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The economics of iPhone pricing

Apple's surprising misstep on iPhone pricing could have come about because the company's executives took too many economics classes, and not enough psychology courses.

Earlier this summer it seemed Apple could do no wrong on the marketing and public relations front, but the company clearly did not foresee how its early adopters would react to the $200 drop in the price of the iPhone announced by CEO Steve Jobs last Wednesday. Steven Levitt, the man behind the book Freakonomics and currently writing a blog of the same name at The New York Times, has an interesting post todayRead more

Weekend frenzy led to 1 million iPhones sold?

Well, that was quick.

Just days after Apple kicked up a huge iPhone cloud of dust by announcing a $200 price cut, then apologized for its actions with a $100 store credit, the company announced that it has sold the 1 millionth iPhone. Apple reached that goal in 74 days, and it had allotted itself until the end of September to reach that mark.

That doesn't necessarily mean that there are 1 million iPhones in the wild. An Apple representative confirmed that the iPhone numbers are "sell-in," which means they reflect the number of iPhones that Apple … Read more

Could Apple destroy the cell phone industry?

Remember when I told you that I believed Google could kill the cell phone industry by participating in the wireless spectrum auction? Well, what if I told you that Apple may participate in that same auction and the possibility of it destroying the cell phone industry is just as great?

Now, before you raise your hands and say I'm full of it, understand that this is all a guess on my part and there is currently no indication that Apple will (1) definitely participate and (2) do what I am about to say. That said, the company still might participate in the auction and my predictions could, could come true. So, without further ado, here is how I think Apple could kill the cell phone industry.… Read more

Is Apple considering bidding on 700MHz spectrum?

Apple is considering bidding on the government's upcoming wireless spectrum auction in January, according to a Business Week story.

The story, which cites two unnamed sources, said that "Steve Jobs & Co. have studied the implications of joining the auction, which will be held Jan. 16." But at this point at least one of Business Week's sources says that Apple is leaning away from participating in the auction, the story said.

The spectrum auction scheduled to take place in January 2008 will allocate wireless licenses for spectrum in the 700MHz band that is being vacated as a result of the switch to digital TV. … Read more

Apple: 1 million iPhones sold

It seems like only yesterday that Apple had sold its first 270,000 iPhones--not a bad tally for just a little bit more than the first day on the market.

Monday morning, a little more than two months after the much-lusted-after gadget went on sale, Apple said in a brief press release that it had sold its 1 millionth iPhone.

"One million iPhones in 74 days," Apple CEO Steve Jobs exulted in a press release. "It took almost two years to achieve this milestone with iPod."

Last week, Jobs unveiled the new iPod Touch, which mimics … Read more

Adventures in music retailing

The Times Online reports that U.K. music retailer HMV is opening the first of a new type of store in Dudley, west of Birmingham. The highlight: in-store kiosks with USB ports that will allow users to download free music and video files to a memory stick, for later transfer to their computer or other device. There are lots of other ambient-futurist touches, like big plasma displays, a mini Apple store, iMacs to play with, and a juice bar. As well as old-fashioned CDs and DVDs for sale.

Combine this idea with the Apple-Starbucks partnership announced on Wednesday, and I … Read more

Apple signs iPhone patent deal with Interdigital

Apple has signed a patent-licensing agreement with a company called InterDigital for what appeared to be $20 million, plus ongoing royalties, that covers the current iPhone and hints at a 3G successor.

Interdigital broke the news in a filing with the Securities and Exchange Commission Thursday, amid all the hubbub related to the iPhone pricing flap. The company said it has signed a seven-year licensing agreement with Apple retroactive to iPhone Day that covers the technology used in the iPhone.

Interdigital develops technology that gets mobile phones onto cellular networks. The company's products and designs are used for older … Read more

Free your ring, and your iPhone will follow

Here's some exciting news for those of you who have an iPhone and want to have the Star Wars Imperial March play every time your mother-in-law asks you for help installing the latest sudoku game: with a bit of file-extension tweaking and judicious use of the new iTunes 7.4 for Windows or Mac, you can now customize your ringtones without having to donate another 99 cents to Steve Jobs' favorite retirement fund.

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Report: TV execs dislike idea of price cuts at iTunes

Apple is trying to convince Hollywood to reduce prices of downloads of TV shows from $1.99 to 99 cents, according to a story in Variety.

The trade publication reported Friday that TV networks have shown little enthusiasm to price cutting, although Apple is telling them that lowering the cost will boost sales, according to the story.

Last week, NBC Universal announced that it would not renew a long-term contract with Apple to sell TV shows via iTunes. Many in the entertainment sector have wanted more control in pricing their products at iTunes, but Apple CEO Steve Jobs has held … Read more