Apple planning an even smaller, even lighter, flash-based iPod?

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Is Apple working on an even more mini flash-based iPod? It's still more or less in the realm of speculation for now, but a semiconductor company called SigmaTel has supposedly signed a deal with Apple to supply them with controller chips for a new flash-based digital audio player which should be out just in time for Christmas. If true, we're guessing that Apple will probably use the chips in a line of ultrasmall, ultralight flash-based players that'll like range from 256MB to 1GB in storage capacity (or maybe even bigger). We're all aflutter at the possibilties.

[Via PlayerBlog]