Step One: Profit

I enjoy kicking Apple around as much as the next Apple-kicking guy, but this takedown of the iPod Shuffle seems to fail on a couple levels. It is great that someone went to the trouble to price out the component parts of the $99 Shuffle and came up with about $59 in electronics. But can you jump from that to the conclusion that Apple therefore makes "a profit of about $40, or roughly 40 percent" as the PCWorld story does?

What about the cost of all the Shuffle ads Apple has up on TV and in magazines? That ain't cheap. And those neato white iPod displays in just about every retailer, underpants gnomes tending and setting up those things? Gotta be aware of these costs before we declare that Apple is making a killing on Shuffles.

Then there is the general tone of the piece, which seems to suggest that Apple is somehow pulling a fast one on Shuffle buyers. How Much Should an IPod Shuffle Cost? How about exactly what people are willing to pay for one? Plus $50 for a blue one. Kick!