iPod, Jr.: the power to crush other kids.

There is much hubbub and hoo hah-ing over Apple’s latest product offerings, the iPod mini. People are saying that they missed the price point by $50 (should have been $199; I felt this way when the pricing was announced) or that the smaller, cuter iPod minis will somehow reduce income for Apple because it will cannibalize sales of the larger, more expensive iPods.

All of these arguments fail to look at the market segment as a whole and only look at Apple from either the drooling, nearly sycophantic Followers or from those with the usual love/hate codependency that comes from years of working on Apple computers, i.e., me.

I suggest that Apple is dead on with their pricing. If one merely looks here, one can see the competition and see that Apple has priced it very competitively. Add to that the value of interface, software and a great music store and this product will sell. Not to the diehards or the geeks fixated on specs, but to those who are swayed by color and by style. This is your mother’s portable player.

Back in the day, when I was a beta-tester for Apple’s long-dead, online service eWorld (I know, shameless digerati plug), I had an argument with Robert Cringely. He argued that Apple was doomed, both in it’s eWorld offering and with it’s computer product line. I argued that all Apple needed was a killer product that was not available anywhere else or from anyone else. At the time, I thought it might be something in the gaming realm (this was 1994) but that it should have a cachet about it and that cachet would drive sales. It’s not marketing genius, but it’s what Apple needed, even then.

Now, post-iMac and post-iPod, Apple is poised to become what it really is at it’s heart; a great consumer company that makes cool products. Apple’s presence should shift from making announcements at Macworld and instead should be at the Consumer Electronics Show (hit the slideshow links). That’s really where they belong. Looking at the products being hawked at CES and thinking about how beautiful Apple products are… I believe a much bigger splash could be had, and Apple would be even more a household name than they are presently. Plus, it would shift the focus away from the 2–3% market share doomsayers.

I welcome your views.

  • http://www.smudgecycles.com Sean

    I’ve always admired apple products and the beauty of the hardware. Still I cannot bring myself to purchase the beautiful Powerbook. The iPod I’ve had for the past year, rocks the house. Even after it self corrupted and I lost 5 of my 20G storage space.

  • http://www.monkeyinabox.net monkeyinabox

    I agree that Apple, by far, makes the coolest stuff out there. But since I’m not Batman, I can’t buy all of them. I guess all the rumours of a mini iPod that was cheaper thrilled a lot of people who didn’t want to plunk down $300 for a MP3 player, and really if you want to buy one, you’re gonna want the best, so that means around $500. If you’re young and live it home, $500 is nothing to blow on a MP3 player, but if you are paying bills and living in the real world, $300 — $500 is always available to blow on something that you really don’t need. So when you think about a $150 — $199 iPod it gets more tempting and realistic to purchase.

    True, making the thing smaller with all the cool features really doesn’t make it a rip off, but seriously, I would pay $50 more for the new 15GB iPod hands down.

    http://​www​.apple​.com/​i​p​o​d​/​s​p​e​c​s.html

    I mean look at the sizes. Is it really THAT much smaller to justify buying it on size alone? It’s like a laptop at 3.5 lbs and 3.7 lbs. Would you pay $100 more for the .2 lbs difference?

    In the end, you hit the nail on the head. Apple makes damn cool stuff and people want it. These mini’s look different and people will buy them just because they want to have the cool toys. It just won’t be me yet. Damn.

  • http://everydaythingsscene.com beerzie boy

    I’m with the minkey…Apple makes very cool stuff, but it requires a lot of expendable income. For those of us with modest incomes and chillins to feed, an a MP3 player is sadly, not on the list. Damn again.

  • http://www.forml.com Paul M

    It’s hard to look at the big picture when most of us what cheaper and better and we think that nothing less will sell. These will sell plenty.
    I think this MINI is part of Apple’s grand plan to evolve the iPod into a PDA with a HD.

  • http://www.thumbtackjungle.com Bev-O

    I would have to agree with Jon that the mini is not targeted to the tech savvy. What I do take issue with is the 200% increase in relative price. On the 15 GB ipod that sells for $299 you can fit 3,700 songs. That is $0.08 per song. The mini that sells for $249 fits 1,000 songs, or $0.24 per song. That is a 200% increase in the storage to cost ratio for green. Any savvy shopper will see this and buy the original over the mini. It is plain as day economics.

