A solid and positive interview.
Wish there were more like these... though this was awfully short.
Wish there were more like these... though this was awfully short.
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Steve Jobs, iTunes and Cheaper iPod?
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I thinkt that if they had the entry level model (10GB) at 199, the medium for 299 and the premium for 399, they would sell a LOT more iPods.
Price is pretty much the only factor holding people off on buying an iPod.
Lowering the price would bring sooo many more customers I think that Apple would still make a profit out of the price drop.
As a student, I can't really afford an iPod, but when I can get the 40GB one for 199, I'm going for it.
Price is pretty much the only factor holding people off on buying an iPod.
Lowering the price would bring sooo many more customers I think that Apple would still make a profit out of the price drop.
As a student, I can't really afford an iPod, but when I can get the 40GB one for 199, I'm going for it.
billyboy
macrumors 65816
If you want something bad enough you will find the money. As long as the iPod is the best piece of kit out there, and as long as the whole world continuously gets to hear about it through the universal iTMS, sales should go up up and away, and for the next couple of years at least, I think Apple would be crazy to be pressured into releasing a lower priced small, entry level iPod. As they make economies of scale, the margin on the current entry level iPods will rise, and then maybe the price of bigger iPods could come down slightly to lure people into buying bigger capacity iPods. But whatever they do they have to maintain their healthy margins, or improve on them if possible.
I bet that shortly after the holidays and before the Pepsi promo starts at the Super Bowl that we'll see a $50 or so price drop across the board. It's still not as low as people would like, but that's probably a reasonable amount to expect.
For months before I bought mine I balked at the price, but after actually getting one, I don't regret the money spent one bit. One thing that isn't appreciated enough is the fact you can use the iPod as a FireWire hard drive and I've found myself using that feature way more than I thought I would. For me, the 15GB model I have has been absolutely worth the $350 I spent on it.
For months before I bought mine I balked at the price, but after actually getting one, I don't regret the money spent one bit. One thing that isn't appreciated enough is the fact you can use the iPod as a FireWire hard drive and I've found myself using that feature way more than I thought I would. For me, the 15GB model I have has been absolutely worth the $350 I spent on it.
Photorun
macrumors 65816
$100 less
For each level, then they'd be considered reasonably priced, $199, $299, $399 and I'm sure they'd sell well. I had read in a couple places that iPods are almost 33% to 45% (bottom to top of line) profit. Just like most things Apple, there's huge profit margins, that's why they're 4.7 billion in the black where is, say, Gateway is deep in the red (or brown like cow poop). Jobs is a genius, but a maniacle greedy SOB, after all, most of HIS billions came during the hey day of the original Classic which each one sold was 1/2 all profit. Basically he's lying through his teeth, trust me, Apple's making a chunk of change, a rather big one on the 40 GB, probably about $200.
I picked up a refurb 10 GB second gen iPod from the Apple Store for $169. I was leary but it came in all new packaging, there wasn't a scratch on it, in fact, I showed it to people who thought it was all new. I've almost been thinking "refurb" meant someone had slide the box out of it's sleeve and back in, it's flawless. You can find some good deals and if every Apple refurb is as good as mine people should go forth and seek. There's deals out there. But I sympathise, I was holding out for $199 10 GB during a repricing, alas, typical Apple's (Jobs) high margins roll on.
For each level, then they'd be considered reasonably priced, $199, $299, $399 and I'm sure they'd sell well. I had read in a couple places that iPods are almost 33% to 45% (bottom to top of line) profit. Just like most things Apple, there's huge profit margins, that's why they're 4.7 billion in the black where is, say, Gateway is deep in the red (or brown like cow poop). Jobs is a genius, but a maniacle greedy SOB, after all, most of HIS billions came during the hey day of the original Classic which each one sold was 1/2 all profit. Basically he's lying through his teeth, trust me, Apple's making a chunk of change, a rather big one on the 40 GB, probably about $200.
I picked up a refurb 10 GB second gen iPod from the Apple Store for $169. I was leary but it came in all new packaging, there wasn't a scratch on it, in fact, I showed it to people who thought it was all new. I've almost been thinking "refurb" meant someone had slide the box out of it's sleeve and back in, it's flawless. You can find some good deals and if every Apple refurb is as good as mine people should go forth and seek. There's deals out there. But I sympathise, I was holding out for $199 10 GB during a repricing, alas, typical Apple's (Jobs) high margins roll on.
