Out of the blue, just like that, Apple has launched a 1GB iPod nano.

The new model will cost £109 in the UK and the company, rather than discontinue the iPod shuffle, has reduced the price to £49.

The new 1GB version comes in the same design as the 2GB and 4Gb versions and overs users the chance to store 240 songs or 15,000 photos on the slimline player.

The iPod shuffle will now be priced at £49 of the 512MB version and £69 for the 1GB version.

“Now everyone can afford an iPod nano, with our new 1GB model starting at just £109”, said Greg Joswiak, Apple's vice president of Worldwide iPod Product Marketing.

“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.”