Just over a month after rolling out the super-slim, super-fragile iPod nano, Apple yesterday unveiled two video iPods at a special media-only event in San Jose, California, and announced revisions to its existing line of iPods.

Apple sold more than one million iPod nanos in the 17 days following its introduction in September, according to Jobs. "We could not meet demand," he told attendees of the special event.

"What about the white iPod?" he asked. "It's been a huge success, and therefore it's time to replace it. Today we are announcing the new white iPod, and it's a stunner. And yes, it does video."

The long-rumoured and highly anticipated iPods can play video on a 2.5in, 320x240pixel colour screen. The new iPod features realtime decoding of Mpeg4 and H.264 video. The video iPods come in two configurations. A 30GB model with a £219 price tag, and a 60GB for £299. The new iPod holds up to 15,000 songs, 25,000 photos or over 150 hours of video and is available in either white or black designs. Users can connect the new iPods to a television via the Apple iPod AV cable.

"The new iPod is the best music player ever – it's 30 per cent thinner and has 50 per cent more storage than its predecessor – yet it sells for the same price and plays stunning video on its 2.5in colour screen," said Jobs. "Because millions of people around the world will buy this new iPod to play music, it will quickly become the most popular portable video player in history."

The announcements came in conjunction with the news that the new version of the iTunes Music store in iTunes 6.0, Apple’s popular music-playing software, will sell both music videos and television shows from US TV network ABC Disney.

The UK iTunes Music Store is offering music videos from the likes of U2, Duran Duran, Gorillaz and Maximo Park for £1.89. Pixar shorts are also available at this price. Pixar, maker of Toy Story and The Incredibles, is also run by Apple's CEO Steve Jobs.