Re: iPod possibility
The only problem with that solution is that flash memory doesn't last all that long (it can't be written to too much before it's useless). I recall a thread on slashdot about a Linux box booting from CompactFlash and using it for logging, and most of the comments about it was that it's a great idea, but the flash would be dead pretty quickly from all of that writing.
The only problem with that solution is that flash memory doesn't last all that long (it can't be written to too much before it's useless). I recall a thread on slashdot about a Linux box booting from CompactFlash and using it for logging, and most of the comments about it was that it's a great idea, but the flash would be dead pretty quickly from all of that writing.
Also keep in mind that Apple has no real incentive to lower the price of the iPod at the moment. It is currently the best selling MP3 player and as long as quarterly results show the iPod to be *increasing* in marketshare, there is no reason to lower the price.
However, I think that Apple finally "gets it" when it comes to the marketshare/profit margin tradeoff. I think that the old days where Apple maintained 70% margins on products and an $11 billion revenue stream as a result are long gone. Products like iPod will steadily move down in price to compete.
But first, Apple has done the intelligent thing: built incredible value into the iPod. Sure it's more expensive, but you are getting such a superior product/user experience that currently the price is justified. When competition increases and prices fall, Apple will then (hopefully) be in a much better position to compete based on price.
However, I think that Apple finally "gets it" when it comes to the marketshare/profit margin tradeoff. I think that the old days where Apple maintained 70% margins on products and an $11 billion revenue stream as a result are long gone. Products like iPod will steadily move down in price to compete.
But first, Apple has done the intelligent thing: built incredible value into the iPod. Sure it's more expensive, but you are getting such a superior product/user experience that currently the price is justified. When competition increases and prices fall, Apple will then (hopefully) be in a much better position to compete based on price.
Wonder Boy
macrumors 6502a
Re: Re: Re: Re: Flash-based iPod
The iPod doesn't use a PCMCIA based drive. The form factor does actually matter. Honestly, I don't know if Toshiba still makes the 1.8" 5 GB drives but the fact that they sell a PCMCIA drive has nothing to do with the 1.8" drive.
The iPod doesn't use a PCMCIA based drive. The form factor does actually matter. Honestly, I don't know if Toshiba still makes the 1.8" 5 GB drives but the fact that they sell a PCMCIA drive has nothing to do with the 1.8" drive.
lmalave
macrumors 68000
Do you really think Apple is making at least 20% profit margin on the 40GB, 25% profit on the 20GB, and 33% profit on the 10GB. Those are *insanely* large profit margins in the electronics industry. Therefore, if Apple just lopped $100 off the price of each iPod model, they would be *losing* money with each sale. They would basically be taking a loss on the iPods in exchange for gaining more market share. But the iPods already have a 31% market share *and* are adding to Apple's profits, so I think Apple's marketing team has so far hit just the right balance.
Wow, this is just what I have been waiting for!
I would DEFINETELY run out and get an iPod tomorrow if they came down some in price, and so would A LOT of my windows friends too.
It isn't like i am poor, far from it, but I still think the iPods are all overpriced, even being as fab as they are. If they dropped 100 in price across the line, or if apple introduced, as the threat indicated, a new "base" line of iPods maybe topping out at 200 bucks, they would be flying off the shelves! Just leave out some of the bells and whistles and you could do it. C'mon steve, you are so close to ruling the music world!
I would DEFINETELY run out and get an iPod tomorrow if they came down some in price, and so would A LOT of my windows friends too.
It isn't like i am poor, far from it, but I still think the iPods are all overpriced, even being as fab as they are. If they dropped 100 in price across the line, or if apple introduced, as the threat indicated, a new "base" line of iPods maybe topping out at 200 bucks, they would be flying off the shelves! Just leave out some of the bells and whistles and you could do it. C'mon steve, you are so close to ruling the music world!
Re: Re: Re: Re: Re: Flash-based iPod
Yeah they do....
Take a look inside an iPod:
http://www.kodawarisan.com/ug/ipod/index.html
That is for the 2G iPods, but the 3G use the same drives 😛
Yeah they do....
