History of iPod Price Decline $80/GB to $7/GB

While the author focuses soley on the decline of per gigabyte prices, he ignores the other market forces at work. Namely that large music collections require an intuitive way to navigate them (i.e. good UI), Apple's DRM and per song pricing (vs. monthly pricing) are strongly preferred by consumers, and that as HD prices increases, so will MP3 bitrates. The longer Apple can dominate the market the more lock in they will create as people who buy songs from iTunes have to buy Apple MP3 players in the future in order to listen to those songs.

read more | digg story