iPod mini price drop ‘challenges competition’
Apple was wise to lower the price of the iPod mini, and the move will force the competitors to respond, says Jupiter Research analyst Michael Gartenberg.
In his weblog he writes: “Apple has lowered the mini to a $199 price point while preserving the magic thousand song storage mark.
“This is pretty bad news for the competition that was looking for ways to go after the mini. At this point, with a $50 price difference at most of the line (and $100 on the highest SKU) Apple now has the most complete product line at effective price bands to allow consumers join the iPod experience while not creating overlapping products.”
“This is a good tactical move and will once again force their competitors to respond,” he concludes.
Piper Jaffray’s Gene Munster shares this view. He wrote in a note to investors that: “The new iPod models may help Apple widen its lead over competitors such as Dell,” stating that: “Apple’s changes to the product line are more offensive than defensive,” reports the Seattle Times.