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The Ipod + Nike thing

Can someone explain to me why Apple wants to put something in your shoe? I could understand if it was an ipod in the shoe that used bluetooth to send the sounds to wireless ear pieces but the pictures seem to imply that you still have an iPod nano, something plugged into the nano, and the thing in your shoe. What am I missing?

I get it! While running the device in your shoe reports your speed, distance, heart rate, etc. to you via the iPod Nano. I like it!

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