Can you spell i-n-n-o-v-a-t-i-o-n? Besides the iPod, the iPhone is coming down the chute. The iPhone is redefining the cell phone market and it hasn't been released yet.
The Apple stores generate more money per square foot than Tiffany's. They eliminate the middle man and take his profits, too.
Lastly, Apple is still a fine computer company. The Macintosh is taking away market share from the pc.
Buy and hold.