You should really look at the whole smear of things about markup. I used to work at a major electronics chain store. Let call it "lets lie" where the discount was 5% over cost. A usb cable used to cost me a whopping 1.27 vs 24.95 retail. A television I purchased 300.00 vs 599.00 a laptop was almost even markup as was an ipod (I think it was like 15 to 20 bucks off). So this shows what kind of prices the stores may pay for this. As far as multi-touch that is a unique feature that wows most people that use it. As far as I care, no matter what MP3/MP4 player people purchase, most people still call it an iPod.

You can't beat their already established place in the mp3/4 player market and this allows them to cash in on that niche.

In any business, if the Cost Of Goods Sold is much more than 50% of the selling price, there isn't much room left for the manufacturer and everyone down the chain to make any money.

What do people expect? That for a $300 item each person in the chain makes only a buck? If that were the case, no company would ever be in business and no products would ever be for sale.

Flight of the Conchords reference anyone?

Because R&D, product design, marketing, advertising etc are all free aren't they? The only possible cost Apple has to recoup is the physical materials and the labour to stick them all together.

crApple fanboys would buy it for $xxx.xx even if it cost crApple nothing to make.

crApple, crApple, crApple... and crApple

*jk I know all you crApple fanboys-gals are a few cards short of a deck, but I like you because its your ace I have up my sleeve.

Cheers!

"But there are some technical shortcuts used to save space, such as 0201 diodes and passive components in 01005 enclosures."

duh obviously. how did the inq miss this first time around? somebody's head should be on the line for this!!

Although this article has a humorous slant, I wanted to point out that you've neglected to include the cost of doing the research and development for the unit. The design didn't just spring into being one sunny morning in Cupertino. Then you have to pay for the upkeep of all those buildings, salaries and all those new black turtlenecks for La Grand Steve.

Doesnt really suprise me at all, all Apple gear is way over priced, but it looks so god dam cool