has the same click wheel and colour screen as the 2GB and 4GB iPod nanos.

It will retail for é109 in the UK, compared to é139 and é179 for the next sizes up.

Version

Apple also announced it was cutting é20 off the price of its iPod shuffles, bring the cost down to é49 for the 512MB model and é69 for the 1GB version.

Marketing chief Greg Joswiak said the move would make iPods affordable for more people.

He said: "The iPod is the world's most popular digital music player with over 40 million sold, and now even more music lovers can experience the unrivalled combination of iPod and iTunes."

The number of songs downloaded worldwide from Apple's iTunes music service stands at more than 951,000,000 tracks.