[MW Forums]

Toshiba Corp. is working towards doubling the storage capacity of its 0.85-inch hard-disk drive, it said Wednesday. The drive is physically the smallest available from any disk drive maker. It went into mass production earlier this year and can store up to 2GB of data in its first-generation form. Toshiba is currently working on a new version that will include two disk platters, allowing it to store up to 4GB of data, said Midori Suzuki, a spokeswoman for Toshiba in Tokyo. more

[macnuke]

so we can look forward to an iMicro?
that should fit nicely between the Shufle and the iPod Mini
m /forums/ubbthreads/images/graemlins/grin.gif

[MacGod]

I'd be pretty surprised if this went into an iMicro (or whatever). There isn't a lot of room in the iPod lineup, size-wise, capacity-wise or price-wise. The Mini is not massively bigger than the shuffle. The storage gap is only from 1GB-4GB (would there really be demand for a 2GB iPod to fill this gap?) and price-wise , the lineup goes pretty much in $50 increments from $100 upwards.
$100, $150-iPod shuffle
$200, $250-iPod mini
$300-iPod
$350, $450-iPod photo
The only gap is at $400, which would obviously be out of range for a hypothetical iPod micro. Otherwise, it would pretty much have to be priced the same as an existing model.