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Consumer electronics giant Apple has lifted the lid on the eagerly-anticipated sixth generation of iPods – dubbed the iPod Touch.

Apple chief Steve Jobs unveiled the 8in thin MP3 player in a blaze of publicity at a special event in San Francisco.

The new product, released ahead of the crucial US holiday season, is similar in appearance to the company's all-encompassing iPhone and incorporates touchscreen technology, but is the first dedicated iPod to come complete with Wi-Fi internet capabilities.

Apple is also launching a new wireless internet version of its iTunes store to allow consumers to buy music on the go, while other features of the new iPod include its 3.5in display screen automatically sensing when its user turns it on its side to watch videos in landscape mode.

"The iPod touch is a landmark iPod, ushering in a whole new generation of features based on its revolutionary multi-touch interface and built-in Wi-Fi wireless networking," Mr Jobs said.

"People are going to be amazed at how thin it is and how much it does."

Two versions of the iPod Touch – allowing 8GB and 16GB of storage space – are going on sale stateside priced at $299 (£148) and $399 (£197) respectively.

As with the iPhone, there is no official UK release date or price structure from Apple.

Mr Jobs also unveiled updated versions of the iPod Nano and iPod Classic, as well as revealing a deal with Starbucks allowing consumers to access the iTunes Wi-Fi music store for three in participating coffee houses.