MacRumors: Cheaper iPods at MWSF 2004?

Posted:
in Future Apple Hardware edited January 2014
On the same day that the site reported on the next-gen iMac, this also showed up on their website:



AppleTurns posted an interesting tidbit today...



The traditionally satirical site reports that they have a "strong feeling that a modestly-featured and modestly-priced new entry-level iPod is indeed in the offing", and seem to think that MacWorld Expo may be the launching point for the new iPod.



Steve Jobs has previously stated that they are constantly trying to lower the cost of iPod and one unconfirmed rumor pointed to a cheaper 5GB iPod to be released in November... but never came to be.



While AppleTurns denies being a rumor site, they do make the occasional foray into the rumor sandbox, and has been known to be correct on occasion.




I'm sure that possibility has been discussed, but that would be nice to see. I don't know how to fill a 5 GB iPod (if that pans out) if I had one, much less 10 or more. Anyway, here's some of what AppleTurns itself posted on its site:



So if Apple's going to compete, it probably is going to have to figure out a way to sell at least some iPods at a much lower price. MacRumors recently reported on unconfirmed rumors that a "low-end/cheaper 5 GB iPod" might appear "as early as the November 28th, 2003 In-Store Apple event." Of course, that didn't come to pass... but we've got a strong feeling that a modestly-featured and modestly-priced new entry-level iPod is indeed in the offing. Furthermore, we've got a strong feeling that Apple doesn't want to introduce it until after the holiday buying season, since existing iPods are already selling like disposable razors at the annual Covert Werewolves convention and it'd be just plain dumb to sabotage high-margin sales by shipping a lower-cost option now. But if there's some sort of largish Apple-related trade show or something taking place shortly after the holidays, we've got a strong feeling that it might be a good venue at which to unveil this conjectured low-cost wonder.



Disclaimer: we also had a strong feeling that Ballistic: Ecks vs. Sever would be box office gold, so don't hold us to anything.

Comments

  • Reply 1 of 16
    cosmocosmo Posts: 662member
    this is definitely something apple needs in order to stay on top. They ipod is the undisputed champ in terms of ease of use and appearance, but its high price is hurting it.



    Many people don't need more than 1000 songs in their pockets (i guess it would be more than that with ACC files) and are looking for a cheaper alternative.



    Apple has a strangle hold on the mp3 player industry, i hope they don't give it up and a cheaper ipod would certainly tighten the grip.





    PS more battery life is the next feature that needs to be added.
  • Reply 2 of 16
    jcgjcg Posts: 777member
    Quote:

    Originally posted by Republic

    On the same day that the site reported on the next-gen iMac, this also showed up on their website:



    AppleTurns posted an interesting tidbit today...



    The traditionally satirical site reports that they have a "strong feeling that a modestly-featured and modestly-priced new entry-level iPod is indeed in the offing", and seem to think that MacWorld Expo may be the launching point for the new iPod.



    Steve Jobs has previously stated that they are constantly trying to lower the cost of iPod and one unconfirmed rumor pointed to a cheaper 5GB iPod to be released in November... but never came to be.



    While AppleTurns denies being a rumor site, they do make the occasional foray into the rumor sandbox, and has been known to be correct on occasion.




    I'm sure that possibility has been discussed, but that would be nice to see. I don't know how to fill a 5 GB iPod (if that pans out) if I had one, much less 10 or more. Anyway, here's some of what AppleTurns itself posted on its site:



    So if Apple's going to compete, it probably is going to have to figure out a way to sell at least some iPods at a much lower price. MacRumors recently reported on unconfirmed rumors that a "low-end/cheaper 5 GB iPod" might appear "as early as the November 28th, 2003 In-Store Apple event." Of course, that didn't come to pass... but we've got a strong feeling that a modestly-featured and modestly-priced new entry-level iPod is indeed in the offing. Furthermore, we've got a strong feeling that Apple doesn't want to introduce it until after the holiday buying season, since existing iPods are already selling like disposable razors at the annual Covert Werewolves convention and it'd be just plain dumb to sabotage high-margin sales by shipping a lower-cost option now. But if there's some sort of largish Apple-related trade show or something taking place shortly after the holidays, we've got a strong feeling that it might be a good venue at which to unveil this conjectured low-cost wonder.



