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As said the idea is to prevent waste, also it reduces the size of the packaging (which is why iPod shuffles and nano's have tiny boxes).
But, another thing is that most people have high-speed internet, and when you install iTunes off the cd, it'll probably be out of date and you'll be told to download a new version, especially when a brand new iPoo generation is released, so there's no point. And the money they lose from people saying "I'm not buying it because there isn't a cd", is less than the money they save by not burning the discs and the amount of iPoos they can ship about (which is what all the fuss over the tiny boxes is for).
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