Apple ‘continues to increase competitive gap’ with new iPods

This morning’s iPod updates will “widen the gap between Apple and potential competition,” Piper Jaffray analyst Gene Munster said today. “We believe some will view the changes in the iPod product line as negative. Specifically, we expect to hear arguments that Apple is taking a hit to margins in reaction to competitive threats,” Munster wrote in a research note to clients obtained by iLounge. “We believe that Apple’s changes to the product line are more offensive than defensive. Apple clearly holds the leadership position on this market and we believe these changes will widen the gap between Apple and potential competitors that are trying to chip away at iPod market share.”