Samsung has introduced a 160GB-capacity 1.8in hard drive that could be used in portable devices, including iPods.

Samsung's new Spinpoint N2 160GB drive runs at 4,200rpm. 160GB is sufficient for 40,000 MP3 files or 100 HD quality movies.

The company expects the new drives to see use in the video camcorder, MP3 and PMP markets. Apple already deploys 1.8-inch drives inside its existing iPods.

“The 1.8-inch HDD market will grow at a tremendous pace with annual sales expected to increase up to 65 per cent by 2010 as consumers demand smaller, more compact technology devices,” said Andrew Higginbotham, director of hard drive sales and marketing.

The company promised it will continue to develop breakthrough storage technology for the evolving, feature-rich demands of the mobile consumer and entertainment markets.

There are also rumours that Apple plans to move to flash drives in all its iPods.