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Feb 20, 08 - 11:17 am Comment from: Rich Apple person

Obviously Mr Weinberg does not understand marketing 101. When you reach product saturation this is a classic tactic plus we are in a tight economy right now. At $49 some current iPod owners may pick up a second iPod for the road. Let's also remember that there are ecomies of scale that are coming into play as prices of drives continue to decline.

Feb 20, 08 - 11:23 am Comment from: MikeK

""Why would anyone want a 1GB Shuffle anyway, when you can buy a 2GB for just £10 [US$20] more?"


-----------------------------

A better question is why would anyone buy iPod earbuds for $29 when you can get the earbuds and the shuffle together for $20 more?

No, the shuffle seeds the market for future upgrades - it creates value.

A product at every price level. Noone can point the finger at Apple and say their prices are too high. I think the move is brilliant. Most people that can afford it will go 2GB and higher, anyway. Over time, people seem to accumulate more than 1 iPod, anyway, and a lower price point on the entry level player encourages the behavior. One for the gym, one for the car, one for podcasts and audiobooks, etc. I'm sure a lot of people wish Apple would do this for their laptops at the $500 price point!

Feb 20, 08 - 11:27 am Comment from: DreamTheEndless

To quote from the article, "The simple solution would have been to discontinue the one-gig and replace it with the affordable two-gig [US$69]..."

That's a great idea... The only problem with that idea would be what to do with existing stock of 1gb shuffles when you introduced the 2gb shuffle. Perhaps, to resolve this issue, you could discount the 1gb shuffles by - well, let's say about $20 until you sold them. That'd probably work....

1 or 2 gig, not really much difference, you have to load a small subset of your music anyway. $50 might pull in a lot of impulse buyers.

Charging more because of the brand?
That's a popular myth about Apple products and one that isn't true. The new low price shuffle is proof of this

MDN Magic word: own. As in he got pwned by the take

Feb 20, 08 - 11:31 am Comment from: Mac-nugget

The shuffle is en entry level iPod with little control. It should not be expensive.

Feb 20, 08 - 11:31 am Comment from: cptnkirk

When Apple does this, it really means they're adding or soon going to add something new at the top. Hence the secret event coming up at the end of the month.

Feb 20, 08 - 11:32 am Comment from: s

How many people actually buys iPod shuffle? Probably not as much as other iPod models. At $49 per Shuffle, companies cangive them away as gift (at high quantities, I'm sure Apple can sell them at lower price). The record labels should start giving them away to stimulate the album sales. In the past record labels sold records and CD through a club, where members got discount but had to buy certain number of CDs per year. They can do same with digital download. Give away shuffle when the members sign up then allow the members to go to iTune and purchase albums at lower price (like Apple Store for Education) or just give them iTune gift certificates (but a problem with using a gift certificate is, you cannot prevent people from purchasing songs instead of album).

lowering the entry level price extends the Apple brand experience and iTunes to many more people.

+ reaches many existing iPod and iPhone owners to buy a second for the beach or the gym.

+ the new $50 mixed tape...

JUst my opinion but I feel that Apple wishes to get more of the general public / pc users into Apple. The curious will want to go to an Apple store and buy one of these low cost but elegant entry level iPods. While they are there they will discover the magic of Apple. Bottom line, increase in sales.

Ken

Maybe not selling as expected because some will prostitute themselves to get a nano instead? If the warehouses are full....

Feb 20, 08 - 11:41 am Comment from: qka

The under US$50 is a very sensitive price point. It's psychologically easier to spend $49 than $51, even though there is little actual difference.

This feeds into what others have said about offering 1GB Shuffles as premiums, prizes, and other sorts of giveaways.

This was a great marketing move by Apple.

Just a thought. Apple lowered the price to move the remaining product. Once all of the 1gb is gone the entry point will be 2gb.
It is not rocket science; it could be that simple.

Wouldn't it be great if the Shuffle could double as the remote control for your Mac?

An idea for you Cupertino...

Everyone knows Apple owns the high end of the music player market. By owning the low end as well, they can prevent a competitor for gaining a foothold there.

Beyond that, it's about branding and mind-share. Selling low end products means that Apple products are in more people's hands. Those low-end buyers may also buy laptops, Apple TVs, etc.

As long as Apple can cover the low end of the spectrum with a product simple and fool-proof enough that it won't be a drag on the company, they should do so. They can do this with the Shuffle, they can do this with Apple TV. Eventually (maybe sooner rather than later) they will do this with the iPhone. Laptops, by comparison, are too complex and prone to obsolescence and breakdown, for Apple to try and own the low end. That's why cheap competitors have been able to move in there. Apple's strategy is that users will grow tired of cheap machines, and move up to the Apple brand when/if they can.

the guy writes for a scum bag publication. so cut him some slack that he doesnt understand marketing or branded products.
1. harvest time for 1GB, harvest it.
2. clearup channel inventory to ensure it doesnt get discounted by retailers who get stuck with it
3. EOL it as stocks run out so no massive returns to apple.
4. the brand retains pole position on pricing, not the trade
5. he doesnt even mention the obvious to apple fans: this is the clearest sign that a new model is emerging that will take this ones place as the bottom of the line.
6. use purchasing economies of scale to ensure no one provides more value than you at the margin sensitive lower price range. eat Creative's lunch.
very clear, very straight forward, very apple (post elimination of the word computer from their name)

Feb 20, 08 - 11:50 am Comment from: silverhawk

"in danger of making themselves far too popular for their
own good?"

