If Prudential Equity Group analyst Jesse Tortora is correct, they just might. According to an Apple Insider report, Tortora stated the following:
“We believe that the video iPod transition from 1.8-inch hard disk drives to NAND flash memory may occur as soon as late 2007,” Tortora wrote. “Our checks indicate that Apple is considering canceling its next generation HDD-based iPod design, with the form factor refresh involving a move to NAND flash memory.”
There are many benefits to doing this, from creating thinner iPods, to increased battery life, but flash memory is more expensive than Hard Drives…so they may be jumping the gun a bit here.
I think that Flash-based Video iPods are inevitable, but I’m not sure we’re going to be seeing them this year.