On September 12, 2006, Apple updated the Nano line. The second-generation Nano features scratch-resistant, anodized aluminium casing like the earlier Mini's design; the multiple color choices (silver, green, pink, blue, and black) mirror that of the Mini as well. However, unlike the second-generation Mini, the button labels do not match the color of the Nano. Instead, they are gray, like the first-generation Mini, except for the black iPod which has a black click wheel. The second-generation Nano features "a brighter, more vibrant display", a battery life upgrade (from 14 to 24 hours), and doubled storage sizes with the new 2, 4, and 8 GB models (compared to the previous 1, 2, and 4 GB models). The second generation iPod nanos also support gapless playback of audio files, a new search option, and a 40 percent brighter screen. The 2 GB model was available in silver only. The 4 GB was initially available in green, blue, silver, or pink. The 8 GB model was initially only available in black but Product Red was later added. Apple claims that the second generation iPod nano's packaging is "32% lighter and uses 52% less volume than the first generation", thereby reducing environmental impact and shipping cost at the same time.
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On October 13, 2006, Apple announced a special edition iPod nano Product Red, with a red exterior and 4 GB of storage. For each red iPod nano sold in the United States, Apple donates US$10 to the Product Red initiative, while retaining the regular price. On November 3, 2006, Apple introduced a red 8 GB model, due to "outstanding customer demand", while also retaining the same price point of the black model with an equally large storage capacity.
On December 26-27 2006, Apple Computer's website and servers had crashed due to people downloading iTunes software since so many iPods were sold that Christmas season.