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New iPods
Authored by: dlelash on Jan 07, '04 03:06:41AM
But... if Apple loses a $250 sale to themselves, in favor of a $300 sale, wouldn't that be a good thing? IMHO, the only sales revenue they stand to lose is from those who would have bought at $300 and now buy at $250, and how many is that, really? They will gain people who will bite at $250 rather than $300, and people who want the smaller size. Nothing wrong with expanding market dominance down...

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New iPods
Authored by: robg on Jan 07, '04 10:32:30AM

I think my perspective is that they'll miss out on most of that 31% that Steve said they're going after. They're priced $50 above the high price point. Yes, you get more (much more), but if you were to dig into that 31% slice, you'd find that the average selling price is nowhere near the high selling price -- it's probably closer to $149 than $199 (perhaps even lower).

So now, instead of just a $50 bump for all the extra features, it's a $100 (or more) bump ... and for most people, that's a different purchasing decision. So while I think Apple will be quite successful at cherry picking the top tier of that 31% slice, the vast majority within it will probably not change their purchase behavior -- there's too much of a price jump.

I guess we'll see how well it's accepted :).

-rob.



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