Australia is now the cheapest place in the world to buy an iPod, thanks to the Australian dollar's sharp decline.

Analyst firm CommSec said that Australia is the cheapest place among 62 countries to buy an Apple iPod 8gb nano music player. It ranked as the 14th cheapest in July. CommSec chief equities economist Craig James said the sharp drop in the Australian dollar had improved the currency's competitiveness.

The price of an iPod has fallen since July, anyway, as the fad starts to lose its shine.  However, the Australian dollar has fallen further than most currencies against the greenback - down over 45 percent - thus boosting Australian trade competitiveness. In Australia the new 8gb iPod model is now priced at $199 Oz dollars which is worth $US131.95.

According to CommSec's index, Argentina is the dearest place to buy an Apple iPod where at $US353.20 it is still reassuringly expensive.