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Possible upside to that is a price drop to clear inventories which would put downward pressure on Apple.

Personally I think there's lots of pie for everyone though. PC makers are the ones that should be concerned.
 

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I don't know. MP3 players have been a lot cheaper than iPods for years but Apple maintains its prices.
 

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A market glut would force prices for many products down. I also doubt that Apple would reduce prices significantly. They would accept less market share provided units sold and profit margins remain high.
 

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My guess is that most companies will keep production low. I think they would prefer to "hype" a shortage and lose some potential sales than lose a bundle with unsold inventory.
 
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