You can still buy new. Argos, silver only, £190.
Says product is unavailable.
Why did they stop making them.
If I recall correctly, Toshiba stopped making drives that size. It got to the point where the only use for them was iPods, and they just were not selling enough to warranty the manufacturing costs.
Edit:
Business Insider has the full quote:
“We couldn’t get the parts anymore, not anywhere on Earth,” Cook said. “It wasn’t a matter of me swinging the ax, saying ‘what can I kill today?’”
Cook also said there wasn’t enough demand for the device to justify putting big research-and-development bucks into redesigning it.
Indeed, at the heart of the final iPod Classic was a 160-GB hard drive made by Toshiba, a product that dates back to 2009. If sales of the device were low, it’s likely the demand wasn’t enough to keep Toshiba building it. It’s also older, slow technology – spinning at 4,200 RPM – and so wouldn’t be in demand for other devices, either.[/quote]
Sauce.