Wu: Apple's "fatboy" nano could be this holiday's dark horse
In a research report released Thursday morning, American Technology Research analyst Shaw Wu said Apple's new iPods are worthy successors to the models they replace, especially the iPod nano "fatboy," which he believes will emerge as this year's most popular stocking-stuffer.
"We find the new 'fatboy' nano most intriguing with its powerful feature set, 2-inch widescreen, unique form factor, and aggressive price points," the analyst told clients."We strongly believe this product is the dark horse to watch this holiday season and that it is positioned to have a similar impact as last year's redesigned iPod shuffle, which was a run-away seller."
Wu explained that the "fatboy's" aggressive entry level price point of $149 for the 4GB model (and $199 for the 8GB model) is likely to steer consumers away from the bare-bomnes iPod shuffle at $79 and towards the nano's video and gaming capabilities.
More generally, the analyst was impressed with all of Apple's iPod refreshes, noting that they'll combine for a "very strong" line-up for the upcoming holiday season. "From our assessment, we find the feature sets and price points well differentiated and believe this will help minimize cannibalization among product lines and versus iPhone," he wrote.
Similarly, and contrary to popular opinion, Wu found the price cut on 8GB iPhones to $399 from $599 to be both positive and necessary.
"We have had reservations with its high price point and are glad to see Apple address this problem," he explained. "In addition, we believe this lower price is necessary to reduce cannibalization with the new iPod touch, which is essentially a thinner iPhone without the cell phone, e-mail, and Bluetooth."
The one concern he does have with the cut, however, is the reaction from many of Apple's most loyal customers who are now feeling ripped off after having paid $599 for the handset over the course of the past nine weeks.
"We find the new 'fatboy' nano most intriguing with its powerful feature set, 2-inch widescreen, unique form factor, and aggressive price points," the analyst told clients."We strongly believe this product is the dark horse to watch this holiday season and that it is positioned to have a similar impact as last year's redesigned iPod shuffle, which was a run-away seller."
Wu explained that the "fatboy's" aggressive entry level price point of $149 for the 4GB model (and $199 for the 8GB model) is likely to steer consumers away from the bare-bomnes iPod shuffle at $79 and towards the nano's video and gaming capabilities.
More generally, the analyst was impressed with all of Apple's iPod refreshes, noting that they'll combine for a "very strong" line-up for the upcoming holiday season. "From our assessment, we find the feature sets and price points well differentiated and believe this will help minimize cannibalization among product lines and versus iPhone," he wrote.
Similarly, and contrary to popular opinion, Wu found the price cut on 8GB iPhones to $399 from $599 to be both positive and necessary.
"We have had reservations with its high price point and are glad to see Apple address this problem," he explained. "In addition, we believe this lower price is necessary to reduce cannibalization with the new iPod touch, which is essentially a thinner iPhone without the cell phone, e-mail, and Bluetooth."
The one concern he does have with the cut, however, is the reaction from many of Apple's most loyal customers who are now feeling ripped off after having paid $599 for the handset over the course of the past nine weeks.
Comments
It's evident that Apple can still make a decent profit at the $399 price-point, so why not restore the good-will of these early adopters and offer a $200 store credit?
A 34% price cut in 60 days is un-precedented, even in the fast moving technology world. Furthermore, in a similar situation, Apple offered early adopters of Aperture a $200 voucher after they slashed the price from $499 to $299.
Why is Apple milking it's early iPhone adopters considered "just business," but NBC is considered "greedy."
What I find hard to stomach is the fact that Steve Jobs has no problem calling NBC "greedy" for wanting 2x the current wholesale price of current episodes on the iTunes store, yet, Apple is un-willing to compensate for the $200 price gouge that they've imposed on their most loyal customer base over the past 60 days for the iPhone.
It's evident that Apple can still make a decent profit at the $399 price-point, so why not restore the good-will of these early adopters and offer a $200 store credit?
A 34% price cut in 60 days is un-precedented, even in the fast moving technology world. Furthermore, in a similar situation, Apple offered early adopters of Aperture a $200 voucher after they slashed the price from $499 to $299.
Why is Apple milking it's early iPhone adopters considered "just business," but NBC is considered "greedy."
If you've purchased your iPhone within 14 days, you can return it to the store for the difference in price.
The one concern he does have with the cut, however, is the reaction from many of Apple's most loyal customers who are now feeling ripped off after having paid $599 for the handset over the course of the past nine weeks.
Life's tough. I'm one of those people who bought an iPhone in the first week. I understand very well that there's a potential penalty for being a first-adopter, and this is one of them. Everybody knew the price would drop (though maybe not this quickly). Meh. I know a couple of people who are gonna laugh like a donkey because they waited. But I've enjoyed my iPhone quite a bit and don't regret not having waited.
I wanted an iPhone right away too, but I made the choice not to buy one at all until the rediculous pricing gets worked out.
It's as simple as this. If you plunked down $600 for a phone, then you can't be too concerned about your money.
It's evident that Apple can still make a decent profit at the $399 price-point, so why not restore the good-will of these early adopters and offer a $200 store credit?
