In elementary and middle schools in the U.S., though, many districts ban the device. It can cut into instruction time and can be seen as a distraction more than anything. Unfortunately, grades two through eight are still about lugging five-pound books all over the place along with dozens of papers and pencils. I say that if the U.S. truly wants to be at the forefront of education, cheaper tablet computing devices would replace books and multiple writing instruments and information conveyance would be designed for the times, not relegated to what has worked in the past few hundred years. The times, they are a changin', to quote the bard from Minnesota.

But the iPod -- and indeed, portable sound devices in general -- may have a place in today's schoolroom. In New Jersey and a few other places, iPods are being used to assist bilingual students with limited English as they work on their vocabulary and grammar skills. Are English books interesting to these students for whom English is not their primary language? Hardly, according to many school administrators. But the iPod can help make language lessons interactive and thus more engaging.

Now that there are approximately 120 million Apple (NASDAQ: AAPL) iPods around the world, it is beginning to dawn on some analysts that the varying prices of the device could create an economic index of how one country's finances differ from another's.

According to Reuters, "one of Australia's biggest banks, the Commonwealth Bank, has used the latest version of Apple's music player -- the slimline 4GB Nano -- to compare global currencies and purchasing power in 55 countries." Insane perhaps, but interesting.

In Brazil, an iPod costs over $369 in US dollar terms. Bulgaria is second at $318.60. Hong Kong was the cheapest place to buy a Nano at $148.12, while the United States was second cheapest at $149.

As one executive at the Australian bank explained "It also highlights the effect of tariffs and taxation in countries. The Brazilians, the Argentinians, are going overseas probably to do their shopping."

The study says more about the cult-like status of the iPod than it does the ability of banks to measure economic variables among countries. The same basic information could be derived from looking at LCD screen prices or Gillette razors.

But, Apple has been so effective at marketing the iPod to the point where it is one of the world's great brands that a bank would pick it as the "currency" it measures. It's a testimony to what Jobs & Company have done to make the device a part of global culture.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Apple, Inc. (NASDAQ: AAPL) was recently up $3.60 cents to $157.11.

AAPL is expected to report earnings per share (EPS) in mid-October. AAPL October option implied volatility is at 31 and November is at 39, below its 26-week average of 42 according to Track Data, suggesting decreasing price risk.

Google Inc. (NASDAQ: GOOG) was recently trading up $13.64 to $580.74.

GOOG is expected to report EPS on October 18th. GOOG October at the money 580 straddle is priced at $33.10. GOOG October option implied volatility of 31 is above its 26-week average of 27 according to Track Data, suggesting larger risk.

Volatility Index S&P 500 Options:

VIX decreased as Dow Industrials got above 14,000, down .59 to 17.39. The 10-day moving average was 18.78 according to Track Data.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

It seems that whenever you talk to someone about the music industry, the discussion eventually comes to the steep decline that has occurred in the past few years as the growth of digital downloads has affected the sales of CDs. Whenever I think about that decline, it's hard to see it simply because I still purchase a large quantity of CDs and only a handful of downloads per month. Still though, when I do download an album it always (and I mean always) comes from Apple Inc.'s (NASDAQ: AAPL) iTunes Store, primarily because I own an iPod.

While that may sound like a complaint, it really isn't because I have always found the iTunes Store very usable and the iPod very convenient, but the reality is that not everyone shares that opinion. For some users, the question of accessibility has become a major issue, and iTunes dominance in the market affects how accessible they view the market. This is not without warrant of course -- no matter the success of Apple with the iPod and iTunes; it is still a dominating product in a shrinking field. This view does not even take in the account of CD users.

With the beta launch this week of Amazon.com's (NASDAQ: AMZN) MP3 store, Apple finally has a competitor that will be able to challenge iTunes with sales and prices, not to mention that the DRM-free (Digital Rights Technology) downloads will be playable on the iPod, among other portable devices. Amazon's DRM-free tracks are not limited to music from EMI Group PLC and numerous independent labels, either. Certainly both of these differences will aid the new Amazon "iTunes" store, but the very fact that it remains an online store adding an MP3 section means that it should fare well against a store dedicated strictly to media digital downloads.

But, like Georges, I believe Apple shares are headed even higher. The popular iPod line has been around for over five years now, and the new generation is better than ever. The snazzy new iPods create buzz around Apple's music products and other products like the Mac computer line, and the company's word-of-mouth and visual marketing continues to shine with the mass consumer.

