Apple announced Wednesday the first major overhaul of its popular iPod music digital players in nearly two years.

On top of iPods with more storage and bigger screens, Apple rolled out the iPod Touch, a slim, WiFi-enabled device with a touchscreen interface similar to its new iPhone mobile handheld.

Apple CEO Steve Jobs speaking Wednesday in San Francisco, where he announced a major revamp of its iPod music players.

The company also announced a new version of its iTunes music store that will allow users to buy songs wirelessly. iTunes will also sell customizable 99-cent ringtones for the iPhone.

CEO Steve Jobs unveiled the new features at an invitation-only press conference held in San Francisco.

To date, Apple has sold more than 100 million iPods, but sales have been drifting since last year's holiday shopping season and profit margins are shrinking.

Jobs also announced a new version of the classic iPod. With a full metal design and thinner than its predecessor, a new $249 model comes with 80 gigabytes of storage and 30 hours of audio. A slightly thicker model will have 160 gigabytes of storage and retail for $349.

"This boggles the mind," Jobs said. He pointed out that the original iPod could hold up to 1,000 songs. Today, an iPod can store 40,000 songs.

The new Nano, meanwhile, will have a larger, brighter screen with an interface similar to the iPhone and will be sold in black, red, silver, blue and green. Apple will also bundle three games into the new Nano, including Sudoku from Electronic Arts.

The new Nano will feature two memory sizes: A 4-gigabyte model for $149 and an 8-gigabyte model for $199.

Jobs said the new Nanos should be in stores by this weekend.