While it's true that the Ipod Mini is less expensive that it's bigger brother, the original ipod, some have wondered if the Ipod Mini is priced too high. The Ipod Mini is certainly not cheap. It's only around $50 cheaper than the Apple Ipod. Consider the fact that the Ipod Mini has significantly less capacity and you're paying a lot for the smallness factor.
However, as production ramps up and retailers need to compete with each other as demand falls off, the consumer can reasonably expect cheaper Ipod Minis in future.