Seagate hoping to get 120GB drives into the iPod?

If you're as burned out about iPhone rumors as we are, maybe rumors of new storage capacities (finally) coming to the iPod can grab your attention. Engadget found some comments in Business Week from Seagate CEO William Watkins on the state of small-format storage, including whether the Flash memory craze has fazed the company and what's coming down the pipeline in 1.8 inch hard drives. Apparently, the company will have a 120GB 1.8 inch hard drive ready for the December quarter, which would be ripe for the iPod - as it's been stuck at 60GB since Fall 2004.

This is obviously no indication of whether these drives will actually make it into the iPod, but it's great to know they're available, which means there's a chance. Hold your breath at your own risk.
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