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A wholly unique iPod has been able to stand above the prosaic fray of consumer electronics, bearing a higher price for its advanced features and brand name. But as more companies release players with similar features, the iPod risks becoming a commodity, with profit margins driven down by competition.
As a result, the company finds itself at a critical crossroads: It must decide whether to follow the historically proprietary approach of the Macintosh computer or the more flexible business strategy of its successful digital music player. Apple declined to comment on these issues but has been open about its grand ambitions for the little music player...
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