Apple goes beyond the "features for the money" approach of other digital music players. Buying an Apple product is now a cultural statement and provides a feeling of being in the "in crowd." Over and over again, there are arguably better products that try to compete with the iPod, but none have succeeded thus far because they cannot match that special feeling.

Last week I wrote separate posts on Crocs (NASDAQ: CROX) and Apple (NASDAQ: AAPL), and fortunately both stocks have done very well in the past 4-5 days. I wrote that you better hurry if you want to buy Apple under $150, as the stock had rebounded from a recent low of $118 to the $140's. Tuesday, the stock closed at a new 52-week high of $153.18. Crocs had been foolishly under attack by an absurd Associated Press article last week that linked Crocs shoes to some children's mishaps on escalators. I wrote that the attack on Crocs was a crock. The stock was drilled down to $53 during the life of the AP article, today the stock closed at a 52-week high of $64.38.

So what's going on and what's new with these two great performers?

Many retail stocks are under pressure as consumers have pulled back on their purse strings. Target Corp. (NYSE: TGT) indicated that previously endorsed numbers for the rest of 2007 would not be achieved. The stock gave up 4.59% on Tuesday. Crocs, however, is NOT a retail story; Crocs is a global story. Crocs distributes its shoes and other products through 27,000 retail outlets of which 14,500 are located outside the United States. More than half of Crocs' "selling space" is benefiting from the weak U.S. dollar, and the margins from overseas sales are just huge. Coupled with foreign currencies converted back to dollars, this sets up Crocs for a terrific September 30 quarter end. I have many other reasons why Crocs is a bona-fide, sustainable growth story, but I have written ad nauseam about the subject.

Kohl's (NYSE: KSS) implied volatility elevated prior to $2.5 billion stock buyback.

• KSS, an operator of 834 stores, has a market cap of $18.5 billion.
  
• KSS announced a $2.5 billion share repurchase program that is expected to be completed over the next three years. Funding for the buyback will be from operating cash flow as well as incremental debt financing.
• KSS will host an investor conference in Indianapolis on 10/2.
  
• KSS overall option implied volatility of 36 is above its 26-week average of 30 according to Track Data, suggesting larger price risks.

Apple (NYSE: AAPL) October implied volatility at 43 into mid October EPS and guidance report.

• AAPL is recently down 97 cents to $139.80 in pre-open trading.
  
• Bloomberg reported AAPL's CEO Steve Jobs was subpoenaed by the SEC to give a deposition in a backdating lawsuit against the company's former general counsel, according to two people familiar with the matter.
  
• AAPL is expected to report EPS in mid October.
  
• AAPL October option implied volatility of 43 is near its 26-week average of 42 according to Track Data, suggesting non-directional price movement.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

During the market disruptions of the past couple of months, we saw Apple (NASDAQ: AAPL) fall from a high of $148 to a low of $118 ( man, what an opportunity that was!!). The stock is now back up to $141 and this may be your last chance to buy it here under $150. Why? A lot of catalysts are on the near term horizon.

Apple finishes its fiscal year in 11 days. The September 30 quarter and year-end will wrap up an exceptional year for Apple, yet many would argue that the best is yet to come. I expect the year finishing in 11 days to have final revenue numbers of $24 billion with earnings per share coming in at $3.75. iPhone revenues will be somewhat relevant, but that piece of the Apple story is JUST BEGINNING. As Apple exits fiscal year 2007, the more relevant story is still the overwhelming success of the iPod with the corresponding iTunes store, and of course, the newly revamped Mac computer. Mac is gaining market share in a fairly fluid market.

The iPhone production is ramping up. For the year (calendar year), Apple had planned to produce 3.6 million iPhone units. That number is now at 4.8 million units in planned production. European nations will be rolled out for iPhone availability beginning in the calendar fourth quarter with the UK and Germany getting ready for the onslaught.

Early this week, I met with Michael Gregoire, who is the CEO of Taleo Corp. (NASDAQ: TLEO). His company is a leader in HR software.

Instead of talking about the fine points of his industry or tech gobbledygook, he spent most of his time talking about the look-and-feel of his software and website. "If you go to Google (NASDAQ: GOOG) or Amazon.com (NASDAQ: AMZN), do you need a user manual?" he asked. "Of course not. It's natural. The technology doesn't get in the way."

In fact, over the past year, Gregoire has had a laser focus on improving his software's usability, and based on what I've seen so far, it's been well worth it. Interestingly enough, the system has the feel of Apple's (NASDAQ: AAPL) iPod, not a boring HR application. "We think design and usability will be a key differentiator going forward and very important for growth," said Gregoire.

