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Originally posted by jxyama
i really hate to be picky, but i also don't want some people to get expectations of un-appleish price drop. (and then complain when it doesn't materialize) if the demand would be "through the roof due to iTMS," why would you drop the price?

I have to say that I think what is happening now in online music sales and mp3 players sales is a land grab for market share and *not* strictly to maintain high margins. I'm the guy usuallly arguing against increased market share in the computer segment because I'd rather have higher margin, better, innovative products. So in most instances, I would completely agree with you. However, I think Apple wants to own the mp3 player market. To do that, they must grab as much market share as they can, hence the *huge* marketing push.

Keep in mind that they are also pushing their format, AAC. It cannot be understated the significance that AAC vs WMA. Market share will determine how this will play out in the next few years.

That said, while I normally think profits and long term viability are the best for Apple and its customers, I just don't think they are heading down that road. This is a land grab for market share by my observations, which means they just might price themselves competitively. There will still be an Apple premium, but I would guess that it's not as large as it stands right now as un-Applish as that sounds.

Ask youself how Applish a partnership with McDonalds is?
 
Re: Other options?

Originally posted by dh9012
Smaller drives usually mean lower power consumption too.

Conversely, smaller drives tend to have slower access times as well. You take the good with the bad ...
 
maximum market share

Perhaps with the earth changes going on at Apple they could break away and give a design for a $150 restricted feature player ie "ePod" to some obscure Taiwanese manufacturer under license. Make it totally AAC/ iTMS compatable and put the new company straight on the MP3 world map as the first decent for-the-masses player for iTMS. Apple make money behind the scenes without detracting from the high end appeal of iPod, iTMS gets a major promo, and Apple get around the monopoly guys when they dominate the music store scene in a few years time.
 
Originally posted by greenstork
Keep in mind that they are also pushing their format, AAC. It cannot be understated the significance that AAC vs WMA. Market share will determine how this will play out in the next few years.

this, i forgot to consider. AAC gaining popularity would be a great thing. i ripped all of my CDs in AAC, thinking me and my ipod would be all i'd use... but i can't share my music with my gf (iTunes for windows helps... she has a dell) if she ever wants to buy a non-iPod portable player...
 
Does anyone understand how the hard drive market works? Announcing that they are going to double their production seems strange to me, coming from a market area where you produce according to demand...

I suppose their forecasts could show that demand is about to double, but the way it's phrased it sounds like production capacity is slightly more decoupled-- build them and then price to sell?
 
The article mentions hand-held GPS receivers as a market. Is this the typical Japanese throw a dart at the high tech dart board to decide a target market, or is there really a product out there?

Most GPS receivers, it seems, can transfer data through a serial port. Hardly the type of thing you'd need to strap a hard drive to for a days work...
 
A 1 incher drive would be very good for digital cameras don't you think?

Of course, Apple as stated more than once that it did not plan to enter the digital photography market. Too much competition and there is already mighty fine products out there.
 
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