Apple has introduced the new iPod touch.

The device looks like an iPhone. It features the same (3.5-inch) size screen as an iPhone and is just 8mm thin. "The new iPod touch. It's one of the seven wonders of the world," said Jobs, revealing the device.

iPod touch supports Apple's multi-touch user interface and lets them search through music and video using Cover Flow. It costs £199 for an 8GB model, and £269 for a 16GB model. Both models should be on UK shelves within a month.

The iPod touch also includes WiFi wireless networking, the first on any iPod, and three applications that make use of it:

- Safari web browser, lets users wirelessly view web pages just as on a computer. It offers both Google Search and Yahoo! oneSearch.

- Apple's YouTube application enables users wirelessly watch over ten million free videos from YouTube;

- iTunes WiFi Music Store lets users wirelessly browse, preview and buy songs and albums from iTunes.

. The iPod touch is an unbelievable 8 mm thin, and is priced starting at just $299.

"The iPod touch is a landmark iPod, ushering in a whole new generation of features based on its revolutionary multi-touch interface and built-in WiFi wireless networking," said Apple CEO Steve Jobs.

iPod touch has a built-in accelerometer that automatically senses when you rotate it into its landscape position. When you're in music, it automatically switches to Cover Flow so you can browse your music collection by album cover artwork with a flick of a finger.

When browsing Photos, it automatically displays the photo in its landscape aspect ratio; and when in Safari it displays the web page horizontally.

The device boasts a built-in ambient light sensor that automatically adjusts display brightness.

iPod touch features up to 22 hours of audio playback and up to five hours of video playback.

The iTunes Wi-Fi Music Store allows users to browse the iTunes Top Ten lists of songs and albums overall or by genre, check out new releases or search for songs, albums or artists. Song previews are free, and users can purchase and download selected tracks directly onto their iPod touch over WiFi. Music is then synced to a user's base iTunes collection next time a user syncs the device.

Apple today also announced an exclusive agreement with Starbucks that allows US iPhone and iPod touch users to access the iTunes WiFi Music Store for free in participating US Starbucks stores starting next month.

When you enter a participating Starbucks store, your iPod touch, iPhone, or PC or Mac running iTunes will automatically recognize the iTunes WiFi Music Store. You can see what song is currently playing or has recently played in the store, and immediately preview, buy and download it over WiFi.

Apple also introduced a new generation of iPod shuffle in five new colours; the iPod 160GB classic; and the new iPod nano with video playback.

The iPod touch is scheduled to be available (at least in the US) later this month. The 8GB iPod touch model is £199 while the 16GB iPod model is £269.

iPod touch requires a Mac with a USB 2.0 port, Mac OS X 10.4.10 or later and iTunes 7.4; or a Windows PC with a USB 2.0 port and Windows Vista or Windows XP Home or Professional (Service Pack 2) or later and iTunes 7.4.