Apple has been pretty much headstrong with its iPod success. The moment you see any competition, all this will change. I see that Dell etc. are coming up with cheaper music players. Ofcourse, they lack the "coolness" of the iPod ... Although I've been fascinated many times by Apple powerbooks, G5s etc. but I will NEVER buy one for myself. Its just too gaudy for my tastes!

Historically, some of the most sucessful products have been those which allow third party contributions to content: PCs, radios, TV and so on. But its extremely challenging to think of third party software contributions to consumer electronic devices, which is what an iPOD is in its current avatar (correct me if I am wrong, I dont own an iPOD). IMO There exists a market for an iPODish general purpose computing and communications device, and when that comes on the market Apple will once again see its fortunes decline.

Waise, I dont know why you find it that surprising, Apple has always been a verticaly integrated company, they sell the hardware AND the software that goes with it.