September 5, 2007 1:10 PM PDT

iPod gets touchy, with price cut

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Instant reactions to Apple announcements


September 5, 2007
A correction was made to this story. Read below for details.

Apple announced on Wednesday a complete overhaul of its line of iPod portable music players and a significant cut in the price of its recently released iPhone.

The iPod Touch, essentially a phoneless, camera-less version of the iPhone, has the same 3.5-inch screen, multitouch interface and home screen as the smart phone. The iPod Touch has the ability to connect to the Internet with 802.11b/g Wi-Fi. The Touch comes with Apple's Safari Web browser and has built-in Google and Yahoo search.

The new iPod comes in two configurations, an 8GB version that costs $299 and a 16GB model that costs $399. The battery in each can handle 22 hours of audio playback or 5 hours of video, according to CEO Steve Jobs. Both versions are expected to be available this month.

The device runs the same version of Apple's OS X found in the iPhone, said Greg Joswiak, vice president of iPod products for Apple. Also, as with the iPhone, developers will have to settle for building Web applications to run in Safari on the iPod Touch, as Apple doesn't plan to open the new device up to application developers just yet.

The iPod Touch may pull some customers away from purchasing the iPhone--in that it's cheaper and doesn't require a two-year contract with AT&T--at the cost of being unable to make voice calls, of course. But Apple isn't that worried. "It's better than having to go to a competitor," Joswiak said.

Apple is also revising some of its previous iPods, including the regular iPod, the Nano and the Shuffle. Apple will offer a 160GB version of the regular iPod (now known as the iPod Classic), which is enough storage for 40,000 songs, according to Jobs. It is thinner than the regular iPod and has better battery life, enough to handle 40 hours of audio. That model will go for $349, and an 80GB version will now be $249, a price drop of $100. Those iPods will be available this weekend.

Apple is making only minor changes to its iPod Shuffle line, which will come in new colors and is available now for the same price as the previous line. A new Product Red Shuffle will benefit a program fighting AIDS, tuberculosis and malaria.

new iPods

The iPod Nano will now have video capability, though its screen is only 2 inches wide. It comes loaded with new games and Apple's Cover Flow software, which lets users scroll through album covers when searching for music. The Nano will come in two configurations, a 4GB version priced at $149, and an 8GB version that will cost $199. The Nanos will come in the same new colors as the Shuffle and are expected to be available in stores this weekend, according to Jobs.

The Nano overhaul is in line with previous rumors of a shorter, squatter iPod. The new Nano, from a volume perspective, is identical to the old one, but it's shorter and wider. That's to accommodate the 2-inch screen, which has a 320x240 pixel resolution.

Initial reaction to the new Nano, which has been the most popular version among previous iPods, was mixed. Readers posting on CNET News.com griped about the new colors and expressed skepticism about watching videos on the 2-inch screen.

One poster on AppleInsider's forums opined, "I like it, but it kind of reminds me of a cracker. I feel like adding some cheese and taking a nibble."

However, it's not likely that many people will buy the iPod Nano with movies or TV shows in mind, when they now have two other options with larger screens and larger capacity.

Jobs also announced news that may irk some early adopters of the iPhone: the price on the 8GB model has dropped to $399--a savings of $200--only two months after the product became available in stores.

Videos:
Click here to Play

Introducing the iPod Touch
At S.F. Apple event, CEO Steve Jobs introduces an iPod with almost all the same features of an iPhone, but without the phone.

Click here to Play

Price cuts to attract iPod shoppers?
Apple CEO introduces an overhaul of the iPod lineup (and pricing) for the holiday season. The iPhone gets a big price chop too.

Roger Kay, president of Endpoint Technologies, said the rapid price cut is probably the result of slower-than-anticipated demand.

"It is a very interesting sign. My first suspicion is that they aren't getting the volume," he said.

But AT&T, the iPhone's exclusive wireless service provider, dismissed concerns about iPhone sales.

"We are very pleased with how customers have responded to the iPhone," said Mark Siegel, a spokesman for AT&T. "And the new pricing by Apple will do nothing but make the device more popular. So we view this news very positively."

