It will be interesting to see if the cheap Chinese products can compete on storage space, features (such as video), reliablility and a non-sucking interface for much less than what the Nano sells.
I different kind of market -- I was waiting for a subway a year ago and saw a high school kid drop his CD player. Basically it seemed to crack the door. The kid unhooked the speakers, took out the batteries and CD, then threw the thing away. A week later I saw CD players for twenty-something bucks. Disposable electronics.
Do you have any doubts we'll see a Chinese version of the iPod Shuffle for $24.95 within a year?
Some Chinese ripoffs have been showing up on EBay the last couple of weeks. Some sellers point out they are not "Real" Apple Ipods, some may not. The "Shuffle" model seems to be the first one they are ripping off:
http://cgi.ebay.com/Like-IPOD-Shuffle-512-mb-Brand-New_W0QQitemZ5838342268QQcategoryZ48680QQrdZ1QQcmdZViewItem
AND:
http://cgi.ebay.com/MP3-Shuffle-99-the-same-as-Ipod-Shuffle-512MB_W0QQitemZ5838894497QQcategoryZ73839QQrdZ1QQcmdZViewItem