    Lets look at another company that tried the colors to fit your life game, palm. Does palm still sell all different color palms? No. It is simply too expensive to cary the excess inventory when no one buys the Claudia Shiffer blue model. The mini will be short lived, Apple needs to focus on the battery issue and not do market research studies to determine if tungsten green is popular with the over 40 crowd…

    That said I think apple is poised to be a huge, HUGE, player in the home computing industry. iTunes/iPod is just the start of working with windows. Now if only AAC was compatible with, well, anything…

  • bdk&e

    Ok I am not the most tech savvy, but thank God my husband is. What he did was find one of his friends who was still in school and used his academic discount to purchase our iPod. (Could we be arrested for telling you this?) Then he found rebates on the internet and paid $150.00 for our iPod and that’s $0.04 a song. OH WAIT, SHIT’DAMN IT– My smart or is it smart ass husband reminded me that we also had to buy a powerbook to get the deal. But hey, he was buying one of those anyway! But the iPod mini is not only “cute”, but who needs to have 3,7000 songs at their fingertips?

  • http://www.haydur.com/ Haydur

    I think your comments for the iPod mini come from a very ‘Mactistic’ mind and are not free of prejudice. I agree with you partially that the $249 price a good for an HD-based music player, it makes no sense when compared to the 15GB $299 iPod. Four times more space (songs) for just 50 extyra bucks!!! Only Barbie’s (or their likes) would buy an iPod mini.

  • http://www.apple.com/ Jerry

    I certainly concur with the basic premise of Apple in consumer electronics. That area has thrived to date with only minimal participation from the computer industry. Apple now has now only a first with the iPod but the first pink and blue iPods. They bumped the value at the lowend by boosting it to 15GB and a mere $50.00 more than the new MINI. Obvious attempts to jump to some conclusion, as I did initially, that the price point of the MINI is $50.00 too high fail to examine the the accessories of the MINI, missing with the lowend of the three iPods, but also the mere fact that they’re new in size and color in a market always driven by fads and trends. Given the present success there’s no reason why Apple shouldn’t have the next success. They’re using technology from Hitachi that’s a step ahead of the same miniaturization in the Dell iPod knockoff, going a step further with the size and capacity, not to mention the visual aspects of design which share, but don’t dominate in importance. The do it best in both worlds. I was among the the majority of naysaysers that predicted failure of the “terribly overpriced” iPod in the beginning. The technology sector seems to be waking up to the fact that consumer electronics can be driven by forces it doesn’t understand. Geeks have always liked the toys of their own creation, but expanding their use into the larger market has been a sometimes thing. Apple seems to have some of the smarts associated with Sony in the consumer market. I don’t want one of the silly things in pink…but I may buy one with the brushed aluminum. Or blue. ;) I vaguely recall there are several “baby books” on the order of “Your Pregnancy Week by Week” titled something like “Looking After Baby.” Would an iPod MINI be handy to have following a trip to the Apple Music Store, its partner which offers a free iPod in return for a subscriptiton (audible​.com), or elsewhere so that a new mother could explore and tap the knowledge base beyond her extensive present and past explorations of printed books and the Internet? She might even listen to Sheryl Crow or some music she likes as she rocks a new baby during the nightly feeding, sort of a small dollop of whipped cream or icing on the cake. That may not be of interest, let alone useful, at the outset as baby occupies all of her attention, but it might be a useful adjunct to her new lifestyle. Would that we all could afford to put up the bucks for all this marvelous and trendy technology.

  • http://www.apple.com/ Jerry

    Had forgotten Cringely’s comment about prior art and eWorld RE the SCO case at http://​www​.pbs​.org/​c​r​i​n​g​e​l​y​/​p​u​l​p​i​t​/​p​u​l​p​i​t​2​0​0​3​0​1​3​0.html. I was on eWorld in 1994 too and you likely helped me when my email was regularly trashed as I wandered that interesting motif of a cyberworld model that made CompuServe really, really suck, the software that was also the model of AOL, which also ate my email with both a relish and certainty. Why he doesn’t get more into the AOL model, which dates to 1989, I don’t know. My youngest son still has a functioning Apple IIe with one those neat little cards associated with Atkinson’s hypercard model. Oops, brought up SCO and the topic is consumer electronics and Apple. Sorry. Am probably still stunned from reading the new mother’s blog today with yet another amazing article. :-)

  • http://www.mrjerz.com/ mrjerz

    As one of those sycophantic, drooling Followers, I am a little depressed at the pricing. I want an iPod. I need an iPod. But I can’t spring $300 for one, so I was really looking forward to the iPod announcement. And when I heard Jobs talking about devouring the “high-end Flash-based market” I figured he’d announce something to do just that. He didn’t. I would pay $150 for a 2 gig iPod in a second. But $250 seems to me like too high simply because for $50 more you get so much more. I love the size of the mini and it’s what I want. But it needs to come down. I’m thinking they’ll do the same thing they originally did with the iPod and when they bump up the specs, they’ll lower the prices. We can hope.

  • http://dresdendiary.blogspot.com Katrin

    It’s “its”, not “it’s”. Geez, you Americans and your English… Love your site (and the mini iPod), though.

  • Xdm

    My husband came home from Best Buy last summer with the MUVO NX by Creative. He was impressed with how small it was (and while it fits in the palm of your hand, it has only a paltry 128 mb storage capacity — –about 2 Ω cds worth of music.) I said, No! No! What you need is an iPod! We decided to keep the MUVO so that he could strap it to his arm running, or stick it in his pocket at the gym, and I needed time to save up for the iPod. In November, I bought him the 20 gig for his birthday and it has changed his life. Well, our lives since it really hasnít been out of my bag since. While it was expensive, and I choked buying it along with the firewire adaptor card for my Dell Inspiron 600M, the beauty of the 20 gig, is that there is so much space that it is easily shared between two people — - just create different folders and code songs according to husband or wife. Buy it for each other. It will bring you closer together. I download surprise songs for him; make him little folders of mixes according to my mood. Label a romantic slow jazz folder ìGetLuckyî and you will. FYI– –I grew up with Macs (well, 8th grade we got the first little box mac) and love and admire them. Unfortunately Iím in a PC based work and home world. Wandering around the cool, white Mac store near our house coveting everything is still one of my favorite pastimes.

  • http://rubbo.com rubbo

    Jobs knows as much as anybody he is selling packaging. Just look at the new G5, while the technology is astounding and useful for the high-end user, the design is what is going to get Joe Expendible-Income to buy it.

    The MINI follows the same concept that fragrances use, it is all about the packaging. Its my understanding that in general a given perfumes packing costs far more than the actual juice. So Apple makes multi colored iPods, targeted directly to teens and the like… but isn’t that a smart long term strategy. Convert ‘em while they are young and they will stick with Apple for life.

  • http://mihow.com mihow

    rubbo, I am going to have to agree. But there is one more thing I think needs to be mentioned about Apple, in reference to hooking people for life, their customer service is amazing. Couple excellent customer service with cool (and useful) toys, and you have yourself a pretty solid company. Who would have thought it could be so easy? The only other mega-corp I can think of who uses this same methodology is Amazon. Again, excellent customer service all the while offering a useful product.

    After an all out war with Verizon, I have a new found love for anyone who pays attention to the customer after he or she gives over their credit card number. And in my experience, Apple has done this exceptionally well especially if you’re an Apple Care member. While I don’t particularly like these cigarette-lighter looking iPods, as long as they work, they’ll do just fine. People even bought the Cube! That surprised me. But in that case, they overheated and pissed everyone off.

    Basically, if Apple builds it, they will come.

  • http://mihow.com mihow

    Holy crap, I must be possessed by commas.

    Forgive.

  • Daniel

    I think it’s ironic that the relative expense of the MINI is making the more expensive version more attractive. I call that a marketing success.

  • http://www.blurbomat.com dj blurb

    Mihow, we all get a little comma crazy now and then.

  • http://www.dominocat.co.uk/panic domino

    There is an alternative product out there — the Creative Jukebox Zen. I have one, 20gigs of lovelyness, with firewire to boot. They now do a 40gig one, and do USB2 as well.

    I got the Zen over the iPod simply because of price. Here in England, the 5gig iPod was the same price as the 20gig Zen. No comparison. The quality is as good, and I’m really happy with it.

    The major difference is that iPod is cool. Much cooler than my Zen. When I got the Zen, cool was not on my list of priorities. Crap, I think I grew up…

  • Calichick

    Love my iBook, love my iPod. Separated from my husband 7/01…he had 5 computers, 2 of them Macs…typical SW Engineer, I guess. Anyway, he didn’t want to share the computer wealth so I was computerless for 3 months. Thank God an Apple store opened within driving distance. Thank God they had a SWEET financing deal. Thank God for Apple! This was one of the best purchases I’ve ever made. Right up there with 500 thread count Italian Sheets!