San Francisco: Apple announced on Wednesday that it was adding a video camera to its iPod Nano and cutting prices of its wildly popular music players.

Apple chief executive Steve Jobs unveiled the video camera-equipped iPod Nano at an Apple media event here during which he made a much-anticipated appearance on stage.

Jobs said the new iPod Nano, Apple’s best-selling iPod with more than 100 million units sold, would now include a video camera, an FM radio, a pedometer and a microphone and speaker.

“You can watch your video on the Nano or sync it back to your computer,” he said. “With one click you can send it to YouTube.”

“So, pretty amazing to always have a video camera of that quality in your pocket, built right into your Nano,” Jobs said.

He said there would be two models—an 8GB version for $149 and a 16GB model for $179.

The video-equipped iPod was the product highlight of the Apple event dominated by Jobs’ first public appearance since October 2008.

Jobs, 54, went on medical leave in January and returned to work in June following a liver transplant.

Apple also announced it was cutting the prices on various iPods models with the price of an 8GB iPod Touch, for example, dropping to $199 from $249.