So let me see if I have this right.
"Apple is charging too much. They will fail."
Unless the price comes down, it appears that most opinions is yes.
"Yes, other manufacturers are charging the same thing, for the same specs minus the aluminum case, Apple brand name and iTunes compatibility."
It is only speculated by analysts that ONE other manufacturer "will probably" be charging the same price.
"Yes, it's true, nobody else is offering this product at all. Others are offering Flash players with 1/16th the capacity for $50 less."
There is a huge market for flash players because of the low price.
"But that Rio - I don't care what they SAY the price is, it'll really be cheaper!"
Even if the Rio offically announces the price at $249 (which they have not done yet), it will be all over the web at 10-25% lower than MSRP. Apple strictly prohibits resellers from offering such discounts, that would cut into Apple Store sales. (this is one of the major reasons Dell is not selling iPods anymore)
"And Apple cannot possibly sell anything for more than another company sells the same product for! No, Apple must be cheaper than everybody else!"
Apple has proven they can sell products at higher prices that the competition, but to an ever decreasing minority.
Remember, a superior product does not sell on its own. Microsoft has dominated by marketing an inferior product, just look at what they did to Novell over the last 7 years.
Apple needs to jump on the marketshare they now own in the music market to get as many devices out there as possible, even if they make no profit on it now, they will gain marketshare in other areas that will.
Take this scenerio as an example:
A female CEO of a large corporation recieves a pink Mini an a valentines present from her husband, she loves it. She shows it off to one of the IT geeks who seceretly owns a Mac, but the was afraid to speak out since the corporation is all Windows. He uses that as an in to get the CEO interested in other Apple products..(xServe, Powermacs...etc). Wow, she had no idea that Apple made products they could use. She tels the geek to get an Apple Corporate sales rep in (not sure if they even exist). You just have to get the right person interested and the more devices are out there, the more chance of this happening.......