There has been much discussion of why Apple would produce a low end flash-memory based player. As many have noted, although the iPod shuffle has Apple design fingerprints all over it, technically it doesn't offer all that much compared to competitors' offerings. The only unique technical feature is the ability to natively play iTunes-purchased tracks.
But the shuffle does have that low, low priceof USD$99. And as many current iPod owners have discovered, the full iPod has a high price that can end up being paid more than once. Reports from the U.S., Canada, Britain, and Australia all show that iPods can make the wearer a snatch theft target. Those distinctive white headphones signify your membership in an exclusive club — a club that means you are carrying USD$400 worth of gear in your pocket.
That makes the iPod shuffle uniquely valuable to all existing iPod owners. Take a close look — the headphones on the shuffle are the same cool looking white ones you get on the big iPods. But tucked in that shirt or jacket pocket, the average snatch-and-grab thief will now find only a 99 dollar lump of plastic the size of a package of gum, with no display, voice recorder, or FM radio.
Voila! By reducing the value in the pockets of people wearing those distinctive headphones, Apple has reduced the value associated with mugging someone to get at that pocket. The risk is now much less likely to be worth the reward. The security of the average iPod owner is thus enhanced.
Rejoice, iPod owners! By creating the lowest priced iPod ever, Apple has lowered the price of admission to the club. Now the high end iPod owner can walk safe again, hiding in a crowd of low-priced decoys.