“Apple Computer cut prices on its iPod digital music players, added color screens to some models and began supporting downloadable radio programs to defend its lead against competing players and music services,” Connie Gugliemo reports for Bloomberg News. “Apple is selling two versions of the white iPod: a 20-gigabyte version now with a color screen for $299 and a 60-gigabyte color model that was cut to $399 from $449. Apple also dropped the price of the 1-gigabyte iPod shuffle to $129 from $149, the company said Tuesday.”
Gugliemo reports, “Chief Executive Steve Jobs is working to maintain the iPod’s lead in the so-called MP3 device market in the U.S. and increase shipments as prices drop amid competition from Creative Technology Ltd. and Dell Inc. The average iPod selling price fell 42 percent to $191 last quarter, and Apple said it expects lower-cost models such as the iPod shuffle to weigh on margins. ‘They’re lowering prices to grab market share, and they should be able to maintain the same profit margins at these lower prices because memory costs have been declining,’ said Piper Jaffray & Co. analyst Gene Munster, who predicts Apple’s iPod shipments will top 35 million by the end of the year.”
Full article here.
Related MacDailyNews articles:
Apple offers free iPod mini to students and teachers with Mac purchase – June 28, 2005
Apple lowers price of 1GB iPod shuffle to US$129 – June 28, 2005
Color displays for all white iPods, Apple merges iPod and iPod photo lines – June 28, 2005
So, one could argue that they are lowing prices due to falling memory costs instead of trying to grab market. Since, really, what competition?
Do we really have to link to every single iPod newsitem out there?
There’s more to Apple than the iPod.
Macs, for example. Isn’t this site called something with Macs?
Yes, Sigh, I’m going right now to get a big mac.
Big Mac = Powerbook G5?
What hasn’t been mentioned is that Apple has replaced the 30GB iPod Photo ($349) with the new 20GB iPod ($299).
Except for the increased battery life of the newer model, the 30GB iPod Photo looks like a better deal to me.
iTunes + iPod = Windows Trojan Horse = Windows switchers
See, iPod news is very relevant.
oh, yeah. “defend its lead against competing players”
“maintain the iPod’s lead”
“grab market share”
These people still write with the faintest of hints that at any point in the near future, Apple could lose it all and disappear off the face of the earth.
no firewire cables. $20 extra. bad move. come on apple.
“no firewire cables. $20 extra. bad move. come on apple.”
You also seem to neglect the higher resolution, color display, as well as the longer battery life.
Their price cut strategy worked on me. I couldn’t resist, so I picked up a brand new 30GB iPod “photo” on clearance this morning for $269 at Circuit City before they ran out.
And the 30GB “photo” and new 20GB color models have the same 15 hour battery life. There is actually no difference between the two whatsoever except that the old model has a 30GB HD and the new one has a 20GB drive. They even come with the same accessories. So if you can find a good deal on an “old” 30GB model, it’s the better buy.
“defends it’s lead” more like maintain it’s lead or continue to move away from the pack.