February 23, 2005 9:00 AM PST
Apple pipes in new iPods
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The company introduced a higher-capacity, 6GB Mini, along with new 30GB and 60GB iPod Photo models, which can use an adapter to connect directly to digital cameras and display photos. The Minis also feature a boost in battery life.
The new models expand the range of Apple's popular hard drive-based music players and increase the product line's capabilities in digital photography. A $29 camera adapter for the iPod Photo answers the call for connecting the player directly to cameras without the need for a computer as a go-between.
Along with bringing out the 6GB Mini, which costs $249, Apple lowered the price of its 4GB Mini to $199. The 4GB Mini had debuted in January 2004 at $249.
The 30GB iPod Photo costs $349, while the 60GB device costs $449. Previously, Apple offered a 40GB model for $499 and a 60GB version for $599.
The sharp price cut to the iPod Photo line moves the color screen from a premium feature to something that's practically standard--showing up on all but the lowest-end $299 iPod model. Apple Vice President Greg Joswiak said in an interview that he expects many iPod buyers will pay $50 more to get a device with a 50 percent larger hard drive and color screen.
"I have little doubt this will be a very popular model," said Joswiak, who heads iPod product marketing. "Just like you saw with PDAs and cell phones, everything gets better in color."
Apple has been on a low-price tear recently in an effort to reach more consumers. In January, it introduced the flash-based iPod Shuffle, which starts at $99, along with a Mac Mini desktop PC designed to appeal to bargain hunters.
Apple's iPod line has already achieved totemic status in American pop culture and is the clear market leader among portable music players. Moreover, the music player segment overall is enjoying healthy growth. A recent study revealed that 22 million adults in the United States, or 11 percent of the population, own an iPod or other MP3 player.
Apple is clearly out to build on its success, said one analyst.
"If you combine (the $199 iPod Mini) with the Shuffle, it really says Apple is shooting for the moon here," The NPD Group analyst Steve Baker said. The company is "really going after getting as much of this market as it can."
Still, Baker had some questions about how customers would evaluate the questions of device size versus storage space.
"The pricing all works. It's got nice $50 increments," he said. "I think the question becomes, are you adding enough value at each increment and how are customers going to view that? If you're doing a $249 Mini, is (that 2GB of extra hard-drive space) really worth $50 more, or would a customer trade right past that to $299 to get 20GB?" he asked, referring to a 20GB regular-size iPod.
Joswiak said the changes to the iPod lineup are an attempt by Apple to hit every possible part of the market.
"We have all budgets covered," he said.
Gene Munster, a financial analyst at brokerage firm Piper Jaffray, applauded the lower prices as a good way for Apple to defend its turf.
"We believe that Apple's changes to the product line are more offensive than defensive," he said in a research note Wednesday. "We believe
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rakin it in before! (...or dyin tryin...)
bluetooth enabled iPod?
Is it to have BT stereo headset and listen to music? Or is it to
stream to your stereo's BT receiver and listen at home?
I am not aware of a BT solution yet. Any links?
I was pretty excited about my iPod. I think I will be returning it for a refund and not get the new one if this is the kind of customer service I can expect. Total bs.
the net was buzzing with the prospect of an addition/change to
the ipod line you should have paid attention then waited till the
time came, when i was upgrading my 3rd gen i listened to the
rumor mill and waited till the release of the photos came, i
decided they werent for me and bought a 20 gig 4g like i had
planned but this way i avoided purchasing something days
before it is replaced by something better. Do some research
before you buy especially if the fact that your device was
replaced is such a big deal to you, it will save you a lot of grief
But I must say I was quite excited about the rumors that the mini was getting a color screen. That would have been awesome along with 6GB and 18-hour battery life for $249! I was dissapointed that the rumor was wrong, but I suppose I fall into the category of those willing to buy at 'high' prices because I'm going to throw in my $249 for one. I'm tired of constantly having to reload my 1.5GB Rio Nitrus with new music. At 6GB I'll be able to load enough music for week or two. I'd love to go with 30GB and color screen for an extra $100, but I find the iPods too heavy and bulky for how I use a music player.
A $100 personal cd player still has far more versatility (compatible with all music download sites, instantly pays any CD - no file transfer necessary) and the sound quality is beyond comparison.
As soon as the price for 2-4GB devices falls under $100, then you'll have something worth buying.
Put it this way, this is supposedly the must have cool gadget for kids. This is fine for parents or kids with large incomes, but for lower income families, there are two issues.
First, obviously, is that kids tend to lose everything - too bad, so sad you might say, but why someone like me would be tempted to buy the thing in the first place, given that they have poor build quality (check out the ipods over 2 years old on ebay, and find out how many still have original batteries that work correctly, or dodgy connections for the earphones ) and are small enough to be lost easily - no thanks.
Now consider that the PSP will have a retail cost of around $250 - can player movies, music, games. They can connect to the internet, with built in wifi, and will almost certainly be updated with productivity software like MS Word for pocket PCs or media on the go applications (Cable TV / satelite radio reception in wifi hotspots), and tell me where the value in an ipod is..