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?