As expected, Apple has added a slew of new features to its ever-popular iPod nano, which now offers video playback, an enhanced user interface featuring Cover Flow, and a new design.

The new iPod nano features a larger two-inch display with 204 pixels per inch, sufficient for casually watching films, TV shows and music videos at the same resolution as the currently available video iPod. The screen is 65 per cent brighter than the previous generation.

The body of the device features a new all-metal design made with anodized aluminum and polished stainless steel. The iPod nano is available in silver, black, blue, green and a (PRODUCT) RED special edition.

Battery life has been improved. The device delivers up to 24 hours of audio playback or five hours of video playback on a single charge. Like the iPod classic, iPod nano ships with three free games: Klondike, iQuiz, and Vortex.

"We've taken the most popular music player in the world and added stunning video playback just in time for the holiday season," said Apple CEO Steve Jobs. "The iPod nano just keeps getting better and better with each new generation."

The new generation of the popular player also delivers support for Cover Flow, so users can scroll through their music collection using album cover artwork.

iPod nano offers 24 hours of audio playback or five hours of video playback on a single charge.

The 4GB iPod nano is available in silver and costs £99, while the 8GB model is available in silver, black, blue, green and a (PRODUCT) RED special edition for £129.

Both the 4GB and 8GB iPod nano for Windows or Mac are available worldwide immediately.