I was out X-Mas shopping yesterday. I'm in the market for a home XM radio system, so I had to go to Circuit City, Best Buy, and Tweeter. All were madhouses. Everyone was buying iPods and iPod accessories.
That being said, iPods were available, but running out. The Apple store had plenty left, but the 3rd party retailers seem to be running low.
Every year there is a hot, hard-to-get present. This definatley helps fuel sales. You're far more likely to buy one if getting it is a challange, due to the "hero" effect of being able to deliver. Look at the Nintendo DS this year. Impossible to get. Remember "Tickle-Me-Elmo", Cabbage Patch Kids, Transformers, PS2, etc. The list goes on and on.
Apple is being very smart. They are making as many iPods as they can, and are almost meeting demand. Post holidays will likely see the introduction of updated minis and a flash player, and this will renew sales again, especially for those who have X-Mas money to spend, and for those who may have missed out on getting one for X-Mas.
Rarity increases demand, demand increases sales. Sounds good to me.
-alywa