And Jobs reiterated Apple's statements that it plans to have sold 1 million iPhones by the end of the current quarter in September. Before the price cut announcement, Piper Jaffray also echoed its previous estimates that Apple would hit that mark. Still, the financial analyst community hasn't had the best track record predicting iPhone sales so far.

On the software side of things, Apple announced a new version of its iTunes media player, which is scheduled to be released Wednesday night. A new feature in the updated iTunes allows users to create ringtones from any segment of a song they've downloaded through the iTunes Store. That service costs 99 cents per ringtone, and does not include the price of the song. The ringtones will be compatible only with the iPhone.

Apple also announced the iTunes Wi-Fi Music Store, which allows consumers to buy songs wirelessly. Users can preview, download and listen to songs right away on their iPod Touch or iPhone (after a software update expected later this month). Upon syncing the device with a computer, those songs will be transferred into the user's iTunes library.

Apple fans have been clamoring for this capability ever since the iPhone was introduced, but the company wanted to make sure to get it right the first time before plunging in, said Eddy Cue, vice president of iTunes at Apple. "We didn't want to have a crippled store," he said, meaning a store that didn't have the same inventory as the regular iTunes Store or that didn't provide the same shopping experience.

The wireless store is just confined to music at the moment, however; people won't be able to purchase TV shows or movies through the Wi-Fi store, Cue confirmed. He declined to specify when that might become available.

Along with the Wi-Fi Music Store, Jobs announced a partnership with Starbucks. People with an iPod Touch or iPhone who walk into a Starbucks coffee shop will see a button pop up on their screen. They will then have the option to buy the last 10 songs that have been playing in the store, as well as music from featured artists at Starbucks.

Apple's stock did not react well to Wednesday's news, tumbling 5.13 percent, or $7.40, to close at $136.76. The stock has been extremely volatile this year, and it tends to follow a "buy on the rumor, sell on the news," progression.

But the movement could also be related to concerns that Apple's margins could be in for a hit with the steep discount applied to the iPhone. The company guided more conservatively on earnings per share for the current quarter when it announced third-quarter earnings in July, perhaps well aware that steep price cuts were in the offing for the iPhone. That is, unless it needed to stimulate demand more than previously thought.

CNET News.com's Michael Kanellos and Marguerite Reardon contributed to this report.

 
Correction: This article originally misstated the month in which Apple's quarter ends. It ends in September.

See more CNET content tagged:
Steve Jobs, Apple iPod, Apple iPod Touch, Apple Computer, Apple iPhone

66 comments

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can't wait... no iphone either
this is so cool i can't wait. we won't have iphone here until next
year sometime, yet the ipod part was what i was wanting
Posted by tenticles (1 comment )
Reply Link Flag
Ouch...
Nothing like being an early adopter!

I'm sure AT&T will offer cash-back on iPhones already purchased...right?

I assume that when they get around to adding some more "enterprise friendly" features (activesync anyone?), that it'll be a new higher priced model.

[http://Sorry...Great Ipod News, but the price drop in the iPhone sort of trumped it for me|http://Sorry...Great Ipod News, but the price drop in the iPhone sort of trumped it for me]
Posted by Kings X Rocks! (89 comments )
Reply Link Flag
iPod price cut
It was funny hearing a few people groan after Jobs announced the $200 price cut on the iPhone. I believe one of the people sitting next to me purchased the 8GB model sometime last week!
Posted by Michael.Hatamoto (10 comments )
Reply Link Flag
Recent iPhone purchaser
Oh, well. I've paid more than I needed for other items in the past but rarely have enjoyed using them this much. It really doesn't bother me a lot.
Posted by trisor (19 comments )
Link Flag
What a joke!
Wow, I knew they would lower the price but THIS soon is just
insulting to those of us who bought them when it first came out. I
just bought an IMac and now i'm thinking about returning it and
have a bad taste in my mouth with Apple. Bad Apple! You just lost
a recent convert. So sad.
Posted by xcess007 (8 comments )
Reply Link Flag
Um.. its Apple
If you didn't know Apple does this on a regular basis you must be new to Apple.. They have been doing this since the first gen iMacs.

I was watching the store today, and you could buy a now iPod Classic for the regular price, checkout and everything and now its 100 bucks cheaper.