Take a look inside an iPod:
http://www.kodawarisan.com/ug/ipod/index.html
That is for the 2G iPods, but the 3G use the same drives 😛
realityisterror
macrumors 65816
i've always wanted an ipod, but being 13, is a major obstacle. heck, it took me 14 months just to save up for a $949 imac. i agree that there should still be a 5GB ipod. for me, my music and a back-up of my entire home folder is about 800MB. even 2.5GB would be plenty for me (for now) a price point of $149 on a 5GB would be awesome
reality
reality
If you can't afford the $299 iPod, then you are Poor.
The MP3 players which have comparable features to the iPod - e.g. small form, large hard drive, cost about the same as the iPod. The cost of the components drives the cost of the players. That's not going to change anytime soon. The cost of the harddrive itself, if you wanted to purchase it alone, is about the cost of the iPod itself.
Sure, there are cheap DVD players. There are also $150 basketball shoes.
$300 for an iPod is not too high a price for the pure enjoyment of listening to YOUR music wherever you are.
Get a second job or get a better job if you can't afford the iPod.
The MP3 players which have comparable features to the iPod - e.g. small form, large hard drive, cost about the same as the iPod. The cost of the components drives the cost of the players. That's not going to change anytime soon. The cost of the harddrive itself, if you wanted to purchase it alone, is about the cost of the iPod itself.
Sure, there are cheap DVD players. There are also $150 basketball shoes.
$300 for an iPod is not too high a price for the pure enjoyment of listening to YOUR music wherever you are.
Get a second job or get a better job if you can't afford the iPod.
dongmin
macrumors 68000
the most insightful thread EVER!
If it were 100 bucks lower, I would buy it tomorrow. Really??
Perhaps a 20 GB iPod for $100, a 40 GB for $200, and a 60 GB for $300. Only time will tell, but if they can figure out how to drop their prices, Apple's market share of MP3 players wil skyrocket. Genius!
Or maybe at the next ipod product update they could do it like this: 10GB: $149, 20-30GB: $249, 40-60GB: $349. Or something like that...If the 10GB ipod's price was that low I'd pick it up in a heart beat. Brilliant!
they should just sell all the sizes of ipods..make it user costumizable, and have the 5g really cheap You don't say?!
I thinkt that if they had the entry level model (10GB) at 199, the medium for 299 and the premium for 399, they would sell a LOT more iPods. So let me get this straight. if they LOWERED the price, they'd sell more??? Amazing!
if they made a 3rd gen ipod thats 5 gig with a dock for $150 id buy it True dat.
$100 less Hooray!
I don't know about $100 iPod. $199 iPod sounds more reasonable and feasible. Wise words.
If it were 100 bucks lower, I would buy it tomorrow. Really??
Perhaps a 20 GB iPod for $100, a 40 GB for $200, and a 60 GB for $300. Only time will tell, but if they can figure out how to drop their prices, Apple's market share of MP3 players wil skyrocket. Genius!
Or maybe at the next ipod product update they could do it like this: 10GB: $149, 20-30GB: $249, 40-60GB: $349. Or something like that...If the 10GB ipod's price was that low I'd pick it up in a heart beat. Brilliant!
they should just sell all the sizes of ipods..make it user costumizable, and have the 5g really cheap You don't say?!
I thinkt that if they had the entry level model (10GB) at 199, the medium for 299 and the premium for 399, they would sell a LOT more iPods. So let me get this straight. if they LOWERED the price, they'd sell more??? Amazing!
if they made a 3rd gen ipod thats 5 gig with a dock for $150 id buy it True dat.
$100 less Hooray!
I don't know about $100 iPod. $199 iPod sounds more reasonable and feasible. Wise words.
Re: Re: Okay -- Steve is in la-la land
Toshiba still makes the 5GB 1.8" hard drive and there is also a 15GB drive. Apple is simply keeping the iPod as a premium priced product.
Where is there a rule that states the iPod has to have a hard drive? Apple could make a digital music player Apple for considerably less without using a hard drive and attract a much larger customer base. As of yet Apple has chosen not to do that. If Apple continues to only sell highend portable digital music players, then other companies, with much lower prices, will push Apple into a small niche eventually. Look at what happened with CD players. How many $300 or $400 portable CD players do you see in stores? Or notice what happened to recordable video and DVD player sales when entry level prices moved to under $100, sales exploded.
Toshiba still makes the 5GB 1.8" hard drive and there is also a 15GB drive. Apple is simply keeping the iPod as a premium priced product.
