Smashing iPods, extremely expensive incident (7)
I believe the answer is:
episode
'incident' is the definition.
(I've seen this before)
'smashing ipods extremely expensive' is the wordplay.
'smashing' indicates anagramming the letters.
'extremely' says to hollow out the word (remove centre letters).
'expensive' with its middle removed is 'ee'.
'ipods'+'ee'='ipodsee'
'ipodsee' anagrammed gives 'EPISODE'.
(Other definitions for episode that I've seen before include "from longer work" , "Part of TV series" , "Incident or one part of a story" , "Bout" , "Part of a broadcast serial, say" .)