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The market is buying MORE iPods, not less.

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.

People have a history of buying overpriced products if they are hyped - just because people buy it does not prove it is not overpriced.

I started in retail in 1964. By 1970, I was a manager. In 1972 +/-, Texas Instruments began marketing handheld pocket calculators. I spent a lot of time figuring, but the things debuted at more than $200 in 1972. Late in the summer, there was a sale at $125, but it was still too much for my pockets. Then it dropped to $99.95, and I was so tempted, but still couldn't part with the money.

Just before Christmas, it went on sale for $75 and I snapped it up!

It was a brick, but fit in a shirt pocket. It had to be plugged in every night to keep the red LED's showing, but it did what I expected it to do.

Value is when people part with their money. Your conception of "they spend too much because of hype" is inconsistent with the facts of history!

Apple pays the Chinese around $60 for the unit, I believe. Anything you pay over that is spread afar! It ain't just Apple that gets a bite! The Japanese use them as jewelry, and they have access to great electronics! And, they probably pay more..