Steve Jobs, the chief executive of Apple, launched two new products aimed at taking a bigger bite of the exploding portable music and communications market.

Firstly, he launched the long-awaited iPod mobile phone, a joint venture with Motorola. And then, ever the showman, he revealed the iPod nano, which - at one-fifth of the size of the original iPod - is described by Mr Jobs as "the biggest revolution since the original iPod".

His surprise launch of the iPod nano was aimed at quelling industry speculation that the mobile phone MP3 player would eat into sales of iPods.

Weighing 1.5 ounces the iPod nano can hold up to 1,000 songs or 25,000 photos. It is 62 per cent smaller than the iPod mini which is currently Apple's most popular music player.

Mr Jobs said he expected the ultra-light device, which is thinner than a pencil, to outsell the iPod mini. It has the same click wheel as other iPods and will connect to computers in the same way. The device is available in a 4GB model priced at ?79 which holds up to 1,000 songs and a 2GB model at ?39 which holds up to 500 songs. Both models come in black or white and have a colour display screen. New features include a stopwatch, a world clock and a screen lock option.

Addressing the San Francisco audience, Mr Jobs said: "It is breathtaking. You won't believe it until you hold it in your hand. It is one of the most amazing products Apple has ever, ever created." An advertising slogan for the new device states: "1,000 songs in your pocket. Impossibly small."

The iPod nano will be available at Apple stores and Apple-authorised retailers across the UK by the weekend.

The long-awaited iTune mobile phone, the Motorola Rokr, can hold up to 100 songs, audio books or Podcasts. It takes photos and videos, has internet access and comes with stereo speakers. The phone comes with an inbuilt function to pause tunes if the owner resorts to using the more traditional telephone function of answering a call.

Music can be instantly accessed via a single button, and the phone can be " auto-filled" with iTunes already on a user's Mac or PC . Mr Jobs said the new device was like having an iPod Shuffle on a mobile phone.

Nokia and Sony Ericsson have already launched music phones, but the launch of the Apple phone is expected to be a strong contender in the competitive market because the brand is already synonymous with music.

Details of which mobile phone networks will be compatible with the Motorola Rokr in the UK are not yet available, an Apple spokeswoman said. However, there has been industry speculation that the iPod phone will be available on the O2 network.

Wednesday Apple also announced that the first six Harry Potter books will be available on the iTunes download service.

Source: CRI/agencies