Everything But The Beatles: Apple Aims At Christmas Crowd
Posted September 6, 2007 12:00 pm.
This article is more than 5 years old.
Oh, how the mighty haven’t fallen. You can say whatever you want about the way Apple does business, but one thing is clear – the computer giant refuses to let anyone get the jump on its publicity machine. That became clear again this week, as the technology titan made moves designed to keep it supreme in the marketplace.
While Apple didn’t exactly unveil anything new, it did act to keep the competition from undercutting it. Head honcho and publicity mogul Steve Jobs took the wraps off several improved versions of the best selling iPod, including one that incorporates the much vaunted iPhone’s infamous touch screen system. The new version will also be able to download songs wirelessly from the company’s iTunes store without the need for a computer. And the iPod Classic now makes room for 160 gigs of video.
But the announcement wasn’t completely without controversy. Apple fans rarely criticize their beloved behemoth, but many were taken aback by the company’s decision to shave $200 off the price of the iPhone. Those who waited in long lines to get the latest and the greatest gadget are grumbling about the US$600 they had to shell out for the device, which has only been on the shelves for 10 short weeks.
Ryan Roth bought his for the full price last Friday. “I realize this is not their problem: I agreed to the original price – it’s my fault,” the 32-year-old admits. “It just kinda sucks.” Apple will allow anyone who bought the phone over the last two weeks to get a refund. But while it seemed early adopters would be out of luck, the corporation bowed to pressure from consumers late Thursday afternoon.
In an open letter on the company’s website, Jobs acknowledged the unfairness of the price cut and agreed to give a $100 store credit to anyone who jumped on the iPhone bandwagon early. Read his apology here .
But why would the company cut its price so soon after launching the product? Experts see it as an attempt to learn more about the cell phone business, an area Apple admittedly isn’t that familiar with. “This is about Apple learning how to become a cell phone retailer,” suggests analyst Jeff Kagan. “All of a sudden it’s in the cell phone business, and everyone is trying to figure out how to measure it, and we don’t know yet.”
Others see it as a chance to grab the Christmas shopping crowd early. “It’s hard to see how anyone is going to take much ground away from them this holiday,” agrees analyst Michael Gartenberg.
The new iPods will be available in Canada but the furor over the iPhone has yet to spread to the Great White North. The device still hasn’t crossed the border, where it’s likely Rogers will be the sole provider for the service. But Apple hasn’t phoned in yet to say exactly when that might happen.
The company does have one last ace up its sleeve in the coming weeks as it gears up for the Christmas season. It’s expected to announce a deal to finally bring the Beatles catalogue to the iTunes store sometime within the next six months.
Photo credit: Justin Sullivan/Getty Images
