To amplify this point, remember that when the iPod was first released, it was relatively expensive at $399 for the 5 GB model. Today they have entries at every

To amplify this point, remember that when the iPod was first released, it was relatively expensive at $399 for the 5 GB model. Today they have entries at every price point, starting from the $49 iPod Shuffle up to the $399 64 GB iPod Touch. Apple definitely can and will compete on price.