Thursday, September 06, 2007

Apple is on Steroids

The business model at Apple is on steroids. A few more billions this holiday season.

Two months ago, the 8GB iPhone bagged a heafty price tag of $599. Fast forward today, two months later, a price cut of $200.

The iPod line has been split into two. iPod classic and the new iPod touch.

The breakdown:
iPhone 8GB - $399

iPod Classic 80GB - $249
iPod Classic 160GB - $349

iPod Touch 8GB - $299
iPod Touch 16GB - $399

The 8GB iPhone sounds reasonable at $399. The 16GB iPod Touch that has all the bells and whistles of the iPhone - is limited at 16GB!!?? WTF!

Why would a standalone device such as the iPod Touch boast a touch interface, 3.5inch widescreen, Safari, YouTube, WiFi on 16GB of storage? I guess this is a beta release. A years worth of waiting will see that storage double, triple and quadruple.

Innovative idea one, users can now purchase music directly from their iPod Touch and iPhone devices through the integrated iTunes store. Access iTunes through WiFi and buy music. Anywhere. Anytime.

Innovative idea two, Apple cut a deal with Starbucks. If your sipping coffee at Starbucks and wondering what song is playing, you bring up the iPod Touch or the iPhone, get into iTunes (through WiFi) and buy the song instantly. I guess, with Apples design philosophy behind great interfaces, this feature will trigger millions of legal downloads. USA only (for now).

A musician could well release an album at Starbucks and iPod users would _buy_ tracks they like. This strategy has great potential to start a whole new way to sell music legally and quickly.

Just in time for the holidays.. Ho Ho Ho

Very clever!

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