If a 4Gb iPhone costs $500 with phone technology in its guts, how much would a unit cost without the phone innards? A wide-screen, wifi-enabled, web-browsing, email-checking, video-watching, touch-screen-interfacing iPod (and gateway device to the phone version)? Cause it sounds to me as though they’d sell a zillion of them.
I assume that you already have your answer, but the answer is $300.
http://store.apple.com/1-800-MY-APPLE/WebObjects/AppleStore.woa/wa/RSLID?nnmm=browse&node=home/shop_ipod/family/ipod_touch