If Zen is $300, then you KNOW the iPod will be around $350 - maybe more. Apple is notorious for their insane pricing. The iPhone only costs $250 to make parts and labor - and I think that could be reduced....and they still sell it at $500 to $600 for over a 50% return! Apple's greedy....
Compared to Microsoft who takes a hit the first couple of years on the hardware to get people to buy into the applications of the device (i.e. Xbox and Zune). Xbox is just breaking even now and Zune is in the red and is expected to stay there for a while....
