The new chip that will let an iPod store 500,000 songs

Mobile phones, iPods and other consumer devices may soon be able to hold a hundred times more information than they do at present thanks to a breakthrough in storage technology.

Scientists at IBM say they have developed a new type of digital storage which would enable a device such as an MP3 player to store about half a million songs - or 3,500 films - and cost far less to produce.

In a paper published in the current issue of Science, a team at the company's research centre in San Jose, California, said that devices which use the new technology would require much less power, would run on a single battery charge for "weeks at a time", and would last for decades.

So-called 'racetrack' memory uses the 'spin' of an electron to store data, and can operate far more quickly than regular hard drives.