Iomega yesterday unveiled a new portable hard drive, potentially signalling the end for its Peerless product.

The Iomega HDD Portable Drive, available in 20GB and 40GB capacities, resembles a Peerless cartridge but is not compatible with the Peerless system. While Peerless is modular, the HDD is more of a standalone device.

HDD effectively wraps everything you need into one unit, for about the same price as a Peerless disk. Iomega has strongly hinted that if the price of Peerless can't be reduced, its days are numbered.

This is particularly sour for Iomega since it dumped its HipZip MP3 player, based on the unpopular Click drive, in February.

Peerless is a great system, separating the disk, docking station and interface so users could mix and match their own specification. But, it's expensive — a 20GB disk will set you back around £152, with the base-station coming in at £197. The 20GB USB 2.0 HDD only costs £161, with the 40GB drives priced at £263 and £280 for the USB 2.0 and Firewire units respectively.

Iomega also yesterday unveiled the larger, in both size and capacity, HDD External Drives priced at £237 for a 80GB USB 2.0 unit with 120GB drives costing £323 and £340 for the USB 2.0 and Firewire versions respectively.