    Disclaimer: we also had a strong feeling that Ballistic: Ecks vs. Sever would be box office gold, so don't hold us to anything.




    I can see this, keep pressure on the competition. Also, larger market share through lower cost options = more sales making up for lower margins through volume.



    Another point is that sometime music download services like iTMS need to start turning a sustaining profit. I doubt that Apple's long term strategy for iTMS is to loose money on it as a vehicle to sell iPods, that sounds backward to me. You cut margins on the hardware to allow you to have a larger market for your "software". While the profits may be lower per item on the "software" volume makes up for that.



    The more iPods, the more people with iTMS on thier computers, the more likely each of those users are to purchase music at iTMS. The more people using iTMS, the more leverage you have on the recording industry in negotiating contracts and licensing for distribution.



    What Apple really needs to do is find a way to integrate an iPod into the factory equipment sterios on Ford and GM, and I dont mean a "docking" system. Maybe a FW port and HD on the stereo, plug in the iPod and your car sterio "syncs" to your iPod, that way you still have access to your music library even if you dont have the iPod in the car with you. They could even use larger, less expensive laptop HD's to keep the cost of the stereo's down to a level that is close to the price of the current line of OEM offerings.
  • Reply 3 of 16
    I certainly would like the idea of a, say, 5 gigabyte iPod model. It would make it more likely for me to get my hands on one sometime in 2004. If this is even true in the first place, what kind of price point should we be hoping for? $199 per Pod possibly?



    Now, this car stereo idea is a pretty good one, but I feel it's premature, at least for volume leaders like Ford and General Motors. At the risk of generalization, I would say that many of their models have been volume models, and people who buy a Taurus may not really care about an iPod. It just doesn't seem to be the right demographic. If automakers continue to make generalizations about younger drivers, they may do that for cars meant for those younger drivers (say the Toyota Matrix, Pontiac Vibe and Honda Element). Brands placed at the higher ends usually do try such things to show how advanced their cars can be; take Acura and the use of DVD-Audio in their TL as an example.
  • Reply 4 of 16
    I think you would sell a TON of 5GB iPods at $199. And then when they purchase the Dock, and remote, and case, they spend another $80-$100 at the apple store.



    Then after about 6 months they realize just how cool the thing is and how many songs one of those larger ones hold. And voila, it's time to upgrade to the 20 gig model. !!!!!!!!!!



    Very very smart to do that.
  • Reply 5 of 16
    This thread should be retitled AtAT: Cheaper iPods at MWSF 2004. They are the source of the info, not MacRumors. Jack rarely dabbles in rumors, but when he does you can bet the milk money.



    I personally think it should just be a $100 price reduction across the line. No need to bring back the 5 GB model. It would be an unusual move for Steve, but if the the lineup was 10 GB $199, 20 GB $299 and 40 $399, then they're wouldn't be any reason at all to buy any other player. Apple could kill the Dell DJ and the Samsung/Napster thing with one blow. They'd lose some precious margins for a few months but they could lock up online music as it truly goes mainstream next year.
  • Reply 6 of 16
    satchmosatchmo Posts: 2,699member
    Paying $199 for a 5gb iPod would be okay but not great. Heck, I picked up my current original scroll wheel 5 gig from Apple's refurbished store for that price a year ago!

