The phone was equipped with a 128-megabyte Sandisk TransFlash memory card--just one-quarter the capacity of Apple's smallest iPod, the 512-megabyte shuffle, which holds about 120 songs.
But then we kept reading the press release and realized that they're not exactly introducing a new format they're more or less co-opting SanDisk's TransFlash card standard.
The new microSD card is going to be fully compatible with and have the same exact dimensions as TransFlash (both measure 11mm x 15mm x 1mm in size), and SanDisk has already announced plans to "transition" its TransFlash line to the microSD standard later this year.