Update: Check out our iPhone 5 review
At 6.1mm thin and weighing only 88 grams, the 5th generation iPod Touch will offer up to 40 hours of music playback and 8 hours of video.
And, for the first time, Siri has jumped across and will be fully integrated into the new iPod Touch.
Apple also took some time to talk about gaming on the iPod Touch. According to Greg Joswiak, vice president of iPod, iPhone, and iOS product marketing, the iPod Touch is, "the world's most popular music player... but a lot of people don't realize that it's also the world's most popular videogame player as well."
The new Touch boasts a dual-core Apple A5 processor that offers 7x faster graphics than the old Touch. Enough muscle to enjoy the 175,000 games available on the platform.
Camera-wise, we've got a 5-megapixel iSight rear-facing HD camera with backside illumination, an f/2.4 apeture and the same sapphire crystal lens cover as the iPhone 5. A front-facing 720p camera will also let you enjoy high definition FaceTime.
The body of the iPod Touch 5th generation does away with the chrome finish and opts instead for aluminium with a brushed metal finished.
As expected, the new Lightning port is present on the bottom of the iPod Touch - so you're going to want to get hold of an adapter for your cables and docks. However, you will find Bluetooth on the new model - opening the door for plenty of wireless music playback.
Alongside the iPod Touch, Apple showed off the 7th generation iPod Nano - which has also benefited from a screen increase.
The new Nano features a 2.5-inch multitouch display, a home button and at 5.4mm in thickness is 38 per cent thinner than the previous version.
There's a choice of seven colours (aluminum, black, purple, green, blue, yellow and red) and the Nano will also feature an FM tuner and a pedometer built in - great for regular joggers.
All the new iPods will arrive with Apple's redesigned Earpod headphones and pricing looks to remain much the same.
Preorders for the new iPod Touch will begin on September 14 with suggested pricing of £249 for the 32GB model and £329 for the 64GB model.
Meanwhile, the iPod Nano will be available at a suggested price of £129 for the 16GB model in October.