The device has an impresive database,as it can read several formats, including AAC, MP3, Apple Lossless, AIFF, WAV and MP4.Apple started working on the iPod Nano's design only nine months before its release date.The player came out only in black and white versions,and only in two sizes:2GB and 4GB,which could roughly store up to 500 and 1000 songs. On February 7,2006, Apple introduced a few updates in the iPod Nano line, including the iPod Nano 1GB version which could roughly store 240 songs.
Some accessories were also presented,such as silicon tubes that would add some color to the device,or a lanyard-earphone accessory that helped users avoid earphone cords from tangling. Instead of low-cost custom developed chips, Apple used general purpose integrated circuits.The design however,increases the number of electronic parts and the price as well.Japanese engineers estimated the component value of the iPod Nano 2 GB version around 185-227 US$,and compare to the retail price of $183, you can say it is a pretty high price.
The iPod Nano helped Apple record earnings of 1 billion dollars as the public response to this device was more than positive and the Nano sold its first million copies soon after the release date.Even tough it was a risky decision,replacing the iPod Mini with the iPod Nano was a necessary move, as Steve Jobs stated, because competitors were beginning to catch up with Apple's device in terms of design and features.
The move turned out to be a greater than its predecessor. Even so,it only took a few days before the complains started again, as some clients were unhappy with the fact that their Nano's screen got extremely scratched due to some microfiber cloths, or because it suddenly cracked without provocation. As Apple would confirm,this was due to a small percentage of Nanos that had a faulty screen. Apple also agreed to replace all Nanos found in a a cracked screen,but did not admit that the iPod Nano had a less resistant screen than the one presented by other iPods.
Since then,the company started to ship the iPod Nanos with a protective sleeve to prevent early display damage. In October 2005, a lawsuit was filled against Apple.The reason of this lawsuit was the excessive scratching of the device during normal usage, as lawyers would state that the iPod Nano scratches until the screen becomes unreadable and this is believed to be against the consumers' rights. The lawsuit also specified illegal earnings of Apple from the iPod Nano.There were some other incidents as well,as an iPod Nano caught fire while it was connected to a PC,and another Nano set a man's trousers on fire in an airport.