Mix: Flash prices, iFox, Brasso, USA Today, Sony PSP

Analysts report that the iPod nano, which can store more than just music files, is driving down prices of portable USB flash drives, memory cards and MP3 players.

Volkswagen is releasing a limited edition “VW iFox” in Europe that is equipped with a Blaupunkt Calgary MP3 radio, an iPod adapter and a 2GB iPod nano with a VW logo engraved on the back. [via Engadget]

Blogger Todd Dailey has posted an article on how to remove scratches from your iPod nano using a $4 can of Brasso.

USA Today’s Edward C. Baig gives the iPod nano four out of four stars and writes: “I wanted to spend meaningful time with the device before weighing in with a review. I wanted to make sure the Nano’s beauty was more than skin deep. It is. There’s a reason the Nano has rapidly emerged as Apple’s latest status symbol of choice: It’s a digital music player priced at $199 to $249 that is actually more affordable than its larger and more capacious siblings.”

Piper Jaffray analysts are predicting that Sony may challenge the iPod with the launch of a next generation PSP with an integrated hard drive to store music and videos.

Latest News