This is just at the pure speculation stage, but DigiTimes interviewed Hitachi Asia-Pacific President Pete Andreyev and he mentioned that Hitachi will be unveiling (in Oct-Dec 2004) a 6gb slim drive that could be used in devices that would currently use a 4gb Compactflash compatible Microdrive.
This could easily appear in the next generation of iPod mini if Apple decides to increase the hard drive size.
We also think these 6gb drives will definately appear as part of 6gb iPod mini clones in the first half of next year.
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