iPod Touch offers iPhone without the phone

Apple has unveiled the iPod Touch, a touch-screen and Wi-Fi equipped version of its popular iPod media player.

Chief executive Steve Jobs unveiled the new device at a company event in San Francisco.

VIDEO: New iPod has the soft touch

As previously reported, the device closely resembles the iPhone except for the cellular radio function.

Similar to the iPhone, the iPod Touch comes with Apple's Safari web browser and features just one physical button. All other controls are accessed through icons on the touch screen.

It also shares the iPhone's special version of YouTube which allows users to view videos without a Flash player.

The two devices will also share a brand new feature. Apple plans to launch a Wi-Fi version of the iTunes store later this month allowing mobile users to purchase and download songs over a wireless connection.

The service will not work over the iPhone's Edge data connection, a company spokesperson told vnunet.com.

The service will be available in all 22 countries officially supported by iTunes. Apple expects to ship the iPod Touch worldwide by the end of this month.

Customers who purchased an iPhone strictly to use its Wi-Fi internet and media player features may be disappointed to learn that the iPod Touch will be priced at just $299 for an 8GB version and $399 for a 16GB capacity.

The 8GB version of the iPhone previously retailed at $599, but Jobs revealed a price cut for the device to $399 effective immediately. The Apple chief intends the price drop to spur sales in the coming holiday shopping season.

Citing lacklustre sales, the company is also phasing out the 4GB iPhone.

Even though the iPod Touch and iPhone share a number of features, Gartner media analyst Van Baker told vnunet.com that he does not see the iPod Touch cannibalising iPhone sales.

Some iPod users do not want to risk draining the phone's battery by playing music and movies.

"There is the group that wants a converged device, and then there are the people whose cellphones are their lifeline and do not want to have to deal with the battery on a converged device," said Baker.

• A video round-up of the new iPods is available on vnunet.com TV
  

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