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September 17, 2008 11:31 AM PDT

Apple selling limited number of 4GB iPod Nanos

by Tom Krazit

Apple is selling a 4GB version of the new iPod Nano, shown here, in certain areas of Europe.

(Credit: CNET)

Apple appears to be selling a 4GB version of its new iPod Nano in Europe, but not in its home market.

Engadget noticed that 4GB Nanos in the new color scheme were appearing on store shelves in the Netherlands, and The Register was able to confirm with an Apple representative that a "limited number" of the smaller iPod Nanos are being sold in various markets.

Apple introduced 8GB and 16GB versions of the new iPod Nano last week during its annual September iPod event.

According to the reports, the 4GB model costs 120 euros, or $170.57, as compared to the $149 you'll pay for the 8GB model on Apple's online store. Yeah, I can't make sense of that pricing strategy, either.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by Jirnsum September 17, 2008 11:53 AM PDT
"According to the reports, the 4GB model costs 120 euros, or $170.57, as compared to the $149 you'll pay for the 8GB model on Apple's online store. Yeah, I can't make sense of that pricing strategy, either."

Maybe it helps to know that here in The Netherlands the 8GB model goes for 139 Euros or 197 USD! and the 16GB goes for 189 Euros (268USD). The way to make sense of it is to realise that in order to make it appear we're not screwed as badly price-wise we're now actually being screwed product-wise
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by Tom Krazit September 17, 2008 12:27 PM PDT
That makes more sense, thanks for the info.
by nicmart September 18, 2008 4:01 AM PDT
Pricing has a lot to do with the value of the dollar and exchange rates, as well as high European welfare state taxation, and nothing to do with Apple "screwing" anyone. The cost of virtually everything, in currency and in hours worked to pay for it, is higher in Europe than in the US. Free healthcare is expensive.
by Pishkado September 18, 2008 5:38 AM PDT
Another factor is that European prices include all taxes, while U.S. prices are given before sales tax (in most states). A USD 149 iPod will typically cost the buyer around USD 169, give or take. That's what we should be comparing European prices to. Doesn't account for the whole difference with the Euro worth around USD 1.40 these days, but it makes the two prices a bit closer than they seem at first.
by 251WS September 17, 2008 12:02 PM PDT
Rule of thumb for many products is USD1 in the US costs you EUR1 in Yurp. Used to run an ISP in Africa, so all of our gear had to be sourced internationally. It was cheaper to pay the slight uplift in shipping from the US than buy kit out of Europe for this reason.
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by Penguinisto September 17, 2008 1:12 PM PDT
@251WS: May want to check exchange rates... it's changed a bit. ;)
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by sanenazok September 17, 2008 1:49 PM PDT
He meant ignoring the exchange rate, actually, I think. Meaning stuff being sold for $199 in the US will cost 199 EUR or 179 EUR even though the EUR is worth a lot more. It costs more money to run a business in Europe regardless of what the exchange rate is doing...especially since everything is made in China now, so production costs are the same.
by johnqh September 17, 2008 1:41 PM PDT
Penguinisto,

You didn't get it. The exchange rate doesn't mean much. Often, the same product will end up the same number in different locales, just in different currencies.

As Jirnsum said, the 8GB costs $149 in US, but Apple is not going to use exchange rate to price it in Europe. Instead, it starts with "149", and adjust around that, and ends up 139EUR.
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by Riquez-001 September 17, 2008 4:14 PM PDT
It's one of the phenomenon that perplexes Europeans regularly.
On visiting a website we see comments like "OMG! $129, that's way too expensive!" yet, the same device in the UK is costing people £129 & they think its reasonably priced.
Obviously we are paying twice what the Americans are paying - is it us who are stupid for paying too much?, or is it them who are whining git's even though they get 50% off?
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by skeetchamp September 17, 2008 5:04 PM PDT
What if, after making some of them, they decided not to do the 4 and rolled on with the 8 and 16? No sense throwing away the ones they'd already made, so they sold them. People love to have things others cannot get, so it's not all that surprising people are willing to pay more to get something there are so few of. I'm not saying it makes perfect sense, just that it's not that big a stretch after all.
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by baggyguy1218 September 17, 2008 9:31 PM PDT
I think it is amusing that Apple designs and creates the iPod in America, then has China build it, then sells it them China and Europe at a higher price. I love the world market. Britons pay so much for an iPod because apple knows you will pay for it. It is the same with itmes coming from Europe to the Americas.
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by cenkalaz September 18, 2008 1:14 AM PDT
In Turkey we can't see this prices..

Cenk Alaz
<a href="http://www.tala-karincayagi.com" title="kar?nca yumurtas? ya??">kar?nca yumurtas?</a>
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by jscott418 September 18, 2008 3:37 AM PDT
It still looks like the real winner is the iPod. With 160gb its by far the cheapest per GB for your money.
That still shows flash memory has a long way to go before its as affordable as the old hard drive.
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by harry5878 September 19, 2008 8:57 PM PDT
So, 100,000 downloads of the iPhone SDK in the first 4 days + 70% mobile web browsing market share = a HUGE market lead for Apple. It will be interesting to see what the other manufactures can/will do to try to catch up.

Lou
www.jobsearchdigest.com/pesd
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by Mr_Fishy September 22, 2008 4:21 PM PDT
I have a zune, so i can get the latest gen of that in 4GB for 130 or shell out 20 more USD for 8 hum hard choicse ill take the Blue 8thx kind sir
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