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Analyst: Apple has structured their iPod pricing model in a very clever way

In response to Apple’s announcements today of a new 1GB iPod nano for US$149, the lowering of the 512MB iPod shuffle price to $69, and the number of videos sold via iTunes Store having exceeded 12 million, JupiterResearch analyst Michael Gartenberg blogs, “Good move for them as we know each price band opens up new markets for them. Even more clever is the way the pricing model is structured so if you’re looking at a 512MB shuffle, it’s tempting to be upsold to the 1GB [shuffle] model and if you’re in the market for a 1GB shuffle, just a little more gets you a [1GB] nano. Very clever. Lots of interest in video downloads as well, looks like Apple boosted their number by 50% in the last month.”

Full article here.

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Related articles:
Apple’s iPod nano, shuffle moves good news for Apple, consumers; bad news for also-rans – February 07, 2006
Apple shares rise on $149 iPod nano, $69 iPod shuffle, Showtime content news – February 07, 2006
Apple unveils new 1GB iPod nano for $149; iPod shuffle now starting at just $69 – February 07, 2006

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