    But add the new form factor, updated software features and it still would be a nice addition to the product line.
  • Reply 7 of 16
    given "Toshiba Corporation is to meet fast increasing demand for its 1.8-inch hard disk drives (HDD) by doubling production to 600,000 units a month by March 2004" (source ) and hence greatly reducing the cost of production, no doubt this will pan out as reduced price for production of ipods and hence retail cost to us.



    apple HAVE to reduce the retail cost as it's the main stumbling block for a lot of people/kids who would LOVE to own one. so surely the question should be what percentage of the cost of an ipod the hard disk is and what would the end user's savings be by a (let's say 50%) reduction in the base cost of the tosh disk?
  • Reply 8 of 16
    Don't forget the Pepsi promotion starts on the Super Bowl. I can see it. Get your new iPod for $99, and new tunes for 99 cents. It would make sense to release a cheaper consumer market to coincide with the biggest cross promotion Apple has ever done.
  • Reply 9 of 16
    bungebunge Posts: 7,329member
    As I said in the other thread, the 1 GB Compact Flash Cards are coming down in price. Apple could release a 2 GB iPod with I don't know how many hours of battery life, for probably less than the 10 GB device.
  • Reply 10 of 16
    dcqdcq Posts: 349member
    Quote:

    Originally posted by Ensign Pulver

    I personally think it should just be a $100 price reduction across the line. No need to bring back the 5 GB model. It would be an unusual move for Steve, but if the the lineup was 10 GB $199, 20 GB $299 and 40 $399, then they're wouldn't be any reason at all to buy any other player. Apple could kill the Dell DJ and the Samsung/Napster thing with one blow. They'd lose some precious margins for a few months but they could lock up online music as it truly goes mainstream next year.



    They wouldn't "kill" them by doing that...at least not Dell's. Dell--and to a lesser extent, Samsung--have very deep pockets. Dell is fine with moving a loss leader for a while to gain market share if necessary. The competition won't go away. Apple may increase it's marketshare temporarily with such a move, but if the platform wars have taught us anything, it's that the Microsofts, Intels, and Dells of the world will pull all sort of dirty tricks to stay on top.



    Having said that, I think a $100 price reduction would be a great idea. (Duh.) If that were to happen, I'd buy a 40 gig model the next day. (Well, at the very least, I'd be seriously tempted.) Since I have 18.5 GB of music, the first two models are useless to me, since I also want the iPod for data BU and transfer. More likely though is the bumping of features and sizes, and a keeping of the prices steady. If the result is a $400 40 gigger (which I could then find discounted somewhere), the result to me is the same.



    On a somewhat related note, I am kind of hesitant to buy right now anyway. Matthew Rothenberg reported on an Apple quasi-tablet-super-iPod over a year ago. He's never outright wrong, but sometimes his timing is off. (He reported on Inkwell well over a year before it debuted.) A color, 8-in screened iPodesque thingy running OSX would be interesting to say the least. In any case, I'll probably leave off any purchases until a 15-in G5 PB comes out (hopefully in summer/fall 2004).



    -DCQ
  • Reply 11 of 16
    just a thought?:



    we have a matrix with computers, laptops, desktops, consumer models, pro models?



    would it make any sense to have a pro-iPod-line and a consumer-iPod-line?



    what we actually have is the pro line: 40Gigs, adressbook and organizer included, usable as an external system disk (what was this "take your home directory with you"-feature in panther??)



    what we need is a 99$, iTunes ready, 5Gigs mp3player - a real mass product.



    i like the mention of the pepsi promo!

    i like the idea to tease the people with a cheapo.

    and i like the idea of a solid state player (had this idea in another thread), hey, is 5Gigs really THAT expansive?



    my five euro-cents
  • Reply 12 of 16
    Quote:

    Originally posted by k_munic

    would it make any sense to have a pro-iPod-line and a consumer-iPod-line?



    No.
  • Reply 13 of 16
    Quote:

    Originally posted by Ensign Pulver

    No.



    is this your final answer?
  • Reply 14 of 16
    Yes.
  • Reply 15 of 16
    http://www1.us.dell.com/content/topi...=us&l=en&s=gen



    what looks --and works-- like the iPod, but not as cool?



    -walloo.
  • Reply 16 of 16
    And what also does it for less while offering 5 more gigabytes? Right, Dell. Not saying I would buy one, but that has got to resonate with someone comparison shopping.
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