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  Apple's new I-candy
Time: 01:26 EST/06:26 GMT | News Source: Newsday | Posted By: Erick Cordero

Apple Tuesday released a cheaper 1-gigabyte version of the iPod nano and cut prices on its iPod shuffle models in a move many analysts say will bolster its command of the portable audio market. "This is probably a tactical move to fortify Apple's already dominant position at the lower end of the market," said Steve Koenig, the Consumer Electronics Association's senior manager of industry analysis. "Not everybody needs 10 gigs or more of storage."

Apple announced that its new iPod will be priced at $149, with the same slender design and screen as previous models -- the 2- and 4-gigabyte iPods, priced at $199 and $249, respectively -- but with less storage space. The new model will hold about 240 songs or 15,000 photos.

In addition, Apple slashed the price of its screenless shuffle models, with the 512-megabyte shuffle reduced from about $99 to $69 and the 1-gigabyte shuffle cut from $129 to $99.

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