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Apple Expands iPod Line, Cuts Some Prices

Posted on: Tuesday, 7 February 2006, 15:00 CST

By MAY WONG

SAN JOSE, Calif. - As competitors continue leaving the portable audio player market, Apple Computer Inc. beefed up its iPod product mix Tuesday with a new 1-gigabyte version of the nano and lower-priced shuffles.

The pencil-thin, flash memory-based nano player now ranges from $149 for the new 1GB model to $249 for the 4GB model. Previously, the 2GB nano was the lowest-capacity and least expensive model at $199.

Apple also cut the prices of its bare-boned shuffle players. The 512-megabyte version dropped from $99 to $69 and the 1GB model was discounted from $129 to $99.

Both moves, analysts say, will help Apple maintain its market-leading position and further its strategy to attract consumers with slimmer budgets.

"No one has been able to catch up to Apple," IDC analyst Susan Kevorkian said. "Apple's ongoing dominance has made it difficult not only for major consumer electronics brands to compete, but also the much smaller brands."

Dell Inc. quietly began to phase out production of its hard drive-based audio players in December but said Tuesday it will continue to sell its flash-based DJ Ditty player, which costs $99.

MP3 player pioneer Rio has retrenched as well. Last fall, its parent company D&M Holdings withdrew from the portable player market to focus on higher-end home audio products.

Apple has sold more than 42 million iPods since the original model debuted in October 2001. More than 30 million of those sales were posted last year after Apple introduced the shuffle and replaced its hot-selling iPod mini with the iPod nano.

Some analysts have speculated Apple would soon phase out its shuffle players, which, unlike its cousins, do not have a display.

Apple's vice president of worldwide iPod product marketing, Greg Joswiak, said Tuesday the shuffle will continue to serve an important role as an entry-level product, even though the shuffle and nano families both now include 1GB versions.

"We're covering all the major price points, from $69 on up," he said.

Source: Associated Press/AP Online

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