NikkeiBP reports that Toshiba has developed the"world's smallest hard-disk drive" at 0.85 inches in diameter. Previously, Hitatchi's 1-inch hard drive held the record. The upcoming Toshiba drive will have a storage capacity of 2-3GB and is expected to cost around 30,000 yen (~$278 US dollars) initially, but dropping down to 10,000 (~$92) yen in a few years. The drive is also not expected to reach full production until early 2005. This, combined with the cost of each unit, seems to make this drive an unlikely candidate for the rumored "low end" iPods.