A recent post from an anonymous source at iPodlounge claims that the previously rumored Flash-memory based iPod due by Christmas will have controller chips provided by SigmaTel. If true, these new iPods are expected to be out by the Christmas shopping season of 2004, adding a possible $99 price point to the iPod family.
These rumors come in addition to others about a possible new 60 GB color-screened iPod capable of showing a photo slideshow of synced or downloaded photos. Pricing for the color 60 GB model is expected to be set at the previous-generation high point of $499.