That is one of the more stupid comments I have ever had the misfortune to read.

Feb 20, 08 - 11:51 am Comment from: Mr. Peabody

So basically the message here is: Gee I won't buy or recommend Apple products because they're just too expensive, and I won't buy Apple stock because they're products are priced too low.

In other words - A Windows duped world just refuses to see anything except what it wants to see - or more accurately, what it's told to see and to say.

I ask yet again - why won't Windows just go away?

Yes, no more sleeping with the rich radio pundits. iPods are for the common John now.

Just my $0.02

Feb 20, 08 - 11:56 am Comment from: ericdano

Funny, no one said anything about MICROSOFT devaluing itself when it was blowing out Zunes......or XBoxes.......or just about any other piece of hardware they make and sell.

This is a good move on Apples part. There are many sub $50 players out in the market with screens. Make an entry level/2nd player more affordable and it can't go wrong. I would be tempted to have a 1G (refurb for an even better price) as a second...ok..third ipod.

"...are Apple not..."??? Shouldn't Apple be refered to as a singular entity..."IS Apple not...itself far too..."

Feb 20, 08 - 12:15 pm Comment from: Davewrite

As I've often posted Apple bashing is now in vogue.

No matter what it does the 'pundits' will bash it.

If Apple kept the old pricing for the new model they would have blared "Apple NO LONGER COMPETITIVE with low priced competitors" etc. etc.

Just a few months these 'experts' were lambasting Apple for having the shuffle too expensive for Christmas - 'no longer a popular stocking stuffer!'. Although ipod revenue INCREASED 17% Apple stock fell 30% due to these moronic "Apple is DOOMED" articles.

Today if you're Apple (in the minds of the pundits) you can't win.

If Apple invented a Star Trek MATTER TRANSPORTER the headlines will read "Apple transporter is a massive FAILURE, it does NOT do TIME TRAVEL as well! Apple is DOOMED!". Sheeeeesh.

umm. in case people haven't noticed...apple is ever expanding iTunes content. if you've never used a pmp before and want to start with the best and the lowest price...guess what, the shuffles got your number...and Apple is betting that once you get hooked on itunes content, you'll be shoe-in for better hardware down the line...isn't it obvious?!

"apple's expensive"

"apple's too cheap"

make up your dam mind!

Gave one of these to the ex -- who's now smitten with Apple products and may get a laptop next time she's in NY.

Anyway the guy here echoes the 'expensive Apple' FUD -- I've found over the years that properly spec'd purchases show Apple to be at least competitive, and mostly a biut cheaper.

Mid you, that's pro level I'm talking not cheapo off the back of a truck Dell level stuff.

Feb 20, 08 - 12:47 pm Comment from: jjjj

How dumb are the tech writers? Have you seen comparabe 1GB players? They are maybe $20-25, so the 1GB shuffle still appears overpriced. I bet the 1GB flash market probably won't exist much longer.

MattyG is right.

Feb 20, 08 - 12:57 pm Comment from: Demon

Apple must clear 1GB Shuffles from the channel before they discontinue it. How better to do with control Apple cuts the prices. Retailers cut the price 1GB Shuffles sell sell sell.

Microsoft works like this: Here's an extra 500,000 Zunes per store move them at cost or loss we'll pay you a spiff of $4900.00 per hundred not returned to us for restocking. We don't want them back so, give them away we don't care.

The 1 gig shuffle, now at $50 smakeroos, is the ideal collar clip unit for audiobooks, a few of your favorite albums, and some documents/resumes/presentations. Extremely ideal.
My original 512 white shuffle has saved my tail on numerous occasions. Libraries can now buy the new shuffle cheap and load audiobooks on them and rent the whole unit out. This little tiny unit is a treadmill users dream, as it doesn't have to go on an arm wrap...just clip it anywhere you desire.
The imagination is the limit for so many quick uses. It will also save your iPod for more important stuff.
I am still waiting on Apple to incorporate the whole shuffle into a slightly bigger set of headphones themselves. A whole new market will erupt.

Feb 20, 08 - 01:12 pm Comment from: MacRaven

First they bitch Apple's stuff is too expensive.

Now they bitch Apple's stuff is too inexpensive.

Some just like to bitch about Apple.

Feb 20, 08 - 01:13 pm Comment from: loopy_nj

Someone needs to explain the phrase "far too popular for their own good" and how this relates to selling a product. It's not like they can't make a zillion of the iPod Shuffles, so what's too popular?

