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Kwaad said:

The iPOD is so amazing, not becuase of the size, name, or usablity. It was the storage. TEH STORAGE!!!

(why does a 89$ iPOD have as much storage as a Wii?)


And there were other mp3 players with more storage at the time and to this day. They didn't compete in an arms race. They competed on usuability and user experience along with superior marketing.