A few months ago Tim Cook went on record saying he "wasn't going to leave any price umbrellas". As Ryan Jones (via Forbes) observes, "a price umbrella is the co

A few months ago Tim Cook went on record saying he "wasn't going to leave any price umbrellas". As Ryan Jones (via Forbes) observes, "a price umbrella is the cover that a market leader provides other companies by establishing a premium price for their products. Competitors can enter the market at lower price points and disrupt the leader’s dominance, in Jones words, 'from the bottom up.'" http://www.forbes.com/sites/anthonykosner/2012/07/22/apple-will-sell-a-smaller-ipad-or-be-disrupted-from-the-bottom-up-by-google-and-amazon/ http://www.forbes.com/sites/anthonykosner/2012/07/22/apple-w... Per this logic, $299 seems like the best bet. This is $100 lower than the point where iPad and iPod prices presently converge ($399 for either a 64GB Touch or a 16GB iPad 2). This move would also mean dropping the price of the 64GB Touch to $299 (where the 32GB model currently sits) and dropping the 32 GB to $249, which is where you find the 160 GB iPod classic ($100 above the new nano).