Its the same with anythng you buy now.. cars, food, cloths... sale one day, price cut another.. welcome to America!
Posted by MacManBen (2 comments )
Link Flag
did your iMac somehow break?
How does Apple's pricing change on the iPhone reflect on your
iMac purchase?

I believe that the iPod touch helps Apple reduce the cost of the
iPhone, enough that they can reduce the price and maintain
reasonable profit margin on the iPhone.

I think folks like you put Apple in a no-win scenario. If Apple
didn't drop the price, folks would continue to complain. When
Apple does drop the price, folks continue to complain.

Do you also stop going to your grocery store because the steak
you bought last month is now cheaper? Its silly reasoning.
Posted by m.meister (278 comments )
Link Flag
Only 16 Gigs?
I believe these are now using Flash memory so no moving parts but only 16 Gigs for $399 for a Music/Video Device is just way to low. I will be holding off until that is increased, especially if its wi-fi and can download YouTube Videos.. I can see 16 gig filling up to quick. I'll stick with the 80 Gig iPod Classic and not that its 100 buck cheaper I'm sure more people will buy that then this new one.
Posted by MacManBen (2 comments )
Reply Link Flag
80 Gig iPod Classic for $299?
Wow MacManBen, get me 10 of those for me if you can.
Posted by rad91 (21 comments )
Link Flag
Needs at least 40 gigs.
I was wanting a widescreen ipod, But I have 12.5 gigs on my itunes
and 8 gigs in pictures, So I would fill up the new ipod the day I
bought it.
I will wait until a 40 gig or larger model is out before I buy one.
Posted by Vonmaxx (38 comments )
Link Flag
THIS was worth waiting for
I'll likely be looking very closely at the iTouch. If I can get third party apps like checking, notes, etc, on it, then I'll be a happy camper. All the neat features of the iPhone but without the phone portion dragging you down.

The immediate price cuts on the existing iPhone models do smart though. Early adopters got screwed there. :/

Anyways, I won't be waiting in any lines, but I will likely buy one of the 4gb iTouch models. I don't have any need for music on it or video either, but the rest is good.
Posted by Vegaman_Dan (6683 comments )
Reply Link Flag
Bad news
The early news is that Apple has the same stupid limitations for third party developers. You can get widgets for Safari but nothing else just like the iPhone. Until Apple gets over this throwback to the Lisa development mentality (i.e. only apps from Apple are needed), the iPod Touch is a seriously crippled device. Very pretty and a nice package of technology but they seem to forget that Apple was saved by third party apps for the Mac and would not exist today without them.
Posted by Steve Bryan (92 comments )
Link Flag
Hmmmm... Can't sell 500,000?
Just like I said; they pulled a Sony. Very few can afford a $600 phone, game console, etc. All the !wow! aside as a phone it doesn't improve the status quo at all. Can't sell the targeted 500,000? Drop the price...genius. At least they moved quickly to correct the problem. If only Sony would learn the lesson...

I think it's fitting justice to all of those Apple fanbois who paid their Steve Jobs tithe. Like lemmings off a cliff... Enjoy the satisfaction of being the first with a phone that doesn't do anything more than any other phone (in fact in a lot of ways less) aside from having a pretty face. (oh and you might want to check your voice mail now since you have no indicator on the phone that you have anything waiting... I'm sure there are a ton of third parties out there that will remedy this shortfall with a web app in Safari! Ha!)

Goooooooo Steve! :)
Posted by kojacked (1129 comments )
Reply Link Flag
maybe, for those that failed at math
Apple's iPhone was the best selling smart phone in July and
Apple is expected to sell their 1 millionth iPhone by Sep 30.

If your statement was accurate, they'll need to sell more than
600,000 iPhones in 25 days. OR they've sold a lot more than
500,000 phones and the price drop will push them well beyond
the 1 million mark in 25 days.

Apple's plan is to sell millions of iPhones this Christmas season.
Everyone complained about the price being too high -- Apple
agreed, and yet you still complain.

The iPod touch is not a replacement for the iPhone. It doesn't
have speaker/mic needed for TALKING. Instead, it is exactly
what people asked of Apple: please give us in iPod with iPhone
interface, but without the phone. And again, Apple listened.

