The A10 Fusion chip was first introduced with the iPhone 7. In other words, the new iPod touch performs more or less just like an iPhone 7. Just like the previous version of the iPod touch, it supports iOS 12. But you can now launch ARKit apps and start group FaceTime conversations — the A8 wasn’t powerful enough for those features.

This is a surprising move as the iPod touch hasn’t been updated since 2015. Many people believed that Apple would focus on the iPhone as there’s less demand for a smartphone without cellular capabilities. The device doesn’t support Touch ID or Face ID, so you’ll have to use a good old passcode. But it’s worth noting that there’s a headphone jack at the bottom of the device.

And yet, the iPod touch is cheap when you compare it to an iPhone. Apple is releasing three models. For $199, you get 32GB of storage; for $299, you get 128GB of storage; and for $399, you get 256GB of storage — a 32GB iPhone 7 currently costs $449. It is available in six colors and should be available today on Apple’s website and later this week in retail stores.

There are many potential use cases for such a device. It can be a great standalone music and video player for kids or people who don’t want to get a smartphone. You can also use it as a remote to control music on your Sonos speakers and other connected speakers.