Brilliant, and what I felt they should have done last fall when they announced the current iPod shuffle lineup:

Apple today announced that its iPod shuffle, the world’s most wearable music player, is now even more affordably priced at $49 and that it is introducing a new 2GB model of the iPod shuffle for $69. The popular iPod shuffle is just half a cubic inch in volume, weighs just half an ounce, features an aluminum design with a built-in clip and comes in five colors—silver, blue, green, purple and a (PRODUCT) RED special edition.

The new 1GB iPod shuffle is available immediately. The 2GB iPod shuffle will be available later this month.