Shame on Apple for listening to and providing what its
customers asked for.
Posted by m.meister (278 comments )
Link Flag
Only 9 articles about Apple today on CNet?
More! I demand more!
Posted by mypalmike (25 comments )
Reply Link Flag
hmmm
like I said, I knew the price would come down eventually but this
soon is an insult. I'm canceling my contract and returning the imac
I just bought and yes, I'm done with apple.
Posted by xcess007 (8 comments )
Reply Link Flag
oh to add
yes i am new to apple but i learned my lesson. I admit it I was a
sucker. Nice feeling. Bye apple
Posted by xcess007 (8 comments )
Link Flag
oops
you forgot to listen to everyone on this forum warn against getting the first generation of a product. That will teach you.
Posted by shoffmueller (236 comments )
Link Flag
NOT IN WHITE ????
The iPod Classic comes in silver and black, but not in white. Let me just repeat. Apple's iPod Classic comes in silver and black, but not in white.

What??!!

THE NEW IPOD ISN'T AVAILABLE IN WHITE!!!!!

*collapses*
Posted by la_aliaj (1 comment )
Reply Link Flag
Reply to NOT IN WHITE????
Silver and Black? Jobs has outed himself as a Raider Fan.
Posted by boedicca (1 comment )
Link Flag
Confusing
Too much product overlap.
Will any consumers buy an iPhone and an iPod?
Without the price cut, I think this would have done in the iPhone.
Kinda' strange.
Posted by pierce200 (18 comments )
Reply Link Flag
an iphone for me...
... an ipod touch for the wife, a few nanos for the kids. A shuffle for the dog. They know what they're doing.
Posted by shoffmueller (236 comments )
Link Flag
Where's the 16gb Nano?
Boy, this sucks! Creative has a 16gb player but Apple doesn't.
Posted by lingsun (482 comments )
Reply Link Flag
iTouch does 16 Gb.
buy the itouch: &lt;<a class="jive-link-external" href="http://www.apple.com/ipodtouch/" target="_newWindow">http://www.apple.com/ipodtouch/</a>&gt; it's 16 Gb
Posted by afterhours (215 comments )
Link Flag
Where's the 160GB Zen?
Boy, this sucks! Apple has a 160gb player but Creative doesn't.

;-)
Posted by open-mind (1027 comments )
Link Flag
Apple cares more about video than music
These are some pretty pricey ipods just to play video. I don't get it. They don't seem to care much about being able to play music.
Posted by lingsun (482 comments )
Reply Link Flag
80GB of Music for $250
Are you serious?

Maybe you should get a 30GB Zune for only $200.
Posted by open-mind (1027 comments )
Link Flag
Why are you surprised?
The YouTube explosion has a lot to do with that. Everyone is trying to figure out how to make a buck off of video.

Even conservative companies are considering daily YouTube manager to investor pep talks, video employee handbooks, and re playable staff meetings. *barf*

For the next few years the challenge will be separating video idea fad vs video idea gold.
Posted by bwvla (166 comments )
Link Flag
Marketing Missteps
IMHO Apple made major marketing missteps in announcing their latest-generation iPod Touch audio-video player with substantially less storage capacity than both older generation iPods and the ?new? iPod Classic. Not including an FM tuner in their latest generation iPod was another big mistake. An 80GB or 160GB iPod Touch would have allowed you to store ALL your music files, numerous videos and your entire digital photo library on one sleek, attractive, portable multi-media device with a gorgeous screen. You can?t do that with only the 8GB or 16GB of storage currently offered with the iPod Touch.

Everyone knows Apple has the ability TODAY to include an 80GB or 160GB micro hard disk drive in the iPod Touch. Increased storage capacity that is critically required for storing the type of multi-media information (videos, photos, and, of course, thousands of audio files) for which the gorgeous 3.5? video screen on the iPod Touch seems so perfectly suited. But, instead, Apple chose to offer two models of the iPod Touch with only a paltry 8GB or 16GB of flash memory instead. Big mistake. Many current iPod owners have 10 GB or even 20 GB of music files today. Why would anyone purchase a new iPod Touch with the ability to store and display videos and photos in addition to playing audio files when it has LESS memory than their current 2-3 year-old iPod? Doesn?t make sense.

