Rio announces 4GB MP3 Player, same price as iPod Mini

gerbick said:
Or at least finally drops it's price just a simple 50.00 so that it at least makes sense in the scheme of things; as it stands, it's at the wrong price point.

A. What if they CAN'T lower the price $50?

b. It doesn't make sense in WHAT "scheme of things"?
 
Let's just assume that Apple knows _exactly_ why they've priced the iPod mini at 249$ instead of 199$, shall we?

1.) They know people will buy them because of style.
2.) It gives Apple more money per iPod mini sold.
3.) Probably, quite probably, the mini-HD isn't as cheap.
4.) There's R&D costs involved.

Why should a competitor at the same price be a reason to lower the price? Apple offers more in a better package. I'd say, they could even charge 259$ for the iPod mini.

I'm also quite sure that Apple _will_ lower the price in a few weeks/months time and add either a lower-end (2 GB) model or a higher-end model (when larger capacity HDs become available in that size).
 
ccuilla said:
a. What if they CAN'T lower the price $50?

b. It doesn't make sense in WHAT "scheme of things"?
a. If they can't, then so be it. I just won't buy one.
b. Competition with not only other mp3 players, but also with the almost price competition they're having with their own products. Sorry I didn't make it clear for you earlier.

However, yeah... people who buy stuff based on style only will buy the skittle iPod in multiple flavours possibly. And them making more money per iPod, I'm all for it. Making money is usually a goal. However, Apple needs to start compeeting in some areas a bit more sensibly.

read: quality mp3's cost money. no duh. but while iPod, iTunes, and iTMS usage is on the upsurge, capitalize on it big time.
 
According to this article Apple said in the Q1 Results Conference Call that margins on the iPod mini are smaller than margins on standard iPods.

Apple did a great job pricing standard iPods (it's the number 1 selling mp3 player in the world!) and will be making even less money off the iPod mini than the iPod. You can be upset at the cost of mp3 player components and the cost of making something so small and you can even say that Apple made a mistake in thinking that it was possible to create a popular mini mp3 player, but I don't think you can say that they're overpricing it out of sheer stupidity/arrogance/whatever.
 
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