replaces the iPod Mini, and is flash based as opposed to an hard drive. 2GB for $199 and 4GB for $249.
http://www.apple.com/ipodnano/
personally, it's ultra slim size factor, colour screen, and the fact that it's flash based is very appealing, but at the current prices as the 4GB and 6GB Mini, consumers take a hit on storage capacity. seems like a step forward in one respect but a step back in another. Apple should keep the current Mini alongside the Nano.
that said, a 2GB Nano does make an appealing alternative to a 1GB Shuffle...