I understand WHY Apple chose this strategy. Apple obviously didn?t want to cannibalize sales of its new iPhone, which is nearly identical in appearance and features to the iPod Touch with the addition of cell phone functionality. They wanted the iPhone to be the step-up purchase decision over an iPod Touch ? for an additional $100 you get an iPod Touch PLUS a cell phone and wireless internet capabilities. The iPhone only comes with 4 GB or 8 GB of flash memory for good reason. Cell phones get dropped, tossed on tables, and abused daily. ?You can?t put a hard drive in a cell phone!? Apple engineers no doubt exclaimed! So, they went with much more rugged, reliable and smaller capacity NAND flash memory for the iPhone. In addition to the step-up marketing strategy angle, using flash memory instead of micro hard disks also increased the battery life of both the iPhone and the iPod Touch. For the iPhone, battery life (talk time) is critical. But I could easily live with 16, 12 or even 10 hours audio playback time on an iPod Touch with an 80 GB or 160 GB micro hard disk instead of 22 hours for an iPod Touch with 8 or 16 GB of flash memory.

Finally, Apple drops the price of the iPhone by $200 just two months after it?s first offered for sale! Great for enticing new customers, but anyone who just bought an iPhone has got to be royally upset. I?m guessing AT&#38;T customers will try taking advantage of their 30-day exchange policies and exchanging their ?expensive? iPhone for ?new? $200-cheaper iPhone. And what does this do for the profit model for iPhone sales? Seems like sales would have to at least double or triple just to maintain the same income flow into Apple corporate coffers. Fixed fabrication costs could not have dropped by $200 in just a couple months. Oh - and why not offer a 16GB iPhone? Or 3G capability?

Apple will, without a doubt, offer much higher-capacity iPod Touch devices within a year ? possibly sooner ? at about the same price as today?s models. And everyone knows it. I think many people will wait for that inevitable second-generation iPod Touch with much greater storage capacity. I know I will.
Posted by Technaut (1 comment )
Reply Link Flag
Spinning HD Way Too Slow
That's why I don't think you will ever see it in an iPhone or iPod Touch, or any other UNIX based multi-touch device they may create.

If they could just drop in a HD, don't you think they would?

The instant-response touch GUI that everyone loves depends on very fast storage. If you take away the fast storage, I don't think it will work. It would stall and pause and feel disconnected from the user's fingers. People would hate it. IMHO.
Posted by open-mind (1027 comments )
Link Flag
re: Marketing Missteps
""Why would anyone purchase a new iPod Touch with the ability to store and display videos and photos in addition to playing audio files when it has LESS memory than their current 2-3 year-old iPod? Doesn?t make sense.""

Perhaps b/c their 2-3 year old ipod doesn't have wifi and can't go online to access Google, Yahoo, stock quotes, and other such portals to information. It's not like it's a complete downgrade. Moreso a sidegrade.

I suppose Apple could make an Ipod Supreme with the storage of the new 160GB classic ipod + iphone capabilities of internet, phone and other wondrous stuff, but I'm sure as well they most certainly have their reasons for NOT doing so. My takes......
1) if they made a supreme device such as that, they wouldn't outpace their product line. You've already introduced the cream of the crop. Where are you going to go 3 years down the line? Unlike how say... desktop/laptop computers get innovations, handheld devices like mp3 players don't work that like.
2) They need to cater to the lowest common denominator. If a theoretical "Ipod Supreme" were to come out at say $800, would u buy it? Would anyone else? That would turn a mainstream device into something only for a niche market. Despite the higher price, ppl do spring for an 80GB ipod video

Also. I thought the iphone used flash b/c of the other cellphone components that needed to be crammed into such a small space. Not b/c of how fragile microdrives are. I toss my phone around, but that's b/c it's a Motorola v188 i got for free and about to replace anyways. If it were more pricier, like &gt;$100, and more fragile, like it was a camera phone with lenses and digicam components, I'd def be more careful with it, and i'm s\ure so would every1 else.
Posted by ackmondual (199 comments )
Link Flag
Excellent summation
You encapsulated the problem with Apple and the iPod quite nicely. I was quite surprised to see how small the hard drive was, especially after MS lowered the price on the Zune. Was considering a Zune anyway, so this might solidfy the deal.
Posted by MrKhaki (14 comments )
Link Flag
Math
What?? I hope that was sarcasm, because buying and iPod for $50 more than the Zune, you will have 50 more GB! As much as I want to see someone show a good price comparison aginst Apple, yours wasnt the best.
Posted by Hardrada (359 comments )
Reply Link Flag
Apple rules!
Gogo Apple!!! Gogo jobs!!! Apple is the best company!
Posted by Karl Viklund (51 comments )
Reply Link Flag
Baaaaaaah.
"Gogo Apple!!! Gogo jobs!!! Apple is the best company!"

