iLounge

41

“If iPods were still selling as hotly as last year then Apple would not have discounted the 4G prices by $100.

No manufacturer, and Apple especially, wants to reduce margins on high-ticket items unless forced to do so by weakening sales.”

You obviously have not ever taken an economics class, or if you did, you failed miserably.

the facts:

1. Ipod sales are more than twice what they were in 2003.  Apple retail has reported massive sales increases (mainly in ipods, but also in computers) of what it was last year, numbers that other retail (like best buy, which lost market share) would kill for. and thats just apple retail, not counting all the other places, like best buy and target that have tried to latch on to strong ipod sales.

2. The prices with ipods werent cut because of poor sales, but rather to ensure high sales. Its called being competitive, When an ipod is $500 and the zen is $200—people might not buy an ipod, or might not be able to afford one. However by making it 200 to $300, people will spend the extra amount for the ipod. Furthermore the cost of making the dam things is low for 2 reasons. One, high sales allow for greater mass production. Two the cost was never particullary high. Apple clearly sees by selling more, they can easily make up for losses in a slight price drop—which has clearly worked if you have checked their stock (and you clearly, have not).

finally to those of you who mentioned the zen or others, people want an ipod because they are A. made of good materials and pretty durable B. are light, and easy to use C. are fashionable D. tend to be reliable and trusted and E. have software which is halfdecent to say the least (most other software i have found is not)

Posted by Ipod Stuff on December 3, 2004 at 9:26 PM (PDT)