we had FM in mobiles for years (in europe).
we still have compact FM players for years.
since Apple have four iPod lines (shuffle, mini, classic, photo)
to fill the price variations from 99 to 499
they could create new line(s) of products to be presented for more customers.
the trick is to repeat success after success
hype after hype
impress fans, press and general Joe/Jane
Bill Gates is Right, and Wrong About The iPod