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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 :).


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