iPod is getting cheaper; new iPod nano due?

The new Apple iPod nano is expected to be like the Apple iPhone, minus the phone capabilities.

We've already told you about the Apple event next Tuesday ; new Apple Macs are on the way - and possibly also a new Apple iPod nano model...

Plenty of Apple iPod rumours have circulated in the past few months but this time they're giving us a bit more detail. Apple is reportedly developing a 2-inch-square flash-based Apple iPod that may be called the Apple iPod Touch. The device is going to play back video, and cost $299 and $399 (£147 and £196) for the 4GB and 8GB models, 9 to 5 Mac has reported.

Apple share price falls on rumours

Apple's shares fell nearly 7 per cent to $131.76 (£64.83) yesterday - the lowest close since early July - following speculation of production cuts of the Apple iPhone and Apple iPod, Reuters has reported. The rumours have subsequently turned out to be unsubstantiated, based on false reports of analyst research notes.

"There are occasional rumours on Apple, often unconfirmed. A lot of them end up being wrong or short-term," Shaw Wu, an analyst with American Technology Research, told the news agency.

We'll bring you the latest from the Apple event, to be held at the firm's headquarters in Cupertino, CA, as it happens next Tuesday, 7 August.

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