iPod is a bargain, depending on how you look at it

While pundits may criticize the relatively high US$399 price tag of Apple’s iPod, it’s difficult to call the device’s value into question. The iPod’s 5GB drive is a tiny, 1.8-inch Toshiba drive that sells on its own (as a PCMCIA card) for $399 (although the MSRP is apparently $499). Similarly, SmartDisk’s tiny FireFly FireWire drive, which uses the same drive, will sell for $399 when it ships. Given the technology and compared to the prices that related products sell for, Apple’s iPod becomes a downright bargain. For those who quip that 5GB isn’t enough, Toshiba plans on releasing a 10GB version of the drive next year; you can expect Apple to follow suit when it does.