Keep an eye on Apple’s iPod price points today

“One key thing to watch [at Apple’s “Let’s Rock” presentation in San Francisco today] are the price points. Apple’s normal modus operandi is to slowly increase the value and features of its product line, but to keep the prices steady,” Saul Hansell reports for The New York Times.

“The base model of what is now called the iPod Classic was $299 from 2002 to 2005, and it has been $249 ever since. In that time, the storage capacity increased from 5 gigabytes to 80 gigabytes,” Hansell reports. “Similarly, the Nano was introduced in 2005 with a 2 gigabyte model that cost $199. The next year, Apple introduced a 1-gigabyte version for $149, and the base price for the Nano has stayed at $149 ever since, although the capacity is now 4 gigabytes.”

“Since the sales of stand-alone music players are slowing down, the question facing Apple is whether to keep the $149 price point for flash-memory players and the $249 price for hard-drive players,” Hansell reports.

“The other interesting iPod question is what Apple does to keep the high end attractive. It has been pushing the iPod Touch — essentially an iPhone without the phone, G.P.S. chip, speaker and camera — which starts at $299,” Hansell reports. “The big question is the price point: Does Apple have the confidence in its innovation to make people pay $299 this Christmas for its very best media player line?”

Full article here.

12 Comments

  1. I don’t really see a lot of room for a Nano price drop, but a 9-10% cut for both the Nano & Classic to say $134 & $224 could be feasible.

    What is truly needed is a BIG price drop in the iPod Touch, say 40% or more.

  2. The price drop on the Touch would be great, and probably they’ll do something moderate. Don’t forget the iPhone has a two-year contract (three-year for me and other poor Canucks) that costs thousands of dollars. The Touch is a good deal, as is. It’s people’s perception that’s askew.

  3. @ silverline:

    Askew perception is right. It’s the whole reason they went to the subsidy model for the iPhone in the first place. Only $199 to start (but you’ll pay it back in subscriber fees over time). I’ll stick with my 1G iPhone and $20 a month data plan until it dies.

  4. How about an iPod classic with the iPod touch form factor.
    I’d buy one in a heartbeat!

    The touch is pretty well priced, but a reduction is always a good thing. A 64GB model would be better. A 128GB model would be amazing, with an equally stunning price, given the cost of high capacity flash memory.

    Supposedly the new nano will come in 9 colors. A 16GB purple nano would extremely tempting!

  5. I thought Mr. Jobs introduced a new mobile gaming platform.

    Did announce the 2.1 software update.

    Look at the pretty colors… ” width=”19″ height=”19″ alt=”tongue wink” style=”border:0;” />

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