Appleinsider is reporting that Apple is about to begin manufacturing a flash-based MP3 player that will be announced at the Macworld show in San Francisco next January.
This is a big area where Apple has been lacking, having 90+% market share of hard drive based MP3 players, but not having any flash based players which typically sell for $100 to $200 and have 128mb to 2gb memory.
The rumor is that Apple will offer players with between 256mb and 1gb of memory that will be priced under $200.
I think Dell really need to start pushing their Pocket DJ: it is a 5gb hard drive player that I have seen priced as low as $180. If I had a choice of a 1gb Apple for $200 or a 5gb Dell for $180 I know what I would buy as at the end of the day iPods are pretty but they are over-priced and under-featured.