ok, Iv had enough of people trying to say that the apple is trying to keep the ipod and iphone "different enough." How do you know that? you have no proof, just make a random claim that they make more and viola there's your proof. here's what I think is going down... The iPhone cost more to make with the cellphone components while fetching them a larger price... when apple started looking for a carrier, they did a lot of looking and bargaining because phone carriers would not bend to apples will (wireless music purchases that the phone carrier makes $0 on.) finally they settled with ATT and sold their soul to contracts. Now apple was contracted in with ATT which meant that only a fraction of the potential US market would be able to buy an iphone. To get as widespread distribution and continued sales apple is thus forced into lower and lower prices that damage their high priced snob-effect image. (snob-effect is an economics term for status symbol.) in their infinite wisdom Apple made the iPod touch too... (no not the iTouch, hehe that name irks me) an iphone that they could charge as much as they wanted to the masses. unrestricted by contracts and att subscribers this "iPod" could dominate the US. 2nd gen iPodtouch saw mic capabilities and hidden bluetooth, not to mention a speaker. a little iphone like, no? who knows what's next in the 3rd Gen Ipod but just look at the iphone/pod OS 3.0 IT ALOWS DRIVERS FOR EXTERNAL DEVICES!!! that means that a small 3rd party add on could give all ipods mics, gps, hell even a cell antanae. look, cell phone carriers sell cell-data-modems for laptops im sure they would love to get in ont the ipod game... not to mention, voice plans could easily be squeaked in there. SO, simply by giving the tools Apple is enabling 3rd parties to do what it can't, Make an iPhone for other carriers. Now for the reality check. Just like most people my facts are not solid by any means. There is the possibility my assumptions about the apple cost/revenue structure is total sh*te. perhaps the iphone does make THAT MUCH MORE. but I dont know and neither do you. Thats my my theory and its pretty damn good. If you find any truth in it, then dont go around saying iphone features will never be put in the iPod, it bugs the hell out of me. You, and I, really have no idea what the apple marketing objectives and business model look like. ------------------- EDIT: look, at this point, apple wants global market dominance. The ammount of moolah they make from the app store is much more then some silly ATT subsidy. if they got a million new customers because of the ipod=iphone thing and over time they all purchases $20 worth of apps, that would be six xtra mill in pocket. now, ass the app store expands people are bound to buy more and more apps. more install base= more developers and programs. at this point, no one sees app store sales passing pc software industry but who knows. when developers like discreet, final cut, and adobe start making apps for the ipod to interact with their pc/mac counterparts the app store could see much more high priced app sales, again more rev for apple. so imagine the day when people spend $20 per app, (given the apps have to warrant it, and we are far from that) people will soon be spending upwars of 100-200 on software every year! for our new million subcribers that would mean 30-60 million a year for apple.... just saying look at the potential, no way is it a reality, yet.