The fourth generation Nano was launched at a US press conference by Apple chief Steve Jobs, who announced new shuffle and library features.
He also listed the Nano's environmental credentials, including arsenic-free glass and a mercury and PVC-free body that is "highly recyclable".
The Nanos are expected to sell in the UK for £109 ($191) for the 8GB version.
The 16GB version will retail at £149.
Speaking live in San Francisco, Mr Jobs unveiled Apple's new Genius function which allows users to create automatic playlists from the iPod's library with the click of a button.
He said the function worked by taking one song and creating a playlist based on the user's song library and could also suggest other tracks the user might want to buy.
As predicted/expected today good ol' still kicking and breathing Steve Jobs took the state to announce the refresh of Apple's iPod line-up. The iPod classic family will from now on include just one model with 120GB worth of storage space and a price tag of $249. The 80 and 160GB 'classics' will be discontinued.
Moving to some move interesting updates, the 4th generation iPod Nano has also been announced and it includes 8 and 16GB players with curved aluminum casings. The 4G Nanos are the thinnest iPods ever and, have a refined user interface and a built-in accelerometer which automatically switches to Cover Flow when rotated and automatically goes into Shuffle mode when lightly shaken.
Coming in silver, purple, blue, green, orange, yellow, pink, (PRODUCT) RED and black, the 8 and 16GB iPod Nanos cost $149 and $199 respectively. According to their maker, the new Nanos offer up to 24 hours of music playback and four hours of video playback. Moreover, the penguins should be really be happy with the players as they are arsenic-free, BFR-free, mercury-free and PVC-free.
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