CNet has a good story on the latest iPod development.
Turns out that although Apple recently discontinued the iPod Mini–replacing it with the Nano model–there’s a segment of buyers who still want a Mini and are willing to pay through the nose to get one. As of 11:45am yesterday (which is when CNet posted their story), one retailer with Minis in stock (Compu-America) was selling a 4GB Mini for $349, which is $150 more than the original price. As of now, Compu-America has raised their price for a 4GB Mini to $499. In the past 3 months, eBay has sold about 36,000 Minis, and the average price is rising (currently, it’s $229).
From a technical perspective, the Nano is smaller, performs better, and has a color screen. So why are people willing to pay a premium for the Mini?
I think it comes down to style: the iPod is really a fashion accessory. People like the Mini because it comes in a variety of colors (pink, green, silver). The Nano, on the other hand, comes only in black or white.
It could be because they’re rare; according to the article, one buyer wanted to fulfill the Christmas wishes of a friend’s girlfriend: “She had her heart set on an iPod Mini mainly because they are discontinued, so not many people would have them.”
Either way, Apple will sell a lot of mp3 players.
Mini: 
Nano: 
Left by tech.memeorandum on December 14th, 2005