San Francisco: Apple has shaved the price of its hot-selling iPhone, while simultaneously unveiling a touch-screen iPod. This is timed to coincide with the year-end holiday shopping season.

The new iPod caters to of consumers who didn''t want new mobile phones, but desired other features of the product.

Apple''s tweaking of the iPod saw the company add video, memory and some other coveted features, while keeping prices constant, if now down.

Among other add-ins, the iPod also has Apple''s famous Safari web browser, along with a built-in wireless antenna, which lets users connect directly to the Internet at Wi-Fi ''hot spots'', eliminating the need for carrying around laptops.

The 8GB iPod Touch is priced at $299, with the 16GB costing $399.