Saturday, September 22, 2007

New iPod selection

Well, Steve Jobs just unveiled a complete new line of iPods to complement the iPhone. Much ado occurred when the iPhone price dropped drastically, alarming and alienating early adopters like me, Mr. Sardo, Mr. Hendler, Mike Weissman and some other friends of mine. Alarm was short lived, however, as Jobs apologized and gave everyone a $100 credit. Still many reviews have been emerging about the newest iPod the iPod Touch which is basically the iPhone without the phone. Reviews have criticized it for very selfish reasons of wanting it to be the be all and end all iPod. They overlook most of the reasons why it can't be. I took the time to answer one such article at Engadget, a great site for information, reviews and announcements of new and emerging products. Here is what I said.
You Engadget folks always neglect the marketing aspects. You focus on the greedy, "gimme , gimme" consumer. The iPod Touch was designed and planned with a two fold mission.- 1- Sell more iPhones, 2- Make Apple more profits outside of the iPhone. The iPod classic is no longer in this equation because it's appeal is only mass storage and competes outside the flash memory paradigm. Here is how the shopping scenario plays out. There are several types of consumers after gadget freaks and early adopters. They are: Low budget- They are choosing between a shuffle and a 4 GB Nano- they ask themselves "should I spend the extra and get more space and value? The wallet often decides. If they splurge, Apple makes more money. If they don't and buy a shuffle, Apple still makes money. The Hi budget group - who want an iPhone and AT & T. They buy the iPhone and are very happy. Hi Budget who are "undecided".- They look at the 16 GB Touch and say "wow cool but compare it to the iPhone and say- hey for another $100, I can get a new cool cell phone. I have to switch to At& T, OK no big deal". Capacity looses. Apple sells another iPhone, makes more money. Hi Budget undecided who hate AT& T. They approach with the same reasoning but choose the 16GB Touch because they like their carrier and feel accomplished because they get an extra 8 GB of space. Apple increases non iPhone profits.Medium budget looking at 8Gb Nano, they see the Touch and say" Hey for $100 more I almost get an iPhone and all that wi Fi internet stuff". Again, both win and Apple wins more profits for Apple. It is not about the feature set at present it; is about selling more iPhones. Eventually, as sales level off, some of the requested features will be include. Software features will probably be added to the Touch same as the iPhone, which will make the Touch owners really happy. I expect weather and note pad myself and maybe calendar as well. They will never give us the ultimate iPod unless we pay the ultimate price. Money wins out. The new iPod family is about Apple making money all the way around. Regardless of iPod choice, it is a win win for both Apple and consumers.

No comments: