Now, the iPod Mini is what all of our competitors have their sites focused on.

Why?

Well, it's obvious because the iPod Mini is the most popular MP3 player in the world.

It's the most popular iPod and that makes it the most popular MP3 player in the world.

So that's the one everybody's focused on.

Well, today, we're going to do something pretty bold.

Today, we're going to replace it.

We're going to replace it with something new.

Now, let's go back to the beginning because we started this all with 1,000 songs in your pocket, right?

We started it with the original iPod and then we carried 1,000 songs in your pocket over to the iPod Mini.

Well, now we're going to replace the iPod Mini with a new player, an entirely new ground up design that also has 1,000 songs in your pocket and it's called the iPod Nano.

The iPod Nano is the biggest revolution since the original iPod.

A lot of people have worked so hard on this over the last many, many months and it is my privilege to show it to you now, 1,000 songs in your pocket, the iPod Nano.

So let's get a camera.

I've got a pocket right here.

Now this pocket's been the one that your iPod's gone in traditionally.

The iPod and the iPod Mini fit great in there.

You ever wonder what this pocket's for?

I've always wondered that.

Well, now we know because this is the new iPod Nano.

All right, let's take a closer look at it.

This is the new iPod Nano.

It is breathtaking.

You won't believe it until you hold it in your hands.

A thousand songs, an amazing color display, a click wheel.

It is one of the most amazing products Apple has ever, ever created.

A thousand songs in your pocket, impossibly small.

It's really small.

Let me show you how small this is.

This thing is thinner than a number two pencil.

Thinner than a number two pencil.

Now let's go ahead and compare it to the original iPod.

This is the original iPod that also held a thousand songs in your pocket.

Look at that.

The iPod Nano is 80% smaller in volume than the original iPod.

80% smaller means it's 20% of the size.

It's one-fifth the size of the original iPod that we shipped less than four years ago.

Okay, let's compare it to the iPod Mini.

The iPod Mini, an incredibly successful product.

The iPod Nano is half the thickness.

It's 62% smaller by volume.

That means it's almost one-third the size of the iPod Mini.

Now let's take a look at some competitors.

Some of their flash products here.

Here's iRiver.

Look at this, 68% smaller.

It's one-third the size of a competing player that doesn't hold anywhere near the number of songs.

Here's another one by a company called Creative.

I think it's called their Zen Player.

Again, 69% smaller, one-third the size.

Here's another one.

I think this is the Zen Neon.

58% smaller, less than half the size.

Here's a player from Samsung.

Again, less than half the size, 59% smaller.

Here's a Sony player, 67% smaller, a third the size.

Now let me compare it to something else, which isn't a competitor, which is a really cool product.

This is the coolest phone on the market until today with the iTunes phone, the Motorola

Razr phone, right?

Look at this though, 66% smaller, one-third the size of the smallest phone on the market.

That's how small this is.

It's really small size, but it's got really big features.

This is a full-featured iPod.

So first thing is, it's got that 30-pin dock connector like the iPod and the iPod mini, and so it plugs in to the entire universe of iPod accessories.

And again, a gorgeous color screen, and music's the most important thing, but we've added some other things beyond just music.

We've added photos.

So you can have your whole photo library up to 25,000 photos, and the color screen is pretty nice, very high resolution.

And we've added some great things in extras.

We have a new clock, which is set to Cupertino when we ship it, but you can put it to any major city in the world.

But you can also add as many clocks as you want, and just scroll down and see them.

And they go dark when it's nighttime, and have however many clocks you want.

Of course, we have games.

We have beautiful calendars.

We have some new things, too.

We have a lap timer, a stopwatch and a lap timer, so you can do some really nice lap times, several of them.

And we have a screen lock.

If you're going to have your contacts and calendars on, you might want to lock your screen when you, and you can do that, and the way you do it is you set it with the click wheel.

You turn the click wheel, it turns the dial, you set the lock.

Now, some people are going to forget anything, so they're going to forget their combination.

When you take your iPod Nano back and you dock it with the computer that it's synced to, it automatically opens the lock, so you're not going to be stranded.

So these are just a few of the features of the new iPod Nano, a full-featured iPod.

And yet all of this weighs one and a half ounces, 42 grams.

That is less than eight quarters in your pocket.

It's got USB 2.0 for really fast transfers, and it's got a 14-hour rechargeable battery.

All in this tiny, tiny little package.

Of course, it works on PCs and Macs.

And there's one other thing.

You know, white is our signature color for the iPod.

They've been white since the very beginning, and of course, the iPod Nano's signature color is white as well.

But we decided to do a second color because we tried it and it looked so cool.

And so we're going to be offering the iPod Nano in black as well.

White and a black model.

So two models, two colors.

iPod Nano.

The first model, four gigabytes of storage, holds 1,000 songs, priced at $249, the same price that we launched the iPod Mini at last year.

Second model, two gigabytes, holds 500 songs for just $199.

These are amazing, amazing prices for these features.

And they are shipping today.

We are shipping units as we sit here right now.

They will be in stores in many parts of the world by this weekend.

They will be in some stores as early as tomorrow afternoon or Friday.

And this is what you look for.

This is the shipping boxes.

They are shipping out as we speak today.