TITLE

Shuffle, iPhone Follow Early iPod Strategy

AUTHOR(S)
Michaels, Philip
PUB. DATE
May 2008
SOURCE
Macworld;May2008, Vol. 25 Issue 5, p29
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
The article discusses the marketing strategy of Apple Inc. for increasing the sales of its iPod shuffle. Apple reduced $30 off the price of the 1GB iPod shuffle, which now sells for $49, while rolling out a $69 model that doubles the capacity to 2GB. Apple is unlikely to up the capacity on a low-cost item like the shuffle unless it knows it can do so and still maintain a healthy gross margin on each shuffle it sells. Apple released its first 2008 quarterly earnings which shows that iPod sales figures are very important to Apple's perceived financial health. A similar type of product update occurred when Apple introduced the 16GB iPhone. The higher-capacity version sells for $499, or the same price one would have paid for an 8GB iPhone at the time of its launch.
ACCESSION #
31799364

 

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