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Why iPod Mini is a smart move for Apple
Ample Dave writes "Ars Technica has an analytical article up right now that looks at Apple's strategy with the (many would say overpriced) iPod Mini. I have to admit that I bought into the rumors of a dirt cheap iPod Jr., and thus was very disappointed when the real price of $250 was announced, but this article changed my mind. It leads me to wonder about Apple's other pricing games. You an see this kind of thing with the eMac and iMac, too."
I can't imagine someone not wanting to spend the other fifty bucks and get the real thing.
Since when is iPod the "real thing"? To me, the real thing can play WMA, and OGG would be nice as well. Those "phony and cheap" players can at least play WMA - one of the most prolific formats out there right now.
Methinks you are a dingbat. Not everyone is in love with Apple and their overpriced, underuseful and uberghey products.
I don't need no instructions to know how to rock!!!!
They have perfected (maybe they originated) getting the CONSUMER to pay more to get less.
And it works!!!
The most profitable way to sell is to market your product so that the BUYER will feel she/it/he is an exclusive and superior connoisseur.
Rolex Watches, Prada Bags, etc.
Let us look at other companies that have done this:
Volkswagen: Went from selling "Rabbits" to selling the same car "Golf" with updated fenders, using an Ad where two (gay??? WHO CARES!) guys drive around looking for reclining chairs.
Jaguar. Electrics by Lucas, Prince of Darkness. But who cares!! If you have the money for a Jag, you have the money to get it fixed every week!
Mercedes: Teutonic Reliability! A sign you are a CONSUMER of superior and discriminating Taste! The reliability sucks, but see Jag, Above!
Volvo!!!!
Now this one is close to my heart, because a good friend of mine had to buy one to satisfy his pretentious wife.
The damages so far:
New Instrument Cluster
New rear brake rotors, 4 times!
Drill a hole in the side of the Turbocharger to let oil leak out (WTF!!!)
Air conditioner evaporator (cold side) exploded, filling the car with poisonous R134A.(They finally sold the pile of crap and bought a Lexus RX330)
The Bottom Line:
Marketing Works!!
With the right commercials and the right "positioning" you can sell anything. The value of the product is not important, the reliability is not important.
All that matters is the marketing, where you product is made to seem "Cool", and the Sheep will line up and pay double extra secret additional money to have the PRIVILEGE of owning one.
BAH!
It continues to amaze me that to what gyrations Apple enthusiasts will go to insist that every bone headed move they make is in fact the "correct" one.
Look here is the deal.
Apple's computer market share can only described as a nitch product. Apple is moving into consumer electronics to diverify and combat stagnation. They have developed a hot product with the Ipod. they are expanding the line and attempting to drive as much margin as they can.
why?
for the simple fact that as soon as the mp3 market hits critical mass multi conglomerate company Y will hit the market with a MP3 player with a margin perhaps of 8-9%.
In consumer electronics 1 and only 1 thing matters. price...
Apple's analysts know this. thats why they are intent on pushing the price up on their products. Additionally they know they don't have a prayer to compete when the big guys enter the market.
What they are trying to do is lock in thier format. which they may or may not do. depends on how savey the consumer ultimatly is.