The iPod nano Generation 3 used a design unique to the iPod family with “squat” proportions in a thin case. It was available in 4 GB or 8 GB versions, with the 4 GB model offered only in silver, and the 8 GB models offered in silver, light blue, light green, black, and (PRODUCT) RED Special Edition, and later pink option was added. All models had a chrome stainless steel back.
Compared to the iPod nano Generation 2, the Generation 3 added a larger 2-inch (diagonal) color LCD display at 320×240 resolution, support for video on the internal display, and video out via the dock.
The software is greatly improved with enhancements including a Cover Flow option for selecting albums. Three games were also bundled: iQuiz, Klondike, and Vortex.