According to a new report, Apple has been demoing a new product to select insiders. The new device is reportedly a 2GB "mini" iPod, and has been noted to come in a variety of colors. Expected introduction of the new low-end iPods are in January 2004.
Some recent rumors have hinted at low end iPods coming from Apple, with subsequent corroboration.
While Apple presently uses Toshiba's 1.8" hard drives in existing iPod devices, Toshiba will be introducing 1" hard drives at the Consumer Electronics Show, also in January 2004.