Lowering the price would be a mistake. It would only infer that it is a weaker product. I can tell you that Apple will not lower their price. They have an image to uphold - and if it comes at the price of marketshare, so be it. Though they don't have much to worry about as far as the iPod's share of the market (the rest of the market is too segmented which leaves the well-known iPod to clean house).

Making sure to beat the drum that the Karma is the most "compatible" player out there would likely be a good move. There are some Windows people that may still be shy about using an Apple product.

Bruno