“Engineers working on the hardware design of Apple Computer’s second-generation iPod nano are facing several technical challenges, but it’s currently unclear whether the obstacles will delay the player’s release,” Prince McLean reports for AppleInsider.

“Earlier this week, American Technology Research analyst Shaw Wu said Apple’s decision to switch system-on-a-chip (SoC) suppliers from PortalPlayer to Samsung has formed complications that could set back the release of the much anticipated iPod by as many as three months,” McLean reports.

McLean reports, “However, over 90 percent of the defects in the project are said to have been ironed out at this time. Therefore, it may be too early to tell whether the remaining issues will force Apple to delay the nano’s expected manufacturing ramp of late August… Optimally, Apple aims to begin shipping the new players by the second half of September, reliable sources have said.”

More in the full article here.

[Thanks to MacDailyNews Reader "LinuxGuy" for the heads up.]

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Related article:
Analyst Wu: New iPods may face delays of as much as six months – June 28, 2006