The Apple iPod Nano 1G

In the Fall of 2005 the Apple iPod Nano was released.
What a huge event! You would have thought sliced bread had been invented!
People came out in droves to obtain the unit.
The flash memory based player that featured 2GB and 4GB of memory. There was literally a frenzy for the units.
Sales on them went through the roof and supply could not keep up with demand. As opposed to the Hard Drive Based player this one has no moving parts. No moving parts means longer battery life and a smaller, lighter unit.

On February 7, 2006, in apparent response to consumer demand for a less expensive iPod with a screen, Apple announced its most affordable iPod nano yet, featuring one-Gigabyte (1GB) of storage capacity. Following in the footsteps of the earlier 1GB iPod shuffle, the new iPod nano debuted at a price of $149, and holds approximately 240 songs. Like other iPod nanos shipped today, it is packaged with iTunes 6.0 and a protective case, which were not found in the original nanos’ boxes.

Cosmetically, the new nano is almost identical to the 2GB and 4GB models.
The most notable difference is shown above; though the resolution and screen sizes remain the same, our 1GB unit (left) has modestly less impressive backlighting than our earlier 2GB and 4GB models (4GB shown, right).
In person, the 1GB nano’s screen is a hint less bright, and has a slightly pink tint, rather than the “blue-white LED backlight” listed as of the date of publication on Apple’s web site.
It’s unclear whether Apple is now using a different screen supplier for all iPod nanos, or whether the lowest-priced nano has a lower-quality backlight or display than the others; in any case, while not a positive change, it’s small. Less surprisingly, Apple has also updated the nano’s rear capacity label to read 1GB, and the trademark/copyright date to read 2006 rather than 2005.

Though their storage capacities are the same, the differences between the 1GB iPod nano and the 1GB iPod shuffle are significant - a fact reflected by Apple’s simultaneous drop of the 1GB shuffle’s price to only $99.
For the additional dollars, you get a color screen with menu, lyrics and photo navigation abilities, the iPod’s superior Click Wheel controller, compatibility with the vast majority of iPod Dock Connector accessories, and a more stylish body in your choice of white or black colors.
You lose the shuffle’s simple USB-style connector, included lanyard necklace, less complicated interface, and - controversially - a SigmaTel audio processor that some users believe provides superior bass performance to the audio chip found in iPod nano. Additionally, though the shuffle shows scratches, they’re not nearly as visible as scratches are on either nano’s clear acrylic and glossy metal bodies - an issue that, despite the contrary feelings of millions of satisfied nano customers, has already led to lawsuits over nano’s durability. You’ll need to decide which design is better for your needs.
Even with the introduction of the iPod Nano 2G the original still sells very well.
iPod Nano Cases at Gordys Gadgets

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