... at taking as much money as they can from their customes and then flipping them the bird.

They care about their customers a lot... and a lot more about their wallets.

$200 price drop. Discontinuing the 4Gb iPhone only two months into sales life. Wow.

But I got to hand it to them, the sheep went willingly to be fleeced.
Posted by Vegaman_Dan (6683 comments )
Link Flag
It's missing e-mail
On a WiFi device, e-mail seems to be something they would have
logically included. It's the only glaring thing missing from this
absolutely fabulous device.
Posted by appledogx--2008 (92 comments )
Reply Link Flag
Slow sales = huge discounts = screwed iDiots
Wow, sure glad I didn't stand in a line to pay an extra $200 for an iPhone. Of course, you could have skipped the line and walked right in and bought one, for an extra $200. Or just waited and bought one now for a still overpriced $300. With a supposed 3 million iPhones on hand at product launch, 2.5 million of those were collecting dust a month after the launch, so a month later what do you get? A fire sale. I guess the unannounced August sales were even worse than the July (220,000 units) sales. Of course, the fact that apple can cut the price by $200 2 months after the launch shows how much they were ripping the iDiots off in the first place. Now, all you early adopters, don't you feel iPhowned!
Posted by Magicland (603 comments )
Reply Link Flag
Typo
Make that $300 = $400
Posted by Magicland (603 comments )
Link Flag
re
What's the point in whining about it? If it isn't something you want, then what does it matter if the price is higher than you are willing to pay? You are not in the target market in that case, and as such, your opinion is unimportant.
Posted by felixderkater (24 comments )
Link Flag
Would you like some cheese with that whine?
Whine, whine, whine, complain, complain, complain.

Good Job Apple! I don't care what all the whiners say, you guys
are kicking serious butt! The new products are great and I am so
thankful I bought aapl at $22.50.

<a class="jive-link-external" href="http://money.cnn.com/quote/quote.html?" target="_newWindow">http://money.cnn.com/quote/quote.html?</a>
symb=AAPL&#38;time=3yr

Does this look like a company that is in trouble?

I love reading all of the experts telling us all what Apple is doing
wrong and how their products don't stack up.

They own 75% of the MP3 market and the highest customer
satisfaction rating among MP3 players in the market.

Their computers AND software really kick butt and have been
gaining market share in a big way. Apple has the highest
customer satisfaction rating in computers.

The iPhone has had the fastest selling debut ever for a cell
phone and even though it is their fist generation, the iPhone has
the highest customer satisfaction rating among cell phones.

The experts will agree that Apple can do nothing right and
almost everybody here is whining and complaining about Apple,
but the proof is in the pudding and I will continue to laugh all
the way to the bank and be happy that Apple stock has more
than paid for all the Apple products I have purchased over the
years and then some.

Go Apple and all praise his worshipness and Apple savior Steve
Jobs!
Posted by Nodack (198 comments )
Reply Link Flag
Will Apple follow Sony's example?
Sony at one time was the king of all music players. Their computers were awesome. The PS1 and PS2 were fantastic. Their stock was through the roof and they could do no wrong.

Look at their reputation, their stock price, and consumer confidence today.

I really hope Apple takes a hint from Sony and learns that screwing their customers over is not the way to keep consumer confidence... or their repeat business.
Posted by Vegaman_Dan (6683 comments )
Link Flag
One fact is incorrect
heheh
Yer correct on Apple and they do make money.

..." but the proof is in the pudding...."

That is NOT correct.
The proof is EATING the pudding!

