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I posted this at RedFlagDeals first -- but I figured it merited a mention here too:

Just a heads up Apple.ca/store just dropped their prices on the iPod Nano (2G)refurbished units.

2GB (silver only) is now $125 -- retail $169

4GB (all colours, at least at time of posting) are now $169 -- formerly $199 refurbished, and still $229 New.

and the best deal now 8GB Black is now $225 -- used to be $249 -- retails for $299.

Curiously, they didn't lower prices on the Shuffles or the Videos. Maybe they've got a big backlog of Nanos to clear out? :D
 

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I wonder if there will be a capacity boost in the near future. Personally, I don't think it'd make sense as it would have to be a weak upgrade -- say, topping out at 12GB. That's all well and good, but it's not going to really seem that impressive to someone who just bought an iPod last year.

My tentative guess is that Apple will wait until it can launch 16GB iPod nanos (or their equivalent) in the fall, and that it will also squeeze in a larger screen and/or tack on video support.
 
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