iPod Nano has made quite a ruckus when it was launched, not thte least because of its size. But something that created a lot of discussions was the choice of storage medium. Instead of using mini-harddrives as iPod Mini it chose to use flashmemory as storage with Nano. This was necessary to make Nano the way it wanted but it seems this will effect the entire market for 1″ mini-harddrives and not for the better. Earlier reports indicated an increase in sales of 1″ HDDs during 2005 and 2006 but now it seems that the sales will instead start to drop during next year.
Now that iPod Mini will be phased out this means the need for 17.2 million 1″ HDDs during 2006 will be removed as well.
Source: DigiTimes
