Actually whats up and part of the problem with ipods is the free ipod websites that give out free ipods to people who complete certain offers to get them for free. I know as I got a free ipod nano for about 20$ my cost from doing one of these freebie sites.
People, especially young people do this as a hobby and have figured out a way to do this multiple times from multiple sites.
They then sell them for bid on eBay.
This may not be the whole issue with the competition but certainly isnt helping us retailers.
Hope this helps.