This rumor has TheWama stamp of approval.
Consider this:
1. High-Efficiency Advanced Audio Codec (HE-AAC) was recently acknowledged as a tech with Apple's support.
2. HE-ACC can suposedly encode "consumer quality stereo" at 48kbps.
3. The only market the iPod isn't dominating is the flash market.
4. The flash market is growing significantly faster than the HD market, 21% vs. 12%. This despite the iPod mini.
5. The big problem with the small devices is the number of songs they can hold. So Steve says "they end up in a drawer somewhere".
I think HE-AAC's lower bitrate puts a flash player at a reasonable number of songs, when compared to intial offering of iPod devices, like the first iPod and the first iPod mini:
Minimum iPod Capacity offered by Apple
iPod Capacity Bit-Rate.. Songs
.1G. ..5GB.. ..128kbps.. ~1000
mini ..4GB.. ..128kbps.. ~1000
flash .1GB.. ...48kbps.. ~650
So as I said, it all makes sense.
Curious to see what they come up with for the UI...
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Eagerly awaiting word back from Apple on an internship I interviewed for.
If you work for Apple, I'd appreciate a little help.
If you don't I could use a few prayers or good wishes or something.