That's load of horse manure. Your circular thinking has brought you to a false conclusion. The market is buying MORE iPods, not less.
Apple stock split week before last. I bought some shares less than two years ago, and they are now worth 685% of what I paid.
Your opinion is yours. Most folk apparently do not agree, and have made Apple profitable... by buying iPods. With the Mini, and the stable G5 desktops and servers, and the G4 PowerBooks (hopefully soon to be G5) Apple is hitting hard, at all markets!
A lesson I learned on value... picture a balance scale...when the money on one side is overweighted by features and benefits, it tips, and a value is established. A sale is made. That is easy to verify. If no sales, then no value...if lots of sales, lots of value... in the eyes on the ones that count, the buyers!
My stock reflects the real truth!
So. That does not mean the Ipod is not overpriced and that was my only point. People have a history of buying overpriced products if they are hyped - just because people buy it does not prove it is not overpriced.
Your opinion is yours. Most folk apparently do not agree, and have made Apple profitable... by buying iPods.
I made no comment about Apple profitability - go back and read what was actually said and try again - you have gone off half-cocked.