As predicted by Macworld, Apple has introduces a new multi-touch iPod nano with a small 3x3cm screen.

The new device features a complete multi-touch display, but has a unique interface completely different from the iPhone iOS (although it appears to be based upon iOS 4).

“This is the biggest reinvention of the iPod nano since its debut in 2005, and we think users are going to love it,” said Steve Jobs, Apple’s CEO. “Replacing the click wheel with our Multi-Touch interface has enabled us to shrink the iPod nano into an amazingly small design that is instantly wearable with its built-in clip.”

It features the funcitonality of the iPod nano, including Nike+, Voice Over, albums, photos and has a a built in FM Radio. The iPod nano also features Shake to Shuffle, giving music lovers the ability to shake their iPod nano to shuffle to a new song in their music library.

It also has a clip on the back and appears small enough to be turned into a watch. Steve Jobs joked that one of the board members was going to use it as a watch.

Apple iPod nano

The device comes in six colours including a Product (RED) version as part of the charity effort.

"it's amazing to hold such a small thing in your hand. It's always amazing" said Steve Jobs.

Steve Jobs also claimed that the device has a 24 hour battery life.

The iPad nano will cost £129 for the 8GB model and £159 for the 16GB model. in the UK. Perhaps to pre-empt any concern over UK pricing, Apple points out in a press release that this includes approximately £25 VAT, duty, and levies for the 8GB model and approximately £30 VAT, duty, and levies for the 16GB model.