iPod has investors jumping on Apple Computer bandwagon

“When Steve Jobs, Apple Computer Inc.’s chief executive officer, unveiled iPod mini in January, critics frowned. They said that iPod mini, a slimmed-down version of Apple’s runaway hit, the iPod digital music player, was too expensive and that cheaper versions from Apple’s competitors would eat its lunch,” David Akin reports for The Globe and Mail.

Akin reports, “The critics couldn’t have been more wrong. Even before it hit the stores on Feb. 20, Apple had received 100,000 orders for the $249 (U.S.) iPod mini. (The item goes on sale in Canada next month, the company says.) The product has also won raves from reviewers, one of whom said using one was close to being a ‘religious experience.’ Sales of iPod have also helped to win new fans among investors.”

Full article here.

Related MacDailyNews Article:
iPod success opens door to Mac OS X on Intel – March 04, 2004

27 Comments

  1. I only question Mr. Akin’s choice of words. One would expect “critics” to, well, criticize the iPod mini. However, many industry ANALYSTS also pontificated that it was too expensive for not enough differentiation.

    Now, it seems to me that analysts should be held to a higher standard than critics.

    The article goes on to discuss the blither of several financial analysts, some positive, some negative. The simple fact is that analysts are no more privy to the future than we are. Financial analysts as a class, when their financial advice is followed, perform worst than the market.

    Why does anyone listen to them?

    Mike

  2. My cirticism then as now is that Apple missed an opportunity to “clean up” with the mini due to its high price. I am sure it will do well, just not as well as it could have done. No doubt we will have to wait till next year perhaps for the price revolution to follow…..

  3. I think a lot of the blame for the negative views on the price can be put on the wild rumors that were rife before the actual introduction of the product. People were saying it would be between 100 and 200 dollars so it was a bit of a let down. Now I begin to see why Apple is so close-mouthed about future products.

  4. Oh hell, here we go again. It’s been estimated that an iPod mini costs more than $200 to make. Yes, Apple can sell a ton of them at $149 or $199, but with a loss for each sale, the last thing you want is to sell a bunch of them because high number of sales at a loss == huge loss.

    Why do you think dot-com companies went *boom* (even I saw that coming and I am not an economist. Gotta love reel.com, though. I bought a bunch of DVDs from them while it lasted)?

  5. Why lower the price to $199 when they’re already cleaning up though??? iPod minis are difficult at best to find in any color right now. Apple won’t consider lowering the price until the demand falls off. To do otherwise would be foolish since they’d be leaving a lot of money on the table. That would be a rather foolish way to run a business…

  6. I agree with Rob.

    Also, Apple cannot keep up with demand. If they lower the price to increase sales, that would only hurt Apple.

    Apple needs to outsource production to another company in China and work on more partnerships like HP.

  7. I was thinking yesterday that Apple should make more branded iPods like the hp blue version. I think versions for automobile manufacturers would be a natural. Like a VW, BMW or Saturn model (to be included with a new car, of course, along with a direct audio line-in jack.)

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