Toshiba had introduced a 0.85 inch 2 GB drive at 2005 CES in January, and it has just started shipping it to the market. Will this mean, a mini-mini iPod? Toshiba will begin shipping the 0.85-inch HDD in a 4GB capacity in mid-2005. Storage companies are seeing some serious demand for their drives, (even though I still wonder how much “net profit” is to be made here) as consumers keep spending on electronic knickknacks. IDC predicts that that DVD player shipments in the United States will increase from 32 million in 2004 to 38.5 million in 2008 and that portable flash and HDD MP3 player shipments in the United States will increase from 12.5 million in 2004 to 28.2 million in 2007. Consumers are also beginning to embrace time-shifting technology. IDC predicts that U.S. households with a DVR will increase from 6.9 million in 2004 to a whopping 27 million in 2007. How much of that upside will TiVo capture?