I agree with the strategy of selling iPods cheaper. It will come down to market share as has always been proven.
iPods will have to be competivtive in price to the new players coming out, Dell inparticular.
iTunes is another misguided effort. Mistake: price. $.99 for a song is a rip-off and sales prove it. The price should be $.50. Compare a digital file from iTunes to a CD.
CD: $15
iTunes Album: $10
but, iTunes has cheap distribution, no manufacturing, no art work, and sound quality is POOR (resampled, then compressed) when compared to a CD.
Truth is, the record labels will control prices. It's a shame the industry settled on such a high price.
Cool stuff, but a bit pricey. I have the iPod, but I will not use iTunes store at unfair prices.
What Apple Won’t Tell You: Get An iPod for $7