Seagate will be releasing 60GB and 120GB 1.8" hard drives later this year.
We did not have a drive for [the handheld video business] that will come in capacities of 60 and 120 GB, and so we will have one in the December quarter and we think that will be a nice little driver for us. We feel a whole lot better about things than Wall Street does right now.
60GB and 120GB drives of this form factor could be used in future iPod releases.