An mp3 player was in every kid's jeans pocket before the ipod was even announced.[0] Its innovation was costing twice as much and having white earphones, which made it suitable as a wealth-signaling fashion accessory.
[0] https://en.wikipedia.org/wiki/Portable_media_player#The_MP3_...
I'd say that their innovation was that round touch slider thingie that added nothing to the functionality but confusion, but was fun to use.
The market was also divided in a way that's hard to imagine today, something like an iFP or PMP was like taking a single tape/CD with you. But the Jukebox (the infamous Nomad) and some other lines were really "put all your music here; this now is your music collection." The iPod was the first pocket-sized player that supported this mode. (And the iPod Shuffle probably the last in the line of the former style.)
Nonetheless, I was referring to the sales pitch. And Jobs never let facts get in the way of a good story. :-)
This is a strange statement. I grew up in the Bay Area and a CD player was in my hands/in the back pocket of my backpack for the longest time. It wasn't until the second iPod Mini that I even knew what an iPod was.