Apple Gets Aggressive with IPod Price Cuts

[MrX]

Fri Feb 25, 2005 6:32 PM ET

 By Brian Garrity

NEW YORK (Billboard) - Apple Computer aims to extend its already substantial lead in the MP3 player business by wooing cost-conscious consumers with increasingly competitive prices.

Earlier this year the Cupertino, Calif.-based company introduced its first sub-$100 portable player, the iPod shuffle, a flash memory device intended to attract consumers who previously were priced out of the iPod market. Now, Apple is aiming to expand its audience in the hard-drive player space with its first sub-$200 iPod mini and with lower prices on its revamped iPod Photo line.

On Feb. 23, Apple dropped the price of the standard 4GB iPod mini to $199 from $249 and introduced a 6GB iPod mini for $249. It also cut the introductory price on the iPod Photo by $150 with the rollout of a slim 30GB version of the player that costs $349. Additionally, Apple cut the cost of its top-of-the-line 60GB iPod Photo to $449 from $599.

Apple already claims 60% market share in the hard-drive player business. The focus on lower-priced items is intended to snag untapped mass-market consumers as they shift away from CD players and into the portable digital music space.

"Hitting these new lower price points is going to be important to making the iPod accessible to music fans around the world," Apple VP of iPod products Greg Joswiak says.

Apple is particularly bullish on its strategy with the iPod mini. The company believes it can drive even greater sales of the device with a sub-$200 offer -- a first for an Apple hard-drive player. With the 6GB iPod mini, Apple is attempting to one-up its competition on value and storage capacity. The standard capacity of similarly priced "mini"-style players from Apple rivals is 5GB.

There is one casualty in the new iPod product lineup: 40GB models. With the new pricing for the iPod Photo models, Apple is eliminating the 40GB white iPod, which cost $399, and the 40GB first-generation iPod Photo, which cost $499.

However, Joswiak says, the upside is that more consumers will have access to the iPod Photo, with its color-screen and picture-display capability. Apple also now has a "clean" pricing scheme, in which the cost of its most popular iPod products -- starting with the 512MB iPod shuffle and ending with the 30GB iPod Photo -- increases in $50 increments.

"We expect it to help increase the market size for iPod products," says Susan Kevorkian, an analyst with technology research firm IDC, of the pricing strategy. "Apple is making the devices more affordable than they have been to date."

Reuters/Billboard

[WMD]

I'm getting a mini.  Confirmed.

only if it can play .mod and .sid files!

Or if you can convert them.

[Laukev7]

Or if you can convert them.

Here's one way, for starters.

Oh, and try out sid2mid. It kicks arse.

http://medlem.spray.se/converters/

[Refalm]

Here's one way, for starters.

Oh, and try out sid2mid. It kicks arse.

http://medlem.spray.se/converters/

 Although SID and MOD have the same basic build up (sound files and a mixing table), they are quite different and need different converters.

Also, it's better to convert MOD into ogg or mp3, as they are high quality sound files which are also used in Unreal Tournament (and still supported in UT 2004).

[WMD]

I'm getting a mini.  Confirmed.

Oh, I forgot to say, I did buy one.  4GB Mini, $200.  Killing the battery now...damn thing won't die. :o

Had to boot Windows to format, but works great otherwise in Linux + GTKPod. :tux:  :thumbup:

[MrX]

oh yeah? well im not buying an ipod. instead, i am getting a 10inch 400watt Polk/MOMO
MM1104 sub in a sealed box with the Quasar II grille for $260 final price with taxes
(in in BC Canada you know!)
i have the cash saved up from doing computer repairs. it should be able to outperform my current 10inch sub in sealed box which is a MTX road warrior.
basiaclly if i can save up more money, then sell both- and get a dual bandpass box with two 15" MM2154 !
go check out
http://www.polkaudio.com and click car audio. polk is top of the line and that's what i want!

Mr X :beos:  :beos: