Apple Computer today announced launching a new 1 gigabyte iPod nano music player for $149 and said it cut the price of its Shuffle music player. The price of its 512 megabyte Shuffle music player will sell at $69, down from $99. Its 1 gigabyte model will sell for $99, down from $129.
The new 1 gigabyte Nano, which is immediately available, holds up to 240 songs or 15,000 photographs. These lower prices should open the market up even more. Getting the Shuffle down consistently below $100 may be the real headline.
Does this prove that cut-throat competition from other hardware players has at least forced Apple to reduce prices to hold on to their market share? Looks like it, but it also reveals how Apple is further differentiating lower spec players from the higher end, higher price video players. One set for the truly mass market and one for the margins.
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