I understand the writer's point, but it only makes sense if Apple is lowering its quality to make a $50 Shuffle. It isn't, so his point does not make sense. Of course, I did wonder why Apple didn't just drop the 1Gig Shuffle and keep the $70 price point, but for those kids in school, making it $20 cheaper, is significant. g;e wise it's huge. And, as others have noted, it allows people, like my brother, to give $50 Shuffles away to family members for Xmas, without thinking too hard on gifts to buy. He gave us all a 1st-Gen Shuffle a few years ago, that I still have.

Feb 20, 08 - 02:20 pm Comment from: KingMel

At the lower price, I might just buy one for travel, mowing the grass, etc. I was not willing to spend $79 (like the one that I got for my wife last year), but I just might spend $49.

The shuffle is a very nice device - small, well-focused, good battery life.

Someone above was spot on.

They are just emptying the inventory for 1GB.
It will be discontinued soon...

The whole point of the shuffle is not having sizable chunk of your music with you:

It's about having a audio player that affords high-quality playback, at an inexpensive [nearly throwaway] price point so that you needn't worry about losing or damaging it very much.

It's about having a device where you can sync the last day or two of your favorite podcasts, so you don't have to listen to the audio morass that is AM/FM radio these days on your commute to/from work.

It's about having your favorite workout music on a device where if it takes a tumble it'll still probably work and if it doesn't it costs about the same as a pair of shoes to replace.

It's about having a device that's small enough to clip to a shirt collar, pant pocket [or for the ladies] a purse strap, that you can throw the latest CD you bought [if you still buy physical media] and not have to put the original at risk of damage.

It about having a place to put that file you're working on at work or at the library so you will have access to it at home [and vice-versa]. [some of the thumb USB adaptors rock!].

Lastly, a shuffle is all about having a device that is just good enough that you don't have to put your more expensive Nano, 5G, Classic, Touch or iPhone on display and at risk of damage/theft.

It's a case of "if it dies, it DIES... And I go and buy a new one for $30 less or with twice the capacity for $10 cheaper!

$49 means that Junior can buy one [or another one] a week earlier. $49 means more "no brainer" stocking stuffers sold. $69 means some folks will opt for having twice the capacity for 1 $20 bill [and sales tax] more.

It's win win... Wish they'd double the RAM and cut prices on the 3G Nano's! I'd love to get a 16 or 32g Nano + Video. With the added video features, the Nano's could use more RAM.

-- Hano

Apple is obviously just blowing out their old inventory to clear the shelves prior to the next model announcement.

At $49, you've got a solid product competing against plastic (Zen Stone). Given the choice, I'd guess most people would go for an iPod. KingMel - go for it, that's exactly what I use my for.

Feb 20, 08 - 03:55 pm Comment from: shen

so lets see...

if you lower the price, you lower your standards.

thus Vista is incredible software. look at the price.

for $49, it is almost an impulse buy at the register. and who is going to buy one and then when they decide to upgrade to a screen choose a non-ipod? nobody.

heck at this price it is almost like the joke about joke dealers. first hit is free.....

Feb 20, 08 - 03:56 pm Comment from: shen

well said Hano.....

How do you get rid of the 1GB stock when you bring out the new and improved 2 GB Shuffle?

You discount the old stock and sell till they are gone. Then you announce they have been discontinued.

Some people are sooo stupid.

These Price Points are what I except for 2008.

Flash Memory Models

iPod Shuffle (1gb, 2gb) 49, 69

iPod Nano (8gb) 149

iPod Touch (16gb, 32gb) 299, 399

Hard Drive

iPod Classic (80gb, 160gb)

Apple doesn't even have to add new models. It would be a great way to phase them out until new iPods are announced.

Feb 20, 08 - 09:24 pm Comment from: ken1w

The iPod shuffle is almost a disposable item. People load 200 or so of their favorite songs and clip it on to go for a run or to the gym.

At $49, it costs less than your fancy Nike's. If it wears out, no big deal. Go get another one. Or keep a few on hand, filled with a different set of favorites or in different colors. At $49, it becomes part of your outfit... an accessory. And Apple will start selling them more and more to people who already have another iPod.

If the digital media player market is getting "saturated," it seems like a smart move.

Feb 21, 08 - 01:01 am Comment from: elgruga

Apple have sold about 150 million ipods. This is 'market saturation'?
There are 7 billion people on the planet - seems to me the market can go a bit further yet....

For a company that makes such GREAT products, they sure attract a lot of stupid 'pundits'.

Hey Mike K can read.

Actually, a 1 GB shuffle is just as good as a 2 GB shuffle.

1. The battery runs out (12 hours) before you run out of 1 GB of music (16 hours).

2. The shuffle is unique among iPods in that it will randomly download songs from a playlist that's larger than the shuffle's capacity.

3. While charging the shuffle, you can also download a new batch of music, at random. I use a playlist about 6 GB in size that's especially suited for running, which is mainly when I use the shuffle.

4. The randomness is important because random play is the best way to employ the shuffle, which is screenless. A random ordering of randomly selected music -- sounds like my life.

Wal-mart will sell you the equivalent of the old Nano (not shuffle, nano) for $29.95 now.

Sure the Apple product is nicer, but for many people it's not worth 5 times the price or $120 more.

So the shuffle at $49 is super premium pricing for what you get.