[Ham-Mac] MWSF Keynote

[Chris Smolinski]

>>>
>>>The new mini iPods are teeny weenie (credit card size)!
>>
>>Yeah, and only $50 less than a real iPod that has 11 GB more storage space
>>and $100 more than the flash players they claim to be competing against.
>>What were they thinking?

They were thinking "how can we sell a few more units, and still stay 
in business".

>Although I think in general electronic goods are being sold too 
>cheaply for what they are, hey why do soft furnishings cost more 
>than a DVD player for crying out loud?

Because consumer electronics are made by cheap labor in China.

>Still, I agree $199 would have sounded a lot better than $249 for 
>the mini iPod. It would have make a lot more people's minds up to 
>buy one.

Most likely, Apple isn't selling it for $199 because they can't - and 
still make [enough] money. They have very high margins - which other 
computer and electronics manufacturers can only dream of. They've 
passed the 2 million sold mark, and have 31 percent market share in 
that product category. I'd say they're doing something right. Let the 
other players beat up on each other for the lower price market - and 
lose money on each sale.

-- 

---
Chris Smolinski
Black Cat Systems
http://www.blackcatsystems.com