Apple keeps raising the barrier on the iPod Nano
design and making it tough to outdo themselves. But any company that
has a category-leading product is faced with this dilemma of always
having to improve and jump a higher hurdle with every product
iteration. If they time the jump wrong and go crashing through the bar
then another product can take the lead. But Apple has this race down
and updates their products just often enough to keep relevant, but not
so often that their just adding one or two features to an existing
product.

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