Wednesday, January 12, 2005

More iShuffle thoughts

In thinking more about Apple's new music player, the iPod Shuffle, it looks like they are betting this will be a great way to drive wider adoption of Apple computers.

A hundred clams for half a gig of storage wrapped in a pretty Apple skin and thoroughly rubbed down with lots of iPod sex appeal is a pretty good deal for those who haven't yet jumped on the digital music bandwagon, so to speak.

Sure, the margin on the players themselves have to be wafer thin. But look at the other big Apple announcement today, the Mac mini. This is a sleek little 'puter that is basically an iBook dressed up like a desktop, but for half the price.

The scenario Apple has to be hoping for is this: potential customer, let's call him Bill, says, "Wow. I've been hearing about these iPod things and they sound pretty cool, but I don't want to spend $250 on one, even though they are kinda pretty. Woah, look at this. You mean I can get in on this iPod action for just $100? That's kinda cool."

Bill walks into the Apple store. After pausing to enjoy the rarefied air and admire the heavenly glow radiating from the staff and customers, he picks up his iPod Shuffle and heads for the checkout. He digs the other Apple products but knows the glittering widescreen G5 and the silvery G4 PowerBooks are out of his league.

But then he sees the Mac mini. Holy smokes, that thing is smaller than the fruitcake tin his grandma sends him every year! And at $500, well, that's about the same as a budget PC. A real deal. He's been thinking about getting a new machine. Nothing firm, but his is getting slow and clunky. And this Mac mini sure is purty!

A couple weeks later, Bill is back, walking out the door with a Mac mini tucked under his arm. A new customer has been created, one that, hopefully, will be upgrading to higher-end Apple gear down the road.

Pretty clever.