Seagate's rolling out a new 12GB 1-inch drive called the ST1.3 that's 23% smaller than their current 1-inch drive yet squeezes in 50% more storage capacity. They're aiming these drives squarely at mobile phone makers, so brace yourselves for announcements of a whole bunch of 12GB cellphones in the weeks and months after Seagate starts shipping these things Q3 of this year.