At its much awaited launch event, Apple updated its iPod touch and iPod nano lineup along with iPhone 5. The new iPhone certainly took the spotlight, yet I think iPod touch is an undervalued device that can extend Apple’s global market.

What is most fascinating about the new iPod touch is that it serves multiple purposes. It’s a powerful MP3 player, but it can also be used to play movies, watch video via WI-FI, and make Skype calls. The built-in Siri turns it into a perfect personal assistant, and the new Retina display, combined with numerous gaming apps, makes it one of the best handheld gaming systems in the market.

To apple, nevertheless, iPod touch brings much more than that. The 5-megapixel camera added to the latest model makes iPod touch a great video camera. Apple’s iPhoto app enables users to directly manage and edit videos right on the device itself. Here’s the point – iPod touch is making its way into the market for point-and-shoot cameras.

For about the same cost of a common point-and-shoot camera, buyers of iPod touch will get much more from this device. It is true that many point-and-shoot cameras features advanced functions and more megapixels, but they are still single-purpose devices. Survey shows that for many customers, a 5-megapixel camera is powerful enough to take high quality photos, which can be easily shared afterwards via Wi-Fi on iPod touch.

This enhanced iPod touch is significant for Apple for following reasons. First, it will be positioned in the market as a non-smartphone device with most versatile features. Many new smartphones come with similar features, but for customers who want a dedicated handheld media device, Apple’s operating system and its rich ecosystem make iPod touch extremely attractive.

Our survey shows that many people are disinclined to use their smartphones for such purposes as video playback or gaming, which can rapidly drain battery life. The primary uses of smartphones turns out to be voice calling, messaging, taking and sharing photos, and playing music; hence, battery life matters a lot to smartphone users. In order to lengthen battery life, people who love gaming or video streaming may opt not to use their smartphones for these purposes. For such customers, iPod touch 5th generation is the best solution.

The second reason that makes iPod touch important for Apple is that it brings more customers into the Apple ecosystem. For various reasons, many people who do not own an iPhone still love to use the apps, music and videos offered by Apple ecosystem.

I meet lots of people who bought an iPod touch in addition to an Android phone so that they can supplement their mobile media experience. So far more than 425 million credit cards have been tied to Apple ecosystem. With the new iPod touch, iPhone 5 and the rumored iPad mini, this number is expected to reach 500 million by the middle of 2013.