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Last Month's iPods Don't Fade Away –They Get Discounted
Electronics | Sep 26, 06
With the release of its new line of iPods, Apple lowered some price points and instantly reduced the cool factor of existing inventory. The effect on older model pricing has been dramatic.
Consider the 30 GB iPod with Video – 5G, which went for at least $275 two weeks ago. It now may be had for as little as $239. Note, however, that much of that drop is probably attributable to the lower price of the "Updated" 30 GB – 5G, which is selling for $249 (one wonders if Cupertino's pricing strategy could have been influenced by new SanDisk and Microsoft – see "Can SanDisk Sandbag the iPod?" and "The Zune: Microsoft's Little Brown Lump Of DRM-Enforcing Digital Joy"). An even more dramatic effect can be seen in the case of the 60 GB iPod with Video – 5G. There is no 60 GB model in the new line (instead Apple is offering a 80 GB model for $349). The result is that the 60 GB iPod has fallen from a minimum price of $360 before the new release to as little as $299 today (see graph below).
Time Period: 10/17/2005 through 9/18/2006
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price

Indeed, it's a similar story across the entire iPod line, as you may observe by checking out the PriceSCAN Price Indices for these products. The bottom line is that if your ardor for the iPod hotness of two weeks ago has not been cooled by Apple's announcement, you can now get that same player at a sharp discount to what you would have paid earlier in the month.

Posted by jeffrey.trester (Permalink)
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