The 1 GB model was advertised as capable of holding up to 240 songs (based on Apple's estimate of four minutes per song and 128 kbit/s AAC encoding). The iPod Shuffle series also lacks a real-time clock and does not therefore update the 'Last Played' value in iTunes. Due to the codec not being ported, it is incapable of playing Apple Lossless and AIFF audio files. It lacks a display, the trademark click wheel, playlist management features, and the games, address book, calendar, alarm, and notes capability of larger iPods. In 2005, peak iPod first-generation Shuffle production occurred at a hundred thousand units per day, at the Asus factory. The STMP35xx SOC and its software was the most fully integrated portable MP3 playback system at release time and SigmaTel was Austin's largest IPO (2003) capturing over 60% of flash based MP3 player world market share in 2004. It used the SigmaTel STMP35xx system on a chip (SOC) and its software development kit (SDK) v2.6, a flash memory IC, and USB rechargeable lithium cell. Released on Januduring the Macworld expo, the first-generation iPod Shuffle weighed 0.78 ounces (22 g), resembled a pack of chewing gum sticks, and was designed to be easily loaded with a selection of songs and to play them in sequential or random order.

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