The car you bought last week new is now worth $5 to $10k less, so it's nothing new. If $200 is a big deal to you, stop buying anything valued over $200.
I am a loyal loyal apple and mac user. I have bought one of every major release of hardware in the last 6 years. I understand that the price of the iphone needed to be dropped, but i still cant help but feel that i have been stabbed in the back. I bought 2 iphones, 2 cases and 2 car chargers a month and a half ago and spent 1300 dollars. I cannot believe i was stiffed out of 400 bucks. I second the motion for store credit. This is BS.
Unless you bought the phone as a precious heirloom to pass onto your grandkids. and I don't think even you are that stupid, then you been stiffed by precisely nothing. Grow up.
What I find hard to stomach is the fact that Steve Jobs has no problem calling NBC "greedy" for wanting 2x the current wholesale price of current episodes on the iTunes store, yet, Apple is un-willing to compensate for the $200 price gouge that they've imposed on their most loyal customer base over the past 60 days for the iPhone.
It's evident that Apple can still make a decent profit at the $399 price-point, so why not restore the good-will of these early adopters and offer a $200 store credit?
A 34% price cut in 60 days is un-precedented, even in the fast moving technology world. Furthermore, in a similar situation, Apple offered early adopters of Aperture a $200 voucher after they slashed the price from $499 to $299.
Why is Apple milking it's early iPhone adopters considered "just business," but NBC is considered "greedy."
This is neither price gouging nor unprecedented. Do you think Motorola gave all the early RAZR buyers their money back when it jumped from $500 to $99?
This is how the tech industry works. Get over it. I have absolutely no remorse over buying my iPhone at the initial cost. And I'm happy that even more people will now be able to enjoy the iPhone, expanding the user base and thus encouraging Apple to improve it with software updates, new features, etc. My iPhone just got more valuable, not less. The price drop virtually guarantees a successful holiday season, which should finally put an end to the naysayers and the analysts who are still driving the stock price down.
Apple can now make a decent profit at $399 because they have recouped their initial RND costs and have reduced the cost of manufacturing significantly. This happens all the time on assembly lines. The first million units cost a lot more to manufacture than the next million. Early adopters pay for that initial expense in exchange for prestige and the true bliss that only a true gadget geek can understand.
Now if Apple were to KEEP the high $599 price tag despite the drop in manufacturing costs, THAT would be greedy.
Unless you bought an iphone to lock away in a closet, the iphone is worth every penny - if $200 is that big of a deal to you and you didn't get value from the two months it's been out, clearly you should NOT have bought an iphone.
The car you bought last week new is now worth $5 to $10k less, so it's nothing new. If $200 is a big deal to you, stop buying anything valued over $200.
Evidentally your mod edit:nose wasnt bloodied by steve and the rest of the crew
Life's tough. I'm one of those people who bought an iPhone in the first week. I understand very well that there's a potential penalty for being a first-adopter, and this is one of them. Everybody knew the price would drop (though maybe not this quickly). Meh. I know a couple of people who are gonna laugh like a donkey because they waited. But I've enjoyed my iPhone quite a bit and don't regret not having waited.
Same here. Couldn't agree more. I'm very happy with the price drop, despite have bought mine near the beginning. It's only going to make my wife's phone that much cheaper to buy when her contract is up.
When other cell makers release phones they often do it at an increased price, but everyone knows that the price will drop over time. Would have been better if Apple had set expectations that this might be the case with the iPhone. Granted it would have reduced initial sales to some degree but it but it would have maintained customer good will much better.
In the whole, its better for the price to fall, but it does give the perception that the phone is being discounted, and maybe it is.
I think if Apple wants to get the iPhone to sell more, in addition to lower prices, they should open up and get an sdk out there. Personally, while I am excited about the iPhone, I really am most interested in seeing how it operates as a software platform.
Also, I think its really important that as soon as the Att exclusivity runs out, the device is available on every network, even if that means a version for Verizon, Sprint, etc...
As far as I am concerned the nano was for music ONLY!!! If you want video, get a portable DVD player, or perhaps the iPod touch.
I guess you can't hold that much video anyway. The other mistake was the iPod touch coming with only 16GB!!!!! Why didn't they use HDD instead? NAND can't fully support my desires.
I am also curious how easy it is to hold one of these nanos and still operate the click wheel efficiently. It seems the natural placement of your thumb would be over the screen not at the click wheel.
Sorry, I am just venting. I do know my comments are all over the map. <grunt>
I agree with the moron analyst for a change. I think the Nano Fatboy is a very compelling little trinket. Its the lack of bulk that makes the design work. It's one of those things that works better as a 3D object than a graphic.
Same here. I hated the new Nano when the pictures of it were circulating around the 'net late last week. I hated it up until I saw the pictures of it, in Steve's hands at yesterday's event and was able to get a feel for the proportions of the device. Now I love it. Not enough to buy one (8GB is not enough - especially when 80GB can be had for $50 more) - but it is a very attractive player and I think it will sell-out very quickly this holiday season.