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Apple slashed iPod prices

25 February 2005 10:54 by Lasse "cd-rw.org" Penttinen | 2 comments

Competition in the music player market is heating, as Apple uses it's market leader muscle to drop the prices. At $199 the iPod mini should be at par or cheaper than the lesser known copetitors. This is a significant price cut of about 25%. Analysts suggest that with more aggressive pricing, Apple is going to hold it's dominant position in this field for quite some time.

"They're at war with the world," said Enderle. "All [competitors] have to do is collectively take 15 percent to 20 percent of the market, and investors would react dramatically to that kind of drop. Consumers are fickle."

Still, analysts lauded Apple for dropping its prices and leaving competitors struggling for some kind of edge against a company that's put its marketing might into keeping consumers hooked on its hot product and the music that goes into it.

The success of Apple's music store, iTunes, also is a direct result of the spread of the iPod.

Source: Technewsworld.com

I have to point out here that, personally I have never understood why I should carry yet another gadget in my pocket just for music? Modern cellular phones have been able to act as an MP3 or AAC audio player for years, not to mention the PDAs..

Permalink to this article

Creative sold 2 million MP3 players in Q1 (22 April 2005)

Record executives upset with Apple? (15 April 2005)

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Discuss this article!
MXGzX (Member) 25 February 2005 11:23
Finally they are dropping prices....still expensive but w/e they will be able to compete better with things like the creative zen. [ + quote]
nanu-nanu (Inactive) 25 February 2005 12:57
oh man I can see the blood flying from this "slashing" wupty-freak'n-do...the ipod mini is now 199$ instead of 249$ hey Apple thanks for the big break. [ + quote]