Apple to ditch 1GB shuffle in favor for 1GB iPod nano?

The Register reports Apple may soon drop the iPod shuffle 1GB and replace it with a 1GB iPod nano.

Will a 1GB Nano replace it? That depends on how the lack of 1GB Shuffles played out, we suspect. If it drove buyers to choose the more expensive 2GB Nano instead, there's little need to fill out the line with a, say, $150 1GB Nano. If buyers took the cheaper option, then it may well make sense to launch something only slightly more expensive than the $129 1GB Shuffle but with the clear benefits of a screen and the classic iPod look, something like a 1GB Nano.

Or it's possible that Apple is planning to launch a lower capacity iPod nano to clear the gap between the $199 iPod nano 2GB and the $129 iPod shuffle 1GB.

And there's even another rumour:

Perhaps Apple will use the opportunity to cash in on claims it's preparing a red iPod - made by U2's Bono, allegedly - to raise awareness of Aids in Africa... Imagine it, a 1GB, 'limited edition' red Nano. How will that fly off the shelves?