iPod competition and naysayers – remember this.

Magazines need filler. This week, Business Week had a long story about the next iPod killer in SanDisk. They make their own flash so they can beat Apple at the cost game. yada yada….By the way, SanDisk is a great company and has been a great stock, but it is no Apple killer. Component players have their day in the sun and it sets.

The one paragraph in the story that meant anything was this:

“ACCESSORIES ACTION. Still, is being competitive on features and price enough? One little secret about iPod sales: retailers don’t eke out much of a profit selling them; Apple sells them at a fixed, nonnegotiable price. Retailers, however, love selling all the accessories that have come to populate the iPod economy: leather cases, speaker systems, headphones, and what not. “The attach rate of accessories to iPods is really high, and the retailers love that business,” Gartenberg says.”

This category is over. Attacks will be made and Apple will slip up, but the iPod economy is in motion. Serious motion.

Keep it simple when investing in this space – APPLE.