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http://www.macnn.com/articles/03/10/20/jobs.comments/

Jobs comments on competition, iPod pricing

updated 03:25 am EDT, Mon October 20, 2003

 
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In a Newsweek report, Steve Jobs said that contends that "in the long run the [online music] competition will , however, he says that the No. 1 MP3 player is not too expensive: " No, of course I don’t think it’s too costly. Fifty million homes have DVD players that cost that kind of money. For music lovers, I don’t think it’s a hurdle at all. There are sneakers that cost more than an iPod...We’d love to have a $100 iPod! We just don’t know how to do it right now. We’re constantly trying to make cheaper iPods. We’re working on the next step."


by MacNN Staff

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  1. MacNN.com Reader

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    cheap

    drop the price man I want one...

  1. MacNN.com Reader

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    worth it

    Good thing always had its price. How good could be an iPod at $100? They would have to save on the hard drive, cover, etc.
    One should consider saving money elsewhere before asking for a $100 iPod (quit smoking, buy less DVD's, stop gambling).
    :-)

  1. MacNN.com Reader

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    $500 DVDs

    If you spent $300-500 on your DVD player, you probably spent WAY too much.

    A few A/V snobs and early adopters may have done so, but I doubt 50 million people have done so.

  1. MacNN.com Reader

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    Please proofread

    'In a Newsweek report, Steve Jobs said that contends that "in the long run....'

    Which is it? Steve Jobs says, or Steve Jobs contends?????

  1. MacNN.com Reader

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    Issues

    I don't get it... I understand why they need to come out with new computers... (faster, better, new stuff etc.)

    But the iPods should come down in price. They don't do anything new other then a few tricks.

    We should see a $200 iPod, then more people would buy...

    That being said, TONS of people buy $500 digital cameras...

  1. MacNN.com Reader

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    Re: Issues

    "We should see a $200 iPod, then more people would buy"

    I'll bet even more people would buy if it was $5 too. But that doesn't mean it can be done and still be profitable. I believe a 5GB Toshiba drive (in the iPod size) costs $200. Even with a bulk discount, given the costs of the rest of the unit, I don't think Apple could make one and still make a profit on it.

  1. MacNN.com Reader

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    Re: Issues

    "They don't do anything new other then a few tricks."

    Bigger HD, the addition of USB2 in addition to firewire, dock, touch wheel (no moving parts). All tricks nothing new. All fancy tricks. I'm sure it cost them nothing. A few more tricks and they can make it color also. And it will still be nothing new. Just tricks. And if you don't get it, this is supposed to be sarcastic.

  1. MacNN.com Reader

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    expense

    Careful now... we don't want to make the iPods *too* affordable, lest the common peasants be able to own a piece of Apple hardware. Then how would we be able to lord our shiny expensive Macs over them?

  1. MacNN.com Reader

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    What

    he MEANT to say was:

    "Fugg3ediboudtit, how will we keep our 30% margins? All those other guys can afford to make money on 10% profits, but they don't have to keep their CEO in jet fuel... I mean, have you SEEN the prices of jet fuel these days?"

    Sorry Steve, you're going to be quite challenged trying to go after the mass market with a niche market attitude!

  1. MacNN.com Reader

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    get over it


    i'm not the kind of person who plonks down the kind of money for an ipod willy-nilly-- i've got student debt and watch my cash as carefully as possible. [ie an ibook that gets the job done instead of a powerbook or the latest g4]

    but i paid $600+ canadian for an ipod and i'd pay it again. what you've got here is a superior product, well worth the price. ask anyone who owns one and they do not balk at the price. i haven't listened to my cds since i got it. once. why bother? clunky things. the ipod is unbelievably portable, kind of a heavy cassette tape. durable too, i took mine treeplanting all summer. charges in the car, amazes everyone one i show it to, easily the best piece of tech that i own.

    i justify the purchase this way: i like music, i didn't want to spend the money on a couple of inferior products until i settled, finally, on what i really wanted.

    so sure, there may be some apple tax in there. but the prices have come down and the feature set (mainly capacity) has gone up considerably. i'd say that the ipod is probably the most cost-competitive product apple sells. it is something like $100 above the retail cost of some of those drives. they sell more of this type of device than anyone and are desperate to have it crack open the apple market to windows users-- competitive pricing is where it is at.

    and this finally. we all love apple products because they are innovative, stylish, and just work well. that costs money, don't buy it if you don't want those things. the marketing and economics wizzes out there understand that the product is flying off the shelf, sounds like the price is right to me. products (and pricing) like this ensure apple's long-term survival, i personally have a deep stake in this sort of choice being available and am willing to pay a small premium for a head-and-shoulders above the alternative product. nothing even comes close to what apple is offering, deal with it.



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