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[personal profile] mmcirvin
To recap, the rumors of low-cost mini-iPods don't make any sense unless Apple can find some radically lower-cost manufacturer of tiny hard drives with capacities of a few gigabytes.

Today, a company called Cornice announced a 2GB mini-drive (excuse me, "Storage Element") for a per-unit cost of $70 in gigantic quantities. I don't know if you could make money selling a $100 MP3 player based on such a thing, but it would certainly make possible a device smaller and much cheaper than a current iPod in the rumored low-end capacity.

Cornice's older devices are already used in some MP3 players (and other things, such as video cameras) and have been a focus of rumorological speculation, but they were slightly smaller in capacity, and, I think, somewhat more expensive; the players based on them haven't been all that attractively priced.

The announcement comes one day before the San Francisco Macworld keynote, but this could just be a coincidence, since the press release talks about CES, which is also coming up in a few days.

Update: Apparently Cornice's earlier drive wasn't more expensive, just smaller. $100 retail still seems low.
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