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Ars examines iPod/iPod Mini pricing scheme

updated 03:15 pm EST, Tue January 27, 2004

Ars on iPod pricing

Ars Technica takes a look at the , which costs $250. The 4GB player is only $50 less than the 15GB standard iPod, leaving many consumers "scratching their heads." However, editor Eric Bangeman points out, "It is not meant to be an alternative to the iPod," and the pricing "does not look as bad when compared with its intended target market."




by MacNN Staff

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  1. MacNN.com Reader

    Joined: Dec 1969

    0

    Nice logic, still 2 much.

    The article is interesting and makes solid points; however, the iPod mini doesn't exist in a vacuum. The arguments touting the mini's superiority when compared to similarly featured alternatives simply indicates why the larger iPod is the product of choice. In my humble opinion, Apple needs to lower the price at least fifty more dollars if it is serious about moving this product. Time will tell.
    B.

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    Bang-On

    My wife is a perfect example of someone that didn't really want an iPod, pre-MINI.
    Now, she is getting a nice Pink one for Valentine's Day. I think that there are many who don't want/need 20-40+GB of music and will like the size/style of the MINIs.
    Look at some of the other players in that price range - they suck in comparison.
    My 2

    SB

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    re: Bang-On

    Exactly. It'll sell.

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    Good Comparison & Points

    The article seems right on target.

    I wandered into a midtown Manhattan CompUSA the other day and looked at music players. There was the low-end iPod hidden among Rio, Creative and other units. I guess CompUSA was hoping people wouldn't see the iPod and buy ANYthing else instead just to clear out the stock!

    Thinking about how the iPod mini will fit in, especially when comparing capacity, price, physical size and design factors... take a look at the hideous Oakley-esque self-conscious designs of the other players vs. Apple's iPod elegance and simplicity.

    Basically, the iPod mini will KILL them!
    And I don't even CARE about MP3s!

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    re: Bang-On

    Yeah, but... if you've got enough money to buy a 4G model and the higher capacity one's only $50 more, wouldn't you go with the better value, candy coloring or no? You can always get the white one engraved or something...

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    vacuum

    iPod mini's stuck in a vacuum. Be careful.

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    That's not the point.

    Sure the mini is a good value, if you're comparing it to other mp3 players. But that's not the point. The point was to sell an iPod for a cheaper price that more people could afford, so apple could gain more market share. The mini dismally fails at that goal.

    If they weren't going to release a cheaper iPod, then what's the point? The iPod was already small, it didn't need to get any smaller. Smaller would have been nice if it didn't require the huge price leap it seems the mini had to undertake.

    Wives and teenage girls will buy the mini for the "cuteness" factor. The rest coughed up "Bullshit" as soon as we saw the price. 1000 songs or not, $250 is way too much money for most people to pay to get an mp3 player.

    Or maybe I'm wrong. It seems there's a lot of idiots out there that buy everything that has an apple logo on it, regardless of how bad the price/performance factor is. Apple certainly knows about that. Why do you think they believe they can get away with charging $250 when you can get something with nearly the same size drive for $150 on ebay? Because they think we are stupid.

    I would give them a message. Don't buy the mini. Then, when it becomes a dismall failure, maybe apple's shareholders will piss on them for assuming that apple can sell products solely based on marketing the apple brand.

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    $199. it'll move

    the economy may be boomin but shoppers will buy more 15Gb units or neither if they have a lower budget. I think its a natural reaction when you see two devices from the same company to expect a greater price differential, it just gives youthe feeling that they are forcing you to ante up $250 to get anything and seems like a slap in the face. Apple has a history of trying to jam things into predetermined "niches" in the market, ala performa h***. They should wise up and corner the whole market, low and high end. Who cares what other units cost, increments of $100. makes sense

  1. MacNN.com Reader

    Joined: Dec 1969

    0

    uh?

    "I would give them a message. Don't buy the mini. Then, when it becomes a dismall failure, maybe apple's shareholders will piss on them for assuming that apple can sell products solely based on marketing the apple brand."

    Not to sound like a zealot, but I want the mini to sell. I'm not in the market to buy one, but that doesn't mean I'm going to piss and moan about how expensive/inexpensive it may be. Your right, a lot of housewives and teenagers are going to buy it - AND GOOD FOR THEM! A lot of housewives and teenagers have this thing called "disposable income" - you may not know what this is, but a lot of poeple actually have money to spend.

    I want Apple to do well and have the freedom to continue to provide innovative products like the original 5GB iPod. (Remember how people bitched and thought that was too expensive???).

    I've never understood the logic of "Well, they didn't build it to suit ME and therefore it I HOPE IT DIES!". What kind of logic is that????

    I can't tell if some of these arguments are based out of pure jealously (can't afford it) or complete and utter ignorance.

  1. bryan.falchuk

    Joined:

    0

    Read the article

    Guys, read the article and look at the table. It makes a LOT of sense why the mini is priced at 249 when you look at it's competitors. Stop thinking about the 15 GB and think about what's it's competing with, namely 512 MB flash players, which go up to $300. It's right where it should be price-wise. Also, Apple doesn't have enough margin on the Mini to support a 199 price just yet. They'd be losing money on it.

    If you don't believe me, read their financial release. They talk about a 20% iPod margin, and then talk about why they don't think the lower margin on the mini and HP iPod will hurt them since they will sell way more of everything. That means that the mini is less than a $50 profit to them, making a $199 retail price a loss. They need the component prices to drop first.

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