Apple has announced that it is flogging iPod Shuffles for £32, effectively almost giving them away.
Apple has announced that it is flogging iPod Shuffles for £32, effectively almost giving them away.
This is a well-known technique for turning the whole world into iPod users, based on what is known as 'versioning'.
Versioning is the well-known business practice of having a number of levels at which customers can buy in at. Three is normal but this model is so successful that it often increases to 5,6 or 7 versions.
The technique plays on basic psychology that is summed up by the shampoo ad that tells you 'You are worth it'.
Apple ensures that its top range iPod is the sexiest thing since mobile music began and then sets about luring in new punters by selling them cheapo versions, knowing full well that their personal self-image will drive them onto the most expensive version just as soon as they can afford it along the lines of:
"I own an Shuffle, but really I'm more an iPod Touch kind of person."
Apple knows there is an opportunity cost for a new buyer. Namely the hassle and risk of learning to use the hardware and the software. It also knows that it is better to get the buyer over this hurdle at low cost. That way there is little extra effort when they trade ever upward.
Source: http://chiswickken.typepad.com/ringtone/2008/02/ipod-shuffles-t.html
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