Apple cut the price of its MP3 player, the iPod Shuffle, and launched a smaller-capacity version of its mid-priced iPod Nano.

Cupertino, California-based Apple said the 512-megabyte Shuffle will now sell for $69, down from $99 previously. The 1-gigabyte model will sell for $99, down from $129.

The 512-megabyte version holds about 120 songs. The new 1Gb Nano, the sleek iPod model, was priced at $149.

The 2Gb Nano sells for $199 and holds about 500 songs; a 4-gigabyte model sells for $249.