New full size iPods coming

With the Nano out for less than a month, there are reports of new full size iPods on the horizon. The new iPods will have click wheels by Apple and will be smaller in size compared to previous iPods of similar storage size. Most likely Toshiba's new 1.8" HD's will be used in 40Gb and 80GB capacities. This will make the 40GB HD 3mm smaller than the previous 40GB model. Other functionality will also likely include video playback functionality, which is probably the reason for the recent public posturing between Warner Music and Apple regarding iTunes prices. They are probably in negotiation over music video prices and Warner Music wants to get some concessions on iTunes song prices before they give Apple music videos.

Looking at inventory levels, 20GB, 60GB iPods are low implying that Apple intends to announce new products soon.