Apple has announced a new iPod nano with a built-in camera at the 'Rock and Roll' event. Apple CEO Steve Jobs introduced the device by citing the popularity of pocket flash-based video cameras like those from Flip and Kodak. "This market's really exploding," said Jobs, "and we want to get in on this."

The new iPod nano comes in 8GB and 16GB models, each of which incorporates a video camera and microphone on the back of the unit, as well as a built-in speaker. The nano can display video or sync it back to your computer, where you can easily upload the clip to YouTube. The microphone can also be used with the nano's voice recording feature.

In addition, the nano now has VoiceOver support, which provides audible navigation cues, and the new Genius Mixes feature, which creates playlists of music based on your existing library. There's also a built-in pedometer which can measure your steps and sync it with the Nike+ service.

Other than the camera, the physical form factor of the nano remains mostly unchanged, although it now features a larger 2.2-inch display and comes in new colours.

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