Boy am I glad that forums like this exist, so we can all air out how we feel about important issues like these. I thought I was going to have to bottle up my mixed feelings about the iPod Minis until I broke down and bought the 15 GB iPod 🙁
At any rate, speaking as a marketing major, I can only say that I agree with Splashman, Apple is targeting a certain market, and I'm pretty sure that all of us who are disapointed right now aren't in that target market. We're all really bummed, asking ourselves how Apple could be so foolish. Well, after setting my dissapointment aside, and putting my marketing cap on, I considered the following:
1. Apple wants the biggest bang for the buck right now, and knows that it has a near stranglehold over the GENERAL POPULATION Market with thier iPods. Frankly, the vast majority of people who buy iPods aren't all of us on these forums or watching Apple's new releases with frevor. It's the everyday joes and sally's who want one of those mp3 thingies, becasue they're cool, will hold all of their music, and are clearly a better and stylish value over all the other mp3 players in the market. Those consumers are the ones who are walking in the ritzy malls and cities where the Apple Stores reside. They are the ones who are more than willing to buy the $249 iPod mini because of it's style and size. They're the same people who buy Gucci handbags, Bose Radios, drive nice SUV's or Cars, and don't think twice about the price when they see the pink or blue iPod Mini.
2. Apple has been positioning itself in a very advantageous place ever since Steve Jobs came back to the helm. If anyone has ever read "Trading Up", a very recent Market Analysis book that came out in March, you will understand what I'm about to describe (I highly recommend that book. Trading Up, it can be found in the business section). Apple has found the proper blend of form and function, and frankly, is becoming more well known as producing the BMW of computers. If you want a computer that is the creme de le creme of the industry, you buy a Mac, hands down. That is why Apple can charge more than the other guys, and get it too. Consumers who feel an emotional connection to the company, are willing to pay the money to have the Apple Product. Consumers who want the unique blend of style and technology are also willing to pay the price. That's why the new iMac has been such a success, and why the iPod owns the mp3 player market. For example, take my state, Michigan. We've got two Apple Stores. One in Novi's Twelve Oaks Mall, and one in Troy's Summerset Mall. Both are in Metro Detroit, smack right in the middle of two of the most affulent Detroit subarbs, where the Upper Class and Upper Middle Class like to shop. This is where the SUV driving, Gucci wearing people will go to buy thier iPod minis. They will put those stores out of stock without question. That is who Apple is selling these iPod minis to. That is why they will crush that market segment. They are marketing those iPod minis to the people who will buy them in droves, and who haven't even heard of Rio, and who think that a Nomad is a desert wanderer and a Zen is a state of mind.
3. For all of us who were hoping for a iPod that we could get for $149, well, I don't know what we're going to do. We're the type of people who sum up our feelings in Gigabite/$$ comparisons like wPod. I wanted a 2 GB iPod I could take to the Gym, and would have happily paid $149 for it, or maybe even $200. But, Apple is looking to stay with it's high class, high profit approach. As a business owner myself, I applaud them for it. I want Apple to succeed so that I can continue to buy and use their products. I think that our best bet is to go somewhere like Best Buy or CompUSA, get one of their no-interest deals on a Credit Card deal, and pick up the 15GB iPod. If anything, that may have been Steve Job's message to all of us: "Hey guys, get your head's out of your a$$, and buy a 15GB iPod, we can't feasably make enough money on a cheapo iPod." And that may be true. Or Jobs may have the 2GB iPod card up his sleeve for a future release. He could drop the price on the iPod minis down to $199. I predict this happening before the next Holiday Season, along with the introduction of a 6GB or 8GB iPod mini for $249, along with a revamp of the regular iPod line, 15GB @ $299, 40GB @ $399, & 60 or 80GB @ $499. If we're lucky, Apple will go ahead and introduce a lesser priced version of the iPod mini at a 2GB rate for $99 or something, but I doubt this.
So, my recommendation to the naysayers, is to keep the faith, Apple knows what it's doing. The market has changed since 1984, and Apple has SURVIVED this long beacause of this kind of approach. Read Trading Up, it'll show Apple's seemingly dumbass moves for the brilliance they truely are.
Me, I'm going to Best Buy to get my 15GB iPod when it comes out. I need some music for the gym. Or maybe a 20GB since I want the dock too 😉
Uncle Ted