“As a sign of changing times, Apple shares rose this morning on the news [of a $149 iPod nano 1GB unit and a new lower price, $69, for the 512MB iPod shuffle] . There was a time when lower prices used to send analysts scrambling, fearing tighter margins and price wars. These days, everyone understands what Apple is all about,” Rick Aristotle Munarriz reports for The Motley Fool.
“More iPods in place doesn’t just mean the one-time sales. Those iPods are the catalyst for growing sales of digital downloads at its iTunes stores and a higher mainstream profile for the Apple brand. That increased public visibility has helped Apple sell more of its higher-margin computing products,” Munarriz reports. “Cheaper iPods may be welcome news to you and me, but they’re not so endearing to Apple’s competitors. Companies such as Creative Technology, Sony, and iRiver will need to react accordingly now that the lower end of the market just got lower. It won’t be easy for them. They don’t have the benefit of running a popular digital download store (though Sony owns one of the major music labels) or selling Macs to justify price cuts for the sake of moving product.”
Munarriz reports, “Apple sold 14 million iPods last quarter. Nobody else even came close. Since its inception, Apple has moved more than 42 million iPods and delivered 850 million iTunes tracks. It’s quite the empire, and at $69, the iPod is now likely to penetrate even further into the mainstream. Granted, that market is less likely than the first wave of iPod adopters to pay for digital downloads or shell out four figures for their next computer, but Apple wouldn’t mind more attention from the masses. There’s strength in numbers.”
Full article here.
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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