When Apple CEO Steve Jobs unveiled the iPod Hi-Fi in late February, he compared the quality and price to the JBL and Bose iPod speaker systems. The next claim from Apple was that the iPod Hi-Fi could replace high-end AV systems from companies like Denon - a statement that left many, including Denon executives, scratching their heads.

"It is sort of confusing why they would throw it up against an AV receiver that was not made for the iPod," Jeff Talmadge Marketing Manager Denon Electronics, told Macworld. "To be honest, no we will not be changing our strategy and we won't redo our product planning because of this." Unlike the iPod Hi-Fi, JBL and Bose systems, the Denon receivers do not need an iPod to work. Denon has included support for the iPod and other music devices to work with its receivers, but they can function independently of those devices, as well. "It's a cool gadget and it has its demographic, but it seems that Apple wants a bigger slice of the accessories pie," said Talmadge. "This is their way of competing against Bose and Klipsch."

OMG. How compressed audio can be "Hi-Fi" is a contradiction in terms. Bottom line though, if you get more enjoyment from your compressed files than someone with a 5-6 figure cork sniffing system, then power to you :)