So they fully admit that the iPhone "cannibalized iPod sales" but then said that they "didn't count the iPhone because the product is also a wireless handset." So all this is saying is that among mp3 devices sold that weren't also phones in the week of Aug 23 - 30, Sony had 43% and Apple had 42.1%, with no mention of what the +/- error was in the survey. While this might be an indication of a trend, it is also very likely to be statistically insignificant. But that doesn't make as interesting a news story.
Something I just thought about...I wonder why Apple/Sony/Microsoft/et al haven't tried the "console strategy" with music players. (The "console strategy" is where gaming console makers sell their hardware at an artificially low price, then make up the cost from software sales).<p>For example, Apple could tie an iPod to an account so that <i>all</i> songs are $1.29 on the iTunes store (instead of varying prices), then sell the iPods for very cheap. I think it would get more people hooked on the cheap up-front price, which would eventually be recouped from the music/video/software sales.