iPod has in a couple of years become a staple of the company, it is the sole reason Apple name has rebounced along with its stock and its profit. Its the most wanted Christmas gift. Would this change Apple`s approach and develop more enhanced products like iPod as well as upgrading iPod over time to keep its appeal

They seem to want to simply make the world of computers more ergonimcal both the hardware and software devsions.I dont think it is becuase of the ipod that they chose this approach, as they have been trying to achive this for some time. The ipod itself is simply and end product of one of the orginal ideas. I belive they will keep producing products based around the ipod but not becuase of it populartiy but becasue of its evalutionary approach.

I think the iPod merely served as a big "advertisement" for Apple products. eg. Powerbook, iBook, G5

apple doesn't need more advertisements.. they just need to sell their stuff cheaper...

apple will certainly update the ipod as time goes by, and they are definitely working on more than just macs now. this is good... imagine if microsoft only ever did windows, no hardware, no console, etc. i doubt apple will lose focus on their computers or operating system. well, not while jobs is around, at least. and hell, the ipod is convincing people to buy macs... i just read a news blurb about 6% of ipod owners making the switch already and another 7% who are going to... i can't find the source now though

Apple might not loose focus on computers, but they might get too involved in music so much so that it seems they have forgotten they made computers.

What I found odd, is on the Apple main site when they had the iMac G5 ad on there it said:

From the makers of the iPod, the iMac G5.

I think it's only meaning that it comes from the same design of the iPod, in fact if you watch the ad they compare the look of the iPod and the iMac viewed from a side, and they look very similar.

I don't think Apple will loose focus on their computers, in fact they're "side products" are always more and more integrated with their hardware computers... they have simply expanded their range of products.