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Apple cuts price of iPod to boost its appeal

In an attempt to kick start its dwindling mp3 business, Apple is launching a new, lower-priced iPod touch, the company announced Thursday.

The iPod touch will still come in three storage sizes: 16 GB for $199, 32 GB for $249 and 64 GB for $299. The new players will also come in six colors.

Another new feature is a rear camera on all models. Apple is likely hoping this update will revive its iPod sales, which have shrunk along with other portable media devices as smart phones and tablets have effectively erased the need for a device that only plays music and videos.