Where is there a rule that states the iPod has to have a hard drive? Apple could make a digital music player Apple for considerably less without using a hard drive and attract a much larger customer base. As of yet Apple has chosen not to do that. If Apple continues to only sell highend portable digital music players, then other companies, with much lower prices, will push Apple into a small niche eventually. Look at what happened with CD players. How many $300 or $400 portable CD players do you see in stores? Or notice what happened to recordable video and DVD player sales when entry level prices moved to under $100, sales exploded.
Re: Re: Re: Re: Re: Flash-based iPod
Toshiba still makes the 1.8" 5 GB embedded hard drive and Apple could still use it, but Apple chose to go with only a slimmer iPod selling at higher prices.
Toshiba still makes the 1.8" 5 GB embedded hard drive and Apple could still use it, but Apple chose to go with only a slimmer iPod selling at higher prices.
Dippo
macrumors 65816
$199 would be a nice price
I would certianly pay $199 for an iPod, but I don't listen to music enough to justify $299 for an iPod.
If Apple doesn't want to lower prices, they should improve the iPod to come inline with prices. If Apple could just add video playback to the iPod, I could justify up to like $500 for it then.
I know this idea has been beat to death, but it is the obvious evolution for the iPod.
I would certianly pay $199 for an iPod, but I don't listen to music enough to justify $299 for an iPod.
If Apple doesn't want to lower prices, they should improve the iPod to come inline with prices. If Apple could just add video playback to the iPod, I could justify up to like $500 for it then.
I know this idea has been beat to death, but it is the obvious evolution for the iPod.
IMO, Apple could produce a lower priced iPod-like device right now (similar to the flash-memory based players). However, they may be holding back because a device like that would cannibalize a certain percentage of sales from their higher-price models. So, I suspect that they are watching market share, profit margins, and buying trends and waiting until a crossover occurs that would allow them to offer lower-priced products while at the same time increasing total profits.
However, if they are holding back I think this may be a bad idea. If Apple wants to remain a major player in the portable digital player market they need to make the AAC music format as popular and pervasive as possible. The only way to do that over the long term is too offer AAC-compatible players that compete over a full range of prices. If they don't do that and WMA grows to dominate the playback market (in set top players, portable players, number of encoded songs available on-line or total number of songs in user's hands) then the iPod could begin to slip into irrelevance. After all, it's the music that makes the iPod worth having. So just as the wide availability of Windows software makes the PC dominate so will music availability make or break any digital audio playback device. So, what we need (or what Apple needs) are AAC compatible devices at price points between $100 and $200. I think they'll need such devices very soon (like yesterday) and in another year the price should be under $100. Whether these are introduced by Apple or by a third-party is probably unimportant (in fact, a third-party might be more desirable), but AAC playback has to become available at all price points.
Oh, I know that the iPod can play MP3's and that MP3 is probably the most popular format today (by far), however I think the next battleground is going to be WMA versus AAC, and AAC needs to remain strong if Apple wants to continue in the music playback business. Either that or Apple should just convert over to WMA and then the question of music availability and choice becomes mute (then just let the "best" music player win).
However, if they are holding back I think this may be a bad idea. If Apple wants to remain a major player in the portable digital player market they need to make the AAC music format as popular and pervasive as possible. The only way to do that over the long term is too offer AAC-compatible players that compete over a full range of prices. If they don't do that and WMA grows to dominate the playback market (in set top players, portable players, number of encoded songs available on-line or total number of songs in user's hands) then the iPod could begin to slip into irrelevance. After all, it's the music that makes the iPod worth having. So just as the wide availability of Windows software makes the PC dominate so will music availability make or break any digital audio playback device. So, what we need (or what Apple needs) are AAC compatible devices at price points between $100 and $200. I think they'll need such devices very soon (like yesterday) and in another year the price should be under $100. Whether these are introduced by Apple or by a third-party is probably unimportant (in fact, a third-party might be more desirable), but AAC playback has to become available at all price points.
Oh, I know that the iPod can play MP3's and that MP3 is probably the most popular format today (by far), however I think the next battleground is going to be WMA versus AAC, and AAC needs to remain strong if Apple wants to continue in the music playback business. Either that or Apple should just convert over to WMA and then the question of music availability and choice becomes mute (then just let the "best" music player win).
ColoJohnBoy
macrumors 65816
Re: the most insightful thread EVER!
Thanks you for your sincere contribution. I know I appreciate it. 😉
Thanks you for your sincere contribution. I know I appreciate it. 😉