Apple today reduced the prices on their existing iPod line by $20 to $120, depending on the model.
At 1 pm today, eastern, Apple has a music related event at which new iPods are expected to be announced. I assume that the new models will replace the current models and the pre-reduction price. So, the price cuts are likely to be aimed at moving out the old product to make room for the new. The new iPods are rumored to include new features, including cameras.
Update: Apple’s online retail store is now offline. This is typical in advance of new product announcements such as that happening this afternoon.
Apple’s store is probably offline because they are going to declare bankruptcy because they realize they can not compete with google voice.