Apple unveils major overhaul for iPod line

Apple has updated the iPod Touch, Classic, Nano and Shuffle lines

Apple has posted major updates for its entire iPod music player line at a special event in San Francisco.

Apple chief executive Steve Jobs and senior vice president of marketing Phil Schiller unveiled updates for the iPod Touch, Classic, Nano and iPod Shuffle models.

For the iPod Touch and Classic, the update will include capacity upgrades and price drops. The hard drive-based classic model will cost $249 (£150) and hold 160GB worth of media. The iPod Touch will feature a maximum capacity of 64GB, while the low-end 8GB model has been dropped to a price of $199 (£120).

Schiller said that the price cuts reflect a lesson Apple learned several years ago when sales of the iPod Mini soared at the introduction of a $199 model.

"We learned something that day - $199 is a magic price point in the iPod market," said Schiller. "With that price point we can reach more customers, so that is just what we're going to do with the iPod Touch."

The Touch and the iPhone will also receive the new 3.1 software as a free update. The firmware will fix a number of bugs as well as offer new Genius and Ring Tone features for the App Store service.

Not to be outdone was the iPod Nano, which received a significant hardware update in the addition of a built-in video camera, an FM tuner and new voice features. The new Nano will be offered in a $149 (£90) 8GB model and a $179 (£108) 16GB model.

For the iPod Shuffle, the update will include support for third-party handsets, along with new colour options and the addition of a special $99 (£60) model that features a stainless steel casing.