Congratz for buying Apple stocks at $22.50
I was dumping it and expecting them to go under. That's when MICROSOFT dumped 300 million in Apple stock so they can have a competition.
That Bill Gates is a smart cookie.
Posted by webkruzer1 (9 comments )
Link Flag
iPod Pricing is always king
I think that the drop in the price of the iPhone is absolutely logical. First, the iPod is a critical part of the Apple business model. The top of the line iPod has pretty consistently been sub $400. So if the new 8gig iPod touch is $300 then it is going to be a pretty tall order to ask people to pay an extra $300 for phone and email, on top of a service agreement. It seems that the iPod is driving the pricing of the iPhone not overall sales.

On a separate note, I do feel that there is no real compelling reason to upgrade for us 5g iPod users. the iPod classic is really just a cosmetic improvement and the touch, though beautiful, has too little capacity. I am going to stay with mine until we see a 60gig touch (or go the iPhone route once it gets 3G capability).
Posted by Andreas Graham (14 comments )
Reply Link Flag
iPhone price drop
Price drops a few months after the fact are not uncommon.

It is not the best practice, but maybe Jobs figured out the the iPhone doesn't have as many features as some of the other phones int he $400 range and is adjusting the price to reflect reality.
Posted by The_Decider (3097 comments )
Reply Link Flag
Nah, that's not it...
The iPhone has tons of features, more features than any phone at the $399 spot.

He dropped the price to "go for it" during the christmas season. The new 8GB Touch iPod is $299, so basically you can now get the same model, with email and a phone for $99 more.

Such a deal. But if he had left the iPhones at $499/$599, it would have been less attractive.

Thus everyone gets the better price.

-
Posted by OS11 (844 comments )
Link Flag
new iPodnano pricing game
Ihave been an apple customer since the days of Quadras, and CXII. I have always supported apple products for their integrity and quality.
Lately, perhaps it is the sign of the times...but something tells me there is an inequity on how they (Apple) are "roasting their market. True the conventional adage is that: We (Apple) did not force you to buy our products...clearly does not apply here. Here's my complaint: I just bought a new iPodnano Sunday, Sep2. On Sep 5 or 6th they announced the new release. My core complaint is while in the store (Montgomery Mall, Maryland), there was no indication as to the new arrivals.
I learned of it Monday the 3rd about this possibility. My issue is the sales staff at the store new about this, I guess they are not obligated to tell the customers what's down the pike? Really? Obligated? Okay I can deal with that. However, being a long longtime customer of Apple, I guess doesn't make a difference anymore - since looking out for your customers best interest is not applicable today maybe?

But it gets better. On Sep.7th, I call the Apple store at Montgomery Mall (after searching the apple online inquiry as to what and where I could speak to someone about this misinformation). The manager on duty was too busy to take my call so she asked me to hold on. I waited for 30 minutes...no answer. So I called back. First of all, my intention was not to exchange my purchase, but merely to find out where or what address I can email my concern to. Again she said "I am so innudated with customers I cannot get address your concern at this minute." All I said was that's cool, however, I have waited on the line for good 30 minutes and all I would like is an email address and to whom I can write to about this issue. Her answer: sorry I really don't have the time right now to give you an answer.

I guess my main complaint question is with all this "contact us" info on their website...what good is it when it is not meant to be "customer friendly" when it comes to their pricing policies and sales tactics. Steve Jobs claims he received hundreds of emails about the iPhone pricing...so what about selling your old line at a full price and only to notifed that with the same amount of money I could have purchased a newer model.
I guess they are not obligated to inform their long-time customers of their savy sales techniques.

Thanks Apple. It's nice to know you are being "taken" (cared of is optional)
Posted by marianolim (1 comment )
Reply Link Flag
Welcome to the business world.
I'm afraid that it's quite true- Apple does not care about you or your issues, only your money.

That's pretty common these days in the business world and there simply isn't any excuse for it.

The only way you can really make your concerns known is to vote with your dollars.
Posted by Vegaman_Dan (6683 comments )
Link Flag
The new iphone "iphone 3g" will be priced $199. $199 for 8gb and $299 for 16gb this was said by apple's website. Atandt will still be the only service provider. It has the same features of the old iphone plus more features andmore improvements and new colors black for 8gb and white for 16gb. apple and atandt are releasing this on july 11 2008 and so will t-mobile , O2, etc. but not the t-mobile for u.s. the t-mobile for germany etc. and O2 for uk. Atandt is only service provider to sell iphone is u.s.
Posted by cnetlover22 (1 comment )
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