Hmm. Everyone's abuzz about Apple's pending release of "mini-iPods" with 2-4GB drives and a smaller formfactor. Most of the rumors suggest a $100-$200 price point for the 2 GB model.
MacRumors notes that the 3 current iPod models are 3 of the 5 best-selling MP3 players:
- 10GB iPod ($299)
- 128MB Digitalway ($140)
- 20GB iPod ($399)
- 128MB iRiver ($119.99-$139.99)
- 40GB iPod ($499)
Given this, I'd be surprised if Apple released the 2 GB model for under $150. I mean, given the choice between a 128 MB flash player for $120 and a 2 GB hard drive player for $150, who'd buy the flash player? Since no one really knows where they're getting their drives from, it's hard to see where they're going to find a drive cheap enough to let them sell for under $250, but they've pulled rabbits out of that hat before.