“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,” said Steve Jobs, Apple’s CEO.

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

The newest iPod has less memory that the iPhone, but is much thinner -- the new device is a mere 8mm thick.

Apart from playing songs and videos, the iPod touch comes with wireless networking and the Safari web browser.

"Others have done this and have failed," Jobs said, possibly alluding to the botched implementation of wireless networking on Microsoft's Zune music player.

"We think we know why it's failed. What's the problem with adding Wi-Fi? Part of it is getting on Wi-Fi itself.

"When you're at home, you might need a password. When you're in the office, you might have a password.

"But everywhere in between can be challenging. You go to any hotel, and to log in, they throw up a web page. Portable devices don't know how to deal with web pages.

"You go to an airport, you'll see a web page. Even walking through Stanford University, to use their Wi-Fi, you have to log into a web page.

"So you can view all those web pages, zoom in, log into any Wi-Fi network pretty much. But beside that, you get an incredible web browser -- the best web browser on any mobile platform."

Jobs also announced a version of the iTunes music store that runs on the iPod itself -- as long as there's a Wi-Fi connection available.

Apple have formed an alliance with Starbucks -- the coffee chain has become a significant record company in its own right, boasting artists such as Ray Charles and Bob Dylan on its roster.

The new iPod touch will allow users sitting in Starbucks to purchase the track that they are listening to at the moment, as well as reviewing the previous ten tracks played.

Early coverage of the new iPod has been generally positive, ranging from the guardedly cautious to something approaching gushing hyperbole.

"Apple you’ve done it again. It’s time the competition just packed up and went home," wrote one correspondent on the website of T3, a glossy magazine for gadget aficionados.

In the opinion of this correspondent, the device is clearly a shot across the bows of the mobile networks.

Many of the problems with the iPhone's launch related to AT&T's infrastructure -- which was out of the control of Apple and no doubt caused immense frustration to Steve Jobs, a notable control freak.

The iPhone was also notable for eschewing mobile-only standards such as WAP browsers and MMS messaging in favour of the more universal HTML browser and e-mail.

Apple and AT&T fundamentally have different agendas -- Apple is in the commodity business of shifting units, be they Macs, iPods, or iTunes tracks.

AT&T are in the business of constantly selling services eg net access priced by the kilobyte, ringtones, and other forms of content bought over their network rather than downloaded onto a computer and then sideloaded onto a phone.

Jobs has seen which way the wind is blowing -- the next generation of Wi-Fi is WiMax, which has the potential to be available over long distances.

Expensive proprietary solutions from the mobile networks may be rendered obsolete by WiMax and associated technologies.

The iPod touch is Steve Jobs' subtle way of telling the mobile operators that their days are numbered -- the day will come when he doesn't need them anymore.