Sony unveiled their new waterproof walkman with build-in mp3 player at tech convention CES this winter. While they just look like simple ear-buds, they actually contain the whole mp3 player inside them. The buds have been designed for fitness (healthy people who exercise). The waterproof build means they are perfect for swimmers who just can't swim without some Katy Perry blasting in their ears, or for modern day Gene Kellys who want to be singin' and dancin' in the rain.
Warning: ear-buds may cause baldness.
Pretty functional. The balls in your court, Apple.