If you haven't been paying close attention to the theoretical glass ceiling that the iPod has struck, you may not realize that Apple's darling has been capped at 60GB for quite awhile now. While the iPod with video is, in our humble opinion, very ripe for a refresh, the holdup could be history if Seagate has anything to do with it. The world's "largest hard drive manufacturer" isn't fazed by the recent flash-based memory craze, and feels that even NAND can't oust the tried and true storage platters on its own. William Watkins, the company's CEO, recently stated that he felt quite secure in his operations, and that while flash memory had its place, consumers needing spacious drives for backup and home / vehicle media storage will be skipping over the small stuff and heading straight for the hard drives. Regardless, recent analyst reactions to the less-than-stellar financial performance from the company has sparked questions about how it plans to stage a comeback in a flash-driven world, and the answer just might be the iPod. Watkins noted that Seagate hasn't been competitive in the high-capacity 1.8-inch drive arena, but we latched onto a certain comment regarding his intentions to change that -- in regards to 60GB and 120GB 1.8-inch drives, Watkins claimed that the company "will have one in the December quarter," which is obviously prime fodder for new iPod speculation (you know, since that's the holiday shopping season and all). While we weren't told outright that Seagate was in line to supply Apple with these larger drives, we sure hope somebody hooks it up with more capacity, and besides, there's never a time like the present to crank up the rarely-stagnant Apple rumor mill once again.

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Seagate hoping to get 60GB and 120GB drives into iPods