Apple has offered to recall and replace 1st generation iPod Nanos that have an apparent battery problem. According to the Apple website, some iPod Nanos might have overheating batteries, a problem that becomes more evident as they get older.
The problem only applies to first generation iPod Nanos (i.e. from 2005 and 2006) with specific serial numbers, as the defect is linked to a single batch of batteries from a specific supplier. It’s not clear what the replacement units will be, although it’s unlikely that Apple has a load of old first generation iPod Nanos sitting about so users might be forgiven for expecting some form of upgrade.
The old iPod Nanos in question have a black or white plastic front and a silver metal back, while later models have a metal front and back. Given that acquiring new customers is far more expensive than retaining existing ones, Apple’s move looks to be pretty smart.