Apple has unveiled an all-new iPod: the iPod touch.

Based on Apple's revolutionary iPhone, the iPod touch uses the same touchscreen technology, includes Wi-Fi, and can be used to browse the web. You Tube, Apple claims, will never be the same again.

Also hot! Apple launches iTunes Wi-Fi Music Store

"You know, when we introduced the iPhone in January, we said it was the best iPod ever. And iPhone owners agree with us. It's incredible, with its multitouch UI, its incredible album artwork and video, it is the best iPod ever," said Jobs. "And people have been wondering, when are we going to bring this tech to the iPod? The answer is, we're going to do it today, and this is what the product looks like."

Jobs revealed a new iPod model that looks exactly like the iPhone, but without the ear speaker slit. It's the same size as the iPhone, but 8mm thinner, according to Jobs, who said, "We think it's one of the Seven Wonders of the World."

The iPod Touch sports a 3.5-inch widescreen display, and along its bottom run music, video and photo icons. "Just like the iPhone, this is the best way to share photos on a portable device ever," said Jobs proudly.

The iPod Touch's button-driven interface also showed icons for a calculator, contacts, clock, calendar and settings icons. What's more, the new device has Wi-Fi: the iPod Touch is the first iPod to feature wireless networking capabilities, with support for 802.11 b and g networks.

"Others have done this and have failed," said Jobs, referring to wireless networking - and making a casual swipe at Microsoft's 'iPod killer,' the Zune. "We think we know why it's failed. What's the problem with adding Wi-Fi? Part is getting on Wi-Fi itself."

"When you're at home, you might need a password. When you're in the office, you might have a password," said Jobs. "But everywhere in between can be challenging. You go to any hotel, and to log in, they throw up a Web page. Portable devices don't know how to deal with Web pages. You go to an airport, you'll see a Web page. Even walking through Stanford University, to use their wi-fi, you have to log into a Web page."

The solution, said Jobs, was to add the Safari web browser to the iPod touch.

"So you can view all those Web pages, zoom in, log into any wi-fi network pretty much. But beside that, you get an incredible Web browser ... the best Web browser on any mobile platform," said Jobs. YouTube is also supported.

The iPod touch's battery lasts for 22 hours of audio playback and five hours of video playback per charge, according to Apple.

The iPod touch is a worldwide product launch, said Jobs. It's the first touch product Apple has shipped outside the US, and it's been localized into many languages.

The iPod touch is coming in two configurations: 8GB and 16GB, for £199 and £269 respectively. Both models are expected to be available "in just a few weeks," according to Jobs, who said that Apple will ship them in September, "in plenty of time for the holiday season."

More news from the special Apple event here.