Apple has revealed that it is ditching the iPod mini range - its best selling iPod, and therefore the world's favourite iPod - and replacing it with the tiny, flash-based iPod nano.

The fruit iMac-style colour theme is gone too, to be replaced with white and black versions - much more in keeping with Apple's current image, hinted Apple CEO Steve Jobs and other Apple personnel.

Available in 2GB and 4GB capacity the new iPod nano sports a colour screen and will display photos like its big brother the iPod. It also boasts additional functionality including a stopwatch and other new features. And of course the click wheel, which is absent from the iPod shuffle - of which Jobs said, during the presentation to journalists from around the world: "With just 100 songs, you get by with that."

The 2GB nano holds 500 songs and the 4GB nano holds 1,000 songs - as many as the original iPod held and in a fraction of the size. In fact Jobs took much pride in showing attendees that the iPod nano is more than 50 per cent smaller than similar devices on the market.

The 2GB iPod nano will cost £139 and the 4GB iPod nano will cost £179. They should be in store by the end of the week, said Jobs and other Apple personnel.

A selection of accessories are also available, including a set of five plastic, coloured cases, called Tubes, for £19.

Apple also revealed details of the mobile phone developed with Motorola, which should be available through selected UK networks later this month, with other networks following suit.