Apple has once again updated its iPod lineup by dropping the price of its 1GB iPod shuffle from $79 to a more manageable $49, and introducing a new 2GB model for a low $69. The 2GB model fills the gap where the old 2GB iPod nano used to be – which got axed once the new fat iPod nanos were released.

Apart from capacity there will be no difference between the 1GB and 2GB shuffles with both weighing a mere half-ounce, sporting no screen and providing 12 hours continuous playback off a single charge. The newly priced 1GB model is available immediately via Apple’s site, while the 2GB model will debut later this month. The price cut is sure to give sales of the tiny player a boost – and probably anger a few customers who purchased shuffles in recent months as well.