Amazon is selling the Altec Lansing IMT320 inMotion Compact iPod Speaker System for only $40.77 shipped, originally priced at $79.99. This gadget “folds as small as a book for easy portability, and it packs a punch with dual drivers that deliver rich, well-balanced sound whether you’re at home or on the road.” Product page. Video preview after the jump.

The inMotion Compact features a dock that is compatible with the latest iPhone and iPod models, including the iPhone 3GS. It also features “Works with iPhone” certification, which means that the music will pause automatically when you receive a call. You won’t have to switch your iPhone to airplane mode to get exceptional audio, nor will you have to worry about the annoying GSM buzz that you often get from other speakers.

[via Amazon]