Apple has updated its entry-level iPod touch by adding a rear iSight Camera and offering some new color options. The price of the newly launched gadget is $199. The iPod touch 32 GB and 64 GB price has also been reduced to $249 and $299 respectively.

Apple iPod Touch

No other changes to iPod touch

Now, similar to higher version, iPod touch 16 GB is also available in different colors like black, space grey, pink, yellow, blue, and (Product) RED. Apple (NASDAQ:AAPL) has made available full range of iPods on it online store that will be shipped within 24 hours. Before the update, 16 GB iPod touch was only available in space grey color and did not sport a camera. The iPod touch loop wrist strap was also absent.

Previously, the 32 GB version was available for $299 and 64 GB used to cost around $399. All other specs remain unchanged on the 16 GB version. All iPod touch has a 4-inch Retina display, a forward facing FaceTime HD camera, and powered by Apple Inc.’s A5 processor. All the models are compatible with iOS 7 and are packed with the Apple’s EarPods.

Prior to this update, the iPod touch was updated in June 2013. The iPod touch replaced the fourth generation model, which used to cost $199, but had a slower A4 chip.

Market shrinking, Apple still leads

The iPod was the major growth driver and main reason behind Apple’s revival some years back. However, the media player is phasing out gradually and represents only a small portion of Apple Inc.’s massive business dominated primarily by the iPhone and iPad. Though, the market is shrinking, the iPod continues to be the most demanded media player. NPD group pegged Apple’s share at 72%.

Apple repeatedly stated during its earnings conference calls that iPod touch contributed for more than half of total iPod sales, but denied to give category wise data. Last quarter, the sales of iPod dropped to just 2.7 million units, which was absent from the company financial result discussion.

Apple has made available more than 1.2 million apps on iPod touch along with hundreds of thousands of games. Users can, also, access selection of music, TV shows, movies and books by purchasing them or downloading directly to their iPod touch.