He said Music lovers can now shoot video wherever they are, view it on their iPod nano and use their computers to easily transfer their videos to YouTube"

We are in the camera business he quipped after several media organisations had speculated that Apple would launch a full blown digital camera.

The new iPod nano features an ultra-thin and sleek design with a larger 2.2-inch colour display and a polished aluminum and glass enclosure.

The new devices also have a built-in FM radio with live pause and iTunes tagging, as well as a built-in pedometer. Available today from Apple stores th3e new models come with 8GB and a 16GB storage and nine colors including silver, black, purple, blue, green, orange, yellow, red and pink.

"iPod nano is the world's most popular music player with over 100 million sold," said Steve Jobs, Apple's CEO. "And now we've added a video camera to its incredibly thin design, without any additional cost to the user."

The new iPod nano is available today in an 8GB model for A$199 RRP inc GST and a 16GB model for A$249 RRP inc GST, and comes in nine brilliant colours including silver, black, purple, blue, green, orange, yellow, (PRODUCT) RED and pink.