Apple has revealed that it is ditching the iPod mini range - its best-selling iPod - and replacing it with the tiny, flash-based iPod nano.

The iMac-style colour theme is gone too, to be replaced with white and black versions - much more in keeping with Apple's current image.

Available in 2GB and 4GB capacity, the new iPod nano sports a colour screen and will display photos like its big brother, the iPod. It also boasts additional functionality including a stopwatch and other new features.

The 2GB nano holds 500 songs and the 4GB nano holds 1,000 - as many as the original iPod held, in a fraction of the size. In fact, Jobs took much pride in showing attendees that the iPod nano is more than 50 per cent smaller than similar devices on the market.

The 2GB iPod nano will cost £139, while the 4GB nano will cost £179. They should be in stores by the end of the week.

A selection of accessories are also available, including a set of five coloured plastic cases called Tubes, for £19.