There is no doubt that iPod sales have slowed since the iPhone hit the streets, and don't think that Steve Jobs and the other wizards over at Manzana, Inc. didn't see this coming. It's a gamble they were willing to take. Having already sold tens of millions of iPods, the risk of selling a few hundreds less each month in order to conquer the smartphone market proved crafty. And was no doubt the right decision. Apple wants to compete with Microsoft and the combination of the iPhone and MobileMe software, etc. makes that possible. The iPhone holds so much more potential, so Apple will no doubt let iPod sales peter out as the real weight is put behind the iPhone Gang.