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He makes a good argument but then undermines it with "The third option would be a device based on a miniature hard drive made by Cornice. Rio and RCA began using the 1.5 GB Cornice drive in music players this past summer.", these drives were about $50 in bulk.
 
And a spokesman familiar with Cornice's business said he is not aware of a relationship with Apple.

Yah, it's not like someone at Cornice is a liberty to say "we just struck a deal with Apple. We're going to supply them with a million of our new little hard drives to go in their new little iPod."
 
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