Analysts: New iPods priced for profits, not market share

Apple’s pricing of the new iPod models shows the company is looking for better profit margins and not market share gains, according to analysts at market researcher Gartner. The analysts said the second-generation iPod shuffle could have been priced closer to $49, since the cost of materials amounts to around $30. Similarly, Apple could have also priced its new iPod nano models cheaper, according to the analysts. They claim the 8GB model has $130 in materials, the 4GB has $90 worth of materials, and the 2GB version has only $70 in materials. “Apple is in a secure position atop the portable media player market and has decided to strategically focus on its margin this time,” the analysts said.

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