Hardware
Apple Drops iPod Prices
You knew this was coming in light of Microsoft’s pricing of the Zune HD. Apple, jumping ahead of its big announcement today, has dropped prices across the board on its iPod line. The 8GB iPod Touch model is now $189 down from $229. The 16GB model is now $249 down from $299. The 32GB model is now $279 down from $399. Interesting that the prices popped up on the Apple Store before the big announcement.
Via Engadget
Sumocat
09/09/2009 at 7:22 am
A price shift was expected, but certainly not ahead of the big reveal nor did I think they’d drop the 32GB below the price of the Zune HD 32 (though that should have been expected given they did the same to the first Zune). Kudos to them for breaking from the usual formula.
GMA
09/09/2009 at 8:06 am
Interesting delta between models. Who wouldn’t spend the extra $30 for double the capacity going from 16 to 32??? When you look at that, $60 from the 8 to the 16 doesn’t really add up… I’d be all over that 32 if I wasn’t in bed with it’s twin brother that makes calls…
GoodThings2Life
09/09/2009 at 9:21 am
Not surprising to announce the drop, but I agree about the delta between the 8/16 vs 16/32 models… interesting choice.
That said, I wouldn’t doubt it if Microsoft responded by at least discounting the 32GB to match its iPod competitor.
Sumocat
09/09/2009 at 10:32 am
I have a theory about the pricing: Microsoft can’t sell something they don’t have. GMA is spot-on about the price. $30 more for the 32GB model makes it enticing to the point that it should sell nearly as well as the 16GB model (logically, it should be more attractive). The same should hold true if Microsoft drops the price of the Zune HD 32.
The problem is, Microsoft didn’t plan for that. They can’t magically shift supply to meet the shift in demand from the 16 to the 32. This puts them in danger of running short of 32s, leaving customers to choose between paying less for 16s or go for the readily available 32GB iPod touch (Apple has a lock on flash supply; they won’t run out). Microsoft will eventually replenish their supply… but not before the holidays. This tactic is aggressive and very interesting. I really want to see how it plays out.