Creative unveiled its new $39.99 ZEN Stone. ZEN Stone is a tiny 1GB MP3 player can hold up to 250 songs and can operate for 10 hours on a single charge (12 hours for the iPod Shuffle). A wide palette of colors is also available: black, blue, green, pink, red and white.

“The Creative ZEN Stone, at just $39.99, opens up a huge new market for MP3 players,” said Creative chairman and CEO Sim Wong Hoo. “This is an incredible price for everyone to get a superior quality MP3 player capable of holding up to 250 songs. Whether it’s your only player or a second player to take with you anywhere, the low price lets you think of MP3 players in a whole new way. You can loan it to a friend just like you would a CD or a mix tape and not have to worry about it, but you’ll like it so much that you’ll want another, so you always have one with you.”

The ZEN Stone will also come to market with the $39.99 Creative TravelSound ZEN Stone which turns the MP3 player into a portable speaker system. The TravelSound ZEN Stone will be available in black or white and can operate for 20 hours with two AAA batteries.

The ZEN Stone and the TravelSound ZEN Stone will be available at online retailers and in B&M stores on May 14.