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As you can see from the comparison with the older version above, the new iPod Shuffle is significantly smaller; Apple says it's 1/2 the size. Despite the size reduction, Apple's squeezed some new features into it.
For one, Apple has bumped storage to 4GB, holding over 1,000 songs. Second, Apple has added VoiceOver, making it, according to Apple, the first talking music player. This feature enables the iPod Shuffle to speak your song titles, artists and playlist names. Interestingly, the voice is different depending upon if you sync to a Mac or PC. If you sync to a Mac, you will hear a male voice. Sync to a PC, and you will hear a female voice.
I'm not sure if they are trying to make some sort of point here, but it is what it is.
The third generation iPod shuffle has all its controls located on the earphone cord, including play, pause, volume, playlist switch and VoiceOver. In keeping with recent Apple trends, it's a new aluminum design with a built-in stainless steel clip.
The new third-generation iPod shuffle comes in silver or black. It's $79 and is shipping now, according to their site.