Apple is preparing to release an updated version of the iPod Nano this fall and some reports suggest that Apple can afford to increase the capacity:
Gartner forecasts that a 16Gb (2GB) device will be available in the third quarter for about $30, down from its current price of about $35. Due to Apple’s procurement power and investment, it is conceivable that it could get pricing for a device at $25 or even $20. This pricing would enable capacities of 12GB, leaving enough room for the remaining component and manufacturing costs as well as Apple’s margin, while still reaching a $250 price point.
This will be nice for those people looking to purchase iPod Nano’s around the holiday season but it could also result in a short supply. With the rising popularity of portable music Apple needs to make sure that they can properly stock store shelves with the MP3 players that many people were scurrying around to find last holiday season. Hopefully this year Apple will plan ahead.
News Source: Mac Rumors