Originally posted by brywalker
Ok. It was a somewhat flawed analogy.
Think of it this way...
How many homes have televisions? How many homes have more than, say, 3 televisions?
There should be at least one iPod for every home that has a computer. And at $250, there is no way they can ever hit that number.
And, feakbeak, that is the point. $250 is a lot in disposable income for a music player. Companies have to shoot for the bottom rung as well as the high end in order to get ahead.
Who ever heard of Apex before they started making sub $100 DVD players? Now you can get them as low as $30, and even though the cheaper ones aren't the best quality, its no wonder that they are one of the top selling players in at least the US. Some people can't justify the cost of getting a $1200 Pioneer Elite DVD player. And thats fine. But Pioneer also has one thats like $150 for people that can't see themselves spending $1200.
I know I am really beating a dead horse here. But the point is that Apple isn't going to be around another 20 years unless they start catering to the other 97% of the computer market and the other 70% of the PDP market. People are still buying portable CD players, not because they are better, but because they are CHEAPER.