With Christmas on the way, expect a flood of new models packed with features...with multimedia capabilities. We all know Apple does not play the competition game, as with the one button mouse mentality. Like or leave it. So I would not expect Apple to start adding more features.

Apple will rest on its laurals; in this case the iPod coolness factor, and end up getting left in the dust.

As an Apple observer that is my prediction, and I am not a proffesional so don't get you dander up.

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Apple will rest on its laurals; in this case the iPod coolness factor, and end up getting left in the dust.

Just because something has extra features doesn't mean that it's "competition" I think additional feature-laden "competitors" will only further legitimize the MP3 player phenomenon, and spur iPod's growth even more, rather than detract from it.

This is not a case of Apple going against equals. They've got the better OS (for the Player), the better user experience, the better jukebox, the better shop.

Some might disagree on one factor or another, but very few disagree that Apple has the best overall deal.

Buying something else than an iPod means you opt out of that experience. It doesn't mean you get a walkman of another brand.

So my take on this is that the Piper plays the tune.

Don't really know, but they won't sit still. Look at the rumors.

- 60 BG Color iPod just in time for Christmas to bump up the top end.

- Flash memory iPod/iPod min for the lower end.

- Opening up the iPod to pictures firm iPhoto (firmware update that will
screw Harmony?)

That is enough to cause moans (and price cuts) from the competition.

Add to that the potential for another Cram & Jam type of promotion and Apple is going to be very strong this Christmas without considering the impact of the new iMac. No way are they sitting on their bum.

Apple is not resting on its laurels. It has been out-innovating the others since it entered this market and will continue to do so. 82% of all hard-drive based players and still growing!

At the top end, it may begin to add other non-fully-audio extensions like photos but with the focus on slideshows with music on your TV/display. At the other price points and with the minis, it may continue to focus on audio - but possibly expand into other types of audio content (podcasting, satellite radio?). There's announcements coming soon - likely to coincide with the iPod for PC anniversary.

This is because Apple fully understands the purpose of the iPod given its size and portability. Portable Media Centers are a completely different category/market that Apple hasn't chosen to enter yet.