Apple unveils 1 GB iPod Nano

Apple on Tuesday introduced a 1 GB version of its iPod Nano priced at $ 149 beefing up its product line of audio players.

The most slim, flash memory-based nano player now ranges from $ 149 for the new 1GB model to $ 249 for the 4GB model. Previously, the 2GB nano was the lowest-capacity and least expensive model at $ 199.

Apple also reduced the prices of its bare-boned shuffle players. The 512-megabyte version dropped from $ 99 to $ 69 and the 1GB model was discounted from $ 129 to $ 99.

Reacting to the announcement, Apple shares rose this morning. There was a time when lower prices used to send analysts scrambling, fearing tighter margins and price wars.

"By making it even more affordable, we want to continue to grow and enlarge the market," said Greg Joswiak, head of iPod product marketing, in a telephone interview.

Apple has already sold more than 40 million iPods since their introduction in October 2001, and, in 2005 alone, sold more than 30 million of the popular items.

“Now everyone can afford an iPod nano, with our new 1GB model starting at just $ 149,” said Greg Joswiak, Apple’s vice president of worldwide iPod product marketing.