The third generation iPod shuffle is smaller than an AA battery, can store up to 1,000 songs and has no buttons on the device itself.
The controls are located on the earphone cord, which enables users to play, pause, adjust the volume, switch playlists and hear the name of the song and artist.
The VoiceOver feature allows the shuffle to speak the song titles, artists and playlist names in 14 languages including English, Czech, Dutch, French, German, Japanese and Mandarin Chinese.
The 4GB device is available in black or silver at a cost of £59. Apple will continue to sell the 1GB iPod shuffle, which can store around 240 songs, for £31.
Greg Joswiak, Apple's vice president of iPod and iPhone product marketing, said: "Imagine your music player talking to you, telling you your song titles, artists and playlist names.
"The amazingly small new iPod shuffle takes a revolutionary approach to how you listen to your music by talking to you, also making it the first iPod shuffle with playlists."
The size of the device means that there is no room for a screen and users have to use the Apple headphones supplied with the shuffle, which has disappointed some gadget fans.
Joswiak argues that the VoiceOver feature gives users all the benefits of the display without having to have one.