Analyst: Apple’s Steve Jobs winning ‘game of chess’ against Microsoft, other iPod+iTunes competitors

“Apple slashed the price of its hot iPod Mini digital music player Wednesday to $199 and introduced a slightly larger version for just US$50 more — moves expected to further fuel sales of the trendy gadgets… When the Mini was introduced last year at $249, the colorful device faced weeks of back orders. Apple CEO Steve Jobs says that won’t happen this time. “‘We’ve learned from our history,’ he said. The new models will be widely available this weekend, he said Wednesday. Jobs called $199 a ‘magic’ price point: ‘Getting under $200 has historically resulted in a broader market,'” NewsFactor reports.

“Tim Bajarin, an independent analyst at Creative Strategies, says Apple will sell many more iPods at the lower prices. But the bigger picture, he says, is the ‘game of chess’ Jobs is playing with competitors. ‘Every time he makes these moves with pricing, he makes it more difficult for them catch up,’ Bajarin says. Software giant Microsoft has been working with hardware manufacturers such as Creative and Rio to compete with Apple in music by offering players for songs using Microsoft copy protection. Apple’s moves make it even tougher for Microsoft, says Stephen Baker, an analyst at market research firm The NPD Group. ‘This leaves them at the mercy of their hardware partners, who are going to be forced to reduce their prices or put in additional features,'” NewsFactor reports. “Apple shares rose $2.94 Wednesday to close at $88.23.”

Full article here.

25 Comments

  1. Oh boy. If I could just program a software filter that could prevent these inane “Hey I’m the first post,” “nobody’s posted yet,” postie post post, hey I’m the first post so now I’m not a total loser anymore post krap! I would donate it to MDN immediately and greatly enhance my reading experience here.

    Now that I’m off the soapbox.

    When I first saw the new mini colors I thought, wow what a big mistake, but I got to see a pink one yesterday that a friend purchased and was very impressed. The finish is so vibrant, almost neon. I’m still glad that I waited for the 2nd Gen. The new colors/finish are impressive, most impressive.

  2. Typical, Stevie playing chess, Billy playing checkers. Check out Wildstrom’s rant in BusinessWeek:

    Microsoft should be ashamed of itself for trying to turn its own security flaw to its commercial gain. There’s no reason to believe that customers installing a mandatory security fix also want to change their browser home page to an MSN portal, and there’s even less excuse for trying to spring a change on the unwary.

    Interestingly, the test version of Microsoft’s new AntiSpyware program does something similar. When it detects a browser hijacking, it attempts to change the home page to MSN rather than to a blank page or a page of the user’s choosing, in effect, hijacking the already hijacked page.

  3. Er, KernelPanic, didn’t you mean “checkmate” (or at least “check”)? – MacJack

    No, KernelPanic is an unapologetic Wintel Troll, so he surely meant exactly what he posted. Inane and pointless as it may be, don’t mistake the post for something more than what it is.

    Bravo, KP.

  4. Steve has been hitting on all cylinders since coming back. I think the years away gave him plenty of time to think about how he would have done things differently if he had remained in charge. Now he is in the drivers seat again and is running circles around the competition. I think there will be many more finesse moves to come too.

    I heard about a guy who was a POW in Vietnam and to keep his sanity and to pass the time every day he would play 18 holes of golf in his head. He would imagine every stroke and the weather and wind and everything. When he finally got out and back to the US he picked up a golf club for the first time in like 5 years and played a round wherein he cut 12 strokes off his best score ever.

  5. 47th post! WOOOOHOOOoo!!

    Oh, I’m sorry, did I hurt someones feelings? Does it hurt your eyes to view the word “post”?

    Also, get over the FireWire Cable aleady.

    I love Macs, but less and less people post constructive, objective, or thoughtful items (including me now.)

    I would love to see WiFi iPod if they could get the size small enough. I don’t know what the minimum amount of power a WiFi needs to operate, but it could be something that only works for short periods like a hard drive, or perhaps only when it’s docked so a power supply could power it. OH WAIT! better yet and easier, how about a WiFi dock? Then you’d never have to actually connect your iPod to your computer. Also incorporate AirTunes selectability right from your iPod! Cool and PC friendly (Not that I have a PC anymore)

  6. “No, KernelPanic is an unapologetic Wintel Troll, so he surely meant exactly what he posted. Inane and pointless as it may be, don’t mistake the post for something more than what it is.” – BSOD (Dense)

    🙁

    Dude, you’re good. I dont think you have EVER said that before. Can’t you come up with something better? I’d rather be a Troll than a Bigot.

    God You people just cant get a grip. All you can do is resort to childish rhetoric. I though the intellect of the Mac user was *Supposedly* higher than the likes of Wintel Troll. Its too bad you know, If you people really wanted the Mac Platform to grow (Which I Do) you would stop with your Useless Crappy little euphomisms, and start unidating the forums with actual intellect. But that’ll never happen. There are just too many proud dickheads around to prompt a meaningful response.

    Sarcasm isnt taken lightly around here. Oh Well, thats how tight wads are.

  7. Hey KernelPanic

    Just a suggestion, but if you want to criticize people for poorly thought out responses, try not to use sentences like

    “unidating the forums with actual intellect”.

    Which is a combination of bad spelling and non-meaning. Also, I think the word you’re searching for is “euphemisms”

    Peace

  8. Very true… I’m not advocating a Microsoft product at all, but it’s odd to watch the entire industry practically stand and watch as Apple continues to bring more products to the table. It’s almost embarrassing.
    The best the opposition has are some CEO’s that call the masses stupid for buying the most popular product or a system that again, is becoming the most widespread source of stolen music…. sad, sad, sad..

    And if they do name this new product the xPod, Apple should sue!!

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