So how can a small business make sure its products showcase good design and ease of use? Some entrepreneur's I've interviewed recently told me how they have been able to follow what I would call 'the iPod way.'

This post is part of our Money Face-Offs feature. Let us know who you think comes out ahead in this head-to-head match-up, and check out our other Money Face-Off posts.

The technology stories of the 1980s have a lot to do with the dawn of the PC era. IBM was about to license its personal computer technology to the open market (leading to the rising popularity of Microsoft) and Apple's computers were a hit-or-miss proposition with consumers as el-cheapo PCs made their entrance and became the dominant force in many homes and offices. Remember 1,200-bps modems and bulletin boards, folks?

Microsoft's arguably illegal tactics made it flourish in the 1990s under CEO and company cofounder William H. Gates, and the debate continues to this day whether the Windows 3.0 and Windows 95 operating systems were in part copies of Apple's MacIntosh operating system. Suggested viewing: Pirates of Silicon Valley.

Apple seemed dead in the water in the mid '90s, and Microsoft was growing by leaps and bounds. Bill Gates became the richest person in the world on paper (which would last more than a decade), and Steve Jobs came back in 1997 to try and resurrect a floundering Apple that had not done much in terms of innovation or growth under then-CEO Gil Amelio. Gates seemed on top of the world; Jobs, not so much.

Apple Inc. (NASDAQ: AAPL) Chief Executive Steve Jobs has a funny of showing he's sorry. has limits on his generosity.

The $100 merchandise credit that Jobs offered last week to consumers outraged by the $200 iPhone price cut came with a catch: people can't use it on the popular iTunes service, according to Bloomberg News. (Update: After that initial report, Apple said that the information on its Web site was in error. Users won't be able to add the credit directly to their iTunes account, Bloomberg says.)

My guess is that Jobs wants people to use the credit for new Mac computers, iPods or to buy their friends a new, cheaper iPhone.

Now, despite what people wrote in response to my last Apple post, I actually am a fan of the company. The iPod is one of the greatest technological gizmos ever invented even though my particular one drives me bonkers from time to time. I'm even trying to convince my wife to buy a Mac.

Though Apple does have a right to place limits on its offer but prohibiting customers from using its most popular service is baffling. it's needs to make sure that a similar mixup doesn't happen again

The Wall Street Journal's Lee Gomes makes an interesting argument [subscription required] about digital music that iPod and iPhone buyers should consider: "[B]ecause both compressed music and the iPod's relatively low-quality earbuds have many limitations, music producers fret that they are engineering music to a technical lowest common denominator. The result, many say, is music that is loud but harsh and flat, and thus not enjoyable for long periods of time."

According to one expert, high frequencies which sound good on a CD may sound poor on an MP3. Music today is also being released at higher volume levels, which can also weaken the distinctions between high notes and low ones in a track.

So add that to the list of complaints about Apple Inc. (NASDAQ: AAPL). MP3 and iPods are weakening the quality of recorded music. Part of the problem is the ear buds that are commonly used with iPods are relatively poor quality.

But hopefully engineers are hard at work making MP3 technology better, just as they did with CDs when they first came out. Either way, don't count on CDs making a comeback any time soon.

Since the story ran at BusinessWeek.com, it has some credibility. The online version of the magazine reports that Apple (NASDAQ: AAPL) is considering joining the government's auction of wireless spectrum, putting it in potential competition with Google (NASDAQ: GOOG).

Apple certainly has the $4.6 billion needed to enter the bidding, but the magazine says that the low margins in running a large wireless network might keep the consumer electronics company away. However, if Apple did succeed in the auction, it would have its own network for the iPhone. As a potential attraction, the company could allow its handset to use inexpensive VoIP.

Apple may have a longer-term reason to look at the spectrum. At some point, its sales of iPhones and iPods will slow in the U.S. But, having a service network would allow the company to combine video, music, and voice onto one platform, which could extend the sales life of its current products.

Another attraction might be the scale of the opportunity. Verizon Wireless will bring in about $40 billion this year. And, it is highly profitable. Offsetting that is the costs that were necessary to build out the infrastructure to support those revenues. But Apple might end up in a partnership with another company, say Google, to share those costs.

It may seem crazy, but so is the success of the iPod.

Douglas A. McIntyre is a partner at 24/7 Wall St.