Apple Enters Value Market with Cheap iPod, Mac
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Apple Computer Inc. on Tuesday moved to make its products more affordable for the masses, unveiling its cheapest Macintosh computer ever and a version of its iPod digital music player for under &#36;100.
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The iPod&#39;s importance to Apple, which has in the past been overshadowed by the likes of Microsoft and Dell in the desktop stakes, cannot be underestimated.
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The noise that surrounded Microsoft&#39;s (MSFT:Nasdaq - news - research) launch of MSN Music last week underscores the opportunities many investors see in the online music market now dominated by Apple Computer (AAPL:Nasdaq - news - research).
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Apple's iPod is the 800-pound white gorilla of the digital music market. But a number of new music players, on the market or in the works, have Apple in their sights.
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Apple introduces an iPod capable of storing and displaying photos in an effort to stay ahead in the market for digital music players.
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Apple unveiled a 99-dollar version of its hot-selling iPod digital music player, the gadget that catapulted the firm back into big profits, and a cheap mini-desktop.
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Apple Computer Inc. chief executive Steve Jobs introduced a cut-rate computer the size of a paperback on Tuesday and a tiny iPod that starts at &#36;99, but holds fewer songs than its hard drive-based music players.
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Apple shares rose 4.9 percent on Monday after analysts said they expected the company to introduce a smaller, cheaper iPod in January.
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Portable audio player manufacturers bet on smaller, simpler devices in an effort to unseat Apple's IPod.
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A new generation of smaller, sleeker and cheaper MP3 players from the likes of Sony, Rio, Creative and Rave MP are hitting the market this fall, and they all have Apple Computer&#39;s white-hot digital music player in their sights.
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Apple Computer Inc.  is widely expected to unveil cheaper portable music players and Macintosh computers next week at its annual trade show as it seeks to change from a niche technology player to the mainstream champion of the "digital life."
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Low-priced Mac starter system has enough oomph to do most jobs.
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Dec. 30, 2004. Apple enthusiast and rumor site Think Secret reported this week that in January Apple will unveil a sub-$500 Mac designed to entice Windows users who own iPods to make the computer switch.
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(InfoWorld) - Apple Computer's recent introduction of several new iPods shows the company is looking for better profit margins, not gaining market share, according to researcher Gartner. And the move could boost its rivals. The top sign Apple is going for the green is its lack of aggressive pricing, according to Gartner analysts Joseph Unsworth and Jon Erensen in a Monday report. The second-generation iPod Shuffle, for example, could have been priced closer to $49 to stimulate demand from users, since the cost of materials going into it amounts to only $30, the analysts said. Instead, the shuffle is priced at $79. The company could have also priced the new 8GB product lower than $249, since its materials only cost $130, Gartner said, the same with its 4GB, which at $199 is far higher than the $90 worth of materials inside, and the 2GB version, which is $149 and is made from materials costing only $70. The two Gartner researchers even lamented Apple's decision to discontinue the 1GB nano, which they say could have been a nice mass-market item for around $99. "Apple is in a secure position atop the portable media player market and has decided to strategically focus on its margin this time," the analysts said. Indeed, AppleÂ continued to leadÂ the U.S. digital music player market in the second quarter with a 75.6 percent share, according to the NPD Group, followed at a very distant second by SanDisk at 9.7 percent and Creative TechnologyÂ in third with 4.3 percent of the market. But a lack of revolutionary new functions in the latest lineup of iPods coupled with just a small price reduction could give rivals,Â Microsoft and its new ZuneÂ in particular, room to gain market share this year. For one thing, Apple's rivals may not be affected by strained component supplies, since Apple won't be taking as much as it could, according to Gartner. The market researcher had predicted a shortage of NAND flash memory chips in the fourth quarter due to strong sales of portable media players, USB (universal serial bus) flash drives, and other products requiring the chips. While it still forecasts a shortage, the situation won't be as severe as previously thought, the analysts said, perhaps a 3 percent shortfall rather than the 4.6 percent shortage originally predicted. NAND flash, one of the key data storage components for iPods, is 60 percent cheaper than last year on average, and with Apple's huge investment in NAND companies, it could have priced its iPods more aggressively to keep its market share, the analysts said. In addition, Apple's rivals won't have to work so hard this year to keep up with the iPod because the new lineup does not redefine the portable media player market like it did last year, Gartner said. And finally, the company only trimmed nano prices by $50, different from the past when the company's aggressive price cuts forced competitors to lower prices and increase storage capacity to compete. Jill Than, a spokeswoman for Apple in Hong Kong, declined to immediately comment.ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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Shares of Apple hit the $200 mark for the first time, as investor confidence in the company continued rising near the end of what has been a strong year for the iPod and computer maker.
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Business & money: Figures from Apple suggest that the iPod may be reaching  market saturation
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SAN JOSE, Calif. -- Apple Computer (Quote, Chart) unveiled a batch of new iPods, iTunes software and promos designed to keep it atop the heap of digital music players.