Apple is set to launch a new touchscreen iPod Nano which is almost half the size of its existing version and also 42 percent lighter.

The latest device no longer has the familiar touchwheel for moving between tracks.

The new device was part of an overhaul of the entire iPod range unveiled by Apple boss Steve Jobs, reports the Daily Mail.

Jobs described it as 'the biggest change in the iPod lineup ever'.

As part of the iPod overhaul, the new iPod Touch was unveiled which is thinner, has the same high-definition retina display screen as the iPhone and also comes with a front-facing camera.

The new iPod Nano has volume buttons, VoiceOver, FM radio, Nike+, a pedometer and works in 29 languages, Jobs told a press conference in San Francisco, US.

Jobs also announced that iPhone users will be getting a software update that offers the ability to upload high-definition video over WiFi.

He said when people take photos with their iPhone, the new software saves three slightly different copies that, when combined, make for a sharper image.