There's a bit behind the design, but mostly it's for fun! Let's be real: HiFi is our "grownup" version of toys. It's what we spend our extra money on to make ourselves happy. It's supposed to be
fun; isn't it enough to be professional in the rest of your life? I know it is for me...besides, we think that the flask shape is just "fun" enough that it'll pique your friends' interest when they see it. After all, it's not like it looks like an actual toy; we think it's *just* fun enough to be novel, and real leather plus finely machined metals keep it from looking or feeling like any kind of toy at all. When you see and hold it in real life, you know it's a serious product, with enough flair to be more interesting and stylish than a plain old square slab.
I think you'll also find that it's pleasantly ergonomic and sits more stably in the hand than the flat backs we're used to on smartphones and MP3 players. Between the nice arc and the real leather, it's really very easy to hold and feels great in the hand.
It's PERFECT for pockets! The arc sits comfortably against my leg and despite it's thickness, I don't notice it any more than my Nexus 5 in my pocket. It's actually more comfortable than a smartphone when I sit down with it in my pocket, because it hugs the curve of my thigh (this is getting a little weird but **** it) really nicely. I actually feel it move less than my wallet or smartphone; I suppose that has partly to do with the tension created by the thickness (it's about twice as thick as my Nexus 5 laying flat, a bit bulkier than an iPhone 3GS), but then again, if it didn't have that curve, the edges would be rubbing up against or digging into my leg in slacks or slim fit jeans, respectively.
It also sits flat perfectly; the screen is on the rounded edge (yes it's a curved display

), so the concave part faces down and it sits perfectly on flat surfaces...and sofa/lazyboy arms

Take that, slippery slabs!
Here's the thing: it's EXACTLY all of those things you're saying you'd want (well, micro SD to save space), but with a more comfortable AND fun shape.
I'll toss in the idea for multiple card slots; if it makes sense with the internal architecture and production process, we'll do it.
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Just wondering, why the flask design? The flask is cool, but seems more like a novelty item than a serious, professional high-end player. The design, to me, doesn't say "professional." I would think a regular (Walkman/iPod Touch) design would be more popular, as well as less awkward; the current design seems like it could be harder to put in a pocket or lay on a desk. Something like the iPod Touch, running Android, having support for Hi-Res, not being as costly as a Walkman, a regular sized SD card (or maybe 2!), and a good internal DAC/Amp would be pretty much what (I assume) everyone here would enjoy. There's the Calyx, but again, insanely priced. Your product has great pricing for what it is. But your current design, with expandable storage and in a more conventional shape, would be a MASSIVE hit. I think this is something